1. freeleansite.com The Lean Enterprise Why Change ? Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement Training

2. freeleansite.com The purpose of the Key Concepts module is to recognize a need to change. PurposePurpose

3. freeleansite.com The purpose of the Key Concepts module is to recognize a need to change. Also, to allow you to become familiar with some of the basic principles of Lean and basic improvement methods behind Process Analysis. PurposePurpose

4. freeleansite.com The purpose of the Key Concepts module is to recognize a need to change. Process Analysis is the foundation toward achieving Process Excellence. Also, to allow you to become familiar with some of the basic principles of Lean and basic improvement methods behind Process Analysis. PurposePurpose

5. freeleansite.com History of Manufacturing  Made to customer spec  Single piece mfg… each product unique  Variable quality  Little inventory  High cost … made for the rich CraftCraft   Interchangeable parts – Whitney   Division of labor – Taylor   Assembly lines – Ford   Labor strife Mass Production   High variety   Small batch sizes   PPM quality   Engaged workforce The “Lean” Enterprise

6. freeleansite.com Why Change ? A need for change is usually characterized by: – Quality is a “Q.A.” department responsibility – Large production lots – Large centralized stores – Customer dissatisfaction – Enormous part and process variation – Set-up measured in hours instead of minutes – Order entry times measured other than in minutes – Product margins eroded by increasing operating costs – Ever-increasing competitive pressures

7. freeleansite.com Why Change ? Need for change is a STRATEGIC ISSUE which any and every Manufacturer must address: – Quality - How to improve it – Cost - How to control it – On-time Delivery - How to ensure it Failure to improve in all three areas means a loss of competitiveness in today’s global marketplace.

8. freeleansite.com Why Change ? “Lean Linking” is … Forward Thinking !

9. freeleansite.com Why Change ? “Lean Linking” is … Forward Thinking ! x

10. freeleansite.com Evolutionary vs. Revolutionary Change  Having a forward looking perspective on continuous improvement is a requirement of the competitive marketplace and is the first step in becoming world- class.  DO NOT set incremental improvement goals over previous performance, rather - Think of where we need to be: - Continually declining costs - Zero defects - Minimal inventories - Fully satisfied customers

11. freeleansite.com What can we expect with Lean Thinking? (over 5 years)  Defects reduced by 20% per year  Delivery Lead Times reduced by more than 75%  On Time Delivery improved to 99+%  Productivity (sales per employee) increases of 15-25% per year  Inventory (working capital) reductions of more than 75%  Return on Assets improvement of 100%+

12. freeleansite.com Analyzing and Improving Processes   An integrated approach to utilizing Capital, Materials, and Human resources to produce just what is needed, when it is needed. In the amount needed with minimum Materials, Equipment, Labor and Space. A Lean Definition   Identify and eliminate waste (MUDA). Overriding Principle What’s in a Name...   Toyota Production System, J.I.T., Lean Manufacturing, Demand Flow Technology, Kaizen, is really Process Analysis !

13. freeleansite.com Building Blocks of The Lean Enterprise “Continuous Improvement” TeamworkRewards / RecognitionTraining

14. freeleansite.com “Continuous Improvement” Value Stream Mapping TeamworkRewards / RecognitionTraining Building Blocks of The Lean Enterprise

15. freeleansite.com Quick Changeover Standard WorkBatch ReductionLayout Mistake Proofing 5S SystemProjectsVisual Management POU Cellular / FlowPull / KanbanTPM “Continuous Improvement” Value Stream Mapping TeamworkRewards / RecognitionTraining Building Blocks of The Lean Enterprise

16. freeleansite.com An Operational Excellence Mission Statement Develop the ability: To recognize and identify waste To have to courage to call it waste To have the desire to eliminate it Eliminate the waste Truly understand that waste – Raises costs – Produces no corresponding benefit – Threatens all of our jobs

17. freeleansite.com The Lean Enterprise is a Strategy … … for turning manufacturing and business processes into competitive weapons. Producing what is needed, when it is needed, with a minimum amount of needed, with a minimum amount of materials, equipment, labor and space. materials, equipment, labor and space. “Prime Directive” - to continually seek out and eliminate waste and wasteful practices.

18. freeleansite.com The Lean Enterprise is a Strategy …

19. freeleansite.com The Lean Enterprise is a Strategy … … with these 4 Main Goals: #1) IMPROVE QUALITY #2) ELIMINATE WASTE #3) REDUCE LEAD TIME #4) REDUCE TOTAL COSTS With an overriding principle: to continually seek out and eliminate unsafe operating conditions and practices in every aspect of our Business and every process within our Operations and to constantly, and consistently, enhance Health/Welfare, Safety and Environmental concerns and issues.

20. freeleansite.com With a well-planned implementation, overall expected RESULTS may include a … (within 12 months) –35% to 50% reduction in lost time/ safety-related incidents and accidents –15% to 30% decrease in scrap and rework –25% to 40% reduction in total cycle time The Promise of Lean

21. freeleansite.com Defining Project Criteria - Breakout (Optional) This breakout will give you the opportunity to think about change… Each team is asked to brainstorm a list of criteria for a good KAIZEN (Process Analysis) project. Something you need to change. These criteria could include Customer complaints, company culture issues, length of time to complete, an area of Lean focus or anything else that the team feels is an important criteria to consider in Process Analysis type project selection. The team will have 20 minutes to brainstorm criteria and then we will discuss the results.

22. freeleansite.com The Lean Enterprise Why Change ? Lean Acceleration Continuous Improvement Training Lean Acceleration Continuous Improvement Training