Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
Presented By:Brent TadsenAdaptive Business Solutions, LLC126 S. Northwest HWYChicago, IL 60010312‐957‐6008www.abstb.com
Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
Objectives:• Understand change and how it happens in a Lean organization
• Understand the Leadership Values that must be held in order to execute a Lean Transformation
• Understand the Lean transformation framework
Introduction
Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
Brent Tadsen:• 8 Years with GE; Greenbelt, Blackbelt, Master Blackbelt
• Lean & Six Sigma Trainer
• Lean Leader for GE Rail Services
• Spent 12 months helping a Railcar repair shop begin a Lean transformation
About the Presenter
Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
Change is tough…but is it good?
Quick question about your car…
Change
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First, need to clear up some very common misconceptions…
• Lean methodology needs to be embedded in all functions
Lean is a name…Let’s get past that by calling it by the type of organization it describes.
A value focused, relationship driven, employee centric organization that thrives on team work and continuously improves itself.
…or just call it Lean
It is not an initiative…it is a way of LifeYou don’t “DO” Lean, you become Lean
• Lean is NOT JUST A SET OF TOOLS Diet
Lean and Change
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Goal Based Change
A
B C
A
B C
Continuous Improvement as a process
Kotter’s 8 Step Change Model vs A Lean Company
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1. Establish a Sense of Urgency
2. Create Guiding Coalition
3. Develop Vision and Strategy
4. Communicate the Vision
5. Empower Broad-Based Action
6. Generate Short-Term Wins
7. Consolidate Gains and Produce More
8. Anchor the New Approaches in the Culture
• Urgency is part of the culture
• All people involved in improvements
• Vision is steady and clear
• No need as it doesn’t change
• Organized for action already
• Get wins everyday
• Daily Process
• Culture already supports improvement
The Beauty of Lean
8 Step Model Lean Organization
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There is no magic pill, silver bullet, or checklist that will make you Lean
So how do you do it? 3 Words…
Discipline, Energy, & Persistence
If it was simple you wouldn’t be here or your competition would have already run you out of business
So how do I become Lean?
The Lean Transformation
Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
StabilizeHR StrategyAlign MetricsLevel Load
Standard WorkMaterial Replenishment
Continuously ImprovePersonnel
Customer ValueUtilize Lean Techniques
Kaizen
Kaizen
…
UnderstandLean LeadershipCustomer Value
Vision & Business GoalsValue Stream
Business Strategy
The Lean Transformation Framework
Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
StabilizeHR StrategyAlign MetricsLevel Load
Standard WorkMaterial Replenish
Continuously Improve
…
Understand
First who, then what
Understands Lean
CEO/Leadership…Breakfast Analogy
Lean LeadershipCustomer Value
Vision & Business GoalsValue Stream
Business Strategy
PersonnelCustomer Value
Utilize Lean TechniquesLead by example…Participate…Walmart
The Lean Transformation Framework‐ Lean Leadership
Kotter [Tadsen] Step 9…the heart (kids books)
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The Lean Transformation Framework‐ Lean Leadership
Just-in-time(Flow)
Heijunka
Stability
5S
Kaizen
Pokayoke
Andon
Kanban
StandardizedWork
Perfection
ContinuousLearning
Single PieceFlow
VisualManagement
Takt Time
Heijunka
AxiomsAxioms TechniquesTechniquesPrinciplesPrinciples
Significantly influenced Significantly influenced by Joachim by Joachim KnufKnuf
Relationships
People
Value
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The Lean Transformation Framework‐ Lean Leadership
AxiomsAxioms TechniquesTechniquesPrinciplesPrinciples
Significantly influenced Significantly influenced by Joachim by Joachim KnufKnuf
Profits
Competition
Corporation
Just-in-case
Good Enough
Peaks & Valleys
Program ofThe Month
My Way
Repairs
Band aide
Rework
Assign Blame
SaturationStaging
TribalKnowledge
Batch andQueue
SearchAnd Find
Speed
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StabilizeHR StrategyAlign MetricsLevel Load
Standard WorkMaterial Replenish
Continuously Improve
…
Understand
Understand what the customer values…hopper cars
Lean LeadershipCustomer Value
Vision & Business GoalsValue Stream
Business Strategy
PersonnelCustomer Value
Utilize Lean Techniques
The Lean Transformation Framework
Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
StabilizeHR StrategyAlign MetricsLevel Load
Standard WorkMaterial Replenish
Continuously Improve
…
UnderstandLean LeadershipCustomer Value
Vision & Business GoalsValue Stream
Business Strategy
Must include something for customers, shareholders, and employees
Communicated appropriately…undivided attention
$10MM Bonus
Be ready for pushback…late night TV
Importance of why…
North Seeking Compass
PersonnelCustomer Value
Utilize Lean Techniques
The Lean Transformation Framework – Vision & Business Goals
Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
StabilizeHR StrategyAlign MetricsLevel Load
Standard WorkMaterial Replenish
Continuously Improve
…
UnderstandLean LeadershipCustomer Value
Vision & Business GoalsValue Stream
Business Strategy
PersonnelCustomer Value
Utilize Lean Techniques
Understand Operations- PR, PQ, Modeling, Capacity
The Lean Transformation Framework – Value Stream
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StabilizeHR StrategyAlign MetricsLevel Load
Standard WorkMaterial Replenish
Continuously Improve
…
UnderstandLean LeadershipCustomer Value
Vision & Business GoalsValue Stream
Business Strategy
PersonnelCustomer Value
Utilize Lean Techniques
Where do we start? What resources are available?
How will we create long term value for our customer
Have to get this right…no buggy whips
MKE Example
Not a way to reduce head count
The Lean Transformation Framework – Business Strategy
Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
StabilizeHR StrategyAlign MetricsLevel Load
Standard WorkMaterial Replenish
Continuously Improve
…
UnderstandLean LeadershipCustomer Value
Vision & Business GoalsValue Stream
Business Strategy
PersonnelCustomer Value
Utilize Lean Techniques
Performance Review Process
Hiring the right people…welder
Right org structure
Rewards and Recognition…Welch
Clear career path
Succession Planning
People who do fire prevention vs fighting
Retention
The Lean Transformation Framework – HR Strategy
Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
StabilizeHR StrategyAlign MetricsLevel Load
Standard WorkMaterial Replenish
Continuously Improve
…
UnderstandLean LeadershipCustomer Value
Vision & Business GoalsValue Stream
Business Strategy
PersonnelCustomer Value
Utilize Lean Techniques
Encourage teamwork vs individual success
Sub Optimize Value Stream…GEA Tub Bottom Example
The Lean Transformation Framework – Align Metrics
Cycle Time on assignment cars
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StabilizeHR StrategyAlign MetricsLevel Load
Standard WorkMaterial Replenish
Continuously Improve
…
UnderstandLean LeadershipCustomer Value
Vision & Business GoalsValue Stream
Business Strategy
PersonnelCustomer Value
Utilize Lean Techniques
Minimize External Input Variation
Examples:Baskin RobbinsLawn Mowing
Med Systems
The Lean Transformation Framework – Level Load
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StabilizeHR StrategyAlign MetricsLevel Load
Standard WorkMaterial Replenish
Continuously Improve
…
UnderstandLean LeadershipCustomer Value
Vision & Business GoalsValue Stream
Business Strategy
PersonnelCustomer Value
Utilize Lean Techniques
Create a standard on which future improvements are based on
We don’t need a new IT system, we just need to properly use the one we have
The Lean Transformation Framework – Standard Work
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StabilizeHR StrategyAlign MetricsLevel Load
Standard WorkMaterial Replenishment
Continuously Improve
…
UnderstandLean LeadershipCustomer Value
Vision & Business GoalsValue Stream
Business Strategy
PersonnelCustomer Value
Utilize Lean Techniques
Stable ops have the right material/Information
Kan Ban
Min/Max
The Lean Transformation Framework – Material Replenishment
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StabilizeHR StrategyAlign MetricsLevel Load
Standard WorkMaterial ReplenishmentEquipment Availability
Continuously Improve
…
UnderstandLean LeadershipCustomer Value
Vision & Business GoalsValue Stream
Business Strategy
PersonnelCustomer Value
Utilize Lean Techniques
It is difficult to get standard processes if your machine keeps breaking down
TPM
Standard Locations
The Lean Transformation Framework – Equipment Availability
Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
StabilizeHR StrategyAlign MetricsLevel Load
Standard WorkMaterial Replenish
Continuously Improve
…
UnderstandLean LeadershipCustomer Value
Vision & Business GoalsValue Stream
Business Strategy
PersonnelCustomer Value
Utilize Lean Techniques
Skills training that supports the process
Leadership training
Problem Solving
The Lean Transformation Framework – Personnel
Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved
StabilizeHR StrategyAlign MetricsLevel Load
Standard WorkMaterial Replenish
Continuously Improve
…
UnderstandLean LeadershipCustomer Value
Vision & Business GoalsValue Stream
Business Strategy
PersonnelCustomer Value
Utilize Lean Techniques
Figuring out new ways to create value for customers
•Improve Products
•New products
•New Services
•Better Lead Times…Fedex Example
The Lean Transformation Framework – CI Customer Value
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StabilizeHR StrategyAlign MetricsLevel Load
Standard WorkMaterial Replenish
Continuously Improve
…
UnderstandLean LeadershipCustomer Value
Vision & Business GoalsValue Stream
Business Strategy
PersonnelCustomer Value
Utilize Lean Techniques
Use the Lean Techniques to improve
•Internal Set-Up•External Set-up•Kitting•Poka Yoke•Supermarkets•Jidoka•Andon•Takt Time•Single piece Flow•Etc
The Lean Transformation Framework – CI Using Lean Techniques
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Before Kaizen After Kaizen
Operation Problem Actions Taken Results
Top of Car Ops
Using portable ladder to access car and transport tools and equipment. Resulting in excessive trips and safety issues. Previous observations revealed average 3 trips per
hour for Top of Car tasks.
Developed free‐standing work platform with secured tool board.
Fixed platform and tool board reduce up and down travel by 45 minutes per car & eliminate ladder safety issues.
The Lean Transformation Framework – Infra Structure Highlights
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In bound
Inspection
Blast
Tank Shop
Steam RackTrack 13- Overflow
OfficeWarehouse
Cell Criteria-NONE
Steam Rack-Clean Car after estimate approved
Finished cars from BlastOnly require valves and bubble
Push production
Example – Tank Shop Original Process Map
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In bound
Inspection
Blast
Steam RackTrack 13- Hold Track (Max 8 cars)
OfficeWarehouse
Cell Criteria-Green [Light]- <60 Hours (No HM201)Blue [Medium (-)]- 60-130 Hours- HM201Yellow [Medium (+)]- 60-130 Hours-HM201 (Pressure) Red [Heavy]– >130 Head Brace, Heat Treat, cert weld shell
Steam Rack-Clean CarUT TestBubble Test if BO is not for valves or HM-201Preliminary coil testRemove valvesCategorize cars Green, Yellow, Red
Two piece pull
Green Team
Blue Team
Yellow Team
Red Team
Finished cars from BlastOnly require valves and bubble
Cen
tr al T
o ol A
rea
Plat
form
s
Decouple the shop floor with Track 13
Example – Tank Shop Future State Process Map
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25’
Steam Rack-Drops valvesFills out information on gray signMoves valves to staging area
Tank Shop
1
10 8 6 4 2 1
45
Coach-Prioritizes valvesAssigns cell colors to wagon
Valve Shop-Rebuilds ValvesPM WagonsMoves valves to staging
Cells-Bring valves to car when new car arrivesAir tires if neededClean debris from wagonClean signReturn empty wagonsReturn colored sign to valve shop
2
3
Example – Wagon Flow Diagram
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Infrastructure Highlights
Before Kaizen After Kaizen
Operation Problem Actions Taken Results
Valves
Difficult to understand valve rebuild status, valve sets not
together, overflow valves laying on floor, lost mounting hardware.
Created wagon system to keep valve sets and mounting hardware together.
All valve sets and hardware kept together in individual wagons. Easy to see if valve shop or steam rack is behind. Keeps clutter out of valve shop.
Example – Wagon Process
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Infrastructure Highlights
Before Kaizen After Kaizen
Operation Problem Actions Taken Results
HeatTreat
Lack of 5S creating waste through searching and untangling of cables
and leads.
Created Cable and Lead bins in new HT Cart. Fire hose storage concept prevents tangles.
Cables and leads are organized and set up for rapid pull and go deployment.Reduced setup time by 59%.
Example – Heat Treat Process
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Sayre Cycle Time by Week Jan 05 to Jan 07
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.01 10 19 28 37 46 3 12 21 30 39 48
FW 2005 and 2006
Ave
C/T
All
Car
s Sh
ippe
d th
at W
eek
Cycle Time Results
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Questions
Questions & Contact Info