Lean Consortiums

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Lean Consortiums An Example Of Building
Competitiveness Through Collaboration
June 4 to 8, 2007 Regina, SK
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• Outline
• What is lean?
• What are consortiums?
• What is our role?

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• What is Lean?
• A thought process you use to look at your
  business.
• Focusing on those activities which add value to
  your product as defined by your customer.
• Looking at processes and reducing those
  activities that do not add value and are waste.
• customerprocessesemployee

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• The Lean Journey
• starts 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.

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• 7 Forms of Waste
• Defects
• Overproduction
• Waiting

The parts should be here any time now!"
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• 7 Forms of Waste
• Transportation
• Inappropriate processing
• Unnecessary inventory
• Unnecessary motion

Had to go clear across the plant to find it!"
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• Many other tools
• Including just-in-time, six sigma, 5-S, theory
  of constraints, total quality management,
  spaghetti diagrams, kaizen blitzes
• ...use whatever tool that best helps you
  eliminate waste

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• Results!
• Inventory
• Reduce Inventory by 56
• Inventory turns increased by 40
• No finished goods inventory all goods pulled by
  customer and shipped the day of manufacture
• 25 decrease in manufacturing inventory.

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• Results!
• Better response time to customer
• Deliver product in 10 days rather that 2 months
• Engineering time reduced from 2 weeks to 2 hours
• Product Cycle time decreased from 4 weeks to 2
  days
• Travel time reduced by 75
• Process time reduced by 82
• Production time reduced by 40
• On time delivery 96.1

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• Results!
• Better flow
• Productivity increased by an average of 55
• 6 fold increase in throughput
• Space requirements reduced by 35
• Space requirements reduced by 200
• Decrease bank debt by 50
• Gross Margin increased by 105

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• Results!
• Culture and Continuous Improvement
• Cultural change from traditional manufacturing to
  scheduling based upon product pull
• Staff are involved with the production process
  and allowed to make necessary changes.
• engagement

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• What are Consortiums?
• Consortium a group formed to undertake an
  enterprise beyond the resources of any one
  member.
• Lean Consortium a group of companies committed
  to maximizing member competitiveness through the
  sharing of resources and expertise.

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• Objective
• To increase the competitiveness of participating
  companies.
• Activities to support objective
• Share best practices and knowledge
• Pool financial resources for training or
  consulting
• Exchange ideas about implementing lean/lean tools
• Tour company facilities to provide feedback
• Discuss issues of common interest impacting
  business success

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• Characteristics of Consortiums
• usually 6 to 16 companies
• non-competing companies
• willing to learn and share best practices
• environment of confidentiality and respect
• desire to improve competitiveness

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• Key Success Factors
• Companies committed to
• improving competitiveness/business success
• allocating the financial/ human resources needed
  to implement lean
• sharing suggestions/experience
• key objectives and operating rules. E.g. no
  recruiting employees, confidentiality.

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• Key Success Factors
• Agreement on objectives and focus
• How the group will benchmark there success
• Consortium operation (facilitation, budget)
• Strategy for evolution meeting the needs of the
  group.

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• Saskatchewan Experience
• 3 Lean Consortiums
• First started in 1997
• 2 years to get first going
• Some seed funding to assist in start-up

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• Role of BREI and ED professionals
• Bring in resources on lean and consortiums
• Engage companies in implementing lean
• Assist with consortium start-up
• Assist in finding resources (funding,
  facilitation)

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• Success in Lean
• Lean Training is not a course or a tool it
  requires a long term corporate commitment.
• In our experience companies have a greater chance
  of success by working together.
• There is a role for BREI and ED professionals and
  organizations to support industry in their
  pursuit of lean.

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• Resources
• Lean Enterprise Institute www.lean.org
• Superfactory www.superfactory.com
• Industry Week www.industryweek.com
• CME website Manufacturing Consortia
  http//www.cme-mec.ca/national/template_na.asp?p4
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• Questions?
• Monique Lischynski
• Business Development Manager - Manufacturing
• Saskatchewan Industry and Resources
• Phone [phone]
• Email mlischynski_at_ir.gov.sk.ca