FULL LEAN IMPLEMENTATION
A major success for CEO (as compared to the competition) led by Bob Curtis and his staff has been the real implementation of lean techniques into companies. The result is that the company truly has revised Operations Processes such as:
- Product manufacturing processes for the different products manufactured, with all of the non-essential tasks eliminated.
- Incoming parts/components, their receipt/acceptance and movement to inventory, with all of the non-essential tasks eliminated.
- Inventory Controls and Release Systems with all the non-essential tasks eliminated.
And also truly has revised Front Office Processes such as:
- The Marketing/Sales and Bid Processes with all of the non-essential tasks eliminated.
- The Customer Contact and Service Processes with all of the non-essential tasks eliminated.
- The Order Release Processes with all of the non-essential tasks eliminated.
- The Accounting/Finance Process with all of the nonessential tasks eliminated.
And also develops an internal team (with CEO’s direct assistance), that, when CEO leaves, continues the program by continuously addressing other company processes and implementing lean into them. They take pride in eliminating costs throughout the company.
Note: Very few, if any, of the competition have been successful in implementing Full Lean. CEO has on its staff the two most successful individuals in this area. A detailed description of the key requirements to implement Full Lean is as follows:
Lean Manufacturing
In an effort to become more profitable and improve quality and customers satisfaction, many companies are turning to a manufacturing strategy based on high production throughput, high quality, minimal inventory and a cultural focus on employee involvement. Known as Lean Manufacturing, these concepts have allowed these companies to experience profit increases of 25 percent or more while shortening lead times and improving quality and customer satisfaction.
Demand Flow Technology (DFT), Just-In Time (JIT), Theory of Constraints (TOC) and the Toyota Production Systems (TPS) are examples of Lean Manufacturing philosophies. Although there are some differences in each of these philosophies, they all share a common objective: To eliminate all waste. Waste is measured primarily in terms of excess inventory, lost time, poor quality and doing unnecessary tasks.
Another common thread is the pull or demand-based production environment. In this environment production is triggered based upon demand or consumption versus a set production plan.
Production Controls
Most Lean Manufacturing systems use "Kanbans" to regulate production. Kanban is a Japanese word which translates into English as a "communication signal." The Kanbans (signals) are usually a combination of cards, lights and buffer inventories. In a true Lean environment, the Kanbans (signals) are visual and are communicated in real time. When an inventory buffer reaches its preset maximum level, the upstream production operation is told to stop producing that type of part by Kanbans located between the production operations.
Kanban controls ensure that parts are not made except in response to a demand. The buffer inventory may also serve to protect a downstream production operation from any interruptions of upstream production operations, especially if the downstream operation is a constraint.
If an upstream production operation fails, the downstream operation can continue production by consuming the parts that are already in the buffer. The interruption at the upstream operation can then be corrected before the buffer is empty. This buffering technique is a key element of the Theory of Constraints (TOC).
Production Layout and Line Design
The production layout and line design are very important when adopting a Lean Manufacturing strategy. Production lines should be designed to perform to the highest required rate and the corresponding shortest required cycle time. This is done to avoid frequent and costly changes to the line design as demand increases. The production lines will not always run at maximum capacity. Instead the production lines are throttled based upon demand.
Understanding Process Flow
A thorough understanding of the process flow and work content is essential to a good line design. This includes product flows, labor and machine work content, quality checks, set-up and move times. With a thorough understanding of the process flow and work content, the production lines can be synchronized to create a continuous flow.
Work instructions and method sheets are simplified, enabling the least skilled operator to experience little difficulty interpreting the instructions and performing the task.
Employee Involvement
When implementing a Lean Manufacturing philosophy, companies must not overlook the importance of employee involvement. Employees working in a Lean Manufacturing environment are required to be more flexible and less specialized. Programs are required to ensure employees not only have the knowledge and skills to perform the required tasks, but also the knowledge to continually assess and improve the process.
Supplier Involvement
Suppliers also play a key role in the successful execution of Lean Manufacturing. They must be able to consistently deliver high quality material, on time. Early supplier involvement coupled with a comprehensive and effective supplier evaluation program, are significant keys to success.
Information Technology
Complex, expensive information systems are not required for Lean Manufacturing to be successful. However information technology should be deployed where there are clear productivity advantages. Some areas to consider include:
- CAD/CAM tools to speed the developments of process flows, work instructions and method sheets
- Warehouse and inventory management systems including bar codes and scanners to receive and relieve inventory
- Supply chain management tools, either EDI or WEB based, to communicate requirements and changes in demand.
Implementation
The implementation of Lean Manufacturing is not a destination, rather a journey. Companies on this journey often find it hard to sustain because of a lack of knowledge, experience, and discipline. Consequently, Lean Manufacturing activities are often set aside because of conflicting priorities.
To avoid this pitfall, senior management must be fully committed and be able to effectively communicate their message and vision to all employees; not only through words, but actions as well. Here are a few key things to do:
- Embrace Lean Manufacturing as a business strategy, not just a manufacturing strategy - Involve and achieve buy-in from all aspects of the business, including sales, marketing, finance, engineering and information technology personnel
- Apply the appropriate resources - establish a core team with clearly defined roles and responsibilities, measures and accountabilities. Make sure employees are able to spend the required time on the program
- Obtain and ensure early involvement of employees, suppliers and experts
- Align the organization to succeed - measures, compensation, etc.
- Start with a small pilot - fine tune, then rollout
- Educate and then educate some more
- Communicate and then communicate some more
Implementing Lean is not complicated but it's not easy either. The rewards from a successful Lean program however, make the journey worthwhile.
SUPPLY CHAIN MANAGEMENT
ur approach is to concentrate on establishing your supplier programs and performance capabilities that truly reduce your cost and improves each supplier’s abilities relative to quality, product availability and on-time delivery. In accomplishing this, we work with your people and consider the following as part of the effort:
- Supplier’s technical and product capabilities
- Outsourcing and its potential payoffs
- Optimize location of production areas with the target distribution
- Evaluate level of quality, technology and capability vs. labor rates and overall costs.
- Contractual, logistics, shipping times and costs and payment terms.
- Just in time delivery requirements.
- Establish supplier programs and improve supplier performance.
The goal is to improve the supplier situation to where your accepted suppliers are truly working to meet your needs.
OTHER INDIVIDUAL OPERATIONS REQUIREMENTS:
- Materials Requirement Planning
- Capacity Planning
- Production Planning, Control and Shop Floor Management
- Warehouse/Inventory Management
- Process Improvement
- Pilot Production and Program Roll Out
- Plant Layouto Bar Coding
- Manufacturing Automation
- Advanced Manufacturing Strategies and Techniques
Sometimes the company only requires that one or some of the above areas be addressed because Full Lean and Supply Chain requirements are or have been addressed. For this situation, the CEO Executives concentrate on:
- Performing an in-depth review of the existing process in the manufacturing and operations area.
- Preparing a detailed set of recommendations defining system, budget and timeline requirements. The recommendations will be focused on achieving Operations and Manufacturing systems that can provide your company with a product cost environment that improves marketplace competitiveness and increases the profitability in line with your company objectives.
For program implementation, CEO will, as required:
- Develop procedures for the manufacturing operation.
- Prepare a new plant layout and Material Handling processes.
- Define and implement the needed Warehousing and Inventory systems.
- Provide bar coding for process tracking and cost controls.
- Define Manufacturing Automation to reduce costs, speed up the manufacturing process and improve your efficiency.
Continue to Quality Assurance.
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