The Lean Manufacturing Journey - Enterprise … Visual Controls TQM (Total Quality ... Kanban Poka-Yoke (mistake proofing) ... Lean Manufacturing Journey JIT

The Lean Manufacturing Journey

Stan Voas September 17, 2014

Lean Manufacturing Journey

New Flyer Lean Manufacturing Journey - Agenda

About New Flyer

History

Market

Products

Facilities

Processes

OpEX - Lean Manufacturing at New Flyer

What is Lean

Lean Tools

Foundational Tools

JIT Tools

Jidoka (Quality) Tools

Benefits of Lean at New Flyer

Closing Thoughts

2


New Flyer History

Founded 1930 in Winnipeg as a 5 person operation

Company has grown to an international organization of approximately 3200

people.

St. Cloud plant built in 1999 – 380,000 sq.ft.

Expanded by 20,000 sq.ft. last year

In 2013 New Flyer purchased parts business from competitor Orion

In 2013 New Flyer purchased its number three competitor NABI

In 2014 started production of MiDi (partnership with Alexander Dennis)

3


New Flyer Today

Largest metro-transit bus builder in North America

3200 Employees in North America

New Flyer has 50% share of the North American Market for metro

transit buses

1 out of 5 metro buses in North America are New Flyer

4

New Flyer37%

Nova10%

NABI10%

Orion17%

Gillig24%

Other2%

2012 2013


New Flyer Products

5

Xcelsior - Heavy Duty Transit Buses

35 foot, 40 foot and 60 foot Articulated

Clean Diesel

D/E Hybrids

CNG

All Electric

Hydrogen Fuel Cell

MiDi – New Product

European Design - Alexander Dennis

30’ and 35'

http://ibus.newflyer.com/Bus Image Library/XN35_StCloudMetro.JPG


Manufacturing Facilities

6

Winnipeg, Manitoba

447,000 sq.ft.

1200 Employees

Frame build through shell

Parts manufacturing

Crookston, Minnesota

116,000 sq.ft.

300 employees

Shell through finished bus

http://ibus.newflyer.com/New Flyer Image Gallery/Facility Exterior/Winnipeg 630 Kernaghan.JPG


Manufacturing Facilities

7

Ontario, California

103,000 sq.ft.

50 employees

LA Metro

Aniston, Alabama – NABI

464,000 sq.ft.


St. Cloud MN Facility

400,000 square feet of manufacturing space

On 75 acre campus

Plant built in 1999

Complete Assembly Facility

Weld – Assemble - Customer Acceptance

8

Currently building 24 buses

per week on two shifts

Increased production line

rate from 18 to 24 units

per week.

Takt time from 4.44 hours

to 3.33 hours

Grown employment from 450

to 768 in last two years (318

new jobs)


St. Cloud Plant Flow

9


Production steps

10

Welding

Corrosion Exterior

Interior Flooring


Production Steps - Painting

11


Production Steps – Engine Prep & Install

12


Production Steps - Electrical Check Out

13



About New Flyer

History

Market

Products

Facilities

Processes


What is Lean

Lean Tools

Foundational Tools

JIT Tools



Closing Thoughts

14



What is Lean Manufacturing?

Lean manufacturing is a Strategic Weapon to use

against our competition to gain market share

Elimination of waste:

Motion, Space, Effort, Materials, Defects

A journey not a destination

About striving for perfection

Multiple components or tools that work together

About Flow: Smoothing the Flow

Flow of information, materials, product

About planning, execution, processes

Process that are capable of predictable outputs

16


What is Lean Manufacturing?

Lean Manufacturing is:

About learning

Continuous improvement

Teamwork

Solving problems

Participation and employee involvement

17


The Toyota Lean House

18

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=rNgu1EsAsXh5dM&tbnid=-UpjvCsZnsQuKM:&ved=0CAUQjRw&url=http://www.nwlean.net/leandefs.htm&ei=XT3iU4WRAsWWyASjv4DYBA&bvm=bv.72197243,d.aWw&psig=AFQjCNHGm3cVQubZ7gVjah5SRV4SxTU1nw&ust=1407422146467030


Lean Manufacturing Tool Box

19

5S Visual

Controls

TQM

(Total Quality

Mgmt)

Level Loading

(Heijunka)

Pull Production

TPM

(Total Productive

Maintenance)

Single Piece Flow

Standardized Work

Jidoka

(autonomation,

built-in quality)

Set Up Reduction

(Quick Changeovers or

SMED)

Work Cells

Kanban Poka-Yoke

(mistake proofing)

Takt Time

6 Sigma

A3 Problem

Solving Andon

*

Management

Commitment

Design for

Manufacturability

& Assembly

Flow

Cross training

TOC

Kaizen

Failure Modes &

Effect Analysis

In Sourcing

Point of Use

Inventory


Lean Foundation - 5S

20

After

Before

Sort

Set in

Order

Shine Standardize

Sustain

5S


Lean Foundation - 5S – Visual Factory - Safety

21

Before

After

Before

Safety-227 Hose Reels and 120 Cord Reels


Lean Foundation - 5S - Access to tools

22

300 Shadow Boards 43 Shadow Carts


Lean Foundation - 5S – Visual Factory

23

Before

After


Lean Foundation - 5S – Visual Factory

24

After

Before

Water Test Curtains


Lean Foundation - 5S – Visual Factory - Signage

25


Lean Foundation - 5S - Office

26

After

Before


Lean Foundation - 5S - Sustain - Audits

27

Weekly and Monthly Audits

85 Plant areas/stations & 89 offices

115 Trained Auditors

Posted on Visibility Boards

Re-Audit Process

Reported at Operations Mtg.

Sort

Set in

Order

Shine Standardize

Sustain

5S


Lean Foundation - Work Cells

28

After

Before


Lean Foundation - Work Cells - Communication

29

Performance

metrics posted on

visibility

boards

Daily cell

huddles


Lean Foundation - Work Cell - Communication – iBus

intranet site

30


Lean Foundation - Work Cell - Communication – LiveBus

Data Tracking

31

After

Before


32

5S – Visual Factory


Lean Foundation - Standard Work – Standardized Work

Instructions

33


Lean Foundation - Kaizen

We have used the Kaizen approach in our Lean manufacturing

Implementation.

5S Kaizen Blitzes starting in 2008.

Value Stream Mapping Kaizens starting in 2011

34


Lean Foundation - Kaizen – Value Stream Mapping

Started Q4 2010

Completed 67 projects to date

35

Confidential to New Flyer Lean Manufacturing Journey

New Flyer Institute

Math & Measurement

Blue Print Reading

Hand tools

Harness and connector

Sika Sealant

Lean 101

5S

A3

Lean Yellow Belt

Green Belt

Black Belt

36

Lean Foundation - Lean Training


Lean Foundation - Lean Green Belt Army

37

Anna Rabinovich Bursak

Rob Marion Stan Voas Kelly Beckman Jim Tingley

Geff Magsam Joel Galang Mike Janik Eric Jensen

Jeff Heuring Tony Rolfes Roger Finger Marilena Demchuk Jessie Nacar

Eric Birir Roger Foliente Scott Simpson Nerisa Galang

Jay Picklyk

Rich Avelsgard

Pauly Davies

Nonito Legaspi

Chris Hoffman

Steve Gault



38

5S Visual

Controls

TQM

(Total Quality

Mgmt)

Level Loading

(Heijunka)

Pull Production

TPM

(Total Productive

Maintenance)

Single Piece Flow

Standardized Work

Jidoka

(autonomation,

built-in quality)

Set Up Reduction


SMED)

Work Cells

Kanban Poka-Yoke

(mistake proofing)

Takt Time

6 Sigma

A3 Problem

Solving Andon

*

Management

Commitment

Design for

Manufacturability

& Assembly

Flow

Cross training

TOC

Kaizen

Failure Modes &

Effect Analysis

In Sourcing

Point of Use

Inventory


JIT - Point Of Use

39

After

Before


JIT - Point of Use

40

After

Before


JIT - Pull Systems - Kanban

41


JIT - Single Piece Flow

42

• Waste Eliminated – Sub Assembly department broke

up and placed line-side at the install stations.

After

Before


JIT - Insourcing

43

Extrusion Machining

Axle Bunk Welding

Roof Top Frame Welding


JIT - Andon Lights

44

http://ibus.newflyer.com/New Flyer Image Gallery/Operational Excellence/IMG_1279.JPG





45

5S Visual

Controls

TQM

(Total Quality

Mgmt)

Level Loading

(Heijunka)

Pull Production

TPM

(Total Productive

Maintenance)

Single Piece Flow

Standardized Work

Jidoka

(autonomation,

built-in quality)

Set Up Reduction


SMED)

Work Cells

Kanban Poka-Yoke

(mistake proofing)

Takt Time

6 Sigma

A3 Problem

Solving Andon

*

Management

Commitment

Design for

Manufacturability

& Assembly

Flow

Cross training

TOC

Kaizen

Failure Modes &

Effect Analysis

In Sourcing

Point of Use

Inventory


Jidoka - Quality at the Source

There is an important relationship between Quality (Jidoka) and Lean (JIT)

You can’t do one without the other

Three simple steps to quality:

Define how good is good

Design processes that are capable – CpK

Keep the process in control

Six Sigma = 6

46


Jidoka - A3 Problem Solving An A3 is a one page (11” x 17”) Problem Solving method

Gets people involved

Standardizes on a simple process

Process based solutions

47

There are 81 Cell

Team Members

trained to lead A3

projects.

47 projects have

been completed to

date (21 months)

yielding $480K in

savings

27 more projects

are currently in

process with $282K

potential savings

Tells the story on one page.

Drives root cause analysis


Jidoka - A3 Problem Solving

48

We started our A3 program in SCL in March of 2013.

To date we have successfully completed 31 A3 projects.

9 of these 31 projects had estimated cost savings totaling $128K.

There are currently 29 Open (In Process) A3 projects in SCL

23 of these have estimated cost savings potential totaling $527K.

84%

86%

80%

75%

87% 86%

82%

87%

91%

93%

70%

75%

80%

85%

90%

95%

100%

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

SCL Plant Efficiency


Jidoka - Total Productive Maintenance

49


Continuous Improvement - OpEx

50

LiveTicker

Master Facilities Plan

Engineering Quality

Advanced Quality Planning

Capacity Planning Improvements

In House MRB Reduction

Risk Review On Upcoming Contracts

Bus Standardization Update

Change Control Board

Set Up Reduction Plan

Paint Improvements

Cell Re-Alignment

Manufacturing Readiness Assessment

Quality Standards Update

Supplier Performance and Quality

Cost Reductions

HR Module Implementation

The Name Goes On When We Are Proud of the Bus

Live QA

Live Labour Planning

Cell Leader Development

Value Stream Mapping Plan

Training Institute Established

Product Lifecycle Management

Live Bus

Bid Group Established

In-Sourcing/Repatriation of Work

Work Cell Pods Established

Quality Restructuring

Facility Upgrades

Freight Optimization

iBus

CPM Team Restructured

5S

Plant Clean Up Events

Weekly Cell Metrics Meetings

MRO Vending

Inventory Org Reorganization

iSupplier

Work Cells Established

Business Systems Group

Automated SRCRs/Price Changes

Daily Huddles/Visibility Boards

Sourcing Group Restructured


Lean Assessment

Annual Lean Assessment

Outside independent assessor

Canadian Manufacturers & Exporters

51



About New Flyer

History

Market

Products

Facilities

Processes


What is Lean

Lean Tools

Foundational Tools

JIT Tools



Closing Thoughts

52


Benefits of Lean for New Flyer

What has Lean Manufacturing done for

New Flyer?

Safety

Inventory

Efficiency

Build in Station

WIP

53


Safety

54

Corporate OHSA Rate HistoryOccurences per 200,000 Hours Worked

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

2000 2001 2002 2003 2004 2005 2006 2007 2008


Safety & 5S

55

3

3.2

3.4

3.6

3.8

4

4.2

4.4

4.6

4.8

5

Jan-13 Mar-13 May-13 Jul-13 Sep-13

SCL

Monthly Target

Poly. (SCL)

5S Performance

SCL Plant Average

0

2

4

6

8

10

12

14

Safety Claims

WCB Claims

Log. (WCB Claims)


Inventory

56

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

Wk1

8

Wk2

4

Wk3

0

Wk3

6

Wk4

2

Wk4

8

WK

3

WK

9

WK

15

WK

21

WK

27

WK

33

WK

39

WK

45

WK

1

WK

7

WK

13

WK

19

WK

25

WK

31

WK

37

WK

43

WK

49

WK

5

WK

11

WK

17

WK

23

WK

29

WK

35

WK

41

WK

47

WK

4

WK

10

WK

16

WK

22

WK

28

WK

34

WK

40

WK

46

WK

52

WK

6

WK

12

WK

18

WK

24

WK

30

WK

36

WK

42

WK

48

2009 2010 2011 2012 2013 2013

2014 2014

TOTAL INVENTORY ALL 3 PLANTS

TOTAL $$

PRE-BUY


Productivity

57

73%

12%

87%

80%

6%

90%

80%

11%

94%

85%

5%

88% 85%

11%

95%

89%

7% 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

BIS Efficiency Overtime

Corporate Average BIS, Efficiency & Overtime

2009

2010

2011

2012

2013

2014


Work in Process

58

0

50

100

150

200

250

300

350

400

450

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

Q32011

Q42011

Q12012

Q22012

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Corporate Quarter Ending WIP (units)


Closing Thoughts

We are surrounded by Waste (opportunity)

Lean works best when more tools are used together.

However to get started need to start with one.

5S VSM Six Sigma TOC

Must have Top Management Commitment and

understanding.

Get people involved

Transparency is Key

You cant fix what you cant see.

Must use teamwork

59


Thank You

What Questions do you have?

60

Documents

The Lean Manufacturing Journey - Enterprise … Visual Controls TQM (Total Quality ... Kanban Poka-Yoke (mistake proofing) ... Lean Manufacturing Journey JIT