Manufacturing Plan

Manufacturing Production System Build Process

2 Year, High-Level Plan

  1. Phase 1: *** Management Engagement, Staffing, Project Selection, & Set-up ***
  2. Educate the Management Team on the System Improvement Process.
  3. Management Commitment. Benefit: Executive Buy-In and Commitment
  4. Firstly, start a Manufacturing Office of Operational Excellence.
  5. Staff up with 3 Black and 2 Green Belts. Start this early because this will take time and is a Critical Success Factor.
  6. Start the build of your Manufacturing System Guiding Principles. This includes goals, and responsibilities designed to create an agile and robust company, if not currently existing.
  7. Project Selection, and Success Metric Agreement.
  8. Subsequently, start the Project Charter Build. This provides much-needed direction and project management guidance.
  9. Manufacturing Plan Final Pre-Work. Benefit: Stage Set, Ownership Established.
  10. Phase 2: *** Major and Strategic Phase ***
  11. SDD – Standardize, Document, and Display.
  12. Select Improvement projects: (Your System is comprised of Value Streams and Overhead functions). Map Value Streams on manufacturing lines, critical business systems, and poor-performing systems. Lean Six Sigma Project Selection by using ROI as the method.
  13. Investigate the usefulness of crucial Lean Six Sigma tools.
  14. Initiate Production Leveling Options.
  15. Rearrange machines to establish production Flow (1 operator, many processes).
  16. Study areas for Flow.
  17. Discover andon solutions. andon means that you stop to fix a defect when detected. Toyota still averages 800 a year. This helps create a learning organization.
  18. Above all, Establish the Metrics that demonstrate System Success.
  19. Start efforts to implement Kanban Pull.
  20. Phase 3: *** Initiate the Strategic Kata Continuous Improvement Effort, Educate Employees, & Select Value Stream Managers ***
  21. Initiate build of Continuous Improvement Program Select Improvement bogey, Toyota uses 6ms.
  22. Educate employees on Waste, or activities a customer would not willingly pay for. Use the Lean Six Sigma acronym DOWNTIMES. Setup an internal web page. *** 106 documented Wastes in Manufacturing ***
  23. Select Value Stream Managers. It’s essential for future improvement that Value Streams have ownership. A Value Stream Manager would have additional time to perform other job functions such as managing other Value Streams or operational responsibility. Initiate Monthly Reporting.
  24. Phase 4: *** Initiate Value Stream Improvement Efforts ***
  25. Initiate Improvement Efforts. Benefit: Generate and Promote Measurable Benefits
  26. Map and Improve the performance of each Value Stream. For example, value Streams (VS) include every process between customer order and customer delivery. VS performance is important, Process performance may not be. VS move your manufacturing business to create a focal point on Value Delivery. A VS gives manufacturers:
    • – Profound Knowledge of Value Stream processes,
    • – Built-in performance metrics,
    • – Value Stream velocity improvement,
    • – Decreased Value Stream cost, and
    • – Increased Value Stream output quality.
  27. Document and Promote the successes of targeting Value delivered and building project inertia.
  28. Initiate an Education and Instruction Program to increase improvement velocity.
  29. Phase 5: *** Validate Milestones, Improve Supply Chain Relationships ***
  30. Therefore an Estimated Progress Milestone: At the end of the first quarter you will have put in place all the parts needed to optimize the implementation of your Production System. 4 Value Streams are Mapped and Improved. The next steps accelerate your march forward.
  31. Supply Chain. Benefit: Bring them closer to meeting your requirements whether lower prices or Just-in-Time
  32. Align your Supply Chain into 6 tiers of partners.
    1. Tier 1: Critical and Just-in-Time,
    2. Tier 2: Critical and Just-in-Time possible,
    3. Tier 3: Critical but no Just-in-Time,
    4. Tier 4: Other suppliers that deliver Just-in-Time,
    5. Tier 5: Other suppliers Just-in-Time possible, and
    6. Tier 6: Other non-critical suppliers.
  33. Explore enhanced relationships with Tier 1.
  34. Include in contracts a constant demand for increased Sigma performance.
  35. Determine which Tier 2 Suppliers could move to Just-in-Time
  36. Toyota uses 2 hours of inventory as their Just-in-Time requirement. Determine your optimal Just-in-Time requirements.
  37. Phase n: *** Continue the path toward Greatness ***
  38. Manufacturing Plan Future Steps Towards Your Production System
  39. Most importantly, start the move towards Lean Production.
  40. (Optional, based on aggressiveness) Hire more Black and Green Belts. This will ramp up the improvement effort through your company.
  41. Select additional critical Value Streams to Map, and so on throughout the whole company. The company now has a focal point on the value-added for customers.

Estimated Progress Milestones:

For example, at the rate of 5 Values Streams Mapped and Improved every 4 weeks you will have:

  • First Quarter: 9 Value Streams
  • Second Quarter: 24 Value Streams
  • Third Quarter: 39 Value Streams
  • Fourth Quarter: 54 Value Streams
  • Second Year: 114 Value Streams (or more if you continue to staff up)

Benefits of your new Production System:

  • Profound Knowledge of your Production System,
  • Operational Excellence (a competitive advantage),
  • Increased Value Stream velocity,
  • Decreased costs,
  • Improved product/service quality and finally
  • Continued Improvement with a quest for Perfection

This is a big effort but unlike other projects, measurable benefits start within the second month. This effort will move your business to constantly change, create an improvement culture, and comes with Performance Metrics. Your manufacturing business is now on its way to excellence.