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- European Regions for Innovative Productivity Applying Lean Practices in SMEs: A ”Bitesize” Methodology

- European Regions for Innovative Productivity Applying Lean Practices in SMEs: A ”Bitesize” Methodology. Daryl Powell Newcastle University Business School 24 th November 2011. The transnational network. Participants from 6 countries in the North-Sea region :

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- European Regions for Innovative Productivity Applying Lean Practices in SMEs: A ”Bitesize” Methodology

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  1. - European Regions for Innovative Productivity Applying Lean Practices in SMEs: A ”Bitesize” Methodology Daryl Powell Newcastle University Business School 24th November 2011
  2. The transnational network Participants from 6 countries in the North-Sea region: UK, Norway, Sweden, Germany, Netherlands, Belgium Dissemination to Baltic-Sea region
  3. Why SMEs? Although SMEs are the backbone of the EU economy, few are fulfilling their potential in terms of productivity and innovation: No widespread successful adoption of lean manufacturing Limited understanding of lean practices at every level within the organisation, resulting in a failure to embed the concept.
  4. The ERIP Methodology S1 Pre-Diagnostic S2 Diagnostic M1 Measurement Diagnose: - Focus areas & problems - PNA - VSM Organise improvement team Management & team expectations Assessment of necessary Lean knowledge & current status 1) Not Right First Time 2) Stock Turns 3) Value added per Person 4) Lead time 5) Schedule achievement 6) Overall Equipment Effectiveness Cc1 t/m Cc6 Improvement cycles Cc1 t/m Cc6 Improvement cycles Cc1 t/m Cc6 Improvement cycles S3 Workshop S4 Yearly action plan Cc1 t/m Cc6 Improvement cycles Lean Production Workshop Lean Management training Goals from S2: diagnose in a timetable for 1-1,5 year - 2-3 improvement cycles - 1-3 months per event Cc1: Problem identification Cc2: Lean basics Cc3: Diagnostic Cc4: Workshop Cc5: Follow up Cc6: Review M2 : Measurement M2 Halfway Measure M3 Final Measure S6 Final presentation
  5. The ERIP “Showcase” Methodology The “Showcase” Methodology essentially consists of 3 stages: Pre-Diagnostic Diagnostic Workshop
  6. The ”Showcase” Methodology The Original ERIP ”Showcase” Methodology identified 3 stages: 1-day Pre-diagnostic 3-day Diagnostic Event 5-day Workshop In Norway, this was problematic during recruitment of SMEs, as it was ”impossible” for the SME to free up resources for the 3-day and 5-day blocks. A ”Bitesize” approach was required…
  7. Pre-diagnostic A semi structured “Productivity Needs Analysis” interview of the management team yields an assessment of the operational excellence of the SME Management expectations are considered (if there are any immediately important areas for focus) 0,5 days
  8. Diagnostic Aims to achieve buy-in and involvement from the SME core team who will be working on the improvement cycles Teaching points focus on indentifying 7 wastes and Value added and non-value added activities Considers 6 core ERIP measures Creation of Current-state VSM Poorest results will become the focus for the workshop 0,5 days 1 day 1 day
  9. Workshop Uses Plan-Do-Check-Act (PDCA) cycle to focus on improving the poorest of the measures / problem area from VSM Creation of future-state VSM Teach points focus on lean tools to identify the areas for improvement and to countermeasure the problems 0,5 day 1 day 1 day 1 day 1 day ++ 1 day
  10. Norwegian IPC structure
  11. Hagen Norwegian IPC structure Norplasta CTM Lyng Noca Teeness SMART-LOG Benteler NCEI
  12. Based in Trondheim, Norway Our distinctive character The SINTEF Group is Scandinavia's largest independent research institution, with international top level expertise in several areas of research. SINTEF has over 2000 employees from 68 countries SINTEF cooperate closely with industry, universities and authorities, and have a combined research and business culture. Our vision “Technology for a better society” Our role Create value through research and innovation, and offer concrete solutions for sustainable development SINTEF creates value through knowledge, research and innovation, and develop concrete solutions for sustainable development
  13. Related project activities in SINTEF: NCEI Lean Collaboration project between 4 companies (Kongsberg Maritime, Noca, Roxar and Fugro Oceanor and 2 competence partners (SINTEF, HiST) Goal: ”To increase the competitiveness of the partners by more efficient production through employing tailored techniques from lean manufacturing and positive change in company culture towards continuous improvement”
  14. Department of Production and Quality Engineering (IPK) Works on the point of intersection between technology and management, with issues tied to operations, industrialization and production, along with quality and safety. Three primary research groups covering Production Systems; Production Management; and Reliability, Availability, Maintainability and Safety (RAMS). Relevant further education programme in Lean Manufacturing Number of employees: 2,600 Number of students enrolled: approximately 20,000
  15. Hagen Exemplar companies Norplasta CTM Lyng Noca Teeness SMART-LOG Benteler NCEI
  16. Exemplar company: Teeness Produce Machining Tools Not ”The Factory” – but ”The School” Own Philosophy: 5M Man Machine Methods Material Milieu (environment)
  17. Exemplar company: Benteler Automotive Turnover (2010), - MNOK 460 employees producer of aluminium bumper beams and crash protection systems Tools / Techniques Goals
  18. Hagen Methodology and SME test companies Norplasta CTM Lyng Noca Teeness SMART-LOG Benteler NCEI
  19. SME test company: Noca Turnover (2010), Approx 90 MNOK 50 employees Producer of printed circuit boards and electronic products What we did: Value Stream mapping 5S activity SMED Workshop Results Lean steering group created with an identified lean champion and 5 change agents on the shopfloor Improvement in visual management due to 5S activity – toolboards etc. Visual management will continue with creation of performance dashboards. SMED activity planned for 2nd quarter 2011.
  20. SME test company: Hagen Turnover approx 100 MNOK (2010), 98 employees Producer of staircases 90% to professional house builders, 5% export (mainly to Sweden) What we did: Automating the production by use of modern technology: CNC- machine, Robot, Internal transport, RFID, Shop floor system Started the process of planning for 5S implementation projects in 2011 Results Building the technological foundation for Lean production Fully implementing the invested production line in Q1 2011 Further testing of Lean techniques
  21. SME test company: ASTI What we did: Diagnostic activity 6 ERIP Measures Value Stream mapping Results ASTI are currently designing future-state VSM and collecting data Re. 6 measures Turnover (2009), Approx 56 MNOK 50 employees Producer of printed circuit boards and electronic products 22
  22. SME test company: Norplasta Turnover (2010), 88 MNOK, 68 employees (average age = 49 years old) Producer of moulded plastic boxes, trays, and food packaging (50% to food industry) Injection moulding, and branding with hot stamp or inmould labelling (IML) Experience with Lean 5S started as a project mid-August 2010, will be implemented by May 2011 ERIP Selected a focus area: Factory 2, Machine 132 Analysis of data shows that machine downtime is an area for improvement Downtime due to Repair of tooling was the focus area Tool 3003 became the priority tool Detailed description of tooling issues will be recorded throughout the next two months
  23. SME test company: CTM Lyng Turnover approx 58 Mill NOK (2009), 45 employees Producer of electronic circut boards for Smart House Control Systems What we did: Pre-diagnostic Walking the process Lean philosophy Further work Analyse value streams Implementing 5 S in selected sections of the production lines Alvin Berg CEO, Ståle Sund, production manager and Daryl Powell, NTNU & SINTEF

  24. Some results…

  25. Experiences and concluding remarks Collaborate with others – other people have similar issues. Sharing experiences, challenges and solutions with other companies have proved useful – different industries, but similar challenges Use sufficient time for the staring up the process As the groups have gotten to know each other: trust among participants have increased, better discussions Have some form of external pressure for internal improvement programmes If not, it is harder to maintain steam and momentum in the process Learn it, don’t buy it Build the competence of you staff. If not, it is harder to sustain a Lean organisation with continuous improvements
  26. 29
  27. PhD Research Project: ERP Support for lean production Exploratory Case studies Action Research (Norway) Simultaneous implementation of ERP and lean principles Multiple Case Study (Netherlands) ERP support for pull production in SMEs
  28. Questions or comments? Daryl Powell (Research Associate & PhD Candidate), ERIP Project Coordinator, Norway E-mail: daryl.j.powell@ntnu.no Phone: +47 73 59 39 83
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