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Andy Sheppard ? Art Smalley ? Melissa McCoy* ? ? ? ? ? ? ? Improvement team ? Offer insight and data to guide the change team ? Jim Diggory ? John Ficklin ? Tony Montagno ? Larry Murray ? Dick Robinson ? John Valet ? John Walter ? Dan Wills ? Kimball Winston ? ? ? ? ? ? ? ? ? Leadership support ? Direct and support the change program ? Steve Becker ? Frank Listi ? Ron Ritter ? Mark Wetterau ? Roger Zino ? ? ? ? m ? * McKinsey Manufacturing Practice Manager based in Atlanta office. Participation planned on an as needed basis. LAN010608119718320507 23 CHECKLIST FOR GETTING STARTED Category Requirements ? 2 or 3 fulltime change agents to work as part of the change team ? Parttime improvement team (., scheduling, IT, engineering, maintenance, and quality) to support the team on asneeded basis Resources ? Adequate munication with all vested parties (., management, unions, shop floor, support functions) Communication ? Steering mittee for internal leadership and review purposes ? Identification of any potential roadblocks exist ? Agree on ongoing metrics roadmap ? Strong level of mitment at all levels for a strategic pilot ? Deciding right coordination mechanisms with rest of anization Preparation for full lean transformation (post diagnostic) ? Review meeting scheduled (daily meetings and progress reviews) ? Secure a team room for the length of the diagnostic (close to shop floor) ? Access to phones, fax machine, copy machine, dial out lines for modem Logistics LAN010608119718320507 24 JOINT WORKING PRINCIPLES ? Maintain plete confidentiality ? Focus on holistic system that integrates product and information flow, while keeping careful control of project scope ? Gather data to form a factbased evaluation of opportunity and improvement potential ? Aim to deliver improvements in operational metrics which correspond to significant nearterm financial benefit ? Train and develop local plant staff to act as future change agents for continued roll out of benefits to GSF ? Commit to no layoffs as a direct result of lean process improvements ? Site management mit to ownership and active leadership, demonstrated by willingness to trial implement ideas and learn by doing ? Agree to operate within existing product design and required process steps LAN010608119718320507 25 EXPECTATIONS FOR CHANGE TEAM 1216 weeks 2 weeks Current state assessment – target state design Maintain Stabilize Flow Pull Next area Phase 1 Phase 2 Phase 3 Lead ? McKinsey ? McKinsey/Client Client ? Client Focus ? Data gathering ? Analysis ? High level system design ? Change management ? Implementation ? Detailed system design Training ? Basic lean concepts ? Production system design ? Specific lean tools ? Change management LAN010608119718320507 26 KICK OFF MEETING 8 . 10 . ? Introductions ? Current business situation review – Needs – Opportunities ? McKinsey39。 quality manager Week 2 (6/18 6/22) ? 8:00 . 15 minutes planning meeting ? Map Mamp。 support Maintain Stabilize Flow Pull Next area Phase 1: confirm opportunity Phase 2: capture opportunity for model line Phase 3: Client self reliant to capture opportunity for next areas LAN010608119718320507 15 88% OTIF ? 60% stock not moving in 3 days EXAMPLE ANALYSIS (CONTINUED) Current state material and information flow diagram 4 weeks 1 week 1 weeks stock 693T Rolling OEE = 2040% c/o = 10 min Low levels of equipment performance Poor inventory management Accessories 452T High plexity and variable lead times 8,900 pc. Cleats 197,000 pc Up to 50% nonworking time 14,000 pc. Sleeves OEE ? 70% c/o = 6 min Job lists Job lists SUMMARY 5 times/day 5–20/day Quality of EDI information 50% orders without delivery date 3 weeks stocks 24% orders change within 3 days of delivery ? 65% stock not moving in 3 days COMPANY X Suppliers Customers Information flow Pushed material flow LAN010608119718320507 16 EXAMPLE ANALYSIS (CONTINUED) Future state material and information flow diagram Forecast Daily call off 200300T Rolling Coil c/o = 3m OEE +10% . day Accessories Sleeves day Daily list (T–1 or 2) Suppliers Orders with delivery date percent held ? Levelled to WACT ? Layout T1 Held Job lists (T–2 or 3) Customers Consistent lead times Make to box Make to box Orders fixed at T3 OEE increased by 1020% T2 Mixed pull system Company X SUMMARY Information flow Pulled material flow FIFO flow LAN010608119718320507 17 Total avail able time Nonscheduled time Available scheduled time Setups Breakdowns Run time Reduced speed Small stops Operating time = Start up slowdowns Rework/ scrap Production time Direct measure Indirect measure Availability ratio Performance ratio Quality ratio OEE X X = = = = The overall equipment effectiveness (OEE) chart is a tool that is useful in equipment intensive environments to prioritize the improvements 24 hrs. 4 hrs. 20 hrs. 2 hrs. 2 hrs. 16 hrs. 1 hr. 1 hr. 14 hr. .5 hr. .5 hr. 13 hrs. 54% OEE EXAMPLE ANALYSIS Overall Equipment Effectiveness (OEE) analysis LAN010608119718320507 18 EXAMPLE ANALYSIS (CONTINUED) Evaluation of 6step changeover reduction potential EXAMPLE E = External I = Internal 10 mins E 6. Standardize the new changeover