wiebe nijdam march 29th, hørsholm denmark in process... · wiebe nijdam march 29th, hørsholm...
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Lean in process industry environments
Wiebe Nijdam
March 29th,
Hørsholm Denmark
Introduction: Lean Global Network
� LGN is a non-profit corporation with HQ in Boston, USA and consists of 17 affiliated
non profit Lean Institutes devoted to the promotion of lean and the development of
lean leaders.
� Global Mission: ‘to be the leading educators for society in maximizing value and
minimizing waste. To accomplish this goal, we develop, advance and implement lean
principles, tools, and techniques as a system designed to enable positive change’.
� Affiliates support lean transformations by developing lean practitioners and leaders
through education, coaching, support, action research, events and learning materials.
� Founded in 1997 by Jim Womack & Dan Jones – authors of ‘The Machine that Changed
the World’, ‘Lean Thinking’ and ‘Lean Solutions’.
Introduction: Wiebe Nijdam
�Managing Partner Lean Management Institute
Netherlands
�Actively involved in Lean since 2001 (food &
process industry, retail & logistics, heavy
equipment, clothing industry)
� Lean experience in over 60 projects worldwide
� Background: plant manager, education &
consulting
Overview
� Introduction
� The two different types of production industry
�Always the process focus!
� Case
�How do lean transformations work?
�Where & how to start?
�Questions
Does Lean work in process
environments?
�Yes it does!
�Let’s see how…..
Assembly
characteristic
A few variants
Many parts
become, …..
Process Industry
characteristic
A few raw
materials
become, …..
Many variants
Most of
you, are in
this area:
Typical problems in process industry
� Fast processes, can create big volumes very quickly but can create also
waste very quickly
� Difficult changeovers, big volumes and batch sizes, long start-up times.
� Losses of material at changeovers
� Often more remote from the customer, full bullwhip effect
� Basic stability problems, sometimes vulnerable, complicated processes and
machinery
� Perception that raw material is cheap, thus limited focus on losses.
What does this cause?
For example:� Rework (although it is sometimes
automated and not seen as rework
anymore)
� Lost time as result of standstill (time
is the only asset that is not
replaceable)
� Loss of finished goods as result of:
• Off specifications (material
instability)
• Machine instability (spillages, start-
up losses, tank-heels)
• Wrong settings (method instability)
Results in
�Quality concerns
� Late delivery
� Costs issues,
margin under
pressure
Request of new product
A business process:
Raw Material Finished Product
Process Process Process
New productdevelopment
New product launched
Process
Pilot / trial run at manufacturing
Order Entry Production Distribution
Process Process Process
Process: all steps necessary to turn a raw material into a finished product
Concept
Lean
Value added vs. non value added
Necessary but non value adding
Value adding
Non value adding
11
“All we are doing is looking at the time line - from
the moment the customer gives us an order to the
point where we collect the cash. And we are
reducing that time line by removing the non-value-
added wastes” Ohno (1988-ix)
Focus of Lean
Focus of traditional efficiency improvement
20%
19%
29%
2%
7%6%
0% 3%1%
2%
7%
2% 1%1%
Milk
Raws
Packs
Labour
Depretiation
others
losses
other vardistrib
You are not getting a big gain by
reducing on walking distance……….
� Classical perception of lean,
reduction of the 7 wastes:
• Transport
• Inventory
• Motion
• Waiting
• Overproduction
• Over processing
• Defects
Where to start? Connect with your P&L!
Sales Increase revenues by offering products customers want
through constantly testing customer preferences (what
makes customers smile?), improving quality and
frequently renewing products
Cash Improve cash by mastering, simplifying and accelerating
flows and reducing inventory
EBIT Improve profitability by understanding the true source
of costs in seeing the waste created by our work
methods and teaching employees to eliminate it step by
step
Capital Expenditure Developing lighter, more flexible equipment that keep
people in control of the process while liberating them
from heavy burdens
Source: Michael Ballé, writer of “the
Goldmine” & “The Lean Manager”
Phases in a lean transformationIm
pro
ve
me
nt
Time
Work on improvemts in
the total supply chain
Realize process changes in your
“door to door “process
Create stability in your process
Where & how can you start?
� Understand how you are doing:
Indicator Y-1 J F M A M J J A S O N D BETTER SAME WORSE
Accidents
On-time Delivery
Customer complaints
Internal Not Right First Time
Suggestions
Absenteism
Production Per Hour Per Person
OEE
Days of Inventory
Finished Goods
WIP
If you know how you are doing, which
challenges are you facing?
Equipment & Method
• Quality
• Planning
• Utilization of machinery
• Sustainable position
• Responsiveness to the market
Men
� CI culture
� Leadership
� Ownership, engagement
• The wastes you see in a process are symptoms, look for the causes that
create them!
• Do not only focus on machines, a process is always the result of people
actions
• Where is your organisation currently in development? Take the actions that
fit to your current status.
Questions?
Contact:
� Wiebe Nijdam
• +31 6 26458256
� René Aernoudts
• +31 6 50206438
� www.leaninstituut.nl