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2. A brief summary of what
Lean has done for us in
the past 8 years…….
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3. 2003 and our upcoming
challenges...
Throughput
was flat
Price reduction demands of 5% annual
Inventory turns  10% (4.5 turns )
WIP ( inventory )  36%
Profit margin  3%
Sales  9%

4. Where we started
Knowledge
Desire
Skill

5. Knowledge
Reading Material
The
Goal ( Goldratt )
Lean Thinking ( Womack & Jones )

6. Skill
Hired Our Lean Consultant
Lead
our Kaizens
Created a team atmosphere
Start learning by doing

7. Desire
Get Everyone Involved




Reward programs
Reader board
Newsletters
Weekly meetings

8. 5S
A Visual Work Place
Before
After

9. 5S
A Visual Work Place
Before
After

10. 5S
A Visual Work Place
•Virtually all the tools
were un necessary
•Visual
•Cleaned easily
•All lathes have the
same standardized
bench
After

11. 5S
A Visual Work Place
Before
After

12. 5S
A Visual Work Place
How we Sustain
•Monthly internal audit
•Monthly meetings with managers
•Weekly meetings with 5S team
members
•10 minute clean up period at the end
of every shift
•Project Boards for ideas and status

13. SMED
Single Minute Exchange of Dies
•Improve Capacity
•Better Machine Utilization
•Reduce Complexity of Setups
•Improve throughput

14. SMED
Where to start
•Identify internal and external setups
•Convert the internal to external
•Improve all aspects of the setup
operation to abolish set up

15. SMED
The Old Way
Jaws that required assembly and
measurement for each set up

16. SMED
The New Way
Plug and Play

17. SMED
Simplify Set Ups
•Color coded washers
for torque
requirements
•Poka-Yoke to
prevent misloading
•1/4 turn clamping
•Stations remain full
at tear down

18. SMED
Simplify Set Ups
•Standing height
•Standard carts
•Less motion to
install
•Color Coded

19. SMED
Simplify Set Ups
•Color Coded flags
•Standard carts
•Prepped for
Machinist

20. SMED
Results So Far…..
•Set Up times  90%
•Quality is at 99.75%
•Spindle utilization time is at 85%

21. Balancing Work
•Jobs were processed differently every
time
•Quality varied by the person
•Large lot sizes that took days to process
•Cycle times varied
•Confusion as to the process requirements

22. Balancing Work
•One person does
the job
•Takes an entire
shift to move parts
onto next seq
•Quality suffers
•Poor visability

23. Balancing Work
•Determine our Takt Time
•Balance work to achieve Takt Time
•Standardized instruction
Takt =
Available Time
Customer Demand

24. Balancing Work
•Cycle time is  70%
•Throughput is  90%

25. Balancing Work
•Achieve 1pc flow
•Visable stage of
deburring
•A completed part
every 3 minutes
•Errors are caught in
process
•Eliminates “confusion”

26. Where we are today……
•Sales
112%
•Employee count
34%
•Sales per employee
60%
•Inventory turns
71%
•WIP
20%
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28. MacKay Capabilities
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