The Lean Management System

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1 The Lean Management System Improve Sustain Transform 2015 The Murli Group, LLC. All Rights Reserved.

2 Who We Are The Murli Group, LLC. LLC. All All Rights Reserved. 2

3 Always Start From Need The Murli Group, LLC. LLC. All All Rights Reserved. 3

4 The Murli Group, LLC. LLC. All All Rights Reserved. 4

5 Visitors The Murli Group, LLC. LLC. All All Rights Reserved. 5

6 The plan We re going to do So what is Lean? The Murli Group, LLC. LLC. All All Rights Reserved. 6

7 Kaizen The Murli Group, LLC. LLC. All All Rights Reserved. 7

8 Process 1 Process 2 Process 3 Process 4 Process 5 Process 6 Process 7 Process 8 Process 9 Process 10 Product A Product B Products A, D & E show an affinity for similar processes Product C Product D Products B, F & H show an affinity for similar processes Product E Product F Products C & G show an affinity for similar processes Product G Product H TOTAL TOTAL Process affinities are used to define a cell/line (mixed model lines) The Murli Group, LLC. LLC. All All Rights Reserved. 8

9 The Murli Group, LLC. LLC. All All Rights Reserved. 9

10 Step No New New / Rev Page of Date Organization Area Supervisor Combustor COE Dome Cell M. Hanson Process Description Classification Machine Number Travel Time /2001 BASE TIME (s, m, h) Man Task Auto Run Time To Com- Time Time Plete Get Raw Material R Process Capacity Table TOOL CHANGES # of pcs Time Per Time Between Tool Per changes chg Piece Production Line Part Number Part Name Manual Auto Processing Capacity Dome Assembly R Turn O.D. R19 139A Drill Pilot Hole R Thread R Inspect Thread R Move Part to Next Op R Travel Wait ~~~~~~~~ Remarks: Totals Grand Total 40 Available Hours Maximum Output Operators Needed 6.5h/23400s 683 pc Daily Demand 531 pc Takt Time 44s Operators Needed The Murli Group, LLC. LLC. All All Rights Reserved. 10

11 A B C D E Hey That s my job! The Murli Group, LLC. LLC. All All Rights Reserved. 11

12 New / Rev Page of Date Step No. Organization Area Supervisor Operation Name Check Motor Issue DHR Station 1 & 2 Install Gen. Housing Install Clips Install Term. Strip Install/Wire Latch Jumper Wire to Filter Time Sec ( ) Min ( ) Hr ( ) Manual Auto Travel Standard Work Combination Sheet Production Line 1 1 2/6/02 AMX J. David X Part Number Part Name Production Req'd Takt/Rate Time Manual Auto Travel Wait Operator Shannon ~~~~~~~~ Totals Operation Time T/T The Murli Group, LLC. LLC. All All Rights Reserved. 12

13 The Murli Group, LLC. LLC. All All Rights Reserved. 13

14 Design Detail Specifications Enter Order Orders in Process Planning Procurement Scheduling Release 4 Orders Released Quality Check Safety Precaution Standard WIP # Pieces WIP TAKT Time Cycle Time The Murli Group, LLC. LLC. All All Rights Reserved. 14

15 The Murli Group, LLC. LLC. All All Rights Reserved. 15

16 The Murli Group, LLC. LLC. All All Rights Reserved. 16

17 Five Days Later Success! Travel Distance Productivity Inventory Quality Customer Service The Murli Group, LLC. LLC. All All Rights Reserved. 17

18 Three Months Later Success? The Murli Group, LLC. LLC. All All Rights Reserved. 18

19 Lack of Sustainment The Murli Group, LLC. LLC. All All Rights Reserved. 19

20 Why can t we Sustain? Maybe it really is just a car thing? We don t live in a Japanese culture We have a union The foreman aren t doing their jobs We didn t spend time getting buy in There is too much going on we don t have time for follow up Sensei says do more kaizen- develop kaizen mind The Murli Group, LLC. LLC. All All Rights Reserved. 20

21 What is Lean Really? Collaborative problem solving! Shop floor work cells? 2016 Group, LLC. AllAll Rights Reserved. 2015The TheMurli Murli Group, LLC. Rights Reserved. 21

22 What is Lean Really? Collaborative problem solving! Shop floor work cells? The Murli Group, LLC. LLC. All All Rights Reserved. 22

23 People Engagement The Murli Group, LLC. LLC. All All Rights Reserved. 23

24 Improving Work Methods Process -A- Process -B- Process -C- Process -D- Ford Taylor Lean How did we do yesterday? Where was the waste? How can we do it better today? The Murli Group, LLC. LLC. All All Rights Reserved. 24

25 Distinguishing Factors of Lean Everybody every day How did we do yesterday? Where was the waste? How can we do it better today? Lean Thinking Performance Expert & Project Based Where is our next biggest opportunity? How many improvements can we make? What shall we put off? Time A Human Potential System The Murli Group, LLC. LLC. All All Rights Reserved. 25

26 Leaders as Problem Solvers How many problems do you have? Can you ever have enough problem solvers? Do you find that you systematically rotate your best people to your worst problem? The Murli Group, LLC. LLC. All All Rights Reserved. 26

27 Leadership & Employees The Murli Group, LLC. LLC. All All Rights Reserved. 27

28 What Changes? Leadership Employee Solver Coach Doer Solver Reports Workplace Visual The Murli Group, LLC. LLC. All All Rights Reserved. 28

29 Transformation The Murli Group, LLC. LLC. All All Rights Reserved. 29

30 Elements of Sustainability Standard Work Visual Management Leader Standard Work The Murli Group, LLC. LLC. All All Rights Reserved. 30

31 System of Continual Improvement True North Accountability Standard Work Lean Management System Leader Standard Work & Behaviors Visual Management People System The Murli Group, LLC. LLC. All All Rights Reserved. 31

32 True North Eliminate all unnecessary death or illness. Highest Quality Lowest Cost Shortest time Safest Manner Respect To inspire and nurture the human spirit one person one cup and one neighborhood at a time Putting the humanity back into flight Current Performance Transients Economic fluctuations Supply disruptions Technology changes New customers Regulatory changes Etc The Murli Group, LLC. LLC. All All Rights Reserved. 32

33 Standard Work The current one best way we have agreed on But That will change 10 times in the next 10 months The Murli Group, LLC. LLC. All All Rights Reserved. 33

34 Standard Work The Murli Group, LLC. LLC. All All Rights Reserved. 34

35 Visual Management 2016 Group, LLC. AllAll Rights Reserved. 2015The TheMurli Murli Group, LLC. Rights Reserved. 35

36 People Systems The Murli Group, LLC. LLC. All All Rights Reserved

37 Leader Standard Work & Behaviors Humble & Appreciative Inquiry Open Ended Questions Structure Goal Reality Options Way Forward The Murli Group, LLC. LLC. All All Rights Reserved. 37

38 Accountability Accountable Transparency Fast identification Facts Overt problem solving Team learning Continually improving Blame Camouflage Slow realization Conjecture Work arounds One upsmanship Variable or declining The Murli Group, LLC. LLC. All All Rights Reserved. 38

39 Accountable to What? Customers Employees Society Investors True North 20 Years or more Breakthrough Objectives 3-5 Years Annual Priorities 1 Year Daily Metrics < 1 Year The Murli Group, LLC. LLC. All All Rights Reserved. 39

40 Problem Solving The Murli Group, LLC. LLC. All All Rights Reserved. 40

41 How do we Get There? The Murli Group, LLC. LLC. All All Rights Reserved. 41

42 Micro Level Leader Std Work & Behaviors Competencies Visual Management Standard Work Kaizen Flow Kaizen Repetitive Cycles of Implementation Value Stream Analysis and Planning Purpose and Alignment The Murli Group, LLC. LLC. All All Rights Reserved. 42

43 Macro Transformation Supporting Systems Operating and Management Processes Internal Expert Development FSD Ready Sustainable Stand Alone People Finance IT Value Stream Analysis Leadership Alignment Co-Facilitate TTT Educate Bottom up Creation of Superior Processes and Enabling Culture 2015 The Murli Group, LLC. All Rights Reserved The Murli Group, LLC. All Rights Reserved

44 Infrastructure Champion - High level individual to promote the implementation of Lean and eliminate barriers as they are identified Steering Committee - Executive team between 4-12 people - Establish goals and objectives - Determine pace - Monitor and approve green to go for each phase Value Stream Manager - Individual coordinating activities outlined on future state VSM and VSIP - Identifying abnormalities and mid course corrections to maintain VSM objectives Lean Support Office - Group of people with deep Lean expertise - Provide technical support for the implementation of Lean in the continuous improvement phase Project Manager - Maintains detailed project plan and keeps all informed as to status 2015 The Murli Group, LLC. All Rights Reserved The Murli Group, LLC. All Rights Reserved

45 The Goal- Everybody, Every Day The Murli Group, LLC. LLC. All All Rights Reserved. 45

46 Bottom Line: Attitude Is Critical If you think you can or you think you can t, chances are you re right. - Henry Ford The Murli Group, LLC. LLC. All All Rights Reserved. 46

The Thinking Approach LEAN CONCEPTS , IL Holdings, LLC All rights reserved 1

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