Capitalizing on Lean Production Systems to Win New Business: Creating a Lean and Profitable New Product Portfolio, 1st Edition (Paperback) book cover

Capitalizing on Lean Production Systems to Win New Business

Creating a Lean and Profitable New Product Portfolio, 1st Edition

By Chris Harris, Rick Harris

Productivity Press

189 pages | 137 B/W Illus.

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Description

Although there are many organizations that have implemented Lean production systems and become more profitable as a result, there can be a gap between what those organizations currently do and how they should plan for and profit from new business. Capitalizing on Lean Production Systems to Win New Business: Creating a Lean and Profitable New Product Portfolio explains how to create a Lean product portfolio to fill that gap so you can become more profitable from that new business.

Providing a fundamental understanding of the Lean enterprise production system, this book can help an organization take its current Lean knowledge and translate that knowledge into a step-by-step methodology to win and launch new business. Lean topics covered include:

  • Value Stream Mapping
  • Plan for Every Part
  • Process Design and Standard Work
  • Scheduling and Material Flow
  • Machine Changeover
  • Quality and Continuous Improvement

By developing the New Product Acquisition and Launch Portfolio presented in this book, you can dramatically improve your ability to produce the products customers desire and deliver them on time. Focusing on the concepts that are critical to the longevity of your Lean enterprise system, this book will help you understand how to deliver a product that meets the quality and delivery standards of your customer. It will also help you understand how this new product fits into your Lean enterprise system.

Detailing how to achieve a successful new product launch through upfront planning, this book provides you with the tools to enhance efficiencies throughout your supply chain.

Table of Contents

The Value Stream Map

Questions to Consider

Introduction

Value Stream Mapping: The Basis for Systems-Based Thinking

What Are the Three Flows, and Why Are They Relevant to New Product Planning?

Information Flow

Material Flow

People Flow

How Will the Value Stream Map Provide the Foundation for New Product Planning?

A Skeleton Value Stream Map for a Product Not Currently Produced

The Supplier Loop

The Work-in-Process Loop

The Final Assembly Loop

Wrapping Up the Skeleton Value Stream Map

Why Is the Utilization of the Skeleton Value Stream Map Important to Your Customer?

Why Is the Utilization of the Skeleton Value Stream Map Important to You?

Conclusion

Deliverable to the New Product Acquisition and Launch Portfolio from Chapter 1

The Plan for Every Part

Questions to Consider

Introduction

What Is a Plan for Every Part?

The Plan for Every Part

Why Is a Plan for Every Part Necessary?

PFEP as a Necessity

What Are the Inventory Levels Going to Be in the Purchased Parts Market?

The Maximum Inventory Level

Determining the Purchased Parts Buffer

Storing the Components

The Expedite Plan

Where Will These Components Be Stored?

How Are Parts Reordered Normally?

Why Is This Important to Your Customer?

Why Is This Important for You?

Deliverables to the New Product Acquisition and Launch Portfolio from Chapter 2

Producing the Final Product

Questions to Consider

Introduction

Where to Begin

What Factors Need to Be Considered When Setting Up the Assembly Process? Setting Up the Physical Process

Floor Space

Flexibility

Material Delivery

How Does Standardized Work Fit into the Design of the Assembly Process?

Standardized Work

Two Types of Standardized Work

Process-Level Standardized Work

Standardized Work and the Production Cell Level

Why Is This Important to Your Customer?

Why Is This Important to You?

Deliverables for the New Product Acquisition and Launch Portfolio from Chapter 3

Scheduling and Material Flow

Questions to Consider

Introduction

What Is the Importance of Linking Material Flow and Scheduling?

Scheduling and Material Flow

Understanding the Importance of Production Control

Scheduling a Facility

The Finished Goods Market

On-Time Component Delivery

Pull Signals

What Is the Importance of a Timed Delivery Route?

The Timed Delivery Route

Linking the Schedule, the Pull Signal, and the Timed Delivery Route

Our Example

How Long Does It Take to Get There?

How Do We Deliver the Purchased Components?

How and Who Will Design the Material Point-of-Use Delivery Rack?

How Long Will It Take to Deliver the Purchased Components?

Final Considerations

Completing the System

Recapping the Route

Why Is This Important to Your Customer?

Why Is This Important to You?

Deliverables for the New Product Acquisition and Launch Portfolio from Chapter 4

Machine Changeover

Questions to Consider

Introduction

If Inventory Is Waste, Why Is It Placed in the System?

The Proper Reason and Method of Inventory Handling

With Multiple Areas, Machines, and Capital Constraints in a Value Stream, How Can There Only Be One Schedule?

Scheduling at One Point in the Value Stream

Sizing the Work-in-Process Market

Calculating the EPEI

Changeover Wheel

The Production Pull Board

Sizing the WIP Market

The Production Schedule Board

Operation of the Production Schedule Board

Why Is This Important to Your Customer?

Why Is This Important to You?

Conclusion

Deliverables for the New Product Acquisition and Launch Portfolio from Chapter 5

Quality and Continuous Improvement

Questions to Consider

Introduction

Why Is Systems-Based Thinking Important?

Why Are Quality and Continuous Improvement Intertwined?

Continuous Improvement

Production Status Boards Layered Audits

Layered Auditing Process

The Audit Itself

Our Example

Conveying This Information to Potential Customers

Why Is This Important to Your Customer?

Why Is This Important for You?

Training the Production Associates to Produce the Final Product

Questions to Consider

Introduction

What Infrastructure Is Needed to Have an Effective Training Plan for New Products?

The Infrastructure

What Is a Training Matrix, and How Is It Important to Winning New Business?

The Training Matrix

Quadrant One

Quadrant Two

Quadrant Three

Quadrant Four

How Do You Develop Newly Hired Employees If They Need to Be Hired to Produce the Product?

Newly Hired Employees

Our Example

A Tour of the Facility

Why Is This Information Important to Your Customer?

Why Is This Information Important to You?

The Time Frame

Questions to Consider

Introduction

What Three Teams Are Needed to Effectively Launch a New Product?

The Three Teams

Team 1: PFEP and Scheduling Team

Team 2: Material Flow Team

Team 3: Production Team

What Are the Two Phases of Planning to Win New Business?

Winning New Business

What Does a New Product Launch Plan Look Like?

Launching the New Business

Production Team Implementation Plan

The Materials Team Launch Plan

The PFEP Scheduling Team Launch Plan

Bringing It All Together

Why Is This Important for Your Customer?

Why Is This Information Important to Your Suppliers?

Deliverables to the New Product Acquisition and Launch Portfolio from Chapter 8

Your Suppliers and Other Considerations

Introduction

Your Supply Base

Your Core Business

Workplace Organization

Absentee Rates

Future Plans

Concluding Thoughts

Why Is This Information Good for Your Customer?

Why Is This Information Important for You?

Deliverables to the New Product Acquisition and Launch Portfolio from Chapter 9

New Product Acquisition and Launch Portfolio

Questions to Consider

Introduction

Table of Contents

The Value Stream Map

The Plan for Every Part

Production Plan

Material Delivery Plan

Work-in-Process Plan

Management Practices

Appendix: Proposal for the Orange Product Prepared for GMH

Industries

About the Authors

Dr. Chris Harris is an associate professor of supply chain management in the University of Indianapolis School of Business. Dr. Harris holds an MBA and a DBA with a major in management from Anderson University in Indiana as well as a master’s of science degree in youth development leadership from Clemson University. Dr. Harris is the author of numerous articles and several books on Lean production, including Lean Supplier Development, Lean Connections—Making Information Flow Efficiently and Effectively, and Developing a Lean Workforce, all published by Productivity Press, and Making Materials Flow, published by the Lean Enterprise Institute, which won the Shingo Research Prize for Excellence in Manufacturing Research in 2005.

Dr. Harris has worked in a number of professional positions, including as a corporate buyer, an account representative at Toyota Tsusho, a production supervisor, and a team member on the assembly line at Toyota Motor Manufacturing Kentucky (TMMK). His research and teaching interests focus on Lean supply chain production systems. Dr. Harris has taught seminars on Lean production principles and assists companies in implementing Lean production systems throughout the world.

Rick Harris has been helping companies become Lean for the past 15 years. He has had great success helping large and small companies, union and nonunion, to implement their own Lean manufacturing system. HLS, Incorporated, has been instrumental in assisting companies worldwide with major financial improvements (a plant in New York $42 million in 4 years, a plant in Indiana $32 million in 3 years). He helps to educate executives, plant managers, and plant staff in the principles of Lean manufacturing. Rick helps with the actual implementation on the shop floor and the education of the workforce. He has pioneered the reverse-flow process to achieve an increase in efficiency of 25 percent.

Rick has extensive experience developing new manufacturing layouts that facilitate one-piece flow, operator flexibility, operator engagement, first time through quality, optimum uptime, and reduced capital investment. Rick has also coauthored two Shingo Prize Award-winning books Creating Continuous Flow and Making Materials Flow, published by James Womack and the Lean Enterprise Institute. Rick has also coauthored three other books: Developing a Lean Workforce, Lean Connections Making Information Flow, and Lean Supplier Development, published by Productivity Press. Rick is one of the featured speakers at the Lean Enterprise Institute’s monthly Lean conference. Rick has been a speaker at the University of Michigan Lean Manufacturing Conference for the past 7 years, the Lean Enterprise Institute Summit for the past 3 years, the European Lean Enterprise Institute Summit, the Maynard Forum, the PERA Conference, the Mississippi State Annual Lean Conference the past 2 years, European AME Conference, the AME Conference in Chicago in 2002, the University of Kentucky Lean Leadership Forum the past 3 years, and the Lean Summit Brazil in 2004.

Subject Categories

BISAC Subject Codes/Headings:
BUS053000
BUSINESS & ECONOMICS / Quality Control
BUS076000
BUSINESS & ECONOMICS / Purchasing & Buying