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LEAN-ing Toward Success
Toronto Chapter
A LEAN-SIX SIGMA JOURNEY TO EXCELLENCE
A Take Back Manufacturing Imperative
NIGEL SOUTHWAYwww.nigelsouthway.com
LEAN-ing Toward Success
Toronto Chapter
A LEAN-SIX SIGMA JOURNEY TO EXCELLENCE
A Take Back Manufacturing Imperative
1/17/2015
2
NIGEL SOUTHWAY
• 40 years Broad Business and Manufacturing Experience
• British Engineering Apprentice…Aerospace/Electronics (1966)
• BSc EEE C-Eng. in Engineering/MSc Management….
• Manufacturing Engineer (1972)
• MOTOROLA Director Manufacturing Eng / Lean and Six Sigma Implementation (1980,s)
• Engineer / Manager / Director / VP Operations
• Change Agent/Educator/Coach/Advisor for LEAN business improvement
• AUTHOR : CYCLE TIME MANAGEMENT… Fast Track to Productivity Improvement
• Consulted / Directed many organizations in different industry sectors.
www.nigelsouthwayNEXUS
(1992)
Automotive, Aerospace, Avionics, High-tech and consumer Electronics,
Pharmaceuticals, Food, Beverage. Consumer Products and Appliances,
Steel, Fabrication, Mining, Resource extraction equipment, Construction, Off-road equipment, Service and Financial Industries.
LEAN THINKING
• Assisted many Global Sourcing programs and Joint Ventures (2004 Onward)
• Society of Manufacturing Engineers 2012/13 Chair Toronto
www.nigelsouthway.com
INDUSTRY WEEK
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Supported Clients World Wide on LEAN THINKING & Productivity Improvement.
• Electronic assembly• Meat processing plant..• Metal fabrications• HVAC Manufacturing• Toothpaste manufacturing• Steel mill processes• Bank check clearing house• US army medical Corp• Whiskey distilling• Dry-cell battery production• Credit card emboss house• Electrical products• Custom Power-Supplies• Computer design/manufacture• Sheet-metal fabricators• Plastic injection molding• Truck Components supplier• Construction equipment• Oil industry equipment providers• Aerospace equipment providers• Soap factory
• Bubblegum and candy factory• Food additive producer• Data-com system provider• Computer software developer• Mint (Coins and Medals) • Security equipment• Off-road equipment• Water pipeline manufacturer• Exhaust System Manufacturing• Commercial swimming pool manufacturing• Auto dealerships• Medical equipment Design/Manufacturer• Oil extraction equipment manufactures• Nano-tech Battery Manufacturing• Automotive parts supplier• Generic drug manufacturer• Vaccine Development and Manufacturing• Robotic Medical surgical devices• Commercial Heating Equipment
NEXUSCanada / USA / Mexico / UK / China / Russia / India / Ukraine
TBMTake Back Manufacturing
www.SME-TBM.org
A Forum Dedicated to Restoring
our Manufacturing Sectors.
TBM Take Back Manufacturing WWW.SME-TBM.ORG
Since Mid 2011
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COMBINED OPERATIONS
Take Back Manufacturing
TBM
TBM
North-American Manufacturing
Prosperity for all.
Industry
TBM – The 3 Parallel Imperatives
Educators
Government
IMPROVE POLICY
Hold a Policy Blitz process!!
IMPROVE Balance
Integrated Industrial
Learning system
Balance Education/Training/Experience
Focus on local population
Ensure Learning is economically viable
IMPROVE & Mobilize
Supply Chain Strategy
+Productivity Improvements+Local Community Engagement
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AME LEAN World Conference 2013 and Ontario Government Report
The Future …. Any Business
• Margin Pressure
• Shorter lead-times
• Need for agility
• More global competition
The Problem The Solution
A Magic Pill ?
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The Future …. Any Business
• Margin Pressure
• Shorter lead-times
• Need for agility
• More global competition
The Problem The Solution
Continuous Improvement
Continuous Improvement
Continuous Improvement
Continuous Improvement
The leaders and survivors will have a strong integrated CI Culture
5S
One Evolution Plan
NEXUS
Continuous
Improvement
THE GOAL
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The Threat/Change Pressure Curve
Electronics, (Motorola/HP etc)
High-tech,
Automotive,
Consumer Products and Appliances, (GE)
Steel,
Aerospace, Avionics,
Service and Food,
Beverage.
Fabrication,
Pharmaceuticals,
Mining / Extraction / related providers,
Financial Industries.
1980 20201990 2000 2010
NEXUS
NEXUS
Need to improve ??? Which Improvement Technology ?
?Lets get
organized!!!!
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NEXUS
“ It’s become a bit denatured”
Still the best choice
The 1980s was a Renaissance period for Manufacturing and Engineering
Many believe this was created by the Space Race!!!
Others believe it was due to the next generation of younger management
NEXUS
The Birth Of LEAN
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BUSINESS SYSTEMS
MRP (Materials Resource planning)
CIM
Pull systems
MRP 2 (Manufacturing Resource Planning)
ERP (Enterprise Requirements Planning
MANUFACTURING
JIT
QDC
SPC
Theory of constraints(The GOAL)
Cycle Time Management
Kaizan
TPM
Problem Solving/8D/5Y
DOE (Design Of Experiments)
LEAN THINKING
NEW PRODUCT INTRODUCTION
Product teams
Simultaneous engineering
Phase Review process
DFM
Six Sigma
(Motorola) QS9000/APQP
Problem solving 8D /5Y /4 phase etc
CULTURE CHANGE
TOYOTA PRODUCTION SYSTEM Visual factory /5S
Participative management style
Teamwork power
People Empowerment
Pay for skills/Gain sharing
SUPPLY
Supplier management/partnering
MEASUREMENTS
Value Engineering ABC
(Activity based Costing)
Pyramid/Balanced Scorecard
1970 19951980 1985 1990
W E Deming
NEXUS
The father of Quality Management
• The JIT threat… “Made in Japan” Early 80s… TPS etc
• The GOAL… 1984 Goldratt
• TOTAL CYCLE TIME 1985 Phil Thomas
• World Class Manufacturing 1986 Schonberger
• Time.. A Competitive Advantage 1990 George Stalk BCG
• Measure-Up (Performance Measurement Score-carding) 1990 Lynch and Cross
• Cycle Time Management 1993 Northey/Southway
• Lean thinking 1996 Womak/Jones
• LEAN for Dummies Sayer/Williams
Now!!!Many LEAN Educational packages…….
SME LEAN/Six Sigma Certification programs…… www.sme.org/lean-certification.aspx
Reading list
NEXUS Information Package www.nigelsouthway.com/positional-papers
NEXUSNEXUS LEAN SELF ASSESSMENT TOOLKIT…. http://www.nigelsouthway.com/app/download/7118659904/Survey+SME+LEAN+scorecard+starter+rev2.xls
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Lean thinking applies to ALL business sectors
Every type of business or organization has “Operations”
From first customer contact to payment for the product or service
Manufacturing, distribution, service, finance, health care, insurance, government, public support, etc.
They all have processes, value streams and supply chains!
All can be performance reviewed!
All need to IMPROVE!
“If it can be flow-charted ..it can be improved NEXUS
NEXUS
Clear visioning and self awareness at all times!!
Make improvements happen from within the organization!
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Question For You (Every-one)
• Are you ready?
• Do you have enough knowledge of concepts?
• Do you understand the process/tools being used?
• Do you have enough Vision?
• Do you understand your role?
?
NEXUS
NEXUS
Cycle-Time
Finding that lever for Continuous improvement!
A LEAN MEASUREMENT
Start thinking in the 4th Dimension!!
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What is Total Business
Cycle Time?
“Total Cycle Time” is the actual time elapsed from when a
customer expresses a need for that product or service until the
time the customer's need is satisfied and payment is received.
NEXUS
Cycle-Time
A CYCLE-TIME REDUCTION EXAMPLE!!!
• How long does it take you to change a wheel????
• Stop car…..loose nuts…raise car…..remove nuts….replace new wheel…Fit nuts.... lower car…tighten nuts…...Go…
• 15 minutes?? or even longer??..….
NEXUS
•AN INDY PIT CREW DOES THE SAME PROCESS IN …..…….LESS THAN 10 SECONDS!!!!!!
LEAN
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Cycle Time Is The Time It Takes To Get Something Done!!!
• Improve quality
• Deliver a service
• Develop a product
• Enter an order
• Design a product
• Manufacture a product
• Develop a financial plan
• Close the books
• Reduce inventory
• Procure materials
• Develop a spec
• Type a letter
• Develop a proposal
• Change culture ….
(i.e.. change the way to do business)
NEXUS
NEXUS
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NEXUS
NEXUS
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WaitingInventoryExcess TransportationOver-productionDefectsOver-processingExcess MotionUnder-utilized Talent
8 Types of Waste
NEXUSWASTE!
WaitingInventoryExcess TransportationOver-productionDefectsOver-processingExcess MotionUnder-utilized Talent
8 Types of Waste
NEXUS
“In any business big or small and whatever the
type of Products or Services as much as 90%
waste or non value adding cost can exist in some
of the activities within the business”
WASTE!
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WASTE
DEFECTS
SETUPS
Short ships
Labor VarianceShortages
Overtime
Scrap
DelaysBatch failures
NEXUS
The things in daily life that are LEAN….
Eyeglasses…. 1 hour!!!...Paint colors…. Mixed in storePizza delivery…. 1 hour and sometimes freeVideo conferencing…. NOT business travelNon coin tolls on highwayBritish Round- A-BoutsPay for gas at pumpCell phonesInternet bankingSelf serve/checkout storesInternet moviesCar Rental (some)Internet shopping?www information
Fast service is good service!!!!
NEXUS
NOT Lean
Global Supply ChainsLegal systemGovernment policy makingVoting systemHeath care systemsEducational systemHEALTH SystemBusiness commute time Airport check in/baggage handlingSecurity at airportsHotel check-in
ALL CAN TAKE TOO LONG!!
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NEXUS
The LEAN Version (Entitlement)
The LEAN Version (Benchmark)
Note:Baseline..Where you are now!
Entitlement… with Lean but low capitalBenchmark… Capital and Technology NEXUS
With LEAN but low capital
Add Capital and Technology
THEN….
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Measurement of Performance
Entitlement
Baseline
Benchmark
Baseline: Current performance
Entitlement: Level of performance achieved with present resources & capital
Benchmark: Best competitive performance with added resources and technology
NEXUS
The hockey stick… Waste out first.. Then Capex in!
Benchmarking
• Review with Measurements who is “best in class” • In your industry
• In any industry with similar process or conditions.
• Study why they are better and try to apply to your own business.
NEXUS
Copy/Steal/Cheat/Beat the Competition!!
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Discovery
Invention
Research
Development
Launch
Commercialization
INNOVATION
NEW PRODUCT INTRODUCTION
$$$$
MarketersResearchers
Product TeamsProduction/Distribution
Happy
Customer
Academia
A Typical business process???
Inventors
White Spaces
The time delay between major functions,
where less than effective communication
linkage can occur, which affects the
interaction required between these functions
or departments to complete the essential tasks
of the business.
NEXUS
CYCLE TIME REDUCTION TOOLS
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Linear Map… Value stream
VISIONBaseline to Entitlement
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BUSINESS/FACILITY LAYOUT & ORGANIZATION
BEFORE
80 transactions…62 are Non Value adding
BUSINESS/FACILITY LAYOUT & ORGANIZATION
Product Travel Distance: 2500 feet to 1000 feet# Transactions: 80 to 35
Total Process Steps: 60 to 30
BEFORE AFTER
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NEXUS
NEXUS
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NEXUS
NEXUS
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NEXUS
Baseline Business Process
Receive
stage
store
clean
Multi station batch Insp &reworkprocess
stage
Machine IH
store
Inspection Database
CommercialDatabase
Records
Customer schedules
WorkOrders
Invoice/payments
ship
Machine OS
* 90 pipes/shift
*
1D
1D
1D
1D
3D?
1D
Reactive CT= 8D min
3D?
Oil Drill Pipe Inspection Facility
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Receive
stage
store
clean
Multi station batch Insp &reworkprocess
stage
Machine IH
store
Inspection Database
CommercialDatabase
Records
Customer schedules
WorkOrders
Invoice/payments
ship
Machine OS
* 90 pipes/shift
*
Baseline Business Process
Stage
Auto pipe clean
Semi-Automated Physical inspectionCMM Laser probe
Re face stations
Vision (Entitlement)
Semi-Automated EMI/thickness test (station material
handling)
Machinestations
Moving pipe bed
Stage
1 piece flow/Same Day deliverySemi automated processesImproved material handlingReduced manning neededControlled bottleneckOutput rate is about 3 min optimized.
With a 3 min BN O/P = 7.5*60/3=150 pipe/shift
With 5 man team std time =5*7.5*60/150=15min
Computer Data base
Side feeder
Conservative Improvement…
From 90pipe/shift to 150 pipe/shift 66% increase in Output
From std 40 min/pipe to 15 min /pipe2.66 times improvement
EBITDA improved by about 2.5 times
(Will need selective Capex and technology)
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WhiteSpaces
80% Waste in this Process !!
Process to develop a semi-custom proposal to offer client services
30 page power-point Proposal
WhiteSpaces
Process to develop a semi-custom proposal to offer client services
ACTION
Started with mapping the process and defining NVA and defined ways to eliminate or do activities concurrently
Looked at better templates/new procedures
EntitlementNow takes 11 steps and reduced to 2 working days
BaselineUsed to take 50 steps and more than 2 weeks
Then asked computer guys to systematize the steps that remained!... Now same day!!
Benchmark
30 page power-point Proposal
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NEXUS
CYCLE TIME REDUCTION TOOLS
NEXUS
The Cost Time Profile
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NEXUS
COST TIME PROFILE
COST
$$$ CASH $$$
WORKING CAPITAL
TIME
NEXUS
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NEXUS
Reduced Cost
Improved Agility
Measurement of Performance
Entitlement
Baseline
Benchmark
Baseline: Current performance
Entitlement: Level of performance achieved with present resources & capital
Benchmark: Best competitive performance with added resources and technology
NEXUS
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Imagine the Vision
• Cycle time inside customer expectations
• Faster time to market capability
• Minimal Inventory and carry costs and waste in all forms
• Perfect or Improved quality (Product /Process/Services)
• Total Cost performance excellence
• Greater productivity and increased gross margins
• Reduced working capital
• Increased cash-flow cycle & reduced need for credit
• Employee Participative and Empowerment culture
• A distinct competitive edge.
NEXUS
The Perfect Business Process
NEXUS
INSANITY
“Doing the same things…. and expecting better results!”
Definition:
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Comments that can make you go insane!!!!
60. We have always done it this way!NEXUS
Break your own paradigm's
60. We have always done it this way!
Get the LEAN Religion
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Change in Operating Practices
WASTEREDUCTION
Staying ahead of the competition!
Continuous Improvement through…
Lean-thinking ……….1.Use Vision …2.Remove/Reduce Waste…3.Change Operating Practices…
WIN!!!
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Staying ahead of the competition!
Continuous Improvement through…
Lean-thinking …….1.Use Vision …2.Remove/Reduce Waste…3.Change Operating Practices…
WIN!!!
No Bears were harmed in the making of this story!
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NEXUS
“Total Cycle Time” …The actual time elapsed from when a customer expresses a need for that product or service, until the time the customer's need is satisfied, and payment is received.
Strategic Business Development Loop
New Product Introduction (NPI) Loop
Supply Management loop
Make/Ship Loop
Distribution Loop
The 5 Cycle Time Loops in any Business
Customer Expectation (Existing Products)
Customer Expectation (New Products)
www.nigelsouthway.com/positionalpapers
NEXUS
“Total Cycle Time” …The actual time elapsed from when a customer expresses a need for that product or service, until the time the customer's need is satisfied, and payment is received.
The 5 Cycle Time Loops in any Business
Strategic Business Development Loop
New Product Introduction (NPI) Loop
Supply Management loop
Make/Ship Loop
Distribution Loop
Customer Expectation (Existing Products)
Customer Expectation (New Products)
5 Business Loops
3TIERSSTRATEGY
IMPROVEMENT
PRACTICES
1
2
3
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3 TIER APPROACH TO CHANGE
TIER 1 Strategic process change
TIER 2 Change/Improvements
TIER 3 Operating Practice Changes
NEXUSwww.nigelsouthway.com/positionalpapers
OPERATING PRACTICE CHANGESPoint Meetings/Communication Problem solve/project identification Cross-train/morale.
PROCESS IMPROVEMENTSReliability (TPM, SPC, etc,)Flexibility (Changeover, multi-skill, etc. Capability (waste reduction)
Strategic Process ChangesPull system design (LINEAR PROCESS)Capacity/Demand planning (DEMAND)Physical layout (ORGANIZATION)
TIER 1
TIER 3
TIER 2 STRATEGY
IMPROVEMENT
PRACTICES
1
2
3
LEAN BUSINESS ENVIRONMENT
NEXUS
CAN BE APPLIED TO ANY DEPARTMENT OR PROCESS
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NEXUS
“Total Cycle Time” …The actual time elapsed from when a customer expresses a need for that product or service, until the time the customer's need is satisfied, and payment is received.
The 5 Cycle Time Loops in any Business
Strategic Business Development Loop
New Product Introduction (NPI) Loop
Supply Management loop
Make/Ship Loop
Distribution Loop
Customer Expectation (Existing Products)
Customer Expectation (New Products)
• Who is the customer?
• Must think holistically !
• From Vertical to Horizontal thinking
• The 5 Loops in the business
• Use the 5 Loops to provide focus
5 Business Loops
Ideas to launch?.. What’s It Really All About?
INNOVATION
NEW PRODUCT INTRODUCTION
$$$
NPI
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Discovery
Invention
Research
Development
Launch
Commercialization
INNOVATION
NEW PRODUCT INTRODUCTION
$$$$
Academia
A Typical business process???
NPIAny Change in:
Fit
Form
Function
Process
Procedure
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SIX SIGMA
General Electric!... 1990’s
Motorola
1985
NEXUS
“Total Cycle Time” …The actual time elapsed from when a customer expresses a need for that product or service, until the time the customer's need is satisfied, and payment is received.
Strategic Business Development Loop
New Product Introduction (NPI) Loop
Supply Management loop
Make/Ship Loop
Distribution Loop
The 5 Cycle Time Loops in any Business
Customer Expectation (Existing Products)
Customer Expectation (New Products)
www.nigelsouthway.com/positionalpapers
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NEXUS
“Total Cycle Time” …The actual time elapsed from when a customer expresses a need for that product or service, until the time the customer's need is satisfied, and payment is received.
Strategic Business Development Loop
New Product Introduction (NPI) Loop
Supply Management loop
Make/Ship Loop
Distribution Loop
The 5 Cycle Time Loops in any Business
Customer Expectation (Existing Products)
Customer Expectation (New Products)
www.nigelsouthway.com/positionalpapers
SIX SIGMA
New Product IntroductionMUST FOLLOW THE 3 LAWS FOR HIGH PERFORMANCE NPI….
LAW # 1. INTEGRATE THE NPI FLOW ACROSS ALL DEPARTMENTS
LAW # 2. FOCUS INTO AN APPROPRIATE & ACCOUNTABLE TEAM
LAW # 3. STREAMLINE WITH EFFICIENT PROCEDURES AND MEASUREMENTS
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NEXUS
Discovery
Invention
Research
Development
Launch
Commercialization
INNOVATION
NEW PRODUCT INTRODUCTION
$$$$
MarketersResearchers
Product TeamsProduction/Distribution
Happy
Customer
Academia
A Typical business process???
Inventors
White Spaces
The time delay between major functions,
where less than effective communication
linkage can occur, which affects the
interaction required between these functions
or departments to complete the essential tasks
of the business effectively and efficiently.
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Q A
Suppliers
MFG ENG
MKT
SALES
CUSTOMER
•Integrated functions……………………………………………………………...
•Appropriate team structure……………………………………………………...
•Efficient/streamlined procedures……………………………………………….
•DFM concept adoption………………………………………………………….
•Sigma analysis techniques……………………………………………………...
•Advanced modeling process…………………………………………………….
•Group technology adoption……………………………………………………..
•Design/manufacturing technology strategic integration………………………..
•CAE/CAPP tool development………………………………………………….
•Supplier/NPI partnerships……………………………………………………….
Comment Status
Poor & very informal……….
Not focused/measured……..
Not available……………….
Not practiced……………….
Not practiced……………….
Some demonstrated………...
Low use…………………….
Low effort………………….
Low availability……………
Not effective……………….
30%
30%
10%
10%
10%
40%
30%
30%
20%
15%
Suppliers
MFG
CUSTOMERS MARKETING
R&D
ME
SERVICEQA/QC
REQUIRED ACTUAL NBS
NEXUS
NEXUS
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Discovery
Invention
Research
Development
Launch
Commercialization
INNOVATION
NEW PRODUCT INTRODUCTION
$$$$
Academia
PRODUCT TEAMS
60
Discovery
Invention
Research
Development
Launch
Commercialization
INNOVATION
NEW PRODUCT INTRODUCTION
$$$$
Academia
PRODUCT TEAMS
60
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NEXUS
NEXUS
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NPI MASTER TIMELINE
Phases
Phase 0
Phase 1
Phase 2
Phase 3
Phase 4
RFQ/BID
DESIGN & DEVELOPMENT
PROTOTYPE
PILOT/PPAP
PRODUCTION
FORMAL PHASE REVIEW PROCESS FOR PRODUCT INTRODUCTION
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NPI PROCESS
Proto
Build
Prod Build
ProdRelease
Pre-Prod(PPAP)
Build/Test
Concept
Design
Detailed
DesignRFQ Process
Phase 0
Process
Phases
Phase 1 Phase 2 Phase 3
RFQ/BID DESIGN & PROTOTYPE PRODUCTIONPRE-PROD
Customer Request For Quote or Proposal
Customer Request For Prototype Solution
Prototype Delivery/Test results
Prod Process Verification
Prod Release/Audit
Mandatory Tollgates
Cross-functional Team
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NPI PROCESS
Proto
Build
Prod Build
ProdRelease
Pre-Prod(PPAP)
Build/Test
Concept
Design
Detailed
DesignRFQ Process
Phase 0
Process
Phases
Phase 1 Phase 2 Phase 3
Milestones Project Proposal
Concept Design ReviewDetailed Design Reviews
Final Review/Ship
1st production Ship
Process Readiness Review
Special Product characteristics
D-FMEA
Proto Control Plan
Product Sign-off
ECN Release
Design Review (START PROTOTYPE) (Team Commit)
Post NPI audit
Weekly Status Meetings
Proto Build/Test/ship
TOOLING
Post R@R ReviewRUN @RATE
Production Release Prep (Control Plans etc)
PRODUCTION RELEASE
Planning Activities
A2
Checklists (latest completion)
A1 A3 A4/5/6/7/8/9
Data collection
Special process characteristics/ P-FMEA
Process flow chart / Pre prod Control plan / Mistake proof
Proto DataNPI Action log
R@R Data
RFQ/BID DESIGN & PROTOTYPE PRODUCTIONPRE-PROD
ECN Control
Mandatory Tollgates
Cross-functional Team
Customer Requirement Customer signoff
Protoship Checklist
The Stage /Gate process
Start to use
at first concept review
Prototypes will
NOT be shipped
without this sign-off
Start when added to
launch sheet
Close after R@R
ACS NPI TEAM FEASIBILITY & COMMITMENT
PROJECT # Customer:
Part #: Part Name: KICK OFF Date:
YES NO SIGN DEPT Responsibility
PHASE 0 ….PROJECT PROPOSAL
A1 & A2 checklist started and completed as much as practical?? MKT Arne/Farooque
MKT Arne/Farooque
ENG Nigel
ME Mike G
QA Gerry
QA Gerry
MKT Arne/Farooque
A1 checklist closed DESIGN FMEA prior to design review MKT Arne/Farooque
Quote package created and signed off? price reviewed and sent to customer? SALES Jeff
PHASE 1 ….DESIGN & PROTOTYPE
A2 checklist closed DESIGN INFO prior to starting protobuild MKT Arne/Farooque
Go ahead with customer PO for protobuild? order loaded??? MKT Jeff
ME Mike G
Prototype ship checklist Final review Completed ???prior to proto shipment (QA sign off) QA Gerry
Prototypes Tested and Accepted by customer?? ACS Eng customer signoff form?? ENG Nigel
PHASE 2 ...PRE-PRODUCTION..LAUNCH PROCESS
Production demand loaded to launch system white board and worry sheet completed SALES Jeff
Prior phase checklists reviewed and Open ACTION log updated ME Kalai
Engineering customer signoff form completed ?? Reconfirm protos/specs/drgs Approved ENG Chi
ME Mike G
A3 checklist Closed NEW EQUIP/TOOLS Long lead items defined??? ME Mike G
ME Robin
If no are items budgeted ? ME Robin
Deadline…????. ME F2
Supplier audits/receiving completed? PURCH PAD
A4 checklist closed PROCESS QUALITY prior to readiness meeting QA Gerry
A5 checklist closed FLOORPLAN prior to readiness meeting ME Mike G
A6 checklist closed FLOWCHART prior to readiness meeting QA Gerry
A7 checklist closed PROCESS FMEA prior to readiness meeting ME Kalai
A8 checklist closed CONTROL PLAN prior to readiness meeting QA Gerry
A10 checklist closed Tooling management prior to readiness meeting QA Gerry
Workorders released? prior to readiness meeting SCHED Gary
Pre RUN @ RATE readiness meeting held?? Planned date??................ ME Kalai
A9 checklist closed R@R READINESS Initiated at readiness meeting ME Kalai
POST R@R report OK OK to proceed to release (Above items closed or YES) ME Kalai
PHASE 3 ….PRODUCTION
De-briefed team members as needed ME Kalai
ECN release sign off all documents ENG Marius
Final issue production documentation QA Gerry
File all checklists/sign off sheet ME Nigel
PRODUCTION RELEASE OK to RELEASE ME Nigel
Sign-Off RELEASE APPROVAL SIGN DATE
Production Mgr Fabrication
Team Member/Title/Date Team Member/Title/Date Production Mgr Assembly
QA Director
Team Member/Title/Date Team Member/Title/Date Customer Support representative
R&D Director
Team Member/Title/Date Team Member/Title/Date ME Director
Additional approvals:
Team Member/Title/Date Team Member/Title/Date Additional approvals:
Capital available ??
Assembly and Check Tooling list developed
Materials ready?
Does the design allow for the use of efficient manufacturing techniques?...design rules met??
Is there adequate capacity to produce product?
CONSIDERATION
Is product adequately defined to perform a Feasibility review??
Can Engineering Performance Specifications be met as written?
All Engineering BOMs and drgs released correctly? …Eng to review with ME!
Is statistical process control required on product?.....used on similar products?
Are customer level concerns recorded on similar type products??
manufacturable to tolerances specified on drawing? …concept inside design rules??
Quote Required?
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DFMDESIGN FOR MANUFACTURABILITY
NEXUS
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NEXUS
NEXUS
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NEXUS
NEXUS
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(EXAMPLE ONLY)
DFM checklist (continued) (EXAMPLE ONLY)
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WHAT IS SIX SIGMA??
• Journey to zero defects (or very close)
• Use of data and measurements
• Reduce variations
• Mainly Product/Process focused
• Forces cross-functional thinking
NEXUS
NEXUS
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SIX SIGMA
PPM
SIGMA
0
100000
200000
300000
400000
500000
600000
700000
1 2 3 4 5 6
NEXUS
3 Sigma means 2700 parts-per-million
OR0.27% defect rate (99.73% Yield)
59 newborn babies dropped in the maternity ward
23.65 hours of unsafe drinking water
20,000 incorrect drug prescriptions in Canada
200,000 documents lost by Revenue Canada
438 babies given to the wrong parents
517,200 cases of soft drinks flatter than a bad tire NEXUS
Real Life Sub-"Zero Defects"
Examples
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PREFERRED SIX SIGMA FOCUS
• NPI (Product Design / Manufacturing) Interface
OR
• Existing products that CAN be redesigned
as necessary
NEXUS
Motorola
3 Sigma
SIX Sigma Product Development Teams
DESIGN PROCESS/DFM
Pre SIX Sigma
SIX SIGMA
5 Sigma
Almost 6 SigmaSIX Sigma New Product Launch Teams
MFG PROCESS/SPC
FOCUS WAS NEW PRODUCTS
A Cross Functional Melding for Product/Process Optimization
+
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NEXUS
Marketing
Six Sigma…Product team Integration Tool-kit
Design Engineering
Quality Assurance
Manufacturing
From This…..
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Marketing
Six Sigma…Product team Integration Tool-kit
Design Engineering
Quality Assurance
Manufacturing
To This…..
Co-Location and size was managed!
Same Café and Bath-rooms!
No Division bigger than 300 people!
IMPLEMENTATION
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What does LEAN Implementation mean?.....
• A change in business thinking & practices
• It is not a technology you can buy turn-key
• You need an implementation framework
• You need support for education and training
• You need vision
• You need coordination
• You need commitment!
117 NEXUS
A little bit of Threat helps!
118
VISION/Commitment
Formal Continuous Improvement System
Concepts for Improvement
Change Structure/Process/Culture
Facilitation Education
EVOLUTION PLAN
5 loop Scope of change
3 TIERS of change
SCORECARDPerformance Measures
Programs/Projects/Change teams
Mobilization of whole workforce
Six Sigma?
CTM?/LEAN?
TPM/TPS/5S?
?????
BenchmarkingResults/savings
EmpowermentEngagement
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The Problems with CI Implementation
CI will Fail, Flounder or Under-deliver… If…….. it does not satisfy this checklist:-
1. Culture…. That is strongly participative (or at least can evolve)
2. Vision….. That Management have internalized/can communicate
3. Management Commitment ….. That is sustained and trusted
4. Change Agents…. Who are responsible and authorized to coordinate change
5. Improvement Toolkit Adoption of the appropriate concepts and methods
6. Education and Training… That will support the whole population
7. Change Process…… That will efficiently mobilize (this must be a team sport)
8. Change Structure…. That can build a cross functional Evolution Plan
9. Measurements…… That is realigned to define the gap to close
10. Reward system… That will encourage and sustain the whole workforce
A little bit of competitive threat helps!!!!
Balancing short term improvement projects with the continuous improvement journey
The CI Sustainability Dipper
Formal CI Program
Time to implement
Benefits
Short term pilot Improvement project/s
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121
The Key Client Questions…. The Journey Toward Operational Improvement
Are you satisfied with your profitability?
Do you have a detailed plan to increase your Operational profit margin?
Do you know (in detail) where the bottlenecks and waste factors are that effect productivity and profit?
Do you have a clear vision of what to do to get those improvements?
Do you have an Evolution plan and detailed project activities for all your business improvements?
Do you have a formal and well communicated system to measure the improvements?
Does a clear vision for improvement and toolkits to make them happen exist at all levels ?
Do you have a key person focused, dedicated and assigned to make such improvements happen?
Is your organization physically arranged and culturally positioned to eliminate waste?
Have you assessed the effectiveness of your operating practices to support/sustain changes needed?
Do you have a formal global sourcing strategy and plan?
Do you have effective project management processes for all new products and associated processes?
Most organizations score less than 30%
NEXUSwww.nigelsouthway.com
NEXUS
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BEHAVIORIST
FACILATATOR
COACH
CONSULTATIVE
MANAGER
EDUCATIONALIST
ENVIRONMENTALIST
CHANGE COORDINATION STYLES
TEACHER
HOWWHY
WHATMUST
REMEMBER…….YOU CAN CHANGE THE ENVIRONMENT EASIER THAN BEHAVIOR
Process for Change
PlanningForum
Management Team
(Approval Team)
Evolution Review Teams
Evolution Plan
Communication Evolution Plan
Planning Execution
Proj
Ldr
Prog
Ldr
Prog
Ldr
Prog
Ldr
Proj
Ldr
Proj
LdrProj
LdrProj
Ldr
Proj
LdrProj
Ldr
Proj
Ldr
12 Step Implementation Process
Step 2
Step 3/4/5
Step 1
Step 7
Step 12+
Plan Approval
Step 6
Team members
Tasks
Step 10/11
Step 9
Team Structure
NEXUS
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Step 1 Approval Team kick-off
Step 2 Planning Forum
Step 3 Review team Kick-off
Step 4 Review team planning
Step 5 Formalize Evolution Plan
Step 6 Management Approval
Step 7 Communicate Evolution Plan
Step 8 Program kick-offs
Step 9 Project kick-offs
Step 10 Project Approval
Step 11 Monthly Review
Step 12 Quarterly Communication
12 Step Implementation Process
Planning Execution
To Support an Evolution Plan for Continuous Improvement
NEXUS
NEXUS
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127
VISION/Commitment
Formal Continuous Improvement System
Concepts for Improvement
Change Structure/Process/Culture
Facilitation Education
EVOLUTION PLAN
5 loop Scope of change
3 TIERS of change
SCORECARDPerformance Measures
Programs/Projects/Change teams
Mobilization of whole workforce
Six Sigma?
CTM?/LEAN?
TPM/TPS/5S?
?????
BenchmarkingResults/savings
EmpowermentEngagement
Checklist for a Good Improvement journey
• Don’t become satisfied with profits!
• Think ….it’s YOUR business!
• Get the Tools and know-how
• Hold a clear vision and believe it!
• Always have an Evolution plan
• Know where the opportunities are and stay focused on them
• Measure , benchmark and report the journey
• Use cross functional Project teams and focus key resources
• Organize and involve everyone for that journey
• Sustain progress with good operating practices
• HAVE..Fun!!!
NEXUS
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• The JIT threat… “Made in Japan” Early 80s… TPS etc
• The GOAL… 1984 Goldratt
• TOTAL CYCLE TIME 1985 Phil Thomas
• World Class Manufacturing 1986 Schonberger
• Time.. A Competitive Advantage 1990 George Stalk BCG
• Measure-Up (Performance Measurement Score-carding) 1990 Lynch and Cross
• Cycle Time Management 1993 Northey/Southway
• Lean thinking 1996 Womak/Jones
• LEAN for Dummies Sayer/Williams
Many LEAN Educational packages…….
SME LEAN/Six Sigma Certification programs…… www.sme.org/lean-certification.aspx
Reading list
NEXUS Information Package www.nigelsouthway.com/positional-papers
NEXUSNEXUS LEAN SELF ASSESSMENT TOOLKIT…. (The Score-Card )http://www.nigelsouthway.com/app/download/7118659904/Survey+SME+LEAN+scorecard+starter+rev2.xls
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