seven steps to lean manufacturing - buker, incbuker.com/files/uploads/2010/01/lm.pdf · seven steps...

22
Buker, Inc. Management Education and Consulting WWW.BUKER.COM 800-654-7990 email: info@buker inc. .com Seven Steps to Lean Manufacturing

Upload: dinhminh

Post on 08-Mar-2018

244 views

Category:

Documents


5 download

TRANSCRIPT

Page 1: Seven Steps to Lean Manufacturing - Buker, Incbuker.com/files/uploads/2010/01/LM.pdf · Seven Steps to Lean Manufacturing. ... because Lean Manufacturing is a strategy for achieving

Buker, Inc.Management Educationand Consulting WWW.BUKER.COM

800-654-7990email: info@buker inc..com

Seven Steps toLean Manufacturing

Page 2: Seven Steps to Lean Manufacturing - Buker, Incbuker.com/files/uploads/2010/01/LM.pdf · Seven Steps to Lean Manufacturing. ... because Lean Manufacturing is a strategy for achieving

Many people think that Lean Manufacturing means coordinatingschedules so that parts and materials arrive at their point of use"just in time" to avoid inventory and the space it consumes.

Indeed, that is part of Lean Manufacturing – an important part. Butthere is considerably more than that to Lean Manufacturing. That’sbecause Lean Manufacturing is a strategy for achieving significant,continuous improvement in performance through elimination of allwaste of time and resources in the total business process.

For most companies, improving performance means change –dramatic change – in the way they do business. Change can beunsettling as people face new roles, new risks, and new standards ofachievement.

Yet, the change to Lean Manufacturing can be orderly andorganized for rapid success if a company follows the Seven Steps toLean Manufacturing. Before introducing these steps, it is importantto understand Lean Manufacturing strategy … its tactics,performance standards and philosophy.

Even more important, companies need to understand the attitudeand commitment – "the mindset" – that must be adopted by everymember of the company if the Lean Manufacturing strategy is tosucceed. This attitude and commitment, when adopted right fromthe start, can provide immediate payback before most of theindividual Lean Manufacturing tactics are in place.

First, an overview of Lean Manufacturing to relate how these sevensteps chart the course for Lean Manufacturing success.

Introduction

1

Figure 1: Leam Manufacturing Definition

Page 3: Seven Steps to Lean Manufacturing - Buker, Incbuker.com/files/uploads/2010/01/LM.pdf · Seven Steps to Lean Manufacturing. ... because Lean Manufacturing is a strategy for achieving

To accomplish the Lean Manufacturing strategy, a company mustenvision the business as composed of three business managementareas: technology management, people management and systemsmanagement. These work together in the manufacturing andbusiness management process to achieve three ultimate goals: shortmanufacturing cycles, total quality and continuous improvement.(See Figure 2: Lean Manufacturing Anchor Chart)

Each of the three business areas contains four elements – or tactics –for achieving the Lean Manufacturing strategy.

The Fundamentals ofLean Manufacturing

2

LEANMANUFACTURING

LeanManufacturing

SHORTCYCLES

PEOPLE TECHNOLOGY

TOTALQUALITYFOCUS

SYSTEMSCONTINUOUS

IMPROVEMENT

• STRUCTURED FLOW MANUFACTURING

• SETUP REDUCTION

• CONTROL THROUGH VISIBILITY

• LEVEL LOAD & BALANCED FLOW

• PREVENTATIVE MAINTENANCE

• SUPPLIER PARTNERSHIPS

• PULL SYSTEMS

• SMALL LOT PRODUCTION

• FITNESS FOR USE

• TOTAL EMPLOYEE INVOLVEMENT

• HOUSEKEEPING

• TOTAL QUALITY FOCUS

Figure 2: The Lean Manufacturing Anchor Chart

Page 4: Seven Steps to Lean Manufacturing - Buker, Incbuker.com/files/uploads/2010/01/LM.pdf · Seven Steps to Lean Manufacturing. ... because Lean Manufacturing is a strategy for achieving

The Lean Manufacturing technology management objective is toestablish a responsive production environment. This requiresshortening the timeline from customer order to cash by shorteningthe total business throughput time.

The following are the four Lean Manufacturing elements forcreating a responsive production environment.

1. Structured Flow Manufacturing entails arranging and definingmanufacturing resources so that products flow most efficientlythrough the manufacturing process. Most companies areorganized for functional manufacturing, where like machinesare grouped together and products are transported to machinegroups in batches during the manufacturing process. Infunctional manufacturing the ratio of work to motion is lowbecause products usually require a lot of transportation andother movement during the manufacturing cycle. Themanufacturing throughput time or cycle time is typicallymeasured in days or weeks. However, in Structured FlowManufacturing, resources such as work centers and machinesare aligned to conform to the manufacturing process sotransportation and movement is reduced to a minimum, andthroughput time or cycle time can be measured in days, hours… even minutes and seconds.

2. Small Lot Production is simply decreasing order quantities andlot sizes to the smallest quantity practically possible – ideally alot size of one, or at the very least, equal to the customer’sorder. This lot size reduction is made possible by usingstructured flow and reducing setup time.

3. Setup Reduction requires reducing the amount of time it takes toprepare machines or production lines for new work. It ismeasured as the time (and cost) from the last good piece of theprevious job or run to the first good piece of the new job or run.Short setups enable greater production flexibility, lessinventory, and more capacity.

4. Fitness for Use means meeting the customer’s precise needs –"passing the baton correctly." The customer can be the personwho buys your product, the person at the next manufacturingoperation or the person in the Planning Department whoreceives the paperwork from Order Entry. In other words, eachnext step in the total business throughput process is theprevious step’s customer, and the results of one work centermust meet the needs or requirements of the next work center …precisely.

TechnologyManagement

3

SHORTMANUFACTURING

CYCLES

PEOPLE

TOTALQUALITYFOCUS

SYSTEMS CONTINUOUSIMPROVE-

MENT

• CONTROL THROUGH VISIBILITY

• LEVEL LOAD & BALANCED FLOW

• PREVENTATIVE MAINTENANCE

• SUPPLIER PARTNERSHIPS

• PULL SYSTEMS

TECHNOLOGY

• SETUP REDUCTION

• STRUCTURED FLOW MANUFACTURING

• FITNESS FOR USE• TOTAL EMPLOYEE INVOLVEMENT

• TOTAL QUALITY FOCUS

• HOUSEKEEPING

• SMALL LOT PRODUCTION

LEANMANUFACTURING

Figure 3: Lean ManufacturingTechnology Management Elements

Page 5: Seven Steps to Lean Manufacturing - Buker, Incbuker.com/files/uploads/2010/01/LM.pdf · Seven Steps to Lean Manufacturing. ... because Lean Manufacturing is a strategy for achieving

The Lean Manufacturing people management objective is acapability for rapid improvement. This requires creating anenvironment where all levels, both management and hourlyworkers, are given the responsibility and authority to suggestimprovements and implement them – a risk-taking environmentthat makes rapid improvement possible.

The following are the four Lean Manufacturing elements foreducating, involving and motivating people.

1. Total Employee Involvement is recognizing that all of the peoplein the company are valuable resources who can provide many,if not all, of the solutions for improving performance. LeanManufacturing requires that everyone be involved inimprovements and their implementation through Small GroupImprovement Activities (SGIA).

2. Control Through Visibility is achieved by structuring operationsso that control of the process is possible through simple visualmeans. Examples include progress charts and flashing lightswhen a problem occurs so fast and decisive action can be taken.Control Through Visibility is then used for communicatinggoals and attacking waste using simple and straightforwardsignals to highlight problems or processes out of control.

3. Housekeeping focuses on the physical organization of the workspace. Simplification, cleanliness, discipline and organizationeliminate potential confusion, promote a safer environment,and reduce waste of time, motion and resources. In otherwords, a place for everything and everything in its place … noexceptions.

4. Total Quality Focus requires conformance to standards. Thequality of a product indicates the quality of the process. If thereare product quality problems, there are unacceptable variationsin the manufacturing or business process. Thus, Total QualityFocus encompasses the entire product chain from suppliers tocustomers and includes all functions of the business.

PeopleManagement

4

LEANMANUFACTURING

SHORTMANUFACTURING

CYCLES

PEOPLE MANAGEMENT

TECHNOLOGY MANAGEMENT

TOTALQUALITYFOCUS

SYSTEMSMANAGEMENT

CONTINUOUSIMPROVEMENT

• STRUCTURED FLOW MANUFACTURING

• SETUP REDUCTION

• HOUSEKEEPING

• CONTROL THROUGH VISIBILITY

• TOTAL QUALITY

• TOTAL EMPLOYEE INVOLVEMENT

• LEVEL LOAD & BALANCED FLOW

• PREVENTATIVE MAINTENANCE

• SUPPLIER PARTNERSHIPS

• PULL SYSTEMS

PEOPLE MANAGEMENT

• CONTROL THROUGH VISIBILITY

• HOUSEKEEPING

• TOTAL QUALITY FOCUS

• TOTAL EMPLOYEE INVOLVEMENT

• SMALL LOT PRODUCTION

• FITNESS FOR USE

Figure 4: Lean ManufacturingPeople Management

Page 6: Seven Steps to Lean Manufacturing - Buker, Incbuker.com/files/uploads/2010/01/LM.pdf · Seven Steps to Lean Manufacturing. ... because Lean Manufacturing is a strategy for achieving

The Lean Manufacturing systems management objective is tocarefully apply the limited resources of the business: equipment,material, people, money and time. This may require reorganizationfrom traditional functional disciplines to a more cooperative andintegrated style of organization that stresses flow approaches inorder to maximize the efficient use of resources.

The following are the four Lean Manufacturing elements thatsupport this integrated approach.

1. Level Load and Balanced Flow involves arranging work so itcreates effective utilization of manufacturing resources. LevelLoad is scheduling products to be manufactured in equalquantities during a given time period, such as a week ormonth. Balanced Flow is providing a continuous flow ofproducts through the manufacturing process for the mosteffective application of manufacturing resources.

2. Preventative Maintenance aims at reducing machine downtimedue to equipment failure. It requires maintainingmanufacturing equipment at a high level of operatingperformance – to have equipment that does not fail and alwaysoperates within the required tolerance specifications.Preventative Maintenance plays a major role in structured flowmanufacturing and is essential for total quality. The goal is toeliminate the equipment as a source of process defects.

3. Supplier Partnerships place their emphasis on "partner" thatimplies long-term, stable relationships with vendors. SupplierPartnerships focus on reducing costs for everyone throughshared quality goals, shared design responsibility, frequentdeliveries, long-term relationships and a total cost perspective.

4. Pull Systems is a detailed scheduling method whereby materialsare pulled only when they are needed. It means keeping thetime of producing parts as close as possible to the time whenparts are used, rather than making parts when capacity isavailable and pushing them through the process. Parts aremade when they are needed. The Pull System is, in a sense, aconfirming mechanism which demonstrates the success of allthe other elements of Lean Manufacturing production. Itreveals any "weak links" that need attention.

SystemsManagement

5

SHORTMANUFACTURING

CYCLES

PEOPLE MANAGEMENT

TECHNOLOGY MANAGEMENT

TOTALQUALITY

SYSTEMSMANAGEMENT

CONTINUOUSIMPROVEMENT

• STRUCTURED FLOW MANUFACTURING

• SETUP REDUCTION

• LEVEL LOAD & BALANCED FLOW

• PREVENTATIVE MAINTENANCE

• SUPPLIER PARTNERSHIPS

• PULL SYSTEMS

SYSTEMSMANAGEMENT

• LEVEL LOAD & BALANCED FLOW

• PREVENTATIVE MAINTENANCE

• SUPPLIER PARTNERSHIPS

• PULL SYSTEMS

• TOTAL EMPLOYEE INVOLVEMENT

• HOUSEKEEPING

• TOTAL QUALITY FOCUS• FITNESS FOR USE

• SMALL LOT PRODUCTION • CONTROL THROUGH VISIBILITY

LEANMANUFACTURING

Figure 5: Lean ManufacturingSystems Management

Page 7: Seven Steps to Lean Manufacturing - Buker, Incbuker.com/files/uploads/2010/01/LM.pdf · Seven Steps to Lean Manufacturing. ... because Lean Manufacturing is a strategy for achieving

When these three business areas – technology management, peoplemanagement, and systems management – are in balance and LeanManufacturing elements are in place in a manufacturing company,the result is a company that has accomplished major performanceimprovements and arrived at significantly lower costs andshortened lead times. (See Figure 7: Average Lean ManufacturingPerformance Improvements).

Lean ManufacturingAnchor Chart

AverageLean ManufacturingPerformanceImprovements

6

LeanManufacturing

SHORTCYCLES

PEOPLE TECHNOLOGY

TOTALQUALITYFOCUS

SYSTEMSCONTINUOUS

IMPROVEMENT

• STRUCTURED FLOW MANUFACTURING

• SETUP REDUCTION

• CONTROL THROUGH VISIBILITY

• LEVEL LOAD & BALANCED FLOW

• PREVENTATIVE MAINTENANCE

• SUPPLIER PARTNERSHIPS

• PULL SYSTEMS

• SMALL LOT PRODUCTION

• FITNESS FOR USE

• TOTAL EMPLOYEE INVOLVEMENT

• HOUSEKEEPING

• TOTAL QUALITY FOCUS

Represents the range of average reductions

100 90 80 70 60 50 40 30 20 10 0

PERCENT REDUCTION

30%-50%

40% -60%

20% - 40%

5% -20%

40% -60%

45% -55%

50% -75%

Material Cost

Manufacturing Costs

New Product Development Lead Time

Floor Space

RM & WIP Inventory

Quality Costs

Lead Time

Figure 7: Lean Manaufacturing Performance Improvements

Figure 6: Lean Manaufacturing Anchor Chart

Page 8: Seven Steps to Lean Manufacturing - Buker, Incbuker.com/files/uploads/2010/01/LM.pdf · Seven Steps to Lean Manufacturing. ... because Lean Manufacturing is a strategy for achieving

For most companies, implementing the Lean Manufacturingstrategy means developing an updated World Class companyculture that adopts startling new attitudes. For example, adopt thenew rule, "Problems are good news," because by acknowledgingthem they can be solved and improvement achieved.

These new attitudes that make up the Lean Manufacturing mindsetare grounded in skills that everyone must possess and shouldpractice if the company is to succeed at Lean Manufacturing. Theseskills - Watchfulness, Assertiveness, Commitment – must beapplied in every area of the company to search out and eliminate allwaste of time and resources from the total business process.

The concept of eliminating waste is central to Lean Manufacturing.It is both the motivation and objective of undertaking the LeanManufacturing strategy effort. Elimination of waste meanseliminating all activities that do not add value to the process.

Cost-Added vs. Value-AddedThe first step toward eliminating waste – or cost-added activity –isto be able to distinguish cost-added from value-added. In mosttraditionally organized manufacturing companies, cost-addedactivities account for approximately 70 percent of the total cost ofthe product. (See Figure 8: Value-Added vs. Cost-Added) In a LeanManufacturing environment, the goal is to reduce the cost-added sothat the value-added becomes 90 percent of the total cost – astrategy that lowers total cost significantly, enhancingcompetitiveness and profitability. (See Figure 9: Changing Cost-Added to Value-Added Ratios)

But before attacking cost-added activities, companies must be ableto recognize the enemy. And this is not easy because, over theyears, the cost-added activities in a business have become taken forgranted – become invisible – and are now assumed to be the way todo business. This is the mind-set that must change.

One method of restoring the cost-added focus in a company is toperform a short mental exercise. Imagine taking a can of red spraypaint and walking through the business. Anywhere an activity isfound that does not directly add value to the product, mark it withan X. Each red "X" signifies cost-added.

- It’s inventory sitting before or between operations.

- It’s material handling required to move material to and fromoperations.

- It’s material inspection and reworking rejected material.

Developing TheLean ManufacturingMind-set

7

Value Added = 30%

Cost Added = 70%

Figure 8: Cost Added = Waste

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

COSTADDED

VALUEADDED

VALUEADDED

COSTADDED

To

tal C

ost

Figure 9: Changing Cost-Added toValue-Added Rations

Page 9: Seven Steps to Lean Manufacturing - Buker, Incbuker.com/files/uploads/2010/01/LM.pdf · Seven Steps to Lean Manufacturing. ... because Lean Manufacturing is a strategy for achieving

There are basically seven wastes hidden in commonly acceptedoperations within a manufacturing company. (See Figure 10: SevenWastes)

1. Processing Waste How efficient are manufacturing operations?What is the purpose and value of each operation? Is there abetter, more efficient way to produce the product?

2. Delay and Waiting There are two categories of delay and waittime – those caused by schedules and plans, and those causedby manufacturing procedures. Both must be investigated forpotential improvement. Are there delays and wait time in thecompany for materials and people as products are produced?If there are, how can they be eliminated?

3. Over Production Is production exactly what is needed, or isextra being produced in an attempt to avoid manufacturingcosts such as additional setup? Remember, the LeanManufacturing objective is to produce exactly what is needed,even down to a quantity of one.

4. Motion Are there unnecessary, cost-added motions in themanufacturing process? An example of unnecessary motion ismoving work-in-process from one fixture to another for amanufacturing operation. Can such motions be reduced oreliminated from the manufacturing process?

5. Transportation How effectively are materials and productstransported through the manufacturing facility? In a LeanManufacturing environment, raw material is moved from thesupplier’s truck to the manufacturing line where it iscontinuously transformed into finished product. At the end ofthe line, it is packaged and shipped to the waiting customer. Ina Lean Manufacturing environment, travel time and distancetraveled by the product are minimized.

6. Inventory Some inventory is required. However, in the past,inventory was used to cover up underlying problems. In aLean Manufacturing environment, inventory can be greatlyreduced as problems and inefficiencies are identified andeliminated. As the continuous improvement philosophy takeshold, inventory turn rates of 50 to 100 times become possibleand desirable.

7. Scrap and Rework Scrap and rework confirm thatmanufacturing processes are not under tight control. As themanufacturing process improves, reliability and repeatabilityincrease and scrap and rework decrease.

Seven Typesof Waste

8

PROCESSING

DELAY & WAITING

OVER PRODUCTION

MOTION

TRANSPORTATION

INVENTORY

SCRAP & REWORK

$

$

$

$

$

$

$

Figure 10: Types of Waste

Page 10: Seven Steps to Lean Manufacturing - Buker, Incbuker.com/files/uploads/2010/01/LM.pdf · Seven Steps to Lean Manufacturing. ... because Lean Manufacturing is a strategy for achieving

Once wastes have been identified – the question becomes, how doyou attack it? The recommended method involves three steps. (SeeFigure 11: Three Step Rule to Eliminate Waste)

The first step is to reduce the traditional 70 percent cost-addedactivities by 50 percent. This step is usually easy to implementbecause the first 50 percent is easy to find. Taking corrective actionto achieve the improvement is accomplished by implementing LeanManufacturing tactics.

But don’t stop there. The next step is to reduce the remaining cost-added activities by another 50 percent. This step will be moredifficult than the first, but use the experience and results from thefirst step to perfect the second step.

Finally, reduce waste to 10 percent of its initial value. This thirdstep will take continuous effort over a longer period of time and willrequire involvement of the people most experienced and skilled atthe process and activities.

Throughout the improvement process, a company must avoidsettling for superficial solutions to cut waste. These usually presentthemselves in the guise of purchases rather than hard work.

For example, a factory is using a forklift to transport material inbatches. Seeking an improvement and wishing to eliminate thewaste in this operation, management invests in linking theequipment together with a conveyor system.

With the conveyor in place, the forklift is eliminated andtransportation may have become quicker, But, they are still doingtransportation, they still have work-in-process inventory, and theystill are producing work in batches.

In this instance, a conveyor is a superficial improvement. Afundamental improvement would have been to bring the equipmentcloser together and eliminate transportation – developing astructured flow. When working the Three-Step Rule, adhere to thediscipline of attacking waste fundamentally. Fundamentalimprovement only comes from eliminating waste.

Three-Step Ruleto Eliminating Waste

Step 1: Reduce by 50%

Step 2: Reduce again by 50%

Step 3: Make it 10% of Original

9

Step 1:

Step 2:

Step 3:

50%

50%2nd

3rd reduction

10%of original waste

RESULT:

90%reduction

Total of

Figure 11: Three Step Rule to Eliminating Waste

Page 11: Seven Steps to Lean Manufacturing - Buker, Incbuker.com/files/uploads/2010/01/LM.pdf · Seven Steps to Lean Manufacturing. ... because Lean Manufacturing is a strategy for achieving

In short, implementing Lean Manufacturing is hard work. But bytaking the seven steps it can be an exciting, creative and ultimatelyrewarding process for everyone in the company. Each step buildsupon the preceding step, and each must be completed successfullyin order to receive full Lean Manufacturing benefits and results.

The journey to Lean Manufacturing begins with top managementeducation which develops the leadership so that LeanManufacturing education can flow to everyone in the company.Without an effective education program, people cannot be expectedto learn and adopt the Lean Manufacturing philosophy andprocedures or to develop the Lean Manufacturing commitment andmindset. Education is the mandatory first step.

Leadership results from top management education by gettingmanagement actively engaged in the process of implementing aproactive program of continuous improvement. Through thisengagement, management develops the understanding, the vision,and the commitment to authorize the required resources.

A good Lean Manufacturing education program includes a varietyof educational offerings that are matched to the appropriate levelsof the company – from senior management to people on theproduction line. (See Figure 13: The Education Pyramid)

The first stage of education must be for top management and is bestaccomplished through a two-day Lean course. The objective of thecourse should be to provide a working overview of LeanManufacturing and establish a comfort with the changes ahead.

The second stage of education is for operations management down tofirst-line supervisors and support staff. Experience has shown thatthe most effective way to begin education of the operatingmanagement is through in-house education in at least two-dayformats.

The third stage of education must extend the vision to includeeveryone in the company, as everyone will be involved in theprogram. This education is best accomplished through videoeducation programs, where smaller groups of people can learn andinteract with the concepts of Lean Manufacturing as they relate to

The Seven Steps

Step 1: Educationand Leadership

10

7Education and Leadership

Company Assessment ofLean Manufacturing Elements

Implementation Plan

Pilot Implementation

SGIA Organization

Performance Evaluation

Company-Wide Transitionand Internalization

Figure 12: Steps toLean Manufacturing Implementation

Figure 13: The Education Pyramid

TOPMANAGEMENT

5-10 People

OPERATINGMANAGEMENT EDUCATION

10-25% Of All Employees

CRITICAL MASS EDUCATION75-100% Of All Employees

VIDEOProfessional. Org. DETAIL COURSES

Page 12: Seven Steps to Lean Manufacturing - Buker, Incbuker.com/files/uploads/2010/01/LM.pdf · Seven Steps to Lean Manufacturing. ... because Lean Manufacturing is a strategy for achieving

their own job environments. Video is cost-effective and flexible,allowing education to extend over a period of weeks, so peoplehave time to absorb the concepts and internalize methods into theirown environment. Instructors or facilitators for this stage mustcome from within the company.

The fourth stage of education must be presented to focused groups ofpeople on "how to" apply the Lean Manufacturing concepts to theirspecific jobs. For example, setup reduction techniques are taught tothose specifically involved in setups. Total quality focus practicesare taught to people specifically involved in the quality program.The recommended vehicle for this education is individual videomodules, supplemented by instructors with materials that adddetails specific to the company. Employees may even be asked tohelp develop these materials.

Reeducation is essential to reinforce concepts and practices learnedand to refresh memories periodically on the fundamentals and totalvision of the Lean Manufacturing philosophy. New employeesmust also receive education so that they have a commonunderstanding of the vision and practices of their colleagues. Thus,the education program must be planned, developed and invested inas an ongoing, permanent program – not a one-stop activity thatcan start and end in a matter of days. Continuous improvementmeans making a commitment to continuous education.

11

Page 13: Seven Steps to Lean Manufacturing - Buker, Incbuker.com/files/uploads/2010/01/LM.pdf · Seven Steps to Lean Manufacturing. ... because Lean Manufacturing is a strategy for achieving

Before a company introduces any element of Lean Manufacturinginto its manufacturing process, it should begin by assessing itsreadiness for Lean Manufacturing through a rigorous assessmentprocess. This formal assessment is organized into five sections andlooks to define current performance levels, areas of opportunity forimprovement and areas of superior performance. The five sectionsare:

1. Cultural awareness

2. Technology management issues

3. People management issues

4. Systems management issues

5. Education and training

The primary purpose of the assessment is to define the currentpriorities that will have the most positive impact on the company,product and operational method – the priorities that will bring thequickest payback in improvement.

The assessment process is a comprehensive review that requireseach company to answer individual questions about each of the 12Lean Manufacturing elements. Thus, the company emerges fromthe process with not only knowledge of where it now stands, but aLean Manufacturing action plan for the business.

Step 2: CompanyAssessment of LeanManufacturingElements

Sample LeanManufacturingAssessmentQuestions:

12

Evaluation

DateResponsibilityActionObservation

Site •� •� •� •�

A•�

EvidenceExpectationThere is good, effective communication between production shifts in theplant. (E.g. Equipment, quality problems, production schedules, etc. arecommunicated daily, and production areas are left "ready to go" by theprevious shift.)

3.2.8 RI F

Evaluation

DateResponsibilityActionObservation

Site •� •� •� •�

A•�

EvidenceExpectationThe plant is generally clear of all unnecessary materials or scrap and islesare clear of obstructions.

3.2.1 RI F

Company:

Location:

Audit Date:

3.2 Workplace Organization and Visual Management

Figure 14a: Sample Lean Manufacturing Assessment Questions

Page 14: Seven Steps to Lean Manufacturing - Buker, Incbuker.com/files/uploads/2010/01/LM.pdf · Seven Steps to Lean Manufacturing. ... because Lean Manufacturing is a strategy for achieving

13

Evaluation

DateResponsibilityActionObservation

Site •� •� •� •�

A•�

EvidenceExpectationThere is "a place for everything and everything in its place: "everycontainer, tool and part rack is clearly labeled and easily accessible to theuser. People using tools, parts, fixtures, quality gages, etc. know where tofind them.

3.2.4 RI F

Evaluation

DateResponsibilityActionObservation

Site •� •� •� •�

A•�

EvidenceExpectationUpdated display boards containing job training, safety, operatingmeasureables, production data, quality problem and counter-measureinformation are readily visible throughout the plant.

3.2.5 RI F

Evaluation

DateResponsibilityActionObservation

Site •� •� •� •�

A•�

EvidenceExpectationA radar chart/spider diagram chart displays each area's workplaceorganization performance.

3.2.6 RI F

Evaluation

DateResponsibilityActionObservation

Site •� •� •� •�

A•�

EvidenceExpectationCheck-sheets describing and tracking the top defects are posted and up todate at each workstation. (E.g., Each operator is aware of the key qualitypoints and defect history of the process they are doing.)

3.2.7 RI F

Evaluation

DateResponsibilityActionObservation

Site •� •� •� •�

A•�

EvidenceExpectationLines on the floor clearly distinguish work areas, paths, and materialhandling isles. Signs clearly identify production, inventory staging, andmaterial drop areas.

3.2.2 RI F

Evaluation

DateResponsibilityActionObservation

Site •� •� •� •�

A•�

EvidenceExpectationA daily checklist exists in each work center that identifies housekeepingactivities to be performed.

3.2.3 RI F

Figure 14b: Sample Lean Manufacturing Assessment Questions

Sample LeanManufacturingAssessmentQuestions:

Page 15: Seven Steps to Lean Manufacturing - Buker, Incbuker.com/files/uploads/2010/01/LM.pdf · Seven Steps to Lean Manufacturing. ... because Lean Manufacturing is a strategy for achieving

Once the assessment is complete, an implementation plan must beestablished to schedule detailed actions. The plan should stateactivities, the status of each activity, the person responsible for eachactivity, the start date, and the expected completion date. Theresources required to complete each task should also be specified.(See Figure 15: Lean Manufacturing Implementation Plan)

In structure, the implementation plan should consist of sections thatparallel the sections of the assessment. Beyond this, eachcompany’s implementation is highly individualized – like a mapcharting its terrain and indicating its specific path of continuousimprovement.

The implementation plan becomes a working document for theproject team and senior management. It should be brought to everyproject team meeting, and progress should be recorded, datesrevised, completed items marked off, new items added … itbecomes a living, breathing document of the Lean Manufacturingproject.

Step 3:TheImplementation Plan

14

Lean Manufacturing Implementation Plan

Activity StatusPerson

ResponsibleStartDate

CompletionDate

Figure 15: The Lean ManufacturingImplementation Plan

Page 16: Seven Steps to Lean Manufacturing - Buker, Incbuker.com/files/uploads/2010/01/LM.pdf · Seven Steps to Lean Manufacturing. ... because Lean Manufacturing is a strategy for achieving

A pilot implementation is usually required to begin a LeanManufacturing effort. This process permits careful analysis andmanagement of new activities before company-wide changes areinitiated. Hidden problems often surface when new plans are putinto place, and a pilot implementation leads to quick identificationof problems and development of effective solutions before theyimpact company-wide production conditions.

The pilot must be a carefully planned "tryout" of any one of anumber of Lean Manufacturing activities – establishing a new lineflow in manufacturing, introducing a new setup reductionprocedure, or trying a different approach to shorten the newproduct design cycle. The objective is to test the new activity undercontrolled operating conditions to make sure it works as expected.

One of the most successful Lean Manufacturing pilot situations is toset up a "factory within a factory," focusing on a product line thatcan stand alone in the shop – one that occupies a relatively smallamount of floor space, uses materials that are not shared with otherproduct lines, and has processes and work centers that do not seedemand from other product lines. This potential pilot may evenhave dedicated supervision and support services; as manycompanies find, dedicated supervision and support may berequired in the pilot effort. In the isolation of this pilot situation,Lean Manufacturing concepts can be implemented without the riskof disrupting all production operations. (See Figure 16: Ideal LeanManufacturing Pilot Program)

Once the success of the pilot is secure, it can be shared with theremainder of the plant. Participants in the pilot can be temporarilyor permanently transferred to other departments to help speed theevolutionary expansion of the Lean Manufacturing principles. Likeseeds nurtured in the pilot project, they can be planted throughoutthe company to make Lean Manufacturing success grow.

Additional tips for implementing a pilot program include thefollowing:

1. Limit the scope of the pilot so problems and unexpectedconditions can be easily identified and corrected.

2. Limit the pilot to a short, first phase (60 to 90 days) and testsolutions to the identified problems as a second phase.

3. Develop written expectations, goals and objectives for the pilot,record daily results and measure them against expectations.

4. Try to identify and experience all operating conditions beforeimplementing the pilot.

Step 4: PilotImplementation

15

Figure 16: Ideal Pilot Program

SUPERVISION

ENGINEERING

MATERIALS

MAINTENANCE

HOURLY WORKERSPILOT

PROGRAM

Page 17: Seven Steps to Lean Manufacturing - Buker, Incbuker.com/files/uploads/2010/01/LM.pdf · Seven Steps to Lean Manufacturing. ... because Lean Manufacturing is a strategy for achieving

5. Use a combination of people from production, management,engineering and other required specialties, creating teams witha mixture from these groups. The objective is to train linepeople in new methods while operating in the newenvironment.

6. Fix all of the problems as quickly as possible and integrate thesolutions into standard operating procedures.

7. Get commitment from the line people and management that thenew process will work, then implement the new process intomainstream operations.

8. The pilot program should be supported fully to insure itssuccess.

Caution: If the pilot program is insignificant, then the resultsand improvements will be considered insignificant. Picksomething significant.

16

Page 18: Seven Steps to Lean Manufacturing - Buker, Incbuker.com/files/uploads/2010/01/LM.pdf · Seven Steps to Lean Manufacturing. ... because Lean Manufacturing is a strategy for achieving

Small Group Improvement Activities (SGIA) are the vehicle forgetting everyone involved in the Lean Manufacturing continuousimprovement process. Most problems can be uncovered, and themost effective solutions to those problems can be designed byemployees in the work area. SGIA groups channel the brainpowerof the people into a powerful problem solving tool. They alsopromote the basic change in mind-set – watchfulness, assertiveness,commitment – that must take place for the Lean Manufacturingstrategy to work. The changes must grow slowly, reinforced by thatsteady stream of small successes that will be experienced by thegroup.

The following are steps for developing and managing SGIA:

1. Provide the required leadership and education in thebeginning, from the beginning.

2. Limit the scope, objectives and time of each group meeting to afocused topic or process and aim at achieving targeted results.

3. Develop a formal method of measuring SGIA performance.Results or resolution of group problems must be identifiedearly in the life of each group.

4. Make sure every group is successful. Do not let groups tacklethe most difficult problem as their first assignment. Let themwork on a useful and straightforward project. The importantthing initially is success. Measure performance improvementscarefully the first few weeks and provide additional resourcesand support to help get past initial problems.

Step 5: SGIAOrganization

17

Page 19: Seven Steps to Lean Manufacturing - Buker, Incbuker.com/files/uploads/2010/01/LM.pdf · Seven Steps to Lean Manufacturing. ... because Lean Manufacturing is a strategy for achieving

Measuring and communicating improvement is essential tonurturing the growth of commitment to – and the success of – theLean Manufacturing project. Performance evaluation is themanagement process for seeing that the improvement plan isworking and that the objectives and results are being reached.Performance evaluation can be applied to many levels of thebusiness process – daily operations, the Lean Manufacturingimplementation process, specific projects, the project team and thetotal business operation.

In the Lean Manufacturing implementation environment, firstestablish the appropriate performance measurements anddetermine the current performance level of the company on each.(See Figure 17: Lean Manufacturing Performance or BaselineMeasurements) Then, post the performance and continue posting ithourly, daily, weekly or monthly – picking the frequencyappropriate to the measurement – to observe and communicateimprovement in the organization. If expected results do not occur,have a mechanism for analyzing the situation and taking correctiveactions to get back on plan. (See Figure 18: Performance EvaluationLoop)

The success of continuous improvement, Lean Manufacturing, andmanufacturing excellence depends on how well performanceevaluation is constructively put to use.

Step 6: PerformanceEvaluation

18

Establish AggressiveEarly On Objectives:

CYCLE TIMES

OUTPUT TARGETS

PRODUCTIVITY

QUALITY

SETUP REDUCTION

Monthly Norms To Review Progress

Figure 17: Lean Manufacturing orBaseline Performance Measurements

Figure 18: Performance Evaluation Loop

PERFORMANCE EVALUATION LOOP

DefineObjectives

EstablishA Plan

MeasurePerformance

Take CorrectiveAction

Page 20: Seven Steps to Lean Manufacturing - Buker, Incbuker.com/files/uploads/2010/01/LM.pdf · Seven Steps to Lean Manufacturing. ... because Lean Manufacturing is a strategy for achieving

As improvements are achieved, they must be internalized and madepart of the normal daily routine … the way the company doesbusiness. The focus is on doing things better and more efficiently,constantly, continuously … continuous improvement. Oncelaunched, it is a never-ending process, a forever commitment. Thereis no turning back.

And everyone must understand that – from top management toeach person within the organization. Success depends on repeatingmany of these steps over and over as new phases of LeanManufacturing are implemented. As old tasks on theimplementation are completed, new tasks are added. As one pilotprogram or process is accomplished, another is developed to add anew element. As higher performance is reached on onemeasurement, focus shifts to improving another, and measurementsare tightened.

The process can be maximized if the following steps are observed:

1. Provide a clear understanding of the objectives to everyone inthe company from the beginning.

2. Communicate results and activities frequently, perhaps likesome companies do, in a daily newsletter.

3. Make sure everyone understands that this project has a highmanagement priority. This must be demonstrated with actions,not just words.

4. Involve as many people as possible in the program.

5. Measure performance and progress every day, and whenperformance falls below expectation, take action to solve theproblems.

6. Formally adopt the new way of doing business as the only wayto do business, and continue implementing new methods andprocedures as rapidly as feasible.

Step 7: Company-Wide Transition andInternalization

19

Page 21: Seven Steps to Lean Manufacturing - Buker, Incbuker.com/files/uploads/2010/01/LM.pdf · Seven Steps to Lean Manufacturing. ... because Lean Manufacturing is a strategy for achieving

In many businesses, survival now depends on the ability tocontinuously improve products and manufacturing processes.

Pressure from customers along with domestic and internationalcompetitors will continue to intensify. Markets, products andmanufacturing methods continue to rapidly change. Companiesmust constantly investigate innovative ways to manufactureproducts at lower costs, at consistently higher quality, with morereliable delivery and with ever-increasing responsiveness to theircustomers’ needs.

At Buker, Inc. we see top companies around the world focusingtheir management resources on eight areas of improvement:

• Designing for Manufacturability Design products for thecustomer that exceed the customer’s needs at required qualitylevels, with ease of manufacturing and assembly as a foremostconsideration.

• Shortening New Product Introduction Cycles New products mustbe researched, designed, developed and brought to market inless that half the time it currently takes, and then in half of thattime.

• Increasing Inventory Turnover World Class inventory turns willbe 40 … 70 … 100 times.

• Shortening Manufacturing Lead Times The business cycle will beexpressed in hours or days, not weeks or months.

• Focusing on Total Quality World Class quality will be measuredin parts per million for components … zero defects forproducts.

• Enhancing Customer Service By increasing flexibility, WorldClass companies will deliver quality products or services aspromised at exactly the time the customer requires it.

• Eliminating Waste/Cost Material cost will become a largercomponent of total product costs: labor cost will continue to bea smaller percentage. All activities that do not add value to theproduct add cost and will be targeted for elimination.

• Minimizing Organizational Levels World Class companies willhave fewer layers and broader technical competence.

Lean ManufacturingSteps …To Stay In Pace With Today’s World

20

Page 22: Seven Steps to Lean Manufacturing - Buker, Incbuker.com/files/uploads/2010/01/LM.pdf · Seven Steps to Lean Manufacturing. ... because Lean Manufacturing is a strategy for achieving

The Seven Steps to Lean Manufacturing provide a meaningful wayto organize and direct the process of change in a company strivingto be World Class. Yes, change can seem threatening, but everyonein the company must learn to recognize it as a healthy and naturalprocess. Just like species, companies that don’t change riskextinction – particularly in today’s highly competitive, increasinglyglobal marketplace.

Does your company aspire to adopt the Lean Manufacturingstrategy to achieve World Class Manufacturing Performance? Areyou looking for ways to reduce cost and eliminate waste to becomemore strategic competitors? Are you ready to assess the currentstate of your business and create an action plan for change?

If your answer to any or all of these questions is "yes," theprofessional staff at Buker, Inc. would welcome the opportunity totalk with you about your plans, answer questions and assist you inyour pursuit of manufacturing excellence.

Please feel free to call to discuss your situation or to request moreinformation from our company.

Conclusion:

21