Time Based Management

LeanSigma® Overview

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TBM Consulting Group, Inc. is the sole licensee of LeanSigma, a service mark of Maytag Corporation.
 LeanSigma® Transformation

CULTURAL TRANSFORMATION

»
»
LEAD-TIME REDUCTION
CONTINUOUS IMPROVEMENT

CONTINUOUS IMPROVEMENT
• Increases customer loyalty and market share
• Sustains and builds competitive advantages
• Achieves growth in sales and earnings
• Improves stakeholder value

BUSINESS
PRODUCT PROCESS /
MANUFACTURING SUPPLY &
DEVELOPMENT Lean production
Design for DISTRIBUTION
System LeanSigma
LeanSigma
Value Chain

SIX SIGMA PROCESS CAPABILITY (SIGMA KAIZEN)

KAIZEN BREAKTHROUGH METHODOLOGY

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 What is LeanSigma®?

A business strategy that:

 Reduces lead time in all processes relating to new product
development, manufacturing and administration

 Improves quality, cost and delivery of the final product to the

customer

 Establishes a competitive advantage that will enable sales and

profitability to grow

 Builds a culture where involvement and mutual respect

encourage continuous improvement

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 Reducing Lead-Time Across Your Value Chain

Operational Lead Time

Order Production Accounts
Suppliers Manufacturing Distribution Customers
Entry Planning Receivable
Admin Admin

Business Process Kaizen Business Process Kaizen

Shopfloor Kaizen

Prod
O-E Supp MFG Dist Cust A/R
Plan
Operational Lead Time

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 Impact of Lead-Time Reduction

Quality & Time

Cost & Time

Delivery & Time

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 Successful Companies

Quoted Annual Annual Annual

Lead Time Productivity Sales Profitability
Company Business Reduction Improvement Growth Growth

Packaging 12 weeks
Lantech 17% 20% 28%
Equipment to 2 weeks

Wire
28 days
Wiremold Management 18% 33% 75%
to 2 days
Systems

Electrical
Products 8 weeks
Hubbell 6% 15% 47%
to 2-4 wks
Lighting

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 Time Based Management

Mercury Marine
Video

SKB © 2007 TBM Consulting Group, Inc. All Rights Reserved.

TBM Consulting Group, Inc. is the sole licensee of LeanSigma, a service mark of Maytag Corporation.
 Exercise

What Did You

See?

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 Value-Add vs. Non-Value-Add

Value-Adding Activities
 Transform materials and
information into products and
services the customer wants

Non-Value-Adding Activities
 Consume resources, but don't
directly contribute to product
or service

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 Wastes in Manufacturing
Up to 90+% of any Process is Wasted Time or Activity
Excessive Excessive Motion Defective Products
Inventories (Walking to Next Task, etc.) (Identifying, Handling, Fixing)

OPERATIONAL LEAD TIME

Unneeded Waiting Overproduction Transportation
Processing Time (Often Results of (Make Parts
Unbalanced Tasks) Here, Take Upstairs
For Assembly)

Wasted Time and Activity

Core Process Value

 Defective products  Processing

 Overproduction  Transportation
 Inventories  Waiting
 Excess motion

Lead time reduction: identify and eliminate waste

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 Layout (distance)
 Long setup times
 Incapable processes
 Poor maintenance practices
 Poor work methods
 Lack of training
 Lack of adherence
 Large batches
SKB
Causes Of Waste
 Supervisory roles
 Irrelevant performance
measures
 Ineffective production
planning/scheduling
 Lack of workplace
organization
 Supplier quality/reliability
 More…
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 Manufacturing Lead Time
1%

Typical Original
99% Lead Time
Company
0.5%
Traditional
Manufacturing 99.5%
Improvement
Minor
10% Improvement

Kaizen Waste Major

Reduction 90% Improvement

Value-Adding Activities Non-Value-Adding Activities

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