Capitalizing on lean production systems to win newu business

Capitalizing on Lean Production Systems to Win New Business Creating a Lean and Profitable New Product Portfolio Chris Harris • Rick Harris Capitalizing on Lean Production Systems to Win New Business Creating a Lean and Profitable New Product Portfolio Capitalizing on Lean Production Systems to Win New Business Creating a Lean and Profitable New Product Portfolio Chris Harris • Rick Harris Boca Raton London New York CRC Press is an imprint of the Taylor & Francis Group, an informa business A PRODUCTIVITY PRESS BOOK CRC Press Taylor & Francis Group 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487-2742 © 2014 by Taylor & Francis Group, LLC CRC Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S Government works Printed on acid-free paper Version Date: 20130701 International Standard Book Number-13: 978-1-4665-8633-8 (Paperback) This book contains information obtained from authentic and highly regarded sources Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use The authors and publishers have attempted to trace the copyright holders of all material reproduced in this publication and apologize to copyright holders if permission to publish in this form has not been obtained If any copyright material has not been acknowledged please write and let us know so we may rectify in any future reprint Except as permitted under U.S Copyright Law, no part of this book may be reprinted, reproduced, transmitted, or utilized in any form by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying, microfilming, and recording, or in any information storage or retrieval system, without written permission from the publishers For permission to photocopy or use material electronically from this work, please access www.copyright.com (http://www.copyright.com/) or contact the Copyright Clearance Center, Inc (CCC), 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400 CCC is a not-for-profit organization that provides licenses and registration for a variety of users For organizations that have been granted a photocopy license by the CCC, a separate system of payment has been arranged Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe Library of Congress Cataloging‑in‑Publication Data Harris, Chris, 1976Capitalizing on lean production systems to win new business : creating a lean and profitable new product portfolio / Chris Harris and Rick Harris pages cm Includes bibliographical references and index ISBN 978-1-4665-8633-8 (pbk.) Production planning Materials management Lean manufacturing New products I Harris, Rick, 1953 August 2- II Title TS176.H3684 2014 658.5’03 dc23 Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com and the CRC Press Web site at http://www.crcpress.com 2013024768 Contents Why You Need This Book xi About the Authors xxiii The Value Stream Map Questions to Consider Introduction Value Stream Mapping: The Basis for Systems-Based Thinking What Are the Three Flows, and Why Are They Relevant to New Product Planning? Information Flow Material Flow People Flow How Will the Value Stream Map Provide the Foundation for New Product Planning? A Skeleton Value Stream Map for a Product Not Currently Produced The Supplier Loop The Work-in-Process Loop 10 The Final Assembly Loop 10 Wrapping Up the Skeleton Value Stream Map 13 Why Is the Utilization of the Skeleton Value Stream Map Important to Your Customer? 15 Why Is the Utilization of the Skeleton Value Stream Map Important to You? 15 Conclusion 16 Deliverable to the New Product Acquisition and Launch Portfolio from Chapter 16 The Plan for Every Part 17 Questions to Consider .17 Introduction 17 What Is a Plan for Every Part? 17 The Plan for Every Part 17 Why Is a Plan for Every Part Necessary? 18 PFEP as a Necessity 18 v vi  ◾  Contents What Are the Inventory Levels Going to Be in the Purchased Parts Market? 19 The Maximum Inventory Level 19 High Mix–Low Volume 21 Determining the Purchased Parts Buffer 21 Storing the Components 23 The Expedite Plan 24 Where Will These Components Be Stored? 25 How Are Parts Reordered Normally? 27 Why Is This Important to Your Customer? 30 Why Is This Important for You? 31 Deliverables to the New Product Acquisition and Launch Portfolio from Chapter 31 Process Design and Standard Work 33 Questions to Consider 33 Introduction 33 Where to Begin 33 What Factors Need to Be Considered When Setting Up the Assembly Process? 35 Setting Up the Physical Process 35 Floor Space 36 Flexibility 37 Material Delivery 39 How Does Standardized Work Fit into the Design of the Assembly Process? 40 Standardized Work 40 Two Types of Standardized Work 41 Process-Level Standardized Work 41 Standardized Work and the Production Cell Level 46 Why Is This Important to Your Customer? 52 Why Is This Important to You? 52 Deliverables for the New Product Acquisition and Launch Portfolio from Chapter 53 Scheduling and Material Flow 55 Questions to Consider 55 Introduction 55 What Is the Importance of Linking Material Flow and Scheduling? 56 Scheduling and Material Flow 56 Understanding the Importance of Production Control 57 Scheduling a Facility 58 The Finished Goods Market 58 On-Time Component Delivery 59 Pull Signals 59 Contents  ◾  vii What Is the Importance of a Timed Delivery Route? 60 The Timed Delivery Route 60 Linking the Schedule, the Pull Signal, and the Timed Delivery Route 61 Our Example 61 How Long Does It Take to Get There? 62 How Do We Deliver the Purchased Components? 64 How and Who Will Design the Material Point-of-Use Delivery Rack? 65 How Long Will It Take to Deliver the Purchased Components? 66 Final Considerations 67 Completing the System 69 Recapping the Route 70 Why Is This Important to Your Customer? 70 Why Is This Important to You? 71 Deliverables for the New Product Acquisition and Launch Portfolio from Chapter 71 Planning for Machine Capacity 73 Questions to Consider 73 Introduction 73 If Inventory Is Waste, Why Is It Placed in the System? 74 The Proper Reason and Method of Inventory Handling 74 With Multiple Areas, Machines, and Capital Constraints in a Value Stream, How Can There Only Be One Schedule? 76 Scheduling at One Point in the Value Stream 76 Sizing the Work-in-Process Market 76 Calculating the EPEI 77 Changeover Wheel 78 The Production Pull Board 81 Sizing the WIP Market 81 The Number of Pull Signals and the Production Schedule Board 84 Operation of the Production Schedule Board 86 Why Is This Important to Your Customer? 89 Why Is This Important to You? 90 Conclusion 90 Deliverables for the New Product Acquisition and Launch Portfolio from Chapter 90 Quality and Continuous Improvement 91 Questions to Consider 91 Introduction 91 Why Is Systems-Based Thinking Important? 92 Why Are Quality and Continuous Improvement Intertwined? 94 viii  ◾  Contents Continuous Improvement 94 Production Status Boards 95 Layered Audits 98 The Audit Itself 100 Our Example 101 Conveying This Information to Potential Customers 101 Why Is This Important to Your Customer? 102 Why Is This Important for You? 102 Training Production Associates to Produce the Final Product 103 Questions to Consider 103 Introduction 103 What Infrastructure Is Needed to Have an Effective Training Plan for New Products? 104 The Infrastructure 104 What Is a Training Matrix, and How Is It Important to Winning New Business? 105 The Training Matrix .105 Quadrant One 106 Quadrant Two 108 Quadrant Three 108 Quadrant Four 108 How Do You Develop Newly Hired Employees If They Need to Be Hired to Produce the Product? 110 Newly Hired Employees 110 Our Example 113 A Tour of the Facility .116 Why Is This Information Important to Your Customer? .117 Why Is This Information Important to You? 117 The Time Frame .119 Questions to Consider 119 Introduction 119 What Three Teams Are Needed to Effectively Launch a New Product? 120 The Three Teams 120 Team 1: PFEP and Scheduling Team 120 Team 2: Material Flow Team 121 Team 3: Production Team 122 What Are the Two Phases of Planning to Win New Business? 122 Winning New Business 122 What Does a New Product Launch Plan Look Like? 124 Launching the New Business 124 Production Team Implementation Plan 125 The Materials Team Launch Plan 125 The PFEP Scheduling Team Launch Plan 127 Contents  ◾  ix Bringing It All Together 129 Why Is This Important for Your Customer? 129 Why Is This Information Important to Your Suppliers? 129 Deliverables to the New Product Acquisition and Launch Portfolio from Chapter .129 Your Suppliers and Other Considerations .131 Introduction 131 Your Supply Base 131 Your Core Business 134 Workplace Organization 135 Absentee Rates 136 Future Plans 136 Concluding Thoughts 136 Why Is This Information Good for Your Customer? .137 Why Is This Information Important for You? 137 Deliverables to the New Product Acquisition and Launch Portfolio from Chapter 138 10 New Product Acquisition and Launch Portfolio 139 Questions to Consider 139 Introduction 139 Table of Contents 140 The Value Stream Map 141 The Plan for Every Part 143 Production Plan 146 Material Delivery Plan 149 Work-in-Process Plan .152 Management Practices 156 New Product Acquisition and Launch Portfolio  ◾  149 Area: Orange Building Assembly Process: RH Side Beam Assembly Date STANDARD WORK DOCUMENT 6/25/13 Time (sec) Work Elements Pick up Base ad Place Into Fixture Pick up Side Beam and Assemble RH to Base Manual Machine Safety Quality Check Q Key point K Key Points to Assembly Walk 10 Possible Pinch Point Unclamp Fixture and Remove Part Totals: 15 Seconds Figure 10.11  RH side beam assembly standard work document we produce the product and find better ways to complete certain steps, but the standardized work charts give us a very good base to begin to produce the product As we developed the standardized work for the processes that will be in the production cells, it allowed us to become comfortable with assembly of the product It also allowed us to put times with the various steps and complete the previously described escalation plan of moving people in and out of the production cell based on demand We have found that the cellular production format normally takes up less space than the traditional production assembly line as well as providing for the flexibility to react to demand that we have discussed Finally, the cellular format allows us to address one of the problems that we, along with many other production facilities, have faced in the past That problem is getting the right components to the right place at the right time—also known as material delivery That is what we would like to discuss next Material Delivery Plan Material delivery and scheduling information loops are shown in Figure 10.12 In the following paragraphs, we provide an explanation that we may use when attempting to win new business from a customer It is important to note that the 150  ◾  Capitalizing on Lean Production Systems to Win New Business Weekly Order RMH Monthly Order Production Control and Logistics Daily Release Daily Ship Schedule Daily Shipment Hourly Schedule Molding 9,000 pcs Monthly 450 pcs daily average Final Assembly 2 Days GMH Daily Release CT10 Sec for CO11 Min AVG CT 60 Sec CO Sec Uptime 90% Uptime 100% 10 Seconds 60 Seconds 1.3 Days Days 70 Sec 5.3 Days Figure 10.12  Purchased material and scheduling loops information in the following paragraphs may be completely new to your customer, so you probably need to be ready for many questions To make sure that the final assembly production cell has the purchased components needed to produce the final product, we have a material flow system that links both the material delivery and the scheduling of the facility Because we have been able to link the scheduling of the facility with the material flow in the facility, we have been able to eliminate the traditional problem of being scheduled to make a final product that we did not have the purchased components to complete Utilizing the PFEP, we have developed a purchased parts supermarket that acts as the base of operations for our material flow system This diagram of our facility (Figure 10.13) has the purchased parts supermarket in the bottom lefthand corner The purchased parts will be removed from the purchased parts supermarket and pulled by a tugger with carts pulled behind As you can see in the diagram, we have illustrated how we plan to drive from the purchased parts supermarket to the area where we are planning to place your final assembly production cell This route will run every hour The material delivery operator will leave the purchased parts supermarket every hour with a full cart of components and schedules (work orders) The material delivery driver will drive throughout the facility, delivering the schedule and the components to make those schedules The driver will also pick up empty containers, pull signals, and completed schedule cards When the driver returns New Product Acquisition and Launch Portfolio  ◾  151 Cell Cell Cell Entrance and office area Cell 10 Receiving and Shipping Dock Operations Office Area Cell Cell Cell Cell Cell 11 Cell Stop Cell 14 Copyright @ Harris Lean Systems 2005 Cell 13 Cell 12 Cell Figure 10.13  Plant floor layout to the purchased parts supermarket, he or she places the completed schedules on the scheduling board This gives the driver permission to take out more schedule cards and components Some components are delivered on a replenishment basis because they are used on multiple different finished goods Since your product will be produced by a dedicated final assembly cell, we plan to deliver components to that cell based on consumption, meaning that when the production cell uses components, they will be replenished using a kabana card Figure 10.14 is a diagram that illustrates the process In this system, the production area only knows what it is making now and what it is going to make next This helps to ensure that overproduction or the production of the wrong finished goods product does not happen Finally, when the product is delivered to the production cell, it is delivered from outside the production cell to the fingertips of the production associate The racks are sized to hold the right amount of material so that the material delivery driver can deliver every hour and the production associates not run out of components We have found that we can lose a large percentage of productivity by having the production associates retrieve their own components We have eliminated that in this system by having the material delivery driver take the schedule and the components directly from the purchased parts supermarket and deliver the right components at the right time directly to the fingertips of the production associate without interrupting the production associate’s work 152  ◾  Capitalizing on Lean Production Systems to Win New Business Make Today 8:00–9:00 9:15–10:00 Schedule for Cell 11 10:00–11:00 11:30–12:30 12:30–1:30 Running Next Complete Work Order Work Order Orange Orange 20 pcs 1:30–2:30 Work Order Completed Today 2:30–3:30 Orange 20 pcs 7:00–8:00 (tomorrow) Purchased Parts Market 20 pcs Running Now Final Assy C/T 60Sec Downtime 0% C/O Sec Figure 10.14  Material flow illustration To this point, we have covered the overall flow of your product, the purchased components, their delivery, and the actual production area We would like to discuss the molding or WIP area that we will use to produce your product The reason that we would like to discuss this with you is to show you our plan to ensure we have capacity to produce your product Work-in-Process Plan The section on the WIP plan is where customers can become pretty impressed with the plan that a potential supplier has to produce the product (see Figure 10.15) In this section, we approach how we plan to run the WIP area to ensure that we have capacity to produce the product for the customer Sometimes, potential suppliers will tell the potential customer whatever the customer wants to hear to win the business, and then when reality sets in, the suppliers just not have the capability, system, or capacity to service the customer The section on WIP is in place to show the potential customer that you indeed have the capability, the system, and the capacity to produce the customer’s product In our molding area, to ensure capacity and to develop a plan to produce the new product, we have placed the new product with the projected volume into our run plan We operate our areas that have changeover times by utilizing a New Product Acquisition and Launch Portfolio  ◾  153 Weekly Order RMH Monthly Order Production Control and Logistics Daily Release Daily Shipment Hourly Schedule Molding Daily Ship Schedule 9,000 pcs monthly 450 pcs daily average Final Assembly CT10 Sec for CO11 Min AVG CT 60 Sec CO Sec Uptime 90% Uptime 100% 10 Seconds 60 Seconds Days GMH Daily Release 1.3 Days Days 70 Sec 5.3 Days Figure 10.15  The molding loop methodology of capitalizing on the next-best changeover time We would like to take a few minutes to explain that to you now Here are the parts that we are planning to run on the molding machine planned to run your product (Figure 10.16) We plan to run a total of six part numbers To meet customer demand for all of the six parts, the molding machine has to run 368 minutes per day Understanding that the molding machine has to run 368 minutes per day to meet customer demand, we calculated the amount of time left over during our workday of 480 minutes to change the machine over to the next part Considering that we have a normal downtime average of 10%, we concluded that we can use 71.1 minutes to change over in day and still run 368 minutes, thus meeting customer demand Once we determined how much time we had to change the machine over in day, we developed a changeover wheel to illustrate the best sequence of changeovers Figure 10.17 is a copy of our changeover wheel to illustrate our point You can see here that the wheel is set up by product family The reason is that changeover times within the same product family, for example, from 1-White to 4-White, is a 5-minute changeover However, when the product family is changed to another product family, the changeover is longer For example, changing from 4-White to 4-Orange takes 15 minutes We gain efficiencies by reducing overall changeover times by scheduling the area to run in the most effective sequence as illustrated by the changeover wheel 154  ◾  Capitalizing on Lean Production Systems to Win New Business Total Needed Run Time (Seconds) Total Needed Run Time (Minutes) Daily Usage Cycle Time Piece Per Cycle 1-White 700 10 3500 59 *Round Up 4-White 700 10 3500 59 *Round Up 1-Orange 900 10 4500 75 4-Orange 900 10 4500 75 1- Purple 600 10 3000 50 4-Purple 600 10 3000 50 Minutes 368 Required Figure 10.16  Molding machine parts 1W hi te After determining the best sequence to change over the machine, we have calculated that to run every part, every day, we will have to change over in 65 minutes (Figure 10.18) From our previous calculations, we know that we have 71.1 minutes to change over and still meet customer demand Now, considering that we only want to have one schedule in the value stream, and in this case, that schedule is at the final assembly cell, we have to take the information that we have gathered to this point and develop a system so that the molding machine can schedule itself effectively We utilize a method of holding inventory in the form of a WIP market to allow the molding machine to service all of its customers Figure 10.19 is a diagram of what we are talking about In this case, if there were no WIP market in place, the molding machine would have to produce exactly what each of the other departments wanted exactly when they wanted the material By placing the WIP market Spa Ma ce for ketoOrd er 4-O ran le urp 1-P ge Figure 10.17  Molding changeover wheel ran urp le ge 1-O 4-P e hit 4-W New Product Acquisition and Launch Portfolio  ◾  155 Changeover Time 1-White 20 Minutes 4-White Minutes 4-Orange 15 Minutes 1-Orange Minutes 1- Purple 15 Minutes 4-Purple Minutes 65 Minutes Total Changeover Time Figure 10.18  Changeover times in between the molding area and its customers, it buffers against that demand This means that the WIP market is the customer and is sized based on how often the molding machine can replenish parts, taking into account possible variations in demand and uptime Understanding this philosophy leads us to determine the best way to make sure that the WIP market (customer) always has the product that it needs when it needs it To accomplish this task, you will notice that when the Orange area pulls product from the WIP market, a signal is moved to a production schedule board The production schedule board is set up so that the person running the molding machine can go to the board and obtain the order to run the next component To develop the board, we go back to our changeover wheel concept We take the changeover wheel and flatten out on the production schedule board (Figure 10.20) As you can see across the top of the production schedule board, it mirrors the changeover wheel sequence The trigger points on the board are calculated by determining how often the product needs to run to meet customer demand In our example, the trigger points will be set up at day because the Pr od uc t Pu lle d Orange Molding Machine Purple White Figure 10.19  Work-in-process flow 156  ◾  Capitalizing on Lean Production Systems to Win New Business Now Running 4-W 4-O Trigger Trigger 1-O 1-P 4-P Trigger Trigger Trigger Trigger Figure 10.20  Production schedule board molding machine can run every part every day; therefore, when a part is run, it is necessary to run day’s worth The sequence goes from left to right So, when a production associate goes to the production schedule board, they determine what will be run next by moving from the part they are running now to the right until a part is triggered This ensures that we are changing over as close to the efficient changeover sequence as we can while making sure that the customer (WIP market) is happy Management Practices The final section of the presentation of the New Product Acquisition and Launch Plan deals with management practices (Figure 10.21) There are three components to this section The first is how the facility will use its system to ensure product quality The second is how the facility will hire or train employees to produce the product Finally, the third component is the actual launch plan so that the potential customer knows that there is a plan to launch the business when it is awarded It may be a good idea to cover the first two components while on a tour of the facility The glass wall process, the training method, and the plan should be visible and accessible on the production floor This should provide the potential customer with confidence that these two systems work and will be beneficial to their new product The system that we use for quality in our facility revolves around our daily continuous improvement efforts utilizing the glass wall process as the catalyst to accomplish the task (Figure 10.22) Every morning, the facility has a daily New Product Acquisition and Launch Portfolio  ◾  157 Weekly Order RMH Daily Release Daily Shipment Hourly Schedule Molding GMH Daily Release Daily Ship Schedule 9,000 pcs Monthly 450 pcs daily average Final Assembly Uptime 90% CT 60 Sec CO Sec Uptime 100% 10 Seconds 60 Seconds CT10 Sec for CO11 Min AVG Days Monthly Order Production Control and Logistics 1.3 Days Days 70 Sec 5.3 Days Figure 10.21  Management for the value stream production meeting at the glass wall After the production meeting, both our ongoing improvement efforts in the form of continued Lean enterprise implementation and the daily running of the facility are discussed Then, the management team, including the plant manager, utilizes sacred time to audit a process From 8:30 a.m to 9:30 a.m., there can be no meetings scheduled in our facility This hour a day is solely dedicated to the continuous improvement of the facility During the sacred time, the plant manager and his or her staff audit a process as part of our layered auditing philosophy We have the team member audit each job every shift in the team member’s area We have the group leader audit one job along with the team leader each day We have the area manager, group leader, and the team leader audit one job each week Finally, one time per month, the plant manager and his or her staff audit a job along with the area manager, group leader, and team leader This system of layered audits provides benefits for both our quality levels and continuous improvements We audit for two reasons The first is to verify the process is being done the way that it was designed If we can be sure that the production associates are performing standardized work, we can reasonably assume that the quality level is the same out of their area because the work is completed the same way every time The second reason for the audits is to gather and implement improvement ideas With all levels of management present one time per month, we are able to gather and implement improvement ideas quickly and efficiently MISC Inventory Reduction Cost MISC Action Plans MISC Action Plans Cost Quality Safety Future State Current State Inventory Reduction Uptime Delivery MISC Floor space Opened Leadtime Value Stream Metrics Value Stream MISC Inventory Reduction Cost Floor space Opened Uptime Quality Leadtime Delivery Value Stream Metrics Value Stream Safety Future State Current State MISC Action Plans MISC Action Plans Figure 10.22  The glass wall (Taken from Harris, C and Harris, R (2008) Lean Connections Taylor & Francis, CRC press, Boca Raton, FL Floor space Opened Uptime Quality Leadtime Value Stream Metrics Value Stream MISC Floor space Opened Leadtime Delivery Inventory Reduction Uptime Delivery Value Stream Metrics Value Stream Safety Future State Current State Cost Quality Safety Future State Current State Glass Wall 158  ◾  Capitalizing on Lean Production Systems to Win New Business New Product Acquisition and Launch Portfolio  ◾  159 Should your product need statistical process control out of the molding area, we will provide that information to you We will also add that to our auditing regiment to make sure that it is being completed on a regular basis and being completed correctly We believe that our quality levels are high because of our stringent auditing procedure and our focus on continuous improvement The glass wall process coupled with the sacred time in the facility allows us to spend part of every day just focused on improving We also take time when we hire or train new people to be sure that they are taught the proper method of working within this system THE TRAINING METHOD We have a specific method that we use to train the employees who will produce your product and a regimen for preparing newly hired employees to get up to speed quickly After the new business is awarded, we will hire two employees The first day that those employees attend work, they will be given a normal initial orientation The second day, our regimen begins to prepare them to work on the production floor and to understand our overall production system and methodology Our workday is divided into four periods The first period is from the beginning of the shift to the first break The second period is from the end of the first break to lunch The third period is from lunch to the last break Finally, the fourth period of the day is from the end of the last break to the end of the day We have developed a plan to train newly hired employees in an effective way to prepare them to be an asset to their team and to understand how our production floor operates Our goal at the end of the seventh working day is to release new employees to the production floor as normal team members We plan to hire two new employees to produce this new product They will go through the new hire regiment and should be prepared to being producing product within days Their team leader will be their trainer In our facility, the team leader is the trainer because that is one of the criteria that they had to possess to become a team leader The team leader must be able to every job in their team to time and standardized work For this reason, the team leader helped us create the standardized work and will be a vital part of the improvement of the standardized work We utilize a training matrix to provide the group leader with information on who is qualified to perform certain jobs Figure 10.23 is an example of the training matrix This is an area unrelated to your product, but we wanted to show you how our training matrix works As you can see, there are three teams in this group You can tell because their training levels indicate they are in three teams The circle has a meaning on the chart There are four parts to the circle Each part of the circle is a milestone that the production associate reaches in training Once the circle is completely full, the associate is fully trained on that specific position For your new product, the training matrix is shown in Figure 10.24 This team is utilized to produce the type of product that we are discussing and should be able to produce the product effectively There are two production associates who will be named on their hiring, and they will be trained on the Orange cell first as they will initially be focused on producing the Orange product for your company 160  ◾  Capitalizing on Lean Production Systems to Win New Business Conley Hunt Frank Tesnar Grace Mae Delphia Maxwell Alayna Hannah Audrey May Ruby Dawne Ben Gudgel Shana Law Johanna Church Chris Stanley Figure 10.23  Training matrix board Group 11, Team 5, Team Leader: Gideon Rudrey White Cell Purple Cell To Be Named To Be Named Mr Schenk Mr Hunt Mr Spires Mr Conley Figure 10.24  Team training matrix board Yellow Cell Orange Cell L K St at io n J Jason Spires St at io n I St at io n H Area 11 St at io n G St at io n St at io n St at io n E D St at io n C St at io n B St at io n A St at io n St at io n Employee Address A7 F Group Group Leader: R. Harris Team Leaders: B. Tesnar, J. Michael, R. May New Product Acquisition and Launch Portfolio  ◾  161 Production Team Process Layout All Teams Request For Quote Value Stream Map Materials Team Timed Material Delivery Complete New Product Acquisition Launch Portfolio PFEP Scheduling Team PFEP and Schedule Figure 10.25  Three team roles THE LAUNCH PLAN After the business is awarded, we have a plan to effectively and efficiently launch the new business To accomplish all of the objectives that we have put forth in this proposal, we have a standard method of new product launch that we utilize We have three teams that have specific tasks that they are responsible for implementing These three teams are familiar with this product already because they are also instrumental in putting together this New Product Acquisition and Launch Portfolio Figure 10.25 is a diagram of their role in gathering the information for this proposal The three teams are the production team, the material movement team, and the PFEP scheduling team They drew the value stream map together to begin this process so that they could all see the overall flow of the process Then, they each had specific tasks that they needed to complete The production team had to design a process layout and create standardized work and a staffing plan The material delivery team had to add the new product into the material flow system, including the route, and the size, number, and design of the point-of-use racks The PFEP scheduling team had to develop the PFEP for the new product and determine the best way to schedule while assisting the WIP area in adding the new product to its market and production schedule board We believe having these three teams involved in the development of the New Product Acquisition and Launch Portfolio is important because they are also going to implement the system after the business is awarded Figure 10.26 is a chart illustrating our launch plan The launch plan’s responsibility is assigned to the three teams Each team now has to implement what they had planned in the proposal This makes for a good proposal because each of the three teams understands that whatever the team proposes, it may also have to implement Therefore, we receive well-thought-out proposals that can be accomplished In this plan, the production team has a very specific set of items that the team needs to accomplish along with the time frame during which it needs to be accomplished The materials team has the same responsibility as well as the PFEP scheduling team So, when we are awarded the business, this is our plan of how we would ramp up to launching the business to ensure that is on time 162  ◾  Capitalizing on Lean Production Systems to Win New Business Production Team January February March April May June Finalize Process Design Sourcing Strategy for Equipment Receive Equipment Hire New Employees Floor Implementation Produce First Part Begin Production Begin Training Associates Associates Fully Trained Materials Team Placement of Production Area  Design Point‐of‐Use Racks Acquire Point‐of‐Use Racks Create Pull Signals Install Point‐of‐Use Racks Train Material Delivery Include Stop in Timed Del. Route PFEP Scheduling Team Source Product Determine Best Schedule Determine WIP Market Operation  Implement WIP Market Design Purchased Parts Supermarket Set Min/Max Levels Receive First Components  Begin Normal Receiving Components Figure 10.26  The launch plan CONCLUDING THE PRESENTATION To conclude this presentation, we would like to reiterate that the first step in the process, the value stream map, allowed us to ask the right questions to understand how we could effectively produce your product We then went through with the three teams and designed how we could produce the product Finally, we have a plan to utilize the three teams to launch the new product successfully Are there any questions? Bus iness Mana ge m e nt / S uppl y C h a i n M a n a g e m e n t Capitalizing on Lean Production Systems to Win New Business Creating a Lean and Profitable New Product Portfolio Although there are many organizations that have implemented Lean production systems and become more profitable as a result, there can be a gap between what those organizations currently and how they should plan for and profit from new business Capitalizing on Lean Production Systems to Win New Business: Creating a Lean and Profitable New Product Portfolio explains how to create a Lean product portfolio to fill that gap so you can become more profitable from that new business Providing a fundamental understanding of the Lean enterprise production system, this book can help an organization take its current Lean knowledge and translate that knowledge into a step-by-step methodology to win and launch new business Lean topics covered include: • • • • • • Value Stream Mapping Plan for Every Part Process Design and Standard Work Scheduling and Material Flow Machine Changeover Quality and Continuous Improvement By developing the New Product Acquisition and Launch Portfolio presented in this book, you can dramatically improve your ability to produce the products customers desire and deliver them on time Focusing on the concepts that are critical to the longevity of your Lean enterprise system, this book will help you understand how to deliver a product that meets the quality and delivery standards of your customer It will also help you understand how this new product fits into your Lean enterprise system Detailing how to achieve a successful new product launch through upfront planning, this book provides you with the tools to enhance efficiencies throughout your supply chain K20287 ISBN: 978-1-4665-8633-8 90000 781466 586338 .. .Capitalizing on Lean Production Systems to Win New Business Creating a Lean and Profitable New Product Portfolio Capitalizing on Lean Production Systems to Win New Business Creating a Lean. .. used only for identification and explanation without intent to infringe Library of Congress Cataloging‑in‑Publication Data Harris, Chris, 197 6Capitalizing on lean production systems to win new business. .. ◾  Capitalizing on Lean Production Systems to Win New Business In the past, value stream maps have been utilized to drive Lean implementation in a facility The current-state map was drawn to