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Clean and Lean: The Dynamic Duo

Clean manufacturing provides a new perspective on achieving better environmental, energy-efficiency, and safety results. In the past, decision-making was based largely on legal requirements, but today that's changing. Many companies are basing return-on-investment decisions on the added value Clean Manufacturing projects provide as well. Every resource used in the manufacturing process that does not become part of the finished product becomes waste, and removing waste generates expense. Raw materials, water, packaging, air emissions, machinery maintenance, boilers, and cooling towers all produce waste. The goal of Clean Manufacturing is to eliminate waste by incorporating environmental "Best Practices" into the manufacturing process. Reducing or eliminating waste boosts profits and productivity.

Clean Manufacturing:

Energy efficiency,

Waste reduction,

Material selection,

Recycling, and

Worker safety.

With the implementation of a Clean Manufacturing progam, you can:

Control material inputs by replacing or reducing them,

Conserve energy by installing insulation on machines to reduce heat loss and deaden noise,

Reduce or eliminate waste by replacing or upgrading malfunctioning or inefficient equipment, and

Design products that are recyclable or reusable.

Clean and Lean
Small and mid-sized manufacturers (SMMs) produce over half of the country's manufacturing output, and unfortunately, SMMs also produce over half of the environmental impact attributable to manufacturing. Modern automation and new equipment can play a key role in reducing waste and increasing efficiency. Grant funds may be available to help companies with the purchase and financing of new equipment. Clean Manufacturing will improve products and processes, increase productivity, and lessen environmental impact, while providing solutions that are consistent with your company's lean manufacturing goals. ITAC has been helping more and more NYC businesses green their facilities and reduce waste. To learn more about how your firm can get greener and save money, contact Stefanie Feldman at 212-442-2990 or sfeldman@itac.org.

Increasing Productivity with Lean Enterprise Techniques: Steps on the Lean Journey

Lean Manufacturing is not a fad or the latest buzzword. It is a proven philosophy and set of techniques that drives a company to consciously and continuously eliminate waste. Waste, with respect to becoming Lean, means any activity that does not add customer-perceived value to the product. ITAC clients report significant results from integrating Lean techniques in their operations. Firms have reduced lead times by 70% and inventory by 75%, and increased productivity by 30%, product quality by 20% and on-time delivery by 100%.

Steps on the Lean Journey

Lean Enterprise Diagnostic This top-level assessment reveals how your company's current processes compare to world class, Lean Manufacturing practices. It is the first step in determining how and where Lean thinking can be applied to your operation. Sixteen functional areas are evaluated against Lean principles. The result is a comprehensive set of recommendations and an implementation plan for becoming a Lean Enterprise.

Preparing the Team Successful Lean implementation means involving your entire organization, top-management on down. Lean 101 is a hands-on training and simulation program designed to make believers out of the most resolute skeptics of Lean Manufacturing. By the close of the program, participants know what Lean Manufacturing is, why it works, and how to apply Lean principles in their operation.

5S Workplace Organization -- sort, set in order, shine, standardize and sustain -- maintains good housekeeping practices. The objectives are to remove the need to search for material and tooling and create an atmosphere that allows team members to perform as efficiently as possible with little distraction. Once the work environment is organized, then standardized work methods and rules can be applied to keep every operation running smoothly and consistently well.

Visual Controls are simple signals that provide an immediate understanding to team members of what needs to be done. A work place that uses visual controls can reduce the chance for miscommunication among employees and supervisors alike. The key is to keep it simple, standardized, and effective.

Value Stream Mapping is a means of analyzing an existing product flow to determine where waste exists. The process involves tracing the product from customer order to product delivery, including all material movements and information flows. The result is a complete and thorough map of products and information flows, as it currently exists. The next step is to develop a "future-state" map that eliminates waste from the process. Typical results from VSM are reductions in inventories, material handling and lead times.

Set-up Reduction A set-up, or changeover, is the time between the last good piece of the current machine batch of parts and the first good piece of the next. Reducing set-up times (or machine downtime) is a prerequisite to the reduction of batch sizes in order to reduce lead times and become more responsive to customer needs. The Single Minute Exchange of Dies (SMED) technique is a structured approach to set-up reduction. By eliminating some tasks, setting priorities, and organizing the other tasks, SMED can reduce set-up times from hours to minutes.

Cellular Design is the linking of man and machine to produce a product start-to-finish using the most efficient method possible. The goal for developing cellular manufacturing is to physically locate all the required resources to manufacture a product in close proximity to each other - within arm's reach if possible. Only by doing this can a product be manufactured in a batch size of one-or "make one move one" - even if demand for the product fluctuates.

Creating a Kanban/Pull System A "pull" system is a means of controlling the flow of product and allocation of resources by replacing only what has been consumed. It begins with the shipping of an order to a customer which generates an order to the last operation in the plant. When that operator pulls Work-In-Process (WIP) from the prior up-stream operation, a "kanban" (card) signal prompts the operator to replenish the material consumed. This is true for all operations up the line, including the supplier of raw materials. A pull system controls inventory and makes finished goods production based on actual customer demand rather than historical forecasts.

Six Sigma Where Lean Manufacturing improves and speeds the process, Six Sigma perfects it. Six Sigma is gaining tremendous notoriety from companies like GE, Motorola, Allied Signal, and many others. Six Sigma is driven by a full understanding of customer needs, disciplined use of facts, data and statistical analysis, and diligent attention to managing, improving, and reinventing business processes.

A total Lean Manufacturing program can make your company more responsive, more productive, and shave cost from your bottom line. For more information contact Jane Tabachnick at 212-442-2990 or jtabachnick@itac.org or RSVP to attend our next Lean Manufacturing 101 Workshop on June 8, 2006.

Opportunity for Local Manufacturers

Cemusa has been awarded a NYC contract to fabricate and install street furniture, including bus shelters, newsstands, and public restrooms. Cemusa is committed to using New York City vendors for the metal fabrication, construction, electrical and plumbing services, glass and material suppliers, and assembly and installation services. If your firm is interested in bidding on some of this work, contact Leah Archibald at ITAC at larchibald@itac.org or 212-442-2990 to obtain a copy of the Request for Expressions of Interest (RFEI) and a referral to the appropriate contact within Cemusa.

Upcoming Events

SATOP Seminar: Rocket Scientists for Manufacturers
Date: Thursday, June 1, 2006 8:00 am
Location: 110 William Street, 7th Floor NY, NY
Cost: Free! Must RSVP by May 30

SATOP is designed to speed the transfer of US Space Program knowledge and technology to the private sector. If your small business is faced with a technical challenge, SATOP can provide up to 40 hours of free technical assistance, utilizing engineering expertise of NASA and participating Alliance partners.

Space is LIMITED. Registration is required. For more information contact Jane Tabachnick at 212-442-2990 or jtabachnick@itac.org or RSVP to cathyn@satopny.com

Lean Manufacturing 101 Workshop
Date: June 8, 2006, 8:30 am 4:30 pm
Location: ITAC Offices, 253 Broadway, Suite 302, New York, NY
Cost: $95

Would you like to produce faster, better and less expensively with your existing resources? What if, in doing so, you could increase your sales, improve customer satisfaction and increase profitability? Principals and key managers at local manufacturing firms should attend this workshop to learn how Lean Manufacturing techniques help firms produce more with existing resources by eliminating non-value added activities. Workshop simulation exercises help participants experience first hand how Lean techniques increase space utilization, improve quality, reduce cycle time, improve delivery performance, and reduce work-in-process. Application of Lean techniques enables firms to increase profits, improve customer satisfaction and become more competitive.

For more information contact Mei Sit at 212-442-2990 or msit@itac.org

About ITAC

ITAC is a non-profit economic development organization dedicated to creating and retaining jobs for New Yorkers. We provide indepth one-on-one technical assistance for New York City manufacturers and technology firms to help them stay competitive in the marketplace. ITAC's unique combination of business expertise and expert resource network makes us a valuable partner to help NYC companies grow, change and thrive.

ITAC receives significant financial support from the New York State Office of Science, Technology and Academic Research (NYSTAR), New York's high-technology economic development agency, and the National Institute of Standards and Technology (NIST), and Manufacturing Extension Partnership (MEP). ITAC serves as NYSTAR®'s designated Regional Technology Development Center for New York City and one of nearly 350 MEP locations across the country and works directly with regional companies to increase their competitiveness and profitability.

May 2006