Introduction to Lean Projects for Latin

America and Caribbean International's

Dealers.
 Navistar Path Forward
Vision
Count On Us
Mission
Drive to Deliver
PEOPLE WORKING TOGETHER LEAN ENTERPRISE CUSTOMER SATISFACTION

One Navistar Navistar Way Navistar Advantage

‐ One team ‐ Waste elimination ‐ Uptime experts
‐ Functional excellence ‐ Continuous improvement ‐ Trucks designed to stay on
‐ Recognition/celebration ‐ Leaders as teachers the road
‐ Accountable ‐ Process flow perspective ‐ Defect-free trucks
‐ Learning organization ‐ Visual management delivered on the date
‐ Enjoy the journey ‐ Raise your hand promised
‐ Fast dealer service/repair

Values
Respect for People Customer Focus Relentless Pursuit of Speed, Simplicity, Innovation Accountability Communication
Quality in All We Do Agility INNOVATION

2
 Understanding
LEAN
• Create VALUE by eliminating waste.
LEAN

• Every person using LEAN at their DAILY work.

LEAN
Culture

LEAN
• Eliminate waste using LEAN methods and tools.
Perspective

LEAN
• Everyone's commitment with using tools company approved.
Enterprise
 Tools
• Using a process flow perspective for waste elimination
Thinking through “the 8 wastes” in
LEAN process improvement your business process
1. Using more resources – or more costly ones
– than are needed for the task

2. Making or buying items before they are

actually needed

Steps of work in the 3. Minimize the number of steps necessary to

Work input Business process
Work output complete the work

4. Redundant or unnecessary effort

5. Materials or work-in-process that are not yet

generating output or results
Result 6. Work that has errors and requires additional
work or rework

7. Waiting for others to deliver necessary

inputs affecting your process and
Improve Increase Better performance.
efficiency Profit quality
8. Sub utilization of talent present in our team.
 Visual
Management
Visual management Examples of visual management
implemented successfully if
• The status of each improvement activities
and goals are readily visible and posted in Sales War
Room
a relevant area
• Status is readily visible and easy to
understand by anyone viewing the visual Sales Activation: Navistar
management tool, even those not Led, Dealer Led metrics and
tracking
familiar with the metrics

Visual Management should …

• facilitate involvement and learning Operational
Metrics
• Trigger reactions
• Engage all employees in problem-
solving
Visual Management: Daily,
Weekly, Monthly reporting
PDCA Cycle
 Idea: Bring LEAN to service dealers
in LA. Coach: Kathy Ernst
Sponsor: A. Contreras
Champion: Emilio Valdez
Current State Jan/20/15 Future State
-Lean virtually unknown to LA Dealers.
-There are no current projects on going. -LA Dealers are skilled in LEAN and apply it
-We have no responsible internal or external people effectively..
assigned. -Every dealer has LEAN projects contently on going.
-There is not data collected or it is not properly used. -Customer satisfaction constantly raising as a result
-Shops are in big need of these procedures to be of this initiatives. (Metrics are being used).
implemented.

Gap Assessment Execution / Results

-Announcement letter from VP to the dealers in the
-LA Service team members are not killed in the LEAN region. COMPLETE.
practices. -Presentation completed - Last week of January.
-Need to create our own internal projects as a way to
improve our processes and develop skills in the team. COMPLETE
-Training and certification in Spanish to be generated and -Certification released on LMS by 2nd week of
assigned to dealer’s LEAN responsible personnel.
-Establish first projects for the region inside of Navistar February.
and to Dealers. -On site hands on training calendar for dealers
released first week of February.
-LA Service team basic LEAN training completed by
last week of January. Not FINISHED
Color Codes
White: Initiative being created
Green: Meeting Target Timeline
Red: Need assistance, Late to Target Timeline
Blue: Complete

Customer First Respect Elimination of Waste

 7 Pasos de un proyecto LEAN
STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7
Project Grasp The Plan Do Check Act / Adjust Lessons
Theme Situation Learned
•Link to Strategic •Current State Process •Future State Map and •Execute the Plan •Check Results •Finalize Planning •Check
House and FY15 Process Design Implementation
•Current State Gaps •Develop & Test (IT) •Review Metrics •Communication Plan
STRAP (metrics)
•Internal (process) •Define SMART •Detailed Project Plan •Gather VOC and •Standardize (final) •Results
•Problem Statement Targets with Engineered Stakeholder •Sustainment
•External •Standard Work
•Project Scope •Develop Solutions (including Feedback
(benchmark) Instructions (SWI’s) •Metrics
Countermeasures resource detail)
•Process Impacted •Confirm Financial
•Identify Problem or •Training •Impact on FY15
•Proof of Concept / •Train Impact
•Current Situation Opportunity •Visual STRAP
Prototype / Model
•Estimated •Wastes Observed •Sustain Metrics Management •Sustainment Tracking
Opportunity / •Analyze Model Developed and Systems (VMS) (9 months)
•Data Collection / Results Understood
Potential Benefit
Analysis •Layered Assessments •Recognize the Team
•Finalize •Pilot
•Impacted Functional
•Metrics Identified Countermeasures / •Detailed •Lessons Learned
Areas •Budget Change
with Baseline Opportunity / Cost Implementation (project review)
Control
•High Level Budget •Impact Assessment Assessment Timeline •Potential Future
Estimate (matrix of options) •Project Management •Sustainment of Opportunities
•Tie Business Case to
Metrics That Matter •Implement Countermeasures
•Voice of Customer •Team Dynamics
(MTM) Countermeasures
•Update/Revise •Process Learning
Business Case •Root Cause
Determined •Best Practices

•IT Budget ($)* •Formal Project

Closeout
•Pilot Experiment
Timeline

Pre- Post-
Chec CP1 CP2 CP3 Chec
k k
Updated 11/03/2014 *Optional, based on opportunity
Value Stream
Map
 5’S
• Eliminate all unnecessary items
SORT • Keep only the necessary

• Arrange to eliminate waste

STRAIGHTEN • Think of your work flows.

• Clean and tidy

SHINE • Keep well maintained

• Uniform procedures
STANDARIZE • Standard operating procedures

• High priority
SUSTAIN • Support structure
 5’S applied to Navistar
Service team
• Latec Before 5’S • Latec After 5’S

Latec Colombia
 5’S, Latec Lima

• Before • After
 5’S offices.

• Before • After
 Sustainable LEAN Culture:
Leaders are Teachers

Leadership Team • Leadership Team driving LEAN

Teams working on LEAN
initiatives
culture
• Subject matter experts available
to coach teams enabling
process improvements and
waste reduction
• Establishing LEAN lab

Invite a member of the Executive team to review of your success

in waste reduction
 Other tools
Kaisen
Short
timeframe
Stretch goals
Cross
functional
Value stream team
oriented
Greatly
depends of
team KANBAN
participation.

Gemba
5 Why Kanri