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Lean Introduction Overview
Automotive Tier One
Date 5/31/2013
CIP 3 001 Lean Presentation.Kickoff Confidential and Proprietary Property of Ryder
What is Lean?
Listing to the right or left?
Cut of meat with no fat?
Non fat foods?
Car running on too much air?
Doing more with less?
2
CIP 3 001 Lean Presentation.Kickoff Confidential and Proprietary Property of Ryder
What Lean is not
Lean is not about eliminating people.
Lean is not about blaming people
Lean is not about creating checklists and inspections
Lean is not about painting lines on the floor
Lean is not about putting up boards
CIP 3 001 Lean Presentation.Kickoff Confidential and Proprietary Property of RyderCIP 3 001 Lean Presentation.Kickoff 4
What is Lean? (Textbook definition)*
Produce Only
What the customer wants, Only in the quantities they want, Only when they want it By doing only those things that add value Driving continuous improvement at all levels of the organization
4 * Womack & Jones (2003). “Lean thinking”
“All we are doing is looking at the Time Line – from the moment a customer gives us an order to the point we collect cash. And we are Reducing that Time Line by removing the non-value added wastes”
-Taiichi Ohno
CIP 3 001 Lean Presentation.Kickoff Confidential and Proprietary Property of RyderCIP 3 001 Lean Presentation.Kickoff 5
Tools• Building layout• Product slotting• Visual controls• WMS• Workplace
organization• MHE & storage• Signage
Tools• Building layout• Product slotting• Visual controls• WMS• Workplace
organization• MHE & storage• Signage
Methods
• Standardized operating procedures
• Layered audits
• Small batch processing
• Drive-by dispatch
• Manpower planning
• Clearly defined expectations
• Quality wall
Methods
• Standardized operating procedures
• Layered audits
• Small batch processing
• Drive-by dispatch
• Manpower planning
• Clearly defined expectations
• Quality wall
Culture• View of associates on the
floor as the company’s most important asset (not a cost)
• Flexibility of associates to perform multiple jobs
• Commitment to continuous improvement
• Trust, respect, and belief in commitment throughout the organization
• Employee ownership, involvement, and collaboration (Pride)
• Leader as servant• Importance of orderliness,
cleanliness, and having everything in its place
Culture• View of associates on the
floor as the company’s most important asset (not a cost)
• Flexibility of associates to perform multiple jobs
• Commitment to continuous improvement
• Trust, respect, and belief in commitment throughout the organization
• Employee ownership, involvement, and collaboration (Pride)
• Leader as servant• Importance of orderliness,
cleanliness, and having everything in its place
Implementation Difficulty
Implementation Difficulty
Tools and Methods Are Tools and Methods Are What You See, but It’s What You See, but It’s Culture That MakesCulture That MakesIt Sustainable.It Sustainable.
Lean ImplementationLean Implementation
CIP 3 001 Lean Presentation.Kickoff Confidential and Proprietary Property of RyderCIP 3 001 Lean Presentation.Kickoff 6
1980’s1950’s
History of Continuous Improvement
Ford Builds his 1st Car – Model
“A”
Ford Builds the first “moving line”
• Taiichi Ohno develops the “Toyota Production System”
(TPS)
• W. Edwards Deming Plan-Do-Check-Act
• Question conventional process
Early 1900’s
• Expansion across automotive and manufacturing
• Motorola initiates Six Sigma Quality
• Total Quality Management
CIP 3 001 Lean Presentation.Kickoff Confidential and Proprietary Property of RyderCIP 3 001 Lean Presentation.Kickoff 7
2006 - 2007 2008 - 2009 2010 2011
Ryder’s Lean Journey (2006-2011)
• Ryder’s Kaizen Challenge is underway and savings of millions of dollars are reported as results of continuous improvement workshops at locations across the country.
• Over 150 Ryder Greenbelts are now trained. The 5 Lean Guiding Principles are introduced and the “Lean Team” is formed to pilot and deploy a Lean Warehousing model.
• The Lean Supply Chain Solutions team expands in order to deploy the Lean Template across 64 DM locations in 2012-2013. Sites include “Showcase” facilities useful for demonstrating Lean benefits to our internal & external customers.
• Ryder’s inaugural class of Lean Six Sigma Greenbelts are trained and first graduation ceremony is held in November 2007
RESULTS:
A projects-based culture driving productivity based on the Lean Guiding Principles
CIP 3 001 Lean Presentation.Kickoff Confidential and Proprietary Property of Ryder 8
Goals of Lean
The fundamental goal of lean is to reduce the time and resources it takes to convert customer orders into high-quality, low-cost deliverables.
HighestHighestQualityQuality
LowestLowestCostCost
ShortestShortestLead TimeLead Time
CIP 3 001 Lean Presentation.Kickoff Confidential and Proprietary Property of RyderCIP 3 001 Lean Presentation.Kickoff 9
Lean Culture
It’s people who drive results.It’s people who drive results.
Numbers tell us where we’ve been.Numbers tell us where we’ve been.
People determine where we’ll go.People determine where we’ll go.
CIP 3 001 Lean Presentation.Kickoff Confidential and Proprietary Property of RyderCIP 3 001 Lean Presentation.Kickoff 10
Ryder’s 5 Guiding Principles
CIP 3 001 Lean Presentation.Kickoff Confidential and Proprietary Property of RyderCIP 3 001 Lean Presentation.Kickoff
Ryder’s certified operational processes and performance measurements have a measurable impact on the performance of the operation. Improve customer satisfaction and reduce cost through continuous process improvement and error prevention.
People Involvement (PI) » People at all levels feel they are important team members
» Empowered to make decisions on how their job is performed
» Held accountable for decisions
Continuous Improvement (CI) » Every aspect of business is challenged to get better
» Good yesterday improved for acceptable today
Short Lead Time (SLT) » Reduce the time it takes to complete a task
» Eliminate waste from every process step
Built-In Quality (BIQ) » Do it right the first time
» Eliminates costly reworks and downstream quality inspections
Standardization (S) » Document work processes/best practices
» Use standard operating procedures to train new employees
» Act as baseline for continuous improvement
LEAN GUIDING PRINCIPLES
RYDER’S LEAN GUIDING PRINCIPLES
11
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LEAN :: PEOPLE INVOLVEMENT
» Lean is not a tool or a process: it is our culture
» We encourage everyone to challenge the status quo and drive
continuous improvement
» We empower workers to decide the best way to do their jobs
» Employees are cross-trained
» Employees are rewarded for successes that benefit our customer
Engage the Workforce
TodayManagement’s
Responsibility
FutureEveryone’s
Responsibility
Mgmt
Supervisor
Associates
Associates
Supervisor
Mgmt
CIP 3 001 Lean Presentation.Kickoff Confidential and Proprietary Property of RyderCIP 3 001 Lean Presentation.Kickoff 13
Sample A-3
LEAN :: CONTINUOUS IMPROVEMENT
» Challenge every aspect of business to get better
» Use continuous improvement events to remove waste
» Encourage employee suggestions: “thousands of little ideas”
• Identify team• Analyze the problem• Describe current state
• Correct wasteful processes• Define countermeasures• Standardize work
• Set critical control points• Develop tracking methods• Assign tasks
• Display results• Describe lessons learned• Offer future recommendations
PLAN
DO
CHECK
ACT
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LEAN :: STANDARDIZATION
SCPM
Lean SignageStandard Work
Visitors to a lean operation know immediately they are in a work environment that is different. Standardization leads to:
» A clean and orderly workplace
» Comfortable and accurate daily tasks
» Well-trained employees
» Easily identified “out of standard” conditions
» Measurable improvement
» Safety always comes first
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Up from < 40 cases / hr in Week 1 to > 120 cases / hr as of Week 40
OUTBOUND PRODUCTIVITY
-
25.0
50.0
75.0
100.0
125.0
150.0
1 2 3 4 5 6 7 8 91
01
11
21
31
41
51
61
71
81
92
02
12
22
32
42
52
62
72
82
93
03
13
23
33
43
53
63
73
83
94
04
14
24
34
44
54
64
74
84
95
05
15
2
Cas
es
(OB
) p
er
Ho
ur
300% Improvement
Target with “Voice”140.0
Week
Productivity Metrics
Sample tools to track and increase speed:
LEAN :: SHORT LEAD TIME
Material Flow
Value Stream Mapping
Material Flow
Receiving & Inspection
Outbound Staging
Slow Moving Product
20% Volume
Fast Moving Product
80% Volume
» Speed the process
» Reduce time and resources
» Reduce invested capital
» Remove buffers and processes that don’t add value
CIP 3 001 Lean Presentation.Kickoff Confidential and Proprietary Property of RyderCIP 3 001 Lean Presentation.Kickoff
Value Stream Mapping allows Ryder to become a partner with our Customers, seeing their business from their perspective and helping them develop solutions to their problems.
Creating Customer ValueHelp our Customers understand their problems, issues and opportunities in a new or different way and then show them solutions which match their needs.
16
Using the Value Stream Mapping Tool
VALUE STREAM MAPPING
VSM LEVELS
Level 1: Supply Chain
High level, includes the entire or large portion of the Supply Chain
Output can be used to set Strategic or High Level Objectives
Level 2: Site
Value Stream within the four walls
Detailed enough to ID & prioritize improvement opportunities
Level 3: Process
More granular than Level 2
Yields a more detailed understanding of the drivers of cost, quality, & speed in VS
Product Family
Current State Map
Future State Map
DevelopKaizen Action Plan
How the process currently operates.
Designing a lean flow.
Becomes current state after implementation.
Product Family
Current State Map
Future State Map
DevelopKaizen Action Plan
How the process currently operates.
Designing a lean flow.
Becomes current state after implementation.
Product Family
Current State Map
Future State Map
DevelopKaizen Action Plan
How the process currently operates.
Designing a lean flow.
How the process currently operates.
Designing a lean flow.
Becomes current state after implementation.
CIP 3 001 Lean Presentation.Kickoff Confidential and Proprietary Property of RyderCIP 3 001 Lean Presentation.Kickoff 17
LEAN :: BUILT-IN QUALITY
» Mistake-proofing
» In-process controls to prevent and detect problems
» Elimination of rework
» Understanding root causes
» Instant feedback
» Participation by all employees
CIP 3 001 Lean Presentation.Kickoff Confidential and Proprietary Property of Ryder 18
Process for Change
Demonstrate a Reason for Change
Create a Vision
Create a Partnership - Mgt./Work Force
Leadership Involvement
Create Commitment
Create Sense of Urgency
Drive Results through improved processes
CIP 3 001 Lean Presentation.Kickoff Confidential and Proprietary Property of Ryder 19
Impediments to Change
Do not have a vision
Lack of shared vision
Defensiveness
Old ways of thinking
Culture
Lack of support structure for change
Lack of trust
Lack of leadership
Lack of self-esteem
Success
CIP 3 001 Lean Presentation.Kickoff Confidential and Proprietary Property of Ryder 20
Managing Factors to Achieve Change
Leadership Knowledge Measures ResourcesFocusedActions Change+ + + + =
Knowledge Measures ResourcesFocusedActions Confusion+ + + =
Leadership Measures ResourcesFocusedActions Anxiety+ + + =
Leadership Knowledge ResourcesFocusedActions
GradualChange+ + + =
Leadership Knowledge MeasuresFocusedActions Frustration+ + + =
Leadership Knowledge Measures ResourcesFalseStarts+ + + + =
CIP 3 001 Lean Presentation.Kickoff Confidential and Proprietary Property of RyderCIP 3 001 Lean Presentation.Kickoff
Takeaways for the location
Sustaining a Lean Culture
The real benefits come from a sustained effort over years, not weeks or months.
Paramount to sustainability is to remember that Lean is
a journey –
not a destination.
CIP 3 001 Lean Presentation.Kickoff Confidential and Proprietary Property of RyderCIP 3 001 Lean Presentation.Kickoff
Becoming a Lean Culture
Developing a lean culture requires strong top management commitment and leadership.
CIP 3 001 Lean Presentation.Kickoff Confidential and Proprietary Property of RyderCIP 3 001 Lean Presentation.Kickoff
QUESTIONS