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1 LEAN Process Innovation & Sustainable Continuous Improvement… Our Most Formidable Competitive Weapons Brought to you by: Volume 02, Issue 11 June 1, 2015 CONTENT THE LEAN EXCHANGE: HELP TO ACCELERATE TO YOUR LEADING EDGE 4 Meet Art Byrne — AME/ CME Conference Keynote 6 The Naroda 3P story 11 Helpful tips & Building capability 2 Advancing productivity collaboratively in Newfoundland and Labrador Nearly 40 LEAN leaders from Newfoundland and Nova Scotia will attend the AME/CME 2015 Canadian LEAN Conference in Winnipeg June 1–4 Produced by: Dave Hogg Telephone: 519-741-9732 E-mail: [email protected] Thank you to our partners: The ATJ Take… Productivity: It’s a TEAM sport C anada’s largest LEAN conference this year is the AME/CME 2015 Conference in Winnipeg, MB June 1–4. It’s roots started with the early CME and AME collaboration that brought the first AME International Conference to Canada in 1998. In 2008, in the midst of the recession, the Toronto attendance set the current 31-year record and the CME AME Collaboration contnues to deepen with this June’s AME/CME Canadian Regional LEAN Conference in Winnipeg being the result. Winnipeg’s collaborative platform has been built by the community, government, associations, schools and many diverse manufacturing interests. These entities have created an infrastructure capable of drawing a conference of this size and quality to the province and the city. Indeed, it is no accident that there are five manufacturing consortia in this one city — no place in the world has that many in one city. In Winnipeg, as in other North American jurisdictions we will hear about, collaboration and productivity is a team sport. ATJ congratulates the AME/CME Canadian LEAN 2015 Conference on their success in already having over 525 practitioners registered. It’s no accident that almost 40 manufacturers from Newfoundland and Nova Scotia, led by David Haire, First reactions to the word productivity usually confirm the notion that it is a ratio of output over input. Others, such as Paul J. Meyer take a much deeper view — a more world class perspective. “Productivity is never an accident — it’s the result of a commitment to excellence, intelligent planning and focused effort.” Hence, world-class productivity is the result of no small collaboration

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LEAN Process Innovation & Sustainable Continuous Improvement… Our Most Formidable Competitive Weapons

Brought to you by:

Volume 02, Issue 11 June 1, 2015

CONTENT

THE LEAN EXCHANGE: HELP TO ACCELERATE TO YOUR LEADING EDGE

4Meet Art Byrne — AME/

CME Conference Keynote

6The Naroda 3P story

11Helpful tips &

Building capability

2Advancing productivity

collaboratively in Newfoundland and Labrador

Nearly 40 LEAN leaders from Newfoundland and Nova Scotia will attend the AME/CME 2015

Canadian LEAN Conference in Winnipeg June 1–4

Produced by: Dave Hogg

Telephone: 519-741-9732

E-mail: [email protected]

Thank you to our partners:

The ATJTake…

Productivity: It’s a TEAM sport

Canada’s largest LEAN conference this year is the AME/CME 2015 Conference in Winnipeg, MB June

1–4. It’s roots started with the early CME and AME collaboration that brought the first AME International Conference to Canada in 1998. In 2008, in the midst of the recession, the Toronto attendance set the current 31-year record and the CME AME Collaboration contnues to deepen with this June’s AME/CME Canadian Regional LEAN Conference in Winnipeg being the result. Winnipeg’s collaborative platform has been built by the community, government, associations, schools and many diverse manufacturing interests.

These entities have created an infrastructure capable of drawing a conference of this size and quality to the province and the city. Indeed, it is no accident that there are five manufacturing consortia in this one city — no place in the world has that many in one city.

In Winnipeg, as in other North American jurisdictions we will hear about, collaboration and productivity is a team sport. ATJ congratulates the AME/CME Canadian LEAN 2015 Conference on their success in already having over 525 practitioners registered.

It’s no accident that almost 40 manufacturers from Newfoundland and Nova Scotia, led by David Haire,

First reactions to the word productivity usually confirm the notion that it is a ratio of output over input. Others, such as Paul J. Meyer take a much deeper view — a more world class perspective. “Productivity is never an accident — it’s the result of a commitment to excellence, intelligent planning and focused effort.” Hence, world-class productivity is the result of no small collaboration

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From left to right — David Haire, CME VP Newfoundland & Labrador, Kay Riggs CME Chair, Hon. Darin King, Min. Business, Tourism, Culture, Rural Development,

Hon. Paul Davis Premier of Newfoundland and Labrador, and our Jay Meyers, CME’s president & CEO.

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June 1, 2015

THE LEAN EXCHANGE: HELP TO ACCELERATE TO YOUR LEADING EDGE

CME’s regional vice president, Atlantic region, will be attending — because of the extensive collaboration within their community infrastructure organizations, government agencies, CME and manufacturers that cover Newfoundland from coast to coast. Newfoundland has developed a platform for growing manufacturing excellence through collaborative partnerships with the Department of Business, Tourism, Culture and Rural Development (BTCRD) and the Atlantic Canada Opportunities Agency (ACOA), CME — right up to and including — Premier Paul Davis’s Office. If we are to take on the world, everyone in the infrastructure must be involved, commited and focused.

Being able to think big and conceptual-ize all of the resource linkages needed — and how to then collaborate in such a way that the right value is brought to the right customer, at the right time and at the right price — will be our collective challenge in the months ahead. The mantra better, faster, cheaper still rules!

As we look across the country, there are growing islands of collaboration and productivity where communities and their constituents have come together as a team to provide the resources necessary for the companies in their midst to become more competitive locally and globally.

This conference is a unique opportunity for those that are serious about

advancing by meeting practitioners who can help you and your team learn in a practical practitioner-to-practitioner exchange environment. There is no sales here — but rather, a practical learning-exchange where the reason for coming is to exchange ideas and practices in an open networking environment to add to build one’s own personal knowledge supply chain.

If you would like to learn more about what value a Consortium has to offer, you are welcome to the informal Consortia Night practitioner-to-practitioner exchange on June 13 from 5:30–7:30.

For the latest updates, visit

www.LEAN2015.com

Advancing productivity collaborativelyin Newfoundland and LabradorNearly 40 LEAN leaders from Newfoundland and Nova Scotia will attend the AME/CME 2015 Canadian LEAN Conference in Winnipeg June 1–4. In Newfoundland, good things are happening! And improvement is on the move throughout the province thanks to a very effective initiative, Manufacturing Productivity, which ATJ learned about from David Haire, CME’s vice president for Newfoundland and Labrador, who will lead his team to the conference. What is really inspiring is to see the full collaborative support from every sector’s stakeholders in the province right up to the Office of the Premier

But let’s take a closer look. Some may not remember that it was St. John’s and Vancouver who

were the first two locations in Canada, circa 1999, to implement CME LEAN Manufacturing Consortia (dubbed as Leveraged Learning Networks by the Sloan Management Review). From the beginning, the collaboration in Newfoundland was exemplary and has just kept growing.

More recently, things really began to take off with the success of a pilot project with seven manufacturing companies

located in Central Newfoundland. This project focused on bringing hands-on LEAN training to the shop floors of these centrally-located manufacturing firms. And because of the success of these LEAN interventions, the new Central Continuous Improvement Network (CCIN) was formed in March 2012.

Collaborating to winCME began working cooperatively and collaboratively with the Department of Business, Tourism, Culture and Rural Renewal (BTCRD, formerly IBRD) and

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the Atlantic Canada Opportunities Agency (ACOA) to raise awareness of LEAN in 2007. The Manufacturing Productivity initiative could be considered the largest LEAN intervention to date due to the collaboration through a renewed partnership with the Department of Innovation, Business and Rural Renewal and the ACOA. CME began delivering the Manufacturing Productivity initiative in  January 2014.

Now, with 489 LEAN training modules delivered since Jan. 2014, CME has more than doubled the number of shop floor employees trained in LEAN interventions from coast to coast on the island. “As provincial manufacturers continue to be on-boarded to the project, this hands-on World Class LEAN training is poised to strengthen productivity, and give our manufacturers the competitive advantage they need in both local and global markets,” reports David.

Using David’s own words, “In the global race to compete, LEAN Manufacturing is an effective method of reducing waste within the manufacturing process while instilling a culture of continuous improvement. Waste is defined as anything that does not add value for the customer — or anything the customer is unwilling to pay for. LEAN enables a manufacturer to do more with less so that the company can reduce costs while increasing productiv-ity and delivering value to local, national and global customers.”

An 18-month initiative designed to deploy World Class LEAN experts to the shop floors of manufacturers province-wide, Manufacturing Productivity is designed to broaden the scope, align resources and build continuity through LEAN leveraged learning, and in so doing, foster sustainable productivity for all participant companies over the long term. As such, Manufacturing Productivity is designed to support and expand membership in the current LEAN training groupings to 35–40 companies in total.

How was it set up?The Manufacturing Productivity initiative is designed in three phases to support a company’s team need, whatever stage of LEAN each is at. As such, the initiative is designed to adapt to any of the three fol-lowing phases of their LEAN transformation.

Phase 1: Stabilize — Learning and Applying LEAN Tools

Phase 2: Standardize and Systemize — Developing LEAN Mentors

Phase 3: Strategize and Sustain — Developing LEAN Leaders and teaching others

Who is involved?Since Manufacturing Productivity first began in 2014, a new LEAN network has been launched:

From The North East Avalon Continuous Improvement Network— (with twelve engaged and six active companies) being trained including:• Blue Ocean Satellites, C & W

Industrial Fabrication and Marine Equipment, Design Manufacturing Inc., DF Barnes, British Group, and Hercules SLR

From The Central Continuous Improvement Network are: • Auk Island Winery, Blanchard’s

Cabinets & Doors, FabTech Industries, Noble Mouldings & Turnings

• Superior Gloves, Sutreen Hardwood & Molding, and West Tower Bakery

From the Fluent Manufacturing Consortium (The founding Consortium) are:• Dynamic Air Shelters, Precision

Industries, Restwell Mattress, Smith Snacks, Weather Shore Windows

From the Trinity-Conception Network are:• Carino Processing, Distinctive

Interiors, Quin-Sea Fisheries, Rebuilt Pump Motors, Viking Fur

What ATJ is particularly impressed with, is the power of advancing those at the Phase 3 level to an even higher level by having them share their insights – or teach – other member companies in their respective regional grouping. This is a very powerful win-win strategy. This leveraged learning environment is designed to ensure that LEAN practices become ingrained in the culture of these networks, and that their LEAN productiv-ity improvements become sustainable over the long term.

Since the last quarterly report, 333 more employees of manufacturing firms across Newfoundland and Labrador have been trained in a variety of LEAN subjects across all three phases, and to date, a total of 483 LEAN training modules have been delivered to employees of manufac-turing firms across the province.

By the numbersIn total this works out to:

• 175 employees from seven companies in the Central Continuous Improvement Network;

• 41 employees from five companies in the Fluent Manufacturing Consortium (the 1st Consortium in NL);

• 91 employees from six companies in the North East Avalon Continuous Improvement Network; and

• 26 employees from five companies in the Trinity-Conception Network.

To ensure real-time relevance, account-ability and transparency throughout the duration of this project, CME-NL has de-veloped a Manufacturing Productivity dashboard. The dashboard is designed so that any interested party can eas-ily review the real-time status of the project at a glance — with just a few strokes of a computer keyboard. Housed virtually online and updated monthly by CME-NL’s Operations Manager, informa-tion contained within the Manufacturing

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Productivity Dashboard is gleaned from data gathered through the LEAN trainers’ biweekly reports and ongoing research by the Communications & Evaluations Officer, in direct consultation with LEAN trainers, member company executives, and Manufacturing Productivity’s Project Lead, CME-NL VP David Haire.

SummaryFrom small and medium sized firms, to some of Newfoundland and Labrador’s largest manufacturers, CME is confident the work of the past year has only begun, and that, as pan-provincial LEAN networks and newly minted LEAN Champions continue to leverage their

resources and mature, the impact of Manufacturing Productivity’s first year will remain far reaching and resounding for many more to come.

The ATJ thanks David for sharing this initiative, and for being one of the engines behind LEAN’s

ramp-up in Atlantic Canada! You can reach David at: [email protected]

Meet Art Byrne — AME/CME Conference KeynoteOne of the world’s foremost manufacturing innovators

Almost everyone familiar with dramatic plant turnarounds knows of the Wiremold LEAN turnaround that Art Byrne drove as their CEO. He’s now helped over 30 companies with their LEAN transformations and is with us in Winnipeg for the same reason — to help us. His book, The LEAN Turnaround, is a bestseller being used to guide thousands of transformations, including consortium-member companies across North America. It is highly recommended for its clear and practical value. To introduce Art, we are sharing his answers to Kevin Meyer’s 5-question-interview-format. Kevin was the founder of Superfactory and co-founder of the Gemba Academy. ATJ rates Art’s book at 5.0 stars

Meet Art Byrne:

1) Who are you, what organization are you with and what are your current LEAN-related activities?I am currently an Operating Partner at J W Childs Associates, a Boston based Private Equity Fund. Prior to that, I was the CEO of The Wiremold Company from 1991 to 2002. Before that I was a Group Executive for The Danaher Corporation where one of my company presidents and I were responsible for introducing Danaher to LEAN. I went to Danaher from The General Electric Company where I had been General Manager of two separate businesses.

My current LEAN activities revolve around driving LEAN into all of the J W Childs operating companies and promoting my recently released book, The LEAN Turnaround, from McGraw-Hill.

2) How, when and why did you get introduced to LEAN and what fueled and fuels the passion?My first introduction to LEAN (it was called just-in-time back then) was in January of 1982 during my first general manager’s job at The General Electric Company. We implemented a simple kanban system that took my inven-tory from 40 days to 3 days. That was nice but the improvements in quality, productivity and customer service freed up space and the positive response from the workforce had me hooked. I really learned the Toyota approach as a Group Executive at Danaher. We were fortunate to be the first, and for four years, only client of the Shingijutsu Company from Nagoya, Japan. The three founders all had worked directly for Taiichi Ohno, the father of the Toyota Production System, for many years so they taught us how it was done the proper way.

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During my tenure at Wiremold we were able to quadruple in size, increase operating income by more than 13X and achieve an almost 2,500 per cent increase in enterprise value in a little over nine years. Getting this type of increase in enterprise value of course gets your attention and fuels the passion but for me the real driver is the ability to grow the skills and capabilities of all your people and give them a chance at personal wealth creation. At Wiremold, for exam-ple, the largest shareholder when we sold the company was the employees through their participation in the 401K plan. As a result they shared in the biggest portion of the wealth that was created.

3) What is the most powerful aspect of LEAN?I think that LEAN is the biggest wealth creator I have ever seen. If you go back over time, one thing has always been true: Productivity = Wealth. This is true of both countries and companies. Using a LEAN strategy and the LEAN tools to remove waste and improve your value adding activities generates tremendous productivity and therefore wealth. This is not just wealth in the monetary sense but also the wealth that comes from the personal growth of all your associates. To me, this latter part is much more rewarding.

4) What is the most misunderstood or unrecognized aspect of LEAN?I think there are quite a few things that are misunderstood about LEAN. One of the most tragic is the fact that LEAN has become

most commonly known as LEAN manufacturing. This is a problem even for manufacturing companies as it allows them to think of LEAN as some manufacturing thing and thus just delegate it down to the VP of Operations. For non-manufacturing companies, where the gains from LEAN are even larger, they just feel it doesn’t apply to them at all so they never even try.

To me however, the thing that is most misunderstood about LEAN is the fact that LEAN is a strategic thing and not just some manufacturing thing. To be successful you have to see LEAN as your underlying core strategy. Removing waste and improving your value adding activities, in order to deliver more value to your customers, is what LEAN is all about. It is in fact a time based growth strategy that is especially valuable in slow growth economies like the present one. Unfortunately very few people see this and try to adopt LEAN for some mis-guided reason like reducing headcount.

5) What is the biggest opportunity for LEAN in today’s world? How can that be accomplished?This is a very broad question so there is no simple answer. I suppose that if we could remove the waste from every company and every govern-ment agency (extremely hard to do in this latter case) then we would create tremendous growth and wealth for everyone. If we got a little more narrow (i.e. came down from the clouds) then I think that the entire health care system in the US could greatly benefit from a LEAN transformation.

I have done Kaizens in hospitals and know first-hand what a mess they are despite the fact that they have some very smart and dedicated employees. Unfortunately, our current administration just passed a law that will take health care costs up not down. A second target in my opinion would be the public school system. This would be more difficult due to the politics and unions that have made it such a mess in the first place but it could be done.

Art is a member of the US Manufacturing Hall of Fame, and much more. ATJ turned

to a very good friend, Kevin Meyer, a founding partner of The Gemba Academy who gained a

reputation for his ‘5-Question-interview’ format that included global leaders like Art Byrne.

Thank you Kevin – http://gembaacademy.com

[email protected]

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The Naroda 3P storyA look at a rare LEAN jewel in the Toyota tool chest

By Jeff Cooper 3P Coach; Ingersoll Rand

3P(Production Preparation Process) is designed to support and build on the foundation of

LEAN principles. Without a solid base, LEAN implementation cannot succeed. When finished, 3P ensures our processes have one-piece flow, standard work and standard work in process pull systems. Toyota has no fear in sharing their success stories, mainly because it takes such a culture change to implement and sustain the Toyota House of LEAN. This Japanese culture is hard to mimic as, it was derived from necessity, and the invention sprang from a need: World War II. Japan was devastated, when faced with rebuilding; they had a lot of people and a huge lack of resources. They discovered how to rebuild and improve by people working together without resources, and without money, which is at the heart of 3P. When you visit Japan, try to find a garbage can, they are few and far between because, they have learned how to do much with less. They recycle their resources and minimize waste. 3P is about identifying the eight

wastes of LEAN and training people on how to eliminate those wastes; the process teaches people how to be waste killers.

At Ingersoll Rand, a world leader in creating comfortable, sustainable and efficient environments, we are using the process at an existing manufacturing site (brownfield) in Naroda, India to renovate and rebuild a facility that was built in 1965. This project is a three-year plan, with three phases. This article will address phase one. Brownfield sites are challenging as we need to keep producing products to meet customer demands, while rebuilding the new facility at the same time.

Getting startedPlant transformation 3P’s start with goal setting. Below was our target for phase one.1. One-piece, mixed model production

flow lines

2. Change from post-assembly paint job to pre-assembly painted parts

3. Remove contractors from plant, build core competency in our people

4. Increase employee engagement survey score by two points

5. Remove as many monuments as possible to allow for future Kaizen

One of the least-known but most powerful tools in the Toyota tool chest is the 3P (Production Preparation Process). It is founded on the concept of preparing a model to simulate a production line before you commit big dollars to equipment and process components that may not work out as you intend. In other words, it exploits systems thinking to generate a test model to see where the glitches may be. Some use 3P repeatedly, but many who would benefit from the process have not yet realized its potential.

We have talked about the amazing work being done with 3P in hospitals in Saskatchewan, across the United States and now in the National Health Services in the United Kingdom. Consortium members may recall the quite exciting General Electric application at the GE locomotive plant that applied 3P to save huge dollars by modelling new LEAN processes. But you don’t have to be big — simply scale down the thinking to your size and do a scale model first as some do with Legos, or other available simulation programs. However launching 3P in-house achieves much of what our future competitiveness depends on: the required interaction and involvement of our workforce.

Today we share a closer look at an actual 3P project with export and global implications — which some of you may experience as CETA begins to unfold. Our thanks to Jeff Cooper of Ingersoll Rand for this insight into The Naroda Story.

Jeff is a seasoned practitioner of 3P solutions in manufacturing and is a certified coach trained by the internationally respected Shingijutsu Ltd., comprised of retired executives from Toyota. Jeff has partnered with them over the last 10 years on a system of standard work that is used to improve or implement processes, or new product introductions. Their process teaches LEAN and continuous improvement to its users by using simple processes and inexpensive materials.

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Production line 1

Subject Target Current State % of ImprovementWorkstations 3 8 125%

Square meters 1809 2413 25%

People Labor 15 25 40%

Assembly cycle time 25% Reduction NA 25%

Production line 2

Subject Target Current State % of ImprovementWorkstations 24 32 25%

Square meters 2164 2886 25%

People Labor 40 60 33%

Assembly cycle time 25% Reduction NA 25%

Production line 3

Subject Target Current State % of ImprovementWorkstations 3 4 25%

Square meters 562 749 25%

Our phase one goal was to begin build-ing core competencies within our own workforce for certain high-skill jobs to eliminate our reliance on costly contract labor to build and improve the capabili-ties of our top asset: our people.

Our efforts were greatly aided by the powerful close-knit culture in India. It is not uncommon to see grown men walk-ing hand and hand, arm over shoulder as they stroll down the street; I found the people a joy to work with as I traveled at least once a month at the height of our 3P transformation effort.

The process beginsAfter we set our 3P phase one goals, we assembled a cross-functional 3P design team to work in the 3P Obeya room. (An Obeya room is a war room where people involved with planning a new product or process can come together in a location where the key information is available.)

The team represented functions whose components comprised the entire value stream: procurement, materials, engineering, manufacturing, EHS, human resources, quality, marketing, advanced manufacturing engineering, new product development, maintenance, strategic initiatives and most important of all, the operations represented by operators from the manufacturing floor.

At this point LEAN training began on the eight wastes and quality-at-the-source. We benchmarked our 3P based on the standards of world-class facilities and world-class supply chains. For example, in world-class facilities you do not see forklifts but rather LEAN flow lines without common monuments such as cranes, pits, ovens, services and walls. A perfect manufacturing floor for 3P is a clean unobstructed cement slab because we know as demand fluctuates we need to change and adapt our playbooks.

3P concepts demand this. Transportation, motion and walking waste are eliminated when we remove these monuments and improve safety.

We created a swim lane value stream map that showed the process horizontally from Order to Delivery to the customer. After the map’s input and outputs were created, we simulated orders through the map and inserted Kaizen bursts at inputs and outputs of the system to illustrate who needs to work with whom to work ideas for eliminating defects from the value stream. This divided up the work very quickly and provided early owner-ship and empowerment to those person-nel who know the most about these problems--they have the best chance of solving the problems and increasing cycle time to the customer.

The supply chain in India is rudimen-tary in some areas; it is not uncommon to see camels pulling steel deliveries,

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unpackaged parts being delivered in powered rickshaws and delivery promises unmet on a normal basis. One huge change was to assemble with pre-painted parts. The old facility painted our assembled products at the end of the assembly lines. Finding suppliers who can paint and protect the parts during shipment is challenging for the procure-ment team members.

After charging our suppliers to begin working on our new requirements, we turned our attention to the production process. We identified the flow of current state and drew a spaghetti diagram of the production flow, which identified the flow of parts, people and information. We started by identifying all the products we needed to merge by identifying the current cycle time of each and confirming that the product mix was close enough for success (utilizing the 80–20 rule). From the product families that emerged the takt time, or pace of customer demand, was calculated.

We first selected the longest cycle-time product within each group, knowing this will identify the largest space footprint and highest labor needed within each line. We then built the fishbone assembly chart of the machine and identified current sub-assemblies within each. After the charts were built, we took current de-fects, environmental, health and safety is-sues and placed these Kaizen starbursts within the fishbone diagram. This showed us where we needed to improve and where we needed quality-at-the-source touch points to protect the process and ensure a quality end product.

By this time the team was starting to gain momentum and work very closely together — the culture was starting to transform. 3P is all about using visuals to create universal understanding. We have a global workforce with varying levels of education and native languages. A visual management system like 3P equalizes and empowers the workforce.

Once the value stream map and the fishbone chart were developed, we held

some seven ways sessions (a process to generate seven alternatives to encourage creative thinking) to gather best ideas, and utilized trystorm, a powerful tool of 3P. During the development of the light bulb, Thomas Edison’s Menlo Park labs trystormed over 10,000 ideas until they discovered the right material for the filament for the light bulb — we did the same. A successful try-storming session is done in group setting and requires only brains, focus and your imagination--no computers — the digital age has segregated workers into cubicles by themselves whereas the 3P Obeya and trystorm events bring people together to collaboratively solve problems. For our events we confiscated electronic devices that distracted us from working together.

The next step is to create the takt time/cycle time chart, also known as the Yamazumi chart (used to make sure work is evenly distributed, meaning each operator has a full day’s work). This chart is also used to plan (schedule) shared resources or monuments if they cannot be removed. For example if five workers are in a crane bay and have

to share a crane, if the five workers need the crane at the same time then the other four are waiting. Utilizing a Yamazumi chart will enhance the success of any 3P project. The Yamazumi is built in concert with the process-at-a-glance sheet that shows material presentation needs, method of assembly, machines used, fixtures used and any mistake-proofing ideas that arise at each step. We also identify quality-at-the-source checks and total productive maintenance checks that ensure a robust manufacturing system.

While all of this is taking place there were a couple of small-scale modellers who started building the small scale simulation model. The model was de-signed on the new plant layout, proposed walls, columns, roof heights, doors, machinery, carts, and parts, and even included people on the plant floor, as if the observer were a giant standing inside the plant. Shrinking the scale enhances the team’s ability to communicate and collaborate as we simulated ideas in a target-state environment, something impossible to do in a real factory setting.

Figure 1: We shrink the process down so we can simulate and communicate as a team

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The takt time calculations gave us general station numbers to begin our simulations. We conducted another seven ways session to determine which future layout was most optimal for simulation trials. This was just a starting point the ongoing simulations change the layout as the team works through the process.

We were now ready to simulate. We had the stage (small-scale model), we had the script (Yamazumi and process-at-a-glance data), now we started at the beginning and simulated each station using spaghetti charts for operator move-ments (we call them ant paths).

As we simulated, if we reached for a scalpel and it is not there, we stopped the simulation and asked the team what we needed to do. Step by step we improved the process; we debated, and tried alternative solutions. Our thinking was all about LEAN thinking’s number one principle: defining value from the customer’s viewpoint.

ConclusionThis is where people really learn LEAN with their own processes, their own parts, and their own demand. We can talk about takt time, cycle time, but when you simulate the process you are not listening to a LEAN professional lecturing in front of a white board. This is the power of 3P: simulation. There will be many ah-ha

moments as people learn and grow together over the power of the cardboard!

3P is all about people. When we simulate, we practice for the big game. We practice to win; we practice to be ready; we practice to win without fighting, pushback or finger-pointing, when we have launch issues, because there will be issues. Best of all, the customer is the one for whom we simulate and practice. The employees win because the practic-ing identifies the issues early so we can mitigate them, leaving start-ups free of stress and high cost fixes. Everyone knows what to do, simple cardboard aligns the entire team around a specific

mission – to develop the most optimal production line design to best serve the customer’s needs.

ResultsPlant transformation Phase 1 goals delivered in 11 months, start to finish:

• One-piece, mixed model production flow lines

• Pre-painted parts• Contractors removed from plant• Employee engagement increase of

11 points• Many monuments eliminated,

flexibility enabler

Figure 2: Team simulating with spaghetti charts to show operator movement

Production line 1

Subject Target Current State Achieved % ImprovementWorkstations 3 8 4 100%

Square meters 1809 2413 1700 29%

People Labor 15 25 12 52%

Assembly cycle time 25% Reduction NA 32% 32%

Production line 2

Subject Target Current State Achieved % ImprovementWorkstations 24 32 17 47%

Square meters 2164 2886 2326 20%

People Labor 40 60 26 57%

Assembly cycle time 25% Reduction NA 28% 28%

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Production line 3

Subject Target Current State Achieved % ImprovementWorkstations 3 4 3 25%

Square meters 562 749 525 30%

Phase one has been a huge success. The Naroda team is just getting started and their small-scale simulation model is their 5S model, the final S stands for sustain, the model helps sustain the plant layout standard work. They will use the model for any improvements moving forward and as a powerful tool to sustain their LEAN journey. They will also use it to train new employees and engineers coming into the plant. They are now actively building visual systems, shadow boards and MDI (Managing for Daily Improvement) boards into their daily standard work. There are no forklifts on the floor and everything is mobile to ac-commodate improvements and growth.

Phase two is now underway and I look forward to seeing my colleagues’ progress as they embrace this next step in their plant’s transformation 3P process. They know LEAN principles and have mastered the concepts of 3P, the best process to solidify LEAN thinking and a LEAN culture.

Ingersoll Rand (NYSE:IR), a $13 billion global business, advances the quality of life by

creating comfortable, sustainable and efficient environments through its

family of brands including Club Car®, Ingersoll

Rand®, Thermo King® and Trane®. Jeffrey Cooper is a production

process preparation coach for Ingersoll Rand’s global compressed air systems and services business unit, a leading world provider of air

compressor systems and services and he leads new product development, production line LEAN

transformations and LEAN plant transformations. He is responsible for coaching LEAN innovation

into our new products and processes. An Ingersoll Rand employee for two years,

Jeff previously worked for G.E. Transportation for 13 years and, over both roles, has been working

with Shingijutsu LTD for over 10 years. Contact Jeff via LinkedIn.

CANADIANLEANAME/CME 2015

CONFERENCE

• 7 KEYNOTES • 18 TOURS • 16 WORKSHOPS

LEAN2015.COM

JUNE 1-4 WINNIPEG MANITOBA

Value Stream 3: PeopleEngaging your people. Hear how to create an environ-ment in which team members find fulfil-ment and inspiration.

Value Stream 4: PerformanceLearn from real-life success stories of how organizations have dramatically improved operational performance.

Value Stream 1: LeadershipHear examples how strong leadership led to success-ful lean enterprise transformation.

Value Stream 2: ProcessesLearn how to gain the involvement of every team member, through daily improvement activities linked to business strategy.

• 36 PRACTITIONER PRESENTATIONS • 4 VALUE STREAMS

For more information visit: www.LEAN2015.com

11

BUILDING CAPABILITY

Brought to you by:Volume 02, Issue 11

June 1, 2015

THE LEAN EXCHANGE: HELP TO ACCELERATE TO YOUR LEADING EDGE

If the change you seek is NOT in everyday conversations there is no real change taking place. There just isn’t

Many months ago the ATJ eNewsletter stated: “Change does not take place by edicts on the wall. Rather, it takes place through conversations among people every day.”

This statement is as deadly accurate today as it was two decades ago when a take-no-prisoners remarkable lady by the name of Kathy Grad drove it mercilessly into our thinking. And she was right — as so many of us verified time and time again. There were three reasons why it caught on back then:

1. Fear: A recession appeared to be right around the corner in 1990 — and Allen Bradley (now Rockwell Automation) and their 12 selected suppliers who eventually became the HPM Consortium model for many more consortia agreed!

2. Leadership: We had folks who could generate followers3. It made sense: As LEAN had not surfaced, we felt like we

were doing it for us (not LEAN)

Today, getting the right change into all daily conversations is our leadership/managerial challenge.

Books: ..............................1. The Lean Turnaround: How Business Leaders Use Lean Principles to Create Value and Transform Their Company Art Byrne, 2013. Those attending the Winnipeg Conference in two weeks will understand what this book could mean to them for their LEAN turnaround. Art won the US Manufacturing Hall of Fame award few will ever receive — and he did it by demonstrating what a LEAN transformation could accomplish. There is so much more value to harvest which he shares in this book — or will tell you during his Keynote at the AME/CME LEAN Conference, June 1–4, 2015. www.ocapt.com

2. How Wrong Assumptions about PDCA Problem Solving Destroy the Effectiveness of Lean Coaches, David Verble and Lea Tonkin, 2015. There’s growing interest by companies in developing LEAN coaches who can be the driving force for building and sustaining a problem-solving culture. That’s where you come in as LEAN/continuous improvement (CI) professionals — in most companies you are responsible for cultivating a generation of LEAN/CI problem solvers throughout your organizations. Go to the LEI website by following this link: http://www.lean.org/common/display/?o=2871

3. Why a Plan for Every Part Is Essential to Lean Transformations, Doug Bartholomew, April 2015. “What’s needed is a system kaizen in which the material-handling system for an entire facility, supplying every value stream, is redesigned to create a bulletproof delivery process that is utterly precise and stable. Such a system must include a plan for every part. “In most facilities I visit, the material handling system is a mess,” Womack writes in Gemba Walks. “If there is a pull system in place, it is run very loosely.” http://www.lean.org/common/display/?o=2951

Events: ..............................1. October 8–9, 2015 10th Annual LEAN Accounting Summit – And – With the inaugural LEAN Management Summit, Jacksonville, FL. Two integrated conference for the prices of one http://LEANaccountingsummit.com/

2. October 19-23, 2015 Annual AME International LEAN Conference, Cincinnati, OH With John Ratzenberger of Cheers, as the Honorary Conference Chair (He is not the Cliff you remember, he is a manufacturer now). http://www.ame.org/cincinnati Check out the Canadian ShawCor video for the value one Canadian company found at this event in the past. This is now the largest LEAN conference in the world.