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In This Issue:
Executive Perspective from Dave Gleditsch, Pelion Chief Technology Officer “Lean Improvement Begins With Asking the Tough Questions”
Despite the pessimistic cloud that hangs over the industry, I was moved by the passion exhibited by the other executives at the event. They, like me, remain convinced of the potential for U.S. auto manufacturers to compete successfully in the global marketplace, and they are ardent believers in the power of Lean to drive the operational improvements needed to make it happen. There is no shortage of energy or enthusiasm in the industry. What has been lacking -- as is often the case within individual companies -- is a unified and quantified understanding of the issues with a coordinated vision and efforts to address them. As we did at the roundtable, we must begin by asking ourselves some tough questions. To read the full article, which was recently published by IndustryWeek, click here. “Extending into Lean”
Malcolm Wheatley examines how Benchmade Knives, Husqvarna, others leverage existing platforms to cut waste, pull demand, increase capacity. Extending the scope of the enterprise platform is another way of delivering much-needed Lean functionality. Such was the case at Stockholm-based Husqvarna Group, which in 2005 saw difficulty with a lean implementation at its Beatrice, Neb.-based manufacturing facility, where a recently acquired product line—Bluebird garden machinery—is made. The problem: a combination of space constraints and process constraints, exacerbated by a spreadsheet-driven attempt at pull-based scheduling.
"We had no effective means of analyzing the peaks and valleys in our demand," recalls Steve Habrich, materials manager at the Beatrice plant. "Pelion could help us do that analysis and determine the right kanban sizes based on those peaks and valleys." Measurable results came within 90 days of implementing the software, with on-time delivery performance climbing to more than 95 percent. And with optimized material flow, Husqvarna makes better use of factory space, thereby easing the process constraints that dogged the company. To read the full article, please click here. Value Stream Mapping: Beyond Whiteboards Pelion Systems has announced the launch of a new series of workshops titled “Value Stream Mapping: Beyond Whiteboards.”. A part of Pelion's TurboLean™ education initiative, the workshops are designed to help manufacturers take steps toward actively managing their value streams and accelerate progress toward running Lean operations. Using easy-to-learn tools and concepts, students will be empowered to go beyond the typical static methods of Value Stream Mapping and begin building dynamic Value Stream Maps with the purpose of:
The course is conducted in a “teach & do” format where students will learn in class how to create Value Stream Maps of both current and future states considering product flow strategies and customer value as the compelling drivers. Appropriate Lean Manufacturing principles will be used along the way as students work to define the current state, identify wastes and opportunities and discuss how Lean tools can be applied to create a Future State Map with an improvement plan. The $449 price includes a full-day of innovative Value Stream Mapping education as well as a copy of Pelion's EasyVSM Value Stream Mapping tool and a casebook for students to take back to use in their organizations. Pelion plans to kick off the “Value Steam Mapping: Beyond Whiteboards” series with workshops in the Fort Collins , Boulder and Denver , CO , areas on February 20, 21 and 22, respectively. Other events around the country are being planned for later this quarter and year. Visit www.pelionsystems.com for more information or contact Pelion at 1-888-LEAN-FWD to discuss scheduling a workshop for your company. Accelerating the Realization of Lean Benefits The final assembly production line at the plant was meeting the Build to Volume requirements but failed to build to the required schedule and proper product mix, which resulted in increased premium freight, overtime and work-in-process inventory levels. To address these issues, applications from the Pelion Lean Manufacturing Operating System were deployed initially across nine product value streams within the Tier 1 automotive supplier's facility. Pelion also provided software installation, ERP integration, training, and application consulting services.
With key production metrics and reporting, the measured gap between Build to Volume and Build to Mix was drastically reduced, indicating that the plant is building the right mix of products at the right volume and time, while increasing overall production and plant performance levels. The plant manager has stated that collectively Pelion's services and technology helped drive more Lean culture change and benefits within the first six months of the initiative than the plant had been able to generate in the previous six years of its “Lean Journey” combined. Thanks in part to this customer's success, Pelion's Lean Manufacturing Operating System has been named a finalist in the 2007 PACE Awards Information Technology and Services category, which honors game-changing innovations in the design and implementation of information systems solutions that enable companies to improve operational performance. Winners will be announced during the 2007 Society of Automotive Engineers conference in Detroit on April 16. To read the full success story, click here. PELION CONTINUES EXPANDING ITS NETWORK OF PARTNERS During the fourth quarter of 2006, Pelion formalized relationships with two new partners that continue to expand the company's market presence and offer highly complementary software and consulting capabilities. BigMachines, Inc. (www.bigmachines.com) provides web-based configurator, quote, and proposal software and services to help companies streamline their selling processes from customer inquiry-to-order. BigMachines Lean Front-End® (LFE) solution digitizes complex selling processes and captures an organization's tribal knowledge to provide online product selection, configuration, quoting, and ordering capabilities for new products and aftermarket parts. BigMachines LFE provides in-depth sales reporting capabilities and easily integrates to existing ERP, CAD, and CRM systems. EnteGreat (www.entegreat.com) has a singular mission: help manufacturing companies succeed. The consulting firm's strategy of combining the Management of Technology with Transformative Change gives global manufacturing companies the tools and the knowledge they need to bring about solid, substantial, and sustained improvements. PELION DRIVES LEAN INITIATIVE FOR APICS NORTHERN COLORADO CHAPTER Pelion also announced recently that John Szemler, vice president of automotive applications and a senior member of the company's consulting team, has been appointed to the APICS Northern Colorado (NOCO) chapter's leadership team as vice president of the NOCO Lean Initiative. One of Szemler's primary responsibilities is to help drive the chapter's Lean Master Certification Program, which involves a complete package of education and coaching on the implementation of Lean supply chains. With more than 20 years experience in the plant environment as both a manufacturing executive and a consultant helping manufacturers define new process flows that leverage Lean principles, Szemler is uniquely qualified to drive this initiative for APICS NOCO. “We are very excited to have an expert of John's caliber stepping in to the VP of Lean role,” said Doug Klapperich, CEO of the APICS NOCO chapter. “Providing high quality resource management education, professional development and certification is our mission, and there is no more important area for our members right now than Lean.” For more information, visit www.apicsnoco.org. Supply-Chain World-North America Pelion's Dave Gleditsch has been selected to speak at the Supply Chain Council's Supply-Chain World-North America 2007 Conference, happening March 19-21 in Philadelphia . Dave is scheduled to speak at 2 p.m. on March 19 on the topic “Transforming Your Business to Lean: Ten Lessons Learned”. In his presentation, he will discuss his experience helping manufacturers make successful Lean transformations and offer insight on the keys to their success. Great Lakes Manufacturing Forum 2007 Pelion executives will be on hand at the event to share perspective on Lean Manufacturing best practices. About Us Solutions Success Stories
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Complexity in maintaining so many spreadsheets prompted Husqvarna to model production resources around Lean principles, using Pelion Systems software to analyze demand and calculate kanban. The software uses value-stream and process-flow analysis to determine where changes in a facility could improve material flow. Furthermore, using electronic kanban replenishment to signal suppliers would allow the company to pull work through the line at the exact pace dictated by demand.
The applications have provided managers with the visibility to make better proactive decisions by which to run the plant. In controlling all the variables that impact cost, while increasing customer fulfillme