Copyright A-dec, Inc 2008 A-dec STRIVING FOR THE BETTERMENT OF
DENTISTRY WORLDWIDE
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Copyright A-dec, Inc 2008 PROFILE AT A GLANCE FOUNDED - 1964
HEADQUARTERS - NEWBERG OREGON USA HEADQUARTERS FACILITIES - 500,000
SQUARE FEET EMPLOYEES - 900+ MARKET SHARE- USA - 45% SALES - $300
MILLION CUSTOMERS - 470 DEALER LOCATIONS IN OVER 120 COUNTRIES
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Copyright A-dec, Inc 2008 Selection of our Product Portfolio
Chairs Delivery Systems Lights Cabinetry
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Copyright A-dec, Inc 2008 In short: High quality products for
the benefits of dentists and their patients
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Copyright A-dec, Inc 2008 A-decs Lean Journey LEAN MANUFATURING
a
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Copyright A-dec, Inc 2008 Something Had to Change Throughout
1999 and into 2000 A-dec was suffering from a trend of: Increasing
Costs Less Than Desired Quality Less Than Desired Delivery Times
Conclusion: We lacked a strategy for making sustained operational
improvements. a
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Copyright A-dec, Inc 2008 Selected Lean As Our Strategy Lean
was the only direction/strategy that would allow us to: Improve
Quality Improve Delivery, while Reducing our Overall Costs. a
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Why Lean? Existing Framework and Best- Practices to Reduce /
Eliminate The Eight Wastes Copyright A-dec, Inc 2008
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Why Lean? The facts that ultimately make change stick Requires
Everyones Involvement Long-Term Focus for A-dec Consistent with the
A-dec Way a
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Copyright A-dec, Inc 2008 Statistical Achievements a
19992008Change Manufacturing Employees 618 602 - 2% Inventory Turns
4.61 8.86 + 63% Cash Flow Impact + $11M Lead Time Reduction 33% -
70% Kaizen Events Conducted 645 Employees who have participated
472
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Copyright A-dec, Inc 2008 Lean Timeline Overview 2001
Researched lean Identified a strategy and selected tools Conducted
two pilot Kaizen Events 2002 Created five full-time Manufacturing
Lean Teams Created dedicated Sales Lean Team Learned to apply
concepts and tools Started to build employee acceptance 2003
Created Lean Enterprise Team Started our campaign for 7-day
order-to-invoice Commitment to employees they will not lose
employment due to lean improvement Focused on Value Streams
Noticeable change in employee acceptance
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Copyright A-dec, Inc 2008 Lean Timeline Overview 2004
Formalized Continuous Improvement Department Established Supplier
Lean Team Formal training and education program for all employees
Focused on foundational tools like 6S, Standard Work, and TPM
Company-wide deployment- moved accountability to business units
Drove employee involvement 2005 Continue to focus on the basics
Enhancing Quality focus- Poka-Yoke and 3P Implementing Pull
Systems- internal and external Supply Chain Integration- lean
initiatives Product Development- increasing velocity Employee
engagement- daily kaizen, expanding training
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Copyright A-dec, Inc 2008 Lean Timeline Overview 2006 Engaging
Customer Base including Leadership Training Implemented Visual
Metrics and OFI Boards Established A-dec Quality Management System
Required manufacturing employees to be fully trained in 6S and
Standard Work Established 3% annual goal for whole organization
2007 Established Brace Yourself new employee training with heavy
focus on lean basics and quality Continued 3% annual capacity goal
through workshops and improvement activities Established goal for
leaders to be trained as facilitators Continue focus on employees
through 6S and Standard Work
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Lean Timeline Overview 2008 Focus on Corporate Capacity
Improvement: 3%, 5%, 7% Established OFI (Opportunity For
Improvement) System Developed and Deployed new Corporate metrics
and shared results monthly with staff. Cost of Quality External
Quality Capacity Gained OFIs per Employee Copyright A-dec, Inc
2008
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Lean Tools Value Stream Mapping Process Mapping 6S Standard
Work Work Cells / 1-Piece Flow Kanban TPM 3P Poke-Yoke SMED /
Set-Up Reduction Visual Controls OFI (Opportunity for
Improvement)
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Copyright A-dec, Inc 2008 Keys to success Understand that Lean
is a long term commitment Guarantee that no one will lose their
employment because of Lean Time and resources Get people from all
levels of the organization involved a
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Copyright A-dec, Inc 2008 A-decs Lean Journey EXTENDING LEAN TO
SUPPLIERS a
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Extending Lean to our Suppliers Our Approach 1.Not a S.W.A.T.
Team The Boeing, Harley Davidson, or Auto Industry approach would
not work for us. Not Part or issue specific. 2.Support and
encourage our suppliers to become a Lean Enterprise. Informing,
training, and facilitating 3.Supply Chain vs. Supply Chain
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Analyze Supplier Mix and Prioritize Best Lean Candidates Engage
Suppliers Top Management and Establish Commitment to Lean Identify
and Train a Lean Champion at the Supplier Prepare an initial Kaizen
Proposal and Facilitate Events at the Supplier Assess
Results-Monitor & Support Growth of Lean **( copies
available!)** Overview : Extending Lean to our Suppliers
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Varying opinions about Lean: Lean... That just means more
Inventory to us, right? We are a Job Shop, we dont make a product!
We are already doing many Lean things! Our Industry is different.
Lean sounds great, but where do we start?
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Extending Lean to our Suppliers Responses Varying Supplier
Situations: Fence Sitters- No commitment! ( Just accommodating the
Customer ) The Timing is not right! (Seasonal Peak, Facility
moving, Personnel changes, Change of Ownership, ERP systems, etc.)
Discomfort with Customer leading. (Embracing Lean but they want to
own it!) Ready, Eager & Willing- but what is the 1 st Step? (
Lean Assessment?) Lean is already in place can they teach us?
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Extending Lean to our Suppliers CEO / President / Upper
Management Embracing Lean Accepts Lean as a journey, not a
destination. Supports permanent culture change. Embraces the Lean
concepts; not just endorse them. Commits adequate resources. Plans
for freed resources. Seeks additional Lean knowledge. Adopts Lean
performance measures. Aligns business goals with lean. Actively
leads lean.
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Extending Lean to our Suppliers Identify Your Lean Champion
(LC) Lean Savvy Ability to Build / Lead Effective Teams Action
Oriented Ability to Direct Others Presentation Skills
Organizational Agility Ability to articulate Why Lean?
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Extending Lean to our Suppliers Establishing a Lean Core team
The Lean Champion (LC): Identifies team members, cross functional
non/management (or limited) Assesses their Lean training needs.
Trains Core team on Lean basics & facilitation. Begin to drive
Lean through the organization. Schedules regular team meetings.
Lean Core Team Identifies a series of event opportunities.
Participates in initial Kaizen events with LC. Team Members then
facilitate & drive Lean through-out the organization
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Extending Lean to our Suppliers Lean Leadership & Supplier
Training at A-dec: Day 1 (Tuesday) 8 am to 4pm: A-dec's Lean
Journey -45 min. Lego Simulation- Single piece Flow exercise/team
activity ~ 90 min. Lean Concepts and the A-dec Way - 45 min.
Standard Work Concepts - 75 min. 6S Process - 75 min. Day 2
(Wednesday ) 8 am to 4pm: Value Stream Mapping Introduction- 60
min. Current State Value Stream Mapping an actual process 5 hrs
Hands on activity ~Admin or Manufacturing process - 5 hrs. Day 3
(Thursday) 8 am to 12 pm: Report on Current State- 30 min. Review
the Future State concepts- 30 Min. Kaizen events- 45 min. Mapping
the Future State Process- Continued Hands on activity ~2 hrs.
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Extending Lean to Suppliers Case Study: Plastic Molder 6 S and
Work Cell Development BeforeAfter
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Extending Lean to Suppliers Case Studies: Plastic Molder WIP
Workflow Improvement-Cell Lay-out BeforeAfter
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Extending Lean to Suppliers Case Study: Plastic Molder
Results
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Extending Lean to our Suppliers Case Study # 2: Plastic Molder
Kaizen Event ScopeKaizen Event Scope Improve quality of A-dec micro
valve assembly and eliminate process wastes. Start: At the Molding
machine End: Ready for Shipment to A-Dec
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Changes Made Point of use storage Set-Up reduction Added visual
aids to procedures Reduced assembly part order quantity Single
piece assembly eliminating a sub-assy Re-designed the work
station
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Lean Process Tools Used Value stream mapping Poke Yoke Standard
work Visual work place Cell design
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Extending Lean to our Suppliers DescriptionGoalActual
Inventory50%67% Set-up time 80%50% Travel distance 60%23% Through
put time 80%43% Process steps 50%29% Touches50%43% Actual Reduction
Stretch Goals :
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Extending Lean to our Suppliers DescriptionCurrentFuture
Operators117 Touches148 Through-Put 340 hours 193 hours Cycle Time
90.9 min. 75.4 min. Inventory Dollars $22,800$4,000 Distance 1089
feet 842 feet Set-Up Time 60 min. 30 min. Steps3122 Future State-
Results comparison:
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Extending Lean to our Suppliers Lessons Learned Benchmarking is
critical (Take pictures, Document like crazy- how did we used to
look?) Cost Savings/ Supplier Cost accuracy (Quantifying
improvements are often difficult!) Strengthened Alliance/ Cost
Avoidances Investment: Time is your friend
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Extending Lean to our Suppliers Summary ( 46) Lean Pulse-taking
Supplier visits. Primarily Portland-Spokane areas (19) Lean
Champions identified. (24) A-dec Lean Tours with Supplier Mgmt.
Teams. (150) Supplier Participants in A-dec Lean Leadership
Training (or a Lean Basics 2-day course). (28) Kaizen events with
Supplier/A-dec participation. (16) Suppliers in our Top 80%
actively deploying Lean!