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2. 2
Lean Enterprise – Plant Managers Workshops
Agenda
DAY 1:
09:00 - 9:30 Intro to Lean Enterprise & fit into Henkel Strategy
09:30 - 10:00 Safety
Risk Assessments
Safety Walkarounds
Safety Assessments
Near Miss Reporting
Safety Training
10:00 - 11:00 Safety Walkaround & Site Visit
11:00 - 12:30 1st production Round
12:30 -13:15 Lunch
13:15 - 13:45 Bangpakong scoring - Training
13:45 – 14:45 All Sites Scoring
14: 45 – 15:30 People and Flow
5S, Standardized Work
Changeover time
Value Stream Mapping, Pull System
A3
15:30 - 16:30 A3 Coaching Exercise & A3 Proposal for game
16:30 – 17:30 Scoring Breakout Session
DAY 2:
09:00 – 10:15 People, Flow and Quality
TPM, OEE
Problem Solving
FMEA, Management of Change, Control Plan
Standard KPI’s and Scorecard, Communication
Boards, Visual Factory
10:15 – 11:15 2nd production Round
11:15 - 12:15 Scoring Breakout Session
12:15 -13:00 Lunch
13:00 – 13:45 Driving and Sustaining Results
Error Proofing
Statistical Controls, Six Sigma, CI Workshops
Mentoring & Coaching
Qualification Matrix, Performance
Remuneration
13:45 - 14:45 Scoring Breakout Session
14:45 – 16:00 A3 Proposal & Final Competition
16:00 - 16:45 Roadmap & Next Steps
16:45 - 17:15 Feed-back & Wrap up
2
3. 3
Objectives
By the end of this session, participants will be able to
• Demonstrate measurable improvements in the Lean Enterprise
Model Factory KPI’s
• Show understanding of A3 tool by using it to organize and drive the
Model Factory improvements
• Complete Assessments on all 27 Lean Enterprise Elements for your
Site (Plant Managers only)
3
4. 4
Lean is everyone
improving safety,
quality and
productivity for the
long term,
through engagement
and empowerment.
What is Lean?
Lean is getting quality
product to our
customers faster,
with less cost
and reduced waste.
We value, challenge
and reward our
people.
We put our
customers at the
center of what we do.
We drive excellent
financial
performance.
We are committed to
leadership in
sustainability.
Lean Enterprise gives us the tools to realize our Vision and Values.
We build our future on
our family-business
foundation.
5. 5
First we need to identity what is waste and what is not…
Value Added Work
Any process that changes the nature, shape or
characteristic of the product in line with the customer
requirements. This is what we are selling and our
customer pays for!
Non-Value Added Work
Necessary under current conditions but does not
increase product value.
Ex: Inspection, Tool changes, Clean-outs, Maintenance,
controlling activities.
Waste
This is activity or materials that no one will pay for apart
from US!
Evaluating the Work
6. 6
Waste Elimination
• To aide the memorization of the Seven Types of Waste, use the
acronym TIMWOOD:
• Transportation
• Inventory
• Motion
• Waiting
• Over Processing
• Overproduction
• Defects
7 FORMS OF
WASTE
7. 7
3 Success Cases
Danaher
Danaher Business System
• A set of management tools borrowed from Toyota Production System
• 4 P’s (People – Plan – Process – Performance)
7
8. 8
3 Success Cases
Danaher
Source: Elliott Major (VP Operations Kollmorgen), Danaher Business System,
http://www.cpe.vt.edu/gsm/presentations/ElliottMajor-Kollmorgen.pdf, accessed on May 7, 2013
8
10. 10
3 Success Cases
Wiremold
Metric Improvement
Improvement
Rate/Year*
Lead Time 42 days to 2 days 25%
Customer Service 50% to 98% 9%
Productivity 162% 6%
Sales 400% 19%
EBITDA Margin 6.2% to 20.8% 16%
Gross Profit 38% to 51% 4%
Working Capital / Sales 21.8% to 6.7% 14%
Inventory Turns 3 to 18 25%
Enterprise Value 2467% 49%
* Compounded annual rate over 9 years
10
12. 12
Lean at Henkel
Lean Enterprise Vision
CUSTOMER
Dimensions
1. Safe
Environment
2. People
Engagement
3. Built in
Quality
4. Optimized
Flow
Actions
• Value Stream
Mapping
• Continuous
Improvement
Workshops
• Six Sigma Projects
• Best Practice
Replication
Voice of our customers
Voice of our people
Elements
12
13. 13
Driving the 4 Dimensions
Dimensions and their Element Clusters
• Risk assessments
• Safety walkarounds
• Safety Assessments
• Safety Trainings
• Near Miss Reporting
Safe Environment
• Problem Solving
• Failure Mode & Effect Analysis
• 6 Sigma
• Control Plan
• Statistical Controls
• Error Proofing
Built in Quality
• Value Stream Mapping
• Continuous Improvement
Workshops
• Pull System
• Total Productive Maintenance
• Overall Equipment Effectiveness
• Change Over Time
• Visual Factory
Optimized Flow
People Engagement
• A3
• Mentoring & Coaching
• Qualification Matrix
• Performance Remuneration
• 5S
• Management of Change
• Standardized Work
• Standard KPIs and Scorecard
• Communication Boards
Foundation Roll Out (in red) – Recommended Starting Point
Next focus (in black)
13
14. 14
Lean at Henkel
Fit to Adhesive Technologies Strategy
2016 Ambition
Outperform Globalize
Simplify Inspire
A global leader
in brands
and technologies
NES [bn.€]
11
EBIT [bn.€]
2
14
15. 15
Operations & Supply Chain
Our global ambition for 2018
Safety
0
(Incidents)
Service
100%
(ECSL)
Cost
10%
(TSCC)
Benchmark across all dimensions - setting industry standards
Inventory
-20%
(Value)
Quality
-50%
(Complaints
Product &
Logistics)
15
17. 17
Reporting – Assessment of Sites and Identification
of gaps
Region 1 Region 2 Region 3 Region 5
Built in
Quality
Optimized
Flow
People
Engagement
1.2 2 2 1
1.2
1.8 1.5 2.2
1.4 1.5 1.3
1.8 2.3
2.8 0.9 3
2.1 3 0.5
1 3
1 3 1.6
1.1 1.9 1.7
1 1.5
1.3 1.6 3
1.1 3 2.3
1 2.3
1 1.3
1.5 1.2
2.1
3 1.6
3
1.5
3
1.1
1.5
1.9
3
3
Region/ 4
1.4 … … … …
Mean value
Spider overview
1.2
Element
Dimension
Plant level
Region
0
1
2
3
Safe Environment
Built in Quality
Optimized Flow
People Engagement
Plan
Actual
Safe
Environment
1
0
0
3
2
3
3
2
3
1
0
3
3
1
0
2
2
3
3
3
0
0
0
0
3 0
0
For mean value calculation: Same weight for all tools/elements/plants
18. 18
What is People Engagement ?
1. It’s Ownership, Action and Improvement
2. It’s Measurable via activities and participation
3. True engagement drives higher performance
4. Employee satisfaction and motivation are secondary outcomes
• Employee View - Develop, Empower, Expose, Reward & Recognize
• Job enrichment not enlargement
5. Breaks from dependency of manager culture…Manager changes too
6. Need engagement plan and strategy
19. 19
Your Roles
Lean Leaders – At The Shop Floor (Gemba)
1. Daily Management at the Point of Adding Value
2. Go and See the Shop Floor (Gemba) to grasp actual condition
3. Strong, Visible Commitment to Lean Enterprise
4. People do what Upper Management wants
Tell them on the Shop Floor - 80 % of our resources are there
5. Servant Leadership… ask “How can I support your plan?”
6. Primary Focus of Attention… Fix Operator Struggles
20. 20
Driving the 4 Dimensions
Dimensions and their Element Clusters
• Risk assessments
• Safety walkarounds
• Safety Assessments
• Safety Trainings
• Near Miss Reporting
Safe Environment
• Problem Solving
• Failure Mode & Effect Analysis
• 6 Sigma
• Control Plan
• Statistical Controls
• Error Proofing
Built in Quality
• Value Stream Mapping
• Continuous Improvement
Workshops
• Pull System
• Total Productive Maintenance
• Overall Equipment Effectiveness
• Change Over Time
• Visual Factory
Optimized Flow
People Engagement
• A3
• Mentoring & Coaching
• Qualification Matrix
• Performance Remuneration
• 5S
• Management of Change
• Standardized Work
• Standard KPIs and Scorecard
• Communication Boards
Foundation Roll Out (in red) – Recommended Starting Point
Next focus (in black)
20
21. 21
Benefits
• Safe workplace
• Hazards in the workplace assessed
• Controls in place to reduce/
eliminate hazards
Risk Assessments
Levels of Excellence Drivers:
• Perform task assessments
• Percent of tasks/chemicals/
equipment/processes having
risk assessments
• Action closed on time
• Risk Assessment schedule
published
22. 22
Benefits
• Fewer injuries!
• Fewer unsafe situations!
• Reinforces commitment to safety
EXAMPLE:
Safety Walkarounds
Levels of Excellence Drivers:
• Go to the place where the work
is being performed and DO them
• Follow the standard template
(SHE.com)
• Do MORE of them
Stop!
No
PPE!
How can this
be prevented
in the future?
23. 23
Benefits
• Increasing safe behavior
• Strengthening safety awareness
• Reducing injuries
• Eliminating at-risk behavior
• Sharing best practices
EXAMPLE:
External requirements: OHSAS
18001 Safety, ISO 14001
Environmental
Internal requirements: SHE standards
Safety Assessments
Levels of Excellence Drivers:
• Perform Audits
• Drive to eliminate non-
conformities
24. 24
Benefits
• Minimize accidents
• Identify weaknesses
• Heighten awareness
• Proactive commitment
• Open communication
• Encourage feedback
• EXAMPLE:
Near Miss Reporting
Levels of Excellence Drivers:
• Near misses are being reported
• Formal process in place
• Top management is involved
• Corrective action is being taken
25. 25
Benefits
• Reduce injuries
• Avoid property damage
• Prevent legal liabilities
• Promote and effective safety
culture
EXAMPLE: make it visual
Safety Training
Levels of Excellence Drivers:
• Documented training
• Meeting training schedule
• Everyone participates
Before After
Chemical Splash Risk: Inadequate PPE
Back injury Risk: poor ergonomics while
tilting drum
PPE Improved
Hand Pump used ergonomics risk
Reduced
26. 26
• Where in your site would you begin with this Element?
• Can you give an example where this Element could lead to a substantial
improvement?
• Do you have an example of a corrective action you’ve taken resulting from
one of these Elements?
Safety Dimension – Reflection Questions
27. 27
GEMBA – Site Safety Walkaround
Objective
• Use the template to look at the existing operations
• Try to identify places where people are doing the right thing
• Try to identify people that are respecting the rules
• Positive reinforcement is more effective than negative
• Try to identify opportunities for improvement.
28. 28
OVERVIEW
• Get familiar with the setup
• Define roles
• Run the simulation
• Review our KPI’s
• Review the wastes
• Review safety walkaround feedback
Let’s go to the Gemba!
1st Production Round
29. 29
• Basic Instruction on How to Score
• Score all Safety Dimension Elements
• We will score this site together and then all the plant managers will be
required to score their own.
Scoring Breakout Session
30. 30
Driving the 4 Dimensions
Dimensions and their Element Clusters
• Risk assessments
• Safety walkarounds
• Safety Assessments
• Safety Trainings
• Near Miss Reporting
Safe Environment
• Problem Solving
• Failure Mode & Effect Analysis
• 6 Sigma
• Control Plan
• Statistical Controls
• Error Proofing
Built in Quality
• Value Stream Mapping
• Continuous Improvement
Workshops
• Pull System
• Total Productive Maintenance
• Overall Equipment Effectiveness
• Change Over Time
• Visual Factory
Optimized Flow
People Engagement
• A3
• Mentoring & Coaching
• Qualification Matrix
• Performance Remuneration
• 5S
• Management of Change
• Standardized Work
• Standard KPIs and Scorecard
• Communication Boards
Foundation Roll Out (in red) – Recommended Starting Point
Next focus (in black)
30
31. 31
What is it?
• A system to make your job easier,
safer and more efficient by doing:
Sorting, Set in Order, Systematic
Cleaning, Standardizing,
Sustaining
5S
Benefits
• Risk reduction (SHE & Q)
• Employee engagement
and culture change
• Space saving
• Efficiency of movement
32. 32
How do I do it?
• Learn by doing – start with a 5S
workshop
5S
Levels of Excellence Drivers:
• Choose your site expert
• Divide your site into 5S areas
• Train your people with
workshops
• Visual management, sustained
with team agreements and
action list
• Regular cleaning for inspection
schedules
BEFORE
AFTER
33. 33
What is it?
• a consistent, documented method
for performing a series of tasks
consistently, and in-line with
customer demand
Standardized Work
Benefits
• Efficient and repeatable work
• Eliminate waste
• Make work safer and easier
• Clarify the process
• Document thebest known
method
• Ensure operating consistency
• Use for employee training
• Provide baseline for
improvement
Key Links to other Elements
• 5S
34. 34
How do I do it?
Standardized Work, continued
Levels of
Excellence
Drivers:
• Perform Work
Element Analysis
• Show Cycle
Time reduction
• Review multiple
times to drive out
more waste
• Audit
• Train
• Identify improvement
opportunities
• Audit
• Train
• Identify improvement
opportunities
Improvements
(Kaizens)
Department: Project# or QN#: Completion Date:
Kaizen Type Safety Waste: Motion Overproduction
Quality Transportation Waiting Defects
Inventory Overprocessing
A Kaizen must address Safety, Quality or Waste to quantify the benefit of the improvement.
Before After
Check all that apply
Kaizen
P
Department: Project# or QN#: Completion Date:
Kaizen Type Safety Waste: Motion Overproduction
Quality Transportation Waiting Defects
Inventory Overprocessing
A Kaizen must address Safety, Quality or Waste to quantify the benefit of the improvement.
Before After
Check all that apply
Kaizen
P
Department: Project# or QN#: Completion Date:
Kaizen Type Safety Waste: Motion Overproduction
Quality Transportation Waiting Defects
Inventory Overprocessing
A Kaizen must address Safety, Quality or Waste to quantify the benefit of the improvement.
Before After
Check all that apply
Kaizen
P
Department: Project# or QN#: Completion Date:
Kaizen Type Safety Waste: Motion Overproduction
Quality Transportation Waiting Defects
Inventory Overprocessing
A Kaizen must address Safety, Quality or Waste to quantify the benefit of the improvement.
Before After
Check all that apply
Kaizen
P
Improvements
(Kaizens)
Department: Project# or QN#: Completion Date:
Kaizen Type Safety Waste: Motion Overproduction
Quality Transportation Waiting Defects
Inventory Overprocessing
A Kaizen must address Safety, Quality or Waste to quantify the benefit of the improvement.
Before After
Check all that apply
Kaizen
P
Department: Project# or QN#: Completion Date:
Kaizen Type Safety Waste: Motion Overproduction
Quality Transportation Waiting Defects
Inventory Overprocessing
A Kaizen must address Safety, Quality or Waste to quantify the benefit of the improvement.
Before After
Check all that apply
Kaizen
P
Department: Project# or QN#: Completion Date:
Kaizen Type Safety Waste: Motion Overproduction
Quality Transportation Waiting Defects
Inventory Overprocessing
A Kaizen must address Safety, Quality or Waste to quantify the benefit of the improvement.
Before After
Check all that apply
Kaizen
P
Department: Project# or QN#: Completion Date:
Kaizen Type Safety Waste: Motion Overproduction
Quality Transportation Waiting Defects
Inventory Overprocessing
A Kaizen must address Safety, Quality or Waste to quantify the benefit of the improvement.
Before After
Check all that apply
Kaizen
P
Time Study
Motion
Analysis
Work Element
Analysis
S tep #
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
5 5 5
35 40
5 5
45 50
5 5
65
5 5
55 60 70
5 5
75 80
5 5
85 90
5 5
95 100
5 5
105 110
5 5
115 120
5 5
125 130
5 5
135 140
5 5
145 150
5 5
155 160
25 30
C ycl
e Ti
m e:
5 5
5 5
D ate
P repared:
5
Total
:
10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 105 140 145
110 115 120 125 150 155 160
P repared B y: R evi
ew ed B y:
130 135
U ni
ts/
S hi
ft:
S tep D escri
pti
on
W
al
k
A
ut
o
M
anual
5
K ey:
O perati
on N am e:
W ork G roup:
S tandard W ork C om bi
nati
on S heet
5 10 15 20
Ti
m e
TaktTi
m e:
P roductN am e /# :
O perator : of
M anual A ut
om at
i
c W al
ki
ng W ai
t
i
ng
From:
To:
Symbol Number of WIP
Quality Check Takt Time Cycle Time Operator
Number
Safety
Precaution
Standard Work In Process
Team Leader: Supervisor:
Standard
Work Chart
Date: Prepared by: Dept./Location:
Time Study
Motion
Analysis
Work Element
Analysis
S tep #
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
5 5 5
35 40
5 5
45 50
5 5
65
5 5
55 60 70
5 5
75 80
5 5
85 90
5 5
95 100
5 5
105 110
5 5
115 120
5 5
125 130
5 5
135 140
5 5
145 150
5 5
155 160
25 30
C ycl
e Ti
m e:
5 5
5 5
D ate
P repared:
5
Total
:
10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 105 140 145
110 115 120 125 150 155 160
P repared B y: R evi
ew ed B y:
130 135
U ni
ts/
S hi
ft:
S tep D escri
pti
on
W
al
k
A
ut
o
M
anual
5
K ey:
O perati
on N am e:
W ork G roup:
S tandard W ork C om bi
nati
on S heet
5 10 15 20
Ti
m e
TaktTi
m e:
P roductN am e /# :
O perator : of
M anual A ut
om at
i
c W al
ki
ng W ai
t
i
ng
From:
To:
Symbol Number of WIP
Quality Check Takt Time Cycle Time Operator
Number
Safety
Precaution
Standard Work In Process
Team Leader: Supervisor:
Standard
Work Chart
Date: Prepared by: Dept./Location:
S tep #
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
5 5 5
35 40
5 5
45 50
5 5
65
5 5
55 60 70
5 5
75 80
5 5
85 90
5 5
95 100
5 5
105 110
5 5
115 120
5 5
125 130
5 5
135 140
5 5
145 150
5 5
155 160
25 30
C ycl
e Ti
m e:
5 5
5 5
D ate
P repared:
5
Total
:
10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 105 140 145
110 115 120 125 150 155 160
P repared B y: R evi
ew ed B y:
130 135
U ni
ts/
S hi
ft:
S tep D escri
pti
on
W
al
k
A
ut
o
M
anual
5
K ey:
O perati
on N am e:
W ork G roup:
S tandard W ork C om bi
nati
on S heet
5 10 15 20
Ti
m e
TaktTi
m e:
P roductN am e /# :
O perator : of
M anual A ut
om at
i
c W al
ki
ng W ai
t
i
ng
From:
To:
Symbol Number of WIP
Quality Check Takt Time Cycle Time Operator
Number
Safety
Precaution
Standard Work In Process
Team Leader: Supervisor:
Standard
Work Chart
Date: Prepared by: Dept./Location:
Quality
Safety
Sampling Tool
STD WIP
1
2
3
4
5
6
7
8
9
10
TOTAL:
STD WIP
Team
Leader:
Dept./Location:
Prepared by:
Notes Time Takt Time
Supervisor:
Required Qty:
Cycle Time
Job Instruction Sheet Part#
Part Name
Step
# Quality Check
Date:
Job Instruction Sheet
Quality
Safety
Sampling Tool
STD WIP
1
2
3
4
5
6
7
8
9
10
TOTAL:
STD WIP
Team
Leader:
Dept./Location:
Prepared by:
Notes Time Takt Time
Supervisor:
Required Qty:
Cycle Time
Job Instruction Sheet Part#
Part Name
Step
# Quality Check
Date:
Job Instruction Sheet
Standard Work Combination
Table and Chart
S tep #
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
5 5 5
35 40
5 5
45 50
5 5
65
5 5
55 60 70
5 5
75 80
5 5
85 90
5 5
95 100
5 5
105 110
5 5
115 120
5 5
125 130
5 5
135 140
5 5
145 150
5 5
155 160
25 30
C ycl
e Ti
m e:
5 5
5 5
D ate
P repared:
5
Total
:
10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 105 140 145
110 115 120 125 150 155 160
P repared B y: R evi
ew ed B y:
130 135
U ni
ts/
S hi
ft:
S tep D escri
pti
on
W
al
k
A
ut
o
M
anual
5
K ey:
O perati
on N am e:
W ork G roup:
S tandard W ork C om bi
nati
on S heet
5 10 15 20
Ti
m e
TaktTi
m e:
P roductN am e /# :
O perator : of
M anual A ut
om at
i
c W al
ki
ng W ai
t
i
ng
From:
To:
Symbol Number of WIP
Quality Check Takt Time Cycle Time Operator
Number
Safety
Precaution
Standard Work In Process
Team Leader: Supervisor:
Standard
Work Chart
Date: Prepared by: Dept./Location:
Standard Work Combination
Table and Chart
S tep #
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
5 5 5
35 40
5 5
45 50
5 5
65
5 5
55 60 70
5 5
75 80
5 5
85 90
5 5
95 100
5 5
105 110
5 5
115 120
5 5
125 130
5 5
135 140
5 5
145 150
5 5
155 160
25 30
C ycl
e Ti
m e:
5 5
5 5
D ate
P repared:
5
Total
:
10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 105 140 145
110 115 120 125 150 155 160
P repared B y: R evi
ew ed B y:
130 135
U ni
ts/
S hi
ft:
S tep D escri
pti
on
W
al
k
A
ut
o
M
anual
5
K ey:
O perati
on N am e:
W ork G roup:
S tandard W ork C om bi
nati
on S heet
5 10 15 20
Ti
m e
TaktTi
m e:
P roductN am e /# :
O perator : of
M anual A ut
om at
i
c W al
ki
ng W ai
t
i
ng
From:
To:
Symbol Number of WIP
Quality Check Takt Time Cycle Time Operator
Number
Safety
Precaution
Standard Work In Process
Team Leader: Supervisor:
Standard
Work Chart
Date: Prepared by: Dept./Location:
S tep #
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
5 5 5
35 40
5 5
45 50
5 5
65
5 5
55 60 70
5 5
75 80
5 5
85 90
5 5
95 100
5 5
105 110
5 5
115 120
5 5
125 130
5 5
135 140
5 5
145 150
5 5
155 160
25 30
C ycl
e Ti
m e:
5 5
5 5
D ate
P repared:
5
Total
:
10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 105 140 145
110 115 120 125 150 155 160
P repared B y: R evi
ew ed B y:
130 135
U ni
ts/
S hi
ft:
S tep D escri
pti
on
W
al
k
A
ut
o
M
anual
5
K ey:
O perati
on N am e:
W ork G roup:
S tandard W ork C om bi
nati
on S heet
5 10 15 20
Ti
m e
TaktTi
m e:
P roductN am e /# :
O perator : of
M anual A ut
om at
i
c W al
ki
ng W ai
t
i
ng
From:
To:
Symbol Number of WIP
Quality Check Takt Time Cycle Time Operator
Number
Safety
Precaution
Standard Work In Process
Team Leader: Supervisor:
Standard
Work Chart
Date: Prepared by: Dept./Location:
37. 37
What is it?
• The time that is required to change
the equipment setup from one
article to an other (last good part to
first good part).
• A Method to continuously improve
the c/o Activities at the equipment.
Change Over Time
Benefits
• Greater flexibility
• Reduction of change over
losses (technical losses)
• OTIF Improvement due to
higher Flexibility (Lot Size
reduction)
• Less CAPEX needs
Key Links to other Elements
• MOC
• 5S
• TPM
• OEE
“We can have
your car ready in
four hours, Sir…”
38. 38
How do we do it?
• Select pilot equipment
• Analyze Change Over Time and
Activities
• Separate external and internal
activities and find Optimum
• Define new improved Change Over
Standards and train Staff
• Implement a System
to follow up Change
Over Time
• Continue improving
by use of PDCA
cycles
Change Over Time, continued
Levels of Excellence Drivers:
• System to follow up Change
Over Times is in Place
• Change Over Activities are
standardized
• Change Over Time is reduced
by Continuous Improvement
Workshops
39. 39
What is it?
• a method to visualise a process
from end to end, showing all
material and information flows
• Provides relevant process data, e.g.
production time, inventory levels,
etc
Value Stream Mapping
Benefits
• Shows improvement potential
• Highlight activities that add
no value to the Customer
• Basis for the Roadmap
• Allows development of a
Lean Future State
• Makes improvements
measurable
Key Links to other Elements
• Pull System
• A3
• Six Sigma, CI Workshops
40. 40
How do I do it?
• Follow material on Shop Floor and
information flow, e.g. planning
process
• Collect all relevant data and
handling steps
EXAMPLE:
Value Stream Mapping, continued
Levels of Excellence Drivers:
• Map Current State product
families
• A3 Projects and Action Plans
completed on time
• Visual Management in place
Value-
add vs.
Non-
value
add
41. 42
What is it?
• A system that controls the material
flow (e.g. raws, articles,
consumables, spare parts) by the
demand of the next process step.
• Basis for just in time (JIT)
production
• This is achieved by reversing the
information flow to pull the material
Pull System
Benefits
• Reduce and control inventory
• Reduced throughput time
leads to more flexibility
• Reduction of required space
• Quality problems not hidden
in inventory
• JIT production (right part,
right quality, right time, right
quantity, right place.)
Key Links to other Elements
• VSM
• 5S
Push
Pull
42. 43
How do I do it?
• Define standardized amount
work in progress (WIP)
• Define communication between
process steps (as visual as
possible) e.g. supermarket or
Kanban methods
Pull System, continued
Levels of Excellence Drivers:
• Increase product availability to
improve on time shipments
• Reduce inventory
• Implement Kanban systems
Pull system
Pull system
Precision control
system
SAP
43. 44
What is it?
• …more than just a standard paper
size. It is a template, and
• a way of structured thinking
• Guides and visualizes the solution
process
• Can be handwritten or electronic
and used by everyone.
A3
Benefits
• The format simplifies the
solution process
• Transparency
• Smart documentation
• Tracking until final solution
Key Links to other Elements
• Value Stream Mapping
• Problem Solving
• Management of change
• Near miss reporting
• CI workshops and 6Sigma
44. 45
How do I do it?
• Following the structure of the form
• Keep wording SMART
• Apply problem solving techniques to
find root cause
• Update until
successful
implementation.
A3, continued
Levels of Excellence
Drivers:
• Start using in a team
approach
• Clear documentation
and follow up to
completion
• Link it with VSM
• Transform into Control
plans
45. 46
A3 Exercise
• A3 Exercise
• Split into teams
• Reference Standardized Work and VSM exercises
• Use A3 in your team to drive improvements
• Plant Manager to provide restrictions
• Conduct next Production run, then review KPI’s, etc.
46. 47
• Score all People and Flow Dimension Elements reviewed
• 5S
• Standardized Work
• Value Stream Mapping
• Pull System
• Changeover Time
• A3
• Review and Calibration of our Scores
Scoring Breakout Session
47. 48
Driving the 4 Dimensions
Dimensions and their Element Clusters
• Risk assessments
• Safety walkarounds
• Safety Assessments
• Safety Trainings
• Near Miss Reporting
Safe Environment
• Problem Solving
• Failure Mode & Effect Analysis
• 6 Sigma
• Control Plan
• Statistical Controls
• Error Proofing
Built in Quality
• Value Stream Mapping
• Continuous Improvement
Workshops
• Pull System
• Total Productive Maintenance
• Overall Equipment Effectiveness
• Change Over Time
• Visual Factory
Optimized Flow
People Engagement
• A3
• Mentoring & Coaching
• Qualification Matrix
• Performance Remuneration
• 5S
• Management of Change
• Standardized Work
• Standard KPIs and Scorecard
• Communication Boards
Foundation Roll Out (in red) – Recommended Starting Point
Next focus (in black)
48
48. 49
What is it?
• Program to continuously improve
the condition and availability of
equipment
• Involvement and engagement of
employees in maintenance and
asset care activities
• Apply standard to design or
specification of all new equipment
TPM – Total Productive Maintenance
Benefits
• Lower CAPEX needs
• Scrap reduction
• Quality improvement
• Lower maintenance cost
• Lower downtime
49. 50
How do I do it?
• Select pilot equipment
• Top to bottom cleaning with
operators & management
• Detect and repair technical defects
• Define TPM tasks, required spare
parts and preventive maintenance
in a team
• Continue improving by use of
PDCA cycles
TPM, continued Levels of Excellence Drivers:
• Operators are involved in
maintenance of machines and
equipment
• Root causes of losses are
systematically detected
• Preventive maintenance is
planned based on the facts &
figures
• New machinery is planned
based on the data and
experience
50. 51
What is it?
• OEE is a KPI to measure and
understand the effectiveness of the
equipment.
• The objective is to
reduce production
losses and produce
profitable products.
OEE – Overall Equipment Effectiveness
Benefits
• Greater system availability
• Better performance and
quality
• Reduced manufacturing costs
51. 52
How do I do it?
• Select pilot equipment
• Establish system to document
downtimes
• Implement standard calculation for
OEE
• Continue improving by use of
PDCA cycles
OEE, continued
Levels of Excellence Drivers:
• Weekly analysis are done
• OEE / PDCA cycle is in place
and running
• A trend of increasing OEE is
evident
• OEE implementation for all
bottleneck machines
Collection
of Data
OEE Discussion/
Mapping
OEE Optimizing Action/Improving
Collection
of Data
OEE Discussion/
Mapping
OEE Optimizing Action/Improving
52. 53
What is it?
• A key element of a learning
organization is to deeply reflect on
existing problems
• Set of tools to understand and fix
problems
• The tool to be applied depends on
the complexity of the problem
Problem solving
Benefits
• Standardized and structured
way of problem solving.
• Detect and eliminate the real
root cause of the problem.
• Prevent repetition of issues
and problems
• Reduction of e.g. offspec
product, scrap, customer
complaints
Key Links to other Elements
• Control Plan
• A3
• CI workshops, Six Sigma
Simple Complex
Problem is:
A3 6 Sigma
8D
Use this tool:
At the gemba In the office
Where:
30 mins 3 months
Takes:
Fishbone diagram, 5Why-Analysis,
One point lesson, 5W 2H
Apply technique:
53. 54
How do I do it?
• Describe problem in detail using
the A3 mode of thinking
• Select appropriate problem solving
tool to address magnitude of issue
• Do not stop at immediate causes
• Ensure sustainable solutions
Problem solving, continued
Levels of Excellence Drivers:
• Problem solving is done by
multidisciplinary teams.
• Problem solving and its
effectiveness (follow-up) are
documented.
• Problem solving tools are used
for customer complaints and all
internal deviations.
Fishbone
PROBLEM
People Materials Machine
Method Environment Measurement
5-Why
54. 55
What is it?
• An analytical method to anticipate
all potential deviations and address
them systematically
• A Continuous Improvement tool
• A living document, applied to
products, processes and systems
• One of three linked documents:
Failure Modes and Effects Analysis
Benefits
• Improve knowledge and robustness
of product and process
• Supports reduction of complaints
and off-specs
corrective preventative
• Saves time by getting the process
and product right first time
Control Plan
FMEA
Flowchart
Breaks
Cracks
Spills
Explodes
100
30
120
270
3
9
17
19
Tape
Gauge
Rheomet
Fix
Dis
Acc
3
9
17
19
Test
Spec Plan
#
3m+/-0.5
> 2.0
1+/- 0.1
Levels of Excellence Drivers:
• Complete FMEAs for customer
processes in production
• Link to problem solving activities
• Roll out to all processes and
review similar ones.
video
55. 56
What is it?
• Structured review process by
cross-functional team to evaluate
changes
Management of Change Benefits
• Traceability of changes
• Customer satisfaction
• Legal obligations
• Reduced risk of changes with
respect to safety and quality
• Checks and approvals from
different perspectives
• Solidified changes
• Controlled process
• Thorough communication of
changes
Create a MOC entry in the
Formal Documentation System
Provide Change Proposal Details,
Reason for Change and Validation Plan
Documented Approval
– of Change Proposal and Validation Plan
Execute Validation Plan
Documented Approval of Henkel
Internal Validation Results
Communication of change to Customers
for Validation and/or approval as required
Implement Change and update
procedures accordingly
Close Change Process
Levels of Excellence Drivers:
• Use of the existing MOC system
is in place, and
• utilized for all changes
56. 57
What is it?
• A summary of the systems used to
minimize product & process
variation.
• It describes the actions required to
ensure that selected output
characteristics are in a state of
control.
• One of three linked documents:
Control Plan
Benefits
• Shows up problems before
they cost you money
• Improvement in quality
performance
• Finds problems more cheaply,
and sooner in the process
than inspection plan
Control Plan
FMEA
Flowchart
Breaks
Cracks
Spills
Explodes
100
30
120
270
3
9
17
19
Tape
Gauge
Rheomet
Fix
Dis
Acc
3
9
17
19
Test
Spec Plan
#
3m+/-0.5
> 2.0
1+/- 0.1
Levels of Excellence Drivers:
• Complete Control Plans for
customer processes in
production and all new products
• Link to FMEA
• Roll out to all processes and
review similar ones.
57. 58
Standard KPI’s and Scorecard
• Objectives
• Support site managers to steer their plants successfully
• Give quantitative information on how well the plant is performing
• Enable everybody to speak the same "performance / KPI
language"
• Benefits
• long term target achievement by focusing on short-term
(daily/weekly), KPI supported Performance Management
• Standard KPIs are:
• Best practice steering concepts on
• plant level and
• shop floor level (department and machine level)
• Which ensure a holistic performance measurement on five categories:
Lean Progress
Cost/Cash
Service
Quality
SHE Lean Progress
Cost/Cash
Service
Quality
SHE
61. 62
What is it?
• Easily recognized visuals that
indicate the Performance and Flow
of the operation to drive action
Visual Factory
Benefits
• Clear, real-time information to
drive improvements prior to
adverse Quality and
Productivity incidents
• Optimized workstations
• People engagement
• “30-second” Management
Key Links to other Elements
• Pull System
• 5S
Attainment to Standard
Work Station
Performance
generic example
Heidelberg example
62. 63
How do I do it?
• Create real-time visuals for process
performance (output, quality, etc.)
• Create visual standards for
material flow and equipment / tool
location (5S)
• Reaction Plan in place for use of
this information
EXAMPLE:
Visual Factory, continued
Levels of Excellence Drivers:
• Easily visible indications of the
following across the site:
• Material Flow
• Work Stations (e.g. 5S)
• Performance
63. 64
New Automated Tube Filling Line - EU
OEE Logging Screen
Auto-Labeling
Auto-Palletization
64. 65
Operator Aids: Designed & Built, fit for Purpose (1)
Kanban storage for Work Orders
with necessary materials
Kanban storage at the line for label
rolls
65. 66
Operator Aids: Designed & Built, fit for Purpose (2)
Operator table for line-side work
Line-side tool material/storage
The correct materials in place
66. 67
Operator Aids: Designed & Built, fit for Purpose (3)
Good Quality material
trolleys with locator marks
Segregated waste in easy to
use containers
67. 68
Operator Aids: Designed & Built, fit for Purpose (4)
Purpose built Line-side
Operator work station
Kanban
Tape supply
Funneled edge for
easy location
68. 69
Operator Aids: Designed & Built, fit for Purpose (5)
Easy to clean under
conveyors
Different Materials
for easy identification
72. 73
Standardized Work - 3
Standard Job lists/Activity Lists Operator generated modifications
73. 74
• What benefits would participants get from participating in a VSM
Workshop?
• What strategies would you use to implement changeover time reductions
in your facilities?
• What do we know about true customer demand?
People and Flow – Reflection Questions
74. 75
• What would you do differently
Let’s go to the Gemba!
2nd production Round
75. 76
• Score all People and Flow Dimension Elements reviewed
• MOC
• Problem Solving
• FMEA
• Control Plan
• OEE
• TPM
• Standard KPI’s and Scorecard
• Visual Factory
• Communication Boards
• Review and Calibration of our Scores
Scoring Breakout Session
76. 77
Driving the 4 Dimensions
Dimensions and their Element Clusters
• Risk assessments
• Safety walkarounds
• Safety Assessments
• Safety Trainings
• Near Miss Reporting
Safe Environment
• Problem Solving
• Failure Mode & Effect Analysis
• 6 Sigma
• Control Plan
• Statistical Controls
• Error Proofing
Built in Quality
• Value Stream Mapping
• Continuous Improvement
Workshops
• Pull System
• Total Productive Maintenance
• Overall Equipment Effectiveness
• Change Over Time
• Visual Factory
Optimized Flow
People Engagement
• A3
• Mentoring & Coaching
• Qualification Matrix
• Performance Remuneration
• 5S
• Management of Change
• Standardized Work
• Standard KPIs and Scorecard
• Communication Boards
Foundation Roll Out (in red) – Recommended Starting Point
Next focus (in black)
77
77. 78
How do I do it?
• Create a design that does not
require human intervention to avoid
an error
EXAMPLE:
Error-Proofing
Levels of Excellence Drivers:
• Train EVERYONE
• Implement solutions and share
• EVERYONE can demonstrate
examples in their workplace
• Show the link to Control Plans
and FMEA’s
78. 79
What is it?
• A method which allows us to
understand variation in our
processes and drive action to lead
to increased capability
• Identify common and special
causes
Statistical Controls Benefits
• High quality product
• Data made visual
• Stabilized and controlled
processes
• Increased productivity by first
time right
• Move from quality control to
quality assurance
23
21
19
17
15
13
11
9
7
5
3
1
120000
110000
100000
90000
80000
70000
60000
Sample
Sample
Mean
_
_
X=78137
UCL=96049
LCL=60225
1
1
1
Xbar Chart of Viscosity
Out of
Control
discuss
the situation
Levels of Excellence Drivers:
• Measurement System Analysis
program established
• Control Charts in place
• Analysis and Reaction Plans
being used
• Variation Reduction
improvement activities
79. 80
What is it?
• Project based problem solving
initiative which uses powerful
statistical methods
• A cross functional team based
activity with duration of 3 to 6
months
Six Sigma
Benefits
• Reduction of variation to
minimize defects
• Alignment with customer
requirements
• Annual savings in avg.:
Green Belt project 30k€
Black Belt project 60k€
• Identification of high
potentials
Levels of Excellence Drivers:
• Training of Green Belts and
Black Belts
• Execute projects
• Realization of savings
80. 81
What are they?
• A cross-functional team rapidly
realising sustainable improvements
• where the solution is not known
• participating for 3-10 days
• using lean thinking
Continuous Improvement Workshops
Benefits
• Rapid improvement
• eg safety, cost, quality
• Engagement of people in
improving their own work
• Develops lean thinking
Key Links to other Elements
• Safety walkaround
• 5S
• Value Stream Mapping
• Failure Modes and Effects
Analysis
100% exemption
from work must
be ensured
during
participation in
the workshop
81. 82
How do we do it?
Continuous Improvement Workshops, cont.
Levels of Excellence Drivers:
• Train people
• Use eg. A3 or FMEA
• Run workshops
• Involve everyone (not just
factory) in CI workshop
participation.
A3 proposal
Safety
issue
VSM FMEA
Lean topic training
Measure current status
Brainstorm improvements
Implementation
Check and A3 report
Follow-up
Set scope & targets
Plan
Do
Check
Act
82. 83
What is it?
• A process to develop individuals
and teams to implement a strong
Lean culture that will lead to
sustainable financial performance
Mentoring and Coaching
Benefits
• Increase motivation
• The voice of our people is
heard and action is taken
• Employee retention
“If the learner hasn’t learned, the teacher hasn’t taught”
Levels of Excellence Drivers:
• Coaching Plan is structured and
visible
• Cascade Coaching to the
Gemba
83. 84
What is it?
• A spreadsheet that defines the
global Lean Enterprise skill level of
our people
• A standard process for continuous
assessment and development of
our people
Qualification Matrix
Benefits
• Increase motivation
• Increase positive impact
(efficiency and effectiveness)
of our improvement efforts
• Employee retention
Coach
Lead
Improvement
Perform
The Qualification
needed to drive
Improvement at the
GEMBA…the place
where the work is
being done
Levels of Excellence Drivers:
• Skill improvement Strategy and
Plan
• Plan achieved and openly
displayed
• All employees are included
84. 85
Performance Based Remuneration
Objectives and Benefits
• Ensure a performance based remuneration system is in place to
help drive operations improvement to KPIs, LE elements and
ultimately business metrics through monetary and non-monetary
based awards and recognition.
• Clearly communicate
the selected targeted
measures and progress
to the organization,
at the place of work,
through visual metrics
and on communication
boards.
85. 86
Driving & Sustaining Results - Reflection Questions
What will you start?
What will you stop?
What will you continue?
86. 87
• Score all People and Flow Dimension Elements reviewed
• Error Proofing
• Statistical Controls
• Six Sigma
• CI Workshops
• Mentoring & Coaching
• Qualification Matrix
• Performance Remuneration
• Review and Calibration of our Scores
Scoring Breakout Session
87. 88
3rd production Round
A3 Proposal & Final Competition
• Let’s go to the Gemba!
• What would you do differently
88. 89
Plant Roadmap
• Activities and Progress
Lean Enterprise Roadmap AMBITION KPIs & Milestones
Site: XX ZERO Incidents 1 LTC
Owner: M. Smith 100% ECSL 100% ECSL
Last updated on: 7/4/2013 20% Inventory Value Reduction 8 M€ Inv. valu
Last updated by:: M. Smith 10 % TSCC
50% Complaint Reduction/yr
Lean Elements Score
CCDB Savings (€)
enter start dates for any short term initiative activity such as
Timeline w/ Initiative + Targets
Oct Nov Dec Jan Feb Mar Apr May Jun
Site Dimension Initiative Title Responsible Person
xx People Engagement: Communication Boards Visual Mgmt of Plant KPI M. Smith
XX Optimized Flow: CI Workshops Cell 2 Changeover Efficiency M. Smith 10/5
XX Built in Quality: Six Sigma Cell 3 Mixing Defects Reduction L. Page
XX Built in Quality: Audit Initial Element Self Assessment P. Manager 12/20
XX People Engagement: CI Workshops 1-Day Lean Campus P. Manager 12/1
XX People Engagement: Audit Corporate Element Audit I. Lean 2/3
XX People Engagement: Standardized Work Restocking of Returns B. Jones
XX People Engagement: CI Workshops 3-Day Lean Campus M. Smith
XX People Engagement: CI Workshops Lean Foundation Training M. Smith 12/15 2/26 4/1
XX Built in Quality: Six Sigma Fork Truck Battery Life A. Worker
XX Safe Environment: Safety Assessments Site Safety Assessment C. She
XX Optimized Flow: Overall Equipment Effectiveness
OEE Infrastructure at Plant A. Engineer
XX Optimized Flow: Visual Factory IPK Set up on Packaging Line A. Worker
Q4 2013 Q1 2014 Q2 2014
- on target
- below target
KPI Key
- on time
- plan
- late
- complete
Initiative Key
89. 90
Best practice replication
• We can all improve separately
• We can re-invent the wheel in every site
• This will give us localised Continuous Improvement and waste
reduction. (pockets of success)
• BUT
• As a Lean Enterprise, we can share our successes,
and our mistakes openly.
• This will give us rapid improvement “across everywhere”.
• Understand the root cause of success found in the A3
90. 91
Lean Enterprise
Leadership Principles
1. Lean Enterprise is the Strategy… This is how we run the plants
2. Must be Driven and Led from the Top
• Lead by Example
• Learn by Doing
• Commit to becoming a Lean Expert
• Communication … continuous
3. System + Culture = Results
4. Transform the People… Only Asset that Appreciates
Without application of these principles we will fail!
Leadership will be the Key Ingredient!
91. 92
Next Steps
• FIRST…did we meet our Objectives for this Workshop?
• Implement what you’ve learned
• Teach others
• Relentless Pursuit of Waste Elimination
• Pursuit of Perfection
• Keep in Touch
• Your Plan Roadmap to LE Group in two weeks
• HAVE FUN!
…and fill out evaluation NOW…we also want to continuously improve!
