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LEAN
LEAN
MANUFACTURING
MANUFACTURING
Canada Post Puts Its
Stamp on a Lean Transformation

Mohammed Ajmal Sheriff.F
m.Tech-manufacturing engineering.
3/10/2013 1
b.s.abdur rahman university.

Lean
Manufacturing
CALGARY MAIL PROCESSING PLANT

•Built in 1975
•350,000 sq.ft
•430 employees on three shifts daily and weekends
•Processes 425 million pieces of mail annually
•One of two mechanized processing plants in Alberta

“I used to think that we weren’t a manufacturing company; we didn’t produce
anything,”
“but you can lean out mail operations. What we’re looking for is flow; in one door and
out another.”
said Don McLellan, director, mail operations, at the Calgary facility.

3/10/2013 2

Lean
Manufacturing Traditional manufacturing
WITH
Postal operation

CUSTOMER ORDER & CUSTOMER SUPPLIES
RECEIVE PRODUCT MATERIAL/PRODUCT

MANUFACTURING PLANT MAIL PROCESSING PLANT

RAW MATERIAL END CUSTOMER

3/10/2013 3

Lean
Manufacturing
Major problems

• More Takt time
• More Cycle time
• More Conveyor system
• More maintainance
• Back injuries to employees
• Jammed parcels

3/10/2013 4

Lean
Manufacturing
Closer Look :

• Batch and Queue postal operation had many waste
• Like wait time of letters and parcel to be transported and
processed.
• Large batches of mail require excess space, equipment and
handling.
• Moving mail faster doesn’t improve cash flow, but it does reduce
the number of containers, forklifts and conveyors.
• Waste motion.
• Missorted letters of parcels are equivalent to defects and
rework.
• “We look more at flow because we have no control over what
comes in at any point in time.” Flow between processes is
maintained by FIFO (first-in, first-out) lanes., said Carli
Sanderson, manager projects, at Calgary.
3/10/2013 5

Lean
Manufacturing
Four stream:

• Letters
• Parcels
• Express mail
• Publications and advertising mail

“Each value stream has had success with applying lean,” said McLellan.
Here’s a look at how it was done in pubs and ad mail.

3/10/2013 6

Lean
Manufacturing
Sweating the details:

• Value stream
Action required to bring a product from concept to
Launch and from order to delivery.

• Value stream mapping
Previous-state map
Current-state map
Future-state map

• Operator balance chart (OBC)
• Standard Work Document

3/10/2013 7

Lean
Manufacturing
Sample Current-state map:

3/10/2013 8

Lean
Manufacturing
Sample Current-state map:

3/10/2013 9

Lean
Manufacturing
TAKT TIME:

`

Team members observed and timed operators lifting bags, reading destination
tags, opening bags, dumping out the bundles of mail, reading addresses,
tossing bundles of mail into containers, etc. T=24Sec

3/10/2013 10

Lean
Manufacturing
Operator Balance Chart (OBC):

3/10/2013 11

Lean
Manufacturing
Conveyor system:

3/10/2013 12

Lean
Manufacturing
STANDARD WORK DOCUMENT:

3/10/2013 13

Lean
Manufacturing
Lift assist arm :

3/10/2013 14

Lean
Manufacturing
Score for publications and
Advertising Mail cell:

3/10/2013 15

Lean
Manufacturing
RESOLVED PROBLEMS:

• 3.2 million square feet of space freed-up for consolidation,
reducing reliance on leases
• 10 years of consecutive profitability
• Returned dividends to the Canadian government each year, including
$59 million in 2005
• Reduced reliance on material handling equipment, overhead conveyors,
forklifts, etc.
• Dramatically reduced on-floor inventories, reducing lead time, and
improving quality
• Freed-up capacity and an increase in available machine time
• Improved labor relations –no labor disruptions since starting lean (The
company said no one would lost their employment because of lean.)

3/10/2013 16

TRIP Steel

Thank You

3/10/2013 17

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Lean manufacturing

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