Alternate Hourly Lean Introduction

Going Lean An Introduction to Lean Principles

Objectives Understand what lean manufacturing is Know the difference between value and waste in our process Recognize the 8 types of waste Become familiar with the lean tools

Agenda Introduce Lean Manufacturing Define waste and value Communicate the types of waste Introduce basic “lean tools” Agree on a path forward

What is Lean Manufacturing? The optimization of value in our process so that we have the ability to make exactly what is needed, when it is needed and in the quantity it is needed by our customer The relentless identification and elimination of waste from our process so that we can flow at the rate of customer demand

How Will Lean Help Us? Reduce Lead Time to our customers by eliminating waste from our system Reduce frustrations by removing barriers to doing our jobs Encourage everyone to get involved in improving the process Increased customer satisfaction Optimally utilize resources while meeting our customer’s needs

What is Value? A measurement of the worth of a product, or service, by a customer based on it’s usefulness in satisfying a customer need An activity, process or operation that changes the product from one form to another in order to get it closer to the customer’s specifications It is something that the customer is willing to pay for

What is Waste? Any activity that adds costs or time but does not add value Consuming more resources (time, money, space, etc) than are necessary to produce the goods, or services, that the customer wants Pure Waste : Actions that could be stopped without effecting the customer Incidental Waste : Actions that need to be done based on how the current system operates but do not add value

The 8 Types of Waste Overproduction Inventory Transportation Motion (Operations) Processing Defects / Quality Waiting People’s Skills

Overproduction Common causes: Producing more than is required to make up for yield loss Scheduling production to forecasted demand Long changeovers or avoiding changeovers lead to large lot production Supplying the process with more than is needed to meet order requirements, sooner and faster than it is needed, causes almost all other types of waste This is the worst waste of all, because it helps cause all the others

Inventory Common causes: Overproduction Poor equipment layout Long changeover times Defective, or questionable, parts Mismatched production speeds Requires people, equipment and space to count, transport, store and maintain it If we do not get orders the material will become obsolete, and be thrown away Inventory is often used to help hide other wastes

Inventory Hides Waste Sea of Inventory Employee Availability Finished Goods Raw Materials Long Transportation Communication Problems Machine Downtime Poor Scheduling Quality Problems Line Imbalance Long Setups Supplier issues House Keeping Employee Availability

Reducing Inventory Uncovers Opportunities to Improve, Opportunities That Must Be Addressed! Employee Availability Poor Scheduling Long Setups Long Transportation Communication Problems Machine Downtime Quality Problems Line Imbalance Supplier issues House Keeping Employee Availability

Transportation Common causes: Extra Inventory Retention points before and after operations Excessive distance between operations (layout) Single skill focused operations Double or triple handling, moving in and out of storage areas and warehouses Material can get damaged if it’s moved too much It adds no value and is often used to get the extra inventory out of the way

Motion (Operators) Common causes: Poor workstation layout Isolated operations Shared tools Fatigue Workstation congestion Walking without working (away from workstation) Searching for tools, materials or information Reaching, bending or unnecessary motion due to poor housekeeping or workplace layout Process is not designed with employees in mind

Processing Common causes: Lack of standard work or processes Equipment over designed Process not updated with technology changes Lack of effective problem solving Doing more than is necessary to produce an effectively functioning product Extra setup steps, over-specification of the process, extra processing steps

Defects / Quality Common causes: Emphasis on downstream inspection; questionable material passed on Lack of standard work Material handling (transportation) Process design/equipment Defective or scrap materials Cost of inspecting defects Responding to customer complaints Rework or re-inspection of questionable materials

Waiting Common causes: Mismatched production rates Poor layout Machine breakdowns Ours or upstream Insufficiently staffed Operator waiting for machines to run or cycle Machine waiting for operator Waiting for parts, instructions, approval, information, maintenance, decisions…

People’s Skills Common causes: Management does not involve employees in problem solving Narrowly defined jobs and expectations Old school management, worker relationships Employees are seen as a source of labor only, not seen as true process experts People are told what to do, and asked not to think Employees are not involved in finding solutions, opportunities to improve our process are missed

Waste – the simpler part… Being Able to See IT! (once we know what it is) The Real Challenge … knowing how to properly remove it!

5 Lean Principles make up the Lean Strategy for Our Cell Specify value Map the flow of value Make value flow Pull from the customer Seek perfection

1. Specify Value for Our Customer(s) Value added steps lead to a transformation of the material from one form to another which gets the product closer to the customer’s specifications Providing the right product, at the right time, in the right quantity, at the right quality, at the right price, in the right place in accordance to the customers requirements

A value stream is all of the value-adding activity AND all of the non-value adding activity (pure waste and incidental waste) required to provide a product/service to a customer 2. Map the Flow of Value in Our Cell Process A Process B Process C Raw Material Customer Finished Product Value Stream

3. Make Value Flow in Our Cell Continuous Flow - Make One - Move One Batch Processing How long to make a pack of 10 units? How long to make a pack of 10 units?

4. Establish Pull from Our Cell’s Customer(s) Okay! One more please! Customer Supplier

5. Seek Perfection in Our Cell PDCA

Hoshin Plan A planning tool that helps us identify the key focus points and strategies we will use to steer us towards our vision. Enables everyone to ‘see’ where we’re going and our plans to get there Build plan and strategies as a team Shared responsibility and accountability for getting results Vision Key Result Areas Key Result Measures Key Strategies

Mission Statement Brief description of the organization's fundamental purpose “Why do we exist?” We will meet our customer’s expectations by utilizing the tools of Continuous Improvement to profitably manufacture quality gaskets.

Vision A picture of your company in the future The inspiration or the framework for all your strategic planning Answers the question, “Where do we want to go?” The Select-A-Seal EDGE (Excellence in Development, Growth and Execution)

Targets Targets are meant to break the vision down into actionable items that should be accomplishable in 3-5years. Growth of our people, our process, our organization & our sales: To have Grade A employees To fill the plants to near capacity; To continuously improve, both ourselves and our process; To improve yields so that we can stop 100% inspection To produce 100% of our own products

Core Values Behavioral attributes that are uniquely inherent to the organization and that must be maintained at all costs Explain why we do things the way we do Continuous Development Getting It Done Effective Problem Solving Teamwork Open Communication

Workforce Flexibility The ability of the workforce to “flex” to other jobs as demand fluctuates within the system, and the efforts the organization undertakes to ensure this occurs. Focused training and development plans Improve worker skill set Maximize organizational flexibility Allow the ability to flex to our customer’s demands

5S Focuses on effective workplace organization and standardization it allows us to easily spot variation from standard operating conditions. Cleaner, safer work environment Organized, user friendly workstations Open up space and reduce clutter

Total Productive Maintenance Shifts basic maintenance work to operators, freeing up maintenance personnel to work on planned maintenance or equipment improvements. Workers have ownership of the machine & process Maximize equipment effectiveness Increase employee skill set Reduced manufacturing costs through continuous monitoring

Visual Factory Visual elements on the production floor allow everyone to “know the score” and they make out of standard situations immediately obvious. Enables everyone to ‘see’ how we’re performing Helps highlight problems, or variances from standard Encourages employee involvement and open discussions

Standardized Work A step-by-step guide for the work activity used every time by everyone to safely complete a task based on best known practices. Operators involved in determining best practices Minimizes and highlights process variability Everyone learns best practice Critical steps highlighted 1 3 2 4 5 6 Proper PPE must be worn at all times. Standard Work Sheet

Kanban A visual system that easily communicates the need for parts to be either replenished or consumed. Designed to improve material flow and control inventory levels. Workers know what product to produce based on actual usage Minimizes inventory by tying production to consumption Places controls on how much inventory is carried within the system X X X (make one move one)

Quick Changeover Looks at trying to optimize changeover times by reducing activities that occur during the changeover, standardizing tooling/fixtures, adopting parallel activities and minimizing adjustments. Improve repeatability through standardized processes Improved flow of material Reduction in inventory Standardize expectations

Zero Defect Quality The principle that defects are prevented by controlling the performance of a process so that it cannot produce defects through mistake proofing and failsafe methods. Improved quality and customer satisfaction Solutions at the source – employees aid in problem solving and in developing creative, more effective corrective actions

Kaizen A system involving every employee that is based on making little changes on a regular basis, anywhere changes can be made. Continuous small improvements Changes are implemented quickly Everyone gets involved

What is Lean Manufacturing? The optimization of value in our process so that we have the ability to make exactly what is needed, when it is needed, in the quantity it is needed by our customer The relentless identification and elimination of waste from our process so that we can flow at the rate of customer demand

Value Defined Value-Added Activities Transforms or shapes material or information Customer wants it Done right the first time Incidental Waste No value created but required by current technology No value created but required by current thinking No value created but required by process limitations No value created but required by current process Pure Waste Consume resources but creates no value for the customer Could be stopped and it would be invisible to the customer

Lean Emphasis Resource distribution Opportunity for improvement by reducing waste and creating additional value Value Waste Initial Process Value Waste General Process Reduction Waste and Value Both Decrease Waste Only Reduction Value Waste Target & Reduce Waste Maintain Value Value Maintained Resources Decrease Value Creation Value Waste Apply Resources to Create More Value Value Increased Resources Focused

How Do We Succeed with Lean? As a team – open minded, supportive Understand the concepts and accept all aspects of the lean process, including those that may cause undesirable effect in the short term Aligned focus from the top to the bottom Effectively use lean methodologies Carefully plan implementation to remove waste Allocate the proper resources Becoming truly lean is a journey and will not be made without some discomfort

Expected Lean Results Costs Defects (99%) Inventory (10 fold) Lead Time (90%) Machine Downtime Space (50%) Capacity Customer Responsiveness Efficiency Employee Satisfaction Flexibility – Demand Flux

Internl Lean Resources Harold Philbrick Darrell Bryant Dennis Dempsey

Attitude is Critical “ If you think you can or you think you can’t, you’re right.” Henry Ford

Alternate Hourly Lean Introduction

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Alternate Hourly Lean Introduction