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
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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
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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!
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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
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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
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Visual management at work Orders are sequenced to cells
Visual management at work Skills Learning Rewarded
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10/22/2012
Visual management at work Continuous Improvement Culture
A day in the life 5S and Flow as Foundation
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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
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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
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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
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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
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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
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