CONTINUOUS IMPROVEMENT PROGRAM Lean Manufacturing

Our company continues to grow at 15% to 20% each year. GROWING PAINS

OUR CUSTOMERS WILL SAY “Hasta La vista baby !!”

Our inventory in the stock room grows. $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

How do we grow. How do we make the right product on time How do we grow ? How do we make the right product on time ? How do we lower our stock room inventory ? How do we maintain a good quality product ? ?

We could hire more people and buy more machines. This would cost us $$$$ We could raise the price of our products. Currently our customers are asking us to REDUCE the price of our products!

BEFORE WE DO ANYTHING ELSE We need to become more efficient in our manufacturing. AND We need to find waste in our process and cut it out.

> Get all of the needed parts to Assembly at the right time. GOALS > Produce more product using our current resources. > Lower our stock room inventory. > Accurately forecast exactly how long it takes to make our products and ship them on time. > Get all of the needed parts to Assembly at the right time.

What is LEAN A systematic approach to identifying and eliminating waste through continuous improvement in pursuit of perfection. Striving to do more with less, and do it consistently. Work Smarter Not Harder

THE LEAN FORMULA TEAMWORK OBSERVE IDEAS COMMUNICATION CULTURE FORM A TEAM OF PEOPLE, THE PEOPLE THAT ACTUALLY DO THE WORK OBSERVE ANALYZE THE CURRENT SITUATION IDEAS THE TEAM DEVELOPS IDEAS ON HOW TO ELIMINATE WASTE COMMUNICATION MAKE SURE EVERYONE KNOWS THE GOALS, THE CHANGES BEING MADE, THE SUCCESSES, AND THE FAILURES CULTURE CREATE A CONTINOUS IMPROVEMENT CULTURE. ALWAYS CONSIDER NEW IDEAS

8 Forms of Waste Types of Waste DEFECTS WAITING EXCESS MOTION PROCESSING EXCESS MOTION INVENTORY TRANSPORTATION OVER- PRODUCTION Repair or Rework. Any wasted motion to pick up parts or stack parts. Also wasted walking. Transporting parts, or finished goods into or out of storage, or between processes. Producing more than is needed before it is needed. Maintaining excess inventory of parts in process, or finished goods. Doing more work than is necessary. Any non-work time waiting for tools, supplies, parts, etc.. UNDERUTILIZED PEOPLE Waiting for more Work to do.

VALUE STREAM MAP We the operations. We We the operations. FINDING WASTE

LEAN TOOL BOX

SHINE, SET RULES, SUSTAIN. TOOLS 5S SORT, SET IN ORDER, SHINE, SET RULES, SUSTAIN. STANDARDIZED WORK PRACTICES VISUAL CONTROLS TEAMS PLANT LAYOUT BATCH REDUCTION QUICK CHANGEOVER POINT OF USER STORAGE QUALITY AT THE SOURCE PRODUCTION CELL SUPERMARKET FLOW PULL SYSTEM TOTAL PRODUCTIVE MAINTENANCE

Kaizen Kaizen Event The definition of “Kaizen” has been Americanized to mean "Continual Improvement." A closer definition of the Japanese meaning of Kaizen is "to take apart and put back together in a better way."

COMMUNICATION ISOLATION SECRECY “Do you have any ideas ?” “Here’s what we are doing” “What problems Can we solve ?” COMMUNICATION “Here’s where We are going” “How can we make this better ?”