Intro to World Competition Consultants
- 1. World Competition Consultants 523 W. Lamar Alexander Parkway Suite 12 Maryville, TN 37801 (865) 681-0029 raymond@wcconsultants.com www.wcconsultants.com World Competition Consultants Better, Faster, Cheaper 2 Would you be excited to … • Reduce your Operational Costs by 13-40% • Increase your Productivity between 20-100% • Reduce Inventory by 25-73% • Reduce Setup Times by 50-97% • Reduce your Scrap by 30-50% • Improve Space Utilization by 30-50% • Obtain Quality Yield Improvements of 50-90% • Improve your Order-to-Delivery Lead-Time of 30-87% • Customer Service (On-Time-In-Full) Improved by 20-42% • Improve your Cash Flow 30-70% • Reduce your Number of Suppliers by as much as 77% • Reduce your Suppliers’ Lead-Time by as much as 83%, and …. • Get a Return-on-Investment in WCC’s Consultancy Fees >300% in the first year World Competition Consultants (WCC) has proven expertise in implementing operational and/or transactional improvements and achieving dramatic results as shown above.
- 2. 3 World Competition Consultants (WCC) World Competition Consultants (WCC) will help transform your business into a market leader by assessing your operational & transactional inefficiencies and closing the gap to achieving a world-class performance level. WCC is comprised of an international group of successful seasoned hands-on business practitioners with an extensive & diversified portfolio of business successes across a vast array of industries. We differentiate ourselves as consultants as “we have been there, done that and we were successful”. Our solutions are based on proven-methodologies, not theory. And we’ll guarantee you, an attractive return on your investment in WCC’s services. Our business-model allows us to quickly scale our services to meet your requirements. Our leadership team utilizes industry-practitioners who are Subject-Matter-Experts (SMEs) in their field. Our resource-pool is boundless. We are not limited to a small-pool of “traditional” consultants as we have access to some of the best SMEs worldwide. Our Capabilities 4
- 3. 5 • Lean Transformations : Eliminating “Waste” from your Operational & Transactional processes. Achieving cost reductions throughout the end-to-end supply chain, external & internal. • Business Turnaround : Identifying & implementing the successful incremental steps to correct your deteriorating financial performance, We have the people to assist you, or take total control. We can make you competitive with low-cost manufacturing countries. • Business Transformation : Making fundamental, profound changes in how your business is conducted in order to help cope with a shift in external and/or internal drivers; e.g. eroding profit margins, increasing cost competitiveness, changing customer expectations, challenging market landscape, global politics & economics, etc. • Factory Moves or Consolidations : Preparation & Management of your factory move or consolidation. Outsourcing, offshoring and onshoring analysis, planning & execution. We have never failed a client on making a seamless move while taking care of their customers. • Operational Due Diligence : assessment for a potential merger or acquisition. After our unique operational due diligence, our clients go into negotiations knowing more about the seller's company than the seller does. And in most cases, we will guarantee a ROI of 300% of our services. Our Capabilities / What We Do 6 Our Value Proposition Offerings Benefits Differentiators Proof Lean Transformations • Reduce inventory • Shorten lead-time • Increase productivity • Portfolio Management • Total Cost of Ownership • Business Process Management • Improved Financial Performance • End-to-End Supply chain Value stream Mapping • Routing-By-Walking Around • Pull & Replenishment vs. Push & Forecast • End-to-End Supply Chain Strategy & Optimization • Procurement & Supply Management Strategies • Triple-Play Analysis • Maturity Profiling • Activity Based Costing • Product Costing Framework • Productivity increase of 20- 40% • Increase inventory turns to 20-50 • Reduce set-up times by 50- 75% • Scrap reductions of 30-50% • Space-used reductions of 30-50% • Quality improvement of 50- 90% • Order-to-delivery lead time improvement of 50-80% • Improve cash flow 50-70% ROI of 300% Business Turnaround Business Transformations • Fundamental Changes in Business Processes • It's thinking--and acting--in a new way Factory Moves or Consolidations • Preparation & Management • Outsourcing, offshoring and onshoring analysis, planning & execution • Successful seamless moves while taking care of your customers Operational Due Diligence • Assessment for a potential merger or acquisition • Structured checklist and approach • Go into negotiations knowing more about the seller's company than the seller does.
- 4. 7 Change Orientation Status Quo Change Initiatives Radical $$ Business Transformation Business Turnaround Lean Transformation As the pendulum moves towards Radical, the higher the rewards ($). Our Approach 8
- 5. 9 Mobilization Visioning Assessment External • Customers • Competitors • Supply Landscape • Regulatory Internal • Value Stream Analysis • Waste Assessment (non-value added activities) • Operational Effectiveness • Information Technology Infrastructure ValidationGap Analysis ‘Quick Wins’ - Implement high benefit process improvements New Ways of Working Best Practice Databases Best Practice Databases We create a gap analysis of your current ways-of-working versus industry best- practices utilizing our data-driven, fact-based assessment approach ..… Transformation Approach We will address your “Pain-Points”, e.g. • Rising Operational Costs / Shrinking Margins • Rising Customer Expectations • Customer Service Challenges (On-Time-in-Full) • Declining Quality / Increasing Cost-of-Quality Value Stream Map-based Lean Tools & Methodologies 10 We will look at your overall Supply Chain but going into greater detail on one or two product lines. • Understand current business objectives, strategy, key performance indicators, performance trends, and ongoing initiatives • Develop total cost model, including headcount by function to operator level; identify significant overhead costs and their drivers • Understand product structure, part and process variety, and level of commonality • ABC classification of product mix by sales revenue • Identify one or two representative products for detailed Value Stream analysis • Understand actual costing of representative products Review entire supply chain at an overview level Overview Specific Level of Detail Scope Focus detailed analysis on a limited number of representative products We drill down on one or two products, lines, etc. Assessment Approach
- 6. 11 6-Step Approach Our 6-Step Approach to achieving Operational Excellence … 1. Mobilization: Mobilize team and resources as needed. 2. Assessment: After our initial discussion, we’ll establish the “scope” for the Assessment. An Assessment often includes External & Internal elements depending on YOUR pain-points! a. The basis for our Assessment will be the creation of a Value Stream Map. A VSM is a simple diagram of every step involved in the material, product and information flows needed to bring a product from order to delivery (end-to-end supply chain). A current-state map follows a product’s path from order to delivery to determine the current conditions, and will be the baseline for improvement. b. We’ll use a full array of Lean Six Sigma (LSS) tools & methodologies to fully assess the current conditions, i.e. current ways-of-working. A sample of LSS tools & methodologies include Value Stream Analysis, Waste Assessment (8 deadly Lean wastes), Inventory analysis (raw, work-in-process & finished goods), Stratification (A-B-C, etc.), Process Lead-Time analysis, Performance Indicators analysis, etc. c. The assessment can be extended to include your Customers with a Voice-of-Customer scheme and the creation of a House of Quality (a.k.a. Quality Functional Deployment). 3. Gap Analysis: Utilizing out knowledge and database of industry best practices plus Lean Concepts; we’ll establish a Gap Analysis of “current ways-of-working” verses best-practices and “operational excellence”. Operational Excellence is a philosophy of the workplace where problem-solving, teamwork, and leadership results in the ongoing improvement in an organization. The process involves focusing on the customers' needs, keeping the employees positive and empowered, and continually improving the current activities in the workplace. a. Where applicable, we’ll benchmark your operations verses your competitors and/or industry-leaders. 12 6-Step Approach continued Our 6-Step Approach to achieving Operational Excellence … 4. Visioning: Taking all the information obtained during the assessment and the gap-analysis steps will be used to create a Vision, i.e. a Future State VSM. A future state map deploys the opportunities for improvement identified in the current-state map to achieve a higher level of performance. During visioning, we’ll start to quantify the value of the vision. 4. Many Lean concepts will be under consideration at this step such as Waste Elimination, Production Cells, Pull / Replenishment, One-Piece/Small-Lot Flow, Inventory Rationalization, Single Minute Exchange Die, Time Traps & Line Balancing, Manufacturing Differentiation, Total Productive Maintenance, and Standardized Work. 5. Validation: Once a Future State VSM has been created, we must validate the benefits to be obtained. The most common validation method is to “Pilot” the proposed changes in a controlled working environment. 4. Additional validation methods include Design of Experiment (DoE), 3P (Production Preparation Process), etc. 6. New Ways-of-Working: The final step is to develop and execute a plan for replication & sustainment of the “new ways-of-working”.
- 7. An Alternative Approach: Build your Staff’s Skillset whilst Improving Operational & Transactional Performance 13 14 Program Benefits: • Development of Staff / Skill Retention • Base for a Continuous Improvement Culture • Improved Operational & Transactional Performance • Immediate ROI on Consulting Services We can train your staff on Lean Six Sigma (LSS) tools & methodologies, and concurrently support them on improvement projects; and culminate the program by certifying them as a LSS Green or Black Belt (dependent on program length). Project Benefits (examples) • Reduce Operating Costs • Reduced Process Lead- Times • Increase Revenue • Improve Administrative Efficiency & Productivity • Improve Operational Efficiency & Productivity Lean Six Sigma Training Improvement Projects Coaching & Mentoring $$$ Develop In-House Skills w/ Immediate ROI
- 8. 15 LSS Green / Black Belt Project Approach Green Belt Projects Value Stream Mapping (VSM) Session Brainstorm Improvement Opportunities Validate VSM / Gemba VSM Future State Prioritize / Benefit & Effort Value Stream Mapping Analysis Green & Black Belt Training Black Belt Projects Green & Black Belt Projects Launch Operational Excellence* Foundation Kaizen / Problem solving Training 5S / Workplace Management Standard Work Development *Structured continuous improvement. Training & Coaching Companies: • Global 100, 500 & 1000 • US Fortune 500 • Asian based manufacturers; public & private • Global service companies Industries: • Semiconductors • Electronics / Computers • Consumer Products • Fast Moving Consumer Goods • Medical Device • Oil & Gas • Distribution • Banking • Heavy Industries / Engineer0-to-Order • Lean Workshops : Introduce practical application of Lean concepts ‒ >10 workshops with more than 500 participants • Kaizen Leadership Training : practical application of Lean Six Sigma concepts ‒ >5 workshops with more than 150 participants • Problem Solving : effective use of PDCA and analytical tools ‒ >10 workshops with more than 200 participants • Supply Chain Best Practice Workshops : enterprise Lean & business process reengineering ‒ >5 workshops with more than 125 participants • Value Stream Mapping (VSM) sessions:: define Current State, identify Opportunities & map Future State ‒ >100 VSM sessions with more than 1,000 participants • Lean Six Sigma (LSS) training & certification ‒ White & Yellow LSS Belts : >500 trained ‒ Green Belts : >100 trained, coached & certified ‒ Black Belts : 14 trained, coached & certified • Coached / Championed >50 major DMAIC projects • Coached / Championed >500 rapid Kaizens projects • Facilitated >50 Work Outs session to identify process simplification & cost savings opportunities “After a 2-day workshop with Mr Raymond; our team was able to reduce the lead-time of a key product by 50%. Training was practical & fun. Highly recommend to any company needing rapid change.” - Director of Operations, a Malaysian manufacturer LSS Training & Coaching: Statement of Experience
- 9. One of Our Specialties: Business Transformation through Lean Transformation 17 Lean Principles 18 These principles are fundamental to cultivating a Lean culture in any industry … 1. Value - specify what creates value from the customer’s perspective − Specify what does or does not create value from the customer’s perspective 2. The value stream – identify all the steps along the process chain − Identify all the steps necessary to design, order & produce the product across the whole value stream to highlight non-value-adding waste 3. Flow - make the value process flow − Make those actions that create value flow without interruption, detours, backflows, waiting or scrap. 4. Pull - make only what is needed by the customer (short term response to the customer’s rate of demand). − Only make what is pulled by the customer. 5. Perfection - strive for perfection by continually attempting to produce exactly what the customer wants − Strive for perfection by continually removing successive layers of waste as they are uncovered
- 10. 19 T R I M W O O D 1 5 37 8 2 6 4 WASTE OVER-PRODUCTION Producing more than what is immediately needed RESOURCES Underutilized resources; e.g. people, space, etc. OVER-PROCESSING Inappropriate or excessively processing DEFECTS Doing the same job/task more than once INVENTORY Material / product/ information waiting to be processed MOTION Excessive or needless movement of people TRANSPORTATION Moving material/product from one place to another Delays caused by process-bottlenecks, shortages, approvals, downtime, etc.WAIT Lean Transformation: Identifying Waste Lean Transformation : Lean Building Blocks Continuous Elimination of Waste (Kaizens) Standards CultureFlow The Gemba Walk (Go See) Workplace Organization Teams / Engagement Training & Multi- Skilling Job Rotation Standardized Work Error Proofing Total Productive Maintenance Visual Workplace Standardized Material Mgmt. Rate/ Leveled Production Set Up Reduction Communication & Feedback Pull/Kanban Production Cells Takt Time Quality at the Source Flexible Capacity Small Batch / Lot Sizes 20 Synchronized Inputs & Outputs Uninterrupted Flow (product, material & information) Safety
- 11. Lean Transformation : Value Stream Mapping 21 20,000 pcs/mo Module=100 SUPPLIER DistributionAssembly 2Assembly 1Machine 1 Machine 2 •Raw castings •Daily schedule •Machine1d material •Daily schedule •Forgings, bolts, nuts, washers • Daily schedule •Assy 1, o-ring, bearing, snap ring • Daily schedule Receiving/Warehouse 2/Day 1/Week Customer 1000 pcs 5000 pcs 100 pcs 200 pcs I I I I I •Assy 2 •Daily schedule MACHINING & ASSEMBLY Forecast, 6 Month, Fax Order, Weekly (5-day), Fax MR P Forecast, 90/60/30 Day, Fax Order, Daily, Fax CUSTOMER SERVICE MR P PURCHASING MR P 100 pcs I 100 pcs I Work Orders, Daily Release, Paper 100 pcs 1, 1x8 hr shift 1, 1x8 hr shift 1, 1x8 hr shift 1, 1x8 hr shift 1, 1x8 hr shift 1, 1x8 hr shift x= X-Purc Parts C/O = 2 Min Uptime 95% Batch Size 500 P/T = 80 Sec y= Raw Casting x=X-Raw Casting C-Daily schedule C/O = 30 Min Uptime 95% Batch Size 100 P/T = 30 Sec x=X-Machine 1 material C-Daily schedule C/O = 60 Min Uptime 80% Batch Size 100 P/T = 45 Sec x=X-Machined part, bolts, nuts, washer, C-Daily schedule C/O = 5 Min Uptime 95% Batch Size 100 P/T = 60 Sec x=X-Assy 1, O-ring, bearing, snap ring, C-Daily schedule C/O = 10 Min Uptime 95% Batch Size 100 P/T = 50 Sec x=X-Assy 2, X-Packaging C-Daily schedule C/O = 10 Min Uptime 95% Batch Size 100 P/T = 90 Sec y=machined part y=machined part y=assy 1 y=assy 2 y=shipped order 20 sec 50 sec35 sec 40 sec 23.7 hours 92.1 hours 1.6 hours P/T= 145 sec 3 hours PLT=124 hrs80 sec + 1.8 hours 30 sec 60 sec45 sec 50 sec 90 sec Value Steam Mapping is a great tool for identifying Waste in your Current State, and projecting what your Future State should be. Lean Transformation : Approach 22 Value Stream Mapping will drive key Lean initiatives. Benefit & Effort Prioritization Value Stream Project Plan 20,000 pcs/mo Module=100 SUPPLIER DistributionAssembly 2Assembly 1Machine 1 Machine 2 •Raw castings •Daily schedule •Machine1d material •Daily schedule •Forgings, bolts, nuts, washers • Daily schedule •Assy 1, o-ring, bearing, snap ring • Daily schedule Receiving/Warehouse 2/ D a y 1/ W ee k Customer 100 0 pcs 500 0 pcs 100 pcs 200 pcs I I I I I •Assy 2 •Daily schedule MACHINING & ASSEMBLY Forecast, 6 Month, Fax Order, Weekly (5-day), Fax M R P Forecast, 90/60/30 Day, Fax Order, Daily, Fax CUSTOMER SERVICE M R P PURCHASING M R P 100 pcs I 100 pcs I Work Orders, Daily Release, Paper 100 pcs 1, 1x8 hr shift 1, 1x8 hr shift 1, 1x8 hr shift 1, 1x8 hr shift 1, 1x8 hr shift 1, 1x8 hr shift x= X-Purc Parts C/O = 2 Min Uptime 95% Batch Size 500 P/T = 80 Sec y= Raw Casting x=X-Raw Casting C-Daily schedule C/O = 30 Min Uptime 95% Batch Size 100 P/T = 30 Sec x=X-Machine 1 material C-Daily schedule C/O = 60 Min Uptime 80% Batch Size 100 P/T = 45 Sec x=X-Machined part, bolts, nuts, washer, C-Daily schedule C/O = 5 Min Uptime 95% Batch Size 100 P/T = 60 Sec x=X-Assy 1, O-ring, bearing, snap ring, C-Daily schedule C/O = 10 Min Uptime 95% Batch Size 100 P/T = 50 Sec x=X-Assy 2, X-Packaging C-Daily schedule C/O = 10 Min Uptime 95% Batch Size 100 P/T = 90 Sec y=machined part y=machined part y=assy 1 y=assy 2 y=shipped order 20 sec 50 sec 35 sec 40 sec 23.7 hours 92.1 hours 1.6 hours P/T= 145 sec 3 hou rs PLT=124 hrs 80 sec + 1.8 hours 30 sec 60 sec 45 sec 50 sec 90 sec
- 12. Business Turnaround: Lean Transformation Company: A Global 500 Japanese manufacturer of household appliances in Thailand What We Did: • Process flow modelling : identify & minimize non-value added activities • Process control and quality improvement : attack the root cause and establish process control to prevent defects at source. • Machine setup time improvement : utilized SMED • Manufacturing run strategy : categorize product group to build daily or weekly and optimise machine conversion • Bottleneck optimization: identified bottleneck operation and optimize loading sequencing of products to meet demand • Capacity and line balancing & resource allocation: to allocate machine and balance operational capacity per demand • Kanban implementation : synchronise production to actual demand Challenge Recognizing the major change imperative driving most manufacturing industries today – Global price reduction due to cost competition particularly from China manufacturing Solution: The company needed a business Turnaround to reduce operating cost by improving operational productivity and overall facility efficiency Results • Set-up Time Reductions of 97% in the painting dept. & 50% in metal fabrication & plastic molding • Improved Labor cost per set by 20% • Increased production capacity by 60% • Reduced overtime by US$107k • Reduced 59% of metal WIP inventory • Reduced 51% of Plastics WIP inventory • Reduced defects by 2 ~ 8% • Successfully implemented TPM Lean Transformation : Statement of Experience (selective example) Business Turnaround : Lean Transformation Company: An American Fortune 500 company’s semiconductor assembly & test facilities in Malaysia and Singapore What We Did (Major Initiatives): • Process flow remodel : identify non-value added activities and minimise them • Process control and quality improvement : get to the root cause and establish control to prevent defects • Machine setup reprocess : to parallelise activities which can be undertaken while machines are running, and so increase production flexibility • Run strategy : to categorise product group building daily and weekly to optimise machine conversion • Capacity , line balancing & resource allocation: to allocate machine and balance operational capacity per demand • Cell configuration and re-layout : to simplify product movement and minimise material handling • Kanban implementation : to control inventory and to synchronise production to actual demand • Traceability and Admin support: to minimise non value added admin support Challenge We needed to cut the total production cycle-time by 50%. Results • Reduce the total production’s cycle-time from 10-days to 2-days • Reduced the finished goods inventory from 30-days to 5-days • Achieve annualized savings of US$28-million Supply Chain Excellence : Statement of Experience (selective example)
- 13. Business Turnaround : Lean Transformation Company: A Global 100 electronics consumer goods manufacturing facility in Malaysia. Main product manufactured: TV components, fax/telephone units and misc. audio & visual components What We Did (Major Initiatives): • Redefined the business model and simplify different business processes for each factory into one generic flow • Redesigned planning to support daily make-to-order with material replenished to point of use by Visual Control System • Analyzed current production processes and restructured production around product family based cells; eliminated delay and storage within production cycle and identified potential set-up time reduction • Reorganized purchasing departments in different factory into a supply management team; designed supply strategies for each commodity group • Reducing number of suppliers and negotiated partnership with strategic suppliers • Ensured the redesigns are supported by their implementing ERP system Challenge To develop optimal New Product Introduction, Order Fulfillment and Supply Management processes, including defined process strategy, structure, activities, resources and infrastructure Results Order Fulfillment: • Indirect Labor (FTE) Reduction • Indirect Labor Cost Reduction: • Cycle Time Reduction: • Finished Goods Reduction: • WIP Reduction: Supply Management: • Raw Material Reduction: • Long Lead Time Item Purchase Lead Time Reduction: 24% 24% 60% 35% 63% 25% 97% Supply Chain Excellence : Statement of Experience (selective example) Business Transformation : Lean Manufacturing / Business Process Reengineering Company: A Global 100 electronics consumer goods manufacturing facility in Malaysia. Main product manufactured: Commercial & Residential Air Conditioners What I Did (Major Initiatives): • Redefined planning strategy to Build To Order (BTO) with a confirmed PO’s., and optimized inventory levels utilizing a statistical-based inventory model • Introduced Set Up Reduction and material replenishment system using kanban to achieve a more flexible manufacturing set up. • Redefined and implemented Quality system into Quality at Source in its entire manufacturing environment and extending to material suppliers. • Implemented differentiated supply management strategy by commodity • Integrate design activities with procurement in order to streamline parts Challenge To reduce cost and cycle time within the Manufacturing, Procurement and Planning areas, through the introduction of best practice, the standardization of processes, efficiency improvements and a reduction in inventory levels thru application of industry best practices. Results • Order Fulfillment Cycle Time Reduction: • Set up Time Reduction • Incoming Inspection Reduction : • Process Inspection Reduction : • Inventory Reduction : • Procurement headcount Reduction: 53% 73% 53% 40% 70% 40% Lean Transformation : Statement of Experience (selective example)
- 14. Business Turnaround Company: A Malaysian medical device manufacturer High volume – high mix manufacturing What We Did: • Value Stream Mapping of all manufacturing facilities’ end-to- end supply chain • Value Stream Mapping of all key transactional & administrative processes • Activity-based analysis of all headcount • Centralized planning & procurement • Coached rapid-change Kaizens to eliminate process waste • Implemented “supermarkets” to reduce WIP and Finished Goods Inventory Challenges • Margins have been eroded to <3% (competitors achieving 15~35%) • Negative cash flow requiring additional cash advancements from owner. Cash flow exceeded 180-days • Supplier refusing to deliver critical material due to lack of payment • Inventory levels exceeded 90-days for low-cost commodity products Results • Reduce average product lead-time • Reduced work-in-process inventory • Reduced raw material inventory • Reduced the number of Purchase Orders • Reduced production headcount • Cash flow improved • Increased margins to ………………… 70% 65% 66% 80% 20% 50% >10% Lean Transformation : Statement of Experience (selective example) Another of Our Specialties: Business Transformation through Supply Chain Excellence 28
- 15. 29 Business Transformation Example: Trends in Consumer Business forcing Supply Chain Management improvements External industry trends continue to drive the need for changes Supply Chain Excellence 30 Business Transformation The Supply Chain Management framework … … we’ll utilize this framework in association with Value Stream Mapping to identify improvement opportunities within your end-to-end supply chain.
- 16. Business Turnaround : Lean Transformation Company: Fortune 1000 manufacturer of Magnetic Disk Drive Heads – Semiconductor Technology with Wafer-die assembly - Thailand & Final assembly & test – Philippines What I Did: • Had three teams; US (wafer fab), Thailand & the Philippines; working concurrently to reduce the total order fulfilment time • Implemented cellular manufacturing in Thailand & the Philippines • Implemented Pull / Replenishment principles at all phases of the internal & external supply chain Challenge Customer was unsatisfied with product lead-time, and customer wanted supplier managed replenishment of inventory . Customer wanted to reduce their stock from 1- month to 3-days. Supply Chain Excellence : Statement of Experience (selective example) Supply Chain Optimization – Warehousing & Transportation 32 Client: Fortune Global 200 Fast Moving Consumer Goods manufacturer in Indonesia Objective: Optimize inventory levels whilst minimizing transportation and improving Customer Service from 80% to 90+% Challenges: • Indonesia ; an archipelago of 17,000 islands • Inventory was stored as Finished Goods at the Factory, Central Distribution Centers (2) & Regional Depots (10) to service 20+ sales offices • Inventory & transportation costs had to be optimized for over 20,000 Stock- Keeping-Units (SKUs) • Need a Manufacturing Run Strategy: for each SKU Solution: • Developed an Excel-based “Dynamic Inventory Model” was developed to analyze all possible scenarios to optimize the overall supply chain. • Manufacturing Run Strategy: Weekly, Bi-Weekly or Monthly production runs had to be established for each SKU Results: • Customer Service raised from 80% to 92%. • Inventory reduced by 45% • Transportation costs reduced by 30% Supply Chain Excellence : Statement of Experience (selective example)
- 17. Supply Chain Optimization – Regional Strategy Development 33 Supply Chain Excellence : Statement of Experience (selective example) Global Order Fulfillment Process Lead-time Reduction Company: An US Fortune 25 company’s largest manufacturing facility in Thailand. Manufacturer of medical devices and a healthcare service provider. What We Did: • In collaboration with the Customer, we conducted Value Stream Mapping (VSM) workshops in Europe & Asia. (1) Establishing the current state VSM as our baseline and then (2) developing a future state VSM. • After creating a consensus future-state VSM; a fully detailed implementation plan was launched Results • End-to-end order fulfillment lead-time was reduced by 68%, i.e. from 128-days to 87-days • “Frozen” order period was reduced from 1-month to 1-week. • Customer’s finished good inventory was reduced by ~60% without any increase in inventory on the supply-side or manufacturing site • Improved manufacturing process lead-times and added flexible manufacturing capacity • Achieved & maintain a customer service level (on-time-in-full) of >95% Challenges • Their major customer (40% of revenue), an European reseller/healthcare service company; wanted to reduce their overall order fulfillment lead-time, reduce the frozen order period and reduce their finished goods inventory Supply Chain Excellence : Statement of Experience (selective example)
- 18. Optimization of a Fragmented Supply Chain 35 Supply Chain Excellence : Statement of Experience (selective example) World Competition Consultants 36
- 19. 37 Why World Competition Consultants Get things done Focused resources Specialist expertise Project and change management Breakthrough thinking External perspective Innovation based on global exposure Ability to challenge accepted wisdom Credibility to gain commitment Independent and objective Transcend internal politics Experience: “Been there, Done that!” Our consultants are experienced industry professionals who provide leading edge thinking and practical skills. Access to global database of best practices ensures that our recommendations are state of the art. We have a toolkit of proven methodologies, including project and change management, which we use to guide implementations and minimize risk. Because we define success by quantitative performance measures, clients realize a return on their investment in consulting fees. Investment in Consultancy Fees …. … and we’ll guarantee a ROI of 300% within the first 12-months 37 38 Global Presence North America Over 300 consultants available in the United States and Canada Asia Over 25 consultants in China, India, Singapore, Indonesia, Thailand, the Philippines, Papua New Guinean, Malaysia and Israel Africa Nigeria. Europe And we recently expanded our business to Western Europe
- 20. 39 Roger G. Lewandowski For much more detail see our website: http://www.wcconsultants.com/ Chief Executive Officer A former president of all Carrier Canada operations President of Carrier Air Conditioning’s largest division Residential, Heating and Cooling. (One billion dollars in sales.) Experienced turnaround specialist Author of three books Member of the National Turnaround Association Thirty-five years of experience in management Graduate of General Motors Institute in Industrial Engineering. 40 Raymond Kelly President of International Operations / US West (& select other states) Internationally known Supply Chain Management consultant; an expert in supply chain optimization 37-years of experience including over 25-years experience deploying Lean Six Sigma concepts, tools and methodologies Certified Lean Sensei & Lean Six Sigma Master Black Belt Held numerous Senior Management positions for a Global Fortune 500 telecommunications manufacturer including expatriate positions in China, Malaysia and the United Kingdom. International consultancy experience with industry leaders; Deloitte Consulting, PricewaterhouseCoopers and Coopers & Lybrand Experience working with over 50 clients in 23 countries across a diverse range of industries Excellent trainer in Lean Six Sigma and Supply Chain / Operational Best Practices. Over 1,000 participants trained worldwide. Graduate from North Carolina State University with a Bachelor of Science in Engineering
- 21. 41 Partial list of WCC’s Clients Alliance Laundry Systems (Speed Queen) Amana Heating & Air Conditioning Arnold Air Force Base Carrier Corporation Mexico Carrier Corporation U.S.A. Coldmatic Coldstream Clark Door The Daily Times DESA International Frymaster (Manitowoc Foodservice Division) Heatcraft, Inc. iDL Merchandising Solutions IdleAire Technologies Corp. IMO Pump International Comfort Products John Deere Corp. K-25 in Oak Ridge (East Tennessee Technology Park) Krack Corporation Kysor Warren Lennox International Manitowoc Ice Division Manitowoc Crane GroupMatthews Industries (Decatur, AL) Matthews International (Pittsburgh, PA) MSI Mold Builders NesbittAire Inc. Norwood Promotional Products Remington Arms Company Snap-On Tools Tindall Tyler Refrigeration Wabash Engineering Corp. York Air Conditioning The York Group 42 Testimonials "I would like to thank you and your team for assisting in the turnaround of Inter-City Products. The work done in the areas of... — quality and systems — value engineering — indirect labor analysis — general manufacturing management ...have proven to be effective in help us achieve our goals. I can point to savings and improvements that will add at least $5 million to our bottom line." - W. Michael Clevy, President and CEO of Inter-City Products, Heating and Air Conditioning “WCC came in, worked with people, and turned the place around. WCC was especially skilled at working with and developing the plant personnel. Both plants intend to bring WCC back in for further work. WCC is bringing out the best in our people. I am sold on WCC." - L. Henderson Feagin, President and General Manager of Hussman/Krack (A Whitman Company) “WCC was there when my team first set an all-time record on R.O.S. and R.O.A. measurements. WCC, with all their talents and backgrounds, have been invaluable to myself and my team in all phases of manufacturing, marketing and management." - Dr. Roger A. Duarte, President of Carrier Mexico
- 22. Raymond Kelly’s Additional Statements of Experience (selective examples) 43 Partial List of Clients & Industries 44 Clients’ Industries: • Semiconductor • Electronics / High-Tech • Automotive • Fast Moving Consumer Goods / Consumer Packaged Goods • Medical Devices • Pharmaceuticals • Consumer Goods • General Manufacturing • Oil & Gas • Government • Banking • Logistics & Distribution • Heavy Industry / Design-to- Order • Research & Development • Telecommunications • Advocacy Association • Venture Capitalists
- 23. Lean Transformation: Maximize Revenues Company Global 10, Big 4 Oil & Gas company’s Upstream operations in Brunei What I Did: • Facilitated Value Stream Mapping workshops to identify waste within their processes and identify opportunities for improvement. • Trained & coached staff in the concepts & principles of Lean • Facilitated Kaizen & Work-Outs to identify and implement rapid changes Challenge With oil prices at an all time high, the company wanted to reduce the lead-time from a well was drilled until first oil was pumped. Additional, they wanted to increase overall productivity. Results • Reduced the lead-time from Well Completion-to-First Oil from 69- days to 3-days ‒ Implemented critical material supermarket ‒ Implemented “kits” of material needed offshore and process to replenish “kits” ‒ Created Standard Work for Well Tie-In staff • Reduced total inventory levels by 50% • Developed & implemented a Staged-gate process for new Well designs. • Achieved US$40M in advanced revenue & operating cost reduction “Raymond Kelly was contracted for the position of Lean / Six Sigma Process Optimization Practitioner., he successfully delivered a succession of opportunities across the business. Additionally he coached our staff in process optimization tools.” - Business Improvement Manager Lean: Kanban System Implementation Company; Siemens, Global 50 Company’ - Energy Division’s manufacturing in Wuxi, China. Solution Synchronize production by using a Kanban system to decouple the unbalanced upstream operations from the bottleneck (fusion furnace) What I Did: • Balanced upstream stream to improve product flow • Created Kanbans in front of each machine • Implemented Kanban flow racks of WIP • Scheduled product on via Kanban Board / Production Kanban cards Challenge This was a high-mix, medium-volume machine job shop. There was a bottleneck capital-intensive fusion furnace that needed to fully be utilized; and that was dependent on the right volume of product being ready at precisely the right time in the right mix. The upstream operations, to the furnace, were precision machining operations with limited capacity, so synchronization was critical. Results The clients’ words: “Our Production and Logistics Department was supported by Mr. Raymond Kelly. Thanks to the well-founded knowledge and long-standing practical experience of Mr Kelly, we succeeded to develop and implement a fine balanced KANBAN system that corresponds to both the technical conditions and the logistical needs. The economical benefits and process improvements expected by us were fully achieved. - Franz Stevens, General Manager / Shen Xiaowen, Logistic Manager Siemens Vacuum Interrupters (Wuxi) Ltd
- 24. Operational Due Diligency & Business Turnaround Client: Malaysian Ministry of Finance What We Did: The Ministry of Finance (MoF) was concerned that the financial stability of one of its large investments in high technology manufacturing, and thereby established a terms of reference for our project as such: • Review the current status of corporate governance and risk management of the company, identify shortcomings and recommend improvements. • Assess the management of the company in terms of structure, human resource policies, qualification and competence of incumbents and recommend improvements. • Review the procurement, production and selling / marketing processes, identify inefficiencies and shortcomings, if any, and make recommendations on improvements. • Evaluate whether the assets that are in place are over-priced within the context of the international market., and if so, what were the factors that resulted in this over-pricing Challenge As the majority shareholder in a pure-play wafer foundry, the Ministry of Finance wanted us to confirm that the Fab’s business plan was feasible and assess the risk of future strategic investments. Define a roadmap for improving operational productivity and ensure the company’s competitiveness What We Did: • We conducted a full operational assessment of the designated manufacturing entity including sales & customer service operations abroad. • The final operations assessment document was fully validated by the entire senior management staff of the manufacturing facility, and improvements opportunities identified were fully supported by the staff. Benefits from operational improvement initiatives were estimated to be US$45-million/ annually. • We presented of our assessment to the Minister of Finance, and a final summary report was complied by the MoF and presented to the Prime Minister. Lean Supply Chain Transformation : Order Fulfilment Process Reengineering Company: Global 50 company's Semiconductor Product Group What I Did: • Integrated a fragmented global supply chain with very long cycle times: • value added in3 separate factories • average cycle time of 258 days • cumulative yield of 47% • Implemented iterative planning by functions in weekly buckets • Addressed to issues of an indecisive, inflexible organization Results • We reengineered the Order Fulfillment Process to reduce the overall lead-time from 258-days to 26-days • Consolidated daily market demand drives Assembly and Test; all other activities replenish based on pull signal • All demand with lead times exceeding one week s manufactured to order • Die bank is the only decoupling point, buffering fab cycle time • Products are shipped daily by air freight, 3 days standard anywhere in the world • Outbound logistics, including vendor managed inventory warehousing is fully outsourced Challenge The client’s goal was to be recognized as a Global Top 10 supplier of semiconductor within 5- years.
- 25. Design for Lean Six-Sigma (DFLSS) Company: A Global 100 electronics consumer goods manufacturer with a R&D facility in Malaysia. What We Did: • Trained team on Voice-of-Customer (VoC) techniques. Coached team through multiple successful execution VoC field exercises • Trained & facilitated through “Reverse Engineering” of leading competitor units • Trained & coached team on the Best Practices for New Product Development • Trained & coached >50 staff on the tools & methodologies of DFSS including Qualify Functional Deployment., Value Stream Mapping, Lean concepts, Statistical Tolerance. Cause & Effect Matrix, Manufacturing Capability Assessment, Benchmarking, Design of Experiments, DMAIC, etc. • Implemented a Stage-gate New Product Development process Challenge Lead-time to make major product changes took 1-year. Product changes made by “perceived” market desire. Additionally, losing major market share to Chinese manufacturers & don’t understand reasons Results • Reduce the new product introduction process lead-time from >1- year to <90-days • Standardize hardware, etc. and introduced “modular” components. Reduced component/hardware complexity by 70%. • Reduced manufacturing cost by 35% Business Transformation & ERP Implementation : Lean Manufacturing Company: A Top 10 global automobile and motorcycle manufacturer’s facility in Indonesia. What We Did: • First task was to create a standardized Bill-of-Materials and part nomenclature structure across all models of trucks, cars & motorcycles • Assessment and analysis of manufacturing planning & scheduling processes & activities. • Constructed a gap analysis of current ways-of-working and the chosen ERP system’s capabilities. Challenges • Client wanted to implement an ERP system across all divisions of a multisite fully vertically integrated manufacturing conglomerate • Needed to synchronize the manufacturing of an extensive & diversified array of components to the final assembly. Components included molded plastic parts, metal fabrication, engine assembly, transmission assembly, outsourced assemblies, etc. Results • New “Lean” planning & scheduling processes were implemented. • Kanban system implemented to synchronize component production with final assembly • Waste was minimized throughout all operations • ERP system was successfully implemented and projected savings achieved : >US$2-million/year • Processes were aligned to accommodate implementation of a new automobile platform to serve their total Asian market
- 26. Business Transformation & ERP Implementation : Lean Manufacturing Company: A Global 100 manufacturers of computers & peripherals including external drives, printers, audio/video devices, etc. This was a multisite operations in Singapore which supplier product worldwide. What We Did: • Conducted a Lean assessment of manufacturing facilities and all key operational & transactional processes • Created a overall future state Value Stream Map to align process engineering and ERP functionality • Trained multi-levels of staff in Lean tolls & methodologies • Coached client’s staff in the execution of a multiple-layers of improvement projects Results • Exceeded achieving the overall cost reduction goal of $5-million • Simplified all key operational & transactional processes • Supported the re-laying out of key faculties and/or assembly lines to minimize waste • Facilitated the consolidations of operations as needed • Fully implemented the chosen ERP system Challenges • Client wanted to implement an ERP system across all manufacturing sites with linkage to global Sales offices • Client wanted to reengineer all manufacturing processes and achieve over $5-million in annualized savings Re-engineering of Customer Packaging Configuration / Design for Six Sigma & Lean Manufacturing Company: An US Fortune 25 company’s largest manufacturing facility in Thailand. Manufacturer of medical devices and a healthcare service provider. What We Did: • I facilitated a multi-function project across three continents that included extensive Voice-of-Customer surveys. • Constructed a Quality Functional Deployment matrix to capture, evaluate and prioritize requirements from global companies. • Ran a 3P (Production Preparation Process) program to evaluate new packaging materials, packing configurations, artwork changes, etc.Challenges • Wanted to improve the environmental attributes of their current packaging configuration; which would result in a marketing advantage and reduce operational costs Results • Reduced the overall packaging material of key products by >40% • Reduced the customers’ onsite refuse by >38% • Achieved >$1-million in annualized operating cost (material * labor) • Was the basis of a solid marketing campaign focusing on the new sustainable environmental friendlily packaging scheme
- 27. Manufacturing & Supply Chain Strategies / Market & Competitiveness Analysis • For Global Big 4 Oil & gas company, I conducted a three country (China, India & Vietnam) analysis of their sheet metal manufacturing capabilities, their supply landscape and cost structure. I completed on-site evaluations of short-listed manufacturing candidates and submitted a detail final report to their UK HQ. • For a Global 2000 German-based semiconductor manufacturer. I led a team to analyze their future expansion plans into low-cost regions, Eastern Europe & East Asia. I developed a dynamic cost model to consider all cost variables and manufacturing scenarios; i.e. build a new factory or outsource product. End result; I, personally, was able to introduce them to a strategic partner in China. • For a Philippine association of Semiconductor & Electronics manufacturers (consisting of MNCs such as Intel, Texas Instruments, Analog Devices, Fairchild, Lexmark, amongst others); I conducted a comprehensive analysis of the Philippines’ competitiveness & capabilities verses their geographic rivals; China, Malaysia and Singapore. I was the association’s advocate in seeking changes from the Philippines’ Department of Trade & Industry and members of the President’s cabinet. • For a medium-size privately owned Filipino investment company, I conducted a market –entry assessment of the Electronics Manufacturing Services market . Final report looked at the potential serviceable market, industry sectors’ requirements, cost structure, overall feasibility & risk analysis, etc. Manufacturing Strategies • For a Fortune 50 American company’s manufacturing facility in Thailand, I researched & developed a comprehensive Business Continuity Plan looking at supply & logistics contingencies and self- manufacturing / outsourcing opportunities. The Business Continuity Plan was complemented by an analysis of Thailand’s natural disaster and political stability risks. • For Fortune 50 American company, I led a make-verses-buy/portfolio-rationalization analogy of their most strategic & profitable product lines. The comprehensive study looked at Intellectual Property concerns, manufacturing capabilities of potential suppliers/manufacturers and impact on financials (deleveraging of assets, tax implications, severance impact, total cost, etc.) demand verses internal/external capacities, and overall benefits / risks / barriers. • For a Global 2000 telecommunication manufacturer, I conducted and managed the execution of global manufacturing rationalization projects resulting in the shutting-down & consolidation of three manufacturing sites, the outsourcing of several product divisions and the strategic start-up of facilities in Malaysia, Thailand & China. Additionally, we rationalized our key global supplier strategy; localizing suppliers where needed and centralizing procurement / sourcing activities where possible.
- 28. Still Skeptical????? Let’s Get Started with a Free Assessment 55 56 Free Assessment The assessment would be completed within 1-day and you would receive an assessment score and an assessment report of our findings & observations within a week. The Assessment would be focused on identifying Lean Waste opportunities within your operations.
- 29. 57 Free Assessment Benefits of the Assessment to you …….. 1. Gives you a quick assessment of the efficiency & effectiveness of your operations. An unbiased assessment conducted by a seasoned expert in operational excellence. 2. Gives you a baseline for improvement opportunities. 3. Quick Wins! Our assessments most often results in a couple quick wins that can be implemented quickly and get you immediate rewards. 4. Allows us to mutually identify & quantify improvement opportunities. 5. No Obligations! You will not be obligated to proceed further with World Competition Consultant BUT we are very confident that we will show you the benefits in further engagement with us. But if you decide not to further proceed the identified opportunities in collaboration with WCC; you’ll at least have a baseline for your internal performance improvement initiatives.