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People + Lean + Process Innovations

People + Lean + Process Innovations. a. Russ Scaffede. b. October 2009. A Little History Leading to My Being Here Today Mass Production VS. Toyota Production System Tiara Yachts Lean Development Integration of a Total Lean System Observations and What I Have Found Has Failed

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People + Lean + Process Innovations

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  1. People + Lean+ Process Innovations a Russ Scaffede b October 2009

  2. A Little History Leading to My Being Here Today Mass Production VS. Toyota Production System Tiara Yachts Lean Development Integration of a Total Lean System Observations and What I Have Found Has Failed Closing and Questions Objectives

  3. Henry Ford’s Mass Production System Henry Ford developed a Mass Production System, the World Followed It is Important to keep in Perspective the Great Success the Ford System Makes The Past • 20 years at General Motors and 5 years at • Toyota Motor Manufacturing

  4. Early 1900s

  5. But, by the 1970s and 1980s until today!! • Toyota Introduced Us To The “Toyota Production • System” • Material is looked at from Just In Time Processes • Quality and Cost are controlled by Build In Station • Sequential level production synchronizes the system • Machine PM replaces repair after breakdowns

  6. The System is Uniform and Consistent Plant to Plant All Employees are Challenged to Participate in Reducing Cost All Toyota Staff from Chairman to the Line Workers Understand the System But, by the 1970s and 1980s until today!!

  7. Almost Every Company Has Some Form Of Lean/Continuous Improvement Initiative Fewer than 5% of companies are achieving long term success like Toyota WHY? I believe it is the failure of executives to understand lean as a company enterprise system I believe in most companies Scanlon Principles are the key Missing Link But, by the 1970s and 1980s until today!!

  8. TRADITIONAL MASS PRODUCTION(FORD MASS PRODUCTION 1910’s)VS.Lean Production(Toyota Lean Production 1950’s)

  9. Continous Improvement by Management and Engineers Cost Quality Safety Morale Productivity Labor All Materials Necessary to Run Any Schedule Daily Schedule Run by Production Without Plant-wide Communicated Sequence (Prepared Ground Work) Maximize Equipment Run Time (Repair only after break down) Traditional Mass Production Safety Quality Cost by Maximum Run Inspect and repair Classifications of Support Float for Breakdown Continuous Run Labor Efficiency Measurable Large I.E. / Mfg.. Engineering Largest Possible Batch Run Skilled Trade Response to Work Orders

  10. Deming’s Leadership in Statistical Process Control The History of Lean is NOT from Japan • “Ford Today and Tomorrow” • Toyota Trained Under Ford’s Leadership • Training Within Industry • Job Methods (Standardized Work) • Job Instructions (Job Instruction) • Job Relations • Union Job Relations

  11. Training Within Industry Materials

  12. Successful Implementation Must be a Systematic Process “One of my concerns after reading several books on the Toyota Production System is that, while such books do outline principles and techniques with detailed explanation, their treatment of the subject is specific and anecdotal rather than systematic.” Source: Shigeo Shingo, A Study of the Toyota Production System From an IndustrialEngineering Viewpoint, Cambridge, MA. Productivity Press, 1989

  13. Continous Improvement by All Employees Productivity T/M Morale Quality Cost Safety Cost Quality Safety Morale Standards Aimed at Continuous Improvement Standardized Work Continuous Improvement Teams Job Rotation Just-In-Time In-Station Process Control Andon Boards Standards Knowledge Suggestion System Visual Factory and 5S Total Productive Maintenance Batch of One Capability Solid Support Level Production (Formulas, Policies) Solid Support Equipment Reliability (Rock) My Vision of TPS

  14. Definition ofLEAN MANUFACTURING SYSTEM The setting of STANDARDS aimed at continuous improvement by ALL team members through the constant elimination of waste.

  15. “Something used as a rule or ‘BASIS OF COMPARISON’ to evaluate quality, quantity, value, etc..” “Standards” from Webster

  16. These philosophies and tools provide for two major focuses of improvement and waste reduction: 1) Aimed at material/value stream change control. (JIT, Level Scheduling, Hijunka Boards and Kanban Cards) 2) Aimed at total team participation through individual/team control of quality and machines. (ISPC, Equipment TPM, Standard Work, Participation, Job Inst. Training.)

  17. A Key Tool Allowing Focus From The Entire Team Both are guided by cascading the annual planning process of goal setting aimed at waste reduction and total team participation enhancing the individual team members self satisfaction and company identity.

  18. Integration of Scanlon and Lean

  19. Toyota Is 50 Times More Scanlonized Than We Have Ever Thought Of Being And They Have Never Heard The Term ! Joanne DuQuette, VP of Human Resources, speaking to the Donnelly executive team

  20. Processing of product is the same for Mass and Lean companies Equipment purchased is the same for Mass and Lean companies People hired are the same for Mass and Lean What Makes The Difference An absolute belief that everyone wants to win The engagement of ALL the People An absolute commitment of constant Process Improvement You Do Not Want To Be Toyota, Just Achieve Toyota Results

  21. Achieving Lean Manufacturing Leadership Advanced Product Planning TPS T P S Marketing Product Design TPS Customer Financial Production Engineering TPS TPS Sales Tooling Engineering Corporate Management Team Manufacturing Customer TPS Human Resources TPS At lowest possible cost TPS Customer Product Engineering TPS Product Planning T P S TPS Advances Process R & D Product Launch Cycle Life Cycle Of Product (Updated Improved Standards) (Continuous Improvement)

  22. We believe that within every person is a deep-seated desire to realize his or her full potential through growth and development to make a difference and to be part of a winning team. What Makes a Winning Organization?

  23. “Brilliant process management is our strategy. We get brilliant results from average people managing brilliant processes. We observe that our competitors often get average (or worse) results from brilliant people managing broken processes.” Mr. Cho Vice Chairman of Toyota

  24. How Are We Doing With People Systems? Broad Research Has Shown Only About 25% Of Workers: • Are fully engaged in their work • Are enthusiastic about team and organization goals • Feel they are fully enabled to execute their goals • Have a clear line of sight between their work and their teams organizational goals • Work in an open trust-filled environment

  25. Lean Manufacturing System Lean Manufacturing System Just-In-Time Level Production Visual Delivery System Preventative Maintenance Machine Reliability Total Productive Maintenance Stop the Line Traffic Light System Mistake Proofing In-Station-Process-Control Total Employee Involvement Total Employee Involvement OR • Scanlon Principle • Identity • Competency • Participation • Equity

  26. Identity Purpose: Exceed Customer expectations by eliminating waste through a process of continuous improvement where people and teams including suppliers and customers are engaged in the process together and constantly striving for perfection. Do we believe that the process of becoming lean is permeating every part of our business and requiring a relentless pursuit to eliminate waste as a core value Business Reality: Waste exists in all parts of the business. If we understand “COST = SALES PRICE – PROFIT” and cost is the only controllable. Then are we understanding lean principles as the enabler for a “WAR ON WASTE”.

  27. Identity Right Job: Have we developed a vision of our long-term lean system? Have we developed an implementation plan and dedicated the resources to accomplish the task? Have we developed a cascading annual planning system and supportive review to align the organization for improvement? Job Right: Progress of continuous improvement can only be measured against results. Have we identified the right matrix (safety, quality, cost, productivity, delivery and morale)? Is the entire organization aligned with our lean principles and values?

  28. Participation Understand that becoming lean is a process that is done “With” people and “Not To” people. A total commitment to mutual trust and teams is an absolute essential part of the lean journey. Do we see lean principles as the main enable to accomplish meaningful, inspiring participation?

  29. “Two reasons appear then for looking toward the fuller involvement of people in their work. We need their help in reaching for market leadership, and the people are entitled to the consideration that recognizes their ability to help. This process of involvement is what we call participation.” Participation - John F. Donnelly, 1967

  30. Competence Develop leaders who understand and live the lean enterprise philosophies. Are we developing a process for continuous learning by refining personal and organizational understanding of the lean tools and applications of these tools through supportive review.

  31. Equity Recognize, with lean, we need to achieve a fair and balanced return for all the stakeholders. Work closely with suppliers to eliminate waste in the total value stream and treat suppliers with respect as long term partners.

  32. The executive leadership team not developing their lean system Develop your house and megaphone for the team to understand What I Have Found Will Fail • Functional departments leaders and team not understanding the lean enterprise and setting policies and methods to allow success

  33. Installing Kanban or Other Tools and State We Are Lean What I Have Found Will Fail • Hire Outside Consultants Without Your Lean • Vision • - Your team wants to please you and your company, • not outsiders. • Kaizen the Team Lean

  34. “The Toyota Production System is a production system, and a kanban method is merely a means for controlling the system.” Toyota: The Benchmark for World Manufacturing - Shigeo Shingo Source: Shigeo Shingo. A study of the Toyota Production System From an Industrial Engineering Viewpoint. Cambridge, MA. Productivity Press, 1989

  35. And the Worst One Is: What I Have Found Will Fail • Attempt Empowering Employees Without the Lean Tools • Assume Management Will Install Lean as You • Teach Them Without Resources • Part-Time Won’t Cut It • Do Nothing at All

  36. Closing Thoughts Lean without Scanlon Little Improvement Scanlon without Lean Limited Improvement Scanlon with integrated Lean = Perpetual Success

  37. There is a Roadmap “The Leadership Roadmap Book” Purchase on Amazon.com or Barnes and Noble.com Contact us at info@leanprocess.com

  38. Thank You For Your Time Questions and Discussion

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