Executing a Lean Transformation

Copyright 2008 Adaptive Business Solutions ‐ All Rights Reserved

Presented By:Brent TadsenAdaptive Business Solutions, LLC126 S. Northwest HWYChicago, IL 60010312‐957‐6008www.abstb.com


Objectives:• Understand change and how it happens in a Lean organization

• Understand the Leadership Values that must be held in order to execute a Lean Transformation

• Understand the Lean transformation framework

Introduction


Brent Tadsen:• 8 Years with GE; Greenbelt, Blackbelt, Master Blackbelt

• Lean & Six Sigma Trainer

• Lean Leader for GE Rail Services

• Spent 12 months helping a Railcar repair shop begin a Lean transformation

About the Presenter


Disclaimer


Change is tough…but is it good?

Quick question about your car…

Change


First, need to clear up some very common misconceptions…

• Lean methodology needs to be embedded in all functions

Lean is a name…Let’s get past that by calling it by the type of organization it describes.

A value focused, relationship driven, employee centric organization that thrives on team work and continuously improves itself.

…or just call it Lean

It is not an initiative…it is a way of LifeYou don’t “DO” Lean, you become Lean

• Lean is NOT JUST A SET OF TOOLS Diet

Lean and Change


Goal Based Change

A

B C

A

B C

Continuous Improvement as a process

Kotter’s 8 Step Change Model vs A Lean Company


1. Establish a Sense of Urgency

2. Create Guiding Coalition

3. Develop Vision and Strategy

4. Communicate the Vision

5. Empower Broad-Based Action

6. Generate Short-Term Wins

7. Consolidate Gains and Produce More

8. Anchor the New Approaches in the Culture

• Urgency is part of the culture

• All people involved in improvements

• Vision is steady and clear

• No need as it doesn’t change

• Organized for action already

• Get wins everyday

• Daily Process

• Culture already supports improvement

The Beauty of Lean

8 Step Model Lean Organization


There is no magic pill, silver bullet, or checklist that will make you Lean

So how do you do it? 3 Words…

Discipline, Energy, & Persistence

If it was simple you wouldn’t be here or your competition would have already run you out of business

So how do I become Lean?

The Lean Transformation


StabilizeHR StrategyAlign MetricsLevel Load

Standard WorkMaterial Replenishment

Continuously ImprovePersonnel

Customer ValueUtilize Lean Techniques

Kaizen

Kaizen

…

UnderstandLean LeadershipCustomer Value

Vision & Business GoalsValue Stream

Business Strategy

The Lean Transformation Framework



Standard WorkMaterial Replenish

Continuously Improve

…

Understand

First who, then what

Understands Lean

CEO/Leadership…Breakfast Analogy

Lean LeadershipCustomer Value


Business Strategy

PersonnelCustomer Value

Utilize Lean TechniquesLead by example…Participate…Walmart

The Lean Transformation Framework‐ Lean Leadership

Kotter [Tadsen] Step 9…the heart (kids books)



Just-in-time(Flow)

Heijunka

Stability

5S

Kaizen

Pokayoke

Andon

Kanban

StandardizedWork

Perfection

ContinuousLearning

Single PieceFlow

VisualManagement

Takt Time

Heijunka

AxiomsAxioms TechniquesTechniquesPrinciplesPrinciples

Significantly influenced Significantly influenced by Joachim by Joachim KnufKnuf

Relationships

People

Value



AxiomsAxioms TechniquesTechniquesPrinciplesPrinciples

Significantly influenced Significantly influenced by Joachim by Joachim KnufKnuf

Profits

Competition

Corporation

Just-in-case

Good Enough

Peaks & Valleys

Program ofThe Month

My Way

Repairs

Band aide

Rework

Assign Blame

SaturationStaging

TribalKnowledge

Batch andQueue

SearchAnd Find

Speed





…

Understand

Understand what the customer values…hopper cars

Lean LeadershipCustomer Value


Business Strategy


Utilize Lean Techniques

The Lean Transformation Framework





…



Business Strategy

Must include something for customers, shareholders, and employees

Communicated appropriately…undivided attention

$10MM Bonus

Be ready for pushback…late night TV

Importance of why…

North Seeking Compass



The Lean Transformation Framework – Vision & Business Goals





…



Business Strategy



Understand Operations- PR, PQ, Modeling, Capacity

The Lean Transformation Framework – Value Stream





…



Business Strategy



Where do we start? What resources are available?

How will we create long term value for our customer

Have to get this right…no buggy whips

MKE Example

Not a way to reduce head count

The Lean Transformation Framework – Business Strategy





…



Business Strategy



Performance Review Process

Hiring the right people…welder

Right org structure

Rewards and Recognition…Welch

Clear career path

Succession Planning

People who do fire prevention vs fighting

Retention

The Lean Transformation Framework – HR Strategy





…



Business Strategy



Encourage teamwork vs individual success

Sub Optimize Value Stream…GEA Tub Bottom Example

The Lean Transformation Framework – Align Metrics

Cycle Time on assignment cars





…



Business Strategy



Minimize External Input Variation

Examples:Baskin RobbinsLawn Mowing

Med Systems

The Lean Transformation Framework – Level Load





…



Business Strategy



Create a standard on which future improvements are based on

We don’t need a new IT system, we just need to properly use the one we have

The Lean Transformation Framework – Standard Work



Standard WorkMaterial Replenishment


…



Business Strategy



Stable ops have the right material/Information

Kan Ban

Min/Max

The Lean Transformation Framework – Material Replenishment



Standard WorkMaterial ReplenishmentEquipment Availability


…



Business Strategy



It is difficult to get standard processes if your machine keeps breaking down

TPM

Standard Locations

The Lean Transformation Framework – Equipment Availability





…



Business Strategy



Skills training that supports the process

Leadership training

Problem Solving

The Lean Transformation Framework – Personnel





…



Business Strategy



Figuring out new ways to create value for customers

•Improve Products

•New products

•New Services

•Better Lead Times…Fedex Example

The Lean Transformation Framework – CI Customer Value





…



Business Strategy



Use the Lean Techniques to improve

•Internal Set-Up•External Set-up•Kitting•Poka Yoke•Supermarkets•Jidoka•Andon•Takt Time•Single piece Flow•Etc

The Lean Transformation Framework – CI Using Lean Techniques


Appendix

Examples…Time Permitting


Before Kaizen After Kaizen

Operation Problem Actions Taken Results

Top of Car Ops

Using portable ladder to access car and transport tools and equipment. Resulting in excessive trips and safety issues. Previous observations revealed average 3 trips per

hour for Top of Car tasks.

Developed free‐standing work platform with secured tool board.

Fixed platform and tool board reduce up and down travel by 45 minutes per car & eliminate ladder safety issues.

The Lean Transformation Framework – Infra Structure Highlights


In bound

Inspection

Blast

Tank Shop

Steam RackTrack 13- Overflow

OfficeWarehouse

Cell Criteria-NONE

Steam Rack-Clean Car after estimate approved

Finished cars from BlastOnly require valves and bubble

Push production

Example – Tank Shop Original Process Map


In bound

Inspection

Blast

Steam RackTrack 13- Hold Track (Max 8 cars)

OfficeWarehouse

Cell Criteria-Green [Light]- <60 Hours (No HM201)Blue [Medium (-)]- 60-130 Hours- HM201Yellow [Medium (+)]- 60-130 Hours-HM201 (Pressure) Red [Heavy]– >130 Head Brace, Heat Treat, cert weld shell

Steam Rack-Clean CarUT TestBubble Test if BO is not for valves or HM-201Preliminary coil testRemove valvesCategorize cars Green, Yellow, Red

Two piece pull

Green Team

Blue Team

Yellow Team

Red Team

Finished cars from BlastOnly require valves and bubble

Cen

tr al T

o ol A

rea

Plat

form

s

Decouple the shop floor with Track 13

Example – Tank Shop Future State Process Map


25’

Steam Rack-Drops valvesFills out information on gray signMoves valves to staging area

Tank Shop

1

10 8 6 4 2 1

45

Coach-Prioritizes valvesAssigns cell colors to wagon

Valve Shop-Rebuilds ValvesPM WagonsMoves valves to staging

Cells-Bring valves to car when new car arrivesAir tires if neededClean debris from wagonClean signReturn empty wagonsReturn colored sign to valve shop

2

3

Example – Wagon Flow Diagram


Infrastructure Highlights



Valves

Difficult to understand valve rebuild status, valve sets not

together, overflow valves laying on floor, lost mounting hardware.

Created wagon system to keep valve sets and mounting hardware together.

All valve sets and hardware kept together in individual wagons. Easy to see if valve shop or steam rack is behind. Keeps clutter out of valve shop.

Example – Wagon Process


Infrastructure Highlights



HeatTreat

Lack of 5S creating waste through searching and untangling of cables

and leads.

Created Cable and Lead bins in new HT Cart. Fire hose storage concept prevents tangles.

Cables and leads are organized and set up for rapid pull and go deployment.Reduced setup time by 59%.

Example – Heat Treat Process


Sayre Cycle Time by Week Jan 05 to Jan 07

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.01 10 19 28 37 46 3 12 21 30 39 48

FW 2005 and 2006

Ave

C/T

All

Car

s Sh

ippe

d th

at W

eek

Cycle Time Results


Questions

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Questions & Contact Info

Executing a Lean Transformation

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