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Lean Annual Meeting: How to Achieve Value Growth in the Digital Age

On January 10, 2020, “Lean Open Day2020 and Lean Enterprise Transformation Alliance Annual Meeting” jointly held by Phoenix Contact China and Dantotsu was officially opened. This event is a joint effort by two companies to understand the path of digitalization and lean transformation, exchange and share best practices with industry colleagues, visit the Phoenix factory site , and explore how enterprises can achieve valuable growth in the digital age.

This event invited several senior lean and digital experts to share and exchange, not only to learn the best practice sharing of lean leading enterprises in aviation, electrical, die-casting and other industries, but also to visit the lean digital factory to experience the lean digital transformation of Phoenix, the world famous leader in electrical engineering. Due to the strong lineup of guests and full of dry goods, the activity was unprecedented hot before the start, and the number of guests was full. Due to the strong lineup of the guests and rich content, the event was unprecedented popular before the start.

Before the event, Jiandang Gu , President of Phoenix Contact China, gave a warm welcome to the guests. He said that Phoenix Contact is at a critical moment of digital transformation, and lean is the cornerstone to support digitalization. With in-depth practice in recent years, Phoenix pays more attention to the power of external experts, and is willing to grow with partners suitable for the future development of the enterprise. He hoped to make full use of this event to fully exchange ideas and learn from experience with the real experts.

Gu , President of Phoenix Contact China

Kui Wang, member of Lean Enterprise Transformation Alliance, introduced that Lean Enterprise Transformation Alliance is a public welfare organization for Chinese enterprises to move towards lean digital transformation. Through the establishment of mutual assistance and sharing platform, it will help more enterprises successfully realize lean and digital transformation.

Kui Wang , member of Lean Enterprise Transformation Alliance

Lei Chen , vice president and general manager of Phoenix Contact China, introduced Phoenix embrace digital transformation, and made a systematic exposition based on the theory and project practice. He around why to promote digitalization, what is the connotation of digitalization, and how to promote digitalization in the logic elaborated Phoenix from strategy to implement depth to promote the digital process. At the same time, combined with the practice of intelligent demonstration plant in China, the successful experience of sub-module project promotion based on the framework of intelligent plant is expounded.

Lei Chen , vice president and general manager of Phoenix Contact China

Kai Yang, general manager of Dantotsu, shared "lean digitalization from the financial perspective – building the cornerstone of lean digitalization". By elaborating on lean digitalization from the financial perspective, he solved many enterprises' doubts about why lean promotion could not generate profits from the operating perspective for many years.

He took badminton as an example to show that many managers only regard lean promotion as a hobby rather than a professional promotio, which makes it more like an activity rather than a strategy. Using the actual cases of enterprises to compare the on-site appearance of the production process with the performance of the financial statements, the value tree linked to operational performance is the result of the management process.

Kai Yang, general manager of Dantotsu

Jiansong Yuan , management expert of Planning and Development Department of AECC South Company, shared "how to play with lean digitalization" - action force brought by the change of thinking ". As a national model worker and a great country craftsman, Mr. Yuan, who has 15 years of lean improvement experience, has always been thinking: "how to make people enjoy promoting lean?" Through his own practical experience, he explored the formula of success: enjoyment = interest + specialty. Enjoyment comes from people's internal self-drive and specialty is the guarantee for success.

With the secret of success, Mr. Yuan inspired the improvement of the staff through the "lighting project", and at the same time, improved the staff's improvement skills by introducing lean professional tools and methods such as "OBEYA ROOM", Strategy Deployment, Moonshine, Kaizen Week, etc. In the mode of edutainment, the potential of the internal staff has been fully aroused, and the enterprise has been given a new look.

Jiansong Yuan , management expert of Planning and Development Department of AECC South Company

Wei Yan , senior manager of global supply chain of Schneider Electric in France and senior expert of Edison, shared "Lean Digital Practice - the growth tool of hidden champion in the industry". Schneider's digital transformation needs to be based on lean and comprehensively utilize advanced technologies such as enhanced workers, advanced robot technology and additive technology (3D printing) to build lean digital factories. With the simplified and standardized toolbox, the basic construction of digital innovation was completed, and the product output of management digital system was gradually realized.

By reflecting on the previous digital practice of fragmentation in many places, a unified digital management platform was gradually established. The company promoted the establishment of digital standards with business and IT. It simplified the whole management process, identifed the short board blind spots in the process, formed internal standardization specifications, and practiced in the global supply chain. The product output of management digital system was gradually realized. It would provide support for more enterprises in digital transformation.

Wei Yan, senior manager of global supply chain of Schneider Electric in France and senior expert of Edison

Huawei Li, from Phoenix Contact Asia Pacific (Nanjing) Co., Ltd., shared "fat 'lean IC Kaizen Kata". In the past two years, Industrial Connector Production Department has explored and formed its own unique IC Kaizen Kata through cooperation with Dantotsu. The first step is to change the language paradigm and form a consensus of lean improvement. The second step is to form Kata: PD+X-matrix +A3 Report +3K Mode + Kaizen Week.

In PK mode, the production department has conducted in-depth exploration and practice in the improvement of flexible production line, man-machine integration and full-automatic production line. The unique principle, 3P Kata, and the production mode of "human flexibility" + " production line flexibility" + "tooling flexibility" suitable for product characteristics were formed.

Huawei Li, from Phoenix Contact Asia Pacific (Nanjing) Co., Ltd.

Guoqin Xi, deputy general manager of Feilong Auto Parts Co., Ltd., shared "the persistence and harvest of Feilong's lean journey in 16 years ". The sales volume of Feilong exceeded 2.8 billion from 262 million in 2005 to 2018. Promoting lean is an important support to achieve this result. Feilong has gradually realized the change from cluster layout to one piece flow. The company introduced TPM and TQM to gradually form a more perfect site management system. It carried out systematic improvement of the whole value stream, established lean institute, and promoted the synchronization of creation and education, and explored the construction of Feilong lean operation system.

Mr. Xi summarized the lean process of Feilong, and shared the practice of Feilong's exploration of intelligent, digital and automatic lean production line. Under the guidance of new technology and new concept, Feilong has realized that talent training is the driving force for the company to keep moving forward. This can help gradually build a lean corporate culture, and create the Feilong lean working style with its own characteristics in Chian. Lean has no best, only better, Feilong lean has been on the way.

Guoqin Xi , deputy general manager of Feilong Auto Parts Co., Ltd.

The lean team of Device Connector Production Department of Phoenix Contact Asia Pacific (Nanjing) Co., Ltd. shared "digital + automation help value stream breakthrough". As a basic and traditional lean tool, VSM analysis can help to identify problems and improvement opportunities. The production mode of Device Connector Production Department is characterized by long manufacturing lead time, unbalanced production in each process, long material transportation distance, etc. Through VSM analysis tool, the team helped the production flow with automation equipment as the main body, the information flow with information system as the main body, and the material flow with AGV as main body to carry out directional improvement. They have made great breakthroughs in manufacturing lead time, WIP inventory, production efficiency, etc.

The lean team of Device Connector Production Department of Phoenix Contact Asia Pacific (Nanjing) Co., Ltd.

Linhai Ouyang, manager of ConMet Machinery Nanjing Factory, shared "intelligent application practice". As a foreign-funded enterprise, ConMet Machinery has defined its own lean intelligent formula: lean intelligence = lean orientation + intelligent technology. Its core concept is people-oriented, lean as the key point, intelligent innovation in the future. To improve the quality, efficiency and cost of the production process through lean improvement in the new factory assisted by automation technology. The application of AGV technology, automatic packaging and corresponding information management system technology makes the enterprise more efficient in order management, production process control and business support. They will explore and improve the unmanned production process in the further.

Linhai Ouyang , manager of ConMet Machinery Nanjing Factory

The team of Industrial Electronic Production Department of Phoenix Contact Asia Pacific (Nanjing) Co., Ltd. shared "the application of lean and digital in product life cycle cost management". With the concept of lean  digitalization from the financial perspective, how to promote the implementation of financial performance? From the perspective of product life cycle cost management, the team introduced Phoenix's cost management Kata. The methods of cost improvement cover three stages: mass production, production preparation and product design. Based on process, equipment, personnel and materials, the team used lean tools and information technology to carry out PDCA closed-loop improvement and achieved competitive product target cost management.

The team of Industrial Electronic Production Department of Phoenix Contact Asia Pacific (Nanjing) Co., Ltd.

Lean Enterprise Transformation Alliance recognized and awarded outstanding alliance members, which had made outstanding achievements in the implementation of lean and informatization. A total of 12 enterprises had been awarded this award. In the future, lean enterprise transformation alliance expected more enterprises to share more practical experience of lean digitalization on the shared platform, and learn the essence and growth momentum from it, so as to work together on the road of lean digitalization transformation and achieve good results.

At the end of the event, guests visited ICC automation workshop, manual production line, and Industrial Electronic Production Department. The staff made a detailed explanation of the role of lean production and digitalization on the site, and made attempts and breakthroughs in many aspects that troubled the enterprise, such as changeover, quality management, staff load reduction, flexible equipment design and so on. Guests visited the production of low-cost intelligent automation equipment, multi-functional electronic information management board, the third generation AGV handling system, optimized voice control and other aspects of management and technical innovation, which brought everyone a memorable lean feast at the beginning of 2020.

The meeting ended in laughter, and the guests spoke highly of the event. Thanks to the leadership of Phoenix and all the guests and staff who have made great efforts for this meeting. Thanks to all the guests who are not afraid of rain and snow to attend this event. Looking forward to more success of Lean Enterprise Transformation Alliance members in the coming year!


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