The following case histories are selected examples to demonstrate the range of our management consulting activities. Not surprisingly, implementing and sustaining Lean has proven to be a major challenge for many U.S. companies. Principals at Lean Street, LLC have over 70 years of experience in pioneering successful and progressive Lean Manufacturing initiatives.  To explore the feasibility of developing and implementing an interactive transformation for your business, please call (904) 583-0378 (Cell), (904) 261-8384 (Office) or e-mail:  Leanstreet@BellSouth.net

MACHINE TOOL MANUFACTURER TRANSFORMATION / Process Departments to Cells

Problems / Issues:

•ü       High Parts Inventories  & WIP Parts Storage Areas & Inter-department Travel Time

•ü       Surface Damage to Stored Parts (Rust, dents, scratches)

•ü       High Setup Time (Up to 8 hours per machine)

•ü       High Lead Time (4 turns)

Actions / Solutions:

•ü       Value Stream Analysis (Current & Future State)

•ü       Senior Staff "Best Practices" overview, strategic goals

•ü       Project Plan (What, Who, How, When)

•ü       Plant Layout utilizing product cells, pull / visual tools, continuous flow

•ü       Plan Execution

Results:

•ü       From (4) process departments w/ (38) operators, to (2) cells w/ (16) operators

•ü       From (4) turns, to (24) turns (from build for inventory to build for internal customer demand)

•ü       From (8) hour set up per machine, to <(1) hour set up per machine

•ü       Approximately 25% floor space freed up

Problems / Issues:

•ü       Work In Process (WIP)

•ü       Change-over Time

•ü       Manpower Requirement (Average cell = 4 machines x 2 shifts = 8 operators)

•ü       Process Variability (Operator intervention, machine & gaging R & R)

•ü       Time to Develop New Machine

Actions / Solutions:

•ü       Value Stream Analysis (Current & Future State)

•ü       Senior Staff "Best Practices" overview, strategic goals

•ü       Project Plan (What, Who, How, When)

•ü       Purchase (75) CNC Machines

•ü       Transition all parts fabrication from manual to CNC equipment

Results:

•ü       From (24) turns, to (40) turns (From Batch to single order flow)

•ü       From (1) hour per machine, to zero set up time (CNC machines with pallet shuttle system)

•ü       From cells, to CNC work center (Average cell manpower = 8, average CNC machine = 2)

•ü       Cum. yield from 78% to 99%

•ü       New Machine Development Time reduced by 55% (5 new machines in 2 years)

Problems / Issues:

•ü       Late Deliveries

•ü       High Cost

•ü       Rework, Scrap (Process Variability, Operator intervention, machine & gaging R & R)

•ü       Obsolete metrics (Earned hours, efficiency)

Actions / Solutions:

•ü       Value Stream Analysis (Current & Future State)

•ü       Senior Staff alignment, buy-in

•ü       Tactical Plan (What, Who, How, When)

•ü       From batch processing to single order flow

•ü       Re-design process & gaging, poka-yoke, train mgmt & operators

Results:

•ü       From (6) weeks late delivery to 100% on-time delivery

•ü       From 20% scrap, rework, non-conformance, to < 1%

•ü       From gaging consuming >80% of tolerance, to <10%

•ü       Cumulative (Rolled Thru) yield from 78% to 99%

Problems / Issues:

•ü       Unhappy customers (Military, FAA, Foreign)

•ü       Late Deliveries (>1 year)

•ü       High Cost / Operating @ loss ($100MM / yr)

•ü       Rework, Scrap (80% scrap, rework, non-conformance)

•ü       Obsolete metrics (Earned hours, efficiency)

Actions / Solutions:

•ü       Value Stream Analysis (Current & Future State)

•ü       Senior Staff "Best Practices" overview, strategic goals, alignment

•ü       Systematic reduction of non-value added waste (Lean) & process variation (SPC)

•ü       Transition from earned hours & efficiency to lead time and on-time delivery

•ü       Transition from batch processing to single order flow

•ü       Develop high performance teams, train mgmt & factory in Lean techniques (Lean + SPC)

Results:

•ü       From >1 year late delivery to 91% on-time delivery

•ü       From 80% scrap, rework, non-conformance to < 2%

•ü       From high rework to "certified supplier"

•ü       From (5) mgmt layers to (3) layers with High performance teams

•ü       From an annual $100MM loss to $30MM profit

•ü       FAA customer awarded this division an extended contract

Problems / Issues:

•ü       Late Deliveries (Several days to weeks)

•ü       (4) week lead time for a product with <3 hours value added time

•ü       High Inventories / Large Batch Processing

•ü       Parts Missing @ sub-assembly & final assembly

•ü       Obsolete metrics (Earned hours, efficiency)

Actions / Solutions:

•ü       Value Stream Analysis (Current & Future State)

•ü       Eliminate "2 week credit holds" on all incoming orders

•ü       Transition from earned hours & efficiency, to lead time and on-time delivery

•ü       Re-configure flow to pull / visual system (supermarkets & kanbans)

•ü       Reduce press room change-over time (SMED) from (2) hours to (2) minutes

•ü       Eliminate in-process stock room

•ü       Transition from large batch processing, to internal customer demand

•ü       Eliminate in-house storage of finished product

•ü       Develop high performance teams, train mgmt & factory in Lean techniques (Lean + SPC)

Results:

•ü       Reduce order entry cycle from 2 weeks to 2 days

•ü       From batch build & store, to build / ship to customer

•ü       Free up 25% of  contiguous factory floor space (Later used for (3) plant consolidation)

•ü       From (4) mgmt layers to (3) layers with High performance teams

•ü       Improve Lead time from (4) weeks to (3) days

Problems / Issues:

•ü       Late Deliveries (Several weeks)

•ü       High WIP levels in sub-assembly

•ü       High Inventories / Large Batch Processing

•ü       Parts Missing @ sub-assembly & final assembly

•ü       Obsolete metrics (Earned hours, efficiency)

Actions / Solutions:

•ü       Value Stream Analysis

•ü       Senior Staff training, Lean Overview, Benchmarking, strategic goals

•ü       Tactical plan and buy-in

•ü       Transition from earned hours & efficiency, to lead time and on-time delivery

•ü       Re-configure flow to pull / visual system (supermarkets & kanbans)

•ü       Set up supermarkets at cell level

•ü       Develop & install a large housing cell ($2MM)

•ü       Transition from large batch processing, to internal customer demand

•ü       Set up Kanbans for in-country suppliers

•ü       Reduce in-house storage of finished product

•ü       Develop high performance teams, train mgmt & factory in Lean techniques (Lean + Six Sigma)

Results:

•ü       Reduce order entry cycle from 2 weeks to 4 days (standard products)

•ü       From batch build & store, to build / ship to customer demand

•ü       Reduce component fabrication from (3) weeks to (3) days

•ü       Reduce component WIP by 75%, utilizing supermarkets

•ü       From (4) turns, to (13) turns

•ü       Set up high performance teams in new business unit

•ü       Improve Lead time from (12) weeks to (3) weeks

Problems / Issues:

•ü       High Parts Inventories, WIP, Parts Storage Areas & High Queue Time

•ü       Surface Damage to Stored Parts (Rust, dents, scratches)

•ü       Parts run on manual machines utilizing "low cost" operators

•ü       High scrap rates (occasionally scrap all castings in run)

•ü       High Lead Time (4 turns)

Actions / Solutions:

•ü       Value Stream Analysis

•ü       Senior Staff  meetings (utilizing interpreters)

•ü       - convince senior team to build to customer req'mt

•ü       - convince senior team to change machining processes

•ü       Develop robust process - critical to build it right the first time

•ü       Parts machined on CNC machining centers

•ü       Train mfg eng, materials managers, operators in concepts of continuous flow

•ü       Transition to new philosophy

Results:

•ü       From large batch size (250) to customer order (<10)

•ü       From (4) turns, to (12) turns - (eliminate build to inventory)

•ü       From (10) operations to (2) operations

•ü       From >85% queue time to <20%)

•ü       From high scrap rates to 95% cum. yield

•ü       From >6 weeks to <1 week lead time

•ü       From high rework at assembly to interchangeable parts

•ü       Accomplished in (2) week

Problems / Issues:

•ü       High Parts Inventories & Inter-department Travel Time

•ü       Parts Missing

•ü       Late Deliveries

•ü       Product Line Not Profitable

Actions / Solutions:

•ü       Value Stream Analysis (Current & Future State)

•ü       Kaizen Event (5) day Plan (What, Who, How, When)

•ü       Lean Training for Senior Staff & Kaizen Team

•ü       Plant Layout utilizing product cells, pull / visual tools, continuous flow

•ü       Plan Execution - Configure Cell

Results: