Implementing Lean in an ISO 9001 Environment

1. Implementing Lean in an ISO 9001 Environment

2. Agenda • Introduction and overview • Capturing the relationship between Lean and ISO • Applying Lean tools to ISO 9000 • Using ISO 9000 fundamentals during Lean implementation • Conclusion

3. Introduction and Overview

4. Profile of a Traditional Manufacturer • Inventory built to forecast • Inventory used to satisfy customer demand • Excessive work in process (WIP) • Large batch sizes • Focused on a small piece • Cost-cutting focus • Department/work center efficiency measures

5. Customer Requirements CRAFT TRADITIONAL •Mass production/Automation • Assembly lines/Divided labor •High volumes/High Inventories • Cost cutting focus/Efficiency •Custom-made, one at a time • Highly skilled craftsperson • Non-standardized work • Non-interchangeable parts Time 2000 1700’s 1800’s 1900’s Manufacturing History

6. Manufacturing Today Global competition is driving Customers to seek and expect: • Speed • Quality And • Flexibility At the • Lowest Prices

7. Another Approach? Customer Requirements CRAFT TRADITIONAL •Mass production/Automation • Assembly lines/Divided labor •High volumes/High Inventories • Cost cutting focus/Efficiency •Custom-made, one at a time • Highly skilled craftsperson • Non-standardized work • Non-interchangeable parts Time 1700’s 1800’s 1900’s 2000 Manufacturing History Lean Manufacturing

8. What is Lean Manufacturing? • concept by TPS; terminology by Womack • an umbrella for good business practices • a strategy for decreasing the time between order placement AND delivery of goods or services

9. APICS Definition • A philosophy of production that emphasizes the minimization of the amount of all the resources (including time) used in the various activities of the enterprise. It involves identifying and eliminating non-value-added activities in design, production, supply chain, and dealing with customers.

10. Georgia Tech Definition • A manufacturing philosophy which shortens the time between customer order and shipment by eliminating waste.

11. The Traditionalist’s View “Results have been mixed . . . and sometimes conflicting!” • “We reduced lead times, but had to increase inventory!” • “We improved quality, but costs increased!”

12. Lean Thinking Lean Thinking begins with the SYSTEM “A group of interacting, interrelated, or interdependent elements forming a complex whole.” American Heritage Dictionary, 3rd Edition “Where’s the bottleneck in my company?”

13. What’s Stopping Industry? Waste!!!

14. Waste Defined • Does NOT add value • Does NOT result in conformance to customer specs • Customer would NOT pay for it!

15. Value Added • Transform materials to product • Meets customer expectations • Customer would pay for it!

16. Non-Value Added • Does not add value • Is not necessary • Should be eliminated, simplified, reduced, or integrated

17. VALUE ADDED Drilling Assembling Parts Welding Cutting Machining Painting Traveling Storing Moving Conveying Deciding Waiting Transporting Reworking Inspecting Set - ups Paperwork Studying Waste NON-VALUE ADDED NON-VALUE ADDED BUT ESSENTIAL

18. Product Leadtime Traditional Focus 95% 5% Lean Focus Waste in Your Plant Non-Value Adding activities Value Adding activities

19. Introduction and Overview • Lean • A systematic approach to identifying andeliminating waste (non-value added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection. • ISO 9000 Quality Systems • Specifies requirements for a quality management system that can be used by an organization to enhance customer satisfaction by meeting customer and applicable regulatory requirements. (ISO 9001:2000)

20. Capturing the Relationship

21. Capturing the Relationship

22. Capturing the Relationship Discussion Are there conflicts between Lean and ISO?

23. Capturing the Relationship Similarities Between Lean and ISO • Address processes • Require resources • Involve cross-functional teams • Expand across the value stream • Identify improvement opportunities

24. Capturing the Relationship (Cont’d) Similarities Between Lean and ISO • Serve as a mechanism for continuous improvement • Have measurable objectives • Impact cost, quality, delivery • Other?

25. Applying Lean Tools to ISO 9000

26. Applying Lean Tools to ISO 9000 Have you ever seen ISO documentation that looks like...

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28. Applying Lean Tools to ISO 9000 Step 1: Understand ISO requirements • Generic, baseline series • Widely applicable • Define the basics

29. Applying Lean Tools to ISO 9000 Step 2: Determine if ISO processes are value added or non-value added.

30. Applying Lean Tools to ISO 9000 • Value Added • Any activity that increases the market form or function of the product or service. (These are things the customer is willing to pay for.) • Non-Value Added • Any activity that does not add market form or function or is not necessary. (These activities should be eliminated, simplified, reduced or integrated.)

31. Applying Lean Tools to ISO 9000 Waste in an ISO system

32. Applying Lean Tools to ISO 9000 Waste in an ISO system (cont’d)

33. Lean Factory One Piece Flow Cellular Takt Time Pull/Kanban POUS Setup Reduction Quality @ Source Teams Batch Reduction Applying Lean Tools to ISO 9000 Step 3: Use Lean tools to eliminate waste. Standardized Work Workplace Organization Visual Plant Layout

34. Applying Lean Tools to ISO 9000 Step 3: Use Lean tools to eliminate waste (cont’d). Value Stream Mapping • Map by element or value stream • Identify current state of information and product flows, inventories, lead times, processing times, available time, participants • Develop a future state plan

35. Applying Lean Tools to ISO 9000 Step 3: Use Lean tools to eliminate waste (cont’d). 5S • Sort Necessary vs. unnecessary • Set Organize • Shine Clean it up! • Standardize Apply to all areas • Sustain Make it a habit

36. Applying Lean Tools to ISO 9000 Step 3: Use Lean tools to eliminate waste (cont’d). Quick Changeover (SUR) • Document revisions • Corrective actions Continuous Flow • Contract review • Design

37. Using ISO 9000 Fundamentals During Lean Implementation

38. Using ISO 9000 Fundamentals During Lean Implementation Segments vs. System Lean is often defined as an activity rather than a system.

39. Using ISO 9000 Fundamentals During Lean Implementation The Lean Challenge • Are improvements identified? • Are improvements implemented? • Are improvements really improvements? • Are improvements maintained over time? • Are improvements spread throughout the organization? • Shift to shift • Department to department

40. Using ISO 9000 Fundamentals During Lean Implementation The Lean Challenge An effective ISO system can provide the foundation for sustained Lean success.

41. The Process ModelQuality Management System CONTINUAL IMPROVEMENT Management Responsibility C u s t o m e r S a t i s f a c t i o n C u s t o m e r R e q u i r e m e n t s Resource Management Measurement, Analysis, Improvement Product Realization Input Output Product

42. Conclusion Capture the Relationship By integrating Lean and ISO activities, the activities support the same goals. Best Practices Cost Reduction Quality Improvement Quick Delivery continuous Improvement World Class

43. Let’s Review Product Lead Time Administrative Total Quality Product Development Metrics Operations Supply Chain Inventory Management A holistic approach to eliminating waste in the entire system

44. Cut Waste to Get Lean • Understand WHAT and WHERE waste exists • Flowchart production • Measure each process • Identify non-value added activities • Create a PLAN to eliminate waste • IMPLEMENT plan to eliminate waste • MEASURE and review results, then REPEAT

45. To Learn More about Lean • Call Georgia Tech for a free consultation (in-state) • Ask us for an on-site Executive Briefing • Have a Lean Overview presented in your plant • Call us at 404-894-6100, or contact your local GT office Learn, Plan, Implement, Succeed!

46. How Georgia Tech Can Help • Lean Manufacturing Executive Briefing • Lean Manufacturing Courses • On-Site Coaching Services • Assisting your suppliers

47. Conclusion Thank you for participating in Implementing Lean in an ISO 9000 Environment Discussion