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Page 1: Dromone’s Lean Journey Presentation - Engineers Ireland · Dromone’s Lean Journey Presentation April 2014 Philip Gillic Business System Manager . Professional Engineering Product

Professional Engineering

Dromone’s Lean Journey Presentation

April 2014

Philip Gillic

Business System Manager

Page 2: Dromone’s Lean Journey Presentation - Engineers Ireland · Dromone’s Lean Journey Presentation April 2014 Philip Gillic Business System Manager . Professional Engineering Product

Professional Engineering

Product Portfolio

Agriculture Tractor Pick Up Hitch 58% Revenue

Construction Excavator Quick Coupler 42% Revenue

Page 3: Dromone’s Lean Journey Presentation - Engineers Ireland · Dromone’s Lean Journey Presentation April 2014 Philip Gillic Business System Manager . Professional Engineering Product

Professional Engineering

OEM Business

55% Total Revenue

OED Agriculture Distributor

22% Total Revenue

Customer Portfolio

Construction Distributor

23% Total Revenue

Page 4: Dromone’s Lean Journey Presentation - Engineers Ireland · Dromone’s Lean Journey Presentation April 2014 Philip Gillic Business System Manager . Professional Engineering Product

Professional Engineering

2015 Company Goals

Professionalise all levels of the Dromone organisation

Grow sales profitably to meet 2015 plan

Protect existing business:

Quality, Service, Competitiveness

Exceed industry expectations in:

Quality, Safety and Environmental protection

Implement Right First Time principles

Develop robust supply chain through supplier management

Page 5: Dromone’s Lean Journey Presentation - Engineers Ireland · Dromone’s Lean Journey Presentation April 2014 Philip Gillic Business System Manager . Professional Engineering Product

Professional Engineering

Operations

Excellence

Right First Time.

Cost reduction through-

efficiency improvement.

Throughput Time.

Customer

Management

Voice of the Customer.

Sales Margin.

Key Account Management.

Supplier

Management

Cost Reduction.

Right First Time.

Reduced Inventory.

Engineering

Design

New Product Introduction.

Right First Time.

Continuous Professional-

Development (CPD).

What we have to achieve

Page 6: Dromone’s Lean Journey Presentation - Engineers Ireland · Dromone’s Lean Journey Presentation April 2014 Philip Gillic Business System Manager . Professional Engineering Product

Professional Engineering

Phase 1:

Analysis

Map Current State & understand major

issues

Provide core skills training in Problem

Solving, Project Management & Lean

Create High Level Future State Vision

& Roadmap

Phase 2:

Stabilisation

Eliminate 8 basic wastes & deploy Standard Work

Introduce RFT principles & effective

NCR Process

Improve NPI Process & deploy PFMEA

Improve performance of

process constraints & start to reduce

batch sizes

Phase 3:

Process Design

Develop detailed Future State Map

Continue to stabilise, deploy standard work,

reduce batch sizes, & load level

Modify the Planning process to produce products on EPEX

Cycles

Phase 4:

Introduction

Phase 5:

Improvement

Implement layout

changes, Kanban &

Pull Systems

Deploy Andon and

Jidoka principles to

deal with abnormal

conditions

Kick off

improvement

programme with

major suppliers

Introduce Heijunka

Boards

Reduce EPEX Cycle

to collapse

throughput times

Page 7: Dromone’s Lean Journey Presentation - Engineers Ireland · Dromone’s Lean Journey Presentation April 2014 Philip Gillic Business System Manager . Professional Engineering Product

Professional Engineering

Feeling the Pain

Burning Platform

Value Stream Mapping

Urgency

Constraint Identification Data Flow

Product Flow

Throughput Time

Order fulfilment 2.2 months

The activity ratio was 3.4%

Constraint Identification

CNC drilling OEE was 29%

Batch processing prevailed

Local functional efficiency

Page 8: Dromone’s Lean Journey Presentation - Engineers Ireland · Dromone’s Lean Journey Presentation April 2014 Philip Gillic Business System Manager . Professional Engineering Product

Professional Engineering

Believing In Lean

Importance of believing

Senior management & key person confidence

Clear goals

Test and learn in safe environment

Learning and Practice

Zero Defect Work Shop

Quick Change Over workshop

Lead Time Reduction Work Shop

Page 9: Dromone’s Lean Journey Presentation - Engineers Ireland · Dromone’s Lean Journey Presentation April 2014 Philip Gillic Business System Manager . Professional Engineering Product

Professional Engineering

Clear Lean Thinking

Importance of Stable Processes

Critical thinking skills

Structure and common language

Tools and skills

New Product Introduction Practices

KT Problem Solving training

Customer Communication using KT

tools

KT Project Management Training

Page 10: Dromone’s Lean Journey Presentation - Engineers Ireland · Dromone’s Lean Journey Presentation April 2014 Philip Gillic Business System Manager . Professional Engineering Product

Professional Engineering

Islands of Excellence

Early success is critical

Illustration of what “Good” looks like

Confidence in the process

Early champion and advocates

Assembly Area Project

Physical changes in the area

Team living the beliefs and behaviours

Team Leader Champion: Mick Lynch

Quality Problems Originating In Final Assembly

2013

0

2

4

6

8

10

12

14

16

JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC

Series1 Linear (Series1)

Standard Time Tracking across Product Family

900

1162

13201380

840702 720

1800

2949

400

90150200

0

500

1000

1500

2000

2500

3000

3500

1 2 3 4 5 6 7 8 9 10 11 12

Measurement Number

Std

. T

ime

in

se

co

nd

s

Large Pushback (A)

Large Pushback (B)

Small Pushback

Mousetrap

Roller

Vertical

Acc Assy

Direct Pack Acc

K80 Ball

Page 11: Dromone’s Lean Journey Presentation - Engineers Ireland · Dromone’s Lean Journey Presentation April 2014 Philip Gillic Business System Manager . Professional Engineering Product

Professional Engineering

Knocking Down Barriers

New Problems and Challenges

Challenges strengthen Lean journey

Vocal and Passive Resistance

Physical issues: batch size reduction

Dealing with challenges

“Call to arms”

Motivated middle management

New Process Engineering Team 0

500

1000

1500

2000

2500

3000

3500

4000

Ho

urs

Wk 25 Wk 33 Wk37 Wk 39 Wk 41 Wk 43

Welding Constraint Arrears KPI

Page 12: Dromone’s Lean Journey Presentation - Engineers Ireland · Dromone’s Lean Journey Presentation April 2014 Philip Gillic Business System Manager . Professional Engineering Product

Professional Engineering

Celebrating Success

Inspire Transformation

Motivation for the team

Reinforce success

Internal company success

Secure Employment & Personal

Development

New business contracts

JCB, Volvo Construction

Equipment, Agco

Page 13: Dromone’s Lean Journey Presentation - Engineers Ireland · Dromone’s Lean Journey Presentation April 2014 Philip Gillic Business System Manager . Professional Engineering Product

Professional Engineering

Celebrating Success

External recognition

Agco Supplier Quality Award 2012

Engineers Ireland CPD employer of the year

National Award 2013

Regional Company of the Year Award 2013

National Lean Conference Participation, Dublin

Castle, Ireland

IMC 29 Key Note Speaker on Dromone Lean

Systems Project 2013

Page 14: Dromone’s Lean Journey Presentation - Engineers Ireland · Dromone’s Lean Journey Presentation April 2014 Philip Gillic Business System Manager . Professional Engineering Product

Professional Engineering

Summary

Start of the Lean Journey for Dromone

Big step in the right direction

Feeling the pain and believing in Lean

Clear thinking and knocking down barriers

Celebrating success

Positive business and customer impact

Page 15: Dromone’s Lean Journey Presentation - Engineers Ireland · Dromone’s Lean Journey Presentation April 2014 Philip Gillic Business System Manager . Professional Engineering Product

Professional Engineering