Ken Rader - Lean Thinking

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Information about Ken Rader - Lean Thinking

Published on December 5, 2008

Author: j_wilson62

Source: slideshare.net

Description

As a member of the Seniors Executive Network I spent a great deal of time addressing the issues around implementing Lean business process

Lean Production Lean Thinking Ken Rader May 2, 2002

Production Evolution

CRAFT PRODUCTION (1700 – 1880) Labor Skilled Craftsman (e.g. Wainwright) Apprenticeships Organization Decentralized Single Purpose Shops Tooling Generalized (Forge & Anvil) Low Productivity Manufacturing Complete Product (e.g. Plow) No Inventory Metrics Bookkeeping

CRAFT PRODUCTION

(1700 – 1880)

Labor

Skilled Craftsman (e.g. Wainwright)

Apprenticeships

Organization

Decentralized

Single Purpose Shops

Tooling

Generalized (Forge & Anvil)

Low Productivity

Manufacturing

Complete Product (e.g. Plow)

No Inventory

Metrics

Bookkeeping

MASS PRODUCTION (1880 – 1950) Labor Unskilled Direct Skilled Engineers Organization Centralized (Vertical) Functional (e.g. R&D) Tooling Single Purpose High Production Rates Manufacturing Single Task Assembly High Inventories Metrics Product Cost (Accounting) Yield ROI

MASS PRODUCTION

(1880 – 1950)

Labor

Unskilled Direct

Skilled Engineers

Organization

Centralized (Vertical)

Functional (e.g. R&D)

Tooling

Single Purpose

High Production Rates

Manufacturing

Single Task Assembly

High Inventories

Metrics

Product Cost (Accounting)

Yield

ROI

LEAN PRODUCTION (1950 – Present) Labor Semi-Skilled Labor Teams Organization Decentralized (Horizontal) Process Based Tooling Multi-Purpose Fast Changeover Manufacturing Component Assembly Low Inventory Metrics Process Cost Throughput Quality

LEAN PRODUCTION

(1950 – Present)

Labor

Semi-Skilled Labor

Teams

Organization

Decentralized (Horizontal)

Process Based

Tooling

Multi-Purpose

Fast Changeover

Manufacturing

Component Assembly

Low Inventory

Metrics

Process Cost

Throughput

Quality

CHARACTERISTICS OF LEAN PRODUCTION

Ultimate Goal: Elimination of Waste Errors Producing Unneeded Goods Producing Unwanted Goods Unnecessary Processing Steps Unnecessary Movement of Goods or People Waiting

Ultimate Goal:

Elimination of Waste

Errors

Producing Unneeded Goods

Producing Unwanted Goods

Unnecessary Processing Steps

Unnecessary Movement of Goods or People

Waiting

Five Principles of Lean Production Specification of Value Value Stream Analysis Flow Management (Lean Manufacturing*) Pull Perfection

Specify Value 1. Specific Products the firm expects to produce for the 2. Specific Customers who want the products at the 3. Specific Price they are willing to pay with the 4. Specific Product Performance and Quality needed to maintain a competitive advantage.

Value Stream Analysis 1. Process Map every activity and categorize activities by Those that create value for the Customer. Those that do not create value but are required. Those that create no value and are not required. 2. Develop Measurements for each activity – activities which can’t be measured can’t be managed!

Value Stream Analysis

1. Process Map every activity and categorize activities by

Those that create value for the Customer.

Those that do not create value but are required.

Those that create no value and are not required.

2. Develop Measurements for each activity – activities which can’t be measured can’t be managed!

Flow Management 1. Focus on the Specific Products the firm will produce and never let it out of sight! 2. Ignore All Boundaries (career, organizational, etc.) to remove impediments to the flow. 3. Redesign Work Practices and Tooling to eliminate waste (scrap, rework, backflows) so that flow is continuous. 4 . Reduce Cycle Time 5 . Synchronize Production Rate to Sales Rate (JIT)

Pull 1. No good or service is produced or activity initiated until the customer requests it (DRB) . 2 . Eliminate Lead Times and non-constraint Inventories

Perfection 1. Perfection is a condition that is created . It is not a benchmark. The paths to it are not found, but made. The pursuit of perfection changes both the pursuer and the destination. 2 . Involves entire Supply Chain . 3 . Focus on Eliminating Waste 4 . Requires a Change Agent

Perfection

1. Perfection is a condition that is created .

It is not a benchmark. The paths to it are not found, but made.

The pursuit of perfection changes both the pursuer and the destination.

2 . Involves entire Supply Chain .

3 . Focus on Eliminating Waste

4 . Requires a Change Agent

Advantages of Lean Production

 

 

 

 

METRICS – COST VERSUS PROCESS ACCOUNTING An Exercise

 

 

 

 

 

The Lean Enterprise

Organizational Design Business Discipline Process Control A Design for Lean Thinking Company Policies and Practices

Reading List Womack, James P., Jones, Daniel T., Roos, Daniel, The Machine That Changed The World, New York: Harper Perennial, 1991 Womack, James P., Jones, Daniel T., Lean Thinking , New York: Simon & Schuster, 1996 Feld, William M., Lean Manufacturing, Boca Raton: St. Lucie Press/APICS, 2001. Goldratt, Eliyahu M. and Cox, Jeff, The Goal: A Process of Ongoing Improvement , Great Barrington, MA: North River Press, 2 nd Rev, 1992 Hammer, Michael and Champy, James A., Reengineering the Corporation : A Manifesto for Business Revolution, New York: Harper Business, 2001 Treacy, Michael and Wiersema, Fred, The Discipline of Market Leaders : Choose Your Customers, Narrow Your Focus, Dominate Your Market, Cambridge, MA: PERSEUS PUBLISHING, 1997

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