Six Keys to Lean Implementation

The Keys to Lean Implementation

Practical Application of the “Just in Time” Strategy
& some other valuable Lean tools.

Brief Prologue by Bill Gaw

Enrique Mora and I have been business associates and friends for many years. Helping business leaders in their pursuit of profitable growth has been and is his life long ambition.

To this end, he now writes, lectures, and consults on topics that are important to business leaders... topics that help them and their companies reach their full growth and profit potentials.

This new e-book is Enrique's response to requests for a "how to" team road-map for effective lean implementation. Unlike most book authors who write only about what companies "need to do to get lean," Enrique focuses on the "how to" of successful lean implementation.

To gain maximum benefit from Enrique's writing, one must be willing to "go the distance." While his English is excellent, his writing style has a Spanish influence to it. But stay the course and you'll be rewarded two-fold.

Introduction:

The hardest part in the training of an airplane pilot is… “the landing!”. Well, same thing here with a Lean Implementer or Lean Champion…

The hardest part in the implementation of Kaizen and Lean Manufacturing is to bring the knowledge, information, and culture, to land on the floor of the plant…
Where It Belongs! This E-book has been written with that purpose in mind. It includes my experiences of more than 47 years in the Industry, including of course what I just learned in my last Kaizen Event a few weeks ago. True: after you experience the Kaizen Power, you will want to talk with more and more people so you keep learning.
I sincerely hope you will find this Friendly and Simple. Share it with your associates and don’t hesitate in asking for my help or answers. Are you ready? Let us get into it!

Enrique Mora

EnriqueMora@TPMonLine.com

Carlsbad, CA

Dare to Change!

The traditional "shop-style" manufacturing initiative, so typical in America has been wonderful. We can see today many thousands of successful Companies that were born in a small kitchen, a sewing room, a back yard, or a garage. Their humble beginnings don't have anything to do with their current and future importance in the world's economy.

Some have made it big time, but unfortunately that has happened with only a very small percentage of them. Most others are struggling to make the ends meet and barely can put together their payroll or cover the minimal expenses. Many more have already disappeared or are in that painful process.

The Lean Manufacturing strategies have meant a great difference in the results. In this manual we will concentrate in one of these, that requires discipline and dedication, does not represent enormous investment and can increase the productivity of these manufacturers at a level that many had never dreamed of.

We will discuss and analyze here the Lean Strategies that will bring your operation as close as possible to the ideal:

One-Piece-Flow (OPF).

This is something really simple and very valuable, the changes and culture need to be assimilated and the results can be seen in just a few days. We will use in this strategy, a combination of Lean Manufacturing tools.

OPF and some other acronyms used in this manual have been concentrated in the last page, (“Appendix” in your left margin index), so you can check them out anytime, or even better, print that page and have it handy when you are working in your manual.

In this manual we are taking you step by step to discover the wonders of OPF and what is the reasoning behind it. We will use some clear Real-World examples or analogies to make it easier to digest and adapt to your own needs. This manual does not substitute the advise of a consultant. I am personally one and the purpose of this work is to help Companies get started. Some small manufacturing or service operations will benefit from this process and perhaps grow to the point where they will need and be able to afford direct consulting.

Let us begin by clarifying some concepts…

What do Manufacturers
really sell?

Perhaps one of the most frequent misconceptions is that:
Many manufacturers think that what they sell is… “products…”

What manufacturers really sell is Process; it is the service of transforming the raw materials into the product the customer wants to buy. Later we will see why this clarification is very important.

Here comes a consideration: We only make money when we deliver. So, unless we are performing that transformation: shaping, forming, assembling, adding features, or finishing the product and shipping it away, we are not making any money.

The “Magic” of
Value Stream Mapping (VSM)

VSM is a valuable tool. It is in plain terms the diagram for the success or failure of a manufacturing operation. VSM is a strategy and a culture, not an event, where we analyze the Process. We establish here the efficiency or inefficiency of the operation.

Most Companies know their process or at least know what the process should be. In reality there are usually two process maps:

      The theoretical map that you can learn from the manufacturing managers’ or the process engineers’ point of view, it can even be depicted in a Process Manual, and…

      The real or “practical” map that you will only learn from observing the people on the floor of the plant and talking with them.

In most Companies, these two may differ somewhat minimally or perhaps far too much… These differences we will call: “deviations.”

Which of these two maps is wrong? None! They both have a noble common purpose: to complete the transformation process we are being paid for by the final customer.

One of the first things that should happen to achieve Lean Manufacturing is to conciliate these two versions of the process map. Many Companies do not devote enough attention to fix this and they can go from mediocre results to a total failure.

This conciliation will take anywhere from a few hours to a few days, depending on the size or complexity of the operation we are mapping.

a)   Use your current Process Manual or create a draft of one, establishing on paper: the sequence, timing, and detailed step-by-step action of each current operation. It must cover in each operation all the actions that take place from receiving the unit or piece of work until it is delivered to the next operation, the more detailed - the better.

b)   Once this “theoretical map” has been reviewed, go to the floor (Gemba in Japanese), and observe the sequence, timing, and mode in which operations are really being performed. It is important to observe here:

a.    Any awkward, excessive, and / or unnecessary movements, or efforts, that may be taking place

b.    How many parts or units are “waiting” for each particular process?

c)    Do not try to make people align with the original ("official") procedure, but instead try to learn what has made them alter, if any, the sequence or mode of doing things. You can really learn a lot from them here.

Note: Not all the changes made in the “practical” process are acceptable or convenient… although, many or even most of them may be.

d)   If an operation goes against the best interest of the process, analyze in depth so you can reach the Root Cause of the deviation.

e)   Explain clearly why this can’t be accepted and, even if you know it, ask for the help of operators and others involved to fix the problem that is causing the deviation.

f)     If the practical changes are real improvements, immediately congratulate the people who have created those. Tell them that the formal Process Manual will be improved with their ideas, and Do It, giving them credit for it.

g)   Once an updated “Process Manual” is available, have it posted in an accessible spot of the plant, so anyone can consult its contents. Of course it is important that the language used in this Manual, be friendly and clearly understandable for everyone. Some cases will require publishing it in more than one language.

This Process Manual is comprised of Standard Process Sheets.

SPS- Standard Process Sheets

h)   Each of the associates should have their own Standard Process Sheets (SPSs) that explain in detail each of the actions that take place in their operation. These should be made highly visual, with pictures and/or physical parts attached when feasible. An SPS is very much like a cooking recipe. It has a clear description of:

a.    The “Ingredients”

b.    The “Tools to be used”

c.     The “Cautions” to take, and

d.    The “Way to do it”.

i)      Each operator must have one SPS per each different product he-she works on. Posting these in the work area when possible is the best way.

Click Here to see an example: Several SPSs are held with rings in this very simple arrangement. They can be easily selected to show the one for the product we will process next. (Courtesy of Carvin)

j)     Encourage all members in the organization to bring up new improvements they suggest can be made to the process and the SPSs. Analyze each of these possibilities and if feasible, incorporate them to the SPS and Manual. This will be, from now on, an ongoing process.

Think of Visual Aids like we see in the picture: Use a flawless piece of the real product as an example. Affix it firmly and mark it, so it can't be mixed with new parts being produced. Don't let it take table or bench space.
Click to See The Picture (Courtesy of Carvin)

k)   Feasibility of improvements must be considered as: possible, cost effective, and causing improvement or at least no deterioration to the characteristics of:

a.    Our People’s safety and quality of life

b.    The Product’s quality and features

c.     The Plant and Environment…

Once the process has been clearly defined, we will perform a VSM. This means analyzing each operation and action within the process with one purpose:

Clearly establish what adds and what does not add value to the product or service. At this beginning point, most manufacturers believe that at least 70 to 80% of their resources is put into the product as “value added.” Sorry to disappoint you… in an average operation, more than 90% of the resources: time (of the machine and/or operator), energy, materials, plant spaces, and other resources, are wasted.

In a very efficient Lean operation we expect to find that up to 70% of resources are being put into the product. Only exceptional operations will render above 90% performance, meaning <10% wastes; Toyota™, Honda™, Nissan™, GE™, Motorola™, and Hyundai™ being some examples of this in their U.S. operations.

Value Added is defined as:
Actions, operations, and/or processes that contribute to transform the raw materials into the product or service our final customer is willing to pay for.

When detected, non-value-adding actions, operations, or processes; they should be: reduced, modified, or eliminated. Some of these, unfortunately, will have to remain in place, at least in part and hopefully at their minimal expression.

Non Value Added activities and Wastes, include, but are not limited to:

Defects

Overproduction

Waiting

Not utilizing people’s
Talents and Creativity

Transportation

Inventory

Motion

Excessive Processing

Wasted Energy

This detection is the result of observations from all of our people in a daily basis. We need to develop a culture that encourages all the individuals in the organization, (that in a lean operation will be called our associates), to prevent any waste of resources. One Piece Flow will strongly contribute to this purpose.

See the “VSM Procedure” ahead…

Inventory

One of the most common problems seen in most plants that we visit is without a doubt “excessive inventory”. Some people still have the misconception that inventory is synonym of wealth. In reality, inventory is a true enemy for any manufacturer.

Inventory is seen at many steps, from the supply to the finished product with emphasis on WIP: the work in progress, also called work in process. These inventories have several characteristics that make them our enemies:

Stagnated resources

Storage space

Spaces that create unnecessary distance-time between processes

Obsolescence

Natural deterioration

Accidental damages

… And some more

Besides, inventories are always at risk in multiple ways.

We have been analyzing plants with hundreds or even thousands of units (intermediate products or sub-products) in WIP inventory. They are laying everywhere: on the floor, in boxes, crates, racks, bags, buckets, shelves, patios; you name it!

A recent project was very revealing of this problem. A Company had more than 300 units in process in their final line before the implementation of OPF. Three days later, the WIP had been reduced to just 9 units… (97+% reduction!) and has stayed like that!

WIP the Culprit

Let us see some of the main disadvantages of WIP:

Sometimes we start working on a semi-finished product that had been waiting for many minutes and sometimes hours, even days, just to realize that a previous operation was not performed right… a little too late: hundreds of units have already been processed with the same defect, sometimes difficult and costly to rework.

Having lots of semi-assembled products takes space; making distances between operations longer, and operating areas larger than necessary.

If we add the cost of materials and labor put into each part or unit in process, we will see enormous amounts of money that are doing nothing for the Company. That is a financial loss. Money that is Not Making You Money

In many cases, those units in process suffer damage or alterations derived of the normal conditions of the plant. It can be dust, humidity, accidents that can gradually damage and even ruin those products–to–be.

Time: a Paramount Element in Lean Manufacturing

When we want to increase productivity we will use time as a paramount element to compare and measure the progress. There are Three Main Elements associated with time:

Lead-Time – Cycle-Time – and Takt-Time.

The Lead-Time Concept

All the WIP in your plant represents an investment. Each delay in bringing the product out of the door contributes to lengthen the Lead-time.

Lead-time is the amount of seconds, hours, days or weeks required to deliver a product. This time starts accumulating at the time the customer orders something. Then, the first piece of Raw Material is ordered and sometime later received, to start the process and does not stop until all those Raw Materials, transformed into the product that the customer is willing to buy from you, is ready to be shipped to that customer. If you deliver by your own fleet, it ends when the product reaches the hands of the customer. In some cases, (financial cycle time), the cycle can also add the span of time until the payment of the customer is deposited in your Company’s bank account. That is when your money completes the cycle. That financial part of the Lead-time can also be handled separately.

To see how important it is to shorten this Lead-time, just think that you will (best case scenario), get the same profit for your investment (Raw Materials plus Labor and other production costs), if you deliver in 100 seconds or in two months. The difference is that when you are capable of delivering in 100 seconds, your profit will be about the net between cost and the price of the product, bringing the financial cost to practically “zero”. While in the case of a long Lead-time, the financial cost will grow astronomically. Seen a different way: you pull out of your pocket one dollar and you can get it back in 100 seconds with the profit added, or you will see it again (with the same profit or less), two or more months from now! What is best?

As we see Lead-Time is Not our friend.

Our OPF effort will focus into reducing this lead-time as much as we can. The good news is that most of this Lead-time is just a waste of time, so we will find numerous opportunities to reduce it. Remember you are not alone in this; all of the people in the organization will participate and help you find those opportunities… and beat them!

Now let us analyze the
Cycle-Time

Cycle-Time is the real amount of time that we put into each product in each operation. So there is a Cycle-Time per machine, per operator or workstation, per cell and there is also the “whole plant Cycle-Time.” You will measure these by observing a cycle. The plant's Cycle-Time is just as fast as the slowest of the Cycle Times involved in the process.

Here comes a very big difference between the old style batch or lot manufacturing and the One Piece Flow. If you manufacture by lots or batches, the Cycle-Time grows proportionally to the size of that batch. The following operation usually has to Wait until the batch is completed.

Wait sounds very much
like waste!

Let us imagine you want to measure the cycle of a press brake operation making a special profile with two bends. Count from the time the operator picks piece # 1, makes all the movements and operations, until he picks up piece # 2. I recommend that you measure several cycles and then calculate the average per unit. At this very critical point, although the part is finished in a few seconds, it is not delivered to the next operation. That causes the cycle to grow arithmetically.

Of course not always is it possible to drastically cut the lot or batch to the ideal size of “One”. Especially it is not effective in those operations that require a setup to get started. In those cases the strategy is to reduce the size of the batch as much as possible. This will not affect the Cycle-Time if we are able to balance the operations in a way that all of them are continuously active. In this case, say we are making batches of 20 metal parts, and the cycle-time of our batch is 140 seconds, that brings our Cycle-time per unit to 7 seconds. If we are able to immediately transfer the batch to the next operation and the batch gets started right away, the WIP inventory will have a maximum of 20 parts and a minimum of one, so our average WIP is 10; not too bad on low-cost parts.

Some processes like Batch Ovens, may require for us to create a cushion. We will in these cases produce a Supermarket to recuperate the continuous flow.

In the ideal world, the batch size is “One” so the WIP inventory is one times the number of operations required. This magic “One Piece WIP” is a critical element when we implement the “Pull System”.

Setup times can be reduced via SMED… See SMED ahead.

See Pull System ahead.

See Supermarkets ahead.

We will initially focus on the Cycle-Times of those operations that represent a “bottle-neck” in the plant. Since they cause the flow of products to stop and wait for them, our purpose will be to reduce or eliminate that wait. Whatever the slowest workstation takes to make a cycle; is the Cycle-Time that will prevail and in most cases “slow down” the rest of the plant.

You will have some alternatives to solve these situations called “bottle necks”:

See Takt-Time adjustments below.

Here is a very typical success story of Cycle-Time reduction from my associate Bill Gaw, one of the best consultants I have ever met:

“At P-S-Inc, when we introduced a new multi-functional component test system, one of our primary goals was to increase our product's profit margin from the usual 32 percent to a new high of 42 percent.

How were we going to do that?

To accomplish this goal, we decided to focus on reducing our build and test time. Our plan was to implement a sequential production assembly line supported by a point-of-use "just-in-time," supply chain. Supply chain and Cycle-Time management were to be the keys to our success. When we first started production the “build/test” Cycle-Time was averaging 42 days. How did we do?

At the end of the first year of production, the Cycle-Time was averaging 12 days (>70% reduction!). Our profit margin was at 38 percent, (almost 20% improvement). By the end of the second year the Cycle-Time was 8 days (accumulated reduction >80%) and the profit margin was at 52 percent, (60% improvement!).”

Thank you, Bill!

The Cycle-Time reduction is a factor that you will multiply by the increase of profit margin, so this example from Bill represents 70% faster, times 60% more profit! That is 4,200 YES! 4,200% or 42 times more results per year, per day, or per second, minute or hour depending on the value and speed of the process we may be focusing on. Important here is to say that, in order to accomplish this, you will not have to hire more people. We are talking about utilizing the same resources, but better!

WHAT? Yes, the same resources can all be made and utilized better.

The answer:

Improvement…

Of your plant’s layout

Of your lighting, ventilation, and ergonomics

Of your working areas’ quality (5S)

Of your distances (Spaghetti Chart)

Of your material handling (See JIT and OPF)

Of your management style and systems

Of your associates’ knowledge and awareness

Of the profit you get from the operation

Of the salaries, hourly wages, and bonuses you pay

Of your suppliers’ services and culture

Of the net utilization of your equipment’s uptime and features

Of the Leadership environment in the whole organization

A facility of one of my customers had an oven to dry their painted units. It was taking 36 minutes for a unit to be dry enough for the next operation with the oven at 230º. The manager, after consulting with the paint supplier, made the decision to shorten the oven and increase the temperature to 300º. The drying time could be reduced to 21 minutes. This creative solution is allowing for that plant to reach their ideal Takt-Time and using 30% less plant space.

See chapter on:

"Improving Your Current Resources
the Kaizen Way"

Now, The Takt-Time

We have seen so far:

Lead-Time, the time it takes for the product to go from being ordered to being delivered or paid.

Cycle-Time, the time it takes for one step of the process to contribute into transforming the raw materials into the product the customer wants to buy.

Now we will see the Takt-Time concept…

Takt-Time is the result of dividing the number of seconds (or minutes) that you have determined your plant will run, by the number of units you need or want to produce in that period.

Say for example that you want your plant to produce 120 units per day and you plan to run the plant 8 hours (net working time) per day.

Those 8 hours represent 480 minutes. This means you want to produce 15 units per hour or: one unit every 4 minutes.

So now, we know what our Takt-time should be. We will make sure that each and every operation can be completed within that Takt-time. Perhaps we will find operations like we saw above in “Cycle-Time”, which take longer and represent “bottle necks”. Here are some alternatives to fix that:

See if the operation can be improved to fit within Takt-time.

Split the operation into 2 or more sub-operations as needed.

In some other cases, it is possible to have two or more associates work as a team to complete the operation within takt-time.

In theory, if you have measured that the real or net Lead-Time accumulated by 20 operations (net time put into the process per product) is 80 minutes, it would be ideal to have every single operation finished within a Cycle-Time of 4 minutes. This will allow you to create the One Piece Flow. Actually this brings the Cycle-Time of the whole cell or plant to the 4 minutes target, since right after each of the operations finishes its tasks, it is ready for the next unit.

This means you would need your people working harmoniously in perfectly balanced operations working every single minute of their shift to comply with the goal…

Obviously here you will have to make some realistic considerations: People usually will work comfortably with a load not bigger than 80% of their full capacity. That means you would require a few extra persons, so all of the associates have some free time every so often.

A comfortable arrangement is to have all the operations balanced to a load a little shorter than the Takt-time.

Some intense manufacturing operations are organized in a way that the teams work 50 minutes and rest 10 minutes every hour. The associates also should have some other brief breaks.

In an electric welding operation, we understand the need for the welder to have a rest between operations, so if the takt-time is 4 minutes, the real welding time is probably between 2 and 3 minutes.

See “Cross-Training” ahead…

You will learn the Real Cycle-Time for the whole process through the Value Stream Mapping (VSM) procedure…

The Value Stream Mapping
(VSM) Procedure

This will be a fun and important process to take place in a large room where you can put together a team comprised of some key people from the plant and administrative areas. We will need a large whiteboard or plenty of flip chart paper and the appropriate color markers in good shape! (You would not believe the amount of markers that I have had to throw in the garbage can when I try to use them right at the beginning of a training session, and they are dry).

Together we will start analyzing the process step by step from the shipping or delivery to our final customer, back to the receiving of the order; or the raw materials if we do not produce to individual order.

This map made of modules or blocks, will clearly show the flow of the product(s) in detail and will also define the time (ideally in seconds), spent by the product or sub-assembly in each operation. This time counts from the time the product arrives into the workstation until the workstation is ready for the next product or unit.

We will start at the extreme right of our whiteboard marking a square that represents the point of delivery. This can be our “Ready for Shipping” area or the customer receiving if we are to transport by our own means.

Look at the Lead-time as the delay to get your money back along with your profit.

At this point you will already have taken some real time measurements of those that you consider the most critical operations in the process.

Compare your observations with the Cycle-Times your operators, supervisors and other associates are going to estimate here. For sure you will hear some important discrepancies between the real Cycle-Times and what they think the Cycle-Times are. Don’t worry; everything will eventually come to a precise reality.

Let us see some conventional symbols that we will use in our mapping procedure… I told you this will be fun!

Briefly describe
the Operation
and the
Time Needed to perform it on
One unit or
One Minimal Lot

Number of operators in each Operation (Ideally=one)

Parts ready to be processed in next WorkStation

Insert Assemblies from a different area or external supplier

Transport

Supplier/Customer Facility

Flow

Clicking Here we will see a very simplified map. You will need a large whiteboard to display your process and the use of Sticky Notes may be a good idea...
For a more in depth experience in VSM, we recommend Bill Gaw's Tutorial. Click here for the information.

The first VSM we will call: “Current State VSM”. It reveals what the operation is now and has probably been for a long time.

Once it is graphically defined, our next step will be to “Challenge” each one of these operations. Ask each participant, especially the operators and floor supervisors, if the operation can be simplified, reduced, moved to some other sequence in the process, or even eliminated altogether. This is sometimes undermined by the feeling that some of them can loose their job, so please assure them that all these improvements that Will Be Taking Place do NOT mean getting the job done with fewer people, but to get more done with the same more efficient people, so they all can make more money, and the Company too.

Everyone will become a
More Valuable Associate!

Analyzing each operation should render a number of improvement opportunities and it is critical to put them in a list, since later on, we will schedule them. Write those opportunities down.

Considerations to create the Future-Vision
Value Stream Map

We need to make sure that all of our people are in the same page. This is a crucial point in the whole transformation. In order for all to cooperate effectively, we need to share all the information. The VSM exercise is a good way to establish this new flow of information-sharing process. The Leaders will openly discuss with the whole team their own observations and they all will have a say in what should be done.

It is important to share with all the participants the basic concepts we have been discussing here. They all must understand the Lead-time, Cycle-time, and Takt-time concepts. They all should feel empowered to bring to the table their improvement ideas.

Cross-Training:
Flexibility and Versatility

One of the advantages of having SPSs and other Visual Aids is that the training on each operation becomes very simple and straightforward.

New People will be able to understand and develop skill in an operation at a very fast pace. This is a good opportunity to get started with one of the most powerful tools that Lean Manufacturing offers: Cross-Training. It helps operations prevent the “Indispensable Person” syndrome. When people are cross-trained they become more valuable and also have more fun while they are working. In many cases when this discipline is already implemented at a high level, we will see people exchanging operations during the shift, sometimes by their own initiative. One advantage of this is that associates no longer feel that “they have been given the heaviest work load”. For the sake of the operation this helps the organization overcome any eventual absence of an associate.

Training for a Marathon?

One of the surprises we frequently have in the implementation of an OPF system, is the distances that production operators walk everyday in the traditional Shop-Style manufacturing.

They walk:

To find the raw materials

To carry them

To take their batches of semi-finished items to the next station or pick them from the previous one

To find some help with a defective part

To get tools, accessories or replacements

To ask for permission to do something

Hundreds to thousands of yards are covered everyday. Let us remember that our customer is paying only for our service of transforming the materials into the product that he or she wants to buy. That means they do not pay for the useless walk of our associates. We pay for that from our should-be profits-bonuses.

In the OPF environment, we make sure that our production people move only the indispensable distances to do their work, we make sure everything they need is brought to them, storage of parts is enough only for the following few minutes or hours and is right within their reach. This is called POUS (Point Of Use Storage.) Tools or help are right there where they need them.

An example: At the Toyota plant in Nagoya, with a Takt-time of 26 seconds, the bulky exhaust systems are brought to the line in groups of 6 units every 2 minutes and 36 seconds. Tires are replenished to each mounting area, (one on each side with capacity for 24 tires), at a rate of 20 every 4 minutes and 20 seconds.

Actually as our improvement project evolves, the internal first, and then the external suppliers, will be educated to bring the parts and materials to the point of use, instead of a warehouse. They will bring them in the right amounts and at the right time they are needed. (See Supplier Development ahead)

We have seen substantial reduction in the accumulative distances run by a team from several miles a day to just tenths of a mile a day per each person.

They will work Their Way

As we know, Lean Manufacturing is possible only in a total leadership environment. The making of the most efficient process has a lot to do with Lean Manufacturing Engineering and everyone’s common sense. Operators will have a very important say in all these changes.

In some cases, where we have people who have been working in a plant for many years, we will need to un-train them and then re-train them. This means we need to banish the concept:

“This is the way it has always been done”,

and focus on

“It can be done better”,

or Continuous Improvement Mode (Kaizen).

In many cases, people will bring up ideas they had in the past to improve their operation, but were told to shut up, either by their supervisor or by their peers. The Companies of the past would hire people assuming they did not have any creativity or intelligence of their own. That has meant the waste of a great contribution their people would have enjoyed sharing with them.

Changing Management Style

Not an easy task, Management Change represents a real Milestone in the whole process towards Lean Manufacturing implementation.

The old “authoritarian” style has no place in the current business atmosphere. Bosses are no longer needed, but Leaders are in strong demand. Employees on today’s labor market have a higher self-esteem than their predecessors.

In today’s environment we find a more educated group of people who enjoy thinking and innovating. Giving them unlimited opportunities to use these skills will turn them into the most cooperative force you ever imagined.

“Leadership”: The main requirement for any Company to embark into the Lean Manufacturing journey is either present or it is absent. I mean, you can’t have a “moderate leadership” attitude; you simply have it or not have it at all.

This is, without a doubt, the most challenging part of any True Lean project, and Management -at all levels- need to be aware and totally supportive of the cultural switch, or the improvement will simply not happen.

In the past I have had to decline consulting opportunities with Companies that desperately need the change in management style, but are not ready for it.

The good news is: it can be acquired through training and practice in a few months. Some “let-go” of power and authority will have to happen in order for the leadership to start taking over for the good of the whole organization. As they practice this new attitude, your managers will start feeling a relief from the stress of confrontation and will have a much friendlier environment to develop their daily work. Their associates (in the old ages called subordinates) will cooperate with them better than ever. This is based on a few simple facts:

“Nobody likes to have a boss, but we all enjoy having a Leader”

“Nobody likes receiving orders but we all enjoy being a contributing part of success”

“We do not like to obey, but are always eager to Help”

It can be as easy or difficult as your Company’s personnel may be willing to engage into it. Our “Management Through Leadership” Manual gives you some guidelines to make this happen.

Visit www.ManagementThroughLeadership.com

Once you achieve that atmosphere, you are ready to get on with your OPF project, and any other kind of Lean improvement.

TPM, the path to the
Kaizen Culture

For the last 13 years I have been implementing this magnificent discipline and I feel very strongly about it. Traditionally, there has been some natural antagonism between two important forces in the industrial activity: Production and Maintenance.

By pointing fingers and blaming each other they frequently miss the point: We all benefit from optimal Uptime and Productivity of the equipment and plant.

TPM brings together these two forces and develops the perfect environment of cooperation necessary to grow the sense of responsibility and ownership required to achieve the 3 main goals:

Zero Breakdowns

Zero Defects

Zero Accidents

With a good TPM in place we can expect a high level of awareness and knowledge on the operating principles of the machines and the plant in general. More involvement in the preservation of these assets and more understanding of our technicians about the needs and circumstances of the process will contribute to an excellent result. We recommend that you read the many articles on TPM that we have in www.TPMonLine.com

OEE - Overall Equipment Effectiveness is the "Measurement Unit" of the status and progress of your facility as a whole or of one particular machine or line.

SMED to Respond Faster

Most industrial facilities need to be more versatile all the time. Competition has created the need for all manufacturers to be open to changes in the preferences of the marketplace. In some cases diversification will be synonymous of survival.

No longer a company would survive making only Black Model T’s. Toyota Motor makes more than 1,000 different models, combinations, and levels of equipment in their more than 100 plants all over the world. They go all the way from less than $7,000 to more than $90,000.

Here is where SMED, “Single Minute Exchange of Dies” comes handy. It is a discipline where the goal is to perform all the changes needed to produce a different product in a matter of no more than 10 minutes. The NUMMI plant in Fremont, CA produces simultaneously automobiles for General Motors and for Toyota, on the same line. One of their impressive stamping presses uses dies weighing more than 20 tons, and they change those in no more than 7 minutes.

Read more about this in our website… www.TPMonLine.com

Pull Systems and the Supermarket concept…

When we want to achieve real One Piece Flow, it is convenient to think of the way modern supermarkets operate. They have very reduced storage areas. The suppliers are assigned some specific spot to display their products and have the commitment to keep enough products for people to find it always there and always fresh. It is not unusual to see suppliers, who do not work at the supermarket, filling up the spaces that customers create by “pulling” the products they want to buy. There is an assigned-estimated shelf area and no space for more. They need to bring more fresh products every so often if they want to keep that space. We can use this same concept in the manufacturing environment. Have only the amount necessary of parts or sub-assemblies for the process to keep the continuous flow.

Same thing with should apply to finished products. Have only what you need to keep up with the demand of your customers. For this purpose we will use "Kamban" (also called Kanban by some authors)

Kamban - Simplification

We need some help now. How can we keep the timely flow of supplies under control?

Kamban translates into "Signal" or "Flag" and it is a creative tool that will show the status of the POUS (Point of Use Storage) or the main or central storage if it exists.

Say for example that you need 20 minutes to get the supply of cardboard boxes replenished in a shipping station. Your storage will have a visual red mark when the station only has boxes for the next 30 minutes...

Click here to see this example

This can be applied in many creative ways. Some operations may have electronic detection to send the signal to an automated or semi automated supply system. It all has to be in agreement with the importance and value of the materials and the operation itself.

At Toyota of Nagoya we can see an automated train that carries the assembled dashboard from the instrument assembly cell to the mounting station. When the assembler takes it from the train to put it in a car, a sensor makes the empty train go to back the cell and a new train is sent to have a new dashboard ready in position for the next car.

At an exemplary Medical Products facility in Temecula, California, the Kamban is a pre-filled Purchase Order at the bottom of the tray containing the part that marks the minimum level for 24 hours. The user of the part inserts the P.O. in the fax machine just a few feet away, so the external supplier gets the order and delivers in less than 24 hours. This company has totally eliminated the Warehouse concept and has small reception areas in each production unit, where the suppliers deliver the materials.

Suppliers Development

The internal and external suppliers will need to understand the new process. No longer should manufacturers accept enormous amounts of materials to get the wholesale prices. The suppliers must be assured that the manufacturer will keep the loyalty to them as long as they do their part: Deliver the correct Quantity and Quality at the right time and in the right place. Warehouses should no longer be the recipients of everything. A growing number of parts and supplies will be delivered to the POUS. In the automobile industry some suppliers are delivering several times per day the amount necessary of parts right at the spot where they will be used.

Many suppliers are already aware of this trend and will not be surprised by such requirement. Some others will need to receive enough information to understand the new rules of the game.

Improving your Current Resources the Kaizen Way:

At this point with the Analysis of the VSM, you are ready to take some action in a particular area or process that will show the most impact when you start implementing the improvements.

First, you will need to become very objective. Objectivity is our skill to “imagine” things. Imagine that today; you have been hired into a new job.

This assignment will start as soon or as late as you want. Of course: the sooner, the better. Some important Companies have failed to hesitation.

Your new job in this ”unknown” plant will be to identify a small area of opportunity. Perhaps one of the most concerning areas or departments will be the best to start. Then, find a discrete spot, observe, and take as many notes as possible:

Observe carefully and take plenty of notes. Look at:

The movement of people, parts and products: (draft a simple layout and lines representing the travel of people and materials.) This is called a “spaghetti chart.”

The operations and interactions of people.

Look for awkward movements people have to make while they perform their operation.

Find the waste of resources that everyone may be overlooking: Power, air, water, space, materials, time, efforts, etc.

Ask yourself and the operators in the area if any operation can be improved.

Make sure you really listen to them and acknowledge their input. Do not use your authority or hierarchical position.

Use your motivation skills to bring them on board to a more prosperous operation.

Consider the feasibility of putting into practice some of the improvements suggested and measure the effect of these in terms of: time, movement, savings, increased productivity, etc.

Keep all the people constantly informed of the actions that are being taken towards these improvements.

The data gathered will give you the basic materials to create your first OPF project; it will be fun and productive. And now… Swim or Swim! No room for sinking here.

Your First Kaizen Project,
Step by Step.

Implementation…

This project should bring together your team of 6 to 12 people. Operators of the Pilot Area must be included, also consider at least one maintenance technician and a couple people who have never worked in that area. A financial or administrative person is ideal here too.

In the first 2-3 hours the objective of the project must be clearly addressed. Do this in a quiet area away from the noises or interruptions that you could have in the plant floor. Explain clearly the idea of improvement to the operations. Make sure each person realizes that all these changes and efforts will be very beneficial for everyone. They must also learn that the changes Are Going To Take Place. This series of activities will be developed in order to:

A.   Make the working areas more:

a.    Comfortable

b.    Clean

c.     Organized

d.    Pride-worthy

B.   Make their jobs:

a.    Easier

b.    Safer

c.     More productive

C.   Identify and reduce or eliminate the waste of resources

D.   Assure the quality of the product at each step without the need for inspection

E.    Create a continuous flow of products

F.    Increase the odds for the Company’s stability and their job-security

We are now ready to Start the Action. Bring the team to the Pilot Area and start finding the opportunities for improvement.

Step # 1: The 5S Discipline

The 5S discipline will be the first step in the whole transformation. It will, at the beginning, sound intimidating for some, but after a few hours of team effort, the improvement of the area will become evident. A working area that has gone through the 5S transformation is drastically better and creates a “fresh” new attitude.
The 5S is a discipline comprised of 5 steps and took its name from 5 Japanese words that begin with an “S”.

a.    Seiri, the first “S” translates as “Sort”. It is about the identification and removal from the workspace of all kinds of materials, parts, objects, eyesores, even trash, that simply Do Not Belong in it. That is the case of buckets, cans, pieces of wood, rags, stains, residual materials, broken or obsolete tools, and many more

b.    Seiton means “Straighten” or “Set in Place.” Once we have cleared the area of useless or unnecessary things, we will now organize what is needed, finding a place that is convenient for all the users of: Benches, Tables, Racks, Tools, Materials, Machines, etc. With the users’ input we will make sure we visually identify the right spot for everything and everything goes back to its place immediately after use.

c.     Seiso is Japanese for “Shine” or “Super-Cleaning.” Now that we have cleared the obstacles, put everything in the right place, we will bring our working area to a high level of cleanliness, cleaner than it has ever been. As we clean, we will analyze in depth the origin or sources of the contamination or debris found. That way we will take care of the root cause and prevent the recurrence. A number of leaks and some other problems will be permanently corrected during this stage.

d.    Seiketsu means “Standardize.” The new status is here to stay. This has not been a “momentary” fix, the new level of cleanliness and orderliness provides all the participants with a better environment and the people in the area will acknowledge this improvement and do whatever it takes to preserve the new status that the enjoy and makes them feel proud.

e.    Shitsuke translates into “Sustain.” This 5^th “S” is very critical and we can apply it to almost every improvement. It is the deliberate care that we should take to make sure we all keep enjoying the benefits of the effort applied.

Step # 2: Upgrade the Area

Jobs are made easier through listening to the operators and adjusting the areas so they can get all the materials, tools and anything else they may need, supplied as closely and conveniently as possible.

a.    All that they need

b.    Where they need it

c.     When they need it

They will have a better workstation and the new organization will prevent accidents and defects in the process as well as waste of time “looking for things”. We focus on the ergonomics of each operation and look for the most comfortable way to do it. This process reduces unnecessary and awkward movements and makes people work happier. As a consequence, their productivity and quality of work is increased.

Upgrading the area comprises also all kinds of improvements that are needed to beat the wastes that we mentioned before... Remember?

Most of the time, if we have given the participants a clear view of those wastes, they will come up with bright ideas to reduce and even eliminate them. Sometimes we can give them a hint like: "Do you think you could help us find a way to keep this spill (or this damage to the product, or any other concern) from happening here?"

Remember:
"Everyone Enjoys Helping"

Step # 3:
Improvements and “Show Off”

Now we start looking at the best use of all the resources.

By the end of the project (usually one to two weeks), bring all the participants of the team together to a presentation where they will show the Management team, in their Own Words, what they accomplished. This presentation should end in a celebration where they get a special lunch or dinner depending on the time of the day. Encourage them to talk about their ideas and how the implementation of those ideas contributed to the improvements. Let them show their pride! Participants and managers should take this final step of the event as an opportunity for mutual commitment. Have them express how the changes will help them be more efficient, productive and preserve job security.

Appendix: Acronyms and
Jargon Used in this Manual

OPF

One Piece Flow

VSM

Value Stream Mapping

SPS

Standard Process Sheets

WIP

Work in Process or in Progress

SMED

Single Minute Exchange of Dies – Quick Setups

JIT

Just in Time

Jidoka

Autonomous Quality

Gemba

Production Area – The floor of the plant

NUMMI New United Motor Manufacturing Industries, a successful Joint Venture of GM & Toyota in Fremont, California

POUS

Point Of Use Storage

Bottle Necks

Work Stations which Cycle time is slower than the Takt-time, so they become a constraint to the total efficiency of the plant

Champion

The individual who will Make a Difference with his/her dedication and passion for the Lean Manufacturing culture.

Any questions, improvements or additions you may want to suggest are appreciated and welcome. Enrique@TPMonLine.com