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Lean Manufacturing


Title: Chapter 1 - Customer Value Author: Crane Hydro-Aire Last modified by: alforqan Created Date: 4/1/2000 4:20:36 AM Document presentation format – PowerPoint PPT presentation

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Title: Lean Manufacturing

Lean Manufacturing
Chapter 1Customer Value
"There is only one boss the customer. And he can
fire everybody in the company, from the chairman
on down, simply by spending his money somewhere
else." Samuel M Walton
Key Point
  • Value is defined by the customer

Whenever there is a product for a customer,
there is a value stream. The Challenge lies in
seeing it
Module Goals
  • Know
  • Your external customers
  • Your internal customers
  • Feel
  • Capable of talking to your customer
  • Do
  • Identify what your customers value
  • Measure the delivery of value to your customers

ResultsProfitable Sales
  • Knowing what your customers value enables you to
  • build loyalty - penetrate deeper, retain more
  • win new accounts - keep them
  • make transactions easier, faster
  • add services, support - higher value
  • develop new products, services - higher value
  • enhance marketing programs
  • help customers succeed

What do Customers Value?
  • The technical performance or quality of a product
    is no longer the primary determinant of customer
  • Customers evaluate other "value factors such as
  • Delivery
  • Total cost of ownership
  • Data and information
  • Value or solution bundles
  • What does your customer value?
  • More importantly, what are you doing about it?

7 Types of Waste
  1. Waste from overproduction
  2. Waste from waiting times
  3. Waste from transportation and handling
  4. Waste related to useless and excess inventories
  5. Waste in production process
  6. Useless motions
  7. Waste from scrap and defects

7 Types of Waste
  • Overproduction - The primary waste
  • Making parts faster than is required
  • Excess Inventory
  • Time wasted, that could be used to make product
    that is required
  • Waiting
  • An operator waiting for a long machine cycle to
  • Transportation
  • Moving parts and products does not add value - it
    just adds cost

7 Types of Waste
  • Unnecessary Processing
  • Booking work into a store and then having to book
    it back out again to use.
  • Inventory
  • There is a cost to the Company for carry
  • There is always the risk it can become obsolete
  • It covers up other inefficiencies e.g. Long
    set-up times

7 Types of Waste
  • Unnecessary Motion
  • Any motion of a person that does not add value
  • Operators / Setters looking for tooling
  • Correction
  • Reworking defective materials
  • Things to remember about waste
  • It is a symptom rather than a root cause of the
  • It points to problems within the system, at both
    process and value stream levels
  • We need to find and address the causes of the

Basic Roadmap
Cautions Never, ever assume that
  • You already know what the customer wants.
  • Marketing and sales people know the customer
  • Unless they have a defined program of regularly
    asking the customer what they want.
  • Customers requirements are the same as always
  • They will change over time
  • We need to monitor and track
  • You understand why customers do what they do.
  • What drives them?
  • Ask customers directly do not assume you know.

Quiz TimeDo you
  • Have management commitment and involvement?
  • Have a defined list of your customers?
  • Ask your customers what they value?
  • Ask your customers the importance of those
  • Ask your customers how you perform?
  • Map the flow of value to the customer?
  • Measure your performance in delivering value?
  • Know how your performance affects the company?
  • Know your competitive advantage?
  • Use this information to prioritize projects?
  • Have a defined program for continuous improvement?

Basic Plan
  • Identify your customers
  • Ask the customers what they value
  • Map your value stream
  • Measure the delivery of value
  • Make continuous improvements

Identify Your Customers
  • External
  • Consumers
  • Distributors
  • Internal
  • Next process
  • Shipping
  • Management
  • Inspection/audit
  • Other
  • Employees
  • Suppliers

Be Customer Focused
  • Make a list of all customers
  • Put the list in order of priority to your process
  • The most important customer is often the next
  • Post the list in the work area
  • Be aware of all customers

Ask the CustomerAsk Yourself 3 Questions
  • What do you want to know?
  • Who do you want to know it from?
  • What are you going to do with the information?
  • If you cannot answer question 3, you should not
    bother asking questions 1 and 2.

Ask the CustomerGeneral Questions
  • What is most important to them?
  • What would make their day?
  • What would utterly delight them?
  • What would differentiate you from the
  • Use open-ended questions.

Ask the CustomerStandard Questions
  • How important to you is OTD?
  • What do you mean by OTD?
  • How do we perform on OTD?
  • What do you do if we dont perform?
  • What impact does non-performance have on you?
  • Ask for each factor of interest to you.
  • Use a scale of 1 (low) to 9 (high)
  • OTD On time Delivery

Ask the CustomerProcess
  • Openly state your purpose for asking questions
  • Do more listening than talking
  • Do not be defensive, take criticism graciously
  • Probe for explanations ask why five times
  • Do not try to sell the customer, just gather

Ask the CustomerReport Findings 2x2 Grid
Map Your Value Stream
Measure the Delivery of Value
Make Continuous Improvement
Lean Manufacturing Cycle
  • Getting value to flow faster exposes hidden muda
    in the value stream.
  • The harder you pull, more obsticles to flow are
    revealed so they can be removed.

Integrating the Lean Enterprise
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