Lean at Harvest Updated 1 (20140425)
Lean at Harvest Updated 1 (20140425)
Lean at Harvest Updated 1 (20140425)
1
Apr 2014
1
Review Half Year Lean Progress At Harvest
2
Overview 6 Projects For Lean
Implementation
1. Increase efficiency
• Cost saving
• Lead time reduction
1. One piece flow
2. Increase 1st pass rate
2. Standardized work • Improve quality
3. Improve cash flow
3. Material Inventory reduction
• Lead time reduction
• Cost saving
4. 5S
4. Reduce RM wastage
5. VMB • Cost saving
5. Information flow between Depts.
6. Problem solving • Lead time reduction
6. Continuous improvement mindset
3
Current Production Process VS Model Line
Current Process
Line balance is bad WIP in sewing line WIP Waiting for ironing WIP Waiting for packing
Key issues
1. Too many machinists very difficult to have good line balance
2. In hanger system machinists can’t see each other so no team work
3. Piece rate creates quality issue
4. Sewing line too long creates unnecessary WIP
5. Too many hand off allows for more indirect labour
6. Lead time too long between sewing and packing
4
Current Production Process VS Model Line
Model Line
5
Material Inventory Reduction By Using
Supermarket System
Inventory Inventory
Before Now Target Before Now Target
26d 15d 7d 7d 3d 1d
6
Harvest Is Tracking Daily 5S Results
Yarn Warehouse
7
VMB Is Allowing Information To Flow Between
Departments
Sample room Kanban Planning Kanban
8
Sewing Line Is Problem Solving When
Problem Appears
9
Future Lean Activities Will Provide PB
Continuous
Item Activities
10
Immediate Benefit Proposed By Harvest
Leadtime
FOB Savings
Reduction
Item One year Previously
(USD$) PO Type Current L/T
L/T
CY2013 Total
$16M Long LT fabric
Turnover
(YD, Yardage, 105d 91d
1. Efficiency improve Marle)
+ $600K
15%
2. Reduce 11 QC + $66K Normal LT
84d 70d
fabric
3. Reduce 4 cut pc. ins. + $24K
4. Inventory reduce
+ $30K
15d
Leadtime has already been changed to the
Sub total $720K above
5. Labour wage
- $320K
increase (8%)
Total Estimated
= $400K
Savings
Est. $12M USD in repeat style, equates to
6. PB
2% FOBshare of saving
reduction on all repeat styles
$240K
60%
Based on current benefits, we should change the traffic
light to GREEN
11
Next steps
2014
• Continuously support and monitor Lean at
Harvest, and update result every 3 months
12