GROUP 6 :

MAY ADEJINLE

IKA LAMBOGO

KEVIN ROSENQUIST

Lean Manufacturing

May

•IntroductionMay

•MethodKevin

•Results

Ika

•Discussion

AGENDA:

INTRODUCTION

Introduction EMD builds, sells, and services railway

transport locomotives.

Manufacture diesel engine solutions for: Marine ships, Oil rigs, and Power generators.

EMD products can be found operating in over 70 countries from Argentina – Zimbabwe.

The Company is the only diesel-electric locomotive manufacturer to have produced more than 72,500 engines and has the largest installed base in both North America and worldwide

HistoryINTRODUCTION

Benefit of recent acquisition: EMD can compete with rival manufacturer, General Electric

Headquarters is located in LaGrange, Illinois Includes engineering facilities and parts-manufacturing

operations.

EMD Plant in London, Ontario Final assembly of the locomotives is conducted here in

London Their products are then exported to customers around the

world.

INTRODUCTION

INTRODUCTION

EMD customers attain new levels of availability, reliability and asset utilization through: Technological Improvements Proactive Environmental Measures Customer-Focused Solution

EMD pride itself for listening to and supporting customers, pursuing continuous improvement, and building on a reputation for manufacturing excellence.

VALUES 

1. Focus on the Customer

2. Deliver on Our Commitments - Achieve Results

3. Lead with Integrity and Trust

4. Act Quickly and with a Sense of Urgency

5. Creatively Innovate Our Products and Services

6. Communicate Our Vision and Purpose

7. Develop and Motivate Our People

8. Continuously Improve Our Processes

9. Work in Teams

10. Recognize and Reward those who Walk this Talk

MISSION  

To restore Electro-Motive to its position as

market leader - not by recreating the past, but

by embracing the future

VISION  We will:  

Be highly responsive to customer needs and

issues

Deliver more reliable, more fuel efficient, more

innovative, and more cost-effective

locomotives, parts, and services

Make money, enabling a return on investment

and business reinvestment

Grow, through identifying new ways to better

serve our customers

INTRODUCTION

INTRODUCTION

Questions For You!

Which company recently acquired EMD?

What year?

METHOD

Introduction to Lean: Lean is a methodology that emphasizes the

minimization of activities that do not add value to the customer

Used to increase and sustain quality, improve process, and reduce costs by eliminating waste.

2 common goals of Lean: To improve quality by having the company understand its

customers’ needs & wants To eliminate waste

METHOD

Brief History of Lean: Lean principles come from Toyota, but was first

coined in 1988 by John Krafcik in an article called “Triumph of the Lean Production System.” The Ford Factor Toyota in 1953

The idea finally took hold in the US in the late 1970’s and 1980’s due to Japanese manufacturing competitors’ price & quality.

METHOD

Toyota Production System:

Toyota Production System (TPS) is another term for Lean

TPS has two pillar concepts:

Just-in-Time (JIT) – Continuous Flow

Jidoka – focuses on the “Human Touch”

METHOD

Lean Tools

5S Process: Seiri, Seiton, Seiso, Seiketsu, Shitsuke (Sort, Set in Order,

Shine, Standardize, and Sustain).

METHOD

Lean Tools

Kaizen Japanese for “Improvement”, is a philosophy that

focuses on continuous improvement of processes

METHOD

Define

Measure

Analyze

Improve

ControlDMAIC

Framework

Lean Tools

Kanban Japanese for “Sign-Board” or “Billboard”, is a

scheduling system used to determine what to produce, when to produce and how much to produce.

METHOD

METHOD

Over Production Transportation

Inventory Motion

Types of Waste

METHOD

Question For You!

Name One Type of Waste?

RESULTS

Interview BackgroundOne-on-One Interview:

Earl McDonald II, CPIM, CSCP, the Master Scheduler at EMD

Email Interview: Jim Albrecht, Director of Central Technical Services at

EMD LaGrange

RESULTS

Early History of Lean at EMD1980’s - 1990’s

EMD worked on leaning the business Companies’ lean advances soon disappeared & relapsed.

Recent History of Lean at EMDLate 2000’s

EMD reassessed its lean implementation from the 80’s & 90’s and decided that they needed to successfully reinstate lean to survive.

Hired employees that understand what it takes to implement lean (General Motor, Consulting Leadership)

RESULTS

Challenges of Implementing Lean at EMDKeeping the factory floor organized following

the 5S process.Started organizing their 800,000 square foot,

750 employee LaGrange plant over 2 years ago, but they are not done.

Employees need to be intrinsically motivated to implement and sustain lean initiatives.

RESULTS

RESULTS

Challenges of Implementing Lean at EMDKeeping the factory floor organized following

the 5S process.Started organizing their 800,000 square foot,

750 employee LaGrange plant over 2 years ago, but they are not done.

Employees need to be intrinsically motivated to implement and sustain lean initiatives.

RESULTS

RESULTS

ERP SYSTEM Undergoing Change Management

BenefitsResults were realized as soon as lean was

implements in 2008. The main benefits were seen in the assembly

of the engine itself. What used to take about 3weeks now only takes 3days

EMD’s OSHA recordable injury frequency dropped by nearly 80%

RESULTS

Impact of Lean Lean has positively impacted almost every

facet of the organizationReduction in:

80% Scrap rates 75% Labor per part manufactured 60% Inventory levels in the operations 30% Fuel consumption

RESULTS

Impact of Lean What kinds of LEAN tools are used by

EMD? We value stream map, 5-S, some Kanban, and poka

yoke are used in our manufacturing engineering new product introduction processes. We are managing flow with some Kanban, and are controlling flow to enable the pull systems to be exercised.

RESULTS

EMD utilizes lean tools: Total Quality Management 7 Step corrective action processes Leadership Development/Training for various levels of

the organization. Various quality control tools

Flowcharts Run Charts Check Sheets Histograms Pareto Charts Fishbone Diagrams (cause and effect) Scatter Diagrams

RESULTS

EMD Focuses Heavily on 8 Wastes:OverproductionTransportationInventoryMotionWaitingOver-ProcessingDefectsUnused Human Talent

RESULTS

90%

9%

1%

Preventable WasteUnavoidable WasteRaise your hand if you are paying atten-tion

EMD Defines WasteOverproduction:

Corrected by leadership giving direction

Transportation: EMD focuses on unnecessary movement of parts.

RESULTS

EMD Defines WasteInventory:

Inconsistent processes and bad planning create inventory shortages/overages

RESULTS

EMD Defines Waste

Motion: Overhead bridge cranes are all over the place, and

crane operators need to travel the length of the warehouse to get them.

People have to get out of the way and wait for the piece to be set down before passing

RESULTS

RESULTS

EMD Defines Waste

Waiting: Equipment and Human time

not utilized and unnecessary inventory.

Causes higher costs, increased cycle times, and heightened quality risk.

Ex: When cranes are overhead, workers sometimes have to wait long periods of time until it is safe to pass.

EMD Focuses Heavily on Waste:

Over Process: Result from poor product design requirements and

specifications. A lot of rework is needed with welding and retooling.

RESULTS

EMD Defines Waste

Defects: Difficult to prevent when there is clutter with

inventory and inconsistent flow. EMD can find some issues with software (emissions

testing)

Waste of Unused Human Talent: This waste is hard to measure. Example: Microsoft Excel

RESULTS

Question For You!

What was the primary challenge in implementing Lean at EMD?

RESULTS

DISCUSSION

EMD’s Approach to Quality:DISCUSSION

STRENGTH WEAKNESSKnowledgeable leadership pool that

understands leadership behaviorLack of Lean Culture

Training New Employee 4 hours of training for new employee

Customer FocusRecognize Benefits of Kanban, but

does not use it.

Effectiveness of LeanImplemented in 2008

2 months initiate the first improvement 2.5 years & on going process Main difficulty was to create 5S environment in

800,000 sq foot facility with 750 employees.

DISCUSSION

Effectiveness of Lean:

DISCUSSION

Result of Reduction in EMD due to Lean0%

10%

20%

30%

40%

50%

60%

70%

80%

Scrap Rates Inventory

Labor/Part Fuel Consumption

80%

Scr

ap R

ates

60% Inv

ento

ry

75% L

abor

/par

t 35

% F

uel

Consu

mpt

ion

Recommendation

DISCUSSION

EMD needs to implement a better strategy for “Change Management” & Training

Future DirectionWe believe that EMD will continually improve

their lean manufacturing processes. Culture of teamwork Improvement Communication Urgency to change

EMD will be able to see much better improvements in the productivity, costs, quality, and so on.

DISCUSSION

Question For You!

Name 1 Strength & 1 Weakness at EMD?

DISCUSSION

Lessons Learned

We learned how Lean was incorporated into a company.

Communication Time management is very crucial Early is better than late!

DISCUSSION

QUESTION?