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Lean Manufacturing Takeaways


Title: Why Learn from Toyota? Author: Williamson-Dickie Last modified by: mgreen Created Date: 4/19/2005 2:09:01 AM Document presentation format: On-screen Show – PowerPoint PPT presentation

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Title: Lean Manufacturing Takeaways

Lean Manufacturing Takeaways
  • SCLC / ECC Spring Meeting
  • April 26th, 2007

Remember what Lean is?
Lean constitutes a philosophy / culture of how to
satisfy customers increasing demands for greater
value. An ideal value-creation process exists
when the fewest number of steps are
properly sequenced and made to continually flow.
Waste Eliminated
Lean is a philosophy which shortens the time line
between the customer order and the shipment by
eliminating waste.
Business as Usual
Lean Manufacturing
Time (Shorter)
Basic Lean tools you will need
Implementing Lean - Leadership
  • An inspired leader at the top is required,
    somebody who takes responsibility for change.
  • Operating managers need continual education and
    assessment to assure no backsliding.
  • Change agent has to fully understand Lean
  • Remove the anchor draggers early. Small groups
    who simply can not accept new ideas.
  • Make sure Upper Management drives the initiative.
    (Top Down approach is essential).

Implementing Lean - Organization
  • No cookie cutter approach needs to take into
    account current culture, resources, etc.
  • Look upstream and downstream. Include entire
    organization (at some point in time).
  • Emphasize that lean is a process, dont try to
    jump to an end solution. Focus on culture, not
  • Listen to consultants ideas and adapt them to
    your needs. Dont follow all recipes exactly as

Implementing Lean - Organization
  • A plan for lean is like a 1 year forecast. So the
    process needs frequent modification.
  • Adapt tools as needed. Dont force the use of a
    tool if there is no need.
  • Create a Lean accounting system (ABC is of great
    help) around value stream costing. You still need
    financial accounting for GAAP requirements.
  • Adjust metrics to support new culture.

Implementing Lean - Execution
  • Focus on matching execution resources to
    capabilities. Careful with taking in too much.
  • Mapping processes raise awareness about current
    states and spark new ideas to improve.
  • Involve inform all the stakeholders from the
    bottom up.
  • Make small incremental changes constantly rather
    than one time change.
  • Communicate the plan with clarity to all

Implementing Lean Goal Setting
  • Focus on results (key metrics)
  • Get data for the last 5 years.
  • Benchmark your plant against the best plants
  • Compare your results against your own history.
  • If there is no perceived urgent need, people will
    not perceive the need to change and will not
  • Create scorecard to measure baseline metrics.
  • Set goals and time frames for success criteria.

Implementing Lean People
  • Have a communication strategy that includes
  • Mechanism to keep everyone informed.
  • Mechanism to handle improvement ideas.
  • Establish Roles and Responsibilities clearly.
  • Audit the compliance of the roles and
  • Teams must have authority and resources to exist.
  • Establish PBL process for teams to structure
    proper meetings, to set accountability and focus
    on metrics.
  • When designing work groups, try to have small

Implementing Lean Training
  • Certify your staff on Lean Management techniques,
    prior to implementation.
  • Spread lean techniques through intensive training
    across staff level.
  • Cross train employees before implementation of
  • Train personnel on soft skills prior to the
    start of the pilot.

Implementing Lean Compensation
  • Have a well defined group compensation system in
    place before implementation.
  • Pay system has to achieve behavioral changes that
    impact bottom line business results.
  • Manage new pay system.
  • Include indirects in your compensation scheme.
  • Set non-monetary reward systems as well.

What you want to measure
  • Productivity
  • Units produced per day per employee (all
    employees in the building).
  • Throughput Time (Dock to Dock)
  • Time (in days or hours) it takes for units to
    move from first dock (receiving raw materials) to
    the last dock (finished goods shipping area).
  • Total Cost / unit
  • Must include all costs in the garment. Overhead,
    variable cost, labor, materials, etc.

What you want to measure
  • WIP Cost for the system
  • Number of units inside the process times the
    value of the materials in the process.
  • First time through
  • Quality level at each step accumulated across all
    steps. of the total that make it to the end
    with no re-work.
  • Productive time, Non-productive time, Waiting
  • Start by removing non-productive time into
    waiting time. It then moves from waiting to
    productive time.

Lean Pilot Results
Productivity 25 pr/person 40 pr/person 60 Improvement
Quality 4.6 defects at final audit 2.1 defects at final audit 58 less defects
Space 102 sq. ft. per person 36 sq. ft. per person 64 less sq. ft. per person
WIP 4 units of WIP per unit produced. 0.3 units of WIP per unit produced 13 times less units in inventory
Lead Time 3.7 days 0.27 days 93 reduction
Absenteeism 3.2 daily 2.1 daily 33 reduction
Variation in Process (Daily Schedule attainment) /- 45 variation (Daily Schedule attainment) /- 10 variation (Daily Schedule attainment) 88 more reliable process (Daily Schedule attainment)

Lean Improvements by team
  • Productivity

Before 33 operators
After 27 operators
Lean Improvements by team
  • PDCA Implementation of Lean Tools

Associates received an award because of their
participation in a PDCA targeted at reducing the
defects in Seatseam
Evidence of Progress toward Lean
  • Increased capacity
  • Higher inventory turns
  • More available floor space
  • Improved workplace organization
  • Improved quality reduced scrap / re-work
  • Reduced inventories raw, WIP, FG
  • Reduced lead times
  • Greater gross margin
  • Improved participation morale

Lean resources
  • www.lean.org
  • www.productivityinc.com
  • www.productivitypress.com
  • www.leanadvisors.com
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