Lean Manufacturing More than a fad

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Lean ManufacturingMore than a fad

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Lean ManufacturingMore than a fad

• Agenda
• . What is Lean Manufacturing
• . How does it work
• . What results can I expect
• . What is the commitment necessary
• . Precast producer examples
• . Summary

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Lean ManufacturingMore than a fad

• Who is Bill Ray
• Principal at Precast Consulting
• Finance, Marketing Operations
• Background
• Business owner PCI certified producer
• General manager Sales exceeding 15 million
• Project manager Projects exceeding 10 million
• Chief fin. Officer Sales exceeding 150 million
• Education
• MBA University of Chicago
• BS Florida state
• Contact info 770-979-3711. billray_at_precastconsul
  ting.com
• Website
  www.precastconsulting.com

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Lean ManufacturingMore than a fad

• Working smarter focus on how work gets done
• Work Group Productivity Improvement methods
• . Focus on skills, teamwork
• . Development of initiative
• . Quality Circles
• Industrial Engineering Methods
• . Traditional IE job design analysis
• . New disciplines
• Six-sigma
• Lean Manufacturing
• Cost savings 20 per year or more are typical

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Lean ManufacturingMore than a fad

• Lean Manufacturing
• IE discipline based on continuous improvement
• Separate activities into value added and waste
• . Value added is any activity that transforms
  the product in a way that the customer will pay
  for it.
• . Waste is any activity that does not add value
  from the customer point of view.
• Value stream mapping
• Map the As Is condition - value added and waste
• Discover opportunities to reduce waste
• Prioritize opportunities
• Identify action plans
• Follow up, continuous improvement

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Lean ManufacturingMore than a fad

• Value Stream Mapping

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Lean ManufacturingMore than a fad

• Value Stream Steel shop example
• Typically over 90 of work is waste

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Lean ManufacturingMore than a fad

• Reduce waste through
• Blitz events (Kaizen)
• Standardized tasks
• Workplace organization (5-S)
• Visual controls
• Plant layout
• Inventory reduction
• Mistake proofing
• Setup reduction
• Focus on work team effectiveness

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Lean ManufacturingMore than a fad

• In a nutshell
• Lean is about making improvements in processes
  and teamwork, not by spending money on new
  equipment
• - Lean is not high tech it is low tech
• - Lean is about great ideas that cost little or
  no money
• - Lean is about teamwork, working smarter
• - Lean is about making small continuous
  improvements

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Lean ManufacturingMore than a fad

• Lean means continuous improvement
• Lean generates very good improvement ideas. 
• Often, ideas don't get fully implemented in a
  lasting way
• Must be ongoing a way of life 
• The secret is to engage the team that has to make
  it happen.

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Lean ManufacturingMore than a fad

• Lean Manufacturing Opportunities
• Bed setup is a major area of waste in precast
  manufacture and offers many opportunities for
  waste reduction through better methods,
  standardization, improved material flow.

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Lean ManufacturingMore than a fad

• Lean Manufacturing Opportunities

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Lean ManufacturingMore than a fad

• Lean Manufacturing Opportunities

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Lean ManufacturingMore than a fad

• Lean Manufacturing Opportunities

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Lean ManufacturingMore than a fad

• Lean Manufacturing Opportunities
• Lack of standard methods - Disorganization
• Redundant process steps, missing process steps
• Unnecessary inventory
• Rework , excessive finishing costs
• Waiting for the crane, for mix, parts, inserts
• Waiting for instructions, waiting for drawings
  waiting, waiting
• Ineffective material flow or layout - walking,
  walking, walking
• Looking for tools, looking for parts, looking for
  inserts
• Checking, counting, measuring
• . . . etc.

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Lean ManufacturingMore than a fad

• Producer Start-up Experience

• Mar. 2001 Toured Butler Buildings manufacturing
  
• Inspired by Lean program
• July 2001 Sept. 2002 Tried to implement lean
  internally
• Ultimately unsuccessful.
• Nov. 2002 Brought in an outside lean consultant
  
• Do an initial business assessment.
• Dec. 2002 First Kaizen event held on storage
  handling.
• Jan. 2003 Created the position of CIO
  Supervisor.
• Jan. 2005 28 Kaizen events held to date.

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Lean ManufacturingMore than a fad

• Producer Start-up Experience

• First try failed
• Lean Goals Not Linked to Company Objectives
• Poor Teamwork
• Lack of Sustainment

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Lean ManufacturingMore than a fad

• Producer Start-up Experience

• Lean Goals Linked to Company Goals
• More Sr. Management Involvement through the Lean
  Steering Committee
• Teamwork Between CIO and Production
• Plant Manager moved into the CIO to link with
  production and develop teamwork
• Sustainment Responsibilities Assigned
• Supervisors are responsible for sustainment of
  Kaizen events in their areas.

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Lean ManufacturingMore than a fad

• Lean Manufacturing Typical Start-up
• Initial Lean program fails
• Doesnt fit company goals
• Leadership problems
• Management commitment uncertain
• Program refocused
• Lean consultant used to get started
• Full time lean coordinator named and trained (or
  hired)
• Measurable goals are defined
• No Cuts policy
• Employee involvement at workgroup level is
  structured in
• Takes 9 months 1 year to achieve some success

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Lean ManufacturingMore than a fad

• Lean Manufacturing Typical Results

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Lean ManufacturingMore than a fad

• Lean Manufacturing Typical Results
• 50 Increase in beam throughput - Without adding
  new capacity
• 19 reduction in production crews (through
  attrition)
• 12 decrease in MH / CY
• 15 decrease in cost per cast
• 47 decrease in the number of defects

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Lean ManufacturingMore than a fad

• Lean Manufacturing Typical Results
• 26 Reduction in missed pours
• 22 Improvement in spandrel labor productivity
• 9 Improvement in sandwich panel labor
  productivity

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Lean ManufacturingMore than a fad

• Lean Manufacturing Typical Results
• Lean is not just for production
• 100 increase in shipping for 2004
• Created a standard shipping process without
  incurring extra costs or interfering with
  production

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Lean ManufacturingMore than a fad

• What resource commitment is necessary?
• Management commitment for sustained period
• Willingness to involve employees at the workgroup
  level
• Requires a dedicated leader typically 1 of
  headcount
• Start with a local Lean consultant, then
  train/hire in-house

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Lean ManufacturingMore than a fad

• Summary
• This is not a fad. It can transform your
  organization
• Typical results reported by precast producers
• Productivity improvements 20 - per year
• 20 50 increase in production without new
  capital.
• Reduced supervisory overhead
• Reduced rework, improved quality
• It take time its not a quick fix
• It takes dedicated staffing
• It takes management commitment

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Lean Manufacturing Its more than a fad