Lean Fundamentals Overview Webinar

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Your Partner For Value-Centered Solutions LEAN FUNDAMENTALS WELCOME

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Webinar held on July 15, 2009Lean Fundamentals OverviewPresented by: Michael E. ParkerDescription:Utilizing my one-on-one training by lean experts from Toyota Motor Corporation (TMC) in Japan's Toyota City, you'll receive an overview on the main fundamentals that drive the lean management philosophy and learn how you can begin implementing these philosophies in your business. Whether you are a small business owner, entrepreneur, mid-level to senior-level manager or director, you will gain valuable insight on the critical business issues you are facing today and how to utilize lean management principles to recognize areas to reduce costs, add value and change your processes for the better. We will discuss these key fundamentals of lean management: o Cost Reduction Principle o Lead-Time Reduction o 7 Forms of Waste o Just-In-Time o Built-in-Quality (Jidoka) o Level Scheduling (Heijunka) o Pull Systems (Kanban) o Kaizen

Transcript of Lean Fundamentals Overview Webinar

Page 1: Lean Fundamentals Overview Webinar

Your Partner For

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LEAN FUNDAMENTALS

WELCOME

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Webinar Outline• About Michael E. Parker

• Business Today

• The Beginning of TPS

• Lean Fundamentals Overview

• Lean Certification

• Questions & Answers

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Your Partner For

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About Michael E. Parker

LEAN FUNDAMENTALS

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B.S. Operations & Procurement

M.B.A in Management Science

1st Generation Lean Expertise

Handpicked by Akio Toyoda

Author & Award Winning Entrepreneur

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Your Partner For

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Business Today

LEAN FUNDAMENTALS

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Employee Morale & Customer Satisfaction

Given the current economy with businesses downsizing and cutting costs to stay alive, and with some

even passing costs to the customer, how do you keep employees happy, motivated and productive as well as meet/exceed customer satisfaction

and create/maintain customer loyalty?

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More Money for Less Service?Example: Transportation services are raising

fares and cutting back on service… so customers are paying more for getting where they need

to go while having to deal with less convenient and infrequent

scheduling.

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What’s GM Going To Do?The new General Motors will be faster and more responsive to

customers than the old one, and it will make money and repay

government loans faster than required, CEO Fritz Henderson said

Friday as a leaner version of the automaker emerged from bankruptcy protection…

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What’s GM Going To Do?

The bulk of General Motors Corp.'s assets were transferred to a

company controlled by the U.S. government. He said the company now will focus more on customers, including a partnership with eBay to test auctioning vehicles online.

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What’s GM Going To Do?

The new GM will also build more cars and trucks that consumers

want and launch them faster than in the past, the CEO said.

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Charged to Use the Bathroom?

Ryanair CEO Michael O’Leary’s told the BBC that Ryanair was

considering charging passengers to use the toilet in flight. O’Leary says the airline has looked at the idea before and is investigating it once again. O’Leary told the BBC

Breakfast show.

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Unfair Baggage Fees?Travelers aren't immune from

rising fees. Starting Wednesday, June 10, United Airlines customers

who don't pay their checked-baggage fees online will start

paying an extra $5 at the airport, Chicagotribune.com says. That will

amount to $20 for the first bag and $30 for the second. US

Airways will follow suit.

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Your Partner For

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of TPS

LEAN FUNDAMENTALS

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The Three TPS Pioneers

Built-In-Quality

Sakichi Toyoda

Just-in-Time

Kiichiro Toyoda

Pull Systems

Taiichi Ohno

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Comments – Kiichiro Toyoda“I plan to cut down on the slack time within

work processes and in the shipping of parts and materials as much as possible. As the basic principle in realizing this plan, I will

uphold the just-in-time approach.

The guiding rule is not to have goods shipped too early or too late.”

Kiichiro Toyoda, founder of Toyota Motor Company, 1938

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Comments – Taiichi Ohno

“All we are doing is looking at the timeline from the moment the customer gives us

an order to the point when we collect the cash. And we are reducing that time by removing the non-value added wastes”

Taiichi Ohno, 1988

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Hard Times Led to TPS

Don’t manufacture defective parts. Get rid of them on the spot.

JUST-IN-TIME PRODUCTION

• What is needed,• When it is needed,• in the right amount,

&• in the right quality

Don’t buy any unnecessary materials and don’t deliver them. Don’t produce products without any order. Sell products as soon as production is completed

Non-Debt Management

JIDOKA• Don’t pass the defective parts onto the following process

Toyota Production System

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Hard Times led to TPS• TPS started after World War II

• It began to be noticed after 1973’s oil crisis

• In 1974 Japan’s economy was in a state of zero growth

• Toyota was able to somehow sustain strong earnings in 1975, 1976, and 1977

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Your Partner For

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Overview

LEAN FUNDAMENTALS

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A “Customer First” Attitude “If the customer is

not satisfiednothing else

matters!”

“If you’re not striving for customer satisfaction, then

why are you in business anyway?”

Customers want:

• the best possible product• at the lowest possible cost

• as soon as possible

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The Highest Quality Vehicle

• There is an increase in Quality when team members learn to identify and eliminate waste.

• Eliminating waste consists ofpreventing defects which willimprove quality.

• Within the TPS philosophy it is important to realize that quality should be “built-in” at each process (Jidoka).

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Shortest Possible Lead-Time

• Must ensure that the product is available to the user when they want it:– demands great flexibility– ability to produce in the shortest lead-time

• Lead-Time– In a logistics context, the time between the point of order and the receipt of

the goods ordered.

• The new competitive advantage – “Who can get value to the customer faster?”

ORDER SUPPLIER MANUFACTURE SHIPPING CUSTOMER

LEAD-TIME

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Respect For The Human Element• Customer satisfaction is a result of team member

satisfaction. • All team members must participate in the system.• There must be a solid framework for cultivating

capable leaders and enhancing team member skills.• Improvement should be driven

by those who do the work.• Encourage teamwork and train

team members to identify and attack waste in all forms.

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The Lowest Possible Cost“Cost Plus Principle vs. Cost Reduction Principle”Cost-Plus PrincipleSales price = Cost + Profit

“If cost goes up, then sales price does too”

Cost Reduction PrincipleSales Price - Cost = Profit

“Sales price is decided accordingto market conditions. Profit is increased only if costs are kept

under the sales price”.

To reduce cost you must:• Distinguish between what is absolutely

necessary and what is not absolutely necessary.• Realize that cost varies according to the production

method being utilized. Some methods of building avehicle are more costly than others.

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Attacking Waste• The 3 M’s:

– MUDA Non-value added– MURI Overburden– MURA Unevenness

• The 7 Forms Of MUDA or Waste:– MUDA of Overproduction– MUDA of Waiting– MUDA of Conveyance– MUDA in Processing– MUDA of Inventory– MUDA of Motion– MUDA of Correction“Muda is an open trench that

stops you from flowing smoothly”

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Your Partner For

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Certification

LEAN FUNDAMENTALS

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Curriculum Overview1. Understanding the Toyota Production System (1.5h)

2. Identifying and Eliminating the 7 Forms of Waste (1.5h)

3. The Benefits of Level Scheduling (1.5h)

4. The Pull System Philosophy & Kanban (1.5h)

5. Just-In-Time (1.5h)

6. Built-In-Quality & Visual Control (1.5h)

6 Classes @ $99 each

Total Cost: $594

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Early Bird Discount

Early Bird Discount if you sign up byJuly 24, 2009:

6 Classes @ $49 each

Only $294

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Prepay for Only $249.95 ($44 off the discount)

• Lean Fundamentals Certification1. Understanding the Toyota Production System

2. Identifying and Eliminating the 7 Forms of Waste

3. The Benefits of Level Scheduling

4. The Pull System Philosophy & Kanban

5. Just-In-Time

6. Built-In-Quality & Visual Control

– Autographed copy of “Who Said So?” (Valued at $19.95)

– Free webinar on Standardization & Kaizen (Valued at $99)

Sessions

viewable for 30

days

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What Is This Worth??

• Total Value = $713

– 6 Lean Fundamental Classes

– 1 Bonus Class:

Standardization & Kaizen

– Autographed

“Who Said So?” Book

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This Is A Great Deal!!

VALUE

$713If you prepay

by July 24

$249.95

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To Register Visit Us Online at:vcminstitute.comclick “Products” then “Webinars”

LEAN FUNDAMENTALS

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Your Partner For

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Answers

LEAN FUNDAMENTALS