Why lean can't succeed without operational discipline

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  1. 1. Why Lean Cant Succeed Without Operational Discipline Author: Calvin Williams Principal / Continuous Improvement Strategist Manuficient Consulting Manufacturing Strategy, Analytics, & Implementation
  2. 2. Perfecting the manufacturing system is an art; however, executing the One Right Way is an exact science Manufacturing Art vs. Science Art Science Plant and Layout Design Process design & engineering Continuous Improvement Changeover Execution Performing Quality Checks Developing Standard Work Procedures Executing Standard Work Performance Coaching and Feedback Talent Development Performing Root Cause Analysis Executing Preventative Maintenance
  3. 3. Front-line supervisor / manager effectiveness can be measured in terms of the number of deviations from the One Right Way Manufacturing Management Effectiveness Operator A Operator B Operator C Operator A Operator B Operator C Maximize: Quality Service (reliability) Morale Minimize: Cost Safety Risk Results Disciplined Process Execution +250% +140% +321% 0% +10% +8% Maximize: Cost Safety Risk Minimize: Reliability Morale Quality Results Identifying and becoming disciplined to One Right Way minimizes operating cost while maximizing reliability Identifying and becoming disciplined to One Right Way minimizes operating cost while maximizing reliability The ultimate measure of production management effectiveness is the disciplined execution of operations Out of Control Process Execution Illustrative
  4. 4. Lean can be broken down into two base components: Industrial Engineering and Operational Discipline Base Components of Lean Manufacturing Industrial Engineering Operational Discipline The process of designing and implementing the perfect manufacturing system The consistency of actions taken to execute operations Lean Manufacturing The Systematic Elimination of Waste
  5. 5. New Plant or Process Design & Implementation Plant or Process Optimization Industrial Engineering is the process of designing and implementing the perfect manufacturing system Components of Industrial Engineering New Plant or Process Design & Implementation Plant or Process Optimization Optimization consists of continuously improving the performance of key aspects of performance Cost Safety Risk Quality Service Morale Plant / Process Design consists of creating and implementing a system of converting inputs into desired outputs Examples of Lean (IE) Tools Kaizen Root Cause Analysis Poke-a-yoke Hiejunka Kanban Hoshin Kanri Many Others
  6. 6. Key Points Discipline can be driven without the application of Industrial Engineering - It is the result of disciplined leadership Operational Discipline helps to understand the relationship between Six Sigma and Lean Operational discipline is the consistency of actions taken to execute operations Operational Discipline Distribution of Process Completion Times Out of Control Process Distribution Disciplined Process Distribution 1 2 3 4234 6 1 2 3 4234 6 Front-line Supervisor / Management performance can be measured in operational discipline
  7. 7. Without operational discipline, Lean improvements cannot be sustained nor can estimated benefits be realized Lean & Operational Discipline Actual Average Target -60% -37%-68%-37% -76% -76% -62% Process Execution Times The gap between actual and target performance results in increased cost and reduced plant reliability Actual Cost Target Cost Missed Opportunity Process Execution Cost Maximize: Cost Safety Risk Minimize: Service (reliability Morale Quality Results Illustrative
  8. 8. We offer an array of services to help manufacturers across industries to realize their business objectives Manuficient Service Offerings Operating Cost Reduction Optimize process efficiency to increase labor and asset utilization Production Throughput Increase Eliminate process bottlenecks to unlock untapped capacity Material Cost Reduction Close material loss points and/or identify favorable sourcing options Business Case Analysis Evaluate overall business impact to support decision-making Should-Cost Analysis Determine what a product should cost to make or procure Network Optimization Assess the optimal manufacturing footprint and associated benefit Efficiency & Opportunity Analysis Provide on-going process improvement support All services are founded in principles of Lean, Six Sigma, Agile Manufacturing and other leading disciplines designed for operational excellence
  9. 9. Contact Details Calvin L. Williams, MBA, BSIE, LSS Principal / Continuous Improvement Strategist (404) 480-2307 calvin.williams@manuficient.com Manuficient Consulting Manufacturing Strategy, Analytics, & Implementation 2300 Holcomb Bridge Rd Suite 103-103 Roswell, GA 30076 www.manuficient.com Visit my Excelville Profile for tools and resources for your operations excellence initiative. Engage with us: Subscribe | Request Material | Schedule a Call | Request a Proposal Connect with us: Facebook | Twitter | Linkedin | Google+ | Blog