Lean CoP Presentation Will Start Shortly

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Lean CoPPresentation Will Start Shortly
October 2005
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Lean CoP LEANNot Just for Manufacturing
Anymore Review
October 2005
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Presenters/Facilitators

• Barry Bartlett
• Bob Houlihan
• Linda Liebert-Hall
• Larry Stewart

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Don Wilson
The ASBDC is very pleased to be working with
NIST/MEP to develop a collaborative initiative
that will bring Lean principles to small
businesses, particularly service and retail
firms. I have specifically invited MEP to join
with SBDCs nationwide in our on-going desire to
bring the best possible resources to Americas
small businesses. Your participation today and
enthusiastic contributions in the future to this
very promising collaboration are much appreciated
and strongly encouraged.
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Department of Commerce National Institute of
Standards Technology Manufacturing Extension
Partnership
Strengthening the global competitiveness of
US-based manufacturing by providing information,
decision support, and implementation assistance
to smaller manufacturing firms in adopting new,
more advanced manufacturing technologies,
techniques, and business best practices.

• 350 locations, all 50 States Puerto Rico
• Leverage local, state national partnerships
• Federal, State, Industry and Client Funded

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Small Business Administration Small Business
Development Centers
To promote small business ownership and help the
small business sector create new jobs and
economic prosperity, by making business
management and technical assistance accessible
and affordable to small business owners and
aspiring entrepreneurs.

• 1,000 locations, all 50 States DC, Puerto Rico,
  Territories
• Leverage local, state national partnerships
• Federal and State Client Funded

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TODAY FUTURE

• Today
• LEAN for SBDC clients
• Benefits and Tools for you
• Goals for Future
• Future collaboration plans
• Additional tools resources

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What is Lean ?
Lean is continuous improvement to reduce those
activities the customer will NOT pay for.
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LEAN Assessment

• Using a LEAN Assessment

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The WOW

• American Medical ID
• Profile
• Manufactures sells upscale medical ID jewelry
  primarily by mail order to help with lifesaving
  aid administration. Employs 20 people.

• Results
• Reduced dollar costs tied up in inventory by 30
• Increased internet orders by 20
• Improved bottom line by approx. 1 million
  annually

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The HOW

• American Medical ID
• Problem
• High inventory level constraining cash flow.
• Solution
• SBDC of Houston and Texas Manufacturing
  Assistance Center (MEP) performed an assessment
  and identified where Lean could provide potential
  cost benefits, then developed a time for
  implementation.

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The WOW
Parker Hannifin / Metamora Plant Profile
Produces hydraulic filters and parts for
commercial refrigeration industry. Ohio plant has
190 employees.

• Results
• Reduced office processing time for customer
  orders to 1.5 days (50 time savings)
• Accelerated inventory turnover (greater cash
  flow)
• Improved customer satisfaction!!!!!

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The HOW
Parker Hannifin / Metamora Plant Problem
Front office needed to become more efficient
and waste-free to reduce the time it took to get
an order from the customer into production.
Current 3-5 days. Solution EISC, an MEP
affiliate conducted a Value Stream Map of
customer order process, provided training and
implemented short-term projects.
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The WOW

• CertiRestore
• Profile Wanted to franchise a unique process to
  restore repair damaged wooden furniture.
• Results
• Increased sales by 80,000. (72 increase)
• Reduced the time it takes new employees to impact
  the bottom line by 50. (increase profitability)
• Added 2 full time 2 part time jobs.

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The HOW

• CertiRestore
• Problem Needed funding for franchise development
  and assistance on specialty tool manufacturing.
  
• Solution ND SBDC developed business plan for
  funding. Attended a co-sponsored MEP/SBDC Lean
  101 class and worked with MEP counselor on
  layout, flow, and inventory control for business.

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The WOW
Schneller, Inc. Profile Provides interior
decoratives for the aerospace and rail
industries, including laminates and non-textile
floor coverings for transportation and
architectural industries.

• Results
• Reduced inventory by 2 million
• Reduced lead times by 40 percent
• Improved on-time delivery to over 97

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The HOW
Schneller, Inc. Problem Needed change to
remain competitive due to a tightening economy
and weakened conditions within the markets it
serves, as well as growing customer demands.
Solution Implemented kaizen events and used
value stream mapping to understand workflow and
identify inefficiency in the work order process.
Lean office aided in better positioning of the
company, and enhanced competitiveness.
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Retail Service LEAN
Retail Service operations are just a series of
processes moving a good or service from suppliers
to consumers.

• RETAIL SERVICE Lean implementations abound.
• Inventory. Keep stock amounts small to free up
  working capital, carry a larger number of
  products, and lower storage needs.
• Value-add. Retail/service work has non-value
  added activities.
• Small orders. Most CUSTOMers want personalized
  attention.
• Labor. Labor is sunk cost, expensive and is often
  underutilized.
• Efficiency. Numerous inefficient processes attend
  most stores.

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Can Lean Help Retail/Service?

• Every retail and service business has the same
  goals as do lean manufacturers build new or
  remodel existing stores to operate better,
  faster, smarter and cheaper than their
  competition.
• --Retail Industry, June 2005

• Invest in value stream activities that add
  customer value.
• Use pull rather than push processes
  everywhere.
• Inventory management and supply chain
  collaboration.
• Visible business processes easy, clear
  communications.
• A strong, relentless commitment to waste
  elimination.

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Achieving Sustainable Results

• Determination Knowledge
• Shared Vision Communication
• System/Structure
• Recognition/Reward Visibility
• Tools for Sustainability
• Lean Management System
• Lean Round Tables
• Network of Lean Practitioners
• Strategic Alignment with Corporate Goals

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LEAN Toolkit

• Glossary
• Performance Metrics
• Assessment in English
• and Spanish
• Success Stories

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LEAN Toolkit

• Frequently Asked Lean Questions
• Program Income
• Moving Forward
• Internet-based Activities, Resources
• Evaluation/Prescription Database
• Best Practices
• Interactive Lean Development Tools

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Program Income from LEAN

• Do SBDC/MEP co-sponsored Lean Office, Lean
  Administrative, or Lean 101 training.
• Hold a Lean Conference highlighting Lean
  principles for various businesses types.
• Provide for-fee, value-added services in Lean to
  retail and service businesses.
• See the Toolkit for other suggestions.

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Q A
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THANK YOU