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ABN 66 032 495 857 +61 (0) 402 731 563 +61 (8) 9457 8642 [email protected] www.lifetime-reliability.com

Proposal for Staged Lean Manufacturing Improvement of Boss Production Process

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ABN 66 032 495 857 +61 (0) 402 731 563 +61 (8) 9457 8642 [email protected] www.lifetime-reliability.com

Phone: Fax: Email: Website:

ABN 66 032 495 857 +61 (0) 402 731 563 +61 (8) 9457 8642 [email protected] www.lifetime-reliability.com

Boss Lean Manufacturing Workshop Proposal Introduction Boss Auto Bodies desire to introduce Lean manufacturing into its production facility over a period of up to two years. Lifetime Reliability Solutions (LRS) have been asked to provide consulting and training services to assist Boss with its Lean transition. Lean manufacturing, as used by Toyota in their production system, is an all-enterprise encompassing philosophy covering the whole supply chain and entire business management system. Boss initially seek to get benefits from Lean without totally changing the business. This proposal provides a plan to bring effective Lean manufacturing solutions into the operation in an orderly fashion selected on the value-gained by the use of a Lean methodology. Lean Introduction Plan The proposed Lean Introduction Plan allows Boss to adopt the most appropriate Lean tools and methods to improve production without restructuring the rest of the business. The initial Plan is developed in Table 1 and shows how it can be achieved by using LRS Lean Consultant resources and/or Boss resources. The Plan is an overview of the phases to be undertaken in adopting the Boss Lean solution. As each phase is performed the necessary steps to undertake become clear and the Plan is then enhanced in detail and resourced accordingly. The appropriate Lean tools and techniques to be used in the Boss production process are not yet known, but they will be identified, selected and applied as the Plan progresses through its phases to its conclusion. Explanation of Introduction Plan Philosophy The Lean Improvement Plan is developed on the presumption that Boss management provide the project management and leadership to become a Lean operation. LRS has the primary purpose to provide consultant services and guidance to assist Boss make the change effectively and successfully. There are two approaches imbedded in the Boss Lean Introduction Plan. One is for LRS to provide full Lean consulting services to Boss for various activities in the Plan. In this case LRS would analyse the Boss production process and provide solutions for Boss to implement. The second option is for LRS to teach appropriate Boss personnel the Lean analysis tools required and allow Boss to do the activities under LRS stewardship and guidance. The second option would be less expensive for Boss but it would take more management time and resources. Boss employees will be greatly concerned with any Lean changes. Boss management need to apply sound Change Management methods throughout the project to win their people over and to sustain their support for the Lean production process changes. The Timeline estimates are indicative. As the Plan progresses the details of each phase are developed with more information. The Timeline is updated as specifics are identified. 2

Phone: Fax: Email: Website:

ABN 66 032 495 857 +61 (0) 402 731 563 +61 (8) 9457 8642 [email protected] www.lifetime-reliability.com

Boss Auto Bodies Lean Manufacturing Introduce Plan No

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2

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Plan Activities Management explanation to the workforce about adopting Lean

Product range review

Data collection from the current production processes

By LRS Consultants

1 day

1 day

Timeline

Start

Explain and teach requirements.

2 days

Training by LRS included in same day. Explain and teach requirements.

Design Future State best value opportunities and select appropriate Lean solutions

1 day

6

Boss management and production supervision develop Lean introduction plan

1 day

7

Management explanation to the workforce of future changes

By Boss

8

Develop and document new Lean business and production processes

9

Write work procedures covering new Lean business and production processes

Training by LRS included in same day.

2 days

5 days 3

Identify and quantify wastes and losses in the existing production processes to provide a baseline to measure Lean improvement and to identify useful production changes and the value they would bring Boss.

1 week

1 week

1 week

Project Management leadership

1 month after start

2 months after start

Project Management leadership

1 week

1 month

Explain and teach requirements. LRS trains Boss for 1 day. Explain and teach requirements.

Explain the company’s desire to adopt Lean, its justification and its impact to Boss employees. Provide opportunity for discussion.

Examine the workshop processes to collect information on their current performance.

1 week

Training by LRS included in same day. Explain and teach requirements.

Comments

Categorise entire product range by production complexity and to identify common processing requirements.

LRS trains Boss for 1 day. Explain and teach requirements.

1 day

5

Requirements if Boss Implement the Plan Project Management leadership

By Boss

Analyse data collected and develop Current State Value Stream Map (VSM)

4

By Boss

Modify the production process in light of the VSM findings and value-added to Boss by making the Lean changes Select the first group of Lean solutions to be introduced. Develop project implementation plan, select resources and create project management structure. Describe VSM findings. Explain how workshop will change and how employees will be involved and benefit from the changes. Provide opportunity for discussion. With the Future State in mind develop and detail the necessary processes in Production and throughout the operation

3 months after start

Write the work procedures and define responsibilities for each production work station and each production

Phone: Fax: Email: Website:

ABN 66 032 495 857 +61 (0) 402 731 563 +61 (8) 9457 8642 [email protected] www.lifetime-reliability.com

Boss Auto Bodies Lean Manufacturing Introduce Plan No

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11 12 13

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15

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Plan Activities

Select and purchase any business process improvement solutions Update Boss Lean procedures to include new technologies and software Conduct management and employee training on new technologies and software Introduce and use new technologies and software Conduct management and employee training on production floor Lean solutions to be used

Develop detailed plan for Lean production floor changes with employees Prepare for Lean production changes and make/purchase necessary workflow structures to use in workshop

By LRS Consultants

By Boss

step from order acceptance to despatch of finished product.

2 day

1 week

All production process changes need to be document with the latest practices and methods

By Vendor

1 month

New technologies and software training is undertaken by the Vendor

By Boss

1 month

1 day per Lean solution per group trained. Allow LRS 5 days. 2 days 2 weeks LRS for 1 day. By Boss 1 month LRS for 1 day.

1 month By Boss 4

4 months after start

New technologies and software needed for the Future State are procured

LRS assistance for 1 day.

LRS for 1 day. 18

Comments

1 month

Introduce Lean production floor changes Review performance of Lean production floor changes

Training by LRS included in same day. Project Management leadership.

Timeline

Done with help of solution Vendor

By Boss 17

Requirements if Boss Implement the Plan

1 month

Project Management leadership Provide people from management and shopfloor for training courses. LRS trains Boss for 5 days. Project Management leadership.

6 months after start 4 months after start

6 months after start

LRS assistance for 1 day. Project Management leadership. LRS assistance for 1 day. Project Management leadership. LRS assistance for 1 day. Project Management leadership.

New technologies and software are put into use in the business New Lean solutions for the Future State that change shopfloor practices are taught to Boss people. LRS will deliver the training over 4 to 6 weeks. This can be to the entire workforce at once or in groups sized to minimise production impacts. Introduction of new Lean solutions for the Future State are planned and organised for minimum production disruption The Future State Map will identify the workflow changes required in the workshop.

8 months after start

Make the production floor Lean changes as planned

10 months

Examine how the production floor Lean changes are performing and recommend improvements (if any are

Phone: Fax: Email: Website:

ABN 66 032 495 857 +61 (0) 402 731 563 +61 (8) 9457 8642 [email protected] www.lifetime-reliability.com

Boss Auto Bodies Lean Manufacturing Introduce Plan No

Plan Activities

By LRS Consultants

By Boss

Requirements if Boss Implement the Plan

LRS for 1 day.

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20

21

Plan and introduce additional Lean production floor changes (if required) Revise production processes and work procedures to the latest practises used for each work station and production step ESTIMATED TOTAL DURATION OF LRS INVOLVEMENT

By Boss 1 month LRS for 1 day. By Boss 1 month LRS for 1 day. 26 days

LRS assistance for 1 day. Project Management leadership. LRS assistance for 1 day. Project Management leadership. LRS assistance for 1 day. 14 days

Table 1 Boss Lean Improvement Plan

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Timeline

Comments

after start

required)

12 months after start

Make the extra production floor Lean changes as planned

15 months after start

Bring process flow diagrams and work procedures documents up-to-date These days are spread across the project timeline to the schedule that best suits Boss requirements

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ABN 66 032 495 857 +61 (0) 402 731 563 +61 (8) 9457 8642 [email protected] www.lifetime-reliability.com

Resourcing the Lean Implementation Boss will be required to appoint a senior manager as project leader for the Lean change and to be the first point of contact for communication between Boss and LRS. Boss get suitable LRS personnel to assist in its Lean production improvement endeavours when they are required. A Capability Statement explaining LRS Lean Consulting services accompanies this proposal. More information on LRS Lean consultant services are available on the website. Consulting Rates The charge-out rate for the project is by schedule-of rates-plus expenses. Expenses are backcharged at-cost plus a 15% fee to cover secretarial, administration and handling. We also consider other payment arrangements, such as profit sharing, where we initially work for lower rates and also receive an agreed proportion of future profits generated from our improvement contributions and consulting efforts. LRS business commercial particulars and details are available on request. Project Approach and Duration The Improvement Plan allows Boss to tackle and resource the Lean change of their production process as they consider it is best for their business. LRS can be used to either 1) directly undertake the work noted in the Plan, or 2) train and coach Boss personnel who will then do the work themselves while LRS oversees the activities. At all times LRS is a resource available to Boss and will assist Boss as requested. The number of estimated days for both implementation scenarios – 1) LRS does all project tasks, and 2) Boss undertake the tasks after training – are noted in the Plan. Due to the uncertainty in the total extent of work required, which will become clear once the Future State Map is designed, the number of days shown for LRS consulting and training services are indicative. Please contact me if you have any questions regarding the proposal. Best regards, Mike Sondalini Senior Consultant

website: www.lifetime-reliability.com email: [email protected] mob/cell: (+61) (0) 402 731 563 fax: (+61 8) 9457 8642

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