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Dr Peter Ball
Centre for Strategic Manufacturing
www.dmem.strath.ac.uk/csm/
p.d.ball@strath.ac.uk
DMEM
The frog!
Rebbit! Uh oh!
Rebbit!
10OoC
5OoC
OoC
store
Continuous-flow production K K kanbans withdraw & process
Multi-skilling
TQM Upper action limit
average
Upper warning limit
TPM time
lf
SPC Se nt
em
e
prov
im r
ous ompetito
Standardised work Co
ntinu C
Kaizen
change
Present
Uncompetitive Competitive
Time
What is Lean Manufacturing?
Builds on roots but with specific focus on:
Customer
CustomerDriven
Driven
Profit
ProfitDriven
Driven Customer
CustomerSatisfaction
Satisfaction
Team
TeamBased
Based Profitability
Profitability
Fewer
FewerPlayers
Players Greater
GreaterControl
Control
Devolved
Devolvedresponsibility
responsibility
Improving business performance
Increase turnover
Sell more
Charge more
Reduce cost
Reduce direct material cost
Improve production efficiency/effectiveness
Increase the rate of adding value
Time based competitiveness - some rules
0.05 to 5
Value actually added between 0.05% - 5% of total time
3/3
Why no value being added:
Waiting for completion of batches
Waiting for physical / intellectual rework
Waiting for management decision
1/4 - 2 - 20
For every quartering of total time, productivity doubles,
costs reduce by 20%
3x2
Lean competitors enjoy x3 avg growth rate, x2 profit margin
Delighting the
customer?
Flexibility
Flexibility&&control
controlto
to
satisfy
satisfycustomer
customeronon
time,
time,every
everytime
time
Managing
Managingthrough
through
people,
people,teams
teamsand and
aligning
aligningall
allto
togoals
goals
Reduction
Reductionofofwaste
waste
ininthe
themanufacturing
manufacturing
system
system
Product
Productquality
qualityright
right
first
firsttime,
time,every
everytime
time
How to go lean
Objective Method
IfIfyour
yourproduction
productionplanning
planningfunction
functionwas
waslikely
likely
totoproduce
produceinfeasible
infeasibleplans
plansoccasionally
occasionallywould
would
you
youtrust
trustthem?!
them?!
Need to establish capability in all processes
Need capable machines
Need capable suppliers
etc.
Danger is that you can base lean on poor foundations
Focus on assembly area when machine shop is not capable
Focus on production processes when supplier is not capable
Need to be careful with available literature, can assume
You have sales and operations planning
You have capable machines
See roots of lean
etc. thinking slide
Capability / variance
Lower Upper
specification specification
limit limit
Nominal
±3σ
±6σ
Executive
Executivevision
vision
Assess
Assess&&kickoff
kickoff Select champions …
Deploy
Deploystrategy
strategy Train and set up structure …
Pr
Measurement
Measurement Map, id critical input/output variables …
oj
ec
ti
m
Analysis
em
en
ta
Improvement
Improvement Design of experiments …
tio
n
Control
Control Use control charts …
Agile – a step on from lean?
Roots of agile in America defence industry – developing
the ability to react and reorganise to successful
equipment bids
Lean and agile have common components
See “Lean Thinking Roots” slide (quality, reliability,
improvement, etc)
But lean is process focused, agile is boundary focused
Ability to thrive in constant, unpredictable change
Key attributes of agile
Customer value focus (solutions not products)
Flexibility to adapt to fundamental market changes
Not simply changes in product mix
Competing from multiple fronts, possibly virtually
Organisational knowledge, including ability to adapt IT systems
to support new processes
Different views on lean -vs- agile
The journey
Traditional
Traditional Lean
Lean Agile
Agile
A spectrum of companies
Lean
Lean Agile
Agile
Make to stock Make/Engineer to order,
Low variety High variety, Service culture
Mass, repetitive “Product Innovator”?
“Cost minimiser” “Customer intimate”?
Complementary
Make to forecast Make to order
Stock
(to decouple)
Material
suppliers
Lean
Lean Agile
Agile customer
Investigation
Investigation Customer
CustomerSatisfaction
Satisfaction
Implementation
Implementation Profitability
Profitability
Project
Projectspecific
specific Greater
GreaterControl
Control
Summary
Strategy that encompasses business [profit] objectives
and customer order winning [and maintaining] criteria
Achieve short-term, KPI-driven improvements
consistent with strategy
Plan and act for sustainable change
Example: Rolled metal manufacture (batch)
Major initiative to remove waste
Significant formal education and training
Targeted specific product stream
From supplier to customer
Mapped out processes and established measures
Result
Major quality improvements, 60% drop customer complaints
Other significant financial benefits
Short / long term EVA moved negative to neutral
(EVA=Economic Value Add -> sustainable
investment)
Openness of data systems!
Example: Bottled water (process)
Phase 1
Education and training of teams
Use of DTI funding via TCS Programme (tcd.co.uk)
Full integration of sales, purchasing, manufacturing
Improved management information system
(Soft) greater teamwork, responsiveness
From 80% to 100% peak season stock cover
DEPALLETISER
Sales up 30%, same headcount
TOPSTAR/DUBUITT
Phase 2 (underway)
FILLING HALL
RINSER
BOTTLING HALL
FILLER
CASE ERECTOR
Introducing OEE CAPPER CASE SEALER
Focus on waste LABELLER CASE PACKER
STRETCHWRAPPER
Example: Whisky bottling (process)
Use of OEE as key measure
Specific focus on bottling lines
Low OEE
Start / stop
Breakdowns
Introduced asset care
5S Sort, Straighten, Sweep, Standardise, Self discipline
Quick changeovers
Reliability centred maintenance
Asset care programme brought £0.5m savings in 6
months
Useful sources of information
www.competitiveSCOTLAND.com
Seminars, resources & discussion for Scottish manufacturing
Centre for Strategic Manufacturing web site
dmem.strath.ac.uk/csm/ (this presentation, resources, lean courses)
James Womack & Daniel Jones, Lean Thinking: Banish Waste and Create
Wealth in your Corporation (Simon & Schuster, 1996)
John Bicheno, The Lean Toolbox, 2nd edn (Picsie Books, 2000)
http://www.picsie.co.uk/ (£10?)
Peter Hines & David Taylor, Going Lean: a guide to implementation (Lean
Enterprise Research Centre, Cardiff Business School, 2000)
Institute of Operations Management (IOM)
Papers and courses on Lean, Agile, etc, see iomnet.org.uk
Seminars (e.g. Recently: Lean at Boots, 5S at Ratheon)
Pande, Neuman, Cavanagh, R.R. 2000 "The Six Sigma Way”, McGraw-Hill
ISBN 0-07-135806-4 (£20)
For knowing about it without actually dealing with the detail
Breyfogle 1999 "Implementing Six Sigma - Smarter Solutions Using Statistical
Methods" Wiley-Interscience ISBN 0-471-29659-7 (£60)
Good for detail if you actually want to implement it
Agile
http://www.agility.co.uk/ or internet search for “agile” (care with “agility”!)
LEAN and AGILE
approaches to manufacturing
Centre for Strategic Manufacturing
Rebbit!
Dr Peter Ball
Centre for Strategic Manufacturing
p.d.ball@strath.ac.uk
DMEM