Transcript Lean Thinking in Business

Lean Thinking in
Business
Presentation by Scott
Summach and Colleen
Mackenzie, Manufacturing
Team, Saskatchewan
Industry and Resources
Saskatchewan Industry and
Resources (SIR)
SIR is the lead Provincial department to
strengthen and diversify the
Saskatchewan economy.
 SIR is divided into Strategic Sector
Development, Regional and Cooperative Services, and Resource Policy
and Development
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Strategic Sector Development
Branch
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SIR’s Strategic Sector Development Branch
has identified six sectors key to growing
Saskatchewan’s economy:
Manufacturing
Energy
Minerals
Forestry
Agri-value
Advanced Technology
Manufacturing Team

Scott Summach and Colleen Mackenzie
represent the Manufacturing Team
along with support from staff within our
Regional and Cooperative Services
Branch – Jason Regier in Saskatoon,
and Dale Mitchell in Regina.
Manufacturing as a Key
Economic Driver
Manufacturing employees 30,000
employees and shipped $7.5 billion in
goods in 2003
 Saskatchewan produces a wide range of
major goods and exports 75% of what
we manufacture
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World-Class Products
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Saskatchewan products that are
internationally recognized include:
Beef, pork and chicken products
 Paper, furniture, cabinets, millwork,
flooring
 Agricultural equipment
 Specialty vehicles such as ambulances,
highway trailers, recreational vehicles and
automotive accessories
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World Class Products
Mining and industrial equipment
 Satellite and landline communications
technology
 CATV and wireless telecom products
 Contract manufacturing services for
telecommunications, satellite, military
and aviation markets
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Manufacturing Team
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Today, we’re here to speak about two
initiatives undertaken by the
Manufacturing Team:
Lean Thinking
 Corporate Procurement
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I. Lean Initiatives
Since 1999 SIR has introduced
manufacturing companies to Lean
Thinking.
 We work with individual companies as
well as national organizations like the
Canadian Manufacturers and Exporters
(CME) that have developed consortium
building and lean enterprise expertise.
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Lean Thinking
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What is Lean Thinking?
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Simply put, Lean Thinking is a focus on
eliminating waste so that all processes
in the total system, process, or
production line add value from the
Customer perspective.
What Lean is Not
Lean Thinking is not about:
 Staff cuts
 Assigning Blame
 Nominal or one-time changes
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Lean Thinking is About
Creating a positive and safe work
environment
 Empowering all staff to make
improvements to their processes and
workplace
 Encouragement from the leaders of the
company
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Why Become Lean?
In today’s global marketplace with a
high Canadian dollar and trade border
issues, companies must become more
competitive.
 The application of Lean Thinking will
reduce waste, improve productivity, and
give companies that competitive edge
needed to survive.
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Who Can Become Lean?
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Lean Thinking is applicable to all
businesses and organizations. You do
not have to be a manufacturer or
processor.
The Lean Drivers
• Lean Thinking
• Employee Involvement
People
Customer
Success
Process
• Flow
• Elimination of
Waste
Technology
• Tools to support people
and process
Quality Processes – Quality
Results
Inconsistent
Process
Inconsistent
Results
Traditional = People doing whatever they can to get results
Consistent
Process
Desired
Results
Lean = People using standard process to get results
The 5 Principles of Lean
Thinking
1.
2.
3.
4.
5.
Define “value” from the customer
perspective
Identify the value stream
Make the process flow
“Pull” from the customer
Head toward perfection
7 Forms of Waste
1.
2.
3.
4.
5.
6.
7.
Overproduction
Waiting (time)
Transporting
Inappropriate processing
Unnecessary inventory
Unnecessary motions
defects
Waste Identification Sheet (Office)
Type of Waste
Definition
Overproduction
Producing more/sooner than
the Internal or External
customer needs
Waiting
Long periods of inactivity for
people, information,
machinery or materials
Transportation
Inappropriate
Processing
Excessive movement of
people, information or
materials
Using the wrong set of tools,
procedures or systems
Unnecessary
Inventory
Excessive storage and delay
of information or products
Unnecessary
Motion
Any motion that does not add
value to the products or
process
Defects
Frequent errors in paperwork,
product quality problems
etc…
Observation
The Lean Journey
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Should begin with Value Stream
Mapping: every process in the
company from the first customer
contact to the delivery of the product is
examined to determine its value to the
process and how it can be improved.
Tools to Make Your Process
Flow
Standardization of Processes
Pull Systems - (signal when to start a process)
Increase Visibility
Mistake proofing
Manage by exception
Minimization of upstream / downstream impacts
Set-up reduction
Cellular Processing
Preventative Maintenance
Apply Measurement or Metrics
PDCA
Plan
1.
2.
3.
4.
5.
Select Focus Problem
Gather Data & Investigate
Identify Root Causes
Brainstorm Possible Solutions
Develop Solution Plan
Do
Act
9. Capture
Improvements
& Standardize
10. Evaluate Team
& Next Steps
Continuous
Improvement
6. Implement
Solution Plan
Check
7. Verify Results (Compare with
2. Above)
8. Confirm Acceptance
5S
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The next step involves figuring out what
to change and how to change it.
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Japanese’s manufacturing plants like
Toyota established a waste reduction
theory we commonly call the 5S.
The 5S’s
 Seiri
– sort
 Seiton – set in order
 Seiso – shine
 Seiketsu – standardize
 Shitsuke -- sustain
Sort
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Review the workplace and for each
item, ask:
Is it needed?
 How many are needed?
 Where should it/they be located?
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Remove anything that isn’t needed for
the current job.
 Leave only the bare essentials.
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Set in Order
Arrange items so that they are easily
accessible
 Arrange items so they are visible
 Follow: “everything in its place and a
place for everything”.
 cartoon
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Shine
Clean everything
 Eliminate all sources of clutter
 Find ways to keep the area clean
 Adopt cleaning as a form of inspection
 Make cleaning a part of everyday work
and every employee’s responsibility
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Standardize
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Create the rules by which the first 3 S’s
are implemented and maintained
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i.e.. Standardize location of all items and
cleaning schedule and procedures
Sustain
Continuous Improvement
 Total employee involvement
 Coaching
 Education
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Success in Lean
There are many Lean resources
available.
 Lean Training is not a one time course,
but must be a corporate long term
commitment.
 In our experience companies have a
greater chance of success by working
together.
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Lean Consortiums
The Manufacturing Team works with
Saskatchewan companies to form
consortiums of manufacturers:
 The Saskatchewan Consortium of
Manufacturing Excellence;
 The Northern Saskatchewan Consortium of
Manufacturing Excellence; and
 The South Saskatchewan Manufacturing
Consortium
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Saskatchewan Consortium of
Manufacturing Excellence
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Canada Post
Cover-All Building
Systems Inc.
Doepker Industries
Industrial Machine &
Manufacturing Inc.
Bourgault Industries
Schulte Industries
Ltd.
DSI- Thiessen Team
MIFAB Mfg
 Northern Steel
Industries Ltd.
 Vanguard Inc.
 Precision Metal
Fabricating Ltd.
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Northern Saskatchewan Consortium
of Manufacturing Excellence
SED Systems
International Road
Dynamics
Dawn Foods
Burton Cabinets
Siemens Laserworks
CNH Global
Hitachi Canadian
Industries
Norampac
Standard Machine
Combine World
South Saskatchewan
Manufacturing Consortium
Brandt Industries
Canada Post
Dumur Industries
Dutch Industries
Stewart Steel Inc.
Ralph McKay Empire
Watergroup
Companies Inc.
Precision Industries
Conserva Pak Seeding
Systems
Raider Industries
Sasko Windows and
Doors Inc.
Sweeprite
Training Courses
The CME leads the Saskatchewan
Consortium of Manufacturing Excellence
and the Northern Saskatchewan
Consortium of Manufacturing Excellence
 Training begins with Value Stream
Mapping
 Members choose their courses from the
following examples:
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Training Courses
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Introduction to World
Class Fundamentals
Lean 101 Hands on
Introduction also HighMix, Low-Volume
5S and the Visual
Factory
Lean Set Up Reduction
Continuous
Improvement
Lean Product Design
 Effective Office
 Lean Purchasing/
Procurement
 Lean Accounting
 Effective Coaching
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The Role of the Office in Lean
Enterprise
R& D
Suppliers
Design
Operations
Purchasing
M. E.
Maintenance
Materials
Manu. Support
Manufacturing
Quote
Customer Value Stream
Order Entry
Sales
Marketing
I.T.
Accounting
H.R.
Distributors
Service
Logistics
Cash
Keys to a Successful
Consortium
Non-competing companies
 Membership fees that allow a pooling of
resources to hire leading consultants and
offer training sessions
 Membership that decides on the courses
offered and membership in the consortium
 Members willing to share their best practices
and learn from each other
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Results
Some results from our Consortiums:
 Reduce Inventory by 56 %;
 Decrease bank debt by 50 %;
 Deliver product in 10 days rather that 2
months;
 Engineering time reduced to 2 hours from 2
weeks;
 Space requirements reduced by 35 %;
 Space requirement reduced by 200 %;
 Productivity increased by an average of 55 %
Results
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Travel time reduced by 75 %;
Process time reduced by 82 %;
Inventory turns increased by 40 %;
Production time reduced by 40 %;
Gross Margin increased by 105 %;
Product Cycle time decreased from 4 weeks
to 24 hours;
6 fold increase in throughput;
Results
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No finished good inventory – all goods pulled
by customer and shipped the day of
manufacture;
On time delivery 96.1 %;
25 % decrease in manufacturing inventory;
Cultural change from traditional
manufacturing to scheduling based upon
product pull;
Staff are involved with the production process
and allowed to make necessary changes.
Why Join a Lean Consortium?
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You cannot live long enough to make all of
the mistakes necessary to implement lean on
your own;
 It is time to eliminate “fire fighting or
management by crisis”;
 The sharing of concepts, actions, and results
with other non competing companies takes
company performance to a level that is
unattainable unless expenditures, resources,
and efforts are all at a much higher level than
required in the Consortium.
II.Corporate Procurement
Committee
The Manufacturing Team chairs the
provincial Corporate Procurement
Committee (CPC)
 The CPC consists of members from
major Saskatchewan corporations
representing the Crowns, the private
sector, and government departments.
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CPC Mission Statement
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The Mission of the Corporate
Procurement Committee is to promote
Saskatchewan economic growth by
developing quality, competitive
suppliers of goods and services in
Saskatchewan.
CPC Goals and Objectives
 To
maximize Saskatchewan content in
the acquisition of goods and services
 To increase awareness of Saskatchewan
supplier capabilities
 To encourage the export of goods and
services by Saskatchewan suppliers
CPC Goals and Objectives
 To
identify opportunities to
Saskatchewan suppliers
 To maximize Aboriginal content in the
acquisition of goods and services
 To encourage the implementation of
Quality Assurance Programs by
Saskatchewan suppliers.
CPC Action Plan
Meet as a committee five times per year
 Share information on suppliers, new
products, success stories, and
Saskatchewan content statistics
 Visit supplier facilities in conjunction
with meetings
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CPC Action Plan
Prove information to SIR to maintain
databases i.e.. Manufacturers Guide
 Share information on policies and
programs
 Promote the selective use of offset
counter trade agreements to support
Saskatchewan suppliers.
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CPC Success Stories
Hitachi Canadian Industries –
manufacture of wind towers for
SaskPower
 Del-Air – manufacture of pedestals for
SaskTel and SaskPower
 Country Leather – manufacture of
leather gloves for SaskPower
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CPC Meetings for 2005
March 17-18 Melfort/Tisdale
April 28 Saskatoon
June 2-3 Meadow Lake
September 22-23 Kindersley
November 24 Regina
Interested in presenting to CPC? Call us.
Conclusion
The Manufacturing Team would like to work
with you to grow and expand our
manufacturing sector. Please contact us for
further information on Lean, the CPC, or
anything else related to manufacturing.
 Appreciation is extended to High Performance
Solutions Inc. for use of their material and
images.
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Contact Information
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Scott Summach,
Manager, Manufacturing
Team
Strategic Sector
Development Branch,
Saskatchewan Industry
and Resources
206 – 15 Innovation
Blvd, Saskatoon S7N
2X8
(306)933-7207
[email protected]
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Colleen Mackenzie,
Business Development
Manager,
(Manufacturing and
Aerospace/Defense),
Strategic Sector
Development Branch,
Saskatchewan Industry
and Resources
206 – 15 Innovation
Blvd, Saskatoon S7N
2X8
(306)933-7209