Where
Are You In The Process To Lean Manufacturing?
How
Far Or Close Is Your Operation From World Class?
This
is a quite common and very legitimate question that we have in mind when
we really have the goal to succeed in this indispensable transformation.
I have heard it from beginners and also from experienced managers who
sincerely want to measure their accomplishments in the Implementation of
the Lean Manufacturing Strategies and Culture. Especially in these
competitive times it is healthy to be able to tell where we are and in
what direction we should be moving to achieve a realistic and noticeable
progress.
Felix
Niederhauser presents here a very valuable and thorough assessment tool
to help us face our challenges, strengths and weaknesses, so we can take
the pertinent actions.
Our
highly qualified European associate literally “digs” into the core
of the required skills and improvement processes that we all need to not
overlook.
At
the first reading of this Lean Manufacturing assessment tool, it may
feel somewhat overwhelming, but if you try to assimilate it step by
step, it will become friendly and enlightening.
One
bite at a time
Taking
one evaluation or section at a time (starting by essential step #1) and
devoting to it about one week of your team’s attention will generate
some valuable discussions and awareness of the current status of your
operation. Have the participants write down the main concerns discovered
in each step and the actions that would convey the solutions you need.
Then go to step #2 and so on. After one month you will probably might
have experienced numerous signs of progress and that will keep you
focused and motivated to continue.
Are
we there yet?
1.LEADERSHIP
Section
/ Term
Definition
1.
Leadership
Visionary change must be led from the top down.
To transform toward lean manufacturing,leadership develops and deploys a vision of a lean production system.
That vision supports the physical and organizational structure of
production, including support, and recognizes empowered teams, minimization
of inventory, suppliers as business partners, continuous process
improvement, and manufacturing processes. Leadership places significant
emphasis on developing trust and the right culture in the factory through
honest, direct and frequent communications. Production leadership has the
authority to control the essential elements of its production system
through a product based organization. Some aspects of that
authority--residing traditionally in HR, procurement, quality and
engineering functions--must be at the disposal of production leaders.
Finally, the work force is crucial to success and must be recognized and
treated as a business partner. This is essential if the worker is to
commit him or herself to improving the productivity of his or her job.
1.3.1Gain-sharing
The work force shares the financial fate of
the enterprise. The company shares production performance with employees
uniformly. Gain sharing is timely and dependent on individual product
centre performance. Employees understand the gain sharing system, find it
tangible, fair and motivational
1.3.2Job Stability
The threat of layoffs creates an impediment to
workforce trust and commitment . An employment policy that diminishes this
obstacle will foster improved productivity.A Job Stability Policyis
notguaranteed, but
rather a commitment by the employer to provide alternatives such as
training orjob placement.
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Vision:
To transform toward lean manufacturing, leadership develops and
deploys a vision of a lean production system. Leadership places
significant emphasis on developing trust and the right culture in the
factory through honest, direct and frequent communications.
1.1Quality of Production Vision
Site leader has developed a complete
understanding and vision of Lean
0 – 2 elements included. (from list below)
3 – 4 elementsincluded.
5 – 6elements
included.
7elements
included.
All 8 elements included.
Production
Elements
of a quality lean vision:
1.Physical factory organization
2.Empowered worker teams
3.Lean inventory
4.Supplier integration
5.Lean manufacturing practices.
6.Continuous process improvement
7.Work place culture
8.Stable and capable processes and variation reduction.
1.2Vision Deployment
Management, white collar workers and touch labor
teams have beeneducated/trained,
understand, and embrace the vision of lean production.
Management has not communicated a vision of
lean production.
Less than 10% of management and the work force
understandthe vision.
Less than50% of management and the work force understand the vision.
Less than70% of management and the work force understand the vision.
More than 71%of management and the work force understand the vision.
1.3Work Force as a Business Partner
1.3.1Gain-sharing
Employees understand the gain sharing system,
find it tangible, fair and motivational.
There is no performance based compensation.
A gain-sharing plan rewards salaried employees
differently than hourly employees.
One gain-sharing plan for all production
people. Workers do not feel compensation is tangible to their
individual performance.
One gain-sharing plan dependent on individual
product centre performance. Workers understand the
system and feel it is tangible.
One gain-sharing plan, dependent on individual
product center performance. Workers feel the system works and is
motivational.
1.3.2Job Stability
A Job Stability Policyis notguaranteed,but
rather a commitment by the employer to provide alternatives such as
training orjob placement.
No job stability policy
Policy developed but not fully implemented.
A job
stability policy of “no layoffs due to productivity
improvements” applied to cells or business units.
A Factory Wide jobstability policy
of “no layoffs due to productivity improvements”.
A Factory Wide training and job placement
program is in place.
1.LEADERSHIP
Section
/ Term
Definition
1.4
Communication
Management directly and honestly communicates
priorities, strategies and status to all levels of the work force.
Management acts consistently in accordance with what it says.
Management nurtures an open environment based on trust. In fact and
appearance, management trusts the work force. Leaders of production
have authority to protect production people from external actions that
destroy trust.
1.5 Basic Organizational
Structure
The concept of a lean production system
is used to organize operations and the support required to produce
product. The principle is to assure the authority exists with the
process owner that allows for integration of the elements of a
production system as defined.
1.6 Labor Classification Differences
There is visual evidence of mutual respect and
trust at and between all levels in the organization.
1.4Communication
Management directly and honestly communicates
priorities, strategies and status to all levels of the work force.
Limited communication and trust between top
management and the work force.
1 element.
2 elements.
3 elements.
4 elements.
Management acts consistently in accordance
with what it says.
Elements
of communications, actions and trust report:
1. Communications by site leader (Indicators: frequent and direct
communications, newsletter, bulletin boards)
2. Management acts consistent with what it says (Indicator: worker
survey or newsletter)
3. Management nurtures an open and trusting environment (Indicator:
worker survey)
4. Management trusts work force (Indicator:
Degree of empowerment)
1.5Basic Organizational
Structure
The concept of a lean production system
is used to organize operations and support required to produce product
Organization is process based (traditional
functional organization structure).
6 or 7 elements of authority are vested in the
product-based organization.
8 or 9 elements of authority are vested in the
product-based organization.
10 to 11 elements of authority are vested in
the product-based organization.
12 or more elements of authority are vested in
the product-based organization.
Elements
of production system authority:
1.Physical factory organization
2.Personnel assignments
3.Cellularization
4.Organization of factory teams
5.Quality polices and practices
6.Supplier integration
7.Inventory policies
8.Metrics and measurement (including waste)
9.Reporting lines of support functions
10.Continuous process improvement approach
11.Gain sharing policies for workforce
12.Job stability policies for workforce
13.Manufacturing practices and processes.
1.6Differences Between Labor
Classifications
There is visual evidence of mutual
Score = zero
Score 1 or 2.
Score = 3 or 4.
Score = 5or 6.
Score = 7.
respect and trust at and between all levels in
the organization.
Scoring - one point each
for:
1.Office amenities as needed, rather than as status.
2. Assigned parking as needed, rather than as status.
3. Common eating facilities
4. Common dress code or dress expectations
5. Common benefit system
6. All compensation systems the same the entire work force.
7. Training & educational opportunities available to all.
2.FACTORY ORGANIZATION
Section
/ Term
Definition
2. Factory Organization
The physical
organization and layout of the factory should support the concept of a
“lean“ factory organization. A cell concept should be used to organize
production. Cells are ideally organized by product. Fabrication
operations are organized into cells based on group technology or parts
families concepts. All personnel, equipment, material, processes &
resources required for every cell’s production are part of the cell.
Sometimes, cells are grouped into business units to which the needed
support resources and people needed for production are assigned for
efficiency. Cells or business units operate as “factories in a
factory.” Cells are arranged for efficient flow of products and
work-in-process. Production flow, status and problems should be clear
and apparent to the casual observer. Manufacturing operations within
cells have been optimized to minimize wasted time and effort. Cell
design puts material, tools, and equipment for the comfort and ease of
use by the cell’s operators. Each cell has good physical facilities
for communications, e.g., meeting areas and communications boards.
2.1
Factory Organization
The factory is ideally organized into cells by
product. Fabrication operations may be based on group technology or
parts family concepts. Business Units are usedto organize cellswhen
it is most efficientto
share resources between co-locatedor common cells.
2.2
Flow Between Cells
Each cell has clear, visible work flow, and
input & output areas within cells. Cells should have efficient and
clear hand off from one cell to another. Feeder cells are located
close to consumer cells minimizing product travel distances.
2.3
Internal Cell Optimization
Internal cell layout provides efficient flow
with short flow distances and processes at point of use.Manufacturing operations within the cell have been optimized to
minimize wasted time and effort. Cell design places material, tools,
and equipment for the comfort and ease of use by cell operators.
Ineffective, obsolete, or unreliable equipment has been replaced.Material or work- in-process does not leave cell for any
processing except, possibly for environmentally sensitive processes.
2.4Physical Resources
All assets required to produce the product are
controlled by the cell/business unit.All equipment, material, processes, and other resources
required for every cell’s production and day to day activities are
part of the cell/business unit,including
the co-location of support personnel.
Vision:
The physical organization
and layout of the factory should support the concept of a “lean“
factory organization. Production flow, status and problems should be
clear and apparent to the casual observer. Manufacturing operations
within cells have been optimized to minimize wasted time and effort.
2.1Factory Organization
The factory is ideally organized into cells by
product. Fabrication operations may be based on group technology or
parts family concepts.
Less than 25% of factoryorganized product.
25 - 49% of factory.
50 - 74% of factory.
75 - 89% of factory.
Over 90% of factory.
2.2Flow Between Product Cells
Each cell has clear, visible work flow, and
input & output areas within cells.
Less than 25% of factory has clear & well
defined input/output areas.
25 - 49% of factory.
50 - 74% of factory.
75 - 89% of factory.
Over 90% of factory.
2.3Internal Cell Optimization
Manufacturing operations within the cell have
been optimized to minimize wasted time and effort.
Less than 25% of factory has been optimized.
25 - 49% of factory.
50 - 74% of factory.
75 - 89% of factory.
Over 90% of factory.
2.4Physical Resources
All assets required to produce the product are
controlled by the cell/business unit.
Less than 25% of assets required to produce
the product are controlled with in the cell or applicable
business unit.
25 - 49% of assets.
50 - 74% of assets.
75 - 89% of assets.
Over 90% of assets.
2.5Production Status / Communications
2.5.1
External Communication of Production Status
Production flow, status, and problems are
clear and apparent to the casual observer.
Less than 25% of factory hasclear production flow, status, and problem visibility.
25 - 49% of factory.
50 - 74% of factory.
75 - 89% of factory.
Over 90% of factory.
2.5.2
Internal Communication of Production Status
Data for cell operations is available for all
team members.Each cell and business unit has good physical facilities for
communications (meeting areas, boards, etc.).