WorldClassPerformance..doc

World Class Performance Lean Manufacturing: How to Achieve World Class Performance LEAN MANUFACTURING How to Achieve World Class Performance The Principle Goal of BusinessTo Deliver Value to the Customer What Stands in the Way ?Companies typically spend over 95% of their time and money doing things that DO NOT ADD VALUE. Waste Any activity that consumes resources But does not create or add value FORMS OF WASTE Overproduction: making items to fast or too soon Processing: Unnecessary steps Transportation and Motion: Movement of employees and materials without adding value Errors and defects Underutilized human resources Waiting for processing How Much Waste? In the average company over 95% of what goes on is waste in some form. What is the Effect Limits to capacity Longer lead times Higher costs Cash tied up in the business Mistakes Late deliveries Customer defections Employee frustration What is World Class Performance ? 99% on-time delivery 12+ Inventory Turns Single digit set-up times (SMED) COPQ 2% OEE 95% (Availability) 100% Pull; No MRP One Piece Flow Kaizen Culture THE SOLUTION Lean ManufacturingA powerful, systematic approach which quickly yields dramatic improvements in cycle time, WIP inventory, throughput, productivity and quality. The key is to reduce or eliminate non-value added steps achieving smooth, continuous flow in response to customer demand Lean is a Different Way flow pull value stream empowered people perfection A Lean Enterprise is… Organized Differently Focused on creating flow in a “Value Stream” This is fundamentally different than traditional organizations that are organized along functional boundaries devised in the early part of the last century. Most of the effort is expended in managing the interface between the boundaries. What Does the Lean Enterprise Look Like? (page 14)(GRAPHIC GOES HERE) A Brief History of Lean Thinking Ford originated the idea of “flow” Toyota figured out how to flow with lo