Lean at Harvest Updated 1 (20140425)

Download as pptx, pdf, or txt
Download as pptx, pdf, or txt
You are on page 1of 12

Lean at Harvest Updated

1
Apr 2014

Prepared by: Hong Pan

1
Review Half Year Lean Progress At Harvest

FOB and Lead


Time

1. Overview of 6 projects for Lean implementation


2. Future Lean activities
3. Benefit proposed by Harvest
4. Next steps

2
Overview 6 Projects For Lean
Implementation

Implement 6 Projects Result and Benefit

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

Unfold Unfold Unfold Unfold


sucking ironing inspecti fold
fold fold on fold packing

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

Ironing, inspection, packing

U Shape Standardized VMB 3 in 1


work

Changes made Benefits for Model line


1. Team Bonus policy, creates Team work 1. Efficiency improved from 30% to 70%
2. Line balance-Better operator utilisation in 1wk
3. Standardized work- High quality pass 2. No WIP in waiting for ironing and
rate packing
4. Pull system - one hour WIP 3. High morale
5. 3 in 1- Reduced WIP 4. Limited defect
6. VMB – make problems transparent
7. U Shape-creates team work Benefits for all factory
8. No hanger system: Reduce wasted 5. Reduce 15 indirect labours(11 end line
movement inspectors, 4 cutting piece inspectors

5
Material Inventory Reduction By Using
Supermarket System

Finished Fabric Storage Yarn Storage

Inventory Inventory
Before Now Target Before Now Target

26d 15d 7d 7d 3d 1d

6
Harvest Is Tracking Daily 5S Results

FG Warehouse 5S VMB Model Line

Yarn Warehouse

7
VMB Is Allowing Information To Flow Between
Departments
Sample room Kanban Planning Kanban

Merchandising Kanban RM warehouse Kanban

FG Kanban Production floor Kanban

Sewing line Kanban Mechanic Kanban

8
Sewing Line Is Problem Solving When
Problem Appears

Model Line VMB Mechanic VMB

Problem Solving Meeting At Model Line

9
Future Lean Activities Will Provide PB
Continuous

Item Activities

Convert rest of sewing lines to 3 in 1


Production floor
by July 2014

WIP store No WIP store start from August 2014

Finished fabric & Yarn warehouse Reduce inventory to 7d and 1d

Management training Visit PBI in 2014

Lead time reduction From 70 days to 63 days in 2014

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

• Change repeat styles FOB 2% start from May 1

2014
• Continuously support and monitor Lean at
Harvest, and update result every 3 months

12

You might also like