Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
Management, empowerment, and quality initiatives:
Positive Transformation of the Inplant
through Lean Principles and Sustainability.
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
A Paradigmatic Shift…a time for ch
“New opinions are always suspect, and usually
opposed, without any other reason but because they
are not already common.”
John Locke
“If you want to succeed you should strike out on new
paths, rather that travel worn paths of accepted
success.”
John D. Rockefeller
“You must predict the death of your own market in
Order to save the market.”
Frank Romano
Growth Opportunities
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
2005 PIA/GATF Technology Forecast
1.
2.
3.
4.
Growing Print Niches (direct market printing)
Digital/Toner-based Printing
Ancillary Services (>10yrs will become 20-25% of budget)
Exports
Threats
1.
2.
3.
USPS Rates (how is this going to affect your operations?)
Global Competition-Print Imports
Paper Prices
Davis, Ronnie. (2005). Over the horizon: An environmental scan for 2005 and 2006. GATFWorld (17/1). Sewickley,PA: Graphic Arts
Technical Foundation
IMPLICATIONS FOR STRATEGIES and OPERATIONS
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
2005 PIA/GATF Technology Forecast
1.
2.
3.
4.
Manufacturing Efficiency (profit leaders 3% more efficient)
Support Efficiency (profit leaders 12% more efficient)
Be a Learning Organization
Focus on Ancillary Services (7% of total print revenues)
PRINT PLANTS CONTINUE TO DECLINE
-
1994 53,000 print plants
2005 less than 45,000 (decline of 15%)
Predicts that 1,300 plants will close in 2005-2006
“The reduction in number of plants does not mean that industry
overcapacity is falling. In fact, the surviving plants are more
productive making for more overcapacity” (Davis, 2005)
Davis, Ronnie. (2005). Over the horizon: An environmental scan for 2005 and 2006. GATFWorld (17/1). Sewickley,PA: Graphic Arts
Technical Foundation
“The focus is not only developing new skills; it is also on how to
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
Be a Learning Organization
learn new skills, knowledge, and capability—learning how to
learn.”
Darren Dolcemascolo (2004)
Dolcemascolo, D. (2004). Lean and the learning organization. Retrieved February 2, 2005 from http://www.emsstrategies.com
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
What is Lean?
-A philosophy
-A series of applications
-An opportunity for unified engagement
-A system of productivity techniques
-A system of quality improvement concepts
-A way in which to define value from a customer’s perspective
-An application that creates culture, engages everyone
and encourages continual change and improvement.
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
What is Lean?
“If you had to leave my house this second and immediately begin the task of getting four new tires
Put on your car, filling the gas tank to the top, cleaning the windshield, and then drinking seven
ounces of water, how long do guess it would take?”
“Which car in the Indianapolis 500 race wins?
Answer: “it is not the fastest car that wins. It is usually is the car that spends the least amount of
Time in the pits. And what happens in the pits? That’s where they replace all four tires, fill the gas
tank, clean the windshield and give the driver seven ounces of water to drink all in less than nine
seconds.”
Feingold, J. (2005). Getting lean. Fort Wayne, IN: WCM Associates.
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
History of Lean
Many of the ideas embodied in Lean are derived from the
concepts proposed by Frederic Taylor, Frank and Lillian
Gilbreth, Henry Ford, William Deming, and others.
Emerged from Japan (Post WWII):
- Kiichiro Toyoda
- Taiichi Ohno (Why-Why) and Shigeo Shingo (JIT)
- Incorporated Ford production practices of
Ishikawa, Deming, and Juran
into Toyota Production System (1949-1975)
Brought to North America through Ohno and Shingo’s books
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
Lean Defined
Lean is a systematic approach to enhancing value of a product
or service while reducing and eliminating waste both in the
manufacturing and non-manufacturing components of a
company
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
The Philosophical Core of Lean
1. The workplace is safe, orderly, and immaculately clean
2. Products are build just in time, and only to customer
demand
3. Six sigma quality is built into the product and process
99.9996% perfection – 3.4 ppm failed (parts per million)
4. Empowered work teams make key decisions on the shop
floor and in supporting functions
5. Visual management techniques are used to spread critical
information throughout the factory
6. There is a relentless pursuit of perfection
Henderson, B.A., Larco, J.L. (2003). Lean Transformation. Richmond, VA: The Oaklea Press
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
Lean Principles
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Kaizen (continuous improvement)
6S
Muda (identification and elimination of waste)
Visual Management
Value Stream Mapping
VOC (voice of the customer)
Takt time (beat)
Data Collection
Pull System
TPM (total productive maintenance)
Work Cell Optimization (single piece flow)
SMED (single minute exchange of dies)
Kanbans
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
Lean Principles
In a truly lean system, everyone—subcontractors, first-tier suppliers,
systems integrators or assemblers, distributors, customers, employees
can see everything so it’s easy to discover ways to create value. Also
there is instant and positive feedback for employees making
improvements, a key feature of lean work and a powerful element to
continuous improvement.
Darren Dolcemascolo (2004)
Dolcemascolo, D. (2004). Lean overview. Retrieved February 2, 2005 from http://www.emsstrategies.com
A management philosophy emphasizing employee participation,
In which every process is continuously evaluated and
Re-valuated for the elimination of waste.
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
Kaizen (Continuous Improvement)
How to hold a Kaizen event:
1.
Select a subject for the event
2. Select and assemble the team
3. Affirm management’s commitment
4. Preset the road map
5. Train the team
6. Perform the “present state” analysis
7. The “next step” proposal should be generated
8. The team presents its action plan to management
9. Assign the action items
10. Track activities and results using visual management boards
11. Implement the changes
12. Measure the improvement and report results
13. Say “Thank You.”
ANALYZE
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
Kaizen (Continuous Improvement)
Develop
Recommendations
Characterize current
And future states
Prioritize
Opportunities
Develop Approach
Develop Knowledge
pool
Charter the Team
And Mission
PLAN
Develop Action Plan
The Kaizen
Loop
Recognize future
opportunities
Analyze and validate
VERIFY
Daily, K.W. (2005). Lean manufacturing handbook. DW Publishing Co.
Create and refine solutions
Test and verify solutions
Implement Solutions
ACT
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
Safe Clean Organized Work Environment
1. 6S (formerly 5S)
A system designed to organize and standardize a workplace
- Sort (Seiri)
- Set in Order (Seiton)
- Shine (Seison)
- Standardize (Seiketsu)
- Sustain (Shitsuke)
- Safety (Anzen)
A methodology for organizing, cleaning, developing, and
sustaining a productive work environment.
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
6S
Sort – Get rid of clutter
Set in Order – Organize the work area “a place for everything and everything in its place.”
Shine – Clean, neat, and orderly (encourage pride in ownership)
Standardize – Establish written standards for order and cleanliness
Sustain – Maintain standards through training, empowerment, commitment and discipline
Safety – Continuously make aware and enforce a safe working environment.
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
Benefits of 6S
- Improved morale
- Improved quality and profitability
- Space
- Safety
- Reduced motion waste: any movement of people or
machines without adding value to the product.
- Structure for sustaining order
- Eliminate the “erosion of improvements”
- Not about housekeeping – it is about “zero housekeeping”
The Philosophy: The identification and elimination of waste for the
value stream is the central theme of LEAN.
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
“Muda” and the 7 Wastes
Successful implementation requires that the entire workforce be
trained in identifying and eliminating waste from their work.
Waste exists at all levels in the organization. Effectiveness is the
collective integration of man, method, material, and machine.
1. Over-production
2. Wait time
3. Transportation
4. Processing
5. Inventory
6. Motion
7. Defects
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
The Seven Wastes
1. Over-production
Producing more than is
needed, faster than needed
or before it is needed (JIT
Theory)
Automation in the wrong places
Cost Accounting Practices
Length of communication
Lengthy set-up times
Low up-times, Poor planning
2. Wait time
Idle time that occurs when
codependent events are
not fully synchronized
Inconsistent work methods
Lack of proper equipment or materials
Long set-up times
Poor equipment maintenance
Production bottle-necks
3. Transportation
Any material movement that
does not directly support
immediate production
Improper facility layout
Large lot processing
Large lot purchasing
Poor production planning
Poor work place organization
Redundant effort which adds
no value to a product or
service (transparent to
customer or which customer
would be unwilling to pay
for)
Decision making at inappropriate levels
Inefficient policies and procedures
Lack of customer input concerning requirement
4. Processing
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
The Seven Wastes
5. Inventory
Any supply in excess of
process requirements
necessary to produce goods
or services in a JIT manner
Inaccurate forecasting
Incapable process
Incapable suppliers
Long changeover times
Poor inventory tracking
Unbalanced production processes
6. Motion
Any movement of people
which does not contribute
added value to the product
or service
Ineffective equipment
Lack of visual controls (VMB, Kanbans)
Poor process documentation
Poor workplace organization
7. Defects
Repair or rework of a
product or service to fulfill
customer requirements as
well as scrap waste
resulting from make-ready.
Excessive variation
High inventory levels
Inadequate tools or equipment
Incapable processes
Insufficient training
Poor layouts unnecessary handling
Daily, K.W. (2005). Lean manufacturing handbook. DW Publishing Co.
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
Value
“Lean thinking therefore must start with a conscious attempt to precisely
define value in terms of specific products with specific capabilities offered
at specific prices through a dialogue with specific customers. The way to
do this is to ignore existing assets and technologies and to rethink firms on
a product-line basis with strong, dedicated product teams. This also
requires redefining the role for a firm’s technical experts and rethinking
just where in the world to create value.”
James Womack
Womack, J. & Jones, D. (2003). Lean thinking. New York, NY: Free Press.
1.
2.
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
Value Stream Mapping
3.
4.
5.
Visually documents a process
Provides fact-based process
description as basis for
understanding current problems
Enables teams to quickly see
improvements within the
process and begin defining
critical Xs (underlying causes)
Helps team see how a process
should work once they eliminate
waste
Helps communicate inside and
outside the organization
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
Visual Management
“Visual management is critical to achieving truly empowered
employees. Empowerment is not possible without information,
and the best way to insure that information is available is
through simple visual management techniques”
(Henderson & Larco, 2003).
The strategy of providing visual information on daily activities available for
everyone in the workplace.
-Shadow boards
-Visual display boards (safety, 6S rating, Quality, training, SOPs, On-time delivery, etc)
-Cell production status board (set-up times, TPM, etc)
-Red tag, yellow tag identification
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
Visual Management Board – 6S
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
QUAD’s “Island of Excellence”
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
Activity Board
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
Visual Management
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
Pull
“In the next few years, printing firms can learn to quickly print up small
lots of books and distribution warehouses can learn to replenish
bookstore shelves frequently. Eventually new ‘right sized’ book printing
technologies may come along and make it possible to simply print out the
books the customer wants at the moment the customer asks for them,
either in a bookstore or, even better, in the customer’s office or home.
And some customers may not want a physical copy of their ‘book’ at all,
Instead, they will request the electronic transfer of the text from the
‘publisher’ to their own computer, printing out an old-fashioned paper
version only if they happen to need it. The appropriate solution will found
once the members of the publishing value stream embrace the fourth
principle of lean thinking: pull.
(Womack & Jones, 2003, p.25, para. 2).
Womack, J. & Jones, D. (2003). Lean thinking. New York, NY: Free Press.
A systematic approach to eliminate downtime of equipment
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
Total Productive Maintenance
Five Pillars of TPM
1. Autonomous maintenance – to clean
2. Maintenance mindset and training – to detect
3. Planned maintenance system – to correct
4. Overall equipment effectiveness – to perfect
5. Early equipment management system – to protect
Program requires operators to be responsible for cleaning
and inspecting, lubricating, performing precision checks,
and other light maintenance tasks.
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
Total Productive Maintenance
Benefits:
1.
2.
3.
4.
5.
6.
Increases overall equipment effectiveness using improvement activities
Establishes autonomous maintenance engaging equipment operators
Established a planned maintenance system
Requires training to improve operation and maintenance skills
Institutes a system for preventive maintenance
Eliminates breakdown losses
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
Implementing a Lean Culture
“Lean organizations create a culture of continuous improvement, and
within that culture, they employ tools of lean to eliminate waste. Not
surprisingly, it begins with the customer (not the plant manager or
industrial engineer). The customer is the definer of value.”
Darren Dolcemascolo (2004)
Dolcemascolo, D. (2004).Implementing lean. Retrieved February 2, 2005 from http://www.emsstrategies.com
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
Implementing a Lean Initiative
Traditional Facility
Facility in Transition
Profit Leaders
Plant Wide Communications
Plant-wide meetings
with to local
management at least
Monthly. All
communication is one
way
Plant-wide meetings with
To local management at
Least monthly. Visual
communication of plant
vision, goals, and
performance has started.
Plant-wide and
Departmental meetings
As often as daily. Two
way communication.
Goals and performance
are understood and
known by everyone.
Employee Empowerment
None, generally an
adversarial relationship,
characterized by
blaming and finger
pointing. No one on the
shop floor is expected
to use anything other
than “arms & legs” in
the performance of the
job.
Employees are expected
to “manage” their work
area. Everyone is
encouraged to
participate, but middle
managers and
supervisors and road
blocks. Employee
suggestions system
started.
Work force feels like
owners. Integrated self
managed work teams.
Improvements
implemented without
direct management
involvement.
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
Implementing a Lean Initiative
Traditional Facility
Facility in Transition
Profit Leaders
Quality
Quality less important
than costs or schedules.
Emphasis is on
detection of errors.
Everyone thinks quality
is the responsibility of
the QC Department
QA department enforcer
of quality program
Supplier certification
program in place.
Everyone has “time”
stopping capability.
Error proofing prevents
defects from occurring,
Employees treat all
downstream operations
like customers. Quality
measurements only
meaningful in ppm.
Shop Floor Management
Supervisors used as
cops in direct labor
reporting system. Idle
machines viewed as a
problem. Scrap, rework
and downtime are
considered a cost of
doing business.
Supervisors feel
threatened as
responsibility and
accountability is pushed
down to the people on the
shop floor. Cop
management mentality is
replaced with trust and
respect.
Supervisors converted to
trainers, coaches, and
facilitators. Machine
operators give plant
tours to customers
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
Implementing a Lean Initiative
Traditional Facility
Facility in Transition
Profit Leaders
Training
No formal training
except as required by
law.
Some training available
to management.
Continuous and on-going
training in place and
available to everyone.
Training requirements
established for everyone.
Time required
5-10 years with
committed management
3-8 years with
committed management
Continuous improvement
techniques (Kaizen) must
be in place to hold
position. Benchmarks
change daily.
Major
Tools
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
Tool Kit Comparison
Cp/Cpk
DOE
SPC
FMEA
Regression
Process Map
5 whys /2 hows
Pareto
Fishbone
5s
Visual Mgmt
Poka-Yoke
Spaghetti Chart
Kanban
Takt Time
Std Work
SMED
TPM
Cellular Flow
CPI
6σ
Kaizen
Lean
Description
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
Process capability assessment
Design of experiments
Process control based on statistics and data analysis
Risk assessment tool
Correlate effect one variable has on another
Map process steps to communicate and identify opportunities
Determination methods for root cause discovery
Column chart ranking items highest to lowest
Cause / Effect Diagram
Elimination waste
Emphasis on visual techniques to manage process
Error proofing techniques
4
4
Visual production process map
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
Material storage technique used to control process
Determine pace or beat of a process
Evaluate tasks done during a process
Single minute exchange of dies - Quick machine set up
Integrate maintenance strategy with process
Reduce inventory & cycle time through process layout and pull
production techniques
Source: LEARNING and PRODUCTIVITY Pty. Ltd.
 2000, QualityToolBox.com, LLC, all rights reserved
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
A Paradigmatic Shift…a time for ch
“Lean Leaders have the knowledge and are well versed
in the definitions and methods of Lean. They embrace
radically different structures, strategies, and day-today processes to operate more effectively than ever
dreamed. And they can do it within a timeframe and a
positive culture that gets sustainable results.”
Susan Kelly
Kelly, S.L. (2003). Lean enterprise: From manufacturing to selling. Gravure (10).
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
A Paradigmatic Shift…a time for ch
“Our earnest advice to lean firms today is simple: To hell with
your competitors; compete against perfection by identifying all
activities that are muda and eliminating them. This is an
absolute rather than a relative standard which can provide the
essential North Star for any organization (in its most
spectacular application, it has kept the Toyota organization in
the lead for forty years). However, to put this admonition to
work you must master the techniques for eliminating muda.”
James Womack & Daniel Jones (20
Womack, J. & Jones, D. (2003). Lean thinking. New York, NY: Free Press.
Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
Think Lean,
Empower lean,
Coach lean,
And Sustain lean.
Thank you for your time…
Enjoy the rest of the conference!
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Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
Dailey, K.W. (2004). The lean manufacturing employee training manual. Tampa, FL: DW
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Ken Macro – California Polytechnic State University
ACUP: 2005 University of Missouri
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