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LEAN TRANSFORMATION

Path to World-Class Efficiency

Flow

Create continuous flow along the chain.

Takt

Establish rhythm in sync with demand.

Pull

Trigger resources based on consumption.

Leveling

Level load and smoothen the schedule.

World-Class Efficiency

The Lean Transformation Program (LTP) delivers sustainable gains in quality, delivery, and efficiency. The program simultaneously addresses structure, skills, processes, and operating system to ensure that changes are sustained and further improved. Double-digit gains across the scorecard and a level of operational excellence unseen before create a competitive edge from Lean Operations for any business.

Lean Transformation Program (LTP) Brief

  • 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 month for design and pilot + 6 months for full deployment
  • 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 and features being removed, reducing cost for provider
  • Flexibility – less waste allows adapting more quickly to changing customer-demand and taste
  • Inventory – pulling to demand reduces inventory while increasing visibility and flow
  • Productivity – better utilization of labor, machines, and space improves cost and ROA rate

Program Rollout

  • 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 + 6 months stabilisation to ensure sustainability
  • 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 as a demonstration to achieve buy-in
  • Transformation follows LeanMap’s 5D process to control implementation and impact
  • Making ‘Lean’ daily practice and integral part of the organisational DNA is the key ambition
  • The program is fully scalable from process improvement workshop to full scale 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

Program Impact - Actual Case

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 double-digit% cost-savings from a combination of lean transformation, flexibilized production, revamped supply-chain, and quality-driven management. Impact in service processes is even higher; 30-80% improvement is not uncommon when starting from a traditional model.

Lean Design and Implementation - What we can do for you

  • Plant configuration, cleanroom-design and workstation-layout
  • Design of mixed-model assembly line and manufacturing cells
  • Efficiency and capacity improvement, reconfiguring layout and flow
  • Easing labor shortages through standardization and manning system
  • Rationalize and revamp supply chain, make-buy optimization
  • Supplier benchmarking, selection, qualification, and management
  • Cost-quality balance based on total cost of ownership, over lifecycle
  • Advising on alliances and joint ventures with partners overseas (China)
  • Yield and throughput improvement, defect and cycle time reduction
  • Overall equipment efficiency (OEE) and overall process efficiency (OPE)
  • Advising on maintenance strategies to increase up-time reliability (TPM)
  • Quality management (QM) and assurance (QA) processes and systems