The delivery of real bottom-line results from manufacturing improvements has proven to be much harder than expected for most companies. TQM, Zero-Defect Manufacturing, and Business Process Re-engineering have dropped off the landscape for taking much too long and failing to deliver the promised results. Lean Six Sigma is now experiencing the same fundamental difficulty. Delineating a quantitative approach, Lean Manufacturing: Business Bottom-Line Based shows you how to revitalize Lean Six Sigma by aligning it with your business’ bottom line and thus delivering results that your executives, business leaders, and customers expect.
Written by an expert who has transformed product design and manufacturing at companies ranging from Maytag and Visteon to General Electric, the book demonstrates that an awareness of manufacturing business metrics is absolutely essential for every lean manufacturing practitioner. The author has seen first-hand the limitation of traditional lean manufacturing driven by business bottom lines. He outlines case studies linking world events and manufacturing efficiency and presents lean manufacturing strategies and techniques designed to accelerate responses to current and future events on the floors of the world’s manufacturing facilities.
Typically, advice on lean manufacturing comes in the form of techniques regarding a particular tool or tool-box, yet the factory floor, like everything in the global community, is profoundly driven by business bottom lines. This book presents a systematic approach to improve business bottom lines through identifying and eliminating waste, and adding value and fulfillment by flowing the product at the demand of the customer.
Introduction: Five Stages of Lean Manufacturing
Industrial Dynamics and Bullwhip Effect
Three Toolboxes for Lean Manufacturing
Let’s Play a “Lean” Game: Manufacturing a Gyrocopter
Five Stages of Lean Manufacturing: Business Bottom-Line Based
Put Business Bottom Line First: Transfer Function for Production Cost
Production Transfer Function
Short-Term vs. Long-Term Production Transfer Functions
Short-Term Transfer Function for Production
Transfer Function for Marginal Cost
The Law of Diminishing Returns: Key to Understanding Lean Manufacturing
Transfer Function for Average Fixed Cost
Transfer Function for Average Variable Cost
Transfer Function for Average Total Cost
Transfer Function for Long-Term Cost Analysis
Goal Tree and Success Analysis: From Goal Setting to Successful Goal Setting
Understanding the Voice of Customers: The Essential Elements
Voice of Customers: Relentlessly Customer Focused
Voice-of-Customers Capability: Critical Elements
Voice of Customers’ Role and Responsibilities
Analyzing Voice of Customers: Law of Demand
Maximizing Utility to Customers
Kano Model: Integrate the Elements for Voice of Customers
Balance Production and Demand: Value Stream Mapping
What Are Value Streams?
What Is Value Stream Mapping?
How to Complete Value Stream Mapping
Guidelines for Developing Value Stream Mapping
Kaizen Event Analysis for Value Stream Mapping
Business Bottom-Line Analysis of Value Streams
From Lognormal to Cobb–Douglas Distribution: Lean Production Analysis
Technology: The Production Function
Long-Run and Short-Run Production Functions
Three Stages of Production
Cobb–Douglas Production Function
Quantifying Additional Profit from Productivity Gains
Total Factor Productivity
Business Cycles and Demand Fluctuations: Time-Critical Analysis and Decision Making
Business Cycles and Demand Fluctuations
Regression Analysis: Understanding Customer Demand Statistically
What Is Time Series Analysis?
How Demand Fluctuation and “Exogenous Shocks” Influence the Bottom Line
How To Shockproof Your Company: A Lesson from Frank Lloyd Wright
Business Risk Assessment
Risk Quadrant Chart
Develop a Business Risk Management Plan
Risk Assessment Matrix
Lean Production: Business Bottom-Line Based
Approach for Identifying Productivity Improvements
Quantifying Additional Profit from Productivity Gains
Case Study of a Gyrocopter Manufacturer: Improving Profitability
Implement Cellular Manufacturing
Example of Cellular Manufacturing: Organize Gyrocopter Production Equipment into Cells to Reduce Inventory and Process Time
Example of Gyrocopter Manufacturing: Eliminate Intermediate Spooling Operation
Manage Production and Inventory Costs
Theory of Constraints: “The Drum Is a Bottleneck"
Identifying and Exploring Constraints
The Five Focusing Steps and the Continuous Improvement Goal
The General Application of Theory of Constraints to Operations: Drum–Buffer–Rope Approach
Plant Types for Operations
The Thinking Processes for Implementing Theory of Constraints
Learning as Actively Addressing Constraints
Learning to Negotiate the Meaning of Constraints
Accounting Systems for Lean Manufacturing
Case Study: Marion Gyrocopter Corporation (MGC)
Conclusion about the Case Study
Kanban: Align Manufacturing Flow with Demand Pull
Why Use Kanban?
How Kanban Works
The Rules for Kanban
Steps for Implementing Kanban
Types of Kanban
Kanban Design to Achieve Manufacturing System Objectives
Kanban Card Calculation
Jidoka: Implement Lean Manufacturing with Automation
What Is Jidoka?
Ladder Logic: A Tool to Implement Jidoka
Boolean Functions for Ladder Logic
Implement Jidoka Using Ladder Logic
Additional Functionality for Manufacturing Autonomation
Pull System, One-Piece Flow, and Single Minute Exchange of Die (SMED)
Establish a Pull System
Why Use Pull Systems and One-Piece Flow?
Overcome Barriers: Two Old Beliefs
Single Minute Exchange of Die (SMED)
How to Implement Single Minute Exchange of Die (SMED)
Case Study: Flow Management of an Integrated Circuit Packaging Work-in-Process System
Lean Manufacturing Business Scorecards
What Are Lean Manufacturing Business Scorecards?
How Have Lean Manufacturing Business Scorecards Been Evolved?
Lean Manufacturing Business Scorecard for Planning and Policy Deployment
Lean Manufacturing Business Scorecards for Problem Solving and Continuous Improvement
Building the Business Intelligence Strategy