Verschlankung

Way to world-class Efficiency

The lean transformation program delivers implemented improvements in speed, quality, and efficiency. It addresses the structure, skills of people, processes, and support systems simultaneously to achieve a sustainable level of operational excellence. Expected impact is a double-digit improvement across the entire scorecard.

Lean Transformation Program (LTP)

Purpose: shortening order-to-cash cycle to achieve operational excellence
Application: when competitiveness is eroding and losing market share
Process: applying Flow+Takt+Pull+Leveling to remove inefficiencies
Duration: 6-12 months
Deliverable: implemented improvements, trained people to sustain them
Impact: improvements in speed, quality, and delivery at lower inventory:
10-30% when some lean principles are being applied already
30-50% when starting the lean journey from a traditional base
Result: significantly improved competitiveness from faster delivery and lower cost

Impact across Scorecard

Quality – customers get what they need faster, more reliable, at higher service levels
Value – unnecessary activities/features are being removed, reducing cost for provider
Flexibility – less waste allows adapting more quickly to changing customer-demand/taste
Inventory – pulling to demand reduces inventory while increasing visibility and flow
Productivity – better utilization of labor, machines, and space improves cost and ROA

Program Rollout Specifics

Covers the entire work-stream end-to-end, including support and feeding processes
Takes 2 months for diagnostics and design + 4 months implementation and handover
Transformation is completed after 6 months, but most take 12 months to be fully stable
Three losses are targeted for elimination: Waste (Muda), Variability (Mura), Stress (Muri)
Four techniques are applied to achieve Just-in-Time JIT = Flow + Takt + Pull + Leveling
Spot-applications show first results after a few days (demonstration to achieve buy-in)
The transformation follows Leanmap's 5D process to control implementation and impact
Long-term goal of the program is to make 'lean' a part of the organizational DNA
The program is fully scalable from spot-workshop to value-chain redesign

Key Success Factors

Vision, purpose, strategy have been communicated and understood by key people
Senior management is committed to free-up required resources to execute the program
Cross-functional leadership-team covers all critical core and support functions
Members of the team are ready to spend 50% of their time to execute the program

About Lean Basics

LEAN is the most effective way to satisfy customer-demand at lowest cost
Lean creates FLOW in the order-to-cash cycle across the entire value-chain
FLOW happens when barriers are removed and processes work in concert
WASTE is a product, feature, step, activity that customers are not willing to pay for
Lean PULLS value through the system, while increasing speed and lowering cost
VALUE is a product, feature, feeling or activity that triggers a BUY-decision
PULL means configuring and controlling resources solely by customer DEMAND
All systems have LOSSES, inefficiencies from WASTE, STRAIN, UNEVENESS
Reducing those LOSSES creates a competitive advantage in any business
LEAN TOOLS are tactical and operational, only effective with long-term philosophy
LEAN ENTERPRISE is the end-result when applying Lean across the entire model

Results from the Program

Our clients see the impact in significant reductions in cost, inventory levels, labor content, defect levels, and lead-times. Results from transforming a electronic assembly plant with 2000 FTE:

50% less inventory
50% shorter lead times
75% shorter setup times
15% higher capacity
25% higher operating margin

A traditional batch-&-queue manufacturer can expect 30-50% cost-savings from a combination of lean transformation, flexibilized production, revamped supply-chain, and quality-driven management. Impact in service processes is even higher; 50-80% improvement is common when starting from a traditional model.

Lean Design and Implementation, what we can do for you