Studies on Success | CQM
A Hot Slice of Lean - LaRosa’s Lean Event
The attire was relaxed, but the atmosphere within LaRosa’s training center was buzzing with energy. The group, members of the LaRosa’s executive team and associates from the corporate office, bakery and pizzerias was eager to learn.
The Training began with a personalized tour for Pam Gladwell, CQM President. Guided by Brian Cundiff, LaRosa’s Chief Quality Officer, Pam took pictures and gained a clear understanding of the company and its standard operating procedures.
LaRosa's Lean Team Members
Day one’s lessons included a Lean Six Sigma overview and the “mother” of Lean tools, the Value Stream Map. The day closed with more tools (5S and Error Proofing) chosen to meet LaRosa’s specific needs.
On day two the rubber met the road. Teams for the office, bakery and pizzerias got to Value Stream Map their own processes. Each group worked on a process with excessive waste, mapping out the current state and attempting to find solutions for eliminating it. The groups also rotated to put “fresh eyes” on each process. Each team presented their findings at the end of the day along with an action plan assigning specific personnel to each task.
The LaRosa’s team was very successful as they identified One Million Dollars in potential savings and lots of opportunity for cost avoidance.
Grote Walks the Line
A great Lean Manufacturing example lies within a CQM member company, Grote Industries of Madison, IN. Grote has already deployed excellent tools throughout the company, including Automation and an employee suggestion program. They next used Lean tools to suture up a process that was bleeding money.
Focusing on a tail light, one of Grote’s products, the company conducted a Kaizen event in May, 2007. Grote was losing money on the OEM side. They began the week with training on Lean Concepts; learning about set-up time reduction, 5S, and Value Stream Mapping.
They next analyzed a video of the process steps and asked questions to determine the root causes of their problems. All forms of waste were questioned, down to seconds. The group created a Kaizen newspaper with 60 ideas, ranging from simple (just do it) improvement to changes requiring an investment.
They then walked the line, rechecking details and interviewing the maintenance team. They selected six different options for cost reduction, all of which were evaluated by carefully weighing all the variables – capital investment, implementation timeframe and total cost savings per year. The results presented a multitude of benefits, including first year savings over $500,000!
Embracing Six Sigma ILSCO Asked... What are the Critical X’s?
In 2007 and for the previous 24 years, ILSCO Corporation has been ranked one of Cincinnati’s top 100 companies by Deloitte and Cincinnati USA. However, the key to remaining successful is continuous improvement. On the path to continuous improvement, ILSCO chose to embrace Lean Six Sigma methodology.
With the unyielding support of company President and Project Champion Dave FitzGibbon, the group tackled Inventory Efficiency. The project had big goals: (1) Increase inventory turns from 2.9 to 3.4; and (2) Increase on time shipments from 89% to 92%.
Ilsco Black Belts
With guidance from Pam Gladwell, CQM President and Lean Six Sigma Master Black Belt, the team started the project with a Value Stream Map, taking the bold step of mapping the business end to end. The Value Stream Map enabled the team to accurately assess the current state of the business and highlight areas for improvement. The team identified five separate subprojects and team leaders:
- Forecasting- Steve Bruns
- Demand Management- Kevin Jenkins
- Cincinnati Operations- Doug Webster
- Glenmore Operations- Jim Criscillis
- Canadian Operations- Jim Smith
Throughout the project, Black Belt candidates met with Pam to discuss progress and learn new tools. They followed the DMAIC (Define, Measure, Analyze, Implement, and Control) problem solving methodology. The team was introduced to new tools, SIPOC diagrams and a Deliverables Schedule to name a few.
The group also used Brainwriting and creativity tools to generate ideas and focus on suggestions that had the most impact. The team’s mantra during the project was: “What are the critical X’s?” This is a reference to the Six Sigma Formula y= f of x. In layman’s terms: “y” is the desired outcome (i.e.: increase on time shipments). The “x’s” are factors that affect the desired outcome (i.e.: forecasting). If you can control the “x’s”, the “y” will inevitably improve. After months of learning the tools and using the data, the team completed their projects and achieved outstanding results.
They exceeded the goal of increasing inventory turns to 3.4 by achievinginventory turns of 3.7. On time delivery was greatly improved from the previous year, increasing to 91%. The team also reduced safety stock inventory by 22.7%. To avoid backslide; they will rely on Process owners and vigorous process management.
The ILSCO teams celebrated their success at a luncheon on February 8th, 2008. Each Black Belt candidate gave a quick presentation and received a certificate, officially making them a Lean Six Sigma Black Belt. President of ILSCO, Dave FitzGibbon gave an excellent speech and brought home the value of the team’s success. He emphasized that reduced inventory and improved on time delivery were imperative during these unpredictable economic times. The improvements are attracting new customers and allowing the company to flourish.
Want to learn more about how your organization can benefit from exercisese such as these?
E-mail: pamgladwell@goalqpc.com