#lean implementation

Lean is the term which has core philosophy of doing more and more with less and less.  Lean System can also be referred as FIT without Fat. Origin of Lean is from Manufacturing set up in Japan which had always valued its scare resources which is primarily space. Thought process on working with less space happened when Taiichi Ohno, the then shop-floor supervisor of engine manufacturing plant went to his boss and asked for more space to store inventory.  Having already reeling under less resources of money and space, Taiichi Ohno was asked to explore how the inventory can be reduced so that it needs less space. This thought has triggered a big revolution in the manufacturing arena in the form of Toyota production System which is popularly known as Lean manufacturing.

Unlike mass production where economics of scale, low variety and high volume were the norm. Japanese companies had to be managed with very low volume and high mix production capabilities in their early years of establishing.

Increase in production is possible through productivity improvement.  For this, Lean manufacturing works in increasing value and reducing waste.  In non-lean environment, Value addition of any activity in a value stream – Customer order to delivery will be less than 5%.  Value is considered under the following conditions.

Change of shape,

Change of Size

Change of properties

Any thing else the customer is willing pay.

Even in the above condition, minimizing waste is one of the focus area to improve productivity. From the lean perspective, waste is anything which does not add Value.  This will be typically 95% of the time which is shocking but reality in most non-lean companies. This is due to result of having the following conditions.

Overproduction :

Inventory:

Overprocessing:

Defects:

Transportation:

Motion:

Producing before the time of need or more quantity than desired for next operation (both internal and external customer) to consume. One of the common reasons for overproduction is due to perceived notion of the need for high batch quantity where change-over for product A to product B is more.

Keeping RM, WIP or Finished goods more than the required quantity or getting before the required time.  One of the common for excess inventory is also due to overproduction.

Doing an activity more than needed or higher than what the customer is willing to pay.

Not doing things first time right.  This results in re-work and eventually rejected if not handled well.  Defect increases the cost of poor quality.

Movement of materials from one station to the other station. This increases the time for value addition and does not help in continuous flow.

Where operators are needed to move from one station to other during which there is no value addition takes place.  This could be due to lack of ergonomic workstations and effective storage of essential tools and materials.

Lean manufacturing addresses the above issues through its time tested Way of thinking  also called Lean Thinking. Some of the lean solution for above issues of waste is by thorough elimination. When there is no waste, rest is value addition.  Value addition leads to improved productivity.

To avoid overproduction, Lean thinking has solution in the form of applying Pull System as against push system followed in tradition manufacturing. The pull System calls for one station pulling material from the previous station with defined set of rules.  A work station can produce only what its immediate customer can consume .. i.e. Can process further. Such system can be seen in Lean food chain such as Mc Donald’s where they produce only against order or keep very small quantity FG where they are certain that those which are produced by them will get consumed in matter of minutes.

In order to minimize costs associated with inventory, lean companies focus on Just in time procurement and usage of Kanban based inventory management for all runner product raw materials.  Also, ordering is done in such a way that right quantity, right mix is made available when it is needed. Supplier development is one of the concepts which is widely used for collective growth. Milk run, Vendor managed inventory, Jumbiki are some of the other concepts used by Lean companies.

In order to minimize the over processing, various point kaizens are introduced at the work place which is also called Gemba.

Defects prevention is worked out through poka-yoke or mistake proofing, skill development through TWI – Training within Industry concepts.  Elimination of overproduction also helps in reduction of defects.

Transportation is reduced through introduction of concepts such as Cellular Manufacturing, continuous flow, lean layouts and single piece flow.  High amounts of discipline, standard operating procedures are to be followed to make the systems successful.

Motion waste is minimized through effective application of Applied 5S, Visual Management and point of use storage. Ergonomic workstations also help in minimizing the waste of motion. Low cost automation and point kaizen further improve the value addition thereby reduction of motion waste.

In order to get full benefits in realizing no waste ideal, there are many culture factors which are to be aligned through Total Employee involvement or TEI.  There are many other complimenting methodologies such as structured TPM – Total Productive Maintenance methodologies are needed to be deployed to make improvement in productivity through effective machine availability and machine performance.

Seven Steps Business Transformation Systems is helping organisations in their quest for improving productivity through their unique methodologies. We use combination of TPM, TQM, Lean, Six Sigma and TOC concepts apart from soft skills, change management, top management involvement and bottom-up team support. Setting Long term Vision and Strategies to achieve the same

Setting up right organization structure with clear roles and responsibilities

Improvement of Sales

Facilitation in improving On time Deliveries

Facilitation in implementation of Visual Workplace

Reduction of Defects (Cost of poor quality)

Reduction of Manufacturing Lead time

Improved and measurable Teamwork.

Improved responsiveness to customers.

Effective utilization of machines with minimal down time.

Optimize inventory

Release space/ capacity for future expansion.

Improve Morale of employees

Release Quality time of Top management to focus on growth and long-term objectives.

End results of implementation of Excellence initiatives are:

Improved productivity

Improvement in MTBF and MTTR.

Improved Delivery Performance.

Reduced cost of poor Quality

Improved involvement of people across all levels.

Reduction in customer complaints

Improved responsiveness to the customer

Improved business

Improved profits.

In case you are looking for expert guidance to support your organisation, we will be glad to associate with your company.

We have following expertise in the form of

Lean manufacturing consultants

TPM Consultants

TQM Consultants

TOC Consultants

Six Sigma Consultants

A roadmap will prove invaluable to a company during its lean journey. Here, this  lean transformation roadmap is constructed through five phases including the areas of concern—from education to infrastructure.

Some of the considerations influencing the path taken include:

Where a company is before it begins lean transformation;

What conditions or issues it is dealing with through each phase of the trip; and

The company’s willingness and ability to adapt and change based on the actual experiences and learning of its workers.

The lean transformation roadmap includes five phases, but the lines between each phase are typically blurred, and the characteristics can blend together.  It is important to understand that the roadmap can be viewed from the department, plant or company level.  One part of an organization might be at one phase, while other parts, of even the entire organization, are at a different phase.

THE TRANSFORMATION ROAD MAP

As previously mentioned, the roadmap  consists of five phases with common elements, but different approaches within each phase ( see figure 1). The roadmap will help assess what phase a company is in on its lean journey and what needs to be considered at each phase.

Each phase focuses on some common elements; education, application, communication, infrastructure, time frame tools and methodology, and expected results.

Phase Zero: Exploration

Not all businesses need to experience the exploration phase.  Those organizations already committed to lean often skip it and proceed directly to Phase One. Typically, leadership and / or management initiates Phase Zero by trying to understand more about lean, how it fits into the organization, what challenges it may pose and, most significantly, what payback it may offer.

Education

In Phase Zero, an organization develops awareness and general understanding of the application and benefits of lean.  An organization may also assess its current state to identify its lean education gap.

Application

A company latches onto a particular tool, gives it a try, and fails.  The tool might have failed because of poor implementation or simply because it was the wrong tool for the organization.

Communication

There is no formal communication during Phase Zero, but it is likely that a “rumor mill” emerges from the exploration.  Leaders should be prepared to respond to questions about the company’s plans for lean and to allay any fears about its implications.

Infrastructure

Essentially there is no lean infrastructure in Phase Zero.

Time Frame :  0 to Approximately 6 MonthsPhase One: Building the foundation

Phase one assumes that a company has explored lean as outlined in Phase Zero, and a decision has been made to move forward with lean implementation. In Phase One, a company’s leaders will also begin to understand and apply tools to uncover the true current state and build tension in the organization.

Education

Those who take critical leadership and implementation roles in this early state develop a deep understanding and appreciation of lean’s rules and principles.

Application

Application is an important component of Phase One as well as all subsequent phases.  Here, organizations typically focus on one or many small areas

Communication

An organization in Phase One uses communication to build a “burning platform,” a clear and powerful reason to change, and spread the message of lean’s importance and value.

Infrastructure

A company has an infrastructure to manage its business.  It also needs to develop an infrastructure to manage lean implementation.

Time Frame: Approximately 3 – 9 MonthsPhase Two: Expanding with Tools and Deeper Thinking

Phase Two expands lean to a larger part of the organization and burrows deeper into lean tools and lean thinking.  The focus is now on critical business issues, not just localized issues and opportunities.

Education

In Phase Two, an organization needs to expand its lean education efforts. It should build deeper skills and across a wider cross-section of the company to deal with tough problems and capitalize on bigger opportunities

Application

The small localized areas that have already started on the lean journey should move to the next plateau by applying more advanced lean tools and developing mechanisms and structures to sustain performance gains

Communication

A company should use communication of focus on lean’s tangible results and share best practices.

Infrastructure

During Phase Two, the major public gas and electric utility company developed its lean specialists and provided support from a centralized group.

Time Frame: Approximately Six Months to two YearsResults

Phase two focuses 25% upon building knowledge and 75 % on performance results. A company should expect some breakthrough results that start to move the organizational performance needle.

Phase Three: Integration and Reinforcement

In Phase Three, a company integrates lean into every aspect of its business. This phase assumes a company has stabilized lean processes and behaviors.

Education

In Phase Three, everyone in the organization should have a basic level of understanding, a common language, and a fundamental skill set.

Application

During Phase Three, organizations should incorporate application of lean into all areas and all functions of a department or location and validate it with measurable results.

Communication

There is more informal person-to-person or person-to-team communication during Phase Three.

Infrastructure

Depending on resources, a company relies on either a centralized lean group or local lean specialists for its internal infrastructure.

Time Frame : Dependent on VariablesResults

At the end of Phase Three, an organization is building upon already-found gains. It is experiencing major breakthroughs and its performance is moving forward at a constant pace.

Phase Four: Building Momentum

When an organization reaches Phase Four, there is some danger it may fail to recognize lean is a journey that is never complete. Because the company experiences constant breakthroughs in performance, its leaders and workers may become complacent and even arrogant.

Education

Education is the cornerstone upon which lean will continue to grow and develop. It helps keep everyone sharp and focused, and serves as a beacon for ideal states in every aspect of a company.

Application

Lean is now not only integrated into every day-to-day activity in the organization, but is fully integrated into every decision-making thought process.

Communication

In Phase Four, a company should be communicating about lean externally with suppliers, customers, financial institutions – even the community.

Infrastructure

At this point in the journey, lean skills and infrastructure are embedded in the organization of every business unit, regardless of the service or product provided.

Time Frame : OngoingResults

To understand LEADS, first we need to understand LEAN. Lean is actually to help an organization improve for the future need, as it faces new competition and changing technological conditions. Lean, done right, makes an organization more profitable and adaptable to change as it occurs. Lean gives an organization the continuing opportunity to fulfill requirements of its customers over time. Good performance is relative. Many organizations lack communication internally, this lacking leads to a very poor work culture. If that’s all you compete against, then performance is really needed to be taken seriously. Customers expect great, not good, performance. If we are truly customer focused, then the reason we do Lean is to better satisfy customers.

Lean management is a better way to increase economic growth, which organization may face time to come. Continual improvement pays for things that an organization needs or what it must do for its interested parties. The payoff will be low and slow if leaders fail to recognize Lean as a solution to information flow problems, and which also has the knock-on effect of improving human health in organizations.

LEADS is an innovative and engaging program under PMG Consultants, this program is derived after lots of enriched experience. In the last few years ILO (International Labour Organization) has initiated a SCORE program to improve the productivity of MSME across the world. PMG Consultant is lucky to be a part of the SCORE program and has helped many small and medium enterprise to grow by improving productivity.

Based on the experience of mechanical engineer and industrial engineers, the program is more refined by PMG consultants and developed in the form of Learn-Engage-Adapt-Demonstrate-Sustain, LEADS. PMG being a lean consultant or more specifically productivity consultant aims at improving organization by using various industrial tools.

PMG’s Approach for LEADS.

Tools Used:

During the implementation of LEADS for continual improvement, we use various industrial tool for statistical approach during the entire phase of the program. Some of the used tools are:

Time & Motion Study: Method for identifying and recognizing employee productivity standards in which (a) a integrated task is broken into small and simple steps, (b) the sequence of motions performed by the employee in completing those tasks is carefully observed to detect and eliminate redundant or wasteful motion, and (c) precise time taken for each correct movement is measured.

5S: 5S is a system for organizing spaces so work can be performed efficiently, effectively, and safely. This system focuses on putting everything where it belongs and keeping the workplace clean, which makes it easier for people to do their jobs without wasting time or risking injury.

Kaizen: Kaizen is a Japanese(Nihongo) word depicting “change for the better” or “continuous improvement.” It is a Japanese business philosophy regarding the processes that continuously improve operations and involve all employees. Kaizen aims improvement in productivity gradually and methodically. The philosophy of kaizen includes a wide range of ideas. It involves making the work environment more efficient and effective by creating a team atmosphere, improving everyday procedures, ensuring employee satisfaction, and making a job more fulfilling, less tiring, and safer.

Kanban: Kanban is a visual system for managing work as it moves through a process. Kanban visualizes both the process (the workflow) and the actual work passing through that process. The goal of Kanban is to identify potential bottlenecks in your process and fix them so work can flow through it cost-effectively at an optimal speed or throughput.

Control chart: The control chart is a graph used to study how a process changes over time. Data are plotted in time order. A control chart always has a central line for the average, an upper line for the upper control limit and a lower line for the lower control limit. These lines are determined from historical data. By comparing current data to these lines, you can draw conclusions about whether the process variation is consistent (in control) or is unpredictable (out of control, affected by special causes of variation). This versatile data collection and analysis tool can be used by a variety of industries and is considered one of the seven basic quality tools.

Leadership

Leader of the Organization opting for LEADS shall assume responsibility for making the team ONE and strategically blend the continual improvement program, as the ultimate aim of any management system is to improve the performance of the organization, both in terms of business and strategy. While building LEADS base a good leader shall demonstrate a high level of understanding of the issues and build management system in the strategic interest of the organization.

PMG’s Factor