Professional Documents
Culture Documents
LeanSigma® Overview
CULTURAL TRANSFORMATION
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LEAD-TIME REDUCTION
CONTINUOUS IMPROVEMENT
CONTINUOUS IMPROVEMENT
• Increases customer loyalty and market share
• Sustains and builds competitive advantages
• Achieves growth in sales and earnings
• Improves stakeholder value
BUSINESS
PRODUCT PROCESS /
MANUFACTURING SUPPLY &
DEVELOPMENT Lean production
Design for DISTRIBUTION
System LeanSigma
LeanSigma
Value Chain
SKB © 2007 TBM Consulting Group, Inc. All Rights Reserved. 1-2
What is LeanSigma®?
SKB © 2007 TBM Consulting Group, Inc. All Rights Reserved. 1-3
Reducing Lead-Time Across Your Value Chain
Shopfloor Kaizen
Prod
O-E Supp MFG Dist Cust A/R
Plan
Operational Lead Time
SKB © 2007 TBM Consulting Group, Inc. All Rights Reserved. 1-4
Impact of Lead-Time Reduction
SKB © 2007 TBM Consulting Group, Inc. All Rights Reserved. 1-5
Successful Companies
Packaging 12 weeks
Lantech 17% 20% 28%
Equipment to 2 weeks
Wire
28 days
Wiremold Management 18% 33% 75%
to 2 days
Systems
Electrical
Products 8 weeks
Hubbell 6% 15% 47%
to 2-4 wks
Lighting
SKB © 2007 TBM Consulting Group, Inc. All Rights Reserved. 1-6
Time Based Management
Mercury Marine
Video
SKB © 2007 TBM Consulting Group, Inc. All Rights Reserved. 1-8
Value-Add vs. Non-Value-Add
Value-Adding Activities
Transform materials and
information into products and
services the customer wants
Non-Value-Adding Activities
Consume resources, but don't
directly contribute to product
or service
SKB © 2007 TBM Consulting Group, Inc. All Rights Reserved. 1-9
Wastes in Manufacturing
Up to 90+% of any Process is Wasted Time or Activity
Excessive Excessive Motion Defective Products
Inventories (Walking to Next Task, etc.) (Identifying, Handling, Fixing)
Typical Original
99% Lead Time
Company
0.5%
Traditional
Manufacturing 99.5%
Improvement
Minor
10% Improvement