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EMENT IN CUSTOMER REJECT RATE* ? Select team of most highly skilled employees from different functions ? Temporarily backfill positions of team members ? Establish target reject rate level ? Collect all available data for customer rejects ? Establish new collection processes where data is not available ? Analyze data and select 23 most critical specific customer quality issues ? Assign team members and area personnel to subteams for priority issues ? Perform detailed rootcause problem solving (5 whys, fishbones, DOE?s, etc.) around key issues ? Generate potential solutions ? Implement solutions ? Measure to see if issues are resolved… if yes, return to step 3。 support Maintain Stabilize Flow Pull Next area Phase 1: confirm opportunity Phase 2: capture opportunity for model line Phase 3: team of lean experts rolls out to next area Ongoing Team McKinsey EM + 1 McKinsey EM + 1 McKinsey EM + 1 Dedicated client resources Time 8 MODEL AREA FOCUS ACTIVITIES Flow ? Implement performance metrics and visual controls ? Assess workplace design and layout ? Evaluate material flow (finished goods) from pack to staging areas ? Conduct changeover reduction activities ? Develop basic equipment/mold maintenance system ? Conduct product segmentation analysis and detailed demand analysis Pull ? Determine pace of production and pacing mechanism (takt time and conveyance loops, pace operations work) ? Determine levels of controlled inventory and locations (if needed) ? Develop new planning/production control system – Determine if maketoorder or replenishment system – Identify method of creating production schedule – Design capacity analysis tool to assist in resource allocation as demand changes Senior Management Session ? 1day workshop with Client 22 senior management team – Lean production system awareness training – Joint management discussion on results, potential business strategy implications, and rollout plans 9 ALTHOUGH BENEFITS OF LEAN PRODUCTION ARE CLEAR, THE ACTUAL DESIGN AND IMPLEMENTATION OF A LEAN SYSTEM REQUIRES A WELL INTEGRATED COMBINATION OF ?TOPDOWN? SYSTEM CHANGES AND REALTIME CHANGES ON THE FACTORY FLOOR (MODEL LINES) Delivered by production system ? Adoption of worldclass manufacturing methods ? Local cultural change and capability building ? Design and implementation of ?mini?production systems CONCEPTUAL Model line Suppliers Customer Station 1 Station 2 Station 3 Delivered by model lines: Elements of Production System ? Linkage with overall business objectives ? Linkage to customers and suppliers ? Blueprint for model line sequencing ? Reconfiguration of mon support processes ? Capabilities development ? Overall program munication Logistics Quality Systems Organisation roles and responsibilities Delivered by both ? Model line activity will ?pull? solutions from production system workstreams by creating a sense of urgency ? Model ?line? activities provide a use ready to pilot sitewide solutions Performance Management System Source: McKinsey 10 LEAN TRANSFORMATION IS DONE IN WAVES TO PROMOTE EFFECTIVE LEARNING PROCESSES AND PROPER “ROLLOUT” OF MODEL LINES Wave ? Identify quick wins that will immediately impact the bottom line ? Integrate information and material flows from order through distribution for model area ? Stabilize quality for model area ? Complete machine stabilization in model area ? Implement level schedule/pull system beyond pilot area ? Complete initial machine/process stabilization ? Begin implementing more key elements of lean production ? Attain all goals for quality, cost, and time in model area ? Start CI program ? Transfer lean principles into other plants ? Drive and reinforce continuous improvement Timing Objectives Likely initiatives 1. Implement quick hits and begin stabilization 2. Stabilize quality and implement level scheduling and pull system in pilot area 3. Implement level schedule/pull system in remainder of plant 4. Implement more indepth lean processes in model area Continue to stabilize machines and quality processes throughout plant 5. Begin structured rollout to other plants Lean training and best practice rollout 812 weeks 812 weeks 812 weeks 812 weeks 624 Months ? OEE ? Labor productivity/ Kaizen ? Visual Management ? Lean scheduling system ? Source quality improvement ? Training program ? Standardized work ? Crosstraining ? CI ? Same as steps 14 EXAMPLE 11 A LEAN MANUFACTURING APPROACH CAN BE USED TO DESIGN, PILOT, AND ROLL OUT AN OVERALL PRODUCTION SYSTEM THAT INCORPORATES ALL KEY ELEMENTS OF MANUFACTURING EXCELLENCE ? Set cornerstones of lean manufacturing program ? Begin team capability building ? Set clear performance targets ? Create immediate impact ? Initiate transformation of “anchor plant” on a few model lines to create immediate financial benefits and develop show case for customers and employees ? Design key elements of production system – Management systems – Key principles of material flow and information flow – Common industrial standards – Major IT standards ? Launch implementation of production system across plant work ? Replicate line transformation across all lines in anchor plant ? Introduce transformation program in other facilities around the world Diagnostic and blueprint development Production system design Transformation of pilot line Rollout Module I Module II Module III 2~4 weeks 48 weeks Time Objective 624 months* * Heavily dependent on size and plexity