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Capitalizing on Lean Production Systems to Win New Business
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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 Author

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.

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