Before and After: A Study of Nomacorc s Lean Journey

10/22/2012 Before and After: A Study of  Nomacorc’s Lean Journey How Nomacorc leaned into a world class facility  Tom Shank Gary Strickland Tom Shan...
Author: Amos McKenzie
3 downloads 2 Views 1MB Size
10/22/2012

Before and After: A Study of  Nomacorc’s Lean Journey How Nomacorc leaned into a world class facility  Tom Shank Gary Strickland

Tom Shank ‰ Supply Chain Manager at Nomacorc, LLC  in Zebulon, NC ‰ Nomacorc is the worldwide leader in the manufacture and  Nomacorc is the worldwide leader in the manufacture and distribution of engineered foam wine bottle closures ‰ 20 years manufacturing experience with a focus on lean  processes and end to end supply chain management ‰ Active APICS participant in chapter and education actvities ‰ APICS CPIM and CSCP certifications ‰ BBA and MBA degrees ‰ Resident of Raleigh, NC

1

10/22/2012

Gary Strickland ‰ Global SIOP and Logistics Manager at Nomacorc, LLC  in Zebulon,  NC ‰ Nomacorc is recognized as the industry leader in operational  excellence and continuous improvement through execution of lean‐ sigma best practices throughout the value chain. ‰ Over 15 years operations and supply chain experience  ‰ BS, Business Administration – East Carolina University ‰ Six Sigma Green Belt Certification ‰ Supply Chain Advisory Board Member – East Carolina University 

Seven Profit Busters “The Original 7 Wastes”

Overproduction

Motion Inventory

Waiting

g Defective Making Products Over

Transportation

Process

2

10/22/2012

“We are very successful, BUT…..” ‰Inconsistent lead‐time – 2 to 16 weeks ‰I ‰Inventory turns low ‐ t t l 9 ‰Overproduction – 35% of warehouse consumed by  eventual obsolete materials ‰Batch Processing ‐ Multiple forms of WIP and  excessive locations ‰Talent waste ‐ Daily and excessive expediting  activities

What Technique ‐ Lean or Six Sigma? You Need BOTH! Six Sigma Deals with the rocks/boulders in your pathway – variations.

Lean Deals with progress of movement through the whole journey (i.e. (i e flow) down the river.

Lean – Six Sigma techniques are integrated and are best used together!

3

10/22/2012

How we started the journey “madness” 1) Ownership and accountability at highest level – “sponsored  and lived by executive management” 2) Provided leadership and direction 3) Education and clear communication at all levels  4) Current state map and future state vision developed (VSM) 5) Bottleneck – biggest burst = Conversion (customization) 6) Kaizens to drive continuous improvement

Clear Vision

4

10/22/2012

Some Lean‐Sigma Tools Used Lean •Kaizen •5S •Kanban •Standard Work •Visual Management •Value Stream Mapping •Process Process Flow Diagram Flow Diagram

Six Sigma •FMEA •Pareto Diagrams •Process Capability •Fishbone Diagram •Gage R&R •DOE

What made our kaizens effective? 1) 2) 3) 4)

Detailed charter – “define success” Dedicated resources allocated – “only job” Cross‐functional and cross‐shifts  Implement improvements during event – Goal is NOT to create 90 day action list

5) Report‐out attended by senior management – Commitment of organization and accountability

5

10/22/2012

Visual management at work Orders are sequenced to cells

Visual management at work Skills Learning Rewarded

6

10/22/2012

Visual management at work Continuous Improvement Culture

A day in the life 5S and Flow as Foundation

7

10/22/2012

Changing Quality Culture

Corrective

Proactive Preventive Action

Corrective Action System Product Auditing

Failure Mode and Effects Analysis

Root Cause Analysis

Process Capability

Static Alarming

Process Auditing Pre-Control

Short Consistent Delivery Demand Driven Schedule

Extrusion

Printing

Treatment

FIFO

• • • • •

Shipping

FIFO

Process Flow In‐process Kanban “Supermarket” Single point scheduling – Customization Process Single point scheduling  Customization Process 100% make‐to‐order environment Eliminated batch processing

8

10/22/2012

How to spend your time Top Management

Middle Management Supervisors

Front Line Associates

Engagement and Empowerment The right people in the right positions Capable, aligned, knowledgeable, and empowered

Chaos

High Performance

No  No Engagement

Frustration

9

10/22/2012

Nomacorc Supply Chain

Performance

Flexibility

Transparency

LeanSigma

SIOP

Nomaport

SCOR Model Plan

Source

Make

Deliver

Return

Results to date ‰ Today, entire site operates on pull methodology: ‰ Customer orders pull all product movements through facility ‰ All manufacturing is governed through flow cells ‰ 5S, GMP, HACCP and Visual Management are integrated as one ‰ Orders sequenced to cells based on customer demand ‰ In process kanbans in place, managed by cell operators   ‰ Continuous improvement culture accelerating

10

10/22/2012

Growth Continues Million Closures 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Key Performance Indicators Safety Incident Rate 

Inventory Turns 25 20

12 9 6 3 0

15 10 5 0 YTD07

YTD12

YTD07

72% Reduction in Incident Rate

Delivery Lead‐time Weeks 8 6 4 2 0

YTD12

Increase of 13 Inventory Turns

Productivity Corks/Labor Hour 13,000  12,000  11,000  10,000 

YTD07

YTD12

75% Reduction in Lead‐time

YTD07

YTD12

13% Increase in Corks per Labor Hour

11

10/22/2012

Operational Sustainability Journey Driving Environmental Sustainability into Business Conduct & Responsibility Continuous Improvement Journey Water

Energy

Packaging

Opportunity:

Opportunity:

Opportunity:

Electrical Energy usage across manufacturing facilities

Rising pressure to reduce water usage in operations

WIP & finished goods packaging fiber reduction

Action:

Action:

Redesigned water baths systems & procedures

Invested in reusable & returnable containers

Emissions

Waste Management

Materials

Transportation

Opportunity:

Opportunity:

Opportunity:

Opportunity:

Tightening controls on air emissions

Increase cradle to cradle instances

Reduce raw material usage in product design

Reduce CO2 usage in product transport

Action: New generation products utilize lower levels of LDPE

Action: Implemented rail transportation as preferred mode of transport

12

Suggest Documents