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Lean Manufacturing More than a fad

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Lean Manufacturing More than a fad Lean Manufacturing More than a fad Agenda . What is Lean Manufacturing . How does it work . What results can I expect . – PowerPoint PPT presentation

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Title: Lean Manufacturing More than a fad


1
Lean ManufacturingMore than a fad

2
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

3
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

4
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

5
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

6
Lean ManufacturingMore than a fad
  • Value Stream Mapping

7
Lean ManufacturingMore than a fad
  • Value Stream Steel shop example
  • Typically over 90 of work is waste

8
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

9
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

10
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.

11
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.

12
Lean ManufacturingMore than a fad
  • Lean Manufacturing Opportunities

13
Lean ManufacturingMore than a fad
  • Lean Manufacturing Opportunities

14
Lean ManufacturingMore than a fad
  • Lean Manufacturing Opportunities

15
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.

16
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.

17
Lean ManufacturingMore than a fad
  • Producer Start-up Experience
  • First try failed
  • Lean Goals Not Linked to Company Objectives
  • Poor Teamwork
  • Lack of Sustainment

18
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.

19
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

20
Lean ManufacturingMore than a fad
  • Lean Manufacturing Typical Results

21
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

22
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

23
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

24
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

25
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

26
Lean Manufacturing Its more than a fad
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