1. Dr. Joan Burtner1 Introduction to the Lean Enterprise as a Quality Improvement Initiative Presented By: Dr. Joan A. Burtner Industrial and Systems Engineering Mercer University School of Engineering Macon, GA

2. Dr. Joan BurtnerISE 428 Quality EngineeringSlide 2 Introduction  Background on the Evolution of Lean  Lean Principles  Highlights of Implementation of Lean Practices at Rheem Manufacturing Co.- Milledgeville, GA

3. Dr. Joan BurtnerISE 428 Quality EngineeringSlide 3 Evolution of Lean Manufacturing  Total Quality Management  Toyota Production System  Six Sigma Process Improvement  Theory of Constraints  Value Stream Mapping  Womack and Jones - Lean Thinking  Rother and Shook - Learning to See

4. Dr. Joan BurtnerISE 428 Quality EngineeringSlide 4 Continuous Improvement Process 1. Clarify improvement needs (objectives) 2. Observe operation(s) through your own eyes 3. Identify problems based on observations 4. Resolve problems (kaizen) 5. New ideas become new standard operating procedure 6. Maintain new methods 7. Continuously repeat steps 1 through 6

5. Dr. Joan BurtnerISE 428 Quality EngineeringSlide 5 Wasteful Practices  Waiting  Transportation  Overproduction  Processing  Inventory  Motion  Defective Products

6. Dr. Joan BurtnerISE 428 Quality EngineeringSlide 6 Lean Metrics (Quantitative)  Lead-times  Inventory  Inventory Turns  Work In Process  Workable Floor Space  Efficiency  Cycle Time

7. Dr. Joan BurtnerISE 428 Quality EngineeringSlide 7 Building Blocks of a World Class Company One – Piece Work Flow Work Balancing Quality Improvements TPM 5’s Kanbans Cellular Layout Poka Yoke SMED VisualsWork Teams

8. Dr. Joan BurtnerISE 428 Quality EngineeringSlide 8 Introduction to the 5S’s SEIRI (SIMPLIFY) SIMPLIFY MEANS CLEARLY DISTINGUISHING BETWEEN WHAT IS NEEDED AND KEPT AND WHAT IS UNNEEDED AND THROWN OUT SEITON (STRAIGHTEN) STRAIGHTEN MEANS ORGANIZING THE WAY WE KEEP NECESSARY THINGS, MAKING IT EASIER TO FIND AND USE THEM SEISCO (SCRUB) SCRUB MEANS KEEPING THE FLOORS SWEPT, MACHINES AND FURNITURE CLEAN, AND ALL AREAS NEAT AND TIDY SEIKETSU (STABILIZE) STABILIZE MEANS MAINTAINING AND IMPROVING THE STANDARDS OF THE FIRST THREE S’S SHITSUKE (SUSTAIN) SUSTAIN MEANS ACHIEVING THE DISCIPLINE OR HABIT OF PROPERLY MAINTAINING THE CORRECT 5S PROCEDURES

9. Dr. Joan BurtnerISE 428 Quality EngineeringSlide 9 Typical Improvement Projects  Time studies  Line Balances  Creating work cells  Housekeeping (5 S’s)  Visual Control

10. Dr. Joan BurtnerISE 428 Quality EngineeringSlide 10 General Guidelines for Visual Control at Rheem  Work instructions (S.O.P.’S)  Quality instructions  Safety reminders  Clearly marked part delivery locations  Tool boards (where needed)  Production boards (where needed)  Layouts Work Stations Should Include :

11. Dr. Joan BurtnerISE 428 Quality EngineeringSlide 11 Implementation of Visual Control at Rheem  Spring and Summer 2003  Kaizen and 5 S All Assembly Lines  Created Zoned Housekeeping Layouts for All Major Production Areas  Designated Part Delivery and Storage Locations  Placed Production and Quality Status Boards  Began Drafting Standard Operating Procedures and Safety Reminders for All Work Stations

12. Dr. Joan BurtnerISE 428 Quality EngineeringSlide 12 Kaizen of an Assembly Line 1 BeforeAfter

13. Dr. Joan BurtnerISE 428 Quality EngineeringSlide 13 Kaizen of an Assembly Line 2 BeforeAfter

14. Dr. Joan BurtnerISE 428 Quality EngineeringSlide 14 Using Work Teams at Rheem  Cross-functional work teams for solving problems  Composition of Work Teams  Upper management  Supervisors  Co-op Students  Engineers  Assembly Line Workers

15. Dr. Joan BurtnerISE 428 Quality EngineeringSlide 15 CONTINOUS IMPROVEMENT TOOLS FOR BALANCING WORK  Takt Time  Available Daily Work Time  Time Observation  Standard Work Flow Diagrams  Cellular Layout  Work Distribution Sheet

16. Dr. Joan BurtnerISE 428 Quality EngineeringSlide 16 Time Observation  Observe a process or machine  Enter each task component onto a form  Note exceptions or non-repeating tasks  Calculate the average cycle time for each task  Add all average element times to find the cycle time of the total process

17. Dr. Joan BurtnerISE 428 Quality EngineeringSlide 17 Standard Work Flow Diagram  Used to help identify the flow of the operation(s) you are observing  Used as a layout for developing an improved process  An excellent tool to use to develop standard work procedures

18. Dr. Joan BurtnerISE 428 Quality EngineeringSlide 18 Cellular Layouts  The arrangement of manufacturing work cells to allow for a flowing process  With this concept, work can performed without the need for large inventory batches  The parts enter the beginning of the cell as raw materials and exit the cell as completed units

19. Dr. Joan BurtnerISE 428 Quality EngineeringSlide 19 Transition to Lean Six Sigma  Total Quality Management  Toyota Production System  Six Sigma Process Improvement  Theory of Constraints  Value Stream Mapping  Womack and Jones - Lean Thinking  Rother and Shook - Learning to See

20. Dr. Joan BurtnerISE 428 Quality EngineeringSlide 20 Lean Six Sigma  “Lean Six Sigma is a methodology that maximizes shareholder value by achieving the fastest rate of improvement in customer satisfaction, cost, quality, process speed, and invested capital”.  (Lean Six Sigma, Michael George, p. 13)

21. Dr. Joan BurtnerISE 428 Quality EngineeringSlide 21 Acknowlegements  Thanks to Laura Brown for her work on this lean initiative at Rheem and her contribution to the slide presentation.  Thanks also to the other employees (both full-timers and co-op students) at Rheem who contributed to this project.  Finally, thanks to Clyde Ingram for granting permission for Mercer to use Rheem training materials and photos.