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Company History. Founded in 1947 by Mr. Joseph Fleischhacker with an investment of $400. Primary focus was to manufacture fishing lures & tackle. Original manufacturing location was a renovated chicken coop behind the Fleischhacker family home.
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Company History • Founded in 1947 by Mr. Joseph Fleischhacker with an investment of $400. • Primary focus was to manufacture fishing lures & tackle. • Original manufacturing location was a renovated chicken coop behind the Fleischhacker family home. • Approached by Medtronic to develop a small diameter pacing lead coil which led to the move into the medical device industry.
Company Profile • Remains a family owned OEM company. • Headquarters in Chaska, Minnesota, USA. • Manufacturing facility in New Ross, Ireland. • International Research & Development Centre in Galway, Ireland. • Sales Office & Stocking Warehouse in Shanghai, China.
What is C.I. / Lean? • Continuous Improvement IS NOT…. • About turning the company into a sweat shop • Cutting corners to reduce cost • Compromising quality to increase efficiency
What is C.I. / Lean? • Continuous Improvement IS… • All employees applying themselves fully to the task at hand • About striving every day to improve your work • Finding the one best way to carry out a job and standardising it • C.I. requires involvement from everyone in the company • It is about making more with less • Reducing costs • Improving quality • Preventing and eliminating waste • Lean manufacturing provides us with the philosophy and methods to achieve this…
Background to Shingo • Named after Japanese industrial engineer; Dr. Shigeo Shingo • The Prize was established in 1988 to promote awareness of Lean manufacturing concepts and recognise companies that achieve world-class status • Described as the “Nobel Prize for Manufacturing” by Business Week
Shingo - More than just a Prize • World renowned accreditation – would greatly benefit our marketing strategy • External recognition of operational excellence • Provides a road map for endless continuous improvement journey • Highlights our strengths and opportunities for improvement
LRM Shingo Journey Jan 2010: Steering Group June 2010: Shingo Workshop in Covidien Aug 2010: 1st Gap Analysis Audit by The Mfg Ins. Nov 2011: 2nd Gap Analysis Audit by The Mfg Ins. Nov 2011: Submit Results Section Jan 2012: Submit Achievement Report Apr 2012: Began prepping employees for audit May 2012: Official Shingo Audit
Submit Results Section Nov 2011 Dimension 4 – Results: Describe your organizations philosophy towards creating value as it relates to the principles outlined in the Shingo model (2 pages) Provide >3 years data under the following headings: Quality (2 Pages) Cost / Productivity (2 Pages) Delivery (2 Pages) Customer Satisfaction (2 Pages) Morale (2 Pages)
Submit Achievement Report Jan 2012 The A.R. (45 Pages) details how the applying organization has transformed its culture using Shingo principles of Op Ex. Dimension 1 – Cultural Enablers: Describe how your organization drive principle based behaviour in each subsection. Clearly discuss use of tools & systems. Dimension 2 – Continuous Process Improvement: Describe your organizations philosophy towards applying lean principles and concepts. Dimension 3 – Enterprise Alignment: Describe organizations lean culture and clearly discuss examples of tools, systems & principles in each business process.
Areas of clarification (Achievement Report) 8th May Question 45:Explain the goal to reduce inventory and the benefits you expect to receive. Show the aggregated inventory figures broken down into categories over 2011 (by week) i.e. purchased parts, internally manufactured components, work in progress, raw material, finished parts inventory, consignment stock. Explain how the inventory measure is relevant to this business and how it is directly linked to customer satisfaction. How is the inventory level calculated and linked to principles of the model? Clarify how the two inventory measures work together. Question 60:Please demonstrate, through use of data, how you systematically identify and eliminate the causes of scrap on your lines Question 72: Page 37 shows an hourly target vs hourly actual measurement. Please explain how the target is calculated, and for what purpose is it used. Additionally do you pay attention to the target vs actual variance? If so what is the data used for? Also, further explanation and clarification is needed for the line side measure.
Shingo Audit Questions • What wastes have you eliminated / reduced? • How are you adding value? • Is your opinion valued? • How have you improved your work? – Who was involved? • Why have you done this? • Who are your customers? • Flow • What are your KPI’s • How often do you see directors on the factory floor? • Do you like coming to work at Lake Region ?