Lean Process & Employee Involvement: Core of Innovative Manufacturing
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1 Lean Process & Employee Involvement: Core of Innovative Manufacturing Dave Tumbusch Director of Manufacturing Kim Leopold Sr. AME Operational Excellence Crown Equipment Corporation
2 Introduction to Crown 5 regional headquarters 2.4 Billion USD FY ,700 employees 17 manufacturing plants in 11 locations worldwide Global line of trucks designed to local work practices Over 500 retail locations across 84 countries Innovative fleet management solutions Leader in material handling innovation and technology Family owned and managed industry leader since 1945 One of the World s Largest Lift Truck Manufacturers
3 Global Line of Lift Trucks Designed to meet local standards and operator preferences
4 Global Manufacturing 17 Manufacturing Plants in 11 Different Locations
5 North American Manufacturing New Bremen, Ohio (Corporate) Troy, OH Greencastle, IN New Castle, IN Kinston, NC Queretaro, Mexico
6 New Bremen Manufacturing Fabrication/Welding/ Heavy Machining Precision Machining Wire Harness Assembly Plant/ Distribution Center Motor Plant/Plastics Electronic Assembly Mast Plant
7 Crown Company Policy: We are committed to leading the industry as manufacturer of choice by providing our customers with preferred products, parts and services that will support their success as well as our own. To that end, we are dedicated to the improvement of our people, product and processes.
8 Crown Principles, Approach & Tools
9 Crown Principles
10 Crown Lean Approach Leadership read Lean Culture by David Mann Developed a Plan Identified Modules Identified Sites Identified leads to deploy modules Executed a Structured Approach Module Development Subject Matter Expert Certification Annual Assessments Training for 100% of Leadership & Employees
11 Core Lean Tools 5S Standard Work Kaizen Value Stream Mapping Rapid Kaizen Structured Lean Tools Employee Engagement Success!
12 Continuous Improvement Culture People Principles Processes Crown Culture
13 Support Structure Corporate Operational Excellence Team* (7 People) *Supports all of Crown Plant Leadership Staff (Lean Plant Management Leadership System & Subject Matter Expert Coaches) (Lean Management System Coaches) (9 people) Subject Matter Experts (13% of support staff with White at least Belts 1 certification) (all employees) White Belts (All Employees) (80% Trained)
14 Crown s Lean Journey
15 Crown s Lean Journey
16 Lessons Learned Lean Project Managers are much different than Lean Coaches Focus needs to be on Developing People Establish standards to demonstrate desired lean behaviors to spread across the enterprise Examples: Lean Management System Modules Whitebelt
17 Employee Involvement is Key
18 Ownership of processes and work areas drive sustainment
19 Communication creates buy in from the support staff Plant 4 Operations Strategy Deployment X Matrix Increase quality of pin points and increase safe steps participation and feedback rates m m m Enhance safety teams m m m Reduce process time through the reduction NVA time and process design m m Enhance IDP's w a focus on Lean tool application and problem solving Support ops ex initiatives Reduce Quantity of Defects (External) m m m Determine process capability on critical processes m m m Improve material flow and reduce line-side inventory m m Increase capacity to support 5-yr projections m m m Increase Employee Ownership of Safety Improve direct labor conversion factor by 5% to support 5-year projections and attrition projections Improve plant Lean and problem solving skills Reduce Cost of Poor Quality and improve process capability Improve Material Velocity Ratio Capacity growth to support business goals 2nd Level Annual Improvement Priorities -AIP's FY2015/16 (how) Top Level AIP's FY 2015/16 (what) Annual Targets (when & how much) 2015/16 Breakthrough Objectives (what) Grade 100% of pin points and improve all non-specific / measurable pin points by end of Q2 Increase Safe Steps participation rate by 10% by end of Q3 Train 100% of Incident Investigation team on Basic Problem Solving by end of Q4 Reduce DPMO by 10% by the end of Q4 Complete NBO milk run analysis by end of Q2 Develop Standard Work for time studies & line rebalancing by end of Q1 Certify 20 additional RKE SME's by end of Q4 (12 from Mfg group and 5 from Mfg support, 3 from Planning group) Execute chain anchor automation project by end of Q3 Certify 2 additional VSM SME's (including 1 Transactional VSM SME) by end of Q4 Certify 3 additional Greenbelts by end of Q4 (1 manufacturing, 1 quality, 1 manufacturing support) Certify 4 additional Yellow belts by end of Q4 (1 manufacturing, 1 quality, 2 manufacturing support) Increase Velocity Ratio by 3% over last years average by end of Q4 (45% to 48%) Improve Rush on-time delivery to 99 percent for Top 1000 Service Items by end of Q4 Improve On-Time Delivery to 98 percent for Service Items by end of Q4 Complete & Implement Data Tag process future state VSM by end of Q4 (Increase maturity from 4 to 8) Complete 8 warranty activities by the end of Q4 Develop standard process to adjust component inventory levels (ex kanban) for schedule changes by Q4 (Increase maturity from 5 to 8) Reduce Less Than 90 Day Warranty to less than 5% by the end of Q4 Certify 2 Team Members in BSCM (Basics of Supply Chain Management / APICS) by end of Q4 Reduce number of Plant 4 EOs to be processed to less than 100 by end of Q4 Monthly IDP Reviews w all support team members by end of Q4 Improve Group Leader soft skills by end of Q4 Implement Quad chart gemba boards on all lines by end of Q1 Increase number of Mistake Proofing's implemented by 30% by end of Q4 Train 96 EE's on Whitebelt by the end of Q4 Implement 2 Internal Key Features by end of Q4 Improve RR/RM efficiency by 6% by end of Q4 Support product development project, C1669, in order to run MCS in November, 2015 Reduce RR Plumb rework trucks by 30% by end of Q3 PFMEA created for RR by the end of Q3 for warranty based activity PFMEA created for RM by the end of Q4 for warranty based activity Create Control Plan for warranty based activity by the end of Q4 for RM model Implement Cleco Torque system in Cell 1 by the end of Q1 Improve TSP efficiency by 6% by end of Q2 Display TS / TSP baseline spaghetti diagrams in 100% of stations by end of Q3 Create Control Plan for warranty based activity by the end of Q1 Improve SP efficiency by 2.5% by end of Q2 Reduce SP rework caused by internal defects by 10% by end of Q4 PFMEA created by the end of Q2 for warranty based activity Create Control Plan for warranty based activity by the end of Q3 Improve RC efficiency by 6% by end of Q4 PFMEA created by the end of Q1 for warranty based activity Create Control Plan for warranty based activity by the end of Q2 Improve Paint efficiency by 3% by end of Q4 Reduce Powder Coat unplanned DT by 25% by end of Q4 Complete capital project for the 5-stage washer header & riser replacement through production start-up by March 31, 2015 Complete capital project for the powder coat booth oscillator replacements through production start-up by April 13, 2015 Develop a business plan for painting 390 yard parts in MX by end of Q2 Complete transition of paint std's to GRN by end of Q4 Complete capital project for table blaster replacement by the end of Q4 Doug Martz Dean Howe Melissa Darrigan Bruce Bergman Reduce TCIR and LWCIR by 25% Improve competencies of NBO Manufacturing staff and manufacturing support teams Execute FY15/16 operating budget, capital plan, and cost reduction targets IDP/C/Q/ IDP/C/Q/ IDP/C/Q/ IDP/C/Q/ IDP/C/Q/ IDP/C/Q/ S S S Q C C Cap C/D D D C/D/Q Q D/C Q/C IDP/D/C C/D S/Q/C/D S/Q/C/D S/Q/C/D Q Q/C/D Q/C Q Q Q Q Q/Cap Q/C/D Q Q Q/C/D Q/C/D Q Q Q/C/D Q Q C/D C/D C/D/Cap C/D/Cap C/D C C/D/Cap D D D D S S Plt 1 Plt 2 Plt 3 Plt 4 Plt 5 Plt 6 Plt 7 Plt 8 Plt 9 Plt 10 Plt 11 Plt 12 Plt 13 Plt 14 Plt 15 Plt 16 Plt 17 Plt 18 Plt 19 Plt 20 Plt 21 Plt 22 Plt 23 Plt 24 Plt 25 Plt 26 RR1 RR2 RR3 RR4 RR5 RR6 RR7 TS1 TS2 TS3 SP1 SP2 SP3 SP4 RC1 RC2 RC3 PT1 PT2 PT3 PT4 PT5 PT6 PT7 Team Members OBJECTIVES APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR Frequency Rate TCIR < 2014 (4.72) Severity Rate Owner: Chris LWCIR < 2014 (1.57) Rohrbach 7211 Internal DPMO External DPMO Goal <TBD 2579 Project Warranty Activities Closed OTD Goal 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% Champion : Dave Tumbusch OTD Actual 97.0% 97.0% 97.0% 97.0% 97.0% 97.0% 97.0% 97.0% 97.0% 97.0% 97.0% 97.0% Reduce cost of poor quality by 10% by improving the quality of our processes and products Plant 4 On-Time Delivery to Service Orders 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% Primary Responsibility 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% Apply lean tools to reduce and/or eliminate waste in our processes. Direct Labor Conversion Factor 76.7% 76.7% 76.7% 76.7% 76.7% 76.7% 76.7% 76.7% 76.7% 76.7% 76.7% 76.7% Overall Conversion Factor 67.3% 67.3% 67.3% 67.3% 67.3% 67.3% 67.3% 67.3% 67.3% 67.3% 67.3% 67.3% m Secondary Responsibility
20 Focus on foundational tools that create sustainable habits TPM 5S Standard Work Kaizen & Rapid Kaizen Value Stream Mapping Set Up Reduction
21 Continuous Improvement Tools & Training
22 5S Indicates change is happening Applicable to both office and manufacturing areas
23 Operator Standard Work Baseline for improvements Difference between Standard Work (What) & Work Instructions (How) Where there is no standard, there can be no kaizen Taiichi Ohno
24 Kaizen Events Engage people in implementing ideas Teamwork (cross functional roles) Quick wins Build Momentum
25 Value Stream Mapping Organize change efforts and resources Connect improvements to corporate strategy Connect value streams across the business
26 Rapid Kaizen Events Point Improvements Achieve Target Conditions Use tools such as Gemba Walks Spaghetti Charts PDCA Cycles
27 Whitebelt Lean Fundamentals Creates a common language Hands on application of lean tools Generates excitement for lean application in their work areas
28 Lean Management System Leaders responsibility: Is the process running as designed? How can we improve the process? We focus on the Respect for People!
29 4 principle elements of LMS Leader Standard Work Visual Controls Daily Accountability Leader Discipline Plant Mgr Prod Mgr Mfg Supv Group Ldr
30 Crown Challenge Engages and rewards employees Improves communication and teamwork Supports business goals and objectives Safety, Quality, Delivery, Cost, and Operational Excellence Creates a standard recognition process for achievements
31 Our Next Steps
32 Our Strategy for Manufacturing Focus on implementing and developing Subject Matter Experts in the Foundational Modules at each site 5S Standard Work Kaizen Value Stream Mapping Rapid Kaizen Leadership continues Lean Management System training and developing themselves as Lean Coaches Annual Progress Assessment
33 As we grow Our intent is that our: Org structure will change as sites become less dependent on the corporate team New areas will be developed similar to manufacturing Developing Subject Matter Experts in Core 5 Tools Advanced Lean Experts will increase and become coaches to new Subject Matter Experts Leadership will be trained and help deliver training to new leaders ( Walk the Talk )
34 Future Training & Modules Advanced Lean course for Subject Matter Experts Facilitation Training for Subject Matter Experts Transactional Lean Application Training and/or Modules 3P (Production Preparation Process) Module
35 For your consideration
36 For your consideration Put together a plan Focus your efforts Conceptual Training / Common Language Use proper tools to address problems Create an environment for involvement Determine your method to drive sustainment Leadership involvement
37 Thank You! Please complete the session survey at: Session: TP/07 Lean Process & Employee Involvement: Core of Innovative Manufacturing Dave Tumbusch / Kim Leopold Crown Equipment Corporation David.Tumbusch@crown.com Kim.Leopold@crown.com
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