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Welcome to ACME Corporation!

Welcome to ACME Corporation!. Lean 100: An Introduction to Lean Thinking Month 200X. Jay Watson Lean Advocate. Strategy. The company's business strategy is based on four principles: clear market focus, product line breadth, technical excellence and cost efficiency.

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Welcome to ACME Corporation!

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  1. Welcometo ACME Corporation!

  2. Lean 100: An Introduction to Lean ThinkingMonth 200X

  3. Jay WatsonLean Advocate

  4. Strategy The company's business strategy is based on four principles: clear market focus, product line breadth, technical excellence and cost efficiency. First, we focus our business on customers whose applications can be best served by smaller space and rocket systems, which have grown to be an important part of the $100 billion global space industry. Second, we develop and manufacture a complete set of advanced lightweight satellites and comparable launch vehicles that are responsive to our customers' needs. Third, we emphasize creative yet thorough design and engineering along with meticulous purchasing, production, and testing, to assure the highest safety and reliability for our space products. And finally, we rely on a strong company culture and disciplined management systems that stress cost consciousness and efficient use of resources. - sample - Adding Value in everything we do …

  5. Credo SpaceCo is committed to providing High-Reliability Space and Defense Systems to Our Customers. We will achieve this through: • Maintaining a highly skilled and motivated team. • Establishing and reviewing Product Quality Metrics. • Continuously Evaluating and Improving our Processes. • Endeavoring to meet and exceed Our Customer’s requirements and expectations. - sample -

  6. Deployment Mission: “Implement Lean Enterprise across all SpaceCo divisions using - • comprehensive training • standardized rewards and recognition • teamwork … so that Waste and Cost are reduced and Quality, Profit and Customer Satisfaction are increased.” Vision: “A Corporate Culture where Continuous Improvement is a part of every Employee’s workday.” - sample -

  7. History of Lean Thinking People Product Work Environment

  8. Reduced Lead Time “One of the most noteworthy accomplishments in keeping the price of Ford products low is the gradual shortening of the production cycle. The longer an article is in the process of manufacture and the more it is moved about, the greater is its ultimate cost.” — Henry Ford,

  9. Reduced Lead Time “One of the most noteworthy accomplishments in keeping the price of Ford products low is the gradual shortening of the production cycle. The longer an article is in the process of manufacture and the more it is moved about, the greater is its ultimate cost.” — Henry Ford, 1926

  10. Lean Is Market Driven Every morning in Africa, a gazelle wakes up. It knows it must run faster than the fastest lion or it will be killed. Every morning a lion wakes up. It knows it must outrun the slowest gazelle or it will starve to death. It doesn’t matter whether you are a lion or a gazelle — when the sun comes up, you had better be running.

  11. Defining Lean Lean is: “A systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection.” — The MEP Lean Network

  12. Defining Lean Thinking Lean Thinking is: “A way to specify value, line-up value creating actions in the best sequence, conduct these activities without interruption whenever someone requests them, and perform them more and more effectively.” — Lean Thinking Womack and Jones

  13. What Is Waste? Waste is “anything other than the minimumamount ofequipment, materials,parts, space,and worker’s time which are absolutely essential toadd valueto the product.” ~ Shoichiro Toyoda President, Toyota Motors (#1 car company in the world… w/ sales surpassing GM 4/25/2007)

  14. Let’s have some fun ! (First trial) Demonstration

  15. Value-Added: Any activity – done right the first time - that increases the market, form, or function of the product or service. (These are things the customer is willing to pay for.) Non-Value-Added: Any activity that does not add market form or function or is not necessary. (These activities should be eliminated, simplified, reduced, or integrated.) Definition of Value-Added Work Content

  16. Lean = Eliminating Waste and Wasteful Practices Value-Added • Non-Value-Added • Overproduction • Waiting • Transportation • Non-value-added processing • Excess inventory • Defects • Excess motion • Underutilized people Typically 95% of all lead time is non-value-added.

  17. Let’s have some MORE fun ! (second Trial) Demonstration

  18. Eight Wastes Overproduction motion Inventory Transportation Waiting defects Underutilized People Non-Value-Added Processing

  19. Push System Resources are provided to the consumer based on forecasts or schedules Pull System is a flexible and simple method of controlling or balancing the flow of resources Eliminating waste of handling, storage, expediting, obsolescence, repair, rework, facilities, equipment, excess inventory (work-in-process and finished goods) Pull System A method of controlling the flow of resources by replacing only what has been consumed Pull System consists of: Production based on actual consumption Small lots Low inventories Management by sight Better communication Push versus Pull Systems

  20. How to uncover Waste • Ask what? • What is the operation doing? • Ask why? • Why is the operation necessary? • Ask why at least 5 times to lead you to the root cause • Everything that is not work is waste • Once you know the function, you can identify as waste anything that does not execute that function • Draft an improvement plan… • Ask how? ? ?

  21. How to uncover Waste ? ? Map and Analyze Process steps …

  22. How to uncover Waste ? Id Waste & Organize the workplace … 5S is a ‘good start’ ?

  23. How to uncover Waste ? Through Teamwork … attack root causes Accountability Standardize & Mistake-proof Processes. Monitor Results! ?

  24. Why Change? • “The dogmas of the quiet past are inadequate to the stormy present. The occasion is piled high with difficulty, and we must rise with the occasion. As our case is new, so we must think anew, and act anew.” ~ Abraham Lincoln • “The definition of insanity is doing the same thing over and over and expecting different results.” ~ Albert Einstein

  25. Funny Thing About Continuous Improvement Old Adage: “If you always do what you always did, you’ll always get what you always got.” Competitive Corollary: “If the other guy gets better, you’re going to get less.” “With regard to Continuous Improvement – The Sky’s the Limit !!” ~ Jay Watson

  26. Building Blocks of The Lean Enterprise “Continuous Improvement” Training Rewards / Recognition Teamwork

  27. Building Blocks of The Lean Enterprise “Continuous Improvement” Value Stream Mapping Training Rewards / Recognition Teamwork

  28. Building Blocks of The Lean Enterprise “Continuous Improvement” Pull / Kanban Cellular / Flow TPM POUS Quality at Source Quick Changeover Standardized Work Batch Reduction Layout Value Stream Mapping Teams 5S System Visual Management Training Rewards / Recognition Teamwork

  29. Lean Enterprise Practices • Continuous Improvement (CI) philosophy • Teams • With rotation of highly specified job skills • Using a disciplined problem–solving process • Cross-trained and multi-skilled employees • Who can work many operations within a cell and operations in different cells (or capacities) • Process quality, not inspection • Use of participatory decision-making • Facilitator-led, team-based problem-solving, suggestion systems, etc.

  30. Barriers to Improvement If we all know we need to improve, the question becomes: why don’t we?

  31. Traditional Culture • Leader makes all decisions – Team Members follow with little input • Process Improvement ideas are devised by the Leader and carried out by the Team Members • Culture will succeed when the Team Members are inexperienced or when immediate decisions are critical (Peace Officers, Military) • Process Improvement ideas are only as good as the single person who makes them • Little vested interest from Team Members

  32. Evolving Culture • More experienced Team members and more enlightened Leadership • Teams surface their ideas for Leaders final approval • Better Continuous Improvement ideas are devised because of the increased participation and slight shift in ownership • Employee Satisfaction increases • Leadership begins to shift from Tactical to Strategic decision making

  33. Evolved Culture • Leader sets boundaries based on Company fiscal plans and objectives • Self Directed work teams manage all Tactical issues • Leader removes barriers and monitors performance while teams develop solutions and meet objectives • Building Consensus over following orders

  34. Let’s Build Quality at Every Step • Design for manufacture/ assembly • Complex designs cause defects • End-product knowledge (NOAC) • Will my output satisfy my customer? • Standardized Work (SW) • Eliminate Tribal knowledge (“Rig something up”) / A single point of failure leads to poor quality and unreliable legacy • Communication • Timely feedback to associates and vendors when quality problems are detected • Mistake Proofing • Low-cost, highly reliable innovations that will detect abnormal situations before they occur, or if they occur, will stop the Operation

  35. Implementation Strategy • Awareness of and active promotion of Continuous Improvement – a ‘Safer, Better, Faster’ mindset • Training (OTJ and OYO) • Development (Self-directed) • Focused Improvement Events (Kaizen) • Team participation (Projects) • Culture Change (Continuous Improvement Mentality) • Long Term Planning • Benchmarking • Promotion of Success (Betterment of Organization)

  36. Implementation Success Factors • Unyielding leadership • Strategic vision, based on Lean Enterprise as part of company strategy • Observation of outside successes and failures • Ability to question everything • Deep commitment to excellence

  37. From the CEO “I ask everyone to get involved in this initiative. Lean principles will give us a powerful framework to continuously evaluate and improve our design, production, procurement and other essential processes, providing us with a new tool to meet our commitments to the company’s customers. I am looking to each of you for ideas and support of the lean enterprise initiative. Together, we will continue to boost SpaceCo to heights that are beyond our competitors’ reach.” Thurston Howell III - sample -

  38. Reference Information Lean Website: www.freeleansite.com • Training • Projects • Examples • Articles • Newsletters • Presentations • Events – in summary • 5S program • Tools and Forms • Seminars • Industry Links • Contacts

  39. Lean 100: An Introduction to Lean ThinkingMonth 200X

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