Effective Lean Implementation Techniques to Achieve Bottom Line Results

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Effective Lean Implementation Techniques to
Achieve Bottom Line Results

• Presented By Baskar Kotte
• Quality Systems Enhancement, Inc.
• 1790 Woodstock Road
• Roswell, Georgia 30075
• Toll Free 1-866-577-4476
• baskar_at_enhancequality.com
• www.enhancequality.com

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Lean The QSE Focus
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Lean

• Not just lean manufacturing
• Lean is an enterprise
• Lean enterprise covers all areas of business

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Lean Enterprise Focus

• Achieve more with less
• Minimize inventory at all stages of production
• Improve machine efficiency and delivery
  performance
• Eliminate waste of all kinds (time-material)
• Error-proof process with problem solving
  techniques
• Reduce purchasing cost and customer credits
• Improve information system
• Improve quality and customer satisfaction

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Definition of Lean Enterprise

• Lean enterprise is a balanced organization

Discipline
Problem solving
Empowered Employees
ISO
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Definition of Lean Enterprise

• Causes of failure

Not my job I am the Boss
No discipline
No problem solving
No commitment
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Lean Tool Mumbo Jumbo

• Value stream mapping
• Quality at the source
• Workplace organization 6S
• Total Productive Maintenance (TPM) and Overall
  Equipment Effectiveness (OEE)
• Visual management
• Batch size reduction
• Cellular manufacturing
• Work balancing (TAKT-time)

• Production leveling / smoothing
• Point-of-use systems
• Kanban
• Kaizen
• Single Minute Exchange of Dies (SMED)
• Standardized work
• Statistical Problem Solving (SPS)
• Balanced Scorecard

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Lean Tools for the Box Industry

• Value stream mapping
• 6S
• Visual management
• Statistical Problem Solving (SPS) techniques
• Total Productive Maintenance (TPM) and Overall
  Equipment Effectiveness (OEE)
• Work balancing (TAKT-time)
• Kanban
• Kaizen
• Single Minute Exchange of Dies (SMED)

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Understanding Selected Tools and Techniques
Value Stream Mapping

• How long does it take for value stream mapping?
• 6 weeks?
• 4 weeks?
• 1 week?
• If it takes more than 4 hours, then we are
  wasting our time

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Quote
Quote to Cash
Value stream map

• Understanding the process
• steps
• Picking the process which has
• more value impact
• Picking right tools

Cash
This flow diagram required for ISO as well
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Understanding Selected Tools and Techniques OEE
Overall Equipment Effectiveness Availability
x Performance x Quality x 100
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Understanding Selected Tools and Techniques OEE
Understanding Selected Tools and Techniques OEE
Production Time Down Time Available Time
480 mins. 60 mins 480
A
X 100 87
X 100
of Boxes Produced Actual Machine Run Capability

8,000 10,000
P
X 100 80
X 100
Good Boxes Total of Boxes Run
98,000 100,000
Q
X 100 98
X 100
A availability P performance Q quality
OEE A x P x Q x 100 .87 x .80 x .98 x 100 68.2

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Understanding Selected Tools and Techniques TAKT
Time

TAKT time is the rate at which customers require
the product TAKT time is computed as
Available work time per day(480-BREAKS) Daily
required customer demand in BOXES per day
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Understanding Selected Tools and Techniques
Visual Management

• Charts
• Metrics
• Procedures
• Process documentation

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Understanding Selected Tools and Techniques
Quick Setups

• SMED
• Effective implementation of 6S
• Machine center lining, zero gear trains, time and
  register
• Standardization of cutting dies and printing
  plates

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Understanding Selected Tools and Techniques
Kanban

• A pull material replenishment system, based on
  the principle that material is pulled through the
  production process based on actual usage of
  material
• Kanban uses visual signals, usually a card, to
  move material through the value chain

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Understanding Selected Tools and Techniques
Kaizen

• Continuous improvement through incremental
  improvement
• The whole secret to Kaizen is to create an
  atmosphere, a culture of continuous improvement,
  by focusing on problems not on people .
• Kaizen compliments the other tools of Lean and it
  is part of a whole rather than a stand-alone
  process

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Lean Tools and TechniquesStatistical Problem
Solving

• The steps of Statistical Problem Solving
• Defining the problem
• Listing suspected variables
• Prioritizing variables using subjective rating
• Evaluating the critical few variables by
  conducting studies and trials
• Optimizing variable settings

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QSEs Approach to Cost Reduction

• Quotation to cash
• Follow the money
• Application of disciplined problem solving
• Top 5 impacting items

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Example Problems Picked By Our Customers
Maximum Impacting Bottom Line

• Excessive inventory (wip, ink, sheets, finished
  goods)
• Purchasing (cost of raw materials, uncontrolled
• purchasing methods)
• Set up time reduction
• Over runs
• Supplier sheets (defects)
• Estimation, quotes time
• Incomplete information on RFQs
• Incorrect customer specs
• Maintenance parts inventory (old obsolete,
  doubled up parts)
• Ineffective or non-existing procedures and
  instructions

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QSEs Proven Lean Implementation Guidance

• Recognize lean as a long term journey
• Recognize obstacles to change
• Adequate resource allocation
• Focus on both manufacturing and non manufacturing
  areas

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QSEs Proven Lean Implementation Guidance

• Benchmark but do not copy
• One system
• Synchronize lean goals with business goals
• Empowerment / team approach
• Create an atmosphere, a culture of continual
  improvement

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Defined Path for Effective Lean Implementation

• 1.Lean Tools and concepts training
• 2. Baseline assessment/establishment of goals and
  metrics
• 3. Selection of appropriate lean tools and
  concepts

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Defined Path for Effective Lean Implementation

• 4. Train the implementation team for the
  application of the selected tools and concepts
• 5. Assist in the application of the selected
  tools and concepts

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Defined Path for Effective Lean Implementation

• 6. Monitor and audit improvement against goals,
  re-evaluate the process if necessary
• 7. Fine-tuning of the processes to achieve
  value-added results

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Defined Path for Effective Lean Implementation

• 8. Maximize/optimize implementation effectiveness
  for bottom line improvement
• 9. Incorporate results into standardized
  procedures
• 10. Management review of accomplished results

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Effective Lean Implementation QSE
Difference

• Not just promise GUARANTEED 15 waste reduction
  from baseline assessment
• Not just train ASSIST in implementation
• Not just manufacturing ALL non manufacturing
  areas of the business

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Effective Lean Implementation QSE
Difference

• Not just problem identification ASSIST in
  systematic problem solving
• Not just team building TRAIN the team in
  problem solving techniques

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Effective Lean Implementation QSE
Difference

• Not just lean, COMBINE ISO, lean and problem
  solving to sustain bottom line results
• Integrate all lean procedures and instructions
  into one manageable simplified ISO process
  approach
• Audit lean results for sustainability integrated
  with ISO auditing techniques

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Successful Lean Implementation

• No lean strategy will work until process is
  error proofed with
• Disciplined/defined path
• Problem solving techniques
• Simplistic ISO (if applicable)

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Successful Lean Implementation Integrate with ISO

• One level documentation
• Realistic
• Practical
• Internal auditing for continual improvement
• Control of nonconformities
• Corrective and Preventive action plans

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Successful Lean Implementation Problem Solving

• Systematic/Statistical Problem Solving
• Effective root cause analysis
• Apply sustainable, permanent problem solving
  techniques
• Problem solving is a problem

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Effective Lean Implementation Summary

• Lean Focus
• Definition of Lean Enterprise
• Lean Tool Selection
• Understanding Selected Tools/Techniques
• QSEs Approach to Cost Reduction

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Effective Lean Implementation Summary

• QSEs Proven Lean Implementation Guidance
• Defined Path for Effective Lean Implementation
• Effective Lean Implementation QSE Difference
• Successful Lean Implementation Integrate with ISO

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Effective Lean Enterprise Summary

• Successful Lean Implementation Problem Solving
• Successful Lean Enterprise has commitment and
  involvement at all levels of the organization