1. Lean Introduction Overview
Automotive Tier One
Date 5/31/2013

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What is Lean?
Listing to the right or left?
Cut of meat with no fat?
Non fat foods?
Car running on too much air?
Doing more with less?
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What Lean is not
 Lean is not about eliminating people.
 Lean is not about blaming people
 Lean is not about creating checklists and inspections
 Lean is not about painting lines on the floor
 Lean is not about putting up boards

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What is Lean? (Textbook definition)*
Produce Only
 What the customer wants,
 Only in the quantities they want,
 Only when they want it
 By doing only those things that add value
 Driving continuous improvement at all levels of the organization
4 * Womack & Jones (2003). “Lean thinking”
“All we are doing is looking at the
Time Line – from the moment a
customer gives us an order to the
point we collect cash. And we are
Reducing that Time Line by
removing the non-value added
wastes”
-Taiichi Ohno

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Tools
• Building layout
• Product slotting
• Visual controls
• WMS
• Workplace
organization
• MHE & storage
• Signage
Tools
• Building layout
• Product slotting
• Visual controls
• WMS
• Workplace
organization
• MHE & storage
• Signage
Methods
• Standardized
operating
procedures
• Layered audits
• Small batch
processing
• Drive-by dispatch
• Manpower planning
• Clearly defined
expectations
• Quality wall
Methods
• Standardized
operating
procedures
• Layered audits
• Small batch
processing
• Drive-by dispatch
• Manpower planning
• Clearly defined
expectations
• Quality wall
Culture
• View of associates on the
floor as the company’s
most important asset (not a
cost)
• Flexibility of associates to
perform multiple jobs
• Commitment to continuous
improvement
• Trust, respect, and belief in
commitment throughout the
organization
• Employee ownership,
involvement, and
collaboration (Pride)
• Leader as servant
• Importance of orderliness,
cleanliness, and having
everything in its place
Culture
• View of associates on the
floor as the company’s
most important asset (not a
cost)
• Flexibility of associates to
perform multiple jobs
• Commitment to continuous
improvement
• Trust, respect, and belief in
commitment throughout the
organization
• Employee ownership,
involvement, and
collaboration (Pride)
• Leader as servant
• Importance of orderliness,
cleanliness, and having
everything in its place
Implementation Difficulty
Implementation Difficulty
Tools and Methods AreTools and Methods Are
What You See, but It’sWhat You See, but It’s
Culture That MakesCulture That Makes
It Sustainable.It Sustainable.
Lean ImplementationLean Implementation

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1980’s1950’s
History of Continuous Improvement
Ford Builds his 1st
Car – Model “A”
Ford Builds the first
“moving line”
• Taiichi Ohno develops the
“Toyota Production System” (TPS)
• W. Edwards Deming Plan-Do-
Check-Act
• Question conventional process
Early 1900’s
• Expansion across automotive and
manufacturing
• Motorola initiates Six Sigma Quality
• Total Quality Management

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2006 - 2007 2008 - 2009 2010 2011
Ryder’s Lean Journey (2006-2011)
• Ryder’s Kaizen Challenge is
underway and savings of
millions of dollars are reported
as results of continuous
improvement workshops at
locations across the country.
• Over 150 Ryder Greenbelts are
now trained. The 5 Lean Guiding
Principles are introduced and the
“Lean Team” is formed to pilot
and deploy a Lean Warehousing
model.
• The Lean Supply Chain Solutions
team expands in order to deploy the
Lean Template across 64 DM
locations in 2012-2013. Sites include
“Showcase” facilities useful for
demonstrating Lean benefits to our
internal & external customers.
• Ryder’s inaugural class of
Lean Six Sigma Greenbelts
are trained and first
graduation ceremony is
held in November 2007
RESULTS:
A projects-based culture driving productivity
based on the Lean Guiding Principles

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Goals of Lean
The fundamental goal of lean is to reduce the time and resources it
takes to convert customer orders into high-quality, low-cost
deliverables.
HighestHighest
QualityQuality
LowestLowest
CostCost
ShortestShortest
Lead TimeLead Time

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Lean Culture
It’s people who drive results.It’s people who drive results.
Numbers tell us where we’ve been.Numbers tell us where we’ve been.
People determine where we’ll go.People determine where we’ll go.

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Ryder’s 5 Guiding
Principles

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Ryder’s certified operational processes and performance measurements have a
measurable impact on the performance of the operation. Improve customer satisfaction
and reduce cost through continuous process improvement and error prevention.
People Involvement (PI)
» People at all levels feel they are important team members
» Empowered to make decisions on how their job is performed
» Held accountable for decisions
Continuous Improvement (CI)
» Every aspect of business is challenged to get better
» Good yesterday  improved for acceptable today
Short Lead Time (SLT)
» Reduce the time it takes to complete a task
» Eliminate waste from every process step
Built-In Quality (BIQ)
» Do it right the first time
» Eliminates costly reworks and downstream quality inspections
Standardization (S)
» Document work processes/best practices
» Use standard operating procedures to train new employees
» Act as baseline for continuous improvement
LEAN GUIDING PRINCIPLES
RYDER’S LEAN GUIDING PRINCIPLES
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LEAN :: PEOPLE INVOLVEMENT
» Lean is not a tool or a process: it is our culture
» We encourage everyone to challenge the status quo and drive
continuous improvement
» We empower workers to decide the best way to do their jobs
» Employees are cross-trained
» Employees are rewarded for successes that benefit our customer
Engage the Workforce
Today
Management’s
Responsibility
Future
Everyone’s
Responsibility
Mgmt
Supervisor
Associates
Associates
Supervisor
Mgmt

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Sample A-3
LEAN :: CONTINUOUS IMPROVEMENT
» Challenge every aspect of business to get better
» Use continuous improvement events to remove waste
» Encourage employee suggestions: “thousands of little ideas”
• Identify team
• Analyze the problem
• Describe current state
• Correct wasteful processes
• Define countermeasures
• Standardize work
• Set critical control points
• Develop tracking methods
• Assign tasks
• Display results
• Describe lessons learned
• Offer future recommendations
PLAN
DO
CHECK
ACT

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LEAN :: STANDARDIZATION
SCPM
Lean Signage
Standard Work
Visitors to a lean operation know immediately they are in a work
environment that is different. Standardization leads to:
» A clean and orderly workplace
» Comfortable and accurate daily tasks
» Well-trained employees
» Easily identified “out of standard” conditions
» Measurable improvement
» Safety always comes first

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Up from < 40 cases / hr in Week 1 to > 120 cases / hr as of Week 40
OUTBOUND PRODUCTIVITY
-
25.0
50.0
75.0
100.0
125.0
150.0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
Cases(OB)perHour
300% Improvement
Target with “Voice”140.0
Week
Productivity Metrics
Sample tools to track and increase speed:
LEAN :: SHORT LEAD TIME
Material Flow
Value Stream Mapping
Material Flow
Receiving &
Inspection
Outbound
Staging
Slow Moving
Product
20% Volume
Fast Moving
Product
80% Volume
» Speed the process
» Reduce time and resources
» Reduce invested capital
» Remove buffers and processes that don’t add value

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Value Stream Mapping allows Ryder to become a partner with our Customers, seeing their business from their perspective
and helping them develop solutions to their problems.
Creating Customer Value
Help our Customers understand their problems, issues and opportunities in a new or different way and then show them
solutions which match their needs.
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Using the Value Stream Mapping Tool
VALUE STREAM MAPPING
VSM LEVELS
Level 1: Supply Chain
 High level, includes the entire or
large portion of the Supply Chain
 Output can be used to set
Strategic or High Level Objectives
Level 2: Site
 Value Stream within the four walls
 Detailed enough to ID & prioritize
improvement opportunities
Level 3: Process
 More granular than Level 2
 Yields a more detailed
understanding of the drivers of
cost, quality, & speed in VS
Product Family
Current State Map
Future State Map
Develop
Kaizen Action Plan
How the process currently operates.
Designing a lean flow.
Becomes current
state after
implementation.
Product Family
Current State Map
Future State Map
Develop
Kaizen Action Plan
How the process currently operates.
Designing a lean flow.
Becomes current
state after
implementation.
Product Family
Current State Map
Future State Map
Develop
Kaizen Action Plan
How the process currently operates.
Designing a lean flow.
How the process currently operates.
Designing a lean flow.
Becomes current
state after
implementation.

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LEAN :: BUILT-IN QUALITY
» Mistake-proofing
» In-process controls to prevent and detect problems
» Elimination of rework
» Understanding root causes
» Instant feedback
» Participation by all employees

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Process for Change
 Demonstrate a Reason for Change
 Create a Vision
 Create a Partnership - Mgt./Work Force
 Leadership Involvement
 Create Commitment
 Create Sense of Urgency
 Drive Results through improved processes

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Impediments to Change
 Do not have a vision
 Lack of shared vision
 Defensiveness
 Old ways of thinking
 Culture
 Lack of support structure for change
 Lack of trust
 Lack of leadership
 Lack of self-esteem
 Success

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Managing Factors to Achieve Change
Leadership Knowledge Measures Resources
Focused
Actions
Change+ + + + =
Knowledge Measures Resources
Focused
Actions
Confusion+ + + =
Leadership Measures Resources
Focused
Actions
Anxiety+ + + =
Leadership Knowledge Resources
Focused
Actions
Gradual
Change+ + + =
Leadership Knowledge Measures
Focused
Actions
Frustration+ + + =
Leadership Knowledge Measures Resources
False
Starts+ + + + =

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Takeaways for the location
Sustaining a Lean Culture
The real benefits come from a sustained effort over
years, not weeks or months.
Paramount to sustainability
is to remember that Lean is
a journey –
not a destination.

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Becoming a Lean Culture
Developing a lean culture requires strong top management
commitment and leadership.

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QUESTIONS