lean presentation tier1 v2 053113

Lean Introduction Overview

Automotive Tier One

Date 5/31/2013

CIP 3 001 Lean Presentation.Kickoff Confidential and Proprietary Property of Ryder

What is Lean?

Listing to the right or left?

Cut of meat with no fat?

Non fat foods?

Car running on too much air?

Doing more with less?

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CIP 3 001 Lean Presentation.Kickoff Confidential and Proprietary Property of Ryder

What Lean is not

Lean is not about eliminating people.

Lean is not about blaming people

Lean is not about creating checklists and inspections

Lean is not about painting lines on the floor

Lean is not about putting up boards

CIP 3 001 Lean Presentation.Kickoff Confidential and Proprietary Property of RyderCIP 3 001 Lean Presentation.Kickoff 4

What is Lean? (Textbook definition)*

Produce Only

What the customer wants, Only in the quantities they want, Only when they want it By doing only those things that add value Driving continuous improvement at all levels of the organization

4 * Womack & Jones (2003). “Lean thinking”

“All we are doing is looking at the Time Line – from the moment a customer gives us an order to the point we collect cash. And we are Reducing that Time Line by removing the non-value added wastes”

-Taiichi Ohno


Tools• Building layout• Product slotting• Visual controls• WMS• Workplace

organization• MHE & storage• Signage

Tools• Building layout• Product slotting• Visual controls• WMS• Workplace

organization• MHE & storage• Signage

Methods

• Standardized operating procedures

• Layered audits

• Small batch processing

• Drive-by dispatch

• Manpower planning

• Clearly defined expectations

• Quality wall

Methods

• Standardized operating procedures

• Layered audits

• Small batch processing

• Drive-by dispatch

• Manpower planning

• Clearly defined expectations

• Quality wall

Culture• View of associates on the

floor as the company’s most important asset (not a cost)

• Flexibility of associates to perform multiple jobs

• Commitment to continuous improvement

• Trust, respect, and belief in commitment throughout the organization

• Employee ownership, involvement, and collaboration (Pride)

• Leader as servant• Importance of orderliness,

cleanliness, and having everything in its place

Culture• View of associates on the

floor as the company’s most important asset (not a cost)

• Flexibility of associates to perform multiple jobs

• Commitment to continuous improvement

• Trust, respect, and belief in commitment throughout the organization

• Employee ownership, involvement, and collaboration (Pride)

• Leader as servant• Importance of orderliness,

cleanliness, and having everything in its place

Implementation Difficulty

Implementation Difficulty

Tools and Methods Are Tools and Methods Are What You See, but It’s What You See, but It’s Culture That MakesCulture That MakesIt Sustainable.It Sustainable.

Lean ImplementationLean Implementation


1980’s1950’s

History of Continuous Improvement

Ford Builds his 1st Car – Model

“A”

Ford Builds the first “moving line”

• Taiichi Ohno develops the “Toyota Production System”

(TPS)

• W. Edwards Deming Plan-Do-Check-Act

• Question conventional process

Early 1900’s

• Expansion across automotive and manufacturing

• Motorola initiates Six Sigma Quality

• Total Quality Management


2006 - 2007 2008 - 2009 2010 2011

Ryder’s Lean Journey (2006-2011)

• Ryder’s Kaizen Challenge is underway and savings of millions of dollars are reported as results of continuous improvement workshops at locations across the country.

• Over 150 Ryder Greenbelts are now trained. The 5 Lean Guiding Principles are introduced and the “Lean Team” is formed to pilot and deploy a Lean Warehousing model.

• The Lean Supply Chain Solutions team expands in order to deploy the Lean Template across 64 DM locations in 2012-2013. Sites include “Showcase” facilities useful for demonstrating Lean benefits to our internal & external customers.

• Ryder’s inaugural class of Lean Six Sigma Greenbelts are trained and first graduation ceremony is held in November 2007

RESULTS:

A projects-based culture driving productivity based on the Lean Guiding Principles

CIP 3 001 Lean Presentation.Kickoff Confidential and Proprietary Property of Ryder 8

Goals of Lean

The fundamental goal of lean is to reduce the time and resources it takes to convert customer orders into high-quality, low-cost deliverables.

HighestHighestQualityQuality

LowestLowestCostCost

ShortestShortestLead TimeLead Time


Lean Culture

It’s people who drive results.It’s people who drive results.

Numbers tell us where we’ve been.Numbers tell us where we’ve been.

People determine where we’ll go.People determine where we’ll go.


Ryder’s 5 Guiding Principles

CIP 3 001 Lean Presentation.Kickoff Confidential and Proprietary Property of RyderCIP 3 001 Lean Presentation.Kickoff

Ryder’s certified operational processes and performance measurements have a measurable impact on the performance of the operation. Improve customer satisfaction and reduce cost through continuous process improvement and error prevention.

People Involvement (PI) » People at all levels feel they are important team members

» Empowered to make decisions on how their job is performed

» Held accountable for decisions

Continuous Improvement (CI) » Every aspect of business is challenged to get better

» Good yesterday improved for acceptable today

Short Lead Time (SLT) » Reduce the time it takes to complete a task

» Eliminate waste from every process step

Built-In Quality (BIQ) » Do it right the first time

» Eliminates costly reworks and downstream quality inspections

Standardization (S) » Document work processes/best practices

» Use standard operating procedures to train new employees

» Act as baseline for continuous improvement

LEAN GUIDING PRINCIPLES

RYDER’S LEAN GUIDING PRINCIPLES

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LEAN :: PEOPLE INVOLVEMENT

» Lean is not a tool or a process: it is our culture

» We encourage everyone to challenge the status quo and drive

continuous improvement

» We empower workers to decide the best way to do their jobs

» Employees are cross-trained

» Employees are rewarded for successes that benefit our customer

Engage the Workforce

TodayManagement’s

Responsibility

FutureEveryone’s

Responsibility

Mgmt

Supervisor

Associates

Associates

Supervisor

Mgmt


Sample A-3

LEAN :: CONTINUOUS IMPROVEMENT

» Challenge every aspect of business to get better

» Use continuous improvement events to remove waste

» Encourage employee suggestions: “thousands of little ideas”

• Identify team• Analyze the problem• Describe current state

• Correct wasteful processes• Define countermeasures• Standardize work

• Set critical control points• Develop tracking methods• Assign tasks

• Display results• Describe lessons learned• Offer future recommendations

PLAN

DO

CHECK

ACT


LEAN :: STANDARDIZATION

SCPM

Lean SignageStandard Work

Visitors to a lean operation know immediately they are in a work environment that is different. Standardization leads to:

» A clean and orderly workplace

» Comfortable and accurate daily tasks

» Well-trained employees

» Easily identified “out of standard” conditions

» Measurable improvement

» Safety always comes first


Up from < 40 cases / hr in Week 1 to > 120 cases / hr as of Week 40

OUTBOUND PRODUCTIVITY

-

25.0

50.0

75.0

100.0

125.0

150.0

1 2 3 4 5 6 7 8 91

01

11

21

31

41

51

61

71

81

92

02

12

22

32

42

52

62

72

82

93

03

13

23

33

43

53

63

73

83

94

04

14

24

34

44

54

64

74

84

95

05

15

2

Cas

es

(OB

) p

er

Ho

ur

300% Improvement

Target with “Voice”140.0

Week

Productivity Metrics

Sample tools to track and increase speed:

LEAN :: SHORT LEAD TIME

Material Flow

Value Stream Mapping

Material Flow

Receiving & Inspection

Outbound Staging

Slow Moving Product

20% Volume

Fast Moving Product

80% Volume

» Speed the process

» Reduce time and resources

» Reduce invested capital

» Remove buffers and processes that don’t add value


Value Stream Mapping allows Ryder to become a partner with our Customers, seeing their business from their perspective and helping them develop solutions to their problems.

Creating Customer ValueHelp our Customers understand their problems, issues and opportunities in a new or different way and then show them solutions which match their needs.

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Using the Value Stream Mapping Tool

VALUE STREAM MAPPING

VSM LEVELS

Level 1: Supply Chain

High level, includes the entire or large portion of the Supply Chain

Output can be used to set Strategic or High Level Objectives

Level 2: Site

Value Stream within the four walls

Detailed enough to ID & prioritize improvement opportunities

Level 3: Process

More granular than Level 2

Yields a more detailed understanding of the drivers of cost, quality, & speed in VS

Product Family

Current State Map

Future State Map

DevelopKaizen Action Plan

How the process currently operates.

Designing a lean flow.

Becomes current state after implementation.

Product Family

Current State Map

Future State Map





Product Family

Current State Map

Future State Map








LEAN :: BUILT-IN QUALITY

» Mistake-proofing

» In-process controls to prevent and detect problems

» Elimination of rework

» Understanding root causes

» Instant feedback

» Participation by all employees


Process for Change

Demonstrate a Reason for Change

Create a Vision

Create a Partnership - Mgt./Work Force

Leadership Involvement

Create Commitment

Create Sense of Urgency

Drive Results through improved processes


Impediments to Change

Do not have a vision

Lack of shared vision

Defensiveness

Old ways of thinking

Culture

Lack of support structure for change

Lack of trust

Lack of leadership

Lack of self-esteem

Success


Managing Factors to Achieve Change

Leadership Knowledge Measures ResourcesFocusedActions Change+ + + + =

Knowledge Measures ResourcesFocusedActions Confusion+ + + =

Leadership Measures ResourcesFocusedActions Anxiety+ + + =

Leadership Knowledge ResourcesFocusedActions

GradualChange+ + + =

Leadership Knowledge MeasuresFocusedActions Frustration+ + + =

Leadership Knowledge Measures ResourcesFalseStarts+ + + + =


Takeaways for the location

Sustaining a Lean Culture

The real benefits come from a sustained effort over years, not weeks or months.

Paramount to sustainability is to remember that Lean is

a journey –

not a destination.


Becoming a Lean Culture

Developing a lean culture requires strong top management commitment and leadership.


QUESTIONS

lean presentation tier1 v2 053113

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