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Lean Thinking in Business

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Title: Lean Thinking in Business


1
Lean Thinking in Business
  • Presentation by Scott Summach and Colleen
    Mackenzie, Manufacturing Team, Saskatchewan
    Industry and Resources

2
Saskatchewan Industry and Resources (SIR)
  • SIR is the lead Provincial department to
    strengthen and diversify the Saskatchewan
    economy.
  • SIR is divided into Strategic Sector Development,
    Regional and Co-operative Services, and Resource
    Policy and Development

3
Strategic Sector Development Branch
  • SIRs Strategic Sector Development Branch has
    identified six sectors key to growing
    Saskatchewans economy
  • Manufacturing
  • Energy
  • Minerals
  • Forestry
  • Agri-value
  • Advanced Technology

4
Manufacturing Team
  • Scott Summach and Colleen Mackenzie represent the
    Manufacturing Team along with support from staff
    within our Regional and Cooperative Services
    Branch Jason Regier in Saskatoon, and Dale
    Mitchell in Regina.

5
Manufacturing as a Key Economic Driver
  • Manufacturing employees 30,000 employees and
    shipped 7.5 billion in goods in 2003
  • Saskatchewan produces a wide range of major goods
    and exports 75 of what we manufacture

6
World-Class Products
  • Saskatchewan products that are internationally
    recognized include
  • Beef, pork and chicken products
  • Paper, furniture, cabinets, millwork, flooring
  • Agricultural equipment
  • Specialty vehicles such as ambulances, highway
    trailers, recreational vehicles and automotive
    accessories

7
World Class Products
  • Mining and industrial equipment
  • Satellite and landline communications technology
  • CATV and wireless telecom products
  • Contract manufacturing services for
    telecommunications, satellite, military and
    aviation markets

8
Manufacturing Team
  • Today, were here to speak about two initiatives
    undertaken by the Manufacturing Team
  • Lean Thinking
  • Corporate Procurement

9
I. Lean Initiatives
  • Since 1999 SIR has introduced manufacturing
    companies to Lean Thinking.
  • We work with individual companies as well as
    national organizations like the Canadian
    Manufacturers and Exporters (CME) that have
    developed consortium building and lean enterprise
    expertise.

10
Lean Thinking
  • What is Lean Thinking?
  • Simply put, Lean Thinking is a focus on
    eliminating waste so that all processes in the
    total system, process, or production line add
    value from the Customer perspective.

11
What Lean is Not
  • Lean Thinking is not about
  • Staff cuts
  • Assigning Blame
  • Nominal or one-time changes

12
Lean Thinking is About
  • Creating a positive and safe work environment
  • Empowering all staff to make improvements to
    their processes and workplace
  • Encouragement from the leaders of the company

13
Why Become Lean?
  • In todays global marketplace with a high
    Canadian dollar and trade border issues,
    companies must become more competitive.
  • The application of Lean Thinking will reduce
    waste, improve productivity, and give companies
    that competitive edge needed to survive.

14
Who Can Become Lean?
  • Lean Thinking is applicable to all businesses and
    organizations. You do not have to be a
    manufacturer or processor.

15
The Lean Drivers
  • Lean Thinking
  • Employee Involvement

Customer Success
  • Flow
  • Elimination of Waste
  • Tools to support people and process

16
Quality Processes Quality Results
Inconsistent Process
Inconsistent Results
Traditional People doing whatever they can to
get results
Consistent Process
Desired Results
Lean People using standard process to get
results
17
The 5 Principles of Lean Thinking
  • Define value from the customer perspective
  • Identify the value stream
  • Make the process flow
  • Pull from the customer
  • Head toward perfection

18
7 Forms of Waste
  • Overproduction
  • Waiting (time)
  • Transporting
  • Inappropriate processing
  • Unnecessary inventory
  • Unnecessary motions
  • defects

19
Waste Identification Sheet (Office)
Definition
Observation
Type of Waste
Producing more/sooner than the Internal or
External customer needs
Overproduction
Waiting
Long periods of inactivity for people,
information, machinery or materials
Transportation
Excessive movement of people, information or
materials
Inappropriate Processing
Using the wrong set of tools, procedures or
systems
Unnecessary Inventory
Excessive storage and delay of information or
products
Unnecessary Motion
Any motion that does not add value to the
products or process
Defects
Frequent errors in paperwork, product quality
problems etc
20
The Lean Journey
  • Should begin with Value Stream Mapping every
    process in the company from the first customer
    contact to the delivery of the product is
    examined to determine its value to the process
    and how it can be improved.

21
Tools to Make Your Process Flow
Standardization of Processes Pull Systems -
(signal when to start a process) Increase
Visibility Mistake proofing Manage by
exception Minimization of upstream / downstream
impacts Set-up reduction Cellular Processing
Preventative Maintenance Apply Measurement or
Metrics
22
PDCA
23
5S
  • The next step involves figuring out what to
    change and how to change it.
  • Japaneses manufacturing plants like Toyota
    established a waste reduction theory we commonly
    call the 5S.

24
The 5Ss
  • Seiri sort
  • Seiton set in order
  • Seiso shine
  • Seiketsu standardize
  • Shitsuke -- sustain

25
Sort
  • Review the workplace and for each item, ask
  • Is it needed?
  • How many are needed?
  • Where should it/they be located?
  • Remove anything that isnt needed for the current
    job.
  • Leave only the bare essentials.

26
Set in Order
  • Arrange items so that they are easily accessible
  • Arrange items so they are visible
  • Follow everything in its place and a place for
    everything.
  • cartoon

27
Shine
  • Clean everything
  • Eliminate all sources of clutter
  • Find ways to keep the area clean
  • Adopt cleaning as a form of inspection
  • Make cleaning a part of everyday work and every
    employees responsibility

28
Standardize
  • Create the rules by which the first 3 Ss are
    implemented and maintained
  • i.e.. Standardize location of all items and
    cleaning schedule and procedures

29
Sustain
  • Continuous Improvement
  • Total employee involvement
  • Coaching
  • Education

30
Success in Lean
  • There are many Lean resources available.
  • Lean Training is not a one time course, but must
    be a corporate long term commitment.
  • In our experience companies have a greater chance
    of success by working together.

31
Lean Consortiums
  • The Manufacturing Team works with Saskatchewan
    companies to form consortiums of manufacturers
  • The Saskatchewan Consortium of Manufacturing
    Excellence
  • The Northern Saskatchewan Consortium of
    Manufacturing Excellence and
  • The South Saskatchewan Manufacturing Consortium

32
Saskatchewan Consortium of Manufacturing
Excellence
  • Canada Post
  • Cover-All Building Systems Inc.
  • Doepker Industries
  • Industrial Machine Manufacturing Inc.
  • Bourgault Industries
  • Schulte Industries Ltd.
  • DSI- Thiessen Team MIFAB Mfg
  • Northern Steel Industries Ltd.
  • Vanguard Inc.
  • Precision Metal Fabricating Ltd.

33
Northern Saskatchewan Consortium of Manufacturing
Excellence
  • SED Systems
  • International Road Dynamics
  • Dawn Foods
  • Burton Cabinets
  • Siemens Laserworks
  • CNH Global
  • Hitachi Canadian Industries
  • Norampac
  • Standard Machine
  • Combine World

34
South Saskatchewan Manufacturing Consortium
  • Brandt Industries
  • Canada Post
  • Dumur Industries
  • Dutch Industries
  • Stewart Steel Inc.
  • Ralph McKay Empire
  • Watergroup Companies Inc.
  • Precision Industries
  • Conserva Pak Seeding Systems
  • Raider Industries
  • Sasko Windows and Doors Inc.
  • Sweeprite

35
Training Courses
  • The CME leads the Saskatchewan Consortium of
    Manufacturing Excellence and the Northern
    Saskatchewan Consortium of Manufacturing
    Excellence
  • Training begins with Value Stream Mapping
  • Members choose their courses from the following
    examples

36
Training Courses
  • Introduction to World Class Fundamentals
  • Lean 101 Hands on Introduction also High-Mix,
    Low-Volume
  • 5S and the Visual Factory
  • Lean Set Up Reduction
  • Continuous Improvement
  • Lean Product Design
  • Effective Office
  • Lean Purchasing/ Procurement
  • Lean Accounting
  • Effective Coaching

37
The Role of the Office in Lean Enterprise
38
Keys to a Successful Consortium
  • Non-competing companies
  • Membership fees that allow a pooling of resources
    to hire leading consultants and offer training
    sessions
  • Membership that decides on the courses offered
    and membership in the consortium
  • Members willing to share their best practices and
    learn from each other

39
Results
  • Some results from our Consortiums
  • Reduce Inventory by 56
  • Decrease bank debt by 50
  • Deliver product in 10 days rather that 2 months
  • Engineering time reduced to 2 hours from 2 weeks
  • Space requirements reduced by 35
  • Space requirement reduced by 200
  • Productivity increased by an average of 55

40
Results
  • Travel time reduced by 75
  • Process time reduced by 82
  • Inventory turns increased by 40
  • Production time reduced by 40
  • Gross Margin increased by 105
  • Product Cycle time decreased from 4 weeks to 24
    hours
  • 6 fold increase in throughput

41
Results
  • No finished good inventory all goods pulled by
    customer and shipped the day of manufacture
  • On time delivery 96.1
  • 25 decrease in manufacturing inventory
  • Cultural change from traditional manufacturing to
    scheduling based upon product pull
  • Staff are involved with the production process
    and allowed to make necessary changes.

42
Why Join a Lean Consortium?
  • You cannot live long enough to make all of the
    mistakes necessary to implement lean on your own
  • It is time to eliminate fire fighting or
    management by crisis
  • The sharing of concepts, actions, and results
    with other non competing companies takes company
    performance to a level that is unattainable
    unless expenditures, resources, and efforts are
    all at a much higher level than required in the
    Consortium.

43
II.Corporate Procurement Committee
  • The Manufacturing Team chairs the provincial
    Corporate Procurement Committee (CPC)
  • The CPC consists of members from major
    Saskatchewan corporations representing the
    Crowns, the private sector, and government
    departments.

44
CPC Mission Statement
  • The Mission of the Corporate Procurement
    Committee is to promote Saskatchewan economic
    growth by developing quality, competitive
    suppliers of goods and services in Saskatchewan.

45
CPC Goals and Objectives
  • To maximize Saskatchewan content in the
    acquisition of goods and services
  • To increase awareness of Saskatchewan supplier
    capabilities
  • To encourage the export of goods and services by
    Saskatchewan suppliers

46
CPC Goals and Objectives
  • To identify opportunities to Saskatchewan
    suppliers
  • To maximize Aboriginal content in the acquisition
    of goods and services
  • To encourage the implementation of Quality
    Assurance Programs by Saskatchewan suppliers.

47
CPC Action Plan
  • Meet as a committee five times per year
  • Share information on suppliers, new products,
    success stories, and Saskatchewan content
    statistics
  • Visit supplier facilities in conjunction with
    meetings

48
CPC Action Plan
  • Prove information to SIR to maintain databases
    i.e.. Manufacturers Guide
  • Share information on policies and programs
  • Promote the selective use of offset counter trade
    agreements to support Saskatchewan suppliers.

49
CPC Success Stories
  • Hitachi Canadian Industries manufacture of wind
    towers for SaskPower
  • Del-Air manufacture of pedestals for SaskTel
    and SaskPower
  • Country Leather manufacture of leather gloves
    for SaskPower

50
CPC Meetings for 2005
  • March 17-18 Melfort/Tisdale
  • April 28 Saskatoon
  • June 2-3 Meadow Lake
  • September 22-23 Kindersley
  • November 24 Regina
  • Interested in presenting to CPC? Call us.

51
Conclusion
  • The Manufacturing Team would like to work with
    you to grow and expand our manufacturing sector.
    Please contact us for further information on
    Lean, the CPC, or anything else related to
    manufacturing.
  • Appreciation is extended to High Performance
    Solutions Inc. for use of their material and
    images.

52
Contact Information
  • Scott Summach, Manager, Manufacturing Team
  • Strategic Sector Development Branch, Saskatchewan
    Industry and Resources
  • 206 15 Innovation Blvd, Saskatoon S7N 2X8
  • (306)933-7207
  • ssummach_at_ir.gov.sk.ca
  • Colleen Mackenzie,
  • Business Development Manager, (Manufacturing and
    Aerospace/Defense), Strategic Sector Development
    Branch, Saskatchewan Industry and Resources
  • 206 15 Innovation Blvd, Saskatoon S7N 2X8
  • (306)933-7209
  • cmackenzie_at_ir.gov.sk.ca
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