Uhy Lean Core

Achieving Lean
In Manufacturing & Business Operations
UHY Advisors MI, Inc.
26200 American Drive Southfield, Michigan 48034
(248) 355-1040
The Lean CORE . . .The Lean CORE . . .
Core Business Management SolutionsCore Business Management Solutions
TM

of 12
Lean Manufacturing
1.0 Introduction
Lean manufacturing is a whole-systems approach that creates a culture in which everyone in
the organization continuously improves processes and production. It is a system focused on and
driven by customers, both internal and external. In a lean manufacturing environment, the
value of a product is defined solely by the customer. The product must meet the customer's
needs at both a specific time and price. The hundreds of “activities” that manufacturers do to
deliver a product are generally of little interest to customers. To view value from the eyes of the
customer requires most companies to undergo a comprehensive analysis of all their business
processes. Identifying the value in lean manufacturing means to understand all the activities
required to produce a specific product, and then to optimize the whole process from the view
of the customer. This viewpoint is critical because it helps identify activities that clearly add
value, activities that add no value but cannot be avoided, and activities that add no value and
can be avoided.
The transition to a lean environment does not occur overnight. A continuous improvement
mentality is necessary to reach the goals. The term "continuous improvement" means
incremental improvement of products, processes, or services over time, with the goal of
reducing waste to improve workplace functionality, customer service, or product performance.
Continuous improvement principles, as practiced by the most devoted manufacturers, result in
astonishing improvements in performance that competitors find nearly impossible to achieve.
The key components or “processes” of lean are as follows:
Visual Controls
Balanced Flow
Team Building
Standardization
One Piece Flow
Stabilized Operations
Continual Improvement
Employee Involvement
Equipment Utilization / Replacement
Primary Processes of Lean Manufacturing Supporting Strategies & Concepts
Creating a Learning
Organization

of 12
Lean Manufacturing
The aim of Lean Manufacturing is the elimination of waste in every area of production including
customer relations, product design, supplier networks, and factory management. Its goal is to
incorporate less human effort, less inventory, less time to develop products, and less space to
become highly responsive to customer demand while producing top quality products in the
most efficient and economical manner possible.
Essentially, a "waste" is anything that the customer is not willing to pay for. Typically the types of
waste considered in a lean manufacturing system include:
Overproduction: to produce more than demanded or produce it before it is needed. It is visible
as storage of material. It is the result of producing to speculative demand. Overproduction
means making more than is required by the next process, making earlier than is required by the
next process, or making faster than is required by the next process. Causes for overproduction
waste include:
• Misuse of automation • Long process set-ups
• Unbalanced work loads • Over engineered
• Redundant inspections • Just-in-case logic
Waiting: for a machine to process should be eliminated. The principle is to maximize the
utilization/efficiency of the worker instead of maximizing the utilization of the machines. Causes
of waiting waste include:
• Unplanned maintenance • Long process set-up times
• Unbalanced work loads • Upstream quality problems
• Un-level scheduling • Misuses of automation
Inventory or Work in Process (WIP): is material between operations due to large lot production or
processes with long cycle times. Causes of excess inventory include:
• Product complexity • Un-level scheduling
• Unbalanced work loads • Poor market forecast
• Unreliable suppliers • Poor communications
Processing waste: should be minimized by asking why a specific processing step is needed and
why a specific product is produced. All unnecessary processing steps should be eliminated.
Causes for processing waste include:
• Undefined requirements • Lack of communications
• Over-processing • Just-in-case logic
• Redundancy • Excessive information
• Product changes without process changes
Transportation: does not add any value to the product. Instead of improving the transportation,
it should be minimized or eliminated (e.g. forming cells). Causes of transportation waste includes:

of 12
Lean Manufacturing
• Poor plant layout • Wrong process flow
• Batch sizes not efficient • Long lead times
• Uncontrolled storage areas • Wrong locations
Motion: of the workers, machines, and transport (e.g. due to the inappropriate location of tools
and parts) is waste. Instead of automating wasted motion, the operation itself should be
improved. Causes of motion waste include:
• Ineffective machines • Inconsistent work methods
• Poor workplace organization • Poor housekeeping
• Wait times • Busy movements
Making defective products is pure waste. Prevent the occurrence of defects instead of finding
and repairing defects. Causes of processing waste include items such as weak process control,
inadequate education, training and instruction, unbalanced inventory levels, and un-clear
customer requirements.
Nearly every waste in the production process can fit into at least one of these categories. Those
that understand the concept deeply view waste as the singular enemy that greatly limits
business performance and threatens prosperity unless it is relentlessly eliminated over time. Lean
manufacturing is an approach that eliminates waste by reducing costs in the overall production
process, in operations within that process, and in the utilization of production labor. The focus is
on making the entire process flow, not the improvement of one or more individual operations.
Here are 10 tips to assist line employees and their immediate supervisors to understand and fully
embrace the changes required for lean to succeed:
1. Develop a shared vision of where the corporation is headed over the long term. Make it
clear how the lean manufacturing initiative supports that vision.
2. Ensure there are strong signs of top management support such as championing meetings,
allocation of proper funding, and ensuring actions are consistent with words. This support
should translate into commitments by middle and front-line management, such as change
management training and involvement in project planning and communication.
3. The implementers of the change, i.e., the front line, must understand and embrace the
change. Understanding and readiness for the change can be tested at key milestones in the
project through formal interviews and surveys, and / or informal channels such as meetings
with first-line supervisors.
4. Senior business people with solid leadership skills must allocate time from their regular duties
to focus on implementing the lean program. They should be properly trained in lean
techniques and given adequate support such as internal and external project resources.

of 12
Lean Manufacturing
5. Allow sufficient time for implementation, typically six months to several years. This should not
be confused with the very short-term focus of a given Kaizen blitz or the coming and going
of a given manager.
6. Establish performance measurement targets to define what a successful lean
implementation looks like.
7. Create a communications plan that provides regular updates to all stakeholders, and
provides a feedback mechanism for those managing the lean program.
8. Education and training must be provided for each stakeholder group, with respect to the
nature and benefits of the changes anticipated.
9. Anticipate resistance to change, especially if there is a history of poorly implemented
changes. Develop a plan for managing that resistance. Make sure that the pain of
implementing lean is seen to be less of a pain than the status quo.
10. Offer recognition for the early adopters of lean manufacturing. Recognition can be as simple
as pizza brought in for lunch when performance targets are met. Consequences such as
peer rejection or isolation can be effective when someone does not try to make a change
work.

of 12
Lean Manufacturing
2.0 UHY – Project Capabilities
2.1 Lean Manufacturing Approach
As a full-service business advisory firm, UHY Advisors’ Michigan-based manufacturing consulting
team has assisted over 200 companies during the past 11 years. The foundation of our
approach to Lean Manufacturing is based on a hands-on approach with a focus on the transfer
of knowledge. The objective is to ensure that our team’s deliverables create a learning
organization at every level and through every activity completed. With this philosophy in mind,
the UHY approach to Lean Manufacturing follows a proven roadmap to achieving results.
Manufacturers committed to becoming lean enterprises need to follow a lean "roadmap" based
on phases. Individual strategies for implementation will vary according to specific company
circumstances and needs, however a structured approach is required to achieve long-term
implementation success. Our recommended roadmap is as follows:
Stage 1 – Operational Assessment & Process Review:
We start by learning the right information about your organization, including key processes,
business objectives, internal and external customer expectations, and management structure.
As a team, we work with your personnel to establish a strategy, vision and strategy to integrate
Lean within your company. For a 200 person manufacturing company, this diagnosis stage of
the Lean roadmap involves a three to four day comprehensive on-site assessment that
incorporates management and staff interviews, analysis of manufacturing data, review of
financial performance, and an evaluation of production performance metrics.
Stage 2 – Lean Solution Development & Personnel Training:
With an understanding of your business operations and objectives, we work with your team to
develop a company-specific Lean solution. We assist in establishing a Core Lean Team and
provide Lean Manufacturing training to your staff. The objectives are to establish a "Think Lean"
philosophy so that the entire organization is clear on the concepts and benefits of Lean and to
strengthen employee commitment to implementing the principles of Lean. A key element of
Lean Solution Development is the utilization of Value Stream Mapping (VSM) used to establish
Stage 1
Stage 2 Stage 3
Stage 4
Operational Assessment
& Process Review
Program Maintenance &
Continual Improvement
Lean Solution
Development & Training Implementation

of 12
Lean Manufacturing
current and future state maps of critical processes. (See the Appendix Section for additional
details on VSM).
Stage 3 – Implementation:
We incorporate a long-term commitment to provide the guidance and direction needed to
achieve Lean Manufacturing success. Implementation is based on the degree of change
incorporated and can take several weeks to several months. We follow a multi-step approach
that involves mentoring, facilitation, knowledge transfer, and joint implementation with your
team to achieve measurable results. Implementation involves a wide variety of supporting Lean
strategies and concepts – our team will provide the knowledge to integrate these strategies and
concepts.
Stage 4 – Program Maintenance & Continual Improvement:
The initial benefits realized through Lean are just the beginning. A sustained commitment to Lean
demands sound performance measurements, management direction, and a continual
improvement methodology. We are committed to your success and structure a Lean
Maintenance Program to remain as active in your company as requested. We will ensure that
you continue to enhance your competitive edge, measure performance, and maintain
alignment with your strategic plan.

of 12
Lean Manufacturing
2.3 Personnel Bios, Lean Manufacturing Experience & References

Alan Lund – UHY Advisors, Inc.
Industry Expertise
Alan Lund is a consulting principal at UHY Advisors, Inc. and has been with the firm since 1996. He
has been actively involved in assisting a wide variety of companies with profit and process
improvement activities. As a consulting principal, Mr. Lund manages a team of profit and
process enhancement consultants. Alan specializes in profit and process enhancement services
for UHY’s manufacturing based clients and is a RAB/IRCA Certified Quality Systems Lead Auditor.
Alan has provided hands-on assistance to companies in a number of industries, including:
specialty machine builders, construction, tool and die, rapid prototyping, plastic fabrication,
distribution, chemical processing, metal fabricators, and engineering services organizations.
Alan received a Bachelor’s of Science in Mechanical Engineering from Iowa State University and
has over 20 years of industry experience.

Dennis Hughey
Industry Expertise
Dennis Hughey began his career at General Motors as a Journeyman Tool Maker. Dennis retired
from GM as the Supplier Development Manager for GM’s Cadillac Division where he was
responsible for developing approximately 700 suppliers to Cadillac’s Targets for Excellence
requirements and Lean Manufacturing concepts. Dennis trained and conducted Synchronous
Process Improvement Workshops, Value Analysis and Value Chain Workshops, and Lean
Manufacturing Concepts for GM’s supplier network and GM’s internal operations.
Over the course his tenure at GM, Dennis’ responsibilities included GM Corporate Chairperson
for Supplier Development, Tooling Coordinator, Reliability & Dimensional Control Engineer, and
Tooling & Maintenance Manager.
Dennis has a Bachelor of Science in Structural Engineering from Lawrence Institute of
Technology, Southfield, Michigan.
Dawn Grego
Industry Expertise
Dawn Grego is a Consulting Manager at UHY Advisors, Inc. and has over 17 years experience
working in a professional environment establishing systems to meet rigorous aerospace and FAA
standards as well as FDA medical standards. Dawn has conducted and managed
internal/external audits, implemented subcontractor review/evaluation tracking systems,
developed and implemented company processes, procedures and training, implemented and
maintained ISO 9001 and AS9100 quality management systems while effectively supporting
organizations in continuous improvement efforts to increase efficiency and reduce costs.

of 12
Lean Manufacturing
Dawn has implemented quality and business process improvement systems such as MQ1
(Maximum Quality First), SyteLine, Workflow and BPM (Business Process Mapping). Additional
areas of expertise include ISO 9001, ISO/TS 16949, AS9100 and AS9110 auditing, process
mapping, and industry standards/regulations, including Military (MIL), Federal Aviation (FAR),
Joint Aviation (JAR), and Food & Drug (FDA).
Dawn has worked for Michigan-based companies such as Gentz Industries, LLC, located in
Warren, Turbine Engine Support (Formerly The Stalker Corporation), located in Essexville, and Tru
Tech Systems, Inc., Mt. Clemens.
Lean Manufacturing Experience:
Our Lean Manufacturing Team has multiple years of experience providing Lean Manufacturing
facilitation and hands-on assistance to a wide variety of companies. During his career at GM,
Dennis Hughey provided Lean Manufacturing guidance to dozens of GM suppliers.
Dennis Hughey:
Magna/Intier:
Lean Manufacturing facilitation at 12 Magna/Intier production plants located in the US &
Canada plus Magna/Intier’s International operations over the past 5 years.
General Motors:
Approximately 10 years of GM supplier development. Companies included:
o Electro-Mac – Tooling & Dies
o General Safety – Seat Belt manufacturing
o Lear Seating
o Donnelly Corporation – Assembly and Injection Molded products
o Robert Bosch – Electronics
Alan Lund:
Alan incorporates the principals of Lean Manufacturing into the majority of process
improvement engagements undertaken. During the past 11 years, Alan has assisted over 200
companies in their improvement efforts. Reference companies include:
Machine Builders:
o National Machinery, Tiffin, Ohio:
Design, build and assembly of Cold & Hot Forming Equipment
o Tru Tech Systems, Mt. Clemens, Michigan:
Design, build and assembly of High Precision Grinding Equipment
o Merritech, Saginaw, Michigan
Design, Build and assembly of specialized automotive handling and assembly equipment
Metal Fabrication:
o Wainwright Industries, Missouri
o Accurate Gauge & Manufacturing Co., Michigan
o Gentz Aerospace, Michigan

of 12
Lean Manufacturing

Service and Miscellaneous Manufacturing:
o Stevens Industries, Illinois
o Reed Rubber Company, Missouri
o Mason McBride Insurance, Michigan
References – Dennis Hughey:
Intier Automotive Closures
Contact Phone #: John O’Hara, VP of Operations (905) 898-5257 x2928
Robert Thiessen (905) 898-3992 x2206
Rick Turek, Asst. General Manager (905) 898-3992 x3119
Joel Cherewyk (905) 898-3992 x2563
Harbour Consulting
Contact Phone #: John, Lucci, Director, North America (248) 649-5542 x204
Mercedes Benz – Germany
Contact Phone #: Burkhard Henkel, Manager, Body Shop 0421/419 7462
References – Alan Lund:
Robert Loy, Director of Quality & Special Projects
National Machinery – www.nationalmachinery.com
Contact Phone # (419) 443-2364
Darrin Soukup, Manufacturing Engineer
Accurate Gauge & Manufacturing – www.accurategauge.com
Contact Phone # (248) 853-2400
Susan Cutler, CFO
Wainwright Industries – www.wainwrightindustries.com
Contact Phone # (636) 278-5850 ext 3016

of 12
Lean Manufacturing
3.0 Value Stream Mapping:
Value Stream Mapping:
Value Stream Mapping is a method of visually mapping a product's production path (materials
and information) from "door to door". VSM can serve as a starting point to help management,
engineers, production associates, schedulers, suppliers, and customers recognize waste and
identify its causes. The process includes physically mapping your "current state" while also
focusing on where you want to be, or your "future state" blueprint, which can serve as the
foundation for other Lean improvement strategies.
Current State
A value stream is all the actions (both value added and non-value added) currently required to
bring a product through the main flows essential to every product - the production flow from raw
material into the arms of the customer and the design flow from concept to launch. Taking a
value stream perspective means working on the big picture, not just individual processes, and
improving the whole, not just optimizing the parts.
Value Stream Mapping is a pencil and paper tool that helps you to see and understand the flow
of material and information as a product makes its way through the value stream. The meaning
is simple: Follow a product’s production path from customer to supplier, and carefully draw a
visual representation of every process in the material and information flow. Then ask a set of key
questions and draw a “future state” map of how value should flow.

of 12
Lean Manufacturing
Future State
Within the production flow, the movement of material through the factory is the flow that usually
comes to mind. But there is another flow - of information - that tells each process what to make
or do next. You must map both of these flows.
Value Stream Mapping can be a communication tool, a business planning tool, and a tool to
manage your change process. The first step is drawing the current state, which is done by
gathering information on the shop floor. This provides the information needed to map a future
state. The final step is to prepare and begin actively using an implementation plan that
describes, on one page, how you plan to achieve the future state.
More and more organizations with successful shop-floor lean efforts are also applying Value
Stream Mapping methods and lean principles to administrative areas. Value Stream Mapping
provides a simple, yet thorough methodology that relies on relevant data analysis and display. It
links reporting requirements, metrics, people, and lean tools to sustain improvement and
promote process learning. It gives managers and employees the same tool and language to
communicate.
WHY VALUE STREAM MAPPING IS A GOOD PLACE TO START YOUR LEAN JOURNEY
• it helps you visualize more than just the single-process level, i.e. assembly, welding, etc.
• it helps you see more than waste it helps you see the sources of waste in your value
stream

of 12
Lean Manufacturing
• it provides a common language for talking about manufacturing processes
• it makes decisions about the flow apparent, so you can discuss them
• it ties together lean concepts and techniques helps you avoid "cherry picking"
• it forms the basis of an implementation plan
• it shows the linkage between the information flow and the material flow
• it is much more useful than quantitative tools and layout diagrams that produce a tally of
non-value added steps, lead time, distance traveled, the amount of inventory, and so
on.
__________________________
Alan K. Lund

Achieving Lean
Front Door
Lean Implementation
Workshop

Current State Layout Front Door

Current Measures Front Door
Min. Sec.
Total Shift Time 510 30600
Lose Time -30 -1800 Lunch
-30 -1800 Breaks
-10 -600 Exercise
-3 -180 Plant Meeting
-7 -420 Change over
-21 -1260 Rotation of Opr
-4.5 -270 Line Meeting & 5S
Daily Available Time 404.5 24270 6.7 Hours
Per Shift
July 4th August Oct 4th Total
Product Shipped 104,166.0
Days worked 20.0 22.0 24.0 66.0
Current Takt Time Forecast
Avg. Pieces per Day 1,800.0 1,578.3 1,610.0
Shifts 2.0 2.0 2.0
Operators per Shift 13.0 13.0 13.0
Productivity 69.2 60.7 61.9
Pieces per Hour 133.5 117.1 119.4
Cycle Time One Shift 13.48 15.38 15.07 100% Eff.
Cycle Time Two Shift 26.97 30.76 30.15 100% Eff.
WK Frt Dr Line
Current Evaluation
Current

Current Cycle Times Front Door
WK Frt Dr
Cycle Times
7.0 7.0
11.0
15.0
18.0
23.0
25.0 25.0
30.0
25.0
16.0
18.0 17.5
15.0
2.0 2.0 2.0 2.0 2.0
6.0
1.0
0.0
35.0
G
lassBushing
250
250M
255
255M
230
230M
220
290A
290B
300A
300AM
300B
300BM
260
260M
265
265M
PackA
PackB
Operations
Seconds
Opr Time
Machine Time
TT Two Shifts
TT One Shift

Proposed Improved Measures Front Door
Min. Sec.
Total Shift Time 510 30600
Lose Time -30 -1800 Lunch
-30 -1800 Breaks
-10 -600 Wash Up
-3 -180 Meeting
-7 -420 Change over
-21 -1260 Rotation of Opr
-4.5 -270 Line Meeting
Daily Available Time 404.5 24270
Proposed
Avg. Pieces per Day 1,610.0
Shifts 2.0
Operators per Shift 9.0
Productivity 89.4
Pieces Per Hour 119.4
Takt Time 95% 28.64
Takt Time 90% 27.13
WK FRT Line
Proposed Evaluation
Front Door

Improved Cycle Times-Front Door
WK FRT DR
Cycle Times
Option "A"
7.0 7.0
11.0
15.0
18.0
23.0
25.0 25.0
30.0
25.0
16.0
18.0 17.5
15.0
2.0 2.0 2.0 2.0 2.0
6.0
1.0
25.0
22.0
18.0
23.0
25.0 25.0
24.0
25.0
23.0
0.0
35.0
G
lassBushing
250
250M
255
255M
230
230M
220
290A
290B
300A
300AM
300B
300BM
260
260M
265
265M
PackA
PackB
Operations
Seconds
Opr Time
Mach Time
Improved Opr Time
TT One Shift
TT Two Shifts

Improvement Measures-Front Door
Assumptions
4. Operators do not get parts for their operation. They should only make parts.
1. Material must be availble at all work stations.
2. Equipment must operate when required.
3. Operators should be dedicated for the line or well trained.
5 Material must be presented ready for use for the operator
%
Measurables Current
Estimated
Improvement Improvement
Productivity (ST) 69.2 89.4 29.2%
(Pcs/Person/Day)
Inventory ($) $0 $0 #DIV/0!
Floor Space (Sq Ft) 669.0 432.0 35.4%
Lead Time (min) 194.0 100.0%
WK Front and Rear Door
Front Door

Front Door-Comparison Current to Proposed
$20.85 Per Hour
Avg. Pcs. made
per Shift
# of Production
Hours
# of
Operators
Labour
cost per
shift
Labour cost
per Year
Day Shift 900 8.00 13 $2,168 $520,416
Afternoon Shift 900 8.00 13 $2,231 $535,392
TOTAL $1,055,808 $2.44
Pcs. Required
per Shift
# of Production
Hours
# of
Operators
Labour
cost per
shift
Labour cost
per Year (240
Days)
Day Shift 805 8.00 9 $1,501 $360,288
Afternoon Shift 805 8.00 9 $1,544 $364,478
TOTAL $724,766 $1.89
Proposal - WK Front
WX FRT & RR DOOR
Current - WK Front Door
Based on 240 available Days
Annual Labour
Cost Piece Price
Annual Labour
Cost Piece Price
Current
Labour
Proposed Net Savings % Capital Cost
Net
Savings
Pay Back
(Mths)
$1,055,808 $724,766 $331,042 31% $15,000 $213,418 0.8
$213,418 23%Piece Price Savings
Pay Back - FrontSavings (Annual)-Front

Uhy Lean Core

More Related Content

What's hot (18)

Viewers also liked (8)

Similar to Uhy Lean Core (20)

More from alanlund (8)

Uhy Lean Core