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The Lean Benchmark Report

Significant Level of Involvement Education: Lean Methodology

Best in Class 91%

Average 47%

Laggard 16%

Identification of improvement opportunities

80%

43%

21%

Lines/Work Cell Manufacturing 5S (Sort, Set in order, Shine, Standardize, Sustain)

75% 75%

36%

8%

44%

19%

Kanban

73%

24%

7%

Value Stream Mapping

68%

23%

4%

The Best-in-Class Tackle Lean: Mastering the Basics

Best-in-class companies are also committed to mastering the basics. During this study, we discovered a large gap between the way that best-in-class companies and their poorer performing competitors tackle Lean as shown in Table 2.

Table 2: Best-in-Class Committed to Mastering

the Basics

Kaizen (continuous improvement teams)

67%

33%

13%

Source: AberdeenGroup, March 2006

5S (Sort, Set in Order, Shine, Standardize, Sustain)

5S is a Lean methodology for establishing and maintaining a productive work environ- ment. Sort means getting rid of clutter by identifying and removing all items not used on a regular basis. Set in order means to organize the work area; identify all production items and their storage locations. Standardize is about establishing written standards for order and cleanliness; and sustaining is about maintaining standards through training, empowerment, commitment and discipline.

During the course of this study, we spoke to the president of UPCO, a leading manufac- turer of “downhole” oilfield equipment. Over the past few years, the company has suc- cessfully “Leaned Out” its manufacturing operations; the president attributes much of its initial success to the personal pride that employees gained by transforming their work environment into one that was substantially neater and more professional by using the Lean 5S principles. By making simple improvements such as organizing tools, immedi- ately removing scrap material from the floor, and investing in professional furniture and fixtures, employee morale and their commitment to the Lean philosophy increased sub- stantially. Once these changes were in place, UPCO implemented EasyLean (Infor) in a few months and was able to dramatically decrease customer lead times as it simultane- ously continued to improve its productivity.

Value Stream Mapping (VSM)

Value Stream Mapping is a proven and preferred technique used to evaluate company operations, eliminate waste in its many forms, and substantially streamline business pro- cesses from the customer to the supplier. VSM is a structured process that captures the flow of product, people, tools, resources, and instructions for the purpose of streamlining

All print and electronic rights are the property of AberdeenGroup © 2006. 10 • AberdeenGroup

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