Tool Design

Lean
Manufacturing
Tools, Techniques, and How To Use Them
Applying Manufacturing Execution Systems
by Michael McClellan
Back to Basics: Your Guide to Manufacturing Excellence

By Steven A. Melnyk R.T. Chris Christensen
Enterprise Resources Planning and Beyond: Integrating Your Entire rgani!ation

by Gary A. Langenwalter
ERP: "ools# "ec$ni%ues# and Applications for Integrating t$e Supply &$ain
by Carol A. Ptak with li Schragenhei!
Integral 'ogistics Management: Planning and &ontrol of &ompre$ensi(e Business Processes

by Pa"l Sch#nsleben
In(entory &lassification Inno(ation: Pa(ing t$e )ay for Electronic &ommerce and *endor Managed In(entory
by R"ssell G. Broeckel!ann
'ean Manufacturing: "ools# "ec$ni%ues# and +o, "o -se "$em

by $illia! M. %el&
Macrologistics Management: A &atalyst for rgani!ational &$ange

by Martin Stein an& %rank 'oehl
Restructuring t$e Manufacturing Process: Applying t$e Matrix Met$od

by Gi&eon (alevi
Supply &$ain Management: "$e Basics and Beyond

by $illia! C. Co)acino
The St. Lucie Press/API S Series on !esource Management

"itles in t$e Series
Ale"andria, #irginia
"$e St. 'ucie Press/API&S Series on Resource Management
St. 'ucie Press
$oca !aton % London &ew 'or( % )ashington, *. .
+,
)ILLIAM M. -.L*
Lean
Manufacturing
This +oo( contains information o+tained from authentic and highl, regarded sources. !e/rinted material is quoted with /ermission, and sources are indicated. A wide 0ariet, of references are listed. !easona+le efforts ha0e +een made to /u+lish relia+le data and information, +ut the author and the /u+lisher cannot assume res/onsi+ilit, for the 0alidit, of all materials or for the consequences of their use. &either this +oo( nor an, /art ma, +e re/roduced or transmitted in an, form or +, an, means, electronic or mechanical, including /hotoco/,ing, microfilming, and recording, or +, an, information storage or retrie0al s,stem, without /rior /ermission in writing from the /u+lisher. The consent of St. Lucie Press does not e"tend to co/,ing for general distri+ution, for /romotion, for creating new wor(s, or for resale. S/ecific /ermission must +e o+tained in writing from St. Lucie Press for such co/,ing. *irect all inquiries to St. Lucie Press, 1222 &.). or/orate $l0d., $oca !aton, -lorida 33435. "rademark 0otice: Product or cor/orate names ma, +e trademar(s or registered trademar(s, and are used onl, for identification and e"/lanation, without intent to infringe. 6 1225 +, )illiam M. -eld &o claim to original U.S. 7o0ernment wor(s International Standard $oo( &um+er 589:44481;:8< Li+rar, of ongress ard &um+er 22829;5=3 Printed in the United States of America 5 1 3 4 9 = : > ; 2 Printed on acid8free /a/er
'i1rary of &ongress &ataloging2in2Pu1lication 3ata
?????????????????????????????????????????????????????????????????????? -eld, )illiam M. Lean manufacturing @ tools, techniques, and how to use them / +, )illiam M. -eld. /. cm. Includes +i+liogra/hical references A/. B and inde". IS$& 589:44481;:8< Aal(. /a/erB 5. Production management. 1. osts, industrial. 3. Production management C ase studies. I. Title. TS599 .-4;>9 1222 =9>.9Cdc15 22829;5=3
3edication
This +oo( is dedicated to m, four sons C $enDamin, &athan, Eaco+, and Samuel. Than( ,ou for ne0er letting me forget that I am ,our dad. 5
&ontents
Part I. 3escription of 'ean Manufacturing &$apter 6. 'ean Manufacturing: A 7+olistic8 *ie, ..................................... 3 &$apter 9. 'ean Manufacturing Approac$ ................................................... : Part II. :i(e Primary Elements &$apter ;. rgani!ation Element ................................................................ 13 &$apter <. Metrics Element .......................................................................... 39 &$apter 4. 'ogistics Element ........................................................................ 49 &$apter =. Manufacturing :lo, Element .................................................... =5 &$apter 5. Process &ontrol Element ............................................................ :; &$apter >. Sustaining t$e &$ange ................................................................ ;5 Part III. Putting It All "oget$er &$apter ?. Setting t$e Stage .......................................................................... ;9 &$apter 6@. +o, It Begins ............................................................................ ;; &$apter 66. "$e Game Plan ........................................................................ 525 &$apter 69. 'ean Assessment ..................................................................... 529 &$apter 6;. &urrent State Gap ................................................................... 555 &$apter 6<. :uture State 3esign ................................................................ 55; &$apter 64. 3eployment ............................................................................. 535 &$apter 6=. "$e Results .............................................................................. 53; >
Lean Man"*act"ring+ Tools, Techni-"es, an& (ow To .se The!
Part I*. &ase Studies &ase Study A: perations Redesign Program .......................................... 543 &ase Study B: Aai!en E(ent2Based 'ean Program ................................... 599 &ase Study &: +ig$2*olume2:ocused :actory ProBect ............................ 5=9 &ase Study 3: Aai!en E(ent2Based :ocused :actory Pilot
..................... 5:9 &ase Study E: Assem1ly Production -nit ProBect .................................... 5>9 &ase Study :: +ig$2*olume and 'o,2*olume &ell ProBect .................... 5;9 Glossary ........................................................................................................ 12: References ..................................................................................................... 15; Index .............................................................................................................. 113
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Preface
This +oo( was written in order to gi0e the general manufacturing /ractitioner a reference guide +, which to lead the successful design and de/lo,ment of a lean manufacturing /rogram. It is for those indi0iduals who ha0e either tried a lean manufacturing im/lementation and recei0ed undesira+le results or ha0e +een wor(ing at it a while and do not reall, (now what to do ne"t. F0er the ,ears, I ha0e +ecome more and more /ragmatic in m, a//roach to lean manufacturing. I am not a /urist when it comes to methodolog,. In fact, in this +oo( I am sharing with ,ou information +ased on m, own /ersonal research, true8life e"/eriences, and lessons learned through the im/lementation of lean /rinci/les within a num+er of com/anies. It is this +road8+ased e"/erience that has allowed me to de0elo/ such a /ragmatic a//roach. M, e"/erience has taught me that, although a s/ecific /hiloso/h, ma, wor( well with one /articular /roDect or com/an,, it ma, not wor( as well uni0ersall, across other o/erations. The information, time frames, and methodologies contained within this +oo( are geared /rimaril, for o/erations that ha0e 322 to 922 em/lo,ees. The content was written for an audience o/erating at the le0el of /lant manager, /roDect manager, or manufacturing manager within a +usiness, although most certainl, schedulers, /lanners, industrial engineers, and firstline su/er0isors can also +enefit from this material. The +oo( /ro0ides tools and techniques that can +e used for +oth high80olume/low8mi" and low0olume/ high8mi" /roduct en0ironments. Although man, of the techniques are designed for discrete unit manufacturing o/erations, those in the /rocess industries could utiliGe man, of the /rinci/les /resented here, as well. I realiGe that there are some of ,ou who o/erate within an en0ironment that does not require ,ou to Dustif, ,our /osition on lean manufacturing e0er, ste/ of the wa, and that such an en0ironment will acce/t the need for 6@
lean management +ased on faith. This +oo( was not written for ,ou. This +oo( was written for ,our colleagues C those who need to Dustif, their /osition e0er, ste/ of the wa, and must constantl, +attle Hhurdle managementI to de/lo, their lean /rograms. 'ou (now who ,ou are and ,ou (now what I am tal(ing a+out. This +oo( was written with ,ou in mind. &ow, one does not learn how to +e lean Dust from reading a +oo(. It is through actual hands8on im/lementation that one learns what does and does not wor( in most situations. It is out on the sho/ floor where /ractical meets theor,. It is in the actual wor( en0ironment where one learns that to +e successful it is more im/ortant to ha0e a clear understanding of how these
techniques wor( than a 0ague understanding of what the technique is. This +oo( has +een di0ided into four /arts. Part I /ro0ides an e"/lanation of why a holistic a//roach to lean is so +eneficial in securing sustained im/ro0ementJ it /ro0ides an o0erall 0iew of what to do. The /ur/ose of Part II is to furnish the reader with an understanding of the conce/t of the -i0e Primar, .lementsJ it e"/lores in detail se0eral as/ects of each of the fi0e elements. Part III was written in the form of a stor, to de/ict actual use of the techniques from the ince/tion of a /roDect to im/lementation in the factor,J it hel/s the reader see how and when these /rinci/les are a//lied as /art of a lean manufacturing /rogram. Part I# /resents case studies of si" different com/anies that ha0e ta(en on the challenge of changing their +usinesses and descri+es how the com/anies ha0e de/lo,ed lean manufacturing within their facilities. .ach case stud, was designed to re0eal a different as/ect of im/lementing lean manufacturing within an o/eration. The entire +oo( attem/ts to /ro0ide insight as to the choice and use of a//ro/riate tools for assessment, anal,sis, design, and de/lo,ment of a successful lean manufacturing /rogram. Although it does not co0er e0er, lean manufacturing as/ect, issue, or situation, it does offer a road ma/ that can guide a com/an, toward the de0elo/ment of a lean manufacturing en0ironment. F0er the ,ears, I ha0e read a+out, witnessed, and heard of a great man, im/lementations that ha0e neither achie0ed their intended goals nor sustained results. M, e"/erience has led me to conclude that there are se0eral reasons for the demise of these lean manufacturing /rograms@ A5B no clarified e"/ectation or 0ision as to what the new lean en0ironment was to loo( li(eJ A1B lac( of a clear direction as to where to go and what to do ne"tJ A3B limited (nowledge +ase for how to conduct the im/lementationJ A4B significant focus on the mechanics of the new /rocess +ut little attention /aid to organiGation redesign issues connected with the change. These are (e,, critical issues that must +e addressed for an im/lementation to +e successful. The fact that man, com/anies ha0e neglected to do so has led me to write this +oo(.
66
Ackno,ledgments
I would sincerel, li(e to e"/ress m, a//reciation to all the /eo/le and multi/le com/anies with whom I ha0e had the o//ortunit, to wor( o0er the ,ears. I am e"tremel, grateful to a great man, of ,ou for the tremendous (nowledge I ha0e recei0ed during the last 59 ,ears. It is the 0ast di0ersit, of ,our ideas and +usiness situations that has allowed me to ha0e the insight necessar, to write this +oo(. .0en though hundreds of indi0iduals ha0e influenced the writing of this +oo(, I would s/ecificall, li(e to than(@ Phil Parr,, of the $ourton 7rou/, for his man, hours of counsel and guidance during a time of tremendous u/hea0al in m, lifeJ !on Aarns, of $oeing, for allowing me the o//ortunit, to show what is /ossi+le no matter what the im/ending oddsJ Eohn Paul, for gi0ing me the chance to see an entirel, new
glo+al world in a 0er, short /eriod of timeJ *a0id Hall, Eoe ostello, and Mi(e $ell, for their 0alua+le insight, thoughts, and feed+ac( +oth +efore and during the writing of this manuscri/tJ Allie McArth,, for her technical su//ort, ad0ice, and editingJ and most of all I want to than( m, wife, Eulie Ann, for sta,ing the course with me o0er the /ast 59 ,ears of learning, listening, and leading C without her consistent su//ort, this +oo( could not ha0e +een written.
6;
"$e Aut$or
)illiam M. :eld is a client /artner with am+ridge Management onsulting A M B, a di0ision of am+ridge Technolog, Partners. He has nearl, 59 ,ears of industr, e"/erience im/lementing lean manufacturing im/ro0ements and has conducted o0er =2 indi0idual KaiGen e0ents, im/lemented o0er 122 manufacturing cells, and managed se0eral lean manufacturing /rograms AutiliGing man, of the conce/ts descri+ed in the +oo(B for com/anies in a 0ariet, of industries. He has wor(ed in the machining, sheet metal, industrial /roducts, /neumatic tools, aeros/ace, electronics, /ower dri0es, and automoti0e industries. Prior to his wor( with M , $ill was a manager of change management for In0ens,s, PL , where he was res/onsi+le for the de0elo/ment and im/lementation of +usiness change management /rograms for In0ens,s com/anies throughout &orth America. He has +een a /lant manager for Stanle, Mechanic Tools and a manufacturing and materials management consultant for .rnst L 'oung, in addition to s/ending o0er 52 ,ears in the aeros/ace and defense industr, at $oeing Aformerl, Mc*onnell *ouglasB. $ill has also ser0ed as /roDect manager for the im/lementation of se0eral cellular manufacturing /rograms and has /artici/ated in the im/lementation of two M!P II s,stems. He has held multi/le line8management /ositions in manufacturing and materials management. $ill recei0ed his Master of $usiness Administration degree in o/erations management, earned a $achelorMs degree in +usiness administration, and is certified in /roduction and in0entor, management A PIMB with API S. He can +e contacted at A354B 4418;:=> or william.feldNworldnet.att.net.
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A1out API&S
API S, The .ducational Societ, for !esource Management, is an international, not8for8/rofit organiGation offering a full range of /rograms and materials focusing on indi0idual and organiGational education, standards of e"cellence, and integrated resource management to/ics. These resources, de0elo/ed under the direction of integrated resource management e"/erts, are a0aila+le at local, regional, and national le0els. Since 5;9:, hundreds of thousands of /rofessionals ha0e relied on API S as a source for educational /roducts and ser0ices. ? API&S &ertification Programs
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3ES&RIP"I 0 : 'EA0 MA0-:A&"-RI0G
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6
'ean Manufacturing: A 7+olistic8 *ie,
)$at Is Meant 1y Holistic D
hat is meant +, the word holistic O Is it meant to im/l, a wellrounded /ers/ecti0eO Is it used to descri+e an o0erall state of wellnessO *oes it mean all8encom/assingO If we chec( the definition according to )e+sterMs .nglish *ictionar,, holistic means Hem/hasiGing the organic or functional relation +etween /arts and wholes.I &ow, none of these definitions of holistic is necessaril, wrongJ howe0er, when associated with our descri/tion of lean manufacturing, the conce/t of holistic is meant to im/l, the interconnecti0it, and de/endence among a set of fi0e (e, elements. .ach indi0idual element is critical and necessar, for the successful de/lo,ment of a lean manufacturing /rogram, +ut no one element can stand alone and +e e"/ected to achie0e the /erformance le0el of all fi0e elements com+ined. .ach of these elements contains a set of lean /rinci/les which, when wor(ing together, all contri+ute to the de0elo/ment of a world8class manufacturing en0ironment, often reflected +, a com/an, in0entor,8turn le0el of 92 or higher. As descri+ed +, Schon+erger in his +oo(,
$orl& Class Man"*act"ring+ The /e0t 1eca&e , in0entor, turns /ro0ide com/ara+le anecdotal e0idence of the le0el of /erformance of a com/an, regardless of changes in economic swings, monetar, /olicies, trade /ractices, or internal com/an, mani/ulations@ H)e need not rel, on case studies or news cli//ings. Fne statistic e"tracta+le from cor/orate annual re/orts tells the stor, with sur/rising accurac,@ in0entor, turno0er Acost of sales di0ided +, on8hand in0entor,B.
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<
It ha//ens that when a com/an, manages its /rocesses /oorl,, waste in the form of in0entor, /iles u/.I
5:
&ot onl, are these lean /rinci/les interacti0e and co8de/endent, +ut there is also a fundamental relationshi/ that e"ists among these /rinci/les as to the sequence +, which the, should +e de/lo,ed. So what e"actl, are these fi0e elements and what ma(es them so co8de/endentO
3escription of t$e :i(e Primary Elements

The -i0e Primar, .lements for lean manufacturing are A5B Manufacturing -low, A1B FrganiGation, A3B Process ontrol, A4B Metrics, and A9B Logistics A-igure 5.5B. These elements re/resent the 0arious facets required to su//ort a solid lean manufacturing /rogram, and it is the full de/lo,ment of these elements that will /ro/el a com/an, on a /ath toward +ecoming a worldclass manufacturer. -ollowing is a +asic definition of each of the -i0e Primar, .lements@ ? Man"*act"ring %low+ The as/ect that addresses /h,sical changes and design standards that are de/lo,ed as /art of the cell. ? 2rgani3ation+ The as/ect focusing on identification of /eo/leMs roles/functions, training in new wa,s of wor(ing, and communication. ? Process Control+ The as/ect directed at monitoring, controlling, sta+iliGing, and /ursuing wa,s to im/ro0e the /rocess. ? Metrics+ The as/ect addressing 0isi+le, results8+ased /erformance measuresJ targeted im/ro0ementJ and team rewards/recognition. ? Logistics+ The as/ect that /ro0ides definition for o/erating rules and mechanisms for /lanning and controlling the flow of material. These /rimar, elements /ro0ide full co0erage of the range of issues that surface during a lean manufacturing im/lementation. .ach element focuses on a /articular area of em/hasis and com/artmentaliGes the acti0ities. .0en though each element is im/ortant on its own for the de/lo,ment of a successful lean manufacturing /rogram, the /ower comes from integration of
the elements. -or instance, Manufacturing -low sets the foundation for change. Peo/le see acti0it, on the sho/ floor, furniture +eing mo0ed Asometimes for the first timeB, machines or floors or walls +eing /ainted, and areas +eing cleaned u/. ."citement and energ, surround this 0isi+le change. Add to this the less than 0isi+le changes in infrastructure relati0e to organiGational roles and res/onsi+ilit,, new wa,s of wor(ing, training of /ersonnel, multi8
Lean Man"*act"ring+ A (olistic 'iew
4 function teaming, and identification of customer/su//lier relationshi/s. -inall,, add the 0isi+le /resence of sho/floor measurements reflecting status, equi/ment +eing re/aired, gra/hic wor( instructions +eing /osted at wor( stations, and machine changeo0er times +eing recorded and im/ro0ed. These /rimar, elements com/lement one another and are all required to su//ort each other as /art of a successful im/lementation. Most lean manufacturing initiati0es focus on the /rimar, elements of Manufacturing -low, some on Process ontrol and areas of Logistics. Fnce in a while, there is the mention of Metrics and some discussion regarding FrganiGation, usuall, training. This lac( of attention to the whole is a shame, +ecause it is the culture changes in FrganiGation and the infrastructure im/ro0ements in Logistics that institutionaliGe the im/ro0ements and /ro0ide for sustained change within the organiGation. )hen initiati0es focus on Dust the mechanics and techniques Aindicati0e of +oth Manufacturing -low and Process ontrolB, the im/ro0ement is more a+out calculations and formulas than it is a+out im/ro0ing wor(force ca/a+ilit,. An,one can read a +oo(, run a num+ers anal,sis on demand +eha0ior, calculate ta(t time, and esta+lish a U8sha/ed la,out, +ut doing so is not what will ma(e a com/an, differ from its com/etition. True com/etiti0e ad0antage comes from instilling :igure 6.6 :i(e Primary Elements of 'ean Manufacturing
Manufacturing :lo, 5. Product/quantit, assessment A/roduct grou/B 1. Process ma//ing 3. !outing anal,sis A/rocess, wor(, content, 0olumeB 4. Ta(t calculations 9. )or(load +alancing =. Kan+an siGing :. ell la,out >. Standard wor( ;. Fne8/iece flow Process &ontrol 5. Total /roducti0e maintenance 1. Po(a8,o(e 3. SM.* 4. 7ra/hical wor( instructions 9. #isual control =. ontinuous im/ro0ement :. Line sto/ >. SP ;. 9S house(ee/ing rgani!ation 5. Product8focused, multidisci/lined team 1. Lean manager de0elo/ment 3. Touch la+or cross8training s(ill matri" 4. Training Alean awareness, cell control, metrics, SP , continuous im/ro0ementB 9. ommunication /lan =. !oles and res/onsi+ilit, 'ogistics 5. -orward /lan 1. Mi"8model manufacturing 3. Le0el loading 4. )or(a+le wor( 9. Kan+an /ull signal =. A,$, /arts handling
:. Ser0ice cell agreements >. ustomer/su//lier alignment ;. F/erational rules Metrics 5. Fn8time deli0er, 1. Process lead8time 3. Total cost 4. Pualit, ,ield 9. In0entor, AturnsB =. S/ace utiliGation :. Tra0el distance >. Producti0it,
ca/a+ilit, within the wor(force, and this can onl, +e accom/lished through@ A5B achie0ing demonstrated (nowledge transfer +, +uilding an em/owered wor(force, A1B engaging all em/lo,ees within the +usiness +, steering their collecti0e energies in the same direction, and A3B em/owering the wor(force with clarified e"/ectations, common /ur/ose, and accounta+ilit, to get the Do+ done. An organiGation with this ca/a+ilit, can +e neither co/ied nor +ought +, the com/etitionJ it must +e designed, de0elo/ed, directed, and su//orted. This +oo( focuses on the relationshi/s among each of the /rimar, elements and /ro0ides a Hhow8toI road ma/ for im/lementing lasting change. In order for these /rimar, elements to function /ro/erl,, the, must +e im/lemented in the form of stages or H+uilding +loc(s.I S/ecific foundation /rerequisites must +e met /rior to de/lo,ment of su+sequent stages. The initial stages contain criteria that must +e satisfied +efore im/lementing su+sequent stages. These criteria are li(e the /rerequisites for some college courses. The first8le0el acti0ities must +e com/leted to ser0e as +uilding +loc(s for su+sequent stages. It is im/erati0e that these stages +e followed to a0oid Deo/ardiGing the im/lementation and to assure success in de/lo,ing the lean manufacturing /rogram as quic(l, as /ossi+le for ma"imum +enefit. Part III of this +oo( will identif, those stages and e"/lain the a//ro/riate sequence for im/lementation. Lean manufacturing, as descri+ed in this +oo(, is /rimaril, focused on designing a ro+ust /roduction o/eration that is res/onsi0e, fle"i+le, /redicta+le, and consistent. This creates a manufacturing o/eration that is focused on continuous im/ro0ement through a self8directed wor( force and dri0en +, out/ut8+ased measures aligned with customer /erformance criteria. It de0elo/s a wor(force with the ca/a+ilit, to utiliGe the lean tools and techniques necessar, to satisf, world8class e"/ectations now and into the future. As noted +, onner in Managing at the S)ee& o* Change+ HPeo/le can onl, change when the, ha0e the ca/acit, to do so. A+ilit, means ha0ing the necessar, s(ills and (nowing how to use them. )illingness is the moti0ation to a//l, those s(ills to a /articular situation.I
3
#iewing lean manufacturing from a holistic /ers/ecti0e should +e a+le to satisf, the need to ha0e +oth a+ilit, and willingness.
5
'ean Manufacturing Approac$
he first ste/ required on this Dourne, toward creating a lean manufacturing en0ironment is to recogniGe where we are currentl,. )e must demonstrate an understanding as to wh, we need to change, and we must determine wh, it is im/ortant that we ma(e a change. )hat are the +usiness dri0ers that ha0e caused this intrusion of lean manufacturing into our li0es and wh, should we care to /artici/ateO Answers to these questions are required in order for /eo/le to +ecome engaged in the change /rocess. How we handle the res/onses to these questions is critical to our success. Moti0ation, tenacit,, leadershi/, and direction all /la, (e, roles in the successful de/lo,ment of a lean /rogram. If we as indi0iduals are not moti0ated to go down this /ath, if we do not ha0e a direction to guide our ne"t ste/s, and we do not ha0e the tenacit, to sta, with the Dourne, when it +ecomes +um/,, we ma, as well not +egin. In order to understand the current situation, we ma, need to conduct a self8assessment that will /ro0ide a sounding +oard or reflecti0e mirror for our o/erating condition as it stands toda,. It will /ro0ide feed+ac( regarding where we currentl, demonstrate ca/a+ilit,, and it will re0eal ga/s +etween how things are +eing done toda, and what are considered to +e sound lean /ractices. To /ro0ide some le0el of insight into this ga/, one need onl, to loo( at the landmar( MIT stud, conducted +, )omac(, Eones, and !oos Asee The Machine That Change& the $orl& B to understand how far some o/erations are from +eing lean. -acilities that are considered lean o/erate with far fewer resources as com/ared to those facilities that o/erate as mass /roducers@ HLean /roduction 0s. mass /roduction@ 5/1 the human effort in
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the factor,, 5/1 the manufacturing s/ace, 5/1 the in0estment tools, 5/1 the engineering hours, 5/1 the time to de0elo/ new /roducts.I
1=
It is onl, when we are honest with oursel0es as to where we are that /rogress can reall, +egin to ma(e significant change. $enchmar(ing against a defined criteria and determining our /erformance ga/ are wa,s to +egin +uilding a stor, line for wh, we need to change Asee -igure 51.1B. It is this stor, line that must +e communicated to the organiGation in order to win su//ort for a change /rogram. $, the time com/an, leaders come to the conclusion that the, need to change the com/an,, it is usuall, after se0eral months or ,ears of seeing /rofits shrin( through re0enue loss at the to/ line or mar(et share erosion. Usuall,, the, ha0e +een loo(ing at the data and re0iewing the num+ers for quite some time. )hen the, finall, do come to the ine0ita+le conclusion that change is necessar,, these same leaders need to inform the entire organiGation as to the sco/e of what the, are changing and wh,. Fne cannot de/lo, a maDor change such as lean manufacturing and e"/ect it to endure without engaging the entire wor( force. If
one does not /resent a com/elling stor, as to wh, change is necessar,, em/lo,ees are not li(el, to +ecome engaged with the /rogram. This is not to sa, that those initiating the change will ha0e all the answers at this initial /hase A+ecause the, wonMtBJ howe0er, the, should +e a+le to e"/lain wh, it has +ecome necessar, to conduct +usiness in a different manner. After ha0ing gone through the self8assessment and reaching agreement that there is a need for change, the ne"t ste/ is to assem+le a team to design, de0elo/, and de/lo, the lean manufacturing /rogram. There are some general guidelines to follow when selecting a team and formall, launching a /roDect. -irst, the team must +e full timeJ /art8time teams gi0e /art8time results. If this /roDect is not serious enough to launch with full force, do not +other to +egin. Part8time mem+ers are onl, /artiall, dedicated, which means the, ha0e other /riorities and are not com/letel, focused on the tas( at hand. It is +etter to dedicate three /eo/le full time than to staff a team with 51 /arttime resources. Part8time teams sim/l, do not wor(. Second, roles within the team and the wa, in which team mem+ers interact with one another are quite im/ortant. It is im/erati0e that all mem+ers understand their roles on the team and wh, the, were selected for the assignment. )hen assessing /roDect team candidates, it is im/ortant to (ee/ in mind selection criteria and to ha0e an understanding of what attri+utes are required. The following would +e a good starter list of desired attri+utes@ ? F/en minded ? .ffecti0e communicator
Lean Man"*act"ring A))roach
? ? !esults oriented ? Self8confident ? !esilient to change ? hallenger of the stat"s -"o ? 7rou/ facilitator ? Trusted Dudgment ? Influential within the organiGation In addition to each team mem+erMs e"/erience and e"/ertise, an indi0idualMs /reference toward ta(ing on a /articular role is an im/ortant factor in the successful outcome of a teamMs a+ilit, to deli0er a /roDect. Meredith $el+inQ has done a significant amount of research in this area and has concluded that team role /reference can ha0e a considera+le im/act as to whether a team will /erform successfull, or not. UtiliGation of his material can /ro0ide some 0alua+le insight into the a//ro/riate ma(eu/ of /roDect teams. After the team has +een selected, the, must +e mo+iliGed. To accom/lish this, the team will need to generate two (e, documents@ a /roDect charter and /roDect milestone /lan. The charter defines the /roDectMs /ur/ose, o+Decti0es, and outcomes. The milestone /lan identifies maDor segments of the /roDect,
the time frame for com/letion, and a sequence of maDor e0ents. The milestone /lan should +e +ased on a lean manufacturing road ma/ A-igure 1.5B, which /ro0ides a common understanding for the team as to s/ecific /hases of the /roDect.
Q Meredith $el+in is a $ritish /rofessor who has conducted nearl, 32 ,ears of research on teams, team d,namics, and de0elo/ing insight into what ma(es successful teams wor( Asee $el+in AssociatesM )e+site@ www.+el+in.comB.
:igure 9.6 'ean Manufacturing Road Map
6@
In addition to the /roDect charter and milestone /lan, the following elements should also +e considered as necessar, ingredients for the /ractice of good /roDect management@ ? ProDect /rotocol Ateam meeting time, /lace, duration, formatB ? ProDect organiGation Asteering committee, /roDect owner, leader, etc.B ? *efined roles/res/onsi+ilities Afor organiGation structureB ? !is( mitigation management Aidentif,ing and resol0ing /otential ris(B ? HaGard escalation management Arules for ele0ating /ro+lemsB ? ProDect schedule Adeli0era+les, ownershi/, de/endenc,, resourcesB ? Issue log Acatalog of /roDect issues, action, dates, ownershi/B ? ProDect +oo( Ali0ing and historical documents of the /roDectB The team8generated charter and milestone /lans Asee -igures 55.5 and 55.1B /ro0ide the first documented clarification of /roDect e"/ectations for e"ecuti0e management and the /roDect team. These documents are to +e agreed to and signed off on +, all /arties in order to minimiGe the ris( of missed e"/ectations down the road. It is at this time that an announcement should go out to the rest of the organiGation e"/laining what is a+out to ta(e /lace in regard to the lean /rogram. This communication should@ A5B e"/ress the need for loo(ing at doing +usiness differentl,, A1B identif, who ma(es u/ the /roDect team, A3B re0eal the /roDect milestone /lan, and A4B clarif, for em/lo,ees what this /roDect means to them. Fnce the /roDect team has com/leted the initial de+riefing with management, the, are read, to +egin detailing the lean /roDect elements, which would include the /roDectMs deli0era+les Athose 0er, +lac(8and8white, tangi+le /ieces of e0idence that /ro0ide /roof that an acti0it, is com/leteB, the defined wor( content for each of the /roDect deli0era+les with assigned ownershi/ Ares/onsi+ilit,, accounta+ilit,, and authorit,, or !AAB, the esta+lishment of resource staffing requirements, and the teamMs agreement on /roDect management /rotocol. Fnce the team is u/ and o/erating, it is time to get down to +usiness. -or the team, this means wor(ing their wa, through each of the lean road ma/ /hases. The first /hase, that of Lean Assessment A-igure 1.1B, is used to determine how the o/eration stac(s u/ area +, area and /roduct grou/ +, /roduct grou/ from a lean manufacturing /ers/ecti0e. In this /hase, the team tries to understand where areas of o//ortunit, and le0erage /oints e"ist within the +usiness. The, +egin +uilding the stor, line for not onl, wh, the +usiness needs to change +ut also where and how much. This assessment
loo(s at /rocess /erformance issues relating to the -i0e Primar, .lements +, identif,ing waste or HmudaI o//ortunities that e"ist within the +usiness.
66 In addition to the internal search for o//ortunit,, the outline of a manufacturing strateg, is de0elo/ed in order to assure alignment of the lean initiati0es with the mar(et/lace and to /ro0ide insight for the a//ro/riate design criteria that are to +e utiliGed in /hase three, -uture State *esign. As Hunt clarified in Process Ma))ing+ (ow to Reengineer 4o"r B"siness Processes , it is necessar, to understand the customerMs /erformance e"/ectations +efore designing a solution@ HTo sim/lif, ,our /roduct and /rocess s,stems design, the /rocess im/ro0ement team must first understand the customerMs real requirements and /riorities.I
55
This manufacturing strateg, outline will identif, which /roducts com/ete in what mar(ets and wh,. It also e"/lores maDor com/etitors to understand the com/etiti0e criteria required for certain mar(ets and determines where the team needs to le0erage the change /rogram to gain alignment with the current and desired customer +ase. 7unn em/hasiGed this in his +oo(, Man"*act"ring *or Co!)etitive A&vantage+ Beco!ing a $orl& Class Man"*act"rer @ HIt is im/erati0e to ascertain to the e"tent /ossi+le how effecti0el, the com/etitors can manufacture /roducts.I
=
$, aligning with mar(et/lace requirements, the /ro+a+ilit, of le0eraging +ottom8line +enefit for the +usiness increases tremendousl,. After Lean Assessment is com/lete, a second de+riefing is conducted with e"ecuti0e management to re/ort the findings and gain a//ro0al to mo0e on to the ne"t /hase, that of documenting the urrent State 7a/ A-igure 1.3B. The urrent State 7a/ /ro0ides the +aseline measure of where the com/an, is toda,. In this /hase, the team@
:igure 9.9 P$ase 6: 'ean Assessment
'ean Manufacturing Implementation E (er(ie,F 'ean Manufacturing Performance Assessment
E&urrent State PerformanceF
Manufacturing Strategy
E&ompetiti(e &riteria/Market SegmentationF
Management 3e1riefing 6 day 9G< days 9G< days 6 day
69
? !ecei0es training in /rocess 0alue anal,sis AP#AB, lean manufacturing /rinci/les, and lean anal,sis tools ? .sta+lishes /rocess lin(ages through material and information flow ma//ing ? Puantifies where o//ortunities e"ist for waste elimination ?
7enerates design criteria +ased on the mar(et/lace ? reates a SIPF Asu//lier8in/ut8/rocess8out/ut8customerB ma/ of all the maDor o/erational /rocesses in order to understand customer/su//lier relationshi/s and required in/uts and out/uts that trigger these /rocesses ? Anal,Ges current /erformance le0els in regard to /roduction loss function and waste elimination o//ortunities in order to /rioritiGe im/lementation sequence and address ris( ? *e0elo/s a Hquic( hitI list for short8term im/ro0ements and esta+lishes a +aseline for demonstrated im/ro0ement If this last item is gi0en a//ro0al +, e"ecuti0e management, the shortterm im/ro0ements will +e de/lo,ed as /art of the third /hase. This would allow the com/an, to +egin realiGing +enefits quic(l, and to initiate selffunding of the change /rogram. In addition, it allows /eo/le to see action and results right awa,. After in0esting 3 to = wee(s to gain an understanding of the current state and to confirm that understanding with the maDor /rocess owners, a management de+riefing is conducted to inform e"ecuti0e management as to what was disco0ered. ."ecuti0e management a//ro0al allows rite of /assage to the third /hase, which is focused on the -uture State *esign A-igure 1.4B. In the -uture State *esign /hase, the /roDect team /uts together an o0erall conce/t
:igure 9.; P$ase 9: &urrent State Gap
'ean Manufacturing and P*A "raining &urrent State Mapping
Ematerial/information flo, and SIP &F
Root &ause Analysis
Eloss function and issue/element matrixF
Management 3e1riefing ;26/9 days 6G; ,eeks 6G9 ,eeks 9 days
6; design of how the site should o/erate. This /rocess will ta(e a//ro"imatel, 1 to 3 wee(s and includes@ ? *etermining what /roduct grou/ings e"ist and how the, would +e /roduced ? 7enerating a general organiGation structure ? Producing a +loc( la,out for the /lant ? Anal,Ging /roduct demand +eha0iors and material/information flow ? Pro0iding team training for the o0erall o/erations management structure A/ossi+l, including site 0isits to other lean o/erationsB and e"/osure to different manufacturing architectures ? onfirming the conce/t design with maDor /rocess owners ? *e0elo/ing a new demand management /rocess for logistics Aorder
launch to /roduct deli0er,B The teamMs conce/t design is /resented to e"ecuti0e management for re0iew and a//ro0al. )hen +lessed, the team focuses the ne"t 3 to 4 wee(s on the second half of /hase three, the de0elo/ment of a detail design. The outcomes of this detail design include@ ? Sho/floor staffing /lans ? ell wor(load anal,sis ? Transition strateg, ? Im/lementation /lan ? *efined e"it criteria
:igure 9.< P$ase ;: :uture State 3esign
perations Management "raining EManufacturing ModelsF &oncept 3esign Management 3e1riefing Plant &ommunication 6/9 day 6G9 ,eeks 6 day 9G; ,eeks 6 day 9 days Management 3e1riefing 3etail 3esign
Eimplementation plan and transition strategyF
6<
? Sho/floor organiGation roles and res/onsi+ilities ? onfirmation of the detail design with maDor /rocess owners ? Sho/floor training /rogram ? ommunication /rogram This /ac(age is /resented to e"ecuti0e management for a//ro0al. U/on agreement as to the lean /rogram rollout, a communication regarding the im/lementation /lan should go to all em/lo,ees e"/laining what was disco0ered, who was in0ol0ed, what was decided, where the organiGation is going, and where all em/lo,ees fit in. It is at this time that the /roDect team mo0es into the fourth /hase, Im/lementation. &ow that the team has s/ent the last ; to 59 wee(s on assessment, anal,sis, design, and /lanning, it is time for the real action to +egin. The in0estment in time and resources s/ent u/ front to understand the current /rocess and design the future state can now quic(l, /a,off. It is through the definition of a design criteria, the descri/tion of mar(et/lace and customer 0alue o//ortunities, and the esta+lishment of im/ro0ement initiati0es around /roduct grou/ings that alignment of the lean manufacturing /rogram will le0erage ra/id +enefits during de/lo,ment. This logic is similar to that descri+ed +, )omac( and Eones in Lean Thinking+ Banish $aste an& Create $ealth in 4o"r 2rgani3ation @ HA firm might ado/t the goals of con0erting the entire organiGation
to continuous flow with all internal order management +, means of a /ull s,stem. The /roDects required to do this might consist of@ A5B reorganiGing around /roduct families, with /roduct teams ta(ing on man, of the Do+s of the traditional functionsJ A1B creating a Rlean functionM to assem+le the e"/ertise to assist the /roduct teams in the con0ersionJ and A3B commencing a s,stemic set of im/ro0ement acti0ities to con0ert +atches and rewor( into continuous flow.I
19
The im/lementation of manufacturing cells is now conducted though a series of stages 0ia HKaiGen e0ents.I These stages ser0e as +uilding +loc(s and set the foundation for su+sequent stages A-igures 1.9 and 1.=B. -or e"am/le, im/lementation of the first stage includes@ ? .sta+lishing the +aseline cell design ? $alancing the cell to ta(t time ? *ocumenting the standard wor( content ? .sta+lishing 0isual controls ? reating the o/erating rules ? Introducing intra8cell material /ull ? *efining team roles and res/onsi+ilities
64 :igure 9.4 Implementation Met$odology :igure 9.= 'ean Manufacturing Principles 6=
)hen the one8wee( KaiGen e0ent is o0er, the second wee( is s/ent twea(ing the /rocess and allowing for adDustments. This is due to the fact that not e0er,thing can +e im/lemented in its final form during the first wee(. After a+out = wee(s of o/eration, the /rocess should +e sta+iliGed and /erforming at targeted /erformance le0els. At this /oint, a lean manufacturing audit Asee -igure 51.4B should +e conducted to ma(e sure the im/lementation is e"hi+iting lean manufacturing characteristics and has demonstrated a significant change in /erformance A-igure 1.:B. Fnce the cell is /erforming at the desired le0el and has /assed the audit, the cell team is allowed to /ursue the second stage, which is de/lo,ed in the same manner as stage oneJ howe0er, this stage focuses on@ ? !a/id utiliGation of single8minute e"change of dies ASM.*B ? .sta+lishment of a formal total /roducti0e maintenance ATPMB /rogram ? Incor/oration of Po(a8,o(e de0ices ? UtiliGation of statistical /rocess control ASP B ? Team mem+er cross8training ? UtiliGation of continuous im/ro0ement tools
? *e/lo,ment of inter8cell /ull s,stem Again, there is a =8 to :8wee( /eriod for sta+iliGation to ensure that desired /erformance le0els are +eing achie0ed and to conduct a formal audit. Fnce the second stage is com/leted, the cell team qualifies for ad0ancement to the
:igure 9.5 Expected Benefits
65 third and final stage, which is reall, where world8class /erformance ca/a+ilities are achie0ed through the cellMs ca/a+ilit, to@ ? Perform mi"8model manufacturing ? *eli0er ma(e8to8order /roduction ? on0ert to a one8le0el +ill of materials A$FMB ? Ta(e ad0antage of finished8goods 0ariation techniques ? Su//ort fle"8fence demand management ? UtiliGe material +ac(flushing ? onduct a failure mode and effects anal,sis A-M.AB ? alculate /rocess ca/a+ilit, A /KB ? ontri+ute to the assessment of /roducts through design for manufacturing/ assem+l, A*-MAB /rinci/les -or /ur/oses of ris( mitigation, the first cell needs to +e de/lo,ed as a /ilot cell, where o0er 92S of all lessons learned are o+tained. a/turing those lessons learned and utiliGing them during the de/lo,ment of su+sequent /roduction cells is in0alua+le. As each cell is im/lemented and +ecomes selfsustaining, loo( to lin( indi0idual /roduction cells together through customer/ su//lier alignment with inter8cell Kan+ans. It is im/ortant to ma(e sure that indi0idual cells are sta+le +efore interconnecting them with other cells. If the, are not, the internal su//l, chain is /ut at ris(. Fnce 92S of the /roduction cells are in stage two and well on their wa, toward self8sustaining im/lementation, it is time to ta(e the focus of the /roDect team off the sho/ floor and to +egin to /ursue im/ro0ements in other areas of the +usiness. This is in (ee/ing with the ad0ice gi0en +, Imai in Ge!ba 5ai3en @ H7em+a KaiGen +ecomes the starting /oint for highlighting inadequacies in other su//orting de/artments and identifies s,stems and /rocedures that need to +e im/ro0ed.I
51
The first area to address, therefore, would +e that of customer interface for order /rocessing and demand management. $, this time in the /roDect, enough im/ro0ement has +een demonstrated on the sho/ floor that it is time for the team to wor( its wa, down the 0alue stream toward the customer +ase. The second area of focus would +e that of /roduct de0elo/ment. &ow that the sho/ floor has a greater understanding of its ca/a+ilit,, the, can
deli0er e"tremel, 0alua+le insight into /roduct designs and also contri+ute to the new /roduct de0elo/ment /rocess. The third area of focus would +e redesign of the organiGation from where it is now to something that is more reflecti0e of the new manufacturing architecture, where form would +egin to follow function. The fourth area would +e that of the e"ternal su//l, +ase. 6>
&ow that a solid wor(ing model e"ists inside the factor, and confidence has +een gained in using the lean tools and techniques, it would +e a//ro/riate for the /roDect team to wor( u/ the 0alue stream toward the su//lier +ase. .0en though these initiati0es are listed in a serial manner, the, can +e addressed in /arallelJ howe0er, that is onl, recommended with a word of caution. A com/an, has onl, so man, resources and realisticall, cannot address more than three to fi0e com/an,8wide initiati0es at an, one time. In addition, if lean manufacturing cannot +e demonstrated at ,our own facilit,, it would not +e wise to e"/ect a customer or su//lier to Dum/ on +oard unless the, ha0e alread, +een conducting lean manufacturing initiati0es within their facilities. Some acti0ities can +e done in /arallel, +ut +e aware of ca/a+ilit, surrounding the entire su//l, chain. !emem+er that a chain is onl, as strong as its wea(est lin(. Ingersoll .ngineers, in Making Man"*act"ring Cells $ork, /ro+a+l, +est summariGed this o0erall a//roach to lean manufacturing@ HThe greatest +enefits are realiGed quic(l, in com/anies that include all affected functions from the +eginning of the fle"i+le manufacturing cell A-M B /roDect. T ells sim/l, donMt wor( well, if at all, when the, are not /art of an o0erall strateg, of change underta(en +, their users. ells standing alone are worthless. The, are isolated islands remote from the rest of the world.I
53
-or an, /roDect team to +e successful, a num+er of /roDect management assum/tions are required A-igure 1.>B. The one final question that remains for management to address to ensure a successful conclusion to the lean manufacturing /rogram is HAre ,ou willing to do what it ta(es to +ecome a world8class manufacturing organiGationOI A-igure 1.;B. If management is not willing to commit to these issues, then it is not recommend that the, /ursue de/lo,ment of a lean manufacturing /rogram. If these (e, ingredients are not /resent within the s/irit of the o/eration, the im/ro0ement initiati0e will struggle se0erel, and often time result in failure.
:igure 9.> ProBect Management Assumptions
H H H H H H "$e "$e "$e "$e "$e "$e proBect proBect proBect proBect proBect proBect ,ill ,ill ,ill ,ill ,ill ,ill 1e gi(en t$e time necessary to deploy. 1e gi(en resources Efunds and peopleF. 1e gi(en a full2time/focused team. 1e gi(en clear expectations. $a(e an identified management sponsor. $a(e access to management guidance.
6? Part I of this +oo( has /ro0ided insight into the o0erall as/ects of a holistic lean manufacturing /rogram and has demonstrated how to set u/ and manage a lean /rogram. Part II will descri+e in greater detail each as/ect of the -i0e Primar, .lements of lean manufacturing. :igure 9.? 7Are You )illing "oID8
H &an you impact production for 6 ,eekD 9 ,eeksD ; ,eeksD H &an you dedicate ; to > people for = to ? mont$sD
H &an you endure failure and mistakes 1efore success and impro(ed performance are fully reali!edD H &an you pro(ide commitment# e(en ,$en you do not see maBor results after 9 mont$sD H &an you $old t$e course for 6> to 9< mont$sD
II
:I*E PRIMARY E'EME0"S
9;
;
rgani!ation Element
ost /roDect managers recogniGe that culture is one of the toughest things to change in an, com/an,. $, definition, a com/an,Ms culture is Hthose acti0ities that go on within a com/an, when management is a+sent.I A com/an,Ms culture contri+utes significantl, in the formation of an organiGationMs +eha0ior and can +e difficult to alter. $eha0iors that relate s/ecificall, to a com/an,Ms informal o/erating s,stem ha0e usuall, +een culti0ated o0er man, ,ears and ma, not su//ort or align with new continuous im/ro0ement initiati0es. A lean manufacturing im/lementation cannot sur0i0e within an old culture that does not su//ort a new o/erating en0ironment. Man, questions are as(ed +, management and em/lo,ees ali(e when facing a lean manufacturing im/lementation with its newl, de0elo/ed res/onsi+ilities. )ho has ownershi/ for /roductsO )hat ha//ens when a /roduct lea0es the cellO Is our touch la+or wor(force cross8trained sufficientl, to o/erate in a lean en0ironmentO )hat does a cell mean to our com/an,O *o we in0ol0e the unionO *o we alread, ha0e cell leaders, or should the, +e inter0iewed and selectedO )ho re/orts to the cell leaderO )hat is the role of a cell leaderO Is it Dust touch la+orO Is it /roduction controlO Is it /roduction engineersO Is it qualit, ins/ectionO All of the a+o0e are e"cellent questions and are usuall, o0erloo(ed when a lean manufacturing im/lementation is limited to equi/ment rearrangement and sho/floor la,outs. There are o0er a doGen different cultural issues in0ol0ed with these questions, and an, one of them can sto/ an im/lementation dead in its trac(s. Most factories toda, still require human resourcesJ therefore,
M
9<
/eo/le /la, an instrumental role in the success or failure of factor, im/ro0ement initiati0es. Man, initiati0es ha0e failed due to the neglect of these cultural issues. So how does one handle this influ" of cultural8related questionsO )hat methods are utiliGed to tac(le these issuesO To address these questions in a logical manner, indi0idual areas ha0e +een identified for discussion here@ 5. ommunication Planning 1. Product8-ocused !es/onsi+ilit, 3. Leadershi/ *e0elo/ment 4. F/erational !oles and !es/onsi+ilities 9. )or(force Pre/aration
&ommunication Planning
H)hatMs in it for me and where do I fit inOI If ,ou want to get /eo/leMs attention, nothing /iques their interest more than threatening their Do+s or changing the wa, in which the, do their wor(. *o not (ee/ them in the dar( a+out the /ro/osed changes. -ear is the human emotion that (ee/s us alert during times of duress and (ee/s us ali0e in situations of great danger. -ear is a moti0ator. )hen indi0iduals are threatened +, actions that ha0e the /otential to im/act their li0elihood, the, /rotect and tr, to /reser0e those things o0er which the, ha0e control and fend off those o0er which the, do not. Thus, it is +est not to generate fear of an initiati0e +efore it e0en gets off the ground. *e0elo/ a communication /lan that is focused at three le0els within the organiGation, and tailor the content and su+Dect matter to each A-igure 3.5B. UtiliGe 0arious forms of media to distri+ute the message and /ro0ide a clear understanding
:igure ;.6 &ommunication Planning +ierarc$y
Executi(e 'e(el: Education
EBriefing# ProBect Re(ie,s# Site *isits# 3emonstrations# Seminars# etc.F
Middle Mgt. 3e(elopment: "raining -pdate t$e Masses: Information 2rgani3ation le!ent
EPresentations# Status Reports# Skills "raining# :ace2to2:ace Interactions# etc.F E0e,sletter# "o,n +all# &ommunication Boards# Meeting 0otes# &ulture "esting/:eed1ack# etc.F
94 a+out what is required for each audience. ."ecuti0e management requires understanding and the a+ilit, to a//ro0e. Middle management needs a significant amount of education and training. The masses require 0alidation and assurances that the, are included in the /roDectMs de/lo,ment. )hen /resenting the /lan to the different le0els within the organiGation, ma(e sure the following four questions are answered as a /art of the communications A-igure 3.1B@ 5. )h, are we changingO 1. )hat are we changingO 3. )here are we nowO 4. )hatMs in it for meO
h! Are
e Changing"
Put together a /resentation that is a//lica+le to all em/lo,ees in the organiGation. It should +e a relati0el, high8le0el +riefing that@ 5. *escri+es wh, the +usiness is ma(ing a change in this direction A+usiness en0ironment, com/etiti0e /osition, mar(et o//ortunit,, etc.B
:igure ;.9 Aspects of &ommunication Planning
9=
1. ."/lains how 0arious em/lo,ees will fit into the new en0ironment Awho could +e affected, le0els of management, /otential role changes, etc.B 3. larifies o/erational e"/ectations Ae.g., 39S im/ro0ement in o/erational /erformance, 11S increase in mar(et share, 5>S reduction in total costsB
hat Are
e Changing"
Show an o0erall /roDect /lan that addresses such issues as +udget Awhere the mone, is coming fromB, im/lementation schedules, maDor milestones, and areas in0ol0ed in the de/lo,ment.
here Are
e #o$"
*escri+e the stage of the game at which the /roDect is currentl, residing. Pu+lish a regular newsletter or e8mail for the sho/ floor and office en0ironment to (ee/ /eo/le u/ to date with how the im/lementation is /rogressing.
hat%s In It for Me"

Address the following issues from the /ers/ecti0e of the indi0idual em/lo,ee@ 5. )here do I fit into the new organiGationO 1. How will this change affect the wa, I /erform m, Do+O 3. How do I +enefit or 0alue from this changeO Addressing these four questions will +egin to engage /eo/le with the change /rocess and hel/ secure their in0ol0ement o0er the long haul.
Product2:ocused Responsi1ility
Thin( a+out ,our own organiGation for a minute and as( ,ourself this question@ If a customer called toda, and as(ed who in ,our organiGation was res/onsi+le for the qualit, and deli0er, of /roduct <<85314, what would ,our answer +eO If there is a deli0er, /ro+lem, do we turn to /roduction controlO If there is a qualit, /ro+lem, do we turn to ins/ectionO If there is a /roduct cost issue, do we inquire with accountingO Using such logic to sol0e these
2rgani3ation le!ent
95 /ro+lems can +e attri+uted to the e0er8/o/ular Hfunctional organiGation.I .0er,one has a /iece of the action +ut no one has res/onsi+ilit, for the whole, e"ce/t /erha/s at the /lant manager le0el. As( ,ourself, is the /lant manager the a//ro/riate /erson to +e addressing s/ecific questions a+out /roductsO ShouldnMt the /eo/le with assigned res/onsi+ilit, for the /roduct +e answering questions a+out the /roductO The answer is ,es. 'es, the, shouldU According to Schon+erger in $orl& Class Man"*act"ring+ The Lessons o* Si!)licity A))lie& , this /oint is e"tremel, im/ortant for reducing infighting and waste in the /rocess@ H)orld lass Manufacturing A) MB requires organiGing for quic( flow and tight /rocess8to8/rocess and /erson8to8/erson lin(ages. The o0erriding goal is to create res/onsi+ilit, centers where none e"isted +efore. )hen res/onsi+ilit, centers are o/erating, the /rocrastinating, finger8/ointing, and ali+iing fadeJ the stage is set for con0ersion to a culture of continuous im/ro0ement.I
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How, then, does one +ring a+out this realignment of ownershi/O This realignment can +e achie0ed +, addressing three as/ects of lean manufacturing@ 5. *e0elo/ing a res/onsi0e material and information flow infrastructure ALogisticsJ see ha/ter 9B 1. *esigning a fle"i+le manufacturing architecture AManufacturing -lowJ see ha/ter =B 3. Transitioning ownershi/ through the conce/t of em/owerment All of these as/ects were referred to +, Mahone, in (igh6Mi0 Low6'ol"!e Man"*act"ring @ H.m/lo,ee /artici/ation and em/owerment are results of the /roduction situation. Attem/ts to em/ower the wor(force and o+tain continuous qualit, im/ro0ement without a sound underl,ing s,stem of su//ort are doomed to failure.I
54
The o0erriding /remise here is that the res/onsi+ilit, for decisions and accounta+ilit, for /erformance are delegated to em/lo,ees in a gi0en cell when the, ha0e the a//ro/riate le0el of training, tools, and techniques +, which to em+race this new ownershi/. A critical change required to su//ort this realignment of ownershi/ is to ma(e it clear that cells are formed around /roducts and /roducts are the res/onsi+ilit, of cell mem+ers under the direction of a cell leader. The cell team has res/onsi+ilit,, accounta+ilit,, and authorit, A!AAB for /roduct qualit,, deli0er,, cost, and an, other element or as/ect of that /roduct that is assigned to the cell le0el. .ach cell should +e /ro0ided with the resources 9>
necessar, to carr, out this mission. That does not mean that e0er, organiGationMs cells will loo( or +e staffed in e"actl, the same manner, +ut it does mean that each com/an, will assign the a//ro/riate cell resources to match their gi0en !AA. An organiGationMs siGe, le0el of manufacturing /rocess com/le"it,, le0el of cultural maturit, in terms of em/owerment, etc. are all factors in determining the ma(eu/ of cell organiGation structures. At a minimum, the cell should +e staffed with a dedicated cell leader Awho could manage more than one cellB, identified touch la+or /ersonnel, and an, required su//ort resources Ae.g., /roduction control, /roduction engineers, qualit, /ersonnel, maintenanceB necessar, to carr, out the mission of the cell team. It ma, +e fiscall, /rudent to dedicate su//ort /ersonnel to more than one cellJ howe0er, each organiGation will ha0e to determine a +est fit for their own o/eration. Some organiGations ha0e esta+lished a two8tier structure in which the da,to8 da, acti0ities Athose occurring within 5 to 32 da,sB are handled at the sho/floor le0el and the month8to8month acti0ities Athose within =2 to ;2 da,sB are managed at a le0el a+o0e the sho/ floor. This di0ision of la+or allows for the se/aration of resources for /lanning and e"ecution. !esources a+o0e the sho/ floor can concentrate on /re/lanning and /ro+lem /re0ention without +eing consumed with firefighting ta(ing /lace on the sho/ floor. The dedicated sho/floor resources can focus their energies on the /roduct and e"ecuting da,8to8da, requirements. In order for indi0iduals and teams to +e successful in an em/owered en0ironment, a few ingredients are required A-igure 3.3B. If /eo/le are gi0en
clear e"/ectations, the /ro/er en0ironment in which to concentrate, minimal interru/tions, immediate and direct feed+ac(, challenging goals, and the s(ills necessar, to /erform their Do+s, /ositi0e /erformance results will +e generated. )hen management creates this en0ironment and nurtures these conditions, em/owered, self8directed teams can flourish.
:igure ;.; "o Be Successful# People )antI
H H H H H H A clear o1Becti(e 0eed for intense concentration 'ack of interruptions &lear and immediate feed1ack Sense of c$allenge Skills ade%uate to perform t$e Bo1
2rgani3ation le!ent
9?
'eaders$ip 3e(elopment
As( ,ourself, HAre the sho/ foremen I ha0e running m, sho/ floor toda, the leaders I want o/erating cells within m, lean manufacturing en0ironment of the futureOI This is a 0er, difficult question for man, /lant managers to answer +ecause the, ha0e to determine whether the Hdown in the trenchesI frontline su/er0isors who ha0e gotten the organiGation where it is toda, are qualified to ta(e it to the ne"t higher le0el of /erformance for tomorrow. )hen an im/lementation considers onl, the /h,sical as/ects of a lean manufacturing /roDect, this idea of /ro/er leadershi/ is ne0er addressed. In order for a wor(force to +e trul, em/owered, it must first +e equi//ed with the a//ro/riate management s(ills and (nowledge that will ena+le it to set its direction, maintain control o0er its destin,, and sustain continuous im/ro0ement after the initial im/lementation team is long gone. This does not ha//en +, Hteaching an old dog new tric(s.I This is not to sa, that sho/ foremen are not ca/a+le of leading and managing cellsJ howe0er, a com/an, that is transforming to a lean en0ironment is esta+lishing new mini8+usinesses, not new factor, de/artments. )e are not Hrearranging the dec( chairsI in this new en0ironment. )e are loo(ing for leaders who can /lan acti0ities, set o+Decti0es, manage more than Dust tas(8+ased wor( assignments, and recogniGe cause8and8effect relationshi/s relati0e to /roduct cost. These are not /ositions to +e filled +, indi0iduals who ha0e +een /romoted u/ the ran(s +ecause of e"cellent sho/ (nowledge. These are +usiness managers who could 0er, li(el, +e required to interface with outside customers and su//liers. As stated +, To+in in Re6 &"cating the Cor)oration+ %o"n&ations *or the Learning 2rgani3ation @ HFrganiGations are +ecoming flatter, with fewer le0els se/arating the to/ officers of the com/an, from the lowest le0els. T)or( teams, whether within a single function or cross8functional, are +ecoming (e, organiGational units. The, are +eing gi0en more and more res/onsi+ilities that used to +elong to higher le0el managers C from /ro+lem sol0ing to hiring to ma(ing ca/ital in0estments.I
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#iewing the situation in this light, who do ,ou want ,our ne"t cell/+usiness unit leaders to +eO How do ,ou find these future leadersO Man, of them currentl, wor( in the factor, or at least within the com/an, toda,. onsider, the ne"t time ,ou are in a meeting that includes em/lo,ees from 0arious functions across the +usiness, who is e"hi+iting the following characteristics or management s(ills@ /lanning, leadershi/, /ro+lem8sol0ing a+ilit,, team +uilding, technical com/etenc,, and inter/ersonal communication. These are the /eo/le ,ou are
loo(ing for to fill leader roles. These are the /eo/le who will challenge the stat"s -"o . These are the /eo/le who will wor( with their direct re/orts to ;@
accom/lish a set of gi0en o+Decti0es. Howe0er, if ,ou cannot readil, see and identif, such /ersonnel, do not des/airJ there is still ho/e. $, de0elo/ing and de/lo,ing a formal selection and assessment /rocess, a com/an, can utiliGe a structured framewor( +, which to select future cell leaders A-igure 3.4B. It is highl, recommended that some form of a formal /rocess +e used in the selection of cell leaders for three reasons@ A5B the human resources de/artment should +e a+le to (ee/ ,ou out of hot water on the numerous legal issues surrounding em/lo,ee discriminationJ A1B ,ou and the new cell leaders will +e a+le to identif, a training /lan for those s(ills that are required for the /osition ,et are lac(ing at the time of selectionJ and, most im/ortantl,, A3B ,our new leaders will +e selected out of a field of their /eers. The, ha0e +een singled out as the H+estI to fill this new /osition and will now directl, +e hel/ing the com/an, succeed with this new direction. )hat could +e more rewarding for a self8moti0ated indi0idual who has the desire to lead than to ha0e his leadershi/ qualities recogniGed through a formal assessment /rocess and to +e selected to manage a cellO )hen this highl, moti0ated /erson, with leadershi/ and team8+uilding s(ills, is em/owered to organiGe his team and set a course for continuous im/ro0ement, there will +e no limit to what this team can accom/lish.
perational Roles and Responsi1ilities

&ow that we ha0e a cell leader and ha0e assigned team mem+ers, we should +e read, to mo0e on to the ne"t cell, rightO )rongU *o ,ou thin( that within
:igure ;.< &ell 'eader Selection Steps
&ommunicate t$e need and expectations for cell leader candidates Pro(ide information a1out t$e ne, position +a(e candidates pro(ide a selfassessment and skills analysis Identify skill gaps# select cell leaders# de(elop training plan &onduct formal group inter(ie,s of candidates Assess candidate responses and select for inter(ie,
2rgani3ation le!ent
;6 this new wor(ing en0ironment the traditional functional roles will remain unchanged and unaffectedO The roles and res/onsi+ilities of +oth touch la+or and su//ort /ersonnel will +e altered. Some /ositions will +e changed more than othersJ nonetheless, the, all will +e different. The cell teams should +e staffed with the minimum, fle"i+le resources necessar, for them to meet all o/erational /erformance o+Decti0es. This will almost certainl, 0ar, from cell to cell and com/an, to com/an,, +ut the fact remains that we are all doing more with less in this increasingl, com/etiti0e glo+al world of manufacturing. In light of this, the num+er one com/etiti0e wea/on that comes to mind is fle"i+ilit,J therefore, /lan on staffing the cell with at least the minimum it needs to sur0i0e and allow continuous im/ro0ement to +ecome a moti0ator. If the cell is de0elo/ed with an o0erstaffed design, then when im/ro0ements
are generated /eo/le will immediatel, need to +e remo0ed from the cell to address /roducti0it, o+Decti0es. )hen o/erating within a union en0ironment, +e sure to include local union management /artici/ation during these design efforts. There will +e issues that arise when o/erating in a union en0ironment that do not arise in a non8union en0ironment. The (e, to im/lementing lean manufacturing in a union en0ironment is o/en and direct communication. How well the need for change and defining HwhatMs in it for meI are communicated to the organiGation at the launch of the /roDect can go a long wa, toward reducing conflict at this Duncture. &umerous issues will arise when dealing with contract la+or, such as fle"i+ilit, across la+or classifications, a limit to Hindi0idual Do+I contract language, method of /a,, ,ears of seniorit,, +um/ing rights, o0ertime allocation rules, etc. It is not that lean manufacturing cannot +e im/lemented in a union o/eration Asee case studiesBJ it Dust requires additional considerations. onflict resolution through Doint /ro+lem8sol0ing is critical to o0ercoming union and com/an, management issues. Limiting disagreements to the facts and not o/inions, agreeing on the direction to +e ta(en and /erformance le0els the com/an, needs to achie0e to sur0i0e and grow, and Doint /ro+lem8sol0ing to achie0e those +usiness results can significantl, influence how far a lean manufacturing im/lementation will go and how quic(l,. The first ste/ in determining the roles and res/onsi+ilities of a cell team is to esta+lish an agreed8u/on focus Ai.e., mission or charterB for the entire team on which the, will concur and can channel their collecti0e energies. This will allow the team to determine the functions required to ma(e the cell wor(. The second ste/ is to assign which functions the cell team mem+ers should and should not do. This is achie0ed +, ma//ing out the o/eration, assigning res/onsi+ilities, and identif,ing the ga/s. The third ste/ is the ;9
de0elo/ment of an o/erational descri/tion or functional s/ecification that defines the required tas(s and res/onsi+ilities. Fnce the functions required to o/erate the cell ha0e +een agreed u/on, team mem+ers for each indi0idual Do+ function can write s/ecific roles. This will not onl, hel/ to eliminate the gra, areas of functional res/onsi+ilit,, +ut it will also clarif, for the human resources de/artment what the new Do+ descri/tions are so the, can utiliGe this documentation to sort out different /a, grades and title changes. In addition, +, in0ol0ing union re/resentation u/ front during the de0elo/ment of roles, the, are cogniGant of the changes and can highlight union contract issues earl, in the /rocess. The, retain ownershi/ for the final /roduct and can more easil, mitigate concerns that ma, arise with the local union management.
)orkforce Preparation
Although we introduced fle"i+ilit, earl, in our discussion of o/erational roles and res/onsi+ilit,, this is where its im/act can +e felt on a minute8+,8minute, hour8+,8hour +asis. Increasing the s/eed of wor(flow through the cell is one of the /rimar, o+Decti0es for lean manufacturingJ therefore, those indi0iduals who actuall, touch the /roduct Asha/e it, mold it, machine it, assem+le it, etc.B are trul, the onl, 0alue8adding acti0it, from the customerMs /ers/ecti0e and need to +e effecti0el, de/lo,ed when /roducing the /roduct. This means each touch la+or em/lo,ee ultimatel, will need to +e ca/a+le of o/erating e0er, /rocess within the cell. This is more easil, said than done, +ut the transformation has to +egin somewhere. A recommended a//roach to initiating
this transformation is to +uild a s(ills matri" A-igure 3.9B, in which the /eo/le in the cell are listed on the y 8a"is and the /rocesses or o/erations to +e /erformed are listed across the to/ on the 0 8a"is. -illing out this matri" gi0es the cell team and cell leaders the means to identif, areas and /eo/le requiring training. A recommended a//roach to soliciting in/ut A+ecause this can +e a 0er, uncomforta+le /art of the cell de0elo/ment /rocessB is for the cell leader to as( his touch la+or /ersonnel@ A5B what the, can do well, and A1B what the, cannot do +ecause of an, limitations Ae.g., union contract, /h,sical conditionsB. *o not as( them what the, cannot do. This is a negati0e a//roach and /uts the em/lo,ee on the defensi0e. It will +ecome e0ident soon enough as to what the, cannot do when the, ha0e to +egin /erforming at multi/le wor(stations. $, incor/orating a 0alidation /rocess to clarif, what is e"/ected of the Do+, and 0alidating /erformance in regard to those clarified e"/ectations, the cell leader will +e
2rgani3ation le!ent
;; a+le to de0elo/ a more accurate /icture of the ca/a+ilit, of the cell. om/anies should de0elo/ a fair and un+iased 0alidation /rocess. In doing so, the, ma, +e a+le to ta(e ad0antage of a s(ill8+ased /a, scenario down the road. In addition to an inquir, as to what the, can do well, as( the em/lo,ee to ran( their s(ills from strongest to wea(est. This will hel/ esta+lish training /lan /riorities. After the matri" is com/lete, ,ou should ha0e a /rett, good idea a+out what areas for im/ro0ement need to +e addressed in the short term. As cell team mem+ers +ecome familiar with their new res/onsi+ilities, accounta+ilit, for /erformance can +egin to +e esta+lished. #alidation of actual /erformance and the use of control mechanisms that loo( at 0ariation from /lan +oth su//ort adherence to standards and dri0e continuous im/ro0ement in the /rocess. It is through this monitoring of the /rocess, that we can (ee/ our o/erational out/ut /erformance in chec(, as we will see in the ne"t cha/ter. :igure ;.4 &ross2"raining Matrix
;4
<
Metrics Element
n com/arison with the other four elements AFrganiGation, Logistics, Manufacturing -low, and Process ontrolB, Metrics AmeasurementB is the element that /ro0ides the /rimar, focus for changing +eha0ior. It is this element that ensures alignment +etween cell8le0el sho/floor acti0it, and higher le0el com/an, +usiness o+Decti0es. It is this connection that is necessar, for lean manufacturing im/ro0ements to a//ear on the +ottom line. This cha/ter will descri+e how em/owerment at the cell le0el to achie0e o/erational o+Decti0es leads to im/ro0ed /erformance, resulting in an im/act on the com/an,Ms +ottom line. The metrics descri+ed will not +e new, +ut the, ma, +e a//lied and managed in a manner that could +e contrar, to
what some com/anies are accustomed. &o matter what com/an, or what industr,, we all ha0e our fair share of metrics. There are metrics on c,cle time, defects /er unit, items shi//ed on schedule, direct la+or cost, return on net assets A!F&AB, o0ertime, /ercentage of wor( orders released on time, cost of qualit,, hours of rewor(, cash flow, in0entor, turno0er, etc. &o com/an, is lac(ing for re/orted measurements of /erformance. It is recogniGed that com/anies are s/ending 0alua+le resources collecting, sorting, anal,Ging, and dis/la,ing these /erformance data and re/orting them on a monthl,, wee(l,, dail,, and sometimes e0en hourl, +asis. If we, as com/anies, are s/ending this much effort on measurement wh, arenMt all of our organiGation /erforming at H+est8in8classI le0elsO )h, are some of our organiGations leading the /ac( while others are falling +ehind and some wa, +ehindO According to Ha,s, )heelwright, and lar( A 1yna!ic Man"*act"ring+ Creating the Learning 2rgani3ation B, it could 0er, well +e a matter of too much data and not enough information@ HMeasurements can /ro0ide useful information to managers who are tr,ing to identif, the sources of their
I
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/ro+lems or the reasons for their success. $ut most measurement s,stems in /lace toda, do not /ro0ide the (ind of information needed +, com/anies that see( to create a com/etiti0e ad0antage through manufacturing.I
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This cha/ter will e"/lore some measurement formats that will enlighten us a+out this situation and will e"/lain wh, an understanding of human +eha0ior /la,s as much of a 0ital role in the success of /erformance im/ro0ement as the metrics themsel0es. )e are what we measure. TIm/ro0ement comes onl, from that which is 0isi+le. TA hidden /ro+lem re0eals nothing. Although these statements ha0e an element of truth to them, the real /ower of measurement comes from an indi0idualMs understanding of the measurement itself. The real tric( to im/ro0ing /erformance comes from an indi0idualMs definition, de0elo/ment, control, and understanding of cause and effect as the, are related to the metric. Metrics that are de0elo/ed +, an outside entit, and forced on a cell team are not li(el, to /roduce desired results. Metrics defined and de0elo/ed +, a cell team ha0e a higher li(elihood of resulting in a /ositi0e correlation +etween acti0it, on the sho/ floor and desired /erformance. Understanding of the measurement, ownershi/ of its results, and control o0er the factors that ma(e it rise or fall are all im/ortant features necessar, for the successful de/lo,ment of a measurement s,stem. This area of measurement will +e loo(ed at from se0eral different /ers/ecti0es@ 5. *uPont model Aa com/an, 0iewB 1. Fut/ut8+ased measures Aa cell teamMs resultsB 3. Process8dri0en measures Ainfinite continuous im/ro0ementB 4. 7oal alignment through /olic, de/lo,ment 9. Measurement definition and understanding A/ower to the /eo/leB
3uPont Model: A &ompany *ie,
The *uPont model A-igure 4.5B, which was de0elo/ed +, a -rench engineer in the 5;42s, is an e"cellent tool to use to generate a Hwhat if I anal,sis utiliGing a com/an,Ms income statement and the +alance sheet. These time8honored instruments of the financial communit, are /i0otal documents for reflecting the o0erall health of a com/an,. It is through the intersection of these documents that the *uPont model +ecomes 0alua+le as a /erformance measure.
Metrics le!ent
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$eginning &et Assets
:igure <.6 3uPont Model
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$, +uilding relationshi/s +etween /articular line items it is /ossi+le to /roduce se0eral different ratios as indicators of /erformance trends. In addition to monitoring trends, these ratios can ser0e as /oints of reference for industr, com/arisons, as well as a guide for esta+lishing o/erational goals. Achie0ement of these goals can +e /la,ed out through a Hwhat ifI scenario to determine whether im/ro0ement through a change in sales, an increase in asset turno0er, or lower in0entor, le0els will su//ort o/erational o+Decti0es. -or e"am/le, if the /lant can reduce in0entor, +, 15S, then total assets will decrease and the asset turno0er ratio will increase +, ;S. )ith all other elements remaining equal, this will im/ro0e the return on in0estment A!FIB calculation +, 9S. A second e"am/le would +e if the cost of goods sold A F7SB is reduced +, :S, then total costs will decrease and net /rofit will im/ro0e +, 4S. )ith all other elements remaining equal, this will im/ro0e the /rofit margin calculation +, 1S. This /erformance measurement method is useful at the to/ le0el within an organiGation to esta+lish o0erall goals and o+Decti0es within the +usiness. It is not designed for use at the cell le0el, where financial measurements tend to +e less tangi+le. At the sho/ floor, in most cases it is +etter to utiliGe more tangi+le, /h,sical measures of /erformance.
utput2Based Measurements: A &ell "eamJs Results

T,/icall,, the onl, e"isting e0idence of measures on the sho/ floor are measures +ased on /erformance for a s/ecific indi0idual em/lo,ee or /iece of equi/ment Ae.g., how man, hours were /ut in ,esterda, +, -red, or how man, /arts came off machine num+er 439 last shift, or what the ,ield of the drilling /rocess was last hourB. These are all measures of how a /articular ste/ in the /rocess is /erforming, and the, focus on what is called locali3e& o)ti!i3ation . om/anies monitor indi0idual o/erations in the manufacturing /rocess and assign accounta+ilit, and ta(e correcti0e action +ased on them. The /ro+lem with this t,/e of measurement is that it@ A5B dri0es the wrong +eha0ior for continuous im/ro0ement, A1B does not reall, ha0e /roduct accounta+ilit, focused on the customer, and A3B rewards o/timiGation of the indi0idual o/eration +, sacrificing /erformance of the /rocess as a whole. Again referring to Ha,s, )heelwright, and lar( A 1yna!ic Man"*act"ring+ Creating the Learning 2rgani3ation B, on the su+Dect of /roduct8focused 0s. /rocess8focused o/erations@ HA /roduct focus, on the other hand, is generall, easier to manage +ecause of its smaller siGe and total res/onsi+ilit, for a
Metrics le!ent
;? /articular /roduct or customer. This usuall, results in shorter c,cle times, faster res/onse to mar(et changes, less in0entor,, lower logistics costs, and, of course, lower o0erhead.I
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-ollowing this theme of +eing /roduct focused, a more effecti0e measurement s,stem would +e one that esta+lishes out/ut8+ased measurements for the cell team around tangi+le /roducts that go to a customer. These t,/es of measures /ro0ide feed+ac( on the /erformance of the o0erall /rocess relati0e to the customer. Fut/ut8+ased measures assign accounta+ilit, for all the o/erations contained within the manufacturing /rocess. !es/onsi+ilit, is Hcradle to gra0eI for the /roduct. A focus on out/ut measures dri0es continuous im/ro0ement in that someone is accounta+le to an end customer for the /erformance of a /roduct and has the res/onsi+ilit, to correct an, /ro+lems encountered +, that customer. Two measures that can alwa,s +e used as out/ut measures are /roduct qualit, Ae.g., ,ield, defects /er unit, returnsB and /roduct deli0er,. Lac( of /erformance in these areas affects the customer /h,sicall,. Price is o+0iousl, another measureJ howe0er, it does not /h,sicall, affect the customer the same wa, as not ha0ing a /roduct or ha0ing a /roduct that does not wor(. These measures can usuall, +e esta+lished quite easil,J the difficult /art is determining organiGational accounta+ilit, for the /erformance. If the com/an, fails to address this alignment, the /rogress toward continuous im/ro0ement will +e limited to localiGed o/timiGation and the o/eration will miss the +ig o//ortunit,.
Process23ri(en Measures: Infinite &ontinuous Impro(ement

There are two other measurements worth, of discussion which are readil, understood +, the sho/ floor and can +e utiliGed to dri0e continuous im/ro0ement +eha0ior. Fne is /rocess c,cle time and the other is /rocess qualit, measured 0ia roll8through ,ield A-igure 4.1B. !oll8through ,ield is the cumulati0e /erformance of each o/eration in a /rocess. The idea here is that, if a com/an, is +uilding +etter and +etter /roducts and deli0ering them in less and less time, then there should +e a /ositi0e correlation to total /roduct cost. If ,ou are s/ending less time rewor(ing defects, re/lacing scra//ed material, mo0ing assem+lies around the sho/, and waiting for com/onent /arts, then o0erall /roducti0it, will im/ro0e. )hen a manufacturing o/eration allows onl, first8qualit, /roducts to /roceed to the ne"t o/eration and does not let material sit around in the sho/, then the organiGation is focusing its efforts on the acti0ities necessar, to sustain continuous im/ro0ement. <@
Goal Alignment "$roug$ Policy 3eployment

)e ha0e met the enem, and he is usU An,one who has tried to align a +ureaucrac, and mo0e it in one direction can certainl, relate to this statement. $etween the +usiness /olitics, functional silos, misinformation, and lac( of information, it can +e quite the chore. How, then, does one accom/lish this seemingl, unachie0a+le tas(O It can +e done through the use of consistent /olic, de/lo,ment. Another term would +e (oshin )lanning , which was originall, used +, the Ea/anese A-igure 4.3B. The maDor intent +ehind /olic, de/lo,ment is to steer an entire organiGation in the same
o0erall direction. )hen an entire organiGation is /ulling in the same direction, it is much easier to ta(e correcti0e action and adDust the course. If a com/an, is /ulling in se0eral different directions, not onl, does it use u/ a tremendous amount of energ,, +ut it also is more difficult to realign to a new direction. As a com/an, +egins to define its direction through a sim/le mission statement, it must esta+lish a strateg, that achie0es that mission. In turn, this strateg, +ecomes su//orted +, s/ecific o/erational o+Decti0es that must +e e"ecuted and coordinated across the organiGation. It is at this /oint that alignment through /olic, de/lo,ment is required. Polic, de/lo,ment can +e com/ared to requirements cascading down a staircase. At each le0el within the +usiness, a se/arate set of o+Decti0es and goals can +e defined. A statement of the o+Decti0es at a di0ision le0el would +e different than those at a de/artment or sho/ floor le0elJ ne0ertheless, the, can all +e aligned to the same com/an, o+Decti0e. -or instance, A$ om/an, wants to increase mar(et share +, 52S in a /articular segment of the glo+e, and the, ha0e determined
:igure <.9 Process23ri(en Metrics
Metrics le!ent
<6 that the wa, to accom/lish this is through im/ro0ing the s/eed of /roduct deli0er, to the customer. This requires a /erformance change from a 38wee( lead8time down to 5 wee(. In order to achie0e this, manufacturing and /urchasing ha0e s/ecific actions the, must ta(e that su//ort this com/an, o+Decti0e. Manufacturing needs to re0iew how /roduct is flowing through the factor, toda, and see where the, ha0e waste in the /rocess. The, need to 0erif, if the necessar, s(ills and ca/acit, are a0aila+le to handle the increased 0olume. Purchasing needs to wor( with the su//lier +ase to reduce re/lenishment lead8time so in0entor, le0els do not rise along with the increased 0olume and to ma(e sure that communication channels for changes in demand are timel,. The demonstrated alignment of these o+Decti0es in the /lanning stages and the constant communication feed+ac( during im/lementation allow /olic, de/lo,ment to wor(. It /ro0ides total 0isi+ilit, to the organiGation so that e0er,one can see where the, fit into the success of the com/an,. It focuses the organiGation on /lanning the wor( and wor(ing the /lan. The regular re/orting of /rogress is necessar, in order to understand the current status and to ta(e correcti0e action. FrganiGations are a s/ider we+ of interrelationshi/sJ therefore, it is im/erati0e that each function understands the im/act of +usiness changes on the other functions. :igure <.; +os$in Planning Process <9
An organiGation should limit itself to three to fi0e com/an,8wide initiati0es at an, one time. An, more than that lea0es a /late that is too full and detracts from the o0erall focus of the com/an,. There will +e too man, V5 /riorities and not enough resources to co0er all commitments. Initiati0es will ta(e longer to com/lete, and the qualit, of the deli0era+les will suffer. Kee/ the /late managea+le. As one /roDect finishes u/, add a new initiati0e and dri0e each to com/letion. Polic, de/lo,ment does not guarantee that a com/an, will ma(e its goalsJ howe0er, it is /racticall, guaranteed that a com/an, will not reach its goals if it cannot e0en achie0e them on /a/er.
Measurement 3efinition and -nderstanding
Indi0iduals are more li(el, to stri0e and achie0e a /erformance target the, understand as o//osed to one the, do not. If measures are +eing /osted in a wor( area +, an outside entit, and are not com/letel, understood +, those +eing measured, it is not li(el, that /erformance in that area will im/ro0e. If /eo/le cannot descri+e their measure of /erformance, do not own that measure, do not re/ort on the measure, nor understand cause and effect relati0e to the measure, then it is unrealistic to e"/ect the measure to im/ro0e. Here, we can draw u/on the e"/erience of Eohn 7. $elcher, long8time 0ice /resident of the American Producti0it, enter, who stated in his +oo(, Pro&"ctivity Pl"s+ (ow To&ay7s Best R"n Co!)anies Are Gaining the Co!)etitive &ge @ HAn organiGation that tries to realiGe significant /roducti0it, im/ro0ement without the /artici/ation and su//ort of its em/lo,ees is wor(ing against itself. It doesnMt ma(e much sense to em+ar( u/on a maDor underta(ing when the +ul( of the organiGation misunderstands C or worse ,et, resists C the o+Dect of that underta(ing.I
5
In order for a cell team measurement s,stem to wor(, it is necessar, that the metrics +e defined, owned, controlled, monitored, and understood +, those using the measure A-igure 4.4B.
:igure <.< Measurement
Metrics le!ent
1Becti(es
<; To engage indi0iduals in the im/ro0ement /rocess, the, must +e /art of the de0elo/ment of that /rocess. The, need to understand where the, fit in and how the, affect the outcome. It does no good to create a metric in a 0acuum, +ring it to the floor, /ro0ide no definition as to what the measure means, collect the data off8line, ha0e someone outside the area re/ort on the metric, and then e"/ect /eo/le to im/ro0e their /erformance. To o0ercome this tendenc,, it is ad0isa+le to select a handful of desired outcomes Athree to fi0eB and wor( with the cell team to de0elo/ a//ro/riate measures for those desired outcomes. *o not clutter an area with the to/ 19 measures for that o/eration. -irst of all, such /ostings ta(e u/ s/ace and get in the wa,J second, the, are not as meaningful to those in the cell. -acilitate agreement among the team a+out common definitions, identif, where the data will come from, select those who will re/ort /rogress, and esta+lish an e"/ected target /erformance le0el. $e sure to /ro0ide insight as to how /erformance of the measure can +e im/ro0ed in relationshi/ to the desired target le0el. It does no good to e"/ect a target le0el that no one (nows how to achie0e. $e cogniGant of the fact that the measurement s,stem that is de0elo/ed +ased on the needs of toda, could change to meet the needs of tomorrow. Measurements will change +ased on the mar(et, the customer, different le0els of /erformance, and changing com/etiti0e /riorities. Again referring to Making Man"*act"ring Cells $ork +, Ingersoll .ngineers, change is a constant, and loc(ing into one /articular measure toda, could render a com/an, uncom/etiti0e tomorrow@ HAn, change in items such as /roduct, deli0er,, machines, or tooling ma, well cause changes in the need for certain t,/es of /erformance measures. om/anies mo0e ra/idl, into and out of mar(ets and otherwise change +usiness strateg, to adDust to e0er8changing com/etiti0e /ressures, and e"isting /erformance measurements must +e continuall, re0iewed in res/onse to these changes.I
53
This cha/ter has focused on a short list of metrics that can effecti0el, guide an organiGation on its /ath to sustained continuous im/ro0ement. It has demonstrated how the sho/ floor can +e lin(ed to a com/an,Ms o/erational o+Decti0es. It has also tried to em/hasiGe the element of measurement that requires an understanding of human +eha0ior and its im/act on desired /erformance. The ne"t cha/ter +egins to re0eal where these measures can wor( as control /oints in monitoring /erformance +etween customers and su//liers.
<4
4
'ogistics Element
t is now time to address the element re/resenting the greatest o/erational challenge C Logistics. This is the area in which all the old rules of o/erating the sho/ floor are challenged. This is where the turf wars are fought, functional silos are +rought down, indi0idual (ingdoms are destro,ed, worlds are dominated, uni0erses are lost T well, ma,+e not quite that +ig a challenge. &e0ertheless, now that res/onsi+ilit, and accounta+ilit, ha0e +een dri0en down to a lower le0el within the com/an,, a different set of rules a//lies and some new techniques will need to +e utiliGed. This new wa, of doing +usiness in0ol0es changing not onl, the formal documented /rocess for /lanning and control, +ut also the informal, timetested sho/floor rules that ha0e +een ingrained within the organiGationMs culture o0er the ,ears. Therefore, a lean manufacturing im/lementation is not onl, changing documented /rocedures and /h,sical material handling methods, +ut it is also /lacing stress on an informal s,stem that has +een used for ,ears. This informal s,stem is usuall, more difficult to com+at. To a//reciate how strong the informal s,stem within an organiGation can +e, as( ,ourself how quic(l, and effecti0el, rumors /ass through ,our organiGation. .nough said. This +eing the case, it +ecomes /ainfull, o+0ious that the communication /lan Aidentified in ha/ter 3B is of /aramount im/ortance to the success of an im/lementation. .m/lo,ees need to understand wh, their informal s,stem is +eing challenged and what this im/ending change will do to affect their wor( /lace. This term logistics can mean se0eral different things to different /eo/le, so we will clarif, its definition here. The term, in this conte"t, refers to those o/erational elements required to transfer wor( to a cell, through that cell, and from one cell to the ne"t. It is /rimaril, those in8+ound, internal, and out8+ound as/ects of /lanning and controlling the flow of wor( that are
I
<=
in0ol0ed in this element. -ollowing is a descri/tion of the sco/e of each of
these as/ects C in8+ound, internal, out8+ound A-igure 9.5B@ 5. 8n6bo"n& includes all acti0ities related to getting raw material, /rocured items, and other direct or indirect manufacturing items to their res/ecti0e /laces of consum/tion. -unctions such as /rocurement and su+contract management and items such as engineering drawings, /rocess s/ecifications, and tooling are all associated with in8+ound logistics. 1. 8nternal has to do with those items required to facilitate the flow of wor( through the cell. These items in0ol0e cell team mem+ers Ae.g., cell leader, /roduction engineer, sho/ touch la+or, /roduction controlB and include such /h,sical elements as materials or /urchased /arts, /roduction tooling, equi/ment, Kan+ans, /riorit, listings, etc. 3. 2"t6bo"n& relates to those items required to e"it from the su//lier cell and arri0e at a customer or customer cell. Items such as customer identification, a negotiated deli0er, quantit,, (it definition, su//lierheld in0entor,, mode of trans/ortation, ownershi/ e"change /oints, etc. are all areas of focus for this as/ect. &ow that a general idea of sco/e and +oundar, has +een esta+lished, the 0arious /rinci/les in0ol0ed with the logistics /rocess can +e e"/lored indi0iduall,. Fur focus in this cha/ter will +e on@
:igure 4.6 'ogistics Scope
Im&rove the &rocesses '! $hich materials( &urchased &arts( tooling( engineering data are &rovided to the cell) Im&rove the material flo$ of com&onents to( through( and onto the next cell) Im&rove the customer* su&&lier relationshi&s 'et$een the cell and its customer 'ase)
In2Bound Items:
H Parts H 3ra,ings H "ools
Internal Mem1ers:
H &ell leader H Prod. &ontrol H perators
ut2Bound Items:
H Products H "ransportation H Information Logistics le!ent
<5 5. Planning/control function a. Priorit, /lanning Aforward /lanB +. a/acit, /lanning Awor(loadB c. a/acit, control Ain/ut/out/ut controlB
d. 1. 3. 4. 9. =. :. >. ;.
Priorit, control Adis/atch listB A,$, material handling Ser0ice cells ustomer/su//lier alignment Eust8in8time AEITB Kan+an demand signals ell team wor( /lan Le0el loading Mi"8model manufacturing )or(a+le wor(
Planning/&ontrol :unction
The /lanning/control function e"ercised within a cell can go +, se0eral names Ae.g., constraint scheduling, release and control, wor(flow managementB and ,et still mean the same in terms of functionalit,. The /lanning/control function descri+ed here requires that s/ecific wor( rules +e utiliGed during the o/eration of a cell. !emem+er that the Logistics element has as much to do with changes in wor( rules as it does with /h,sical /rocess changes. ."am/les of some of the standard o/erational wor( rules ma, include@ ? *o not load the cell equi/ment o0er ;2S of demonstrated ca/acit,. ? *o not release wor( inside a0erage actual lead8time. ? !elease onl, wor(a+le wor( to the cell. ? Sequence wor( +, using first8in/first8out /rioritiGation. ? *o not release wor( without an authoriGing Kan+an. These are o/erational wor( rules that are to +e de0elo/ed, defined, and documented +, the cell team mem+ers. Through the education and training Arecei0ed 0ia the FrganiGation elementB, the cell team will ha0e a +etter understanding of the need for new wor( rules, and, +ecause the, ha0e de0elo/ed and defined those rules, there is greater ownershi/ for them as a team. These wor( rules are not intended so much to reduce fle"i+ilit, as the, are to facilitate consistenc,, structure, and continuit, among team mem+ers for o/erations of the cell. This colla+orati0e a//roach to wor( rules in actualit, will enhance +oth the res/onsi0eness and /redicta+ilit, of cell /erformance, es/eciall, within a multi8shift en0ironment. <>
Planning and control are critical functions that contri+ute to the successful im/lementation of the cell. Fften times, those indi0iduals onl, focusing on utiliGing Dust8in8time AEITB and Kan+an material /ull o0erloo( these functions. The initial im/lementation and su+sequent da,8to8da, o/erations of a cell are greatl, influenced +,@ A5B how e"ecuta+le the /lan is, and A1B how ro+ust the control mechanism is. There e"ists a strong relationshi/ +etween these functions, as the +etter the /lanning effort, the easier the control effort. The criticalit, of this relationshi/ was em/hasiGed +, the Ea/anese master of /roduction engineering, Shingo Shigeo A /on6Stock Pro&"ction+ The Shingo Syste! *or Contin"o"s 8!)rove!ent B@ HIf the /lanning le0el is a+out >2 /ercent, control /recision need onl, +e around 12 /ercent. If the /lanning le0el is a+out 92 /ercent, control /recision needs to +e around 92 /ercent.I
12
There are four +asic as/ects to /lanning/control within a cell A-igure 9.1B, and each is e"/lained in detail in the following discussion.
Priorit! Planning +,or$ard Plan-
This as/ect is concerned with /lanned or future wor(load requirements, which are normall, fed to the cell +, a manufacturing resource /lanning AM!P IIB or some other requirements /lanning s,stem. Lean manufacturing in no wa, a+olishes the need for requirements /lanningJ rather, it actuall, requires it in order to@ A5B esta+lish cell design criteria, A1B /lan short8term wor(loads A5 to 4 wee(sB, A3B /erform ma(e/+u, anal,ses, and A4B communicate future demand needs to u/stream su//liers. A com/an,Ms current requirements /lanning s,stem is usuall, adequate enough to /ro0ide the required information for a lean manufacturing en0ironment.
:igure 4.9 Aspects of Planning and &ontrol
Logistics le!ent
<?
Ca&acit! Planning +
orkload-
This function is necessar, for the cell team to re0iew and agree u/on the u/coming wor(load, man/ower, and o0ertime requirements necessar, to satisf, customer /erformance e"/ectations. This ca/a+ilit, allows the cell team to determine its own destin, and /ro0ide in/ut into the decision /rocess that controls end /roduct /erformance. The cell le0el 0isi+ilit, to future wor(load fluctuations can then +e mitigated +, the cell team through le0el loading, off8loading, lot siGe s/litting, /lanned o0ertime, etc.
Ca&acit! Control +In&ut*Out&ut Control-
The cell team is held accounta+le to manage /erformance to /lan. a/acit, control is used as a control de0ice to /ro0ide the cell team with the ca/a+ilit, to maintain wor(load 0isi+ilit, and monitor /rogress to /lan. The, are gi0en the o//ortunit, to ta(e credit for achie0ing an o/erational goal or are /ro0ided with the a+ilit, to ta(e swift correcti0e action when /erformance is falling off the mar(. Managing queue siGes is /aramount to meeting leadtime commitments. If actual queues are e"ceeding /lan, then /romise dates to customers will +e missed and customer confidence will diminish. Leadtime 0aria+ilit, Aa true menace to man, deli0er, /ro+lemsB is a direct reflection of how well actual queue times are (e/t in control.
Priorit! Control +.is&atch /istThe sequence +, which wor( is introduced to the cell will +e a function of three things@ A5B Is there a customer demandO .0en though there is a /lanned requirement for an item, until there is a demand /ull signal from the customer, there is no real need for the item. A1B Is there enough ca/acit,O Until ca/acit, has +een cleared or a Kan+an container +ecomes a0aila+le to introduce more wor( into the cell, it cannot release wor(. If wor( was released, wor( in /rocess would increase +e,ond the cell design /arameters, queues would grow, and lead8time would increase. A3B Is the wor( /ac(age a0aila+leO Unless all the items necessar, to wor( a Do+ ha0e +een made a0aila+le, wor( cannot +e released to the cell. If incom/lete wor( /ac(ages were released to the cell, the, would e0entuall, sto/. The, then would ha0e to wait for resources to +e a//lied to +rea( it loose, and the wor(flow would +egin to +ac(log. 4@
A#B#& Material +andling
In a lean en0ironment, controlling the flow of material and managing in0entor,
will change under the new o/erating rules for material handling. Instead of managing each and e0er, /art e"actl, the same wa,, /arts will +e reclassified +ased on their demand +eha0ior characteristics. -or instance, a large, com/le" machined /art weighing 922 /ounds with 522 hours of machine time would +e scheduled and controlled differentl, than a nic(el/dime cli/ or +rac(et. The amount of time, mone,, and resources required to manage in0entor, should +e com/ara+le to the +eha0ior characteristics of the /art or com/onents. Parts should +e stratified according to a gi0en criteria so that an a//ro/riate amount of effort is e"/ended on managing the /art re/lenishment /rocess. Parts or com/onents can +e segregated along an A,$, t,/e of classification A-igure 9.3B. This a//roach differs slightl, from ParetoMs >2/12 ruleJ howe0er, the a0erage /art /o/ulation still falls along the normal 59/39/92 /ercentage s/lit. -or e"am/le, /arts that are e"/ensi0e, more com/le" to +uild, and often e"hi+it long lead8times should +e considered HAI /arts. The, should +e scheduled with su//liers either A5B with trans/ortation /i/eline Kan+ans Aes/eciall, with high80olume /roductB, or A1B directl, through M!P II Afor low80olume /roductB, Dust as in most /lants toda,. H$I /arts are usuall, less com/le", ha0e shorter and more /redicta+le lead8times, are less e"/ensi0e, and are small enough to +e (itted Aif requiredB. These can +e re/lenished 0ia Kan+ans and can /ossi+l, +e +uilt on demand. These /arts could +e +uilt
:igure 4.; A#B#& Material +andling
Logistics le!ent
46 and deli0ered in negotiated +atch siGes or in /redetermined (its Aif requiredB. If the demand 0olume is low or highl, 0aria+le, it ma, ma(e more sense to re/lenish these /arts 0ia M!P II or through nonre/etiti0e Kan+ans. $, far the maDorit, of /arts A92SB would find themsel0es in the H I categor, and could +e managed directl, through a 0endor8managed reorder /oint or Kan+an s,stem. These /arts would a//ear on the +ill of material, +ut would not +e scheduled /er M!P II and therefore would require minimal man/ower to manage.
Ser(ice &ells
In an ideal world, all /arts would +e manufactured com/lete within a gi0en cell. All the necessar, manufacturing /rocesses would +e located in that cell and the /arts would ne0er ha0e to lea0e the cell. !aw material would come in and a com/letel, finished /art Aread, for consum/tion +, the customerB would go out the other side. &ow, if ,ou currentl, ha0e this scenario o/erating within ,our /lant, then /ass +, this section +ecause it does not a//l, to ,ou. Howe0er, if ,ou are li(e the maDorit, of the manufacturing communit,, ,ou certainl, do not ha0e enough ca/ital to full, /o/ulate ,our cells in this manner. This section will /ro0ide an o/tion for ,our facilit,. Ha0e ,ou e0er +een to a dr,cleaner with a load of shirts and read the sign out front, HIn +, ;, out +, 9OI Ha0e ,ou e0er +een to a train station and ridden on a trainO *id ,ou notice how the conductor continuall, chec(s his watch and monitors the time in the stationO He is ma(ing sure the train enters and lea0es the station on time. At >@22 a.m., for e"am/le, announcing Hall a+oardI indicates that the train is lea0ing the station. An,one there can +oard, and those who are not there will ha0e to wait until the ne"t scheduled train arri0es. )hat if certain ca/ital8intensi0e manufacturing o/erations were set u/ to run in the same mannerO The a+o0e8mentioned scenarios descri+e two t,/es of rules that can a//l, with ser0ice cells A-igure 9.4B. These ser0ice areas are designed to su//ort cells that are manufacturing /roducts. Their o+Decti0e is to satisf, the needs of the manufacturing cells and to /ro0ide a /redetermined le0el of ser0ice or turnaround for a /articular /rocess.
$ecause, as we learned earlier, manufacturing cells are accounta+le for the /roduct from cradle to gra0e, the, +ecome highl, de/endent on ser0ice cells to /ro0ide consistent, /redicta+le /rocess turnaround. This le0el of de/endenc, strengthens the customer/su//lier relationshi/ and ties in directl, with the Metrics element that we e"/lored in ha/ter 4. 49
&ustomer/Supplier Alignment
)hen com/anies /a, homage to the terms c"sto!ers and s"))liers , it is normall, the t,/e of Hmotherhood and a//le /ieI li/ ser0ice that does not mean much in the wa, of su+stance. In order for lean manufacturing to trul, function, direct lines of communication +etween customers and su//liers must +e identified and strengthened. -or e0er, /roduct /roduced within a manufacturing cell, there is a corres/onding customer or customer cell that will +e consuming that /roduct. )hether the su//lier cell is /art of an internal customer/su//lier relationshi/ within a multi8/lant facilit, or /art of a larger su//l, chain in0ol0ing se0eral different com/anies, the same adage a//lies@ alignment with the customer. ell mem+ers should recogniGe who utiliGes their /arts and (now if those /arts are satisf,ing the customerMs fit, form, and function requirements. Are the, /ac(aged correctl,O Is there a +etter (itting /rocedure that could +e utiliGedO an we negotiate a +etter deli0er, quantit, to hel/ our total /roduct costO )ho do the, call when there is a qualit, /ro+lem with the last /arts that were recei0edO These are all legitimate questions that can +e as(ed and answered when there is direct alignment +etween customers and su//liers. Fne wa, to +egin esta+lishing this alignment relationshi/ is to@ 5. !un a Hwhere used/recei0ed fromI list off the +ill of material for all /arts/com/onents that are assigned to a gi0en cell. 1. Sort the /arts +, four categories@ customer, 0olume, cost, and destination, which allows /rioritiGing in0estigati0e efforts. 3. all on the +iggest customers or su//liers first to assess their needs and +egin negotiating wa,s of im/ro0ing the su//l, chain.
:igure 4.< Ser(ice &ell Relations$ip
Logistics le!ent
4; In addition to ca/turing the /art num+ers, a /rocess ma/ of the acti0ities for the cell can +e 0er, useful. $, utiliGing a format of su//lier8in/ut8 /rocessout/ut8 customer ASIPF B, a great deal of information can +e o+tained in regard to in/ut requirements for the /rocess and out/ut requirements of the customer. $, ca/turing the (e, acti0ities within a /rocess Ae.g., a cell, su//lier interface, shi//ing, order administrationB and categoriGing them according to 0alue8adding or non80alue8adding, significant insight into the /erformance of a /rocess can +e o+tained. !emem+er that this is documenting acti0ities, not tas(s. Kee/ing the /rocess ma/ at the a//ro/riate le0el of detail can +e difficult. Acti0ities are focused on the 0er+8noun Aaction to an o+DectB relationshi/ of functions in a /rocess, while tas(s are more the /roceduralle0el ste/s for those acti0ities. To (ee/ this distinction straight, tr, using the guidelines set +, ol(ins in his Activity6Base& Cost Manage!ent+ Making 8t
$ork+ A Manager7s G"i&e to 8!)le!enting an& S"staining an **ective ABC Syste! @ HA good rule is to thin( of acti0ities as what /eo/le do and the tas(s that ma(e u/ acti0ities as how the /eo/le /erform acti0ities.I
1
Kust2in2"ime EKI"F Aan1an 3emand Signals

A multitude of methods can +e e"ercised when utiliGing /ull signals A-igure 9.9B. The, include cards, standard containers, em/t, squares on the sho/ floor, electronic messages Ae.g., fa"es, e8mails, .*I, e8commerceB, among
:igure 4.4 Kust2in2"ime EKI"F 3emand Pull Signals
4<
others. All of these methods ha0e se0eral as/ects in common. -irst, the demand signal re/resents the authoriGation to +egin wor(. Second, no Do+ is to +e released for wor( without a demand authoriGation from the customer. Third, the demand signal controls the amount of wor( in /rocess allowed in the su//l, chain. -ourth, the num+er of Kan+ans in the s,stem will determine the amount of wor( in /rocess for the chain. This scenario gi0es the cell the a+ilit, to control 0aria+ilit, in lead8times, as queues are una+le to grow +e,ond the num+er of calculated Kan+ans. -ifth, no one is allowed to (nowingl, /ass defects on to the ne"t o/erationJ defects are to +e sto//ed when the, are found and correcti0e action incor/orated immediatel,. Si"th, wor(flow is /rioritiGed on a first8in/first8out A-I-FB +asis. This not onl, a//lies to the scheduling of wor( into the cell, +ut also the /h,sical handling of material. The /h,sical in0entor, turno0er of material is Dust as im/ortant as the financial in0entor, turno0er of material. These as/ects of managing Kan+ans are summariGed in the following rules@ 5. A Kan+an demand signal is the authoriGation to +egin wor(. 1. &o Do+ is to +e released without demand from the customer. 3. The Kan+an controls the amount of wor( in /rocess allowed in the flow. 4. The num+er of Kan+ans will control the manufacturing lead8time through queue management. 9. *o not /ass (nown defects on. =. UtiliGe first8in/first8out A-I-FB material flow. Kan+ans can +e set u/ +etween wor(stations, +etween wor(stations and /oint8of8use APFUB locations, +etween cells and central stores, +etween assem+l, cells and fa+rication cells, +etween fa+rication cells and e"ternal su//liers, and +etween assem+l, cells and customers. .ach relationshi/ will ha0e its own indi0idual issues to address as to location, siGe, quantit,, ownershi/, shelf life, weight, etc. -or the /ur/oses of general discussion in this section on methodolog,, there will +e two t,/es of Kan+an material /ulls, one de/icted as intra8cell Ainternal to the cellB and one as inter8cell Ae"ternal to the cellB. .ach has a relationshi/ with /roduction cells and the o0erall o+Decti0e for Kan+an demand signals. The t,/e of Kan+an methodolog, de/lo,ed is 0er, de/endent on the manufacturing en0ironment, the rece/ti0it, to change of an organiGationMs culture, and a su//lier/customerMs moti0ation for /artici/ation. The more difficult the en0ironment, the more ro+ust a /rocess required. &o one (nows the manufacturing en0ironment +etter than each indi0idual com/an,J therefore, each
Logistics le!ent
44
com/an, is in the +est /osition to determine which method to use. Howe0er, no matter what method is chosen, the si" rules for managing Kan+ans still a//l,.
&ell "eam )ork Plans

As was mentioned in ha/ter 3, a lean manufacturing cell o/erates as a team com/letel, focused on deli0ering a /roduct to a customer. -or this team to function as one cohesi0e unit, the, must agree on how the, will o/erate. .arlier, in the /lanning/control section, the idea of a forward /lan was introduced. This /lan /ro0ides a future loo( at the /roduction requirements coming to the cell o0er the wee(. The cell team re0iews this forward /lan, ensures that the, ha0e enough ca/acit, and resources to ma(e this /lan Aif not, the, will ma(e the /ro/er adDustmentsB, and agree, as a grou/, to e"ecute this /lan. This wa, there is +u,8in to the schedule +, all the team mem+ers. The, own the /erformance o+Decti0es for the ne"t wee( and the, ha0e de0elo/ed s,nerg, around the /lan. This re0iew /rocess should ta(e /lace on a regular +asis Ae.g., wee(l,B and +ecome /art of the routine management of the cell. The cell leader should antici/ate facilitating this discussion, and the su//ort /ersonnel should /lan on /erforming an anal,sis on the data +efore /resenting it at the meeting. The meeting can then mo0e along efficientl, and with little wasted effort. This ma, a//ear to +e a sim/le, common8sense acti0it,, +ut it is sur/rising how man, cell im/lementations ne0er utiliGe this acti0it, and later wonder wh, the cell teams are not achie0ing the targeted o+Decti0es and are floundering without a common focus.
'e(el 'oading
According to one of the leading authorities on su//l, chain management, )illiam . o/acino, in his +oo( S"))ly Chain Manage!ent+ The Basics an& Beyon& , there are four /rerequisites or /illars required for a EIT s,stem to function /ro/erl,@ HIf EIT logistics /lans are to wor(, four /illars must +e in /lace T sta+le /roduction schedules, efficient communication, coordinated trans/ortation, qualit, control.I
4
It is one of these /rerequisites C a relati0el, le0el /roduction schedule o0er a defined /eriod of time C that is the su+Dect of this section. In order to align customer demand with ta(t time Asee ha/ter =B, a need e"ists to le0el demand at a rate that is conduci0e for +oth the su//lier and the customer. 4=
$, /resenting the customer8forecast information in units /er da, or wee(, an understanding as to the demand /attern and 0olume 0ariation for a gi0en set of /roducts can +e anal,Ged. This information /ro0ides insight into the de0elo/ment of a le0el rate8+ased schedule for a /roduction cell. This le0el rate8+ased schedule of demand o0er a gi0en /eriod of time is onl, for /roducts that fit a rate8+ased demand /attern which demonstrates a relati0el, high 0olume of demand, a consistent customer order frequenc,, and limited 0olume fluctuation. $, utiliGing a rate8+ased schedule A-igure 9.=B, these /roducts are scheduled less often Ae.g., once a monthB and are designed to +e /roduced at a gi0en rate for a gi0en /eriod of time. !ealiGing that demand does change, customer demand /atterns should +e monitored on a regular
+asis and the scheduled rate adDusted accordingl,. To de0elo/ a rate8+ased schedule, ta(e the forecast information in units +, da, or wee( and com/ute a monthl, a0erage. Then, com/are the forecast monthl, a0erage to the +oo(ed orders and de0elo/ a rate of /roduction from the higher of the two num+ers. This is done in order to +uffer against 0ariation in customer demand. This methodolog, is similar to the total demand /rocess tal(ed a+out +, ostanGa in The 9"ant"! Lea)+ 8n S)ee& to Market+ HThe definition of total demand inside the *emand time fence is the sum of actual customer and finished goods re/lenishment orders. Total demand outside the *emand time fence is the greater of the forecast and actual customer orders.I
9
-rom this /oint, the /roduction cells can commit to a /roduction schedule on a wee(l, +asis and +e held accounta+le for achie0ing their /lanned out/ut. As was stated earlier, not e0er, /roduct has a demand /attern conduci0e to rate8+ased scheduling, +ut for those that do, this can +e a 0er, effecti0e methodolog,.
:igure 4.= Rate2Based Sc$edule
Logistics le!ent
45
Mix2Model Manufacturing
There are manufacturing cells with wor(stations that can +e designed to /roduce a 0ariet, of /roducts and 0olumes o0er a gi0en time frame. These cells are ca/a+le of /erforming what is (nown as mi"8model manufacturing A-igure 9.:B. The criteria for designing these t,/es of cells requires that the /roduction /rocesses +e relati0el, consistent from /art to /art without a significant amount of 0ariation in the /rocess. In addition, these cells usuall, contain a highl, fle"i+le wor(force, ha0e limited 0ariation +etween wor( content times for each o/eration, and can change o0er +etween /roducts 0er, ra/idl,. Mi"8model manufacturing /ro0ides the ultimate res/onsi0eness and utiliGation of floor s/ace. It su//orts ma(ing an, mi" of an, /roduct on an, da, A/ro0ided the /roducts were designed for the cellB. Again, Schon+erger, in his +oo( :a)anese Man"*act"ring Techni-"es+ /ine Lessons in Si!)licity , descri+ed the /ositi0e effects of mi"8model manufacturing@ HAn ad0antage of mi"8model sequencing is that each da, ,ou ma(e close to the same mi" of /roducts that ,ou sell that da,. This a0oids the usual c,cle of a large +uildu/ of in0entor, of a gi0en model, followed +, the de/letion to the /oint of /otential lost sales as the ne"t model +uilds u/.I
59
:igure 4.5 Mix2Model Manufacturing
4>
Fnce those manufacturing /rocesses that fit the a+o0e8mentioned criteria are grou/ed together in a cell, it is Dust a matter of understanding the /roduct demand +eha0ior and segregating the mi" +ased on that +eha0ior. !ate8+ased /roducts are made in the same amount e0er, da,. Kan+an re/lenishment /roducts Aoften finished8goods stoc(B are re/lenishments for Kan+ans as demand requires. The ma(e8to8order or s/ecial /roducts will +e made when there is enough ca/acit, remaining to /roduce those /roducts. $, scheduling /roduct this wa,, one ma(es the most effecti0e use of s/ace, equi/ment, /eo/le, time, material, etc. The conce/ts of runner, re/eater, and stranger,
which are a//lica+le to this methodolog,, will +e discussed in greater detail in ha/ter =.
)orka1le )ork
$orkable work is a term that refers to those elements contained within the manufacturing /rocess that are necessar, in order for wor( to +egin on a /roduct A-igure 9.>B. .0er, manufacturing en0ironment will ha0e something that is s/ecificall, required in order to +egin wor(J howe0er, all en0ironments will ha0e the following elements in common@ A5B material, A1B tooling, A3B
:igure 4.> )orka1le )ork
Logistics le!ent
4? wor( instructions, A4B demand, and A9B s(illed wor(ers. Most M!P II s,stems are set u/ to /lan and release wor( to the sho/ floor +ased on demand information generated from the s,stem. Some ha0e a logic setu/ to chec( for com/onent /art a0aila+ilit, +efore assem+l, orders are launched, +ut that is normall, where it sto/s. The /ro+lem that arises in man, /lants is that wor( is released to the sho/ floor without ha0ing 0erified com/letel, that it is wor(a+le. -or e"am/le, wor( order IS5134 is launched to the first o/eration. The /art is +lan(ed and mo0es on through o/erations two through fi0eJ howe0er, when it arri0es at o/eration si", there is an issue. The tooling is out for re/air and not a0aila+le to run this Do+. )hat ha//ensO The Do+ sits and waits until the tooling is a0aila+le. This ha//ens e0er, da, in /lants, and the more com/le" the manufacturing o/eration the more this launch8and8wait +eha0ior is e0ident. Instilling an awareness of the conce/t of wor(a+le wor( sets in motion a /rocess that 0erifies the a0aila+ilit, of those critical elements required +, manufacturing, +efore committing a Do+ to the sho/ floor, there+, eliminating the dela,s and wait time that are so indicati0e of long manufacturing lead8times. The to/ic of logistics is a 0er, +road su+Dect matter that could easil, fill an entire te"t+oo(. This cha/ter was onl, intended to co0er some of the /rimar, as/ects that should +e addressed as /art of a lean manufacturing im/lementation. &ow that we ha0e a greater a//reciation for the infrastructure elements, it is time to address the element that is most familiar to /eo/le C Manufacturing -low.
=6
=
Manufacturing :lo, Element
ost /ractitioners within the field of manufacturing can relate to tangi+le, hard8fact t,/es of /roDects that indi0iduals can go and la, their hands u/on, so to s/ea(. These are the t,/e of im/ro0ement initiati0es most readil, em+raced and im/lemented. These /roDects are the most 0isi+le, and the, are witnessed +, e0er,one within the organiGation. This is wh, the idea of rearranging equi/ment and altering sho/floor la,outs is /ursued so /assionatel, +, man, manufacturing organiGations. Im/ro0ements
are easil, recogniGa+le, and it is o+0ious that change has ta(en /lace. In order to win this /articular crowdMs acce/tance for a holistic a//roach to lean manufacturing, hard8fact results must +e e0ident. This +eing the case, this cha/ter /resents a series of cell design techniques +ased on hard8fact material which should +e utiliGed when de/lo,ing a lean manufacturing conce/t similar to the one descri+ed in this +oo(. The following series of techniques is to +e used when assessing /roducts and their associated /rocess flow and translating that data into usa+le information for generating a cell design@ 5. Product/quantit, AP/PB anal,sis A/roduct grou/ingB 1. Process ma//ing 3. !outing anal,sis A/rocess, wor( content, 0olume matricesB 4. Ta(t time 9. )or(load +alancing and one8/iece flow =. ell design guidelines :. ell la,out >. Kan+an siGing
M
=9
Product/Luantity Analysis EProduct GroupingF

The first ste/ in this /rocess is to gather and understand /roduct demand data A-igure =.5B. This is accom/lished +, generating a cumulati0e Pareto /ercentage, +, 0olume, of all /roduct stoc((ee/ing units ASKUsB. These data items originate at the customer and /ro0ide a +aseline +, which to +egin demand +eha0ior anal,sis. AnnualiGed /roduct SKU demand data should +e segregated on a monthl,/wee(l,/dail, demand +asis. The source of this information usuall, comes from the +usiness /lan forecast Ain unitsB and co0ers a time horiGon of = to 51 months. $, dis/la,ing the cumulati0e /ercentage, +oth high8 and low80olume /roducts +egin to /resent themsel0es. In addition to the forecast data, it is im/ortant to consider the actual customer order sales data. *oing so accounts for actual demand 0olume and mi" 0ariation, which is im/ortant in/ut for the ta(t time calculation Adiscussed later in this cha/terB. The P/P anal,sis A-igure =.1B loo(s for natural +rea(s in /roduct grou/ings +, sorting the gathered data and determining a fit for /roduction cells +,@ A5B their associated 0olumes, and A1B /roduct alignment characteristics. This is usuall, an iterati0e /rocess and is conducted se0eral times in order to determine a +est fit for each cell t,/e. Product alignment characteristics could include the following criteria@ 5. Align high80olume /roducts together. 1. Align to s/ecific customers, such as original equi/ment manufacturers AF.MsB. 3. Align to s/ecific target mar(ets. 4. Align to common manufacturing /rocesses. 9. Align to configuration commonalit, AsiGe, material, function, etc.B. =. Align to engineering content Astandard 0s. s/ecialB.
:igure =.6 Product 3emand
/*a,
Man"*act"ring %low le!ent
=;
After the /roducts ha0e +een identified and segregated into /roduct grou/ings, the, are sorted +, 0olume and /lotted on a chart. This chart 0isuall, dis/la,s the natural +rea(s in 0olume +, grou/. &ormall,, 42S of the /roducts will account for =2S of the /art 0olume Athis is referred to as the 42/=2 ruleB. )hen a /roduct grou/ing falls into this categor,, it is wise to esta+lish dedicated flow lines/cells with segregated resources in su//ort of this /roduct grou/ing. These /roducts are called r"nner /roducts +ecause the, ha0e high 0olumes, frequent customer orders, and sta+le demand A-igure =.3B. The remaining +alance of /roduct grou/ings will fall into one of two categories. The first grou/ fits a general /ur/ose or fle"i+le cellular o/eration (nown as re)eaters . This categor, has a greater 0ariet, of /roducts, which will +e /roduced across resources that are not dedicated to a s/ecific flow line. Parts that ha0e lower 0olume amounts, 0aria+le order frequenc,, and/or high 0aria+ilit, in o/erational routings will find their wa, into this categor,. The second categor, is that of strangers . This categor, is for miscellaneous items that are +eing /roduced within the /lant as one8off items or that ha0e a 0er, low 0olume or infrequent Aonce /er ,earB demand /attern. These items are usuall, +est managed through M!P II and can +e segregated from the rest of the factor, +,@ 5. .sta+lishing se/arate /roduction area 1. !unning the /roducts once or twice /er month 3. !unning them when ca/acit, is a0aila+le 4. Futsourcing the /roducts
:igure =.9 P/L Analysis
=<
9. !unning them once /er ,ear and holding in finished8goods stoc( =. Ma(ing one final run and eliminating the item from current /roduct offering Hill, in his The ssence o* 2)erations Manage!ent , addresses this same idea of segregating /roducts, onl, his focus is on the mar(et /lace@ H om/anies need to recogniGe that low8, medium8, and high80olume +atch /rocesses handle a 0er, wide range of 0olumes with corres/ondingl, different order8winners. -or com/anies, therefore, to assume that the choice of one /rocess, e0en for a single categor, such as +atch, will /ro0ide su//ort for the le0el of di0ersit, associated with a normal range or /roducts/ser0ices is a mista(e.I
52
In either case, whether +, /roduct alignment criteria or order winners, it is im/ortant to recogniGe that all /roducts are not demanded the same and therefore should not +e managed the same.
Process Mapping
Fnce the /roduct demand +eha0ior is understood, the ne"t area of anal,sis is that of /rocess ma//ing. It is necessar, to (now what o/erations are required to /roduce the /roducts +eing considered for cell design. In the end,
the final design of the cell will need to account and accommodate for all /rocess ste/s, whether accom/lished in the cell or not. $loc( /rocess ma//ing A-igure =.4B is usuall, conducted on the highest 0olume /roducts. The lower
:igure =.; Runner# Repeater# Stranger
Ad(antages: Responsi(e lead2time 'o, unit cost +ig$ e%uipment utili!ation 3isad(antage: Inflexi1le to (ariety Ad(antage: :lexi1le to (ariety 3isad(antages: -nresponsi(e to lead2time +ig$ unit cost 'o, e%uipment utili!ation
=4 0olume /roducts can +e ma//ed se/aratel, if the /rocess ste/s are significantl, differentJ howe0er, this is usuall, not the case. $, actuall, wal(ing the /rocess, documenting the ste/s, and tal(ing with the /rocess owners, a good re/resentation of the /roduct flow and 0olume can +e documented. In addition, to the +loc( /rocess ma/, a s/aghetti diagram A-igure =.9B is created in order to gras/ the magnitude of o/erator and material tra0el in the current /rocess. The reason it is called a s/aghetti diagram is that +, the :igure =.< Block Process Mapping :igure =.4 Spag$etti 3iagram
Ra, materials incoming Slotting operation Bore operation "rigger assy. operation Greasing operation :inal assy. operation :inis$ed goods outgoing Spin test operation +eat2treat operation Manufacturing cell
==
end of the e"ercise of recording the current /rocess the drawing loo(s li(e a +owl full of s/aghetti. This sim/le technique is nothing more than drawing the area under assessment, re/resenting the o/erator and material mo0ement on /a/er with a colored mar(er, and measuring the amount of feet tra0eled for +oth. )hat we can learn from this technique is 0er, illuminating. It is not uncommon for an o/erator to +e tra0eling u/ to half a mile e0er, time there is a need to gather tools and /arts to conduct a machine changeo0er. These two tools are used as sources of in/ut during the cell design /rocess. The, do a good Do+ of ca/turing the Has isI condition and 0isuall, dis/la,ing what is actuall, ha//ening in the /rocess toda,. The, identif, significant o//ortunities for waste elimination or reduction and /ro0ide real data +, which to ma(e decisions, rather than rel,ing u/on HI thin(TI or HI feelT .I
Routing Analysis EProcess# )ork &ontent# *olume MatricesF

!outing anal,sis is nothing more than the assessment of wor(flow /atterns and 0olume//rocess 0ariation. The first ste/ in this anal,sis is the creation of a /rocess matri" A-igure =.=B. This is accom/lished +, /lacing the routings
for each /art of a /roduct on a grid. $, identif,ing all manufacturing /rocesses across the to/ and listing /roducts down the side, a grid is created where each /art routing can +e /h,sicall, drawn. $, dis/la,ing the wor(flow in this manner, it is eas, to see /atterns of commonalit,, resource consum/tion, and re0erse /art flow acti0it,. .ach of these items is an im/ortant factor to consider when esta+lishing cell configuration. The /ur/ose of a wor( content matri" A-igure =.:B is to gather rele0ant man time, machine time, and setu/ time for a /articular /art /o/ulation. After +eing collected, this +aseline information should +e loaded into a data+ase as
:igure =.= Process Matrix
=5 reference data for utiliGation during the cell design /rocess. This data+ase of information can +e gathered in one of at least two different wa,s. The first is strictl, a manual /rocess in which an industrial engineer will conduct a wor( element anal,sis and com/lete a time o+ser0ation form ATF-J -igure =.>B. The :igure =.5 )ork &ontent Matrix :igure =.> "ime 1ser(ation :orm =>
engineer will wal( the /rocess ma/ for each /art and record the actual o/erational data for each of the /rocess ste/s. The engineer will need to (ee/ trac( of +oth the indi0idual o/eration time and the cumulati0e running total time. *e/ending on the o/eration, a series of fi0e to ten recordings should +e enough to accuratel, reflect the /rocess. In addition to the time stud,, inter0iews with the /rocess owners can /ro0ide 0alua+le insight into the e"isting /rocess flow. At times, with certain wor( en0ironments, these Htime studiesI can +e 0iewed in a negati0e light, and /artici/ation +, the sho/ floor can +e difficult to o+tain. It should +e e"/lained that these o+ser0ations are +eing used to tr, to understand the current /rocess and are not +eing used to set /a, rate. If there is still o//osition, then tr, to reach a consensus utiliGing the e"isting wor( element standards. In man, cases, there is so much im/ro0ement o//ortunit, a0aila+le without +eing concerned with changes to the actual wor( content of the /rocess that this is not an issue. A second a//roach would +e to ca/ture data from the e"isting M!P II s,stem. This a//roach is /ro+a+l, more acce/ta+le when tr,ing to address a large /o/ulation of /arts in a short /eriod of time and information accurac, of ;9S is not required. If, howe0er, the root cause of a /ro+lem is critical or an accurate stor, is required, then it is recommended that the anal,sis +e /erformed on data collected directl, from the sho/ floor. This wa, the engineer can not onl, formall, record what is seen +ut also record informall, what is heard through con0ersations with sho/floor /ersonnel. At this /oint, the wor( content of the /roducts has +een recorded and some insight into the /roduct /rocess flow has +een documented. &ow it is time to understand the relationshi/ +etween the two. $, reflecting the /roduct and /rocess flow in a 0olume matri" A-igure =.;B, decisions a+out the cell design +egin to e0ol0e. The 0olume matri" reflects demand and /rocess flow data in /roduction units and minutes/hours. The /lacement of /roduct grou/s on a matri" allows for the calculation of total 0olume +, units and hours for each /roduct and each /rocess. *e/ending on the manufacturing /rocess, the /roduction rate could +e calculated in da,s or wee(s. The hours should reflect three maDor categories@ man time, machine time, and setu/ time Athe setu/ time +eing assumed at once /er da,B. Fne of the o+Decti0es of a lean manufacturer is to +e fle"i+le and res/onsi0eJ therefore, the goal is
to ma(e toda, what is sold toda,. This cannot +e accom/lished if changeo0ers are e"ecuted once /er month. Again referring to ostanGaMs The 9"ant"! Lea)+ 8n S)ee& to Market, the author descri+es a similar /rocess of searching for commonalit,@ H.ach /roduct is re0iewed to identif, the /articular /rocesses or machine o/erations required to manufacture each /roduct. The ne"t ste/ in cell design is to create
=? a cell configuration that is made u/ of the common machines or o/erations identified in the /rocess ma/.I
9
There are two /rimar, outcomes of the routing anal,sis e"ercise@ A5B the segregation of high8 and low80olume /roducts +ased on a reflecti0e 0iew of the manufacturing /rocess, and A1B an understanding of the degree of 0ariation in /roduct 0olume/mi" and wor( content as it relates to cell design. It is through an understanding of these two as/ects that cell design decisions can +e made relati0e to the use of@ 5. Scheduling methodolog, C com/le" mi" 0s. segregated /roduction 1. !ate8+ased, Kan+an, ma(e8to8order /roducts 3. Kan+an +uffers for line im+alances and long setu/ times 4. .qui/ment wor(loads 9. .qui/ment needs =. Staffing needs :. Shift hour requirements
"akt "ime
The word takt comes from the 7erman word for rh,thm or +eat. Ta(t time is the +asis for cell design and re/resents the rate of consum/tion +, the mar(et/lace A-igure =.52B. Ta(t time is where the effort starts, +ecause it is reflecti0e of the customer demand. .0er,thing in cell design is +ased on ta(t time. Ta(t time is often confused with c,cle time. The two are calculated from com/letel, different /ers/ecti0es. ,cle time re/resents the current ca/acit,/ca/a+ilit, of the e"isting o/eration, whereas ta(t time is +ased on /roDected customer demand, not the a+ilit, of the current /rocess to /erform. The ratio for ta(t time has scheduled /roduction time a0aila+le as the numerator and designed
:igure =.? *olume Matrix
Product
SKU A#ol.B
H34;=: A35B -34:>= A1>B H34;>: A13B U>;:9= A52B S/U M S/U M& S/U S/U M& M
35.2 :2.2 13.2 9.2 51; 35.2 :2.2 13.2 19.2 54; 19.2 12.2 12.2 19.2 ;2 ;9.1 ;9.1 ;9.1 ;9.1
S/U
59.2 59.2 4=.9 54.2 55.9 :.2 :; 4=.9 54.2 34.9 59.2 552 59.2 39.2 12.2 59.2 >9 51> 51> 51> 51> 52 52 ::.9 32>.2 34.9 51.2 431 ::.9 32>.2 9:.9 42.2 4>3 42.2 >2.2 42.2 42.2 122
M Total AMin.B M&M& M M&M
5@
dail, /roduction rate as the denominator. -or instance, scheduled time a0aila+le would +e nothing more than a regular >8hour shift minus time for scheduled lunches, +rea(s, meetings, etc. This results in the scheduled time a0aila+le. -or e"am/le, an >8hour shift W A32 minutes for lunch X 32 minutes for two 598minute +rea(sB Y : hours of shift time a0aila+le. The factors that go into de0elo/ing the designed dail, /roduction rate include the +usiness /lan sales forecast and a 0ariation coefficient to co0er customer demand mi"/0olume 0ariation. The com+ination of these factors result in a designed dail, /roduction rate for the cell. -or e"am/le, a forecast demand might +e Monda, Tuesda, )ednesda, Thursda, -rida, Units@ 122 1>2 1=9 159 149 In order to accommodate the 0olume 0ariation and design a le0el /roduction schedule, the cell8designed dail, /roduction rate would +e at 1;2 units /er da,. This would +e +ased on re0iewing the demand 0ariation from da, to da, or wee( to wee(, determining the a0erage demand for the ne"t = to 51 months, and increasing the demand le0el to accommodate fluctuation +, a coefficient. In this case, the a0erage demand is 145 units /lus a 12S coefficient, or a dail, demand of 1;2 units Asee +elowB. The /ercentage is su+Decti0e, +ased on the amount of 0ariationJ howe0er, it is not recommended to e"ceed 92S of the a0erage +ecause a cell cannot +e designed for infinite ca/acit,. 122 units X 1>2 units X 1=9 units X 159 units X 149 units Y 5129 units 5129 Z 9 Y a0erage of 145 units /er da, #ariation coefficient Y A1>2 W 145B Z 145 Y 5:S Arounded to 12SB A145 5.12B Y 1;2 units designed dail, /roduction rate The ta(t time for the e"am/le a+o0e would +e 5.9 minutes. The time a0aila+le in minutes is : hours
=2 minutes, or 412 minutes. *i0iding 412 minutes +, 1;2 units gi0es 5.9 minutes, which is the ta(t time for that cell. To determine ta(t time when there are multi/le /roducts running in the same cell, it is necessar, to calculate the demand of all /roducts for that cell. It is then
:igure =.6@ 3efinition of "akt
Ta(t time ATTB Total time a0aila+le /er da, *esigned dail, /roduction rate Y 88888888888888888888888888888888888888888888888888888888888888888888888888
56 a matter of ta(ing the designed dail, /roduction rate for each of the indi0idual /roducts, adding them together, and using the total demand for all the /roducts as the designed dail, /roduction rate for the cell and di0iding that into the schedule time a0aila+le. This results in one ta(t time for the cell, which encom/asses the demand of all /roducts for that cell.
)orkload Balancing and
ne2Piece :lo,
Fnce a cell ta(t time has +een determined, it is now a matter of com/aring se0eral as/ects of the /rocess and the ta(t time in order to design a +alanced cell. The o/erational elements Amachine time, man time, and setu/ timeB of each /roduct are e"amined with relation to ta(t time. Machine time is com/ared to ta(t time in order to determine if the fi"ed c,cle time of an, /iece of equi/ment is greater than the ta(t time. If this is so, action must +e ta(en to change the a0aila+le time, off load, reduce the c,cle time, change /rocesses, add equi/ment, s/lit demand, etc. If the o/eration remains greater than ta(t time, it will need to +e +alanced with in8/rocess Kan+an in0entor, and/or additional shifts. Man time is com/ared to ta(t time to address two o//ortunities@ A5B autonomation and A1B wor(load +alance. The first o//ortunit,, autonomation, means equi/ment does not need to +e watched in case something goes wrong. Autonomation equi/ment will automaticall, shut off when an a+normalit, is disco0ered, there+, allowing the o/erator to do other 0alue8added wor(. This o//ortunit, is in0alua+le for increasing /roducti0it, and qualit,. The second o//ortunit,, wor(load +alancing, has to do with e"amining the indi0idual wor( elements of each o/eration and determining if the, can +e reduced, shifted, resequenced, com+ined, or eliminated. This effort to +alance the wor(load to ta(t time is a main ena+ler for achie0ing one8/iece flow and minimiGing manufacturing lead8times. Setu/ times are almost alwa,s greater than ta(t time and need to +e addressed as /art of the cell design /rocess. $, com/aring setu/ time to ta(t time, one has a greater a//reciation as to how far setu/s need to im/ro0e in order to create a fle"i+le wor( en0ironment. The initial sta(e in the ground is to /lan on setting u/ each high80olume /roduct e0er, da, and then to schedule the /roduct mi" to run accordingl,. If this cannot +e accom/lished, then /lan to run 1 to 3 da,sM worth at a time and hold the e"cess in0entor, until the customer or customer cell as(s for it Ane0er allow this to e"tend /ast more than a one wee(Ms runB. It will +ecome 0er, clear, 0er, quic(l,, wh, setu/ reduction is so im/ortant, when the su//lier cell has to /h,sicall, 59
hold the e"cess in0entor, until the customer cell as(s for it through a Kan+an. Fnce each of these three o/erational elements is determined for each /roduct, the, are com/ared to the o0erall ta(t time of the cell. This information is /laced on a loading chart for each indi0idual /roduct SKU A-igure =.55B. -rom this /oint, it is a matter of generating ideas and loo(ing for cell design solutions that will +alance the cell wor(load for all /arts and ta(t time.
$, re0iewing the actual wor( elements and either im/ro0ing the o/erations or shifting the wor( content, the cell can +ecome more +alanced com/ared to the ta(t. This is accom/lished much more easil, in an assem+l, en0ironment than in a fa+rication en0ironment, +ut it can +e done in +oth. )hen the o/erations are +alanced to ta(t time, it is /ossi+le to ta(e ad0antage of a one8/iece flow a//roach to wor(flow instead of running in large +atch quantities. )ith one8/iece flow, the manufacturing lead8time, le0el of in0entor,, and feed+ac( on qualit, issues are far su/erior to that of a +atchand8 queue s,stem. In a +atch8and8queue s,stem, indi0idual /ieces are com/leted at an o/eration and sit waiting in queue until the entire +atch is com/lete, at which /oint the, are mo0ed to the ne"t o/eration in sequence and wait in queue for other orders to +e com/leted that arri0ed there first +efore mo0ing forward. In the one8/iece flow a//roach, /roducts are /assed one /iece at a time from o/eration to o/eration with a first8in/first8out A-I-FB /riorit,. Product manufacturing lead8times are now onl, as long as the total of all the ta(ts the, had to get through. -or e"am/le, fi0e o/erations each with a ta(t of 5.2 minute require a manufacturing lead8time of fi0e minutes. Another significant +enefit to one8/iece flow is the im/act on qualit,. There
:igure =.66 'oading &$art
5; are fewer units in flow to rewor( or scra/J if there is a defect found, the feed+ac( is almost instantaneous and correcti0e action is ta(en on the s/ot, not se0eral wee(s later. Fnce we (now the c,cle time for the /rocess and we (now the designed ta(t time, we can ta(e the (nown c,cle time and di0ide it +, the ta(t time to determine the ma"imum staffing requirements for the cell. -or instance, the c,cle time from the e"am/le a+o0e was 9.2 minutes. If ta(t time for that /rocess were 1.9 minutes, then the required staffing would +e two o/erators. Actual head counts will 0ar, with changes in required dail, demand, which is wh, cross8training and o/erator fle"i+ilit, are so im/ortant in su//orting one8/iece flow.
&ell 3esign &riteria

)hen it comes to designing a cell, there should +e esta+lished a set of s/ecific design o+Decti0es or criteria to +e achie0ed. These criteria are to +e the guiding focus for good cell design. The following is a list of general criteria to consider as /art of a good cell design@ 5. $e sure that material flows in one direction. 1. !educe material and o/erator mo0ement. 3. .liminate storage +etween o/erations. 4. .liminate dou+le and tri/le handling. 9. Locate /arts as close as /ossi+le to /oint of use. =. UtiliGe tas( 0ariation to reduce re/etiti0e motion. :. Locate all tools and /arts within eas, reach. >. .nsure short wal(ing distances. ;. .liminate all wait time. 52. Kee/ in mind that 0ertical storage requires less s/ace than horiGontal storage Ainclude Kan+an materialB. 55. La, out machines and tools +, /rocess sequence. 51. In0ol0e o/erators in the design /rocess Aincor/orate economies of motionB.
&ell 'ayout
The cell la,out is a gra/hical re/resentation of the o/erator flow and material flow A-igure =.51B. It de/icts the /ath of the o0erall material mo0ement
through the cell and descri+es the designed o/erator sequence and o/erations. 5<
It shows the staffing le0els, ta(t time, c,cle time, designed in8/rocess stoc( le0els, and qualit, and safet, chec(s required +, the cell. The cell wor( la,out chart can then +e su//orted at a more detailed le0el with gra/hical wor( instructions for each o/eration Asee ha/ter :B. The cell wor( la,out is /rimaril, for training new o/erators, communicating standard wor( to management, and dri0ing continuous im/ro0ement initiati0es.
Aan1an Si!ing
It is at this /oint in the cell design /rocess that the control of wor(flow through Kan+an is determined. The num+er of Kan+ans and quantit, can +e determined in a multitude of different wa,s. There are se0eral different formulas that can +e utiliGed and which are identified in most o/erational management te"t+oo(s. There are /rimaril, rules of thum+ relati0e to the num+er of da,s or wee(s of in0entor, located on the sho/ floor, and there are simulation model calculations +ased on the amount of wor( in /rocess +uilt u/ in wor( queues due to /rocess 0aria+ilit,. The method of calculation is not that im/ortantJ Dust /ic( one and use it. Most Kan+an s,stem im/lementations fail
:igure =.69 &ell 'ayout
54 +ecause of lac( of disci/line or lac( of training, not +ecause someone used the wrong calculation. That ha0ing +een said, a sim/le formula has +een included in this section as a /oint of reference as to how Kan+ans could flow +etween a customer cell and a su//lier cell. 5anban *or!"la+ Ste/ 5. Ste/ 1. /ote+ Lot siGe ma, +e required due to weight, siGe, A,$, categoriGation, setu/ times, common resources, outside su//liers, etc. !e/lenishment time that is less than one shift would result in a two8+in s,stem. !e/lenishment time that is greater than one shift would result in a card s,stem Asee -igure =.53B. -or e"am/le@ :igure =.6; Aan1an System
Aan1an perational Rules &ontinued: <. By t$e time t$e replenis$ment parts arri(e# all parts s$ould $a(e 1een consumed 1y t$e customer cell. If not# t$e remaining parts s$ould 1e placed on t$e first incoming part container E:I: F. 4. Replenis$ment time ,indo,s must 1e ad$ered to 1y t$e supplier cell Ee.g.# 9 $ours# 6 s$ift# ; daysF. Aan1an perational Rules: 6. As a part container is opened at t$e customer cell# a Aan1an card is returned to t$e supplier cell. 9. )$en t$ree cards are recei(ed 1y t$e supplier cell# one day's worth of parts are produced. "$is is to accommodate long c$angeo(ers. ;. )$en t$e fourt$ card is recei(ed# one day's worth of parts are s$ipped.
*esigned dail, /roduction rate re/lenishment time AhoursB a0aila+le time 88888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888 88888888888888 Y Kan+an quantit, Kan+an quantit, lot siGe 888888888888888888888888888888888888888 Y V of cards
5=
Ste/ 5. Ste/ 1.
HAI /arts Y 5/1 da, demand, or 49 /ieces 5>2 /ieces Z 49 /ieces Y 4 cards
.0er, Kan+an should ha0e the minimum identification requirements@ 5. Part num+er 1. Part descri/tion 3. Part quantit, 4. Point of su//l, 9. Point of consum/tion =. HFne ofT cardsI Ae.g., 5 of 3J 1 of 3J 3 of 3B The o0erall a//roach to determining Kan+an siGes and the im/act on in0entor, would include@ 5. 7athering the data required for each /art num+er in the cell 1. UtiliGing the Kan+an calculation to determine the Kan+ans in flow 3. *etermining the target in0entor, le0el +ased on the Kan+an quantit, 4. alculating the designed num+er of in0entor, turns The determination of Kan+ans is an im/ortant ste/ in the cell design /rocess +ecause Kan+ans are the limiting factor for in0entor, le0els Araw material, wor( in /rocess, finished goodsB and are the control element on lead8times. These o/erational as/ects Ain0entor, and lead8timeB ha0e a maDor influence on continuous im/ro0ement within a cellular o/eration. In his +oo(, The :"st68n6Ti!e Breakthro"gh+ 8!)le!enting the /ew Man"*act"ring Basics , Ha, descri+ed a test for determining if a cell is trul, a Dustin8 time wor( cell@ HThe first test is whether the /roduct is flowing one at a time. TThe second test to see if a machine cell is trul, a EIT cell is whether the machine cell has the fle"i+ilit, to +e o/erated at different out/ut rates and with different crew siGes.I
:
Although I would agree that these two as/ects should +e e0ident in order to ha0e a cell, I would ho/e we ha0e a greater a//reciation for Dust how man, other as/ects are necessar, in order to ha0e a trul, successful lean manufacturing cell.
;2 /ieces 59 hours :.9 hours 8888888888888888888888888888888888888888888888888 Y 5>2 /ieces
55 &ow that the ste/s for cell design ha0e +een identified and we ha0e greater insight into the im/act of material flow through the factor,, it is time to address those as/ects which la, at the foundation of continuous im/ro0ement and /ro0ide sta+ilit, to the cell C namel,, the Process ontrol element.
5?
5
Process &ontrol Element
rocess ontrol focuses on sta+iliGing the /rocess, institutionaliGing the
change, and dri0ing continuous im/ro0ement acti0ities. The /roduction /rocesses of man, manufacturing o/erations are not in control nor are the, /erforming at the le0els necessar, to su//ort a lean en0ironmentJ therefore, there is a need to address these areas as /art of the im/lementation. After a change has +een made to a /rocess, it +ecomes necessar, to Hloc( it downI and maintain it as the new standard for o/eratingJ howe0er, after ha0ing set the new standard, the /erformance le0el should not +e limited to that standard, so continuous im/ro0ement tools are used to esta+lish a new le0el of /erformance. A good management /ractice to consider im/lementing would +e that of e"/ecting standards to im/ro0e twice /er ,ear. According to Shingo, in A St"&y o* the Toyota Pro&"ction Syste! , To,ota is e"tremel, rigid in regard to its standards and e"/ects continuous im/ro0ement@ HThe To,ota /roduction s,stem demands that all wor( +e /erformed within standard times, and sho/ su/er0isors are charged with holding wor(ers to those standards. TSho/ su/er0isors are encouraged to feel em+arrassed when the same standard o/erating charts are used for a long time +ecause im/ro0ements in the sho/ o/erations should +e made continuousl,.I
5;
This cha/ter deals with man, of the institutionaliGation as/ects of lean manufacturing and descri+es methods that can +e utiliGed to foster the continuous im/ro0ement as/ects of a lean manufacturing en0ironment. This last /rimar, element, Process ontrol, focuses on a num+er of lean manufacturing as/ects that sta+iliGe the standard methods of wor(ing and then continuall, /ursues the setting of new standards for those methods.
P
>@
This element +rings to light se0eral acti0ities that la, the foundation necessar, for a com/an, to reach world8class le0els of /erformance, and it is the /ursuit of these acti0ities that sets the wheels of continuous im/ro0ement in motion, there+, de0elo/ing /rocesses that are more ro+ust, relia+le, and /redicta+le. This cha/ter highlights si" im/ortant acti0ities relati0e to Process ontrol@ 5. Single8minute e"change of dies ASM.*B 1. Total /roducti0e maintenance ATPMB 3. Po(a8,o(e Afail safeB 4. 9S Ahouse(ee/ingB 9. #isual controls =. 7ra/hic wor( instructions .0en though these do not address all as/ects of the Process ontrol element, the, do /ro0ide enough insight for an organiGation to initiate action on some of the more critical areas.
Single2Minute Exc$ange of 3ies

The im/lementation of setu/ reduction is a cornerstone for an, lean manufacturing /rogram. The de/endenc, on fle"i+ilit, Aes/eciall, in fa+ricationB is /aramount to allowing le0el /roduction schedules to flow. -ollowing are +enefits of the single8minute e"change of dies ASM.*B@
5. .qui/ment changeo0er time measured in increments of less than 52 minutes 1. Minimal loss to through/ut time on equi/ment 3. The a+ilit, to run a greater 0ariet, of /roduct mi" across a gi0en resource 4. $uilding toda, onl, what is needed toda, The SM.* /rocess is not focused on the reduction of total time s/ent doing setu/s, +ut rather on the /ursuit of conducting more setu/s in the same amount of time. $, cutting changeo0er time in half, a cell can now conduct twice as man, setu/s in the same amount of time. $, cutting them in half again, a cell can now conduct four times as man, setu/s in the same amount of time. The /rimar, o+Decti0e is to +uild fle"i+ilit, into the /rocess. Shigeo Shingo de0elo/ed SM.* as a manufacturing consultant to Ea/anese com/anies during the /ost8)orld )ar II era. It too( se0eral ,ears for
Process Control le!ent
>6 him to /erfect the /rocess of setu/ reduction and design it as a structured set of ste/s used to deli0er incredi+le ca/a+ilit, to organiGations that ta(e ad0antage of this com/etiti0e wea/on. The /rocess is not terri+l, difficult, and as much as :9S of the +attle has to do with a /ositi0e attitude. As Shingo states in The Sayings o* Shigeo Shingo+ 5ey Strategies *or Plant 8!)rove!ent @ HItMs the easiest thing in the world to argue logicall, that something is im/ossi+le. Much more difficult is to as( how something might +e accom/lished, to transcend its difficulties, and to imagine how it might +e made /ossi+le.I
11
The /rocess has three +asic ste/s@ A5B segregate the acti0ities, A1B recategoriGe, and A3B reduce or eliminate ste/s as the, are done toda,. In ste/ one, identif, all the acti0ities in the /rocess. T,/icall,, most com/anies do not reall, (now what their la+or force has to go through in order to ma(e a setu/. It is not uncommon for an o/erator to ha0e to tra0el half a mile A1922 feetB in order to accom/lish all the tas(s necessar, to ma(e a setu/. *onMt Dust ta(e m, word for it. )al( the entire /rocess sometime. 'ou will +e sur/rised at what ,ou learn. Fnce all the ste/s ha0e +een documented for the setu/ /rocess, the, need to +e segregated into two categories. The first categor, is that of internal setu/ C those items that ha0e to +e done while the machine is down. The second categor, is that of e"ternal setu/ C those items that can +e done while the machine is running A-igure :.5B. )hen the acti0ities ha0e +een identified and segregated, the ne"t ste/ is to re8categoriGe or shift as man, acti0ities as /ossi+le from internal to e"ternal. T,/icall,, +etween shifting acti0ities from +eing internal to e"ternal
:igure 5.6 Identify Internal (s. External Setup
% % % % % !etrie0e and stage /arts, tools for ne"t lot Pre8heat, /re8measure, /re8locate #erif, tool functionalit, lean and store tools Mo0e /arts to ne"t o/eration
>9
and conducting some good house(ee/ing /ractices, changeo0er time can +e reduced +, 92S. Fnce setu/ acti0ities ha0e +een documented and re8categoriGed, the last ste/ is to loo( at sim/lif,ing the setu/ /rocess for +oth internal and e"ternal acti0ities. In0estigate standardiGing the setu/, minimiGing the utiliGation of +olts and adDustments, and utiliGing sim/le one8turn t,/es of attachment
methodologies and such techniques as cams, interloc(ing mechanisms, slotted +olts, secured washers, etc. Stri0e to ma(e the setu/ /rocess standard, consistent, re/eata+le, and one that em/lo,ees can learn. Too often statements are made a+out a /articular setu/ /rocess +eing too highl, s(illed or too +lac( art or requiring too man, ,ears of e"/erience. All of these issues need to +e designed out of the setu/ /rocess. Eust as Shingo stated in A Revol"tion in Man"*act"ring+ The SM 1 Syste! @ HIt is generall, and erroneousl, +elie0ed that the most effecti0e /olicies for dealing with setu/s address the /ro+lem in terms of s(ill. Although man, com/anies ha0e setu/ /olicies designed to raise the s(ill le0el of wor(ers, few ha0e im/lemented strategies that lower the s(ill le0el required +, the setu/ itself.I
5>
-ollowing the three +asic ste/s, utiliGing the techniques mentioned, and ha0ing an o/en mind a+out the /ossi+ilities are all (e, ingredients to ma(ing a SM.* /rogram flourish.
"otal Producti(e Maintenance

A second cornerstone in su//ort of a lean manufacturing en0ironment is that of total /roducti0e maintenance ATPMB. .qui/ment is integral to an, manufacturing en0ironment, and the relia+ilit, of equi/ment in a lean en0ironment is /aramount to a trul, successful im/lementation. As in0entor, le0els are reduced, the u/time on machiner, +ecomes e0en more im/ortant. $ecause there is little in0entor, to +uffer un/lanned downtime in a lean en0ironment, when a machine goes down the entire /roduction line goes downJ therefore, a formal TPM /rogram is instrumental in su//orting a lean manufacturing im/lementation. There are three main as/ects of a TPM /rogram@ /re0entati0e maintenance, correcti0e maintenance, and maintenance /re0ention. .ach one of these com/onents has a different mission and required outcome as /art of the TPM /rogram. .ach has a significant role to /la, and is necessar, for world8class /erformance to +e sustained. The first, /re0entati0e maintenance, focuses on /re0enting +rea(downs from ha//ening and is +, far the most recogniGed acti0it, relati0e to TPM.
>; Pre0entati0e maintenance is concerned with the u/time or a0aila+ilit, of equi/ment. The effort here is aimed at /erforming /re0entati0e maintenance actions on equi/ment in a /re/lanned/scheduled manner, as o//osed to in an un/lanned or chaotic manner. Also, the inclusion of o/erators in this /rogram, s/ecificall, to conduct dail, maintenance on the equi/ment and identif, a+normalities as the, occur, is /aramount to successful /re0entati0e maintenance. $, doing this, the through/ut and a0aila+le ca/acit, on equi/ment are significantl, im/ro0ed. orrecti0e maintenance concentrates on im/ro0ing re/aired equi/ment. The idea here is that if com/onents from the original equi/ment (ee/ +rea(ing, wh, not re/lace them with something +etterO -i"ing them with an im/ro0ed com/onent results in longer equi/ment life and more u/time from the equi/ment. Maintenance /re0ention is an area that most com/anies neglect and /a, 0er, little attention to when designing or /urchasing new equi/ment. $ecause one of the (e, ingredients of a successful TPM /rogram is that of dail,
o/erator Hautonomous maintenance,I it is im/erati0e that equi/ment +e eas, to maintain on a recurring +asis. If the new machiner, is difficult to lu+ricate, if +olts are difficult to tighten, and if it is im/ossi+le to chec( critical fluid le0els, then it is 0er, unli(el, that o/erators will +e moti0ated to monitor equi/ment on a dail, +asis. The total life8c,cle costs on equi/ment must +e e"amined when /rocuring new machines, not Dust the one8off, nonrecurring costs. In su//ort of TPM as /art of a lean manufacturing im/lementation, the information relati0e to downtime on equi/ment is im/ortant. Most of the time, if an, information is collected at all, it is when equi/ment has crashed and the cause for the downtime condition is documented. .0en though this is good, it /ro0ides onl, a /artial /icture as to the true through/ut loss on equi/ment. There are in actualit, si" main reasons, with associated causes, for through/ut losses on machiner, A-igure :.1B. Shirose identified these losses in his +oo(, TPM *or $orksho) Lea&ers , and declared them to +e negati0e o+stacles to efficienc,@ HThere are two wa,s to im/ro0e equi/ment efficienc,@ a /ositi0e wa, and a negati0e wa,. TThe negati0e was is +, eliminating the o+stacles to efficienc, C o+stacles that in TPM are called the si" +ig losses.I
13
.ach of these losses has an im/act on the through/ut and /lanned ca/acit, of equi/ment. T,/icall, +rea(down is reall, the onl, loss for which we ca/ture information, although all si" lead to a reduction in /roducti0it,. $rea(down and setu/ Achangeo0erB ha0e an im/act on machiner, a0aila+ilit,. Minor sto//age and reduced s/eed ha0e a direct influence on the /roducti0it, ><
of equi/ment when it is running. Pualit, and startu/ ,ield certainl, ha0e an effect on a com/an,Ms a+ilit, to /roduce, /articularl, when a /ortion of 0alua+le ca/acit, is s/ent on /roducing /oor8qualit, /roduct. A technique used to (ee/ the si" +ig losses in chec( is that of o0erall equi/ment effecti0eness AF..B, which is measured as a /ercentage and utiliGes information from un/lanned downtime, machine c,cle time, and /rocess ,ield to determine which of the si" +ig losses are ha0ing the greatest im/act, there+, /ro0iding insight as to where to focus im/ro0ement efforts. An a//reciation of these si" +ig losses and how to reduce their effect on equi/ment resources within the /lant will go a long wa, toward su//orting a lean manufacturing /rogram.
Poka2Yoke E:ail SafeF

Human +eings will in0aria+l, ma(e mista(es. It is not /ossi+le to remem+er e0er,thing that has to +e done at e0er, ste/ of /roducing e0er, /roduct with e0er, Do+. Peo/le will ma(e errorsJ it ha//ensJ howe0er, errors are the not same as defects. A defect is what ta(es /lace after an error occurs. $, sorting good /roduct from defecti0e /roduct at the end of the /rocess, a com/an, cannot ho/e to achie0e a defect8free en0ironment. If, howe0er, errors are caught +efore the, lead to defects, then a defect8free en0ironment +ecomes /ossi+le. This is where the /ower of Po(a8,o(e comes into /la,. Po(a8,o(e, another as/ect de0elo/ed +, Shingo after )orld )ar II, in conDunction with source ins/ection, was designed to focus on the /ursuit of qualit, at the source and ca/turing feed+ac( on defects as close as /ossi+le to the root cause. In
;ero 9"ality Control+ So"rces 8ns)ection an& the Poka6 4oke Syste! , he states@ HA Po(a8,o(e s,stem /ossesses two functions@ it can carr, out 522 /ercent ins/ections and, if a+normalities occur, it can carr, out immediate feed+ac( and action.I
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:igure 5.9 "otal Producti(e Maintenance: Six Big 'osses

Breakdown: :ailed function and reduced function Setup and adjustment: Imprecise and nonstandard measurement Idling and minor stoppage: sudden disruptions Reduced speed: actual (s. designed Quality defects and rework: sporadic and c$ronic Startup yield: process insta1ility
>4 Po(a8,o(e, or mista(e /roofing, is accom/lished through the de/lo,ment of sim/le, ine"/ensi0e de0ises designed to catch errors so the, do not +ecome defects. These de0ices are /laced in the /rocess to ensure that it is 0er, eas, for the o/erator to do the Do+ correctl, or 0er, difficult for the o/erator to do the Do+ incorrectl,. The tools could +e /h,sical, mechanical, or electrical A-igure :.3B. A Po(a8,o(e could +e as sim/le as a chec(list for the o/erator or technician to ensure that all ste/s in the /rocess are co0ered, much in the same manner as /ilots going through a /re8flight chec(list +efore ta(ing off. The intent of the Po(a8,o(e is to sto/ defects at the source, to /ro0ide immediate feed+ac( as to the cause, and to /re0ent the /assing on of defecti0e /roducts to the ne"t customer in the /rocess.
4S E+ousekeepingF
.0er,thing has a /lace and e0er,thing in its /laceU If it does not warrant a la+el, it does not warrant a /lace in the areaU These are words to li0e +, in a lean manufacturing en0ironment. So, what is so im/ortant a+out house(ee/ingO According to authors Henderson and Larco A Lean Trans*or!ation+ (ow To Change 4o"r B"siness into a Lean nter)rise B, it is 0er, im/ortant@ HMost /eo/le underestimate the im/ortance of safet,, order, and cleanliness in the wor(/lace. Fur former colleagues at To,ota and Honda will tell ,ou that 19 to 32S of all qualit, defects are directl, related to this issue.I
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:igure 5.; Examples of Error2Proof 3e(ices
>=
)hat is this thing called 9S A-igure :.4BO -or all /ractical /ur/oses, it re/resents sim/le, sound, structured, s,nchronous, ser0icea+le house(ee/ing. &o, that is not what 9S stands forJ rather, the words are all Ea/anese, coined +, To,ota@ 5. Seiri AsiftingB 1. Seiton AsortingB 3. Seiso Aswee/ingB
4. Seikets" AstandardiGeB 9. Shits"ke AsustainB The first, Seiri , has to do with clearing the area of those items that are not +eing used on a regular +asis Ae.g., the ne"t 32 da,sB. It is a matter of sifting through and se/arating the clutter from the items that are needed to ma(e it easier to wor(, easier for material to flow, and easier for o/erators to mo0e, in addition to im/ro0ing utiliGation of s/ace. Seiton deals with identif,ing and arranging items that +elong in the area. These items should all +e sorted and la+eled as +elonging in that area. If the item is not im/ortant enough for a la+el, then it is not im/ortant enough to sta, in the area. This ma(es recognition of the /ro/er tooling, resources, materials, etc. e"tremel, 0isi+le.
:igure 5.< 4S E+ousekeepingF H Arrange and identify all items in t$e cell Eno loose toolsF H 'a1el locations for e%uipment# tools# and materials H &lean up daily Eno grit or grimeF H Be a1le to (isually identify any a1normalities H -tili!e $ousekeeping audit c$ecklist
Screwdri0er Hammer )rench
>5 Seiso has to do with maintaining order +, swee/ing and /ic(ing u/ on a regular +asis Ae.g., dail,, +i8wee(l,B. A /roduction area should +e neat and clean at the end of e0er, shift. There should +e nothing missing or out of /lace. All tools and materials should +e accounted for. A well8maintained area should +e a+le to accom/lish this using less than 1S A52 minutesB of the dail, scheduled shift time. Seikets" is concerned with management disci/line to enforce the standard acti0it,. If the house(ee/ing acti0it, does not +ecome institutionaliGed within the o/eration, the area will not sta, clean and em/lo,ees will re0ert +ac( to the old wa,s 0er, quic(l,. A regular, formal audit with quantitati0e and qualitati0e e"/ectations should +e conducted and scores /osted for areas of res/onsi+ilit,. Assigned areas of the floor are im/ortant, +ecause if e0er,+od, has res/onsi+ilit,, then no+od, has res/onsi+ilit,. Shits"ke is managementMs res/onsi+ilit, to reinforce the im/ortance of house(ee/ing and to demonstrate leadershi/ +, follow8through and wal(ing the tal(. Peo/le will /a, attention more to what management does than what the, sa,. Proclaim that house(ee/ing is im/ortant, clarif, e"/ectations, wal( the sho/ floor, reward those who are /erforming, and constructi0el, disci/line those who are not.
*isual &ontrols
The area of 0isual controls encom/asses such conce/ts as line8of8site management, or the a+ilit, to wal( onto the sho/ floor and in a matter of minutes (now the status of the o/eration, what might +e a+normal, how the material
is flowing, what Do+ is in wor( and what Do+ is ne"t to go in wor(. It also includes the conce/t of signage, which means that e0er,thing is dis/la,ed, mar(ed, documented, and re/orted, so much so that an, indi0idual off the street could wal( into the factor, and gi0e a /lant tour. A (e, as/ect of 0isual control is that of sho/floor /erformance measurement, accom/lished through the dis/la, of a handful of measures Athree to fi0eB on the sho/ floor for e0er,one to see and understand. As was stated in ha/ter 4, these are to +e measures that are created, owned, monitored, controlled, and understood +, those in the area. If a measure is created in another area, then +rought to the sho/ floor and /osted in another area, it is 0er, unli(el, that /eo/le wor(ing in that area will reall, (now what it means. )orse ,et, the, could not e"/lain how their Do+ /erformance relates to that measurement. It is im/ortant for indi0iduals to understand whether their areas are /erforming to /lan, it is im/ortant for them to record how >>
the, are doing according to that /lan, it is im/ortant for them to ta(e res/onsi+ilit, for that /erformance, and it is im/erati0e that the, (now how to im/ro0e that /erformance. In addition, the, need a wa, to highlight /ro+lems in order to recei0e /rom/t su//ort and correcti0e action. The utiliGation of a 0isual control +oard or communication +oard A-igure :.9B will /ro0ide the means to dis/la, /erformance status and communicate /ro+lems. T,/icall,, the communication +oard is di0ided into two hal0es. Fne half contains the sho/floor measures of /erformance Ae.g., schedule adherence, qualit,, c,cle time, etc.B. The other half contains a /ro+lem section, where the o/erators can document /ro+lems the, are ha0ing. These /ro+lems are re0iewed on a dail, +asis, actions assigned, resolution dates committed, and mitigating actions recorded. This /ro0ides 0isi+ilit, to sho/floor /ro+lems that are otherwise hidden or /laced on a list to +e resol0ed someda,. The im/ortance of 0isual controls is how the, ma(e im/ro0ement acti0ities, issues, /erformance status, /ro+lems, and o/erational rules 0isi+le.
Grap$ic )ork Instructions

To consistentl, con0e, how a Do+ is to +e /erformed according to documented standard wor( sheets, the message needs to +e communicated in an easil, recogniGa+le format. Te"t8+ased wor( instructions are /ro+a+l, the least attracti0e means of accom/lishing this tas( and ,et are +, far the most widel, utiliGed, /ro+a+l, +ecause this has +een the easiest wa, to +ring information
:igure 5.4 &ommunication Board
>? to the sho/ floor. The /ro+lem with te"t is that it is 0er, de/endent not onl, on an indi0idualMs a+ilit, to learn from a written format +ut also on an indi0idualMs a+ilit, to accuratel, descri+e actions as /art of a series of motions, not to mention the cross8cultural language +arriers that can e"ist within the /lant or when communicating glo+all, regarding /roducts or /roduction methodologies. In the /ast, A* drawings and +lue/rints were the onl, means of gra/hicall, de/icting wor( and were 0er, time consuming to u/date and maintainJ howe0er, with the ad0ent of digital cameras, 0ideo recorders, and /resentation software, there is no e"cuse for not /ro0iding gra/hic instructions in the sho/ area. 7ra/hic8+ased wor( instructions are a far more effecti0e means of communication than sim/l, te"t A-igure :.=B. The information can +e ca/tured quic(l, through a digital camera and mani/ulated with software to add color8coded legends that identif, wor( content +, o/eration, qualit,
chec(s, s/ecial notes, etc. The +eaut, of color is that it can transcend language +arriers. If there is a concern o0er em/lo,ees who are color +lind, ma(e use of standard s,m+ols. A green circle could re/resent wor( contentJ a ,ellow triangle, a qualit, chec(, etc. ."/loded 0iews, /articularl, of assem+l, o/erations, are of tremendous +enefit, +ut the, do require s/ecific software a//lications.
:igure 5.= Grap$ic )ork Instructions
?@
.ach /icture or slide can re/resent an o/eration or de/ict a +ill of material for that o/eration with a date, re0ision, and signature +loc( for configuration control. )hen there is an im/ro0ement to the /rocess or the introduction of a new /art, the old gra/hic can +e /ulled and re/laced with a new one in as little as 32 minutes. The da,s of a manufacturing engineer ha0ing to s/end se0eral da,s tr,ing to maintain and u/date wor( instructions are o0er. The de/lo,ment of all fi0e of these /rimar, elements of lean manufacturing is essential for most com/anies to achie0e true world8class le0els of /erformance. It is through the /ro/er sequencing and timel, im/lementation of these elements that a com/an, can achie0e that illustrious le0el of /erformance. $ut, once this incremental change in /erformance is achie0ed, how is it sustainedO The ne"t cha/ter will +riefl, touch on this issue.
?6
>
Sustaining t$e &$ange
ow comes the answer to the great m,ster, of how to (ee/ things the wa, ,ou want them. The answer is T ,ou donMtU 'ou do not want this /rocess to +e static. 'ou most assuredl, do not want it to fall +ac(, +ut ,ou do not want it to sta, the same either. )hen com/anies sta, the same, the, fall +ehind. hange is a constantJ therefore, constantl, loo(ing for new wa,s to im/ro0e the +usiness is the name of the game. If com/anies are not im/ro0ing, at least at the rate of inflation, then the, are losing, and ha0ing to face /ricing /ressures from the mar(et Dust com/ounds the seriousness of the situation. om/anies need to constantl, /ush themsel0es to challenge the stat"s -"o +, /erforming +etter toda, than ,esterda,. So how is this achie0edO -irst of all, there is a need to institutionaliGe changes that ha0e +een made to this /oint +, doing the following@ 5. *e0elo/ and de/lo, house(ee/ing audit chec(lists Ai.e., 9SB and ha0e the management disci/line to re0iew them at least once a month. 1. All o/erational wor( is standardiGed, dis/la,ed, utiliGed as a +asis for continuous im/ro0ement acti0ities, and im/ro0ed twice /er ,ear. 3. .ach manufacturing cell team is e"/ected to conduct a KaiGen e0ent e0er, quarter. 4. Sho/floor /erformance measures are u/dated +, the cell team dail,. 9. Pro+lem +oards are re0iewed at the end of e0er, da,. =. ell teams hold standu/ meetings e0er, da, to re0iew /rogress and issues.
:. Actual setu/ times are recorded with each changeo0er. >. ross8training s(ill matrices are u/dated quarterl,. ;. .qui/ment is cleaned and chec(ed on a dail, +asis. 52. ustomers and su//liers are 0isited +, the cell team each quarter.
0
?9
After the change has trul, +een institutionaliGed, a focus on growing the +usiness through new /roducts or mar(ets and /roduction ca/a+ilit, is ne"t. The cell team accom/lishes this +,@ 5. Loo(ing at the /roduci+ilit, of its e"isting /roduct +ase. 1. *etermining how lean the current /roduct design is and identif,ing where o//ortunities e"ist to ta(e additional waste out of the design. 3. UtiliGing failure mode and effects anal,sis A-M.AB to im/ro0e the ro+ustness of the manufacturing /rocess and minimiGe ris( of /oorqualit, out/ut. 4. Loo(ing for o//ortunities to /ilot new /roduction. 9. Loo(ing for /otential im/ro0ements within the su//lier +ase. =. Understanding cost, qualit,, and schedule issues with su//liers and hel/ing them to identif, and eliminate waste from their /rocesses. )hen ,ou ha0e reached this le0el of ca/a+ilit, within ,our manufacturing organiGation, ,ou are definitel, well ahead of the /ac( and ha0e reached a le0el 0er, few ha0e actuall, achie0edJ howe0er, do not sto/ there. !emem+er that lean manufacturing is the continual /ursuit of im/ro0ement and it is a Dourne, that ne0er ends.
III
?4
P-""I0G I" A'' " GE"+ER
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Setting t$e Stage
his section of the +oo( shows how to design and de/lo, a holistic lean manufacturing /rogram. The following cha/ters contain a fictitious +usiness stor, in which man, of the tools and techniques descri+ed in this +oo( are utiliGed. Picture ,ourself in these cha/ters as the new *irector of Lean Manufacturing for this com/an,, and follow along in the stor, to learn how to design, de0elo/, and de/lo, ,our own lean manufacturing /rogram.
The stor, descri+es a current +usiness situation and demonstrates use of the tools 0ia com/leted tem/lates to show how a lean manufacturing /rogram is de0elo/ed and managed. Ta(e the time to read through the stor, and understand the tem/lates, as learning +, doing is one of the +est wa,s to retain (nowledge. F+0iousl,, one cannot instantl, gras/ all of the /otential issues that need to +e addressed when de/lo,ing a lean manufacturing /rogramJ howe0er, I ha0e tried to include man, of the most common issues that ha0e arisen o0er the ,ears during m, im/lementations. I ho/e ,ou find this stor, +oth worthwhile and entertaining.
Setting
!egal, Inc., in incinnati, FH, has +een in +usiness since 5;49. The, started out as a small, su+contract su//lier to the hea0, industrial ca/ital8goods mar(et and +egan to grow when the, /ic(ed u/ small, niche8mar(et contracts for the machining of s/ecialt, +earings, housings, and /istons. The housing and /iston wor( came as an offload o//ortunit, when the /rimar, su//lier was o0erloaded. !egal did good, high8qualit, wor( and had e"cellent res/onse time.
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?=
F0er the ,ears, !egal was a+le to e"/and the +usiness through niche growth in the mar(et/lace and /ositioned themsel0es as the Hgo toI /la,er with the original equi/ment manufacturers AF.MsB when it came time to design new /roducts. Their re/utation and e"/ertise o/ened man, doors. These o//ortunities led to further growth in the mar(et and growth within the +usiness. The com/an, relocated to a 922,2228square8foot facilit, across town in 5;>2 and in0ested significantl, in additional ca/ital equi/ment and 0ertical integration to meet the demands of the increased 0olume. The, had +een achie0ing re0enue increases of a+out 59S each ,ear for the last 9 ,ears and were enDo,ing o/erating /rofits of 12S, with no end in sight. So, e0er,thing was loo(ing good until one da, one of their first F.M customers, who had +een with them since the 5;92s, announced the rollout of a new /iece of equi/ment which !egal (new nothing a+out. )hen the com/an, as(ed the F.M wh, !egal had not +een utiliGed for this new design, the, were told that a different su//lier had +een more res/onsi0e +, offering shorter lead8times, more consistent deli0er, /erformance, and more relia+le /roduct qualit,, /lus the, /romised a cost reduction of 9S each ,ear for the life of the contract and no hassles a+out deli0ering /roducts to the F.M /lants as needed on a dail, +asis. !egalMs management 0iewed this as onl, a minor set+ac(, until a second long8time F.M canceled an e"isting contract, /aid the /enalt, for doing so, and went with a com/etitor for the same reasons. )ith this additional loss in +usiness, in order to maintain their 12S o/erating /rofit, management +elie0ed a reduction in wor( force was the ne"t logical alternati0e. Fn the da, the, were to ma(e the final decision, a recruiter called the #ice President of F/erations at !egal and e"/lained that he had the resum[ of an indi0idual that the com/an, might +e interested in seeing. $ecause the 0ice /resident and the recruiter were long8time fishing +uddies, he agreed to re0iew the resum[ and had it fa"ed o0er.
Main &ast
Presi&ent+ $rian Ste0ens 'ice Presi&ent o* 2)erations+ *a0id $rice 'ice Presi&ent o* Sales an& C"sto!er Service+ $ar+ara Stearn 'ice Presi&ent o* Pro&"ct 1evelo)!ent+ Samuel $utton 1irector o* ("!an Reso"rces+ Heather *ale Controller+ Eose/h $illings 1irector o* 8n*or!ation Syste!s+ Paula )right
Setting the Stage
?5 1irector o* Material Manage!ent+ Ste0e Phel/s Plant Manager+ !ichard Eohnson Manager o* Pro&"ction ngineering+ arl )ithers %irst6Line S")ervisor+ Ea(e Holden 1irector o* Lean Man"*act"ring <newly hire&=+ !o+ert Eames
3iagnostic Information
Sales >??@ A \=3 M Pro*it >??@ A \51.2 M Sales >??B A \:3 M Pro*it >??B A \54.= M Sales >??? A \>3 M Pro*it >??? A \5:.4 M Sales CDDD A \=9 M A/roDectedB Pro*it CDDD C \53.2 M A/roDectedB (ea&co"nt >??@ A 412 (ea&co"nt >??B A 4>: (ea&co"nt >??? A 993 (ea&co"nt CDDD A 433 A/roDectedB
"$e Inter(ie,
The ne"t da,, !o+ert Eames arri0ed at !egal, Inc., for an >@22 a.m. inter0iew. He was ushered into the +uilding and de/osited at the office of *a0id $rice,
the #ice President of F/erations. At a+out >@12, *a0id rushed into the office, out of +reath, and introduced himself to !o+ert. H7ood morningU This /lace is a mad house,I e"claimed *a0id. HI donMt (now how we could ha0e lost that +usiness, +ut we will Dust ha0e to suc( it u/ and wor( harder to ma(e it ha//en, I guess.I H)hat +usiness is thatOI inquired !o+ert. HFh, a long8time customer of ours, $L* Industries, has decided to design and de0elo/ its latest /roduct without in0ol0ing us.I H)h, did the, do thatOI as(ed !o+ert. HFh, the, made some e"cuse a+out us not +eing res/onsi0e to their needs and our continuing to raise /rices on them,I re/lied *a0id. H)ere the, correctOI H&ot as far as IMm concerned. 'ou see, we ha0e +een doing +usiness with them for nearl, 42 ,ears, and Dust +ecause some new /la,er has come into the mar(et/lace, ma(ing im/ossi+le claims a+out reducing /rices ,ear after ,ear and res/onding to their schedule needs on a dail, +asis, the, ha0e decided to change their lo,alties.I ?>
H an !egal meet those identified /erformance requirementsOI H&o wa,U If we made those (inds of outrageous commitments, we would lose our shirtU Fur qualit, would suffer, and the rest of our customer +ase would +e im/acted.I HIf the mar(et/lace is as(ing for those (inds of requirements, and ,our com/etition is demonstrating the a+ilit, to satisf, those requirements, donMt ,ou thin( ,ou ma, ha0e more than a short8term /rofita+ilit, /ro+lemOI queried !o+ert. HI am not so sure that this com/etitor, $lue Iron, can actuall, deli0er what the, sa,. Their o/eration is located in the southwest, which is not as geogra/hicall, close to $L* as we are, and, +esides, the deli0er, res/onsi0eness that $lue Iron is claiming is unheard of in our industr,,I e"/lained *a0id. H)ell,I !o+ert said, Hm, +rother8in8law ha//ens to wor( at !egional onsolidated, which is a maDor customer of $lue Iron, and the, d o deli0er on those e"/ectations. The, do reduce /rices each ,ear through cost reductions and the, do res/ond to scheduled needs of the customer.I H*o the, reall,OI H'es, the, doU Let me as( ,ou, do ,ou get out much to tal( with customers or do ,ou com/are !egalMs /roducts to the com/etitionMsOI as(ed !o+ert. H&o,I said *a0id, rather shee/ishl,. H)e donMt get out much at all. So much of our time is s/ent (ee/ing the o/eration running that there is no time to get out and see customers or com/are /roducts.I HLet me as( ,ou this. )hat /ercentage of ,our current sales +ase is made u/ of new /roductsO I mean /roducts that ha0e +een introduced within the last three ,ears,I as(ed !o+ert. H)e ha0e targeted a+out 9 to 52S. )e are currentl, at a+out 9.I HHow ha0e ,ou +een a+le to sustain the growth ,ouM0e had without introducing new /roducts at a higher rateOI HMost of the sales growth, in the last cou/le of ,ears, has come from /rice increases on our current /roducts, +ecause our unit 0olume has +een flat.I H)ould ,ou e"/ect those e"isting mar(ets to ha0e requirements similar to $L* in the near futureOI as(ed !o+ert.
HI donMt (now. I guess I ne0er reall, thought a+out it.I H)ell, if !egal, Inc., has an, indication that this could +e the new required le0el of /erformance in the mar(et/lace, I would recommend that ,ou loo( at a different wa, to align ,our o/erations to /erform at that new le0el,I !o+ert offered. H*o ,ou (now of a wa, to do thisOI HThatMs wh, IMm here. So, letMs tal(TI
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+o, It Begins
hen *a0id introduced !o+ert to !egalMs to/ management team as the new *irector of Lean Manufacturing, there was a fair amount of e,e rolling and +lan( stares in the room. *a0id e"/lained to the grou/ that, due to the recent de0elo/ments with $L*, there ma, +e the need to re8e"amine how the, currentl, conduct +usiness. HThere is an indication,I said *a0id, stretching the truth a little, Hthat this ma, +e onl, the +eginning of a long wa0e of com/etiti0e erosion of our customer +ase. )e need to re0isit how we are currentl, conducting +usiness +efore we Dust eliminate heads from the /a,roll.I $rian Ste0ens, President of !egal, as(ed, H)h, do we need to re0isit our current mode of o/erationsO If we Dust get some of the e"cess heads off the +oo(s and ma(e e0er,one aware the, need to wor( harder, we should +e all right. )e can weather this storm. $esides, this com/etitor wonMt +e a+le to deli0er on these /romises, and $L* will come +ac( to us, hat in hand, within the ne"t si" months.I HIMm afraid thatMs not true,I re/lied !o+ert. HI (now a+out this com/an, through se0eral of its current customers, and $lue Iron &oes deli0er on their /romises. The, do quite well in their niche mar(ets and are +eginning to e"/and into additional areas, !egalMs +eing one of them. The, a//ear to target mar(ets that ha0e growth o//ortunities coming through new /roduct de0elo/ments. The, align with customers who are loo(ing to attain the ne"t le0el of /erformance and who are disenchanted with their current su//l, +ase of mature, slow8mo0ing com/anies.I H)hat le0el of /erformance are we tal(ing a+outOI as(ed $ar+ara Stearn, #ice President of Sales and ustomer Ser0ice. HThe +enchmar( for man, com/anies stri0ing for world8class le0els of /erformance would +e 92X in0entor, turns /er ,ear, same8da, deli0er, on
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customer orders, manufacturing lead8times of one wee( ma"imum, in8/rocess qualit, le0els a//roaching ;;S roll8through ,ield, and annualiGed cost reductions of 9 to 52S each and e0er, ,ear,I said !o+ert.
HThose /erformance le0els are unheard of in our industr,UI +ar(ed !ichard Eohnson, !egalMs Plant Manager. H&ot one of our customers is e"/ecting us to achie0e those le0els of /erformance.I HIMm afraid that customers ha0e a funn, wa, of deciding what is and is not an acce/ta+le le0el of /erformance,I said !o+ert. H'ou see, the /erformance target is constantl, changing, and if one of ,our customers hears a+out a com/etitor who is achie0ing such le0els of /erformance, that now +ecomes the new standard for that customer. Thin( a+out it ,ourself, as a consumer. Ten ,ears ago, when ,ou wanted new or re/lacement /arts for ,our car or some consumer electronics giGmo, ,ou went to the retail outlet, told them what ,ou wanted, and ho/ed that the, carried it in stoc(. If the, didnMt, then ,ou were /laced on +ac(order and the /art ma, ha0e shown u/ 4 to = wee(s later. Toda,, ,ou search the Internet for what ,ou want and order it, and it arri0es at ,our door in man, cases the ne"t da,. Ten ,ears ago, most consumers would ha0e ne0er dreamed of that (ind of res/onsi0eness, +ut the, are coming to e"/ect it toda,, Dust as $L* is now demanding new le0els of /erformance from its su//l, +ase.I H$ut $L* is onl, one of man, customers we ha0e. Surel, the, wonMt all demand that le0el of /erformance, will the,OI as(ed $ar+ara. HI donMt (now, $ar+ara. Ha0e ,ou as(ed them latel,O Ha0e we inquired a+out what /erformance le0el the, need or are recei0ing from the com/etitionO *o we (now how we stac( u/O Are we leading or laggingO As head of sales and customer ser0ice, do ,ou ha0e an, information relati0e to thisOI inquired !o+ert. H)e (ee/ some information in our data+ase as to the com/etition, +ut it is gathered onl, when we introduce a new /roduct line, which has +een a while,I stated Samuel $utton, #ice President of Product *e0elo/ment. HIn additionTI After a+out an hour of discussion among the management team, the, finall, reached the general consensus that !egal, Inc., was not reall, /re/ared to com/ete in the mar(et/lace of the future. The, all agreed it was a good idea to +ring !o+ert on +oard to let him guide their o/eration down the /ath to +ecoming a lean manufacturer.
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66
"$e Game Plan
he /roDect team assigned to design, de0elo/, and de/lo, this lean manufacturing /rogram met the following Monda,, August 1. The team consisted of se0en full8time, dedicated em/lo,ees, including the team leader, !o+ert. The team consisted of Heather *ale, from Human !esourcesJ Eose/h $illings, the controllerJ Paula )right, from Information S,stemsJ Ste0e Phel/s, who re/resented materials managementJ !ichard Eohnson, who re/resented /lant managementJ and arl )ithers, from Production .ngineering. The, s/ent a significant amount of time that morning discussing wh, the, were together, wh, there was a need for this team, wh, were the, selected, what the, were e"/ected to accom/lish, etc. !ichard s/ent much of the morning e"/laining who he was, wh, he was there, wh, the, were there, and wh, this was an e"tremel, im/ortant /rogram for the future of the organiGation.
After a+out four hours of discussion, de+ating, 0enting, and clarif,ing, the, e0entuall, +ecame comforta+le a+out the /roDect and its o+Decti0es. The, s/ent time writing out a /roDect charter A-igure 55.5B to clarif, their understanding with e"ecuti0e management in regard to the o0erall sco/e and o+Decti0es for the /roDect. The, identified /otential ris(s, issues, and assum/tions a+out the /roDect. Through !o+ertMs facilitation, the team identified s/ecific goals for the lean manufacturing /rogram, de0elo/ed an o0erall rolling8wa0e milestone /lan A-igure 55.1B that co0ered the /roDect duration, and assigned su+Dect matter e"/erts aligned with the -i0e Primar, .lements as follows@ ? FrganiGation .lement C Heather *ale ? Logistics .lement C Ste0e Phel/s ? Process ontrol .lement C arl )ithers ? Manufacturing -low .lement C !ichard Eohnson ? Metrics .lement C Eose/h $illings
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$ecause the team had de0elo/ed this /lan together, the, had a common understanding of where the, were going, what the, were going to accom/lish, and what success loo(ed li(e when the, got there. Fn August ;, !o+ert had the team meet with e"ecuti0e management to demonstrate their understanding of the assignment, to assure clarification of /roDect direction and /roDect duration, and to esta+lish goal alignment. After the, recei0ed e"ecuti0e managementMs /ermission to mo0e forward, the /roDect team /roduced a 528 to 518slide /resentation for e"ecuti0e management to deli0er to the organiGation. It contained an o0erall stor, line e"/laining@ 5. The current state of the +usiness 1. )h, a lean manufacturing /roDect team had +een assem+led 3. The /roDect teamMs charter 4. The o0erall schedule Amilestone /lanB 9. ManagementMs commitment to (ee/ e0er,one informed as to /roDect /rogress =. How e0er,one would fit into the o/eration when it was designed
:igure 66.6 ProBect &$arter
Regal# Inc.
Title@ Pur/ose@ F+Decti0e@ Futcomes@ ProDect Fwner@ Team Leader@ -orm@ 254
ProBect &$arter 'ean Manufacturing Program 96

*esign, de0elo/, and im/lement a lean manufacturing en0ironment +, focusing on the 0alue stream for in8house manufacturing and material flow. A5B Autonomous /roduction units. A1B Self8directed wor( teamsJ relia+le and /redicta+le demand management. A3B Knowledge transfer of lean
manufacturing techniques. A4B Mo+iliGe cross8functional /roDect team. A9B -acilit, la,out and /roduct /erformance res/onsi+ilit, aligned +, /roduct grou/ing. A=B Assess and select cell team leaders. A5B Im/ro0ed deli0er, /erformance from 9=S to ;>S to !S*. A1B Manufacturing lead8time of less than 5 wee( for all /roduct grou/ings. A3B In0entor, turns A!M, )IP, -7B of 39. A4B *irect la+or /roducti0it, im/ro0ement of 19S on runner /roducts. A9B A 92S reduction in all identified &#A acti0ities. $rian Ste0ens !o+ert Eames
The Ga!e Plan
6@; )hen $rian deli0ered the message to the organiGation, through a town hall meeting, he o/ened +, sa,ing, H)e at !egal ha0e enDo,ed man, ,ears of success, and we wish to continue in that same tradition of success. The wa, we ha0e conducted +usiness u/ to this /oint has +rought us all a great deal of +enefit. )e ha0e achie0ed great success in growing our o/eration and should +e /roud of our accom/lishments. Howe0er, in order for us to continue growing our com/an,, we need to loo( at conducting +usiness in a different manner. om/etition is getting tougher, and it would a//ear there are a num+er of com/anies ni//ing at our heels and loo(ing to ta(e our customers awa,. )e cannot continue to sur0i0e without a customer +ase, and our customer +ase is +ecoming more and more demanding. HSo, as our customerMs requirements change, so too do we need to change. Therefore, in light of this situation, we ha0e assem+led a cross8functional team staffed with some of our +est /la,ers, who will +e wor(ing full time for the ne"t = to ; months on designing and im/lementing a new manufacturing o/eration. The, will +e coming to ,ou for information, as(ing for ,our in/ut, and see(ing ,our hel/. I would as( that ,ou /ro0ide them with honest, factual information and when as(ed for ,our o/inion to res/ond o/enl,. As /art of the anal,sis and design /rocess, the, will +e coming to ,ou for concurrence and feed+ac( regarding the design. 'our in/uts are im/ortant. )ithin the ne"t three months, we will +egin to im/lement this /rogram and will again :igure 66.9 Milestone Plan
Regal# Inc.
ProDect &ame@ A$ ProDect V@ 15
8 Lean Assessment is
Lean Manufacturing Program

om/lete L A//ro0ed
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+e soliciting ,our ideasJ howe0er, during im/lementation, ,ou will +e the maDor /la,ers in the /rocess +ecause ,ou will +e in0ol0ed in the actual design and arrangement of ,our wor( areas. 'ou will ha0e a sa, as to what goes where and how the wor( will flow. )e will +e guided +, some new o/erating /rinci/les, +ut ,ou will ha0e an o//ortunit, to design out man, of the wastes that are currentl, /art of ,our e"isting /rocesses. HThis will all +ecome more clear as the coming months unfold and we will +e in a more informed /osition to answer man, of the questions I am sure ,ou ha0e at this /oint. )e will +e setting u/ a suggestion +o" for +oth ideas and questions concerning the /rogram. As the team gets further into the /rogram, we can re/ort on /rogress and answer more of the questions as we go along. This is a 0er, e"citing time for us at !egal. I (now change can +e difficult and a little scar,, +ut if we all (ee/ a /ositi0e attitude and o/en mind as to what de0elo/s, I am confident we will come out on the other side a much stronger and more ca/a+le organiGation for our customers. I than( ,ou in ad0ance for ,our su//ort.I
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69
'ean Assessment
fter $rianMs announcement to the organiGation, the team was read, to +egin /hase one C Lean Assessment. The /roDect team set u/ their war room, went through three da,s of intense lean manufacturing training on the -i0e Primar, .lements with !o+ert, and +egan the tas( of assessing the o0erall le0el of leanness of the o/eration A-igures 51.5 to 51.4B. $, August 5;, the team had gathered the lean ga/ anal,sis information +, /roduction /rocess and loaded it into the /roDect data+ase. The, were now read, to +egin documenting o/erational /erformance data +, +oth /roduct grou/ and /rocess A-igure 51.9B. $efore the, +egan collecting the /erformance data, Paula made the comment to the team, HI +elie0e much of the data we need are contained within our +usiness s,stem.I !o+ert stated, H.0en though that ma, +e true, Paula, I would encouraged the team to go to ge!ba ]the Ea/anese word for wor( site^ to retrie0e the data. .0en though much of the identified data could reside in the s,stem, it ma, not +e accurate, and this initiati0e needs to +e a 0er, hands8on /rogram. In addition, it is im/ortant for us to +e seen on the sho/ floor, tal(ing with the o/erators and gathering their insight. The, are going to +e 0er, s(e/tical at this /oint, and we need to +e (eenl, aware of their concerns. )e will need to use the s,stem8generated data, +ut Dust not as the first source at this time.I The team created a +aseline tem/late for the data collection, +ro(e into /airs, and went to the sho/ floor to learn a+out the current manufacturing /rocesses. The, alread, had an idea a+out the current wea(nesses in the o/eration +ased on the lean assessment scoring, which was com/leted earlier. The team segregated the sho/ +, assem+l,, fa+rication, and /roduct grou/s. Heather and arl too( assem+l,, !ichard and !o+ert too( fa+rication, and Eose/h and Ste0e too( /roduct grou/s.
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)hen as(ed +, Heather what he thought a+out all this, arl answered, HI donMt (now. It seems li(e a sound a//roach on /a/er, +ut that is onl, /a/er. )hat ha//ens in im/lementation, now thatMs realit,. I am not quite sure ,et how we design out our current o/erational /ro+lems and de0elo/ a s,stem that is res/onsi0e to these new le0els of /erformance. )hat do ,ou thin(OI
:igure 69.6 &ontinuous "raining :igure 69.9 'ean Manufacturing Benc$mark
Lean Assess!ent
6@5 HI am concerned a+out how the /eo/le are going to /ercei0e the lean manufacturing /rogram,I said Heather. HI mean, we want to in0ol0e them
and solicit their in/ut, +ut I Dust donMt (now how the, are going to +u, in to the changes. It seems to me that, to engage them in the /rocess, we need to
:igure 69.; 'ean Manufacturing Benc$mark: Scoring :igure 69.< &ell Audit
,
ell name was hardl, 0isi+leJ howe0er, +oundaries were well mar(ed on the sho/ floor. A larger A/oster8siGeB cell name should +e utiliGed. It was 0er, e0ident on all /art num+ers 0iewed. P $ su+assem+lies are using Kan+anJ howe0er, not at the /lanned le0els. A wor(a+le wor( /rocess was su//osed to ha0e recentl, +een documentedJ howe0er, it still requires additional de0elo/ment. A wor(a+le wor( chec(list is +eing utiliGed. 513 incinnati, FH Scoring Kan+an 52 .qui/ment rearrangement com/lete
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find out what would moti0ate them to change. Show them where the, fit into the /rogram.I HI thin( ,ou ha0e a good /oint there. )hen we get a chance, we need to tal( with !o+ert a+out those issues,I said arl. As !ichard and !o+ert made there wa, to the +ac( sho/s, where the fa+rication o/erations were located, a first8line su/er0isor named Ea(e a//roached !ichard and as(ed, HAm I going to ha0e a Do+ when this is o0er, Mr. EohnsonO $ecause I ha0e a cousin o0er in Louis0ille who went through one of these Rlean thingsM and the, laid off nearl, half the /lant and outsourced almost all the wor( to somewhere else.I !ichard reassured him +, sa,ing, HEa(e, ,ou do not ha0e to worr, a+out losing ,our Do+ as a result of this lean /rogram. )hen all is said and done, ,our Do+ ma, ha0e changed or ,ou ma, +e doing a different Do+, +ut ,ou wonMt +e eliminated from the /a,roll, unless, of course, ,ou do not want to wor( in the new lean manufacturing en0ironment. 'ou see, the thing is if we donMt do something li(e this now there is a good chance I will need to send /eo/le out the door later, and I donMt want to do that.I HI understand,I said Ea(e. As Ste0e and Eose/h made their wa, to the shi//ing area to as( the /ac(ers questions /ertaining to the handling times of SKUs, Eose/h made the statement, HThis /rogram is reall, going to /la, ha0oc with m, o0erhead a+sor/tion num+ers. All the indi0idual de/artment allocations are measured +, each o/erationMs hours /roduced /er da,. If we start changing the focus to
:igure 69.4 'ean Assessment 3ata &ollection Items
% S/ace Asq. ft.B % )IP le0el A\ or equi0alentB % Tra0el distance A/arts and /eo/leB % Manufacturing lead8time AunitsB % *T* lead8time Ada,sB % Fut/ut//erson/unit A/c/minuteB % .fficienc, ASB % hangeo0er time AminutesB % Staff le0el AheadsB % Un/lanned downtime AminutesB % Scheduled time AhoursB % Actual time AhoursB % Planned out/ut AunitsB % Actual out/ut AunitsB % Planned mfg. c,cle time AminutesB % Actual mfg. c,cle time AminutesB % V of units rewor(ed % V of units defecti0e % .m/lo,ee turno0er ASB % .m/lo,ee a+sences ASB % Annual out/ut 0olume AunitsB Results reflected 1y process# 1y product
Lean Assess!ent
6@? actual out/ut for a cell, our o0erhead ma, not +e a+sor+ed as it has +een +udgeted and that will lea0e us under8a+sor+ed, which affects our /rofit num+ers. H$ut, it has +een that indi0idual focus on RlocaliGed o/erationsM and /roducing more hours than we need to satisf, the customer demand that has caused us to ha0e the long lead8times that now e"ist in the factor,,I said Ste0e. H)e need to concentrate on im/ro0ing the o0erall /rocess and quit focusing on the indi0idual o/erations, if we e0er e"/ect to achie0e the le0els of /erformance that ha0e +een targeted.I As the /roDect team was gathering information on the /rocess, Paula was setting u/ the data+ase that would house all the data +eing collected. She de0ised a sim/le s/readsheet design with ta+s for each of the /roduct grou/s according to /roduction /rocess. This wa, no matter what data the, needed for anal,sis, the, were 0er, eas, to e"tract. As each team com/leted their tem/lates, the, were turned into a data entr, cler( to load into the data+ase. Fnce the /roDect team had com/leted the data gathering, the, were read, to de0elo/ an understanding of the mar(et/lace. !o+ert showed the /roDect team two tem/lates A-igures 51.= and 51.:B and told them to identif, who in the organiGation had access to the information necessar, to com/lete the requested information. Paula felt that she ma, +e a+le to e"tract some of the data from the +usiness s,stem, +ut most of it would ha0e to come from other sources@ HI (now I can /ull and segregate :igure 69.= Manufacturing Strategy: Market Segmentation 66@
the sales data +ased on histor,, +ut the total mar(et and /otential mar(et ha0e to come from sales and customer ser0ice.I arl stated, HI donMt thin( customer ser0ice would +e the /lace to find those /roDected data. I thin( /roduct de0elo/ment should ha0e a 0iew of the total mar(et requirements.I HMa,+e we need to tal( with +oth,I said !o+ert. H)h, donMt we +ring in $ar+ara and Samuel, with a few of their /roduct e"/erts, and discuss with them who has access to which data and then wor( with those e"/erts to com/lete +oth of these tem/lates. !emem+er, we need to ha0e a /rett, relia+le 0iew of the current mar(et/lace, /articularl, where s/ecific /roduct o//ortunities e"ist, and in/ut from the customers as to where we are com/etiti0e and where we are not. This is where much of our design criteria information will +e drawn from in order to align with mar(eting as we get into the -uture State *esign /hase.I As the team com/leted this final data8gathering effort, the, were a+le to draw a good /icture of how !egal stood in relation to the conce/t of lean. The, had an increased understanding of the mar(et/lace through actual data collected from the customers through sur0e,s and inter0iews. The, /resented their findings to e"ecuti0e management on August 1:. There was not a lot of de+ate o0er the num+ers Awhich had +een seen in the /astB, +ecause the /rocess owners $ar+ara and Samuel had +een /art of the e"ercise and had alread, +ought into the 0alidit, of the data. U/on recei0ing a//ro0al for the wor( in /hase one, the team was released to mo0e onto /hase two C urrent State 7a/.
:igure 69.5 Manufacturing Strategy: &ompetiti(e &riteria 666
6;
&urrent State Gap
he first order of +usiness for the /roDect team was to gain a +etter understanding of the o0erall /rocess flow of the factor,. The, all had their own ideas a+out how the, thought the /rocess wor(ed, +ut no+od, was confident a+out reall, (nowing for sureJ therefore, !o+ert once again had the /roDect team s/lit into grou/s. The first grou/ consisted of Paula, !ichard, and Ste0e, who were to create an o0erall material and information flow ma/ of the o/eration to gain a +etter insight into how the /h,sical material and information currentl, flowed within the /lant. The, would identif, the communication lin(s +etween su//liers and customers Ainternal and e"ternalB, the medium used to /resent the information, and how often there was an information transaction A-igures 53.5B. The second grou/ was made u/ of Heather, arl, and Eose/h, who were gi0en the tas( of generating a Le0el 2 and Le0el 5 /rocess ma/ of the current /roduction /rocess. The, were shown how to gather the necessar, information through a su//lier8in/ut8/rocess8out/ut8customer ASIPF B methodolog, A-igure 53.1B. !o+ert challenged the teams to gather enough information a+out the e"isting /rocess in order to ma(e good decisions in the -uture State *esign /hase, +ut not so much information that the, got +ogged down with anal,sis /aral,sis. HThat is wh, it is im/ortant to sta, at a Le0el 2 and Le0el 5 for the SIPF ,I he e"/lained. H)e are tr,ing to descri+e RwhatM is ha//ening in the /rocess, not Rhow.M )e ha0e targeted two wee(s for com/letion of this effort, /er our milestone /lan. In order to sta, on schedule, we need to +e read, to /erform root cause anal,sis +, Se/tem+er 52.I
"
669
$, :@32 a.m. Monda, morning, +oth grou/s were off and running. Paula had ta(en the lead for de0elo/ing the material and information flow ma/. F0er the wee(end, she had +een thin(ing a+out how the, might a//roach it. HI thin( if we identif, the /roduction /rocesses that were loaded on the data+ase and re0iew the /roduct families we created during wee( three, we will ha0e a good indication as to where to start. I thin( we should la, out the maDor /rocesses on a white +oard and re/resent the /rimar, /h,sical material flows with the color green and show the /rimar, information flows in red.I HFnce we ha0e that de0elo/ed, we can inter0iew those in the /rocess as to the format or medium used to transmit the information. 'ou (now T fa", or a hot list, or 3 9 card, or electronic, whate0er,I e"/lained !ichard. HAnd, once we ha0e these data, we can +egin to measure how long it ta(es
for the information to change hands and how often,I Ste0e said. H!emem+er,I Paula /ointed out, Hit is e"tremel, im/ortant that we 0erif, the data with the /rocess owners or those who wor( in the /rocess. Ma,+e we should schedule a meeting ne"t Monda, with se0eral of the first8line su/er0isors C Ea(e and $en and /ossi+l, &at C to 0alidate what we find.I
:igure 6;.6 Material and Information :lo, for 'ean Implementation
C"rrent State Ga)
66; HThat sounds li(e a good idea to me. I will ma(e sure that the, will +e a0aila+le earl, ne"t wee( to do that,I said !ichard. As the first grou/ was ma(ing /lans for the material and information ma/, the mem+ers of the second grou/ were ma(ing similar /lans to ca/ture the Le0el 2 and Le0el 5 SIPF data. H)hat do ,ou thin( a+out starting with out/uts +, /roduct grou/ing, identif,ing the a//ro/riate customers for those out/uts, and then documenting the ste/s in the /rocess that generate those out/utsOI as(ed arl. HThat sounds reasona+le to me,I said Eose/h. HThen we can list the su//liers for the /rocess and record the in/uts.I HI thin( I would do it the other wa, around,I argued Heather. HI would identif, the in/uts that trigger the /rocess to +egin and then document those su//liers who su//l, those in/uts.I HI can li0e with doing it that wa,,I said Eose/h. HAs long as we get done +, Se/tem+er 52.I arl ga0e Eose/h a loo(. HFnce we ha0e Le0el 2 documented for the o0erall o/erations /rocess, we can then +rea( out the le0el 5 su+/rocesses into their s/ecific acti0ities,I said arl. :igure 6;.9 'e(el 6: Supplier Interface 66<
HKee/ in mind there ma, +e se0eral Le0el 5 /rocess flows. )e should /ro+a+l, segregate the flows +, customer interface, su//lier interface, manufacturing, and /roduction//lanning control. Also, remem+er that !o+ert told us to limit the num+er of ste/s to +etween = and 51, so as not to go too dee/ into the /rocess.I Heather continued, HI thin( if we a//roach our largest /roduct famil, firstTI $, the +eginning of Se/tem+er, the two grou/s had made good /rogress on each t,/e of /rocess ma/. The, documented all the maDor acti0ities, ca/tured the information lin(ages, understood how /h,sical material was trans/orted around the sho/, and recorded the time required for each /rocess ste/ and the out/ut /erformance for each /roduct grou/ing. In addition, the, had 0erified this information with the /rocess owners and recei0ed +u,in on the data. )hen Se/tem+er 52 arri0ed, it was time to +egin anal,sis of the +aseline data. In order to guide the decision /rocess used in determining A5B the sequence and /riorit, for im/lementation, A1B which areas were in need of the most hel/, and A3B Dustification for additional e"/enditures, the /roDect team needed to conduct a root cause anal,sis of the current o/erating en0ironment. !o+ert once again had the team +rea( u/ into two grou/s. The first grou/, led +, arl, was to concentrate on the anal,sis of /roduction and
schedule loss. The second grou/, led +, Ste0e, was to address waste HmudaI issues and elements anal,sis. These two grou/s were instructed to e"tract data from their +aseline data+ase, /rocess ma/s, o+ser0ations, inter0iews, mar(eting data, and the lean assessments to generate a clear /icture of where wastes could +e found in the current o/eration, the associated causes of the wastes, and their im/act on +usiness /erformance. .ach grou/ agreed to a 98da, wor( window to com/lete these tas(s and e"/ected to finish on Se/tem+er 5:, after which the, would /resent their findings to e"ecuti0e management on Se/tem+er 15. As arl, Paula, and !ichard headed for the war room to +egin /lotting their ne"t mo0e, Paula as(ed arl if he had a clue as to how the, were going to come u/ with this information. arl re/lied, HI ha0e +een mulling o0er this one since !o+ert showed it to us during wee( two and I thin( I ha0e a /lan. I want to determine a standard out/ut or scheduled amount for each /roduct +ased on the /remise of ma(ing toda, what we need toda,. I then want to e"tra/olate the data we re0iew this wee( on a monthl, +asis, and then I want to com/are the data to the standard. The results are not intended to +e additi0e, +ut rather show order of magnitude for the /ro+lems.I H*id ,ou understand what he Dust saidOI !ichard as(ed Paula.
C"rrent State Ga)
664 HI heard him sa, he had a /lan, +ut after that I ha0enMt a clueUI e"claimed Paula. HLet me tr, again,I said arl. HIf I ha0e a /roduction area that is required to /roduce 522 units /er da, to meet dail, customer demand, and the current Rroll8through ,ieldM on that /rocess is >2S, then I ha0e a /roduction loss of 12 units /er da,, or 422 /er month if there are 12 wor(ing da,s in a month. &ow, if that same /roduction area has un/lanned equi/ment downtime of 1 hours /er da,, that would translate to a /roduction loss of 1= units /er da,, or 912 /er month.I HHow did ,ou figure thatOI as(ed !ichard. H)ell, if we currentl, run on a one8shift o/eration of :.9 hours /er shift, that means we need to /roduce 53.3 units /er hour, which I got +, di0iding 522 +, :.9. Multi/l, that +, the 18hour loss /er da, times 12 da,s /er month, and ,ou get 912 units lost /er month,I e"/lained arl. H!emem+er, I did not sa, the num+ers were additi0e, Dust that the, re/resented order of magnitude.I HF(a,, I guess I understand the /roduction loss, +ut what a+out this schedule loss,I as(ed Paula. HThat one too( a +it more wor(, +ut I thin( it could wor( li(e this,I said arl. HThin( a+out the se0en (inds of waste RmudaM that !o+ert tal(ed a+out during the lean manufacturing training. He tal(ed a+out waiting, tra0el, dela,s, etc. These (inds of waste can significantl, im/act an o/erator who is su//osed to +e doing 0alue8added wor(. If I ha0e an o/erator who is idle 32 minutes waiting for /arts or has to s/end 12 minutes loo(ing for a for( truc( to gather tooling for a setu/, that would +e a schedule time loss +ecause he is not a+le to /erform 0alue8added wor(. -or e"am/le, if I determine that an o/erator is s/ending 5.9 hours /er da, chasing down tooling and his /roduction area needs to /roduce 522 /arts /er da,, li(e +efore, then his /otential schedule im/act could +e 53.3 /arts /er hour times 5.9 hours /er da,, which would +e a schedule loss of 12 /arts /er da,.I HI see,I said !ichard. HSo, we would gather /rocess /erformance data a+out each /roduction area and /rioritiGe the causes +ased on the magnitude of the im/act.I H."actl,,I said arl.
HI ho/e ,ou two (now what ,ou are doing,I sighed Paula. As arlMs grou/ wor(ed their wa, through the data and +egan to categoriGe the causes and magnitude of the wastes, the, +egan to disco0er some 0er, interesting /erformance im/acts relati0e to the current o/eration. It was through the gathering of the data and /lacing them in this format that the, +egan to de0elo/ an a//reciation for Dust how much loss was ta(ing /lace within the +usiness A-igure 53.3B. 66=
Ste0eMs grou/, on the other hand, did not +egin +, going to the war room. Instead, the, went out to +rea(fast. Ste0e offered to treat them to +rea(fast for a chance to get awa, to gather their thoughts and collecti0el, decide the +est wa, to a//roach this ne"t tas(. HHow do ,ou two thin( we should tac(le this ne"t assignmentOI inquired Ste0e. $etween mouthfuls, Eose/h said, HI donMt care as long as we are done +, -rida,.I H'ou are a real stic(ler when it comes to schedules, arenMt ,ou, EoeOI e"claimed Heather. H)hat can I sa,O IMm an accountant,I e"claimed Eose/h. HI ha0e li0ed for month8end closings all m, life. ItMs in m, +lood.I HAre ,ou li(e this at homeOI as(ed Heather. H'ou +et,I said Eose/h. HHow does ,our wife stand itOI inquired Heather. HAfter awhile, I +egin to grow on ,ou,I claimed Eose/h. Heather ga0e u/. H)hat do ,ou thin(, Ste0eO How do ,ou thin( we should /roceedOI as(ed Heather. :igure 6;.; Production 'oss

C"rrent State Ga)
665 HI guess I do not see this as +eing all that difficult. As I thin( +ac( to when !o+ert first showed us the issue/element matri", it seems to me that itMs a matter of identif,ing each of the current /roduction areas and listing all of the /rominent issues in the area. I +elie0e we can gather enough information from the data+ase to generate a su+stantial list of issues for each area. After ha0ing identified the +usiness issue affecting each area, itMs a matter of categoriGing them according to the wastes that are contri+uting to those issues A-igure 53.4B. -rom there, we will +e a+le to identif, which elements are necessar, to fi" the +usiness o/eration /ro+lem we are e"/eriencing. How does that sound to ,ou, EoeOI HSounds fine to me, as long as we are done +, -rida,,I he said. Heather and Ste0e Dust loo(ed at each other and shoo( their heads. $, -rida,, Se/tem+er 5:, each of the grou/s had +een a+le to create either a matri" or Pareto diagram +, /roduction area. The, were a+le to then s/end the following Monda, and Tuesda, morning /ulling their e"ecuti0e management de+riefing /resentation together. The /rimar, /ur/ose :igure 6;.< 'ean Manufacturing Issue/Element Matrix 66>
of the /resentation was to secure management agreement as to the magnitude of the /ro+lem, to /ro0ide an understanding of the le0el of /otential +enefit a0aila+le, and to e"/lain where the le0erage /oints were to guide the sequence for im/lementation. In addition, the team had created a quic(hit list of short8term im/ro0ements that were disco0ered during the /roduction and schedule loss anal,sis.
!o+ert (new this would +e the first real, tangi+le loo( +, !egalMs e"ecuti0e management at how large the ga/ was and how great the o//ortunit,. It also was the first /reliminar, 0iew into how much mone, the, ma, +e required to s/end to ma(e this /rogram a success. The team recommended that the to/ fi0e /roduction loss areas +e targeted for KaiGen im/ro0ements immediatel, as /art of the ne"t /hase. The /resentation was made Dointl, +, Ste0e and Heather and was a great success. The /roDect team recei0ed a//ro0al to ad0ance onward to /hase three C -uture State *esign. :igure 6;.4 Luick2+it 'ist 66?
6<
:uture State 3esign
n )ednesda,, Se/tem+er 11, $rian assem+led the team in the war room and congratulated them on a Do+ well done. He /ointed out that the, had made tremendous /rogress to this /oint and were right on schedule. H&ow that we ha0e come to an agreement as to where we are, we can now +egin the Dourne, of designing where we want to +e. This is where the fun startsUI !o+ert then e"/lained to the /roDect team, HFur first ste/ will +e to create a conce/t design of the entire factor, floor. )e will determine how /h,sical material flows +etween the new manufacturing cells. )e will generate a +loc( la,out for the /lant. )e will anal,Ge /roduct demand +eha0iors and understand the o0erall resource requirements for staffing and equi/ment.I HHow long will this ta(eOI as(ed Eose/h. HAccording to our original milestone /lan, we ha0e one wee(,I said Heather. HAfter anal,Ging the /art flow +etween /roduction areas, o+taining a +etter understanding of /rocess 0ariation, and considering what we now (now a+out the mar(et /lace e"/ectations, I +elie0e we should e"/and the target com/letion to two wee(s,I stated !o+ert. H$rian and I ha0e alread, had this discussion, and he agrees we should e"tend the deli0er, date in order to get the Do+ done right. )e ma, +e a+le to ma(e it u/ in detail design or definitel, as /art of im/lementation. This /hase is e"tremel, im/ortant, +ecause it sets the foundation and direction for the whole rest of the /rogram. )ould e0er,one agreeOI The grou/ as a whole nodded their heads in confirmation.
69@
HF(a,, then,I said !o+ert. HI would li(e to than( $rian for his words of encouragement to the team and in the same +reath I would li(e to as( him to lea0e so we can get some wor( done.I $rian nodded his head and made his wa, to the door.
H&ow, what should we do firstOI as(ed !o+ert. HThe s/ecific deli0era+les for conce/t design include the num+er of cells required, an assessment of demand +eha0ior, the new demand management /rocess, /lant load /rofiles, staffing /roDections, +loc( la,outs, /roduct alignment to cells, im/lementation logic, clarification of design criteria, a weighted decision matri" for la,out o/tions, organiGation chart, +usiness cases for Dustif,ing e"/enditures, and defined e"it criteria for each of the cells. *oes an,one want to recommend an a//roachOI HIf it were u/ to me, I would ma(e sure I had clarification on the design criteria so I (new what we were designing the /rocess to achie0e,I said arl. HThen I would want to understand m, /roduct demand +eha0ior so I understood which /roducts were high 0s. low 0olume and what (ind of demand 0ariation I need to accommodate.I HI agreeJ that is an e"cellent starting /oint,I said !o+ert. H)hat ne"t, !ichardOI HI would ta(e a shot at aligning which /roducts could +e grou/ed into which cells. I would consider aligning +, end customer, high 0olume, grou/ technolog,, common routing, material t,/e, etc. I would loo( at the different o/tions and select the a//roach that +est fits our design criteria,I offered !ichard. HI thin( those are the right items, +ut I would do them in the re0erse order,I said Paula. HI thin( we should agree on the +est o/tions first and then allocate /roducts to cells. If we do that, then we can determine the num+er of cells required, the resource load on each cell, and the staffing needed to su//ort the cell.I H-rom there we could define our quantitati0e and qualitati0e e"it criteria for each of the cells for the im/lementation audit,I declared Heather. H$, then we should ha0e enough information to generate the +loc( la,out,I said !ichard. H-rom that /oint we can +egin considering the im/lementation logic, de0elo/ an, +usiness case Dustification required, and generate an o0erall organiGation conce/t, as we will ha0e a framewor( for the factor,,I said Eose/h. HI li(e it,I said !o+ert. H!ecogniGe that, although some of these items can +e done in /arallel, the first few are reall, de/endent items and should +e accom/lished first. *oes an,one ha0e questionsO Then lets get started. I want Heather and arlTI
%"t"re State 1esign
696 $, the end of the first wee(, the /roDect team had com/leted all items u/ to and including the creation of a +loc( la,out A-igures 54.5 to 54.4B. As the, a//roached the second wee(, a significant amount of discussion ensued around the im/lementation sequence and generation of an organiGation conce/t. :igure 6<.6 Product 3emand Be$a(ior :igure 6<.9 ption Selection Matrix
V 5 1 3 4 9 = : > 3esign &riteria
Su//ort !egal, Inc., world8class
manufacturing 0ision Su//ort runner, re/eater, stranger strateg, -acilitate lin(ages to customer Su//ort sim/le materials flow Increase ca/acit, fle"i+ilit, UtiliGe wor(8cell a//roach !educe non80alue8added s/ace Pro0ide documented wor( instructions 4.> 4.: 4.> 4.> 4.3 4.3 4.3 4.9 2.> 1.3 2.> 2.> 5.4 1.1 2.: 3.> 4.> 3.5 4.2 3.= 4.3 4.3 4.3 4.9
&riteria )eig$t E ption 6F :unctional 'ayout E ption ;F By Product E ption 9F By Product ,it$ Stranger Area
<.> <.5 <.@ <.> <.; <.; <.; <.4
699
HTI donMt +elie0e we should start in the shi//ing area. I (now we are ha0ing significant through/ut loss in the /ress area due to un/lanned down time on equi/ment,I declared arl. HI (now if we start there first, we can continue to gain more short8term +enefits.I HI hear what ,ou are sa,ing, +ut if we selected the customer cell o/tion V1 for three of our assem+l, cells, then I thin( that is where we should +egin in order to achie0e our o+Decti0e of customer res/onsi0eness,I stated Ste0e. HFh, ,ou Dust donMt want to deal with the 0endor deli0er, issues that would arise if we started in the /ress area first,I arl uttered sarcasticall,. HThatMs not trueU )e found that our customers for housing and +earing /roducts are most unha//, with our res/onsi0eness. )e also found that /art of the reason it ta(es so long is the fact that com/leted /arts sit in /ac(aging and shi//ing for 3 to 4 da,s +efore going out the door. If we can reduce that time to Gero +, doing the /ac(aging right in the assem+l, area and sending the /roduct directl, to shi//ing, we could most assuredl, meet our customersM e"/ectations of ne"t8da, deli0er, on housing and +earing /roducts,I declared Ste0e.
HF(a,, o(a,, settle down,I said !o+ert. HLetMs go +ac( to the reason wh, we are doing lean in the first /lace. )e ha0e had a customer lea0e the +usiness due to lac( of res/onsi0eness. $, losing that 0olume, we ha0e /laced oursel0es in a /osition that will erode o/erating /rofit unless we reduce costs, namel, :igure 6<.; &ell: Exit &riteria Luantitati(e
H Manufacturing lead2time: 9< $ours H n2time deli(ery: ??M H Luality yield: ?>M
Lualitati(e
H H H H H H H H
%"t"re State 1esign
4S $ousekeeping program &ell leader and team mem1ers &ommunication 1oard 3ocumented operating rules "raining skills matrix Posted performance measures )eekly ,ork plan Sta1le Aan1an replenis$ment systems
69; heads. )e are not in a sur0i0al mode ,et, +ut it is coming. I donMt thin( we want to do an,thing that will /lace our su//l, chain at ris(. )e ha0e not demonstrated we (now how to do lean oursel0esJ therefore, we donMt ha0e much e"/erience to stand on in addressing the current su//lier +ase with lean requirements that we ha0e not demonstrated oursel0es. If we can continue to use our su//l, +ase as it is currentl, /erforming and can minimiGe ris( to the /roDect, I thin( those are im/ortant factors to consider. )e are not losing mone,, cash flow is /ositi0e, and we are not as(ing to s/end a lot of mone, to fund the /roDect at this /oint.I !o+ert continued, H)hat we need is a 0isi+le winner and it needs to focus on the e"ternal customer. I would agree with Ste0e. )e need to start in assem+l, and ma(e that area sta+le. Then we can focus on a fa+rication area that has significant /roduction loss and deli0ers /arts to assem+l, along those s/ecific /roduct families and ma(e that sta+le. Then we can lin( the two together using Kan+an. !ecogniGe that the fa+rication cell ma, 0er, well ma(e /arts for other areas, too, +ut we can deal with that in detail design and the transition /lan. )ould this initial sequence ma(e sense to e0er,oneOI Most e0er,one nodded their heads in consensusJ howe0er, full agreement would ha0e to come later. :igure 6<.< Before/After Block 'ayout 69<
H&ow, what a+out this organiGation conce/tOI as(ed !o+ert. HIs the issue whether we can come u/ with a /ro/osed organiGation for this lean o/eration or whether we want to show a /ro/osed organiGation for this lean o/erationOI HI ha0e had a concern for se0eral wee(s now a+out getting /eo/le engaged in the /rocess,I said Heather. HI ha0e an issue with /u+lishing a /ro/osed organiGation conce/t without ha0ing tal(ed with the /eo/le who are +eing as(ed to change in the /rocess. )e ha0e not told them where the, fit in. )e ha0e not shown them how the, are going to +e affected. )e ha0e not answered whatMs in it for them if the, /artici/ate in the /rocess. And, ,et, we are creating a /ro/osed organiGation that ma, show them doing a different Do+ or show them without a Do+ altogether. I am uncomforta+le a+out doing that.I HLet me tr, to e"/lain the reason wh, we would do this and how it should +e done,I stated !o+ert. H-irst of all, the organiGation conce/t is to +e shared at this stage with no one +ut this team and e"ecuti0e management. Second, the organiGation conce/t is generic in that it /ortra,s what the 0arious roles
and res/onsi+ilities would +e at each le0el and area within the organiGation, and the staffing num+ers would +e an end8state /roDection +ased on e"/ected demand le0els and the designed staffing to su//ort the demand A-igure 54.9B. )e need to understand what staffing le0els are required to su//ort the +usiness in order to sustain required /rofit le0els. &o one will lose their Do+ as a result of the lean manufacturing /rogram. Howe0er, if demand falls off and we cannot re8de/lo, em/lo,ees to other 0alue8added or im/ro0ement initiati0es, then a certain num+er will +e laid off.I !o+ert continued, H)e need to let e"ecuti0e management (now what staffing le0el is required to sustain the lean manufacturing en0ironment and, if we are currentl, staffed hea0,, we need to secure more wor( through increased sales of e"isting /roducts, new /roducts, or new mar(ets. )e do this +, arming mar(eting with a com/etiti0e ad0antage in the mar(et /lace, so we can grow the +usiness. !emem+er, this information is o+0iousl, sensiti0e and must +e (e/t under control.I HI understand the need for the organiGation data, +ut when are we /lanning to share it with the /eo/le +eing affectedOI as(ed Heather. H7ood question,I arl said, as he win(ed at Heather. H)e ha0e +een going at this for two months now and /eo/le are +eginning to get ner0ous. The, are as(ing a+out what is going on. )h, the, ha0enMt heard an,thing, and whether the, are going to li(e this /rogram.I HFne of the areas we ha0e not focused on ,et is the final /lant communication. )e ha0e made the o/ening /resentation, we ha0e shown e0er,one the milestone /lan, the, ha0e seen the /roDect charter, and the, (now when we are e"/ected to /resent our findings. )e ha0e +een /u+lishing the newsletter
%"t"re State 1esign
694 e0er, other wee(, and we ha0e +een res/onding to the issue +o" in order to address indi0idual concerns as we go along,I stated !o+ert. H)hat issue +o"OI as(ed Eose/h. HThe one $rian told them would +e /ut in /lace and res/onded to on a regular +asis.I HHa0e we +een (ee/ing u/ with the em/lo,ee issues +o"OI as(ed !o+ert. .0er,one loo(ed at each other. The, had forgotten to assign res/onsi+ilit, for the issue +o". !ichard ran out to the floor and found the +o" stuffed full of questions that had not +een res/onded to since da, one. He immediatel, em/tied the +o" and +rought the stac( of /a/er into the grou/. The team was dum+founded and immediatel, +egan cataloging the issues/suggestions and documenting res/onses to the questions. $, a+out 52@22 that night the, had a written res/onse to all the issues and suggestions and had them /osted in multi/le locations on the sho/ floor. In addition, the, di0ided u/ the sho/ and made /lans to 0isit the sho/ floor the ne"t da, and tal( directl, with the /eo/le and a/ologiGe for the /roDect teamMs mismanagement of the /rocess. The ne"t morning, when the team 0isited the sho/ floor, the maDorit, of them were greeted rather coldl, when the, inquired a+out the su+Dect. The, were treated to such mutterings as H/rima donna,I Hout of touch,I Hi0or, :igure 6<.4 rgani!ation &oncept
69=
tower,I Hnot team /la,ers.I It too( the team a+out three hours to go around and smooth o0er relations with those em/lo,ees most /otentiall, affected +, the change initiati0e. After their encounter on the sho/ floor, !o+ert gathered the troo/s and re8o/ened the discussion a+out communication and the conce/t
of res/onsi+ilit,, accounta+ilit,, and authorit, A!AAB. HAs we tal(ed a+out during the first da,s of the /roDect, when ,ou set u/ /roDect deli0era+les and ownershi/, !AA !"st +e esta+lished +, name for each deli0era+le in the /roDect. If e0er,+od, has res/onsi+ilit,, then no+od, has res/onsi+ilit,. I +elie0e we ha0e learned a 0alua+le lesson a+out clearl, stating accounta+ilit,,I said !o+ert. H&ow, letMs tal( a+out this communication /lan to +e de0elo/ed,I !o+ert continued. H ontained in that /lan is to +e a stor, line that answers some 0er, s/ecific questions@ A5B )h, are we changingO A1B )hat are we changingO A3B )here are we nowO A4B )hatMs in it for meO At this /oint in the /roDect, we cannot answer these questions. )e are getting closer to +eing a+le to answer these questions, +ut we are not there ,et. Howe0er, +, the end of this /hase, we will (now these answers and will /resent them in the /lant8wide communication that is targeted at the end of this /hase.I H*oes it ma(e sense to wait until we are three months into the /roDect +efore we engage the /eo/le with this issueOI inquired Heather. HI thin( it is a matter of (ee/ing with each /ersonMs role for the /roDect,I said Ste0e. HThin( a+out it. )e ha0e +rought the /rocess owners in e0er, ste/ of the wa, as we ha0e gone through each /hase of the /roDect. )e ha0e gotten their in/ut and +u,8in on the 0alidit, of the data and not made changes without their concurrence. )e ha0e not made an, changes to the o/erational le0el ,et and wonMt until we +egin im/lementation with the KaiGen e0ents. Fur sho/floor o/erators ha0e not +een affected, and when the, are, the, will +e designing their own wor( areas. )e will ha0e done some of the u/8front anal,sis and ma, ha0e changed what /arts are made where, +ut the, will +e in0ol0ed e0er, ste/ of the wa, when changes are made in their areas on the sho/ floor.I HI hear what ,ou are sa,ing. I Dust want to ma(e sure we donMt lose sight of the /eo/le, +ecause I +elie0e their acce/tance or reDection of this /roDect could ha0e a maDor im/act on whether we are successful or not,I stated Heather. All the /eo/le in the room nodded their heads in agreement. H7ood, now itMs time to +egin ste/ two C detail design,I said !o+ert. HThe deli0era+les from this effort will feed directl, to the im/lementation teams for the KaiGen e0ent. -or each of the cells, we will +e generating a ta(t time, cell wor(load, equi/ment requirements, estimated resources, assigned
%"t"re State 1esign
695 /roduct mi", SIPF , cell design guidelines, and /otential measures. This effort will sa0e us a tremendous amount of time during im/lementation. *oes an,one ha0e a suggestion as to the +est wa, to get through thisO )e currentl, ha0e identified nine assem+l,, si" fa+rication, and three ser0ice cells for a total of 5> manufacturing cells.I HI would recommend we s/lit the team +etween assem+l, and the rest,I suggested arl. HI could lead the assem+l, team and !ichard could ta(e fa+rication and ser0ice, since we gathered the data from those areas initiall,.I HThat wor(s for me,I said !ichard. HThatMs fine with me, as long as we are finished in two wee(s,I Paula said, as she nudged Eose/h in the arm. The team +urst into laughter. $ecause there were no o+Dections, the teams were off and running. The, Dointl, created some of the tem/lates, so the information was /resented in a uniform manner. The, ca/tured all the demand data in order to@
5. *e0elo/ a designed dail, /roduction rate for the ta(t time calculation. 1. 7enerate the dail, /roduct8mi" schedule required for the cells. -rom there, the, generated a SIPF /rocess ma/ for each cell so that all the /art num+ers for each cell had an identified su//lier/customer and an, s/ecial material handling or /rocessing requirements could +e identified. Fnce the, had the required ste/s in the /rocess documented, the teams ca/tured the current wor( content for each o/eration for each /art num+er. This allowed them to calculate ta(t time, rough out the equi/ment loads, and to /roDect /otential staffing requirements for each of the cells A-igures 54.= to 54.;B. In addition to conducting a /h,sical flow data anal,sis for the cells, the teams de0elo/ed design guidelines for each cell, definitions for the /otential measures at the cell le0el, and a /otential organiGation conce/t at the cell le0el. The team s/ent e0er, +it of the ne"t two wee(s designing, calculating, discussing, and de+ating the design of each of the cells. As the end of the second wee( drew to a close, the /roDect team was +eginning to feel /rett, good a+out what the, had de0elo/ed. An es)rit &e cor)s was +eginning to set in. The, were +ecoming of one mind a+out the /roDect and generating real e"citement a+out the u/coming im/lementation. Fn -rida,, Fcto+er 59, !o+ert +egan shifting the teamMs focus awa, from the 0er, detailed, tactical le0el to a +roader, more strategic le0el. He told them, H)e need to s/end the last two da,s de0elo/ing the transition strateg, and im/lementation /lan for the /rogram. The transition strateg, should address how we are going to im/lement the /rogram without shutting down the 69>
+usiness. It should answer whether or not we are going to +uild /roduct ahead of schedule in order to mo0e equi/ment and +uffer customer demand. Are we mo0ing on the wee(endO )ill we utiliGe the KaiGen a//roachO )ill we use /ush8and8/ull scheduling methodolog, in common resource areas for some of the /arts or turn o0er the whole logistics s,stem at one timeO How will we locate, identif,, count, and trac( in0entor, during the relocationO How do we handle our initial e"cess in0entor, outside the Kan+an s,stemO In addition to the transition strateg,, the im/lementation /lan needs to +e documented. It needs to identif, the /ilot cell, which /roduction cells go second and third, and which /roduct grou/s we are focusing on first, second, and third, etc.I ASee -igure 54.52.B As the /roDect team wor(ed fe0erishl, to com/lete the tas( +, mid8wee(, !o+ert was /re/aring the e"ecuti0e management team for the final de+riefing on -rida,. He ga0e them a /re0iew of what was coming and as(ed if there was an,thing the, could thin( of that was of concern that the team should loo( into +efore the meeting. .0er, manager said the, were quite /leased so far with the /lanning effort, and the, were 0er, an"ious to +egin the im/lementation /hase after 51 wee(s of /lanning and anal,sis. :igure 6<.= Product 3emand Analysis :igure 6<.5 3esigned "akt "ime

%"t"re State 1esign
69? $, the time -rida,, Fcto+er 11, rolled around, the /roDect team had their transition strateg, identified, the, had their im/lementation /lan documented,
and the, had a /lant8wide communication /resentation all /re/ared :igure 6<.> )ork &ontent Matrix :igure 6<.? *olume Matrix :igure 6<.6@ Implementation Met$odology
35= 12: 12: 51= >3 >3 1;1 ;22 31.4S 35= 5>= 5== ==> :4.1S 1>4 5>= 5>= =9: :3.2S 59> 514 >3 3=9 42.=S ;9 514 =1 1>5 35.1S 193 5== 5== 9>4 =4.;S 59> 524 524 3=9 42.=S 53;2 ;:3 >4; 3151
6;@
for e"ecuti0e management a//ro0al. The meeting with management lasted a+out three hours, including lunch, and at the conclusion of the questionand8 answer session, $rian as(ed that the team +e dismissed for an hour while the !egal e"ecuti0e management team contem/lated the /ro/osal. )hile the team was waiting in the war room, Heather as(ed, H)h, do ,ou su//ose the, as(ed us to lea0eOI HI donMt (now,I said Ste0e. HMa,+e the, wanted to tal( a+out us +ehind our +ac(s,I said arl, Do(ingl,. HI thin( the, Dust want to ma(e us sweat,I said !ichard. HI imagine the, Dust wanted to feel comforta+le as a grou/ that this is the right direction and the, want to +e a+le to ha0e some free de+ate among themsel0es, unencum+ered +, s/ectators,I said !o+ert. After a+out 49 minutes, the, were in0ited to return to the conference room. $rian welcomed them +ac( and congratulated them on a well8de0elo/ed and thought8through lean manufacturing /ro/osal for !egal. His ne"t comment was, HSo, when can ,ou startOI 6;6
64
3eployment
, the time >@22 a.m. )ednesda, morning, Fcto+er 1:, arri0ed, the team mem+ers had alread, +een assem+led and were +usil, ma(ing final arrangements for $rianMs /resentation to the entire em/lo,ee
/o/ulation of !egal, Inc. It was designed to +e a one8hour /resentation with a half hour for questions and answers. The team was e"tremel, e"cited and at the same time ner0ous a+out how the lean manufacturing message would +e recei0ed +, the rest of the em/lo,ees. Heather was most concerned a+out how the em/lo,ees who would +e most affected +, the /rocess changes would feel a+out the /rogram. She (new that no one would lose his or her Do+ as a result of the lean manufacturing /rogram. The, ma, +e doing different Do+s or conducting wor( in a different manner than the, were used to doing, +ut the, would not lose Do+s as a result of the continuous im/ro0ement efforts. She (new the, had alread, identified a list of e"isting im/ro0ement initiati0es, which were not getting done due to a lac( of resources. She (new a KaiGen /ool was +eing esta+lished for /ersonnel who were released from current /roduction areas so that the, could +e utiliGed on future KaiGen e0ents. She realiGed that !egal sorel, needed /roduction engineers and technicians to wor( on the sho/ floor and with the su//lier +ase to address lean im/ro0ement o//ortunities. .0en though she (new a+out all the outlets that had +een /ut in /lace, she was still concerned as to how the /eo/le would handle the news. She went u/ to arl, lightl, touched his forearm, and as(ed, H arl, how do ,ou thin( the /eo/le are going to recei0e the /resentationOI arl turned to Heather and re/lied, HI wouldnMt +e too concerned a+out it. )e ha0e set u/ se0eral new o//ortunities if their current /ositions are +eing eliminated, and we ha0e assem+led a 0er, com/elling stor, as to wh, the +usiness needs to change. )e ha0e shown where the, can fit into the new
B
6;9
o/eration. )e ha0e demonstrated that when /eo/le are wor(ing on non0alue8 added acti0ities the, are wasting 0alua+le resource time and energ,. )e ha0e made it clear that it is the /rocesses the, are doing that are non0alue8 added, and not the indi0idual /eo/le themsel0es who are non80alueadded. Unfortunatel,, I +elie0e what !o+ert told us is true, that 52S of the em/lo,ees will em+race the change, >2S will go with the flow, and 52S will fight it all the wa,. I also thin( we need to address those fighters as earl, in the /rocess as /ossi+le so the, do not ruin it for the +alance of the organiGation. )e will need to let them (now that we are going in this new direction, and if the, donMt want to change, we donMt thin( the, are going to +e ha//, wor(ing here in the future. )e need to inform them that we will +e glad to hel/ them find a new /osition some/lace else. Ho/efull, at $lue IronUI Heather ga0e arl a wide8e,ed loo(. He Dust ga0e her a win( and wal(ed +ac( to the war room. $, 52@22 a.m., the stage was set, the /odium equi//ed, the slides loaded, and the crowd gathered for a town hall meeting. The management staff and /roDect team wal(ed in and sat in the front of the room to answer questions from the audience. $rianMs /resentation was direct, 0er, com/elling, and sincerel, honest a+out the current situation and future direction for the com/an,. He tal(ed a+out the /erformance ga/ +etween !egal toda, and the +enchmar( of world8class manufacturers. He descri+ed the o//ortunities for im/ro0ement that were identified +, the /roDect team. He e"/lained the im/lementation a//roach and the timing as to which areas were to +e addressed first, second, and third. He showed where !egal stood in the e,es
of its customers relati0e to com/etiti0e criteria and +, com/arison to the com/etition. He reiterated that no Do+s would +e lost due to the im/ro0ement /rogram, +ut did e"/lain that man, would lose their Do+s if there was a reduction in demand for !egalMs current and future /roduct +ase. $rian showed the list of unresourced im/ro0ement initiati0es that were a0aila+le for those who were released from their current acti0ities within the o/eration. He ended the /resentation with a than( ,ou to the /roDect team for their efforts o0er the /re0ious three months and as(ed for the full su//ort of e0er, em/lo,ee at !egal during im/lementation. Although, most of the audience was quiet at first and did not 0olunteer an, questions, the, did not a//ear to +e in shoc(, either. This was /rimaril, due to the fact that the team had (e/t man, of the (e,, informal leaders on the com/an, gra/e0ine informed as to what was ha//ening. The team had also (e/t se0eral influential /eo/le in0ol0ed during the anal,sis, /lanning, and design /hases in order to 0alidate data and gain concurrence on direction. The questions, which e0entuall, came, were relati0el, tame and focused /rimaril,
1e)loy!ent
6;; on understanding how indi0idual in/ut would +e incor/orated into their wor( areas. $rianMs res/onse was that as each area was scheduled to come on line, indi0idual in/uts would +e addressed during that /hase of the im/lementation. )hen the /roDect team adDourned to the war room, the, were an"ious to +egin this final /hase of the /roDect. The, were e"cited to +egin seeing acti0it, relati0e to all their /lanning efforts. $, the time !o+ert made it +ac( to the war room, he was /um/ed. HF(a,,I he said. HIt is time for us to mo+iliGe oursel0es and (ic( off our /ilot cell im/lementation. Here is how I +elie0e we should /roceed. -irst of all, I want to +ring in the selected cell leader and his team of o/erators after lunch and I want e0er,one to introduce themsel0es to the cell team mem+ers. Second, I want to congratulate them on +eing selected for the /ilot and let them (now that it is a good thing and not a +ad thing that the, ha0e +een selected. Third, I want to +rief the cell team on what anal,sis has +een done to this /oint in their area. -ourth, I want to inform them that the, ha0e +een scheduled for a KaiGen e0ent +eginning ne"t Monda,. And, finall,, I want to tal( through with them the KaiGen e0ent schedule and lean manufacturing /rinci/les format.I H*onMt ,ou thin( that that is a lot of information for them to digest in such a short /eriod of timeOI as(ed !ichard. HAfter all, the, onl, recei0ed their first introduction to lean manufacturing a cou/le of hours ago.I HI donMt thin( so,I said Paula. HI thin( these /eo/le ha0e +een an"ious to hear information from us for the last three months and the, would +e glad to hear as much as we can tell them.I HI agree with Paula,I Eose/h chimed in. HAfter all, we had to a+sor+ a lot of information in a short /eriod of time. I thin( it is time we share the fun with someone else.I The rest of the /roDect team nodded in agreement. The, felt the time had come to immerse the rest of this organiGation in the world of lean manufacturing. After lunch, the cell team entered the war room somewhat a//rehensi0el,. !o+ert +egan +, introducing himself and as(ing them to ta(e a seat at the ta+le. The /roDect team mem+ers introduced themsel0es, e"/lained their roles on the /roDect, and congratulated the cell team mem+ers for +eing selected as the /ilot cell. After setting the cell team at ease, Ste0e +egan the de+riefing +, e"/laining the lean assessment results. He then wal(ed them through the o0erall /lant material and information flow ma/. He then /roceeded to
descri+e the /roduction loss Pareto diagram and waste issues/element matri" for their area. He finished +, descri+ing the conce/t design for the /lant and showed where their /roduction area fit into the o0erall la,out. 6;<
arl then stood and once again e"/lained the im/lementation methodolog, to the team. He e"/lained how there would +e a 18month stage in which the +aseline and foundation of the cell would +e esta+lished. *uring this /eriod of time, the team would +e e"/ected to im/lement se0eral quantifia+le and qualifia+le as/ects of lean manufacturing within their cell. The, would +e gi0en time for the /rocess to sta+iliGe, a//ro"imatel, = wee(s. At the end of those = wee(s, the cell would +e audited. If it /assed the audit, a//ro0al would +e gi0en to ad0ance to stage two of im/lementation. The same criteria would still a//l, for +oth stage two and then stage three. As lessons were learned +, the cell team, the, would +e noted and used for insight during the de/lo,ment of su+sequent /roduction cells. H)hat are these stages ,ou are tal(ing a+outOI as(ed Ea(e, the teamMs cell leader. HI am glad ,ou as(ed that question Ea(e, +ecause I am a+out to show ,ou,I said arl, as he hit the +utton for the ne"t slide. HThe stage one /rinci/les are focused on designing a solid foundation for the cell. The, are utiliGed li(e /rerequisites +efore mo0ing onto those items in stage two. The, reall, set the stage, so to s/ea(.I ASee -igure 59.5.B HThe first thing we ha0e to do is esta+lish ta(t time,I stated !ichard. H.0er,thing starts with ta(t time, which is nothing more than the designed dail, /roduction rate determined for the cell. )e are a+le to determine this from our customerMs /roduct demand +eha0ior and the amount of 0ariation :igure 64.6 'ean Manufacturing Principles
1e)loy!ent
6;4 we ha0e in that /attern. -rom there, we need to esta+lish our standard wor(. )e accom/lish this through a series of ste/s@ A5B ca/ture the current /rocess flow, identif, 0alue8 and non80alued8added o/erations, and time each of the ste/s in the /rocessJ A1B eliminate or reduce the amount of non80alued ste/s or waste in the /rocess and lin( the 0alue8added /rocesses togetherJ A3B +alance the wor( load of each o/erator to the required ta(t timeJ and A4B document this as the standard method, sequence, and assignment of wor( for o/erators in the cell.I HFnce we ha0e an agreed u/on a standard wor( /rocess, we need to identif, the com/onent /art Kan+an requirements and the new rules, roles, and res/onsi+ilities for the cell team mem+ers,I e"/lained Heather. )e need to determine the /arts and quantities and how the, are going to +e re/lenished to the cell. In addition, we will document@ A5B the new o/erating rules for the cell so e0er,one (nows how it is designed to function, A1B the roles each /erson has as a team mem+er, and A3B the res/onsi+ilities each role is accounta+le to /erform.I HFnce we ha0e those /rinci/les, we can create the gra/hical wor( instructions for the cell +ased on the new standard wor(,I said arl. H)e can then decide what scheduling /attern we want to use to le0el /roduction through the cell. )e loo( at high8 and low80olume demand /atterns, setu/ times, and /rocess qualit, ,ields to determine the /roduction le0el. I $, this time, !o+ert was +eginning to grin from ear to ear. H)ith those /rinci/les in /lace, we can now demonstrate the one8/iece
flow methodolog, and intra8cell /ull conce/t,I said Ste0e. HFne8/iece flow means that we no longer +uild in quantities of da,s or wee(s at a time. )e +uild one /iece at a time and /ass it onto the ne"t o/eration without waiting for the rest of the order to com/lete.I H-inall, we esta+lish 0isual controls and 9S, or house(ee/ing, criteria for the cell area,I said Paula. HThe 0isual controls consist of /erformance measures on the sho/ floor, for the sho/ floor, created +, the sho/ floor, maintained +, the sho/ floor, and owned +, the sho/ floor. Fther 0isual controls include well8mar(ed incoming and outgoing areas, signs descri+ing the cell, and cell +oundaries /ainted on the floor. The 9S conce/t is a well8organiGed and structured wa, to loo( at house(ee/ing. .0er,thing has a /lace and e0er,thing is in its /lace. .0er,thing that +elongs is la+eled, and the area is cleaned on an e0er,da, +asis.I !o+ert was s/eechless. His /roDect team had /ic(ed u/ on all the main conce/ts from stage one, ta(en them to heart, and was now full, engaged in this new world of lean manufacturing. The, had come a long wa, in the last three months, and he was 0er, /roud of the transition the, had made. He 6;=
stood when Paula was finished and +egan to descri+e to the cell team the KaiGen e0ent schedule A-igure 59.1B. HThe KaiGen e0ent schedule ,ou now see +efore ,ou will +egin on Monda,. The wa, it is designed to wor( is as follows@ H*a, Fne@ In the morning, the cell team will recei0e 1 hours of training on cell design and standard wor(. This training will /re/are ,our team for the wor( ,ou will +egin on Monda,, which will +e focused on /lanning the wee(, assigning res/onsi+ilities, re0iewing the detail design anal,sis, and generating a /reliminar, la,out. At the end of the da,, the team will re0iew their status. H*a, Two@ The cell team will recei0e training on material /ull and one/iece flow. )e are tr,ing to /ro0ide the training as ,ou need it and can a//l, it. In addition, we are tr,ing to (ee/ it concise for ease of retention. Fn Tuesda,, the final la,out will +e designed, communicated to maintenance, and rearranged. Again, at the end of the da,, the team will re0iew their status. H*a, Three@ ell team training continues on Kan+an requirements and defining cell team rules, roles, and res/onsi+ilities. Fn )ednesda,, the cell team will +e doing man, acti0ities in /arallel. 'ou will +e demonstrating the material and o/erator flow for the new cell. 'ou will +e im/lementing the :igure 64.9 Aai!en E(ent
1e)loy!ent
6;5 one8/iece flow /rinci/le. 'ou will +e esta+lishing the Kan+an methodolog, and disci/line for the re/lenishment /rocess. 'ou will +e documenting the o/erating rules, identif,ing the different cell roles, and descri+ing the res/onsi+ilities for each of the new roles. In addition, ,ou will ha0e selected the cell Kan+an containers and +egun to /roduce /ilot /roduction. Again, at the end of the da,, the team will u/date their status. H*a, -our@ The cell team will recei0e training on le0el /roduction scheduling and wor( instructions. 'ou will fill the selected Kan+an containers, generate and descri+e how to maintain the gra/hic wor( instructions for the new /rocess, and determine the le0el /roduction scheduling /attern for their cell. Again, at the end of the da,, the team will re0iew their /rogress. H*a, -i0e@ The cell team will recei0e final training on 9S and 0isual
controls. The team will use the 9S conce/t for house(ee/ing within the new cell, define the criteria for good house(ee/ing, and esta+lish the manner of audit for house(ee/ing. In addition, ,ou will determine, design, de0elo/, and de/lo, three to fi0e critical /erformance measures for the cell. Two of the recommended measures would +e some t,/e of scheduled out/ut adherence and a measure related to /rocess qualit,. Again, at the end of the da,, the team will u/date their status. H$, the end of the wee(, the team should ha0e a functioning cell. It wonMt +e /erfect and it ma, not e0en +e e"actl, the wa, ,ou reall, want itJ therefore, the following wee( is a0aila+le to ma(e changes and adDustments to get it the wa, ,ou want it. $, the end of the second wee(, we should /rett, much ha0e what we want and it is time to let the cell sta+iliGe. There will +e agreedu/on /erformance targets for the cell and an e"it criteria esta+lished in order to /erform an audit. After a+out = wee(s, the cell should +e /erforming consistentl, and ha0e satisfied the e"it criteria. It is at this /oint that we will discuss mo0ing on into stage two. Are there an, questions at this timeOI as(ed !o+ert. The cell team mem+ers loo(ed on with raised e,e+rows. The, were not quite sure what to ma(e of all this information, let alone how all this was going to +e accom/lished in fi0e da,s. !ealiGing the grou/ was /ro+a+l, in shoc(, !o+ert assured them, HI (now this is a lot of material, +ut the /roDect team felt it was im/ortant to /ro0ide ,ou with a good o0er0iew +efore we Dust ste//ed into it ne"t wee(. $elie0e me, it will all ma(e more sense as we mo0e into ne"t wee(.I As the following wee( /rogressed, Dust as !o+ert said, it all started to ma(e sense. The /roDect team +egan each da, with a sni//et 0ersion of the training to/ic for the da,. The, trac(ed themsel0es against the /roDect /lan the, had de0elo/ed on Monda,. The /roDect team had sa0ed itself a lot of time +, 6;>
doing a thorough Do+ during the detail design /hase +, determining the demand /atterns, ta(t time, wor( content times, equi/ment loads, etc. All this /re8wor( made getting into the detail la,out discussions with the cell teams much easier. The fact that the maintenance resources were on stand+, to rearrange equi/ment at the end of the second da, and actuall, got all the equi/ment mo0ed +, the time the team arri0ed on )ednesda, morning +lew the cell team awa,. $, the end of the da, Thursda,, the, were actuall, /roducing at half rate and demonstrating the one8/iece flow conce/t. $, this time, se0eral other !egal em/lo,ees were +ecoming interested in what was ha//ening at this new cell area, and +, the end of the da, -rida,, when all the equi/ment had +een /ainted, floors had +een mar(ed and swe/t, and a communication +oard was 0isi+le, the, wanted to (now when someone was going to do their area. As the /roDect team assem+led in the war room at the end of the long wee(, $rian /o//ed his head in and told the team the, had done an outstanding Do+. He had to admit to them, HI wasnMt quite sure Dust how much ,ou reall, were going to accom/lish, +ut I must confess ,ou ha0e sur/assed m, wildest e"/ectations. ongratulationsU Eo+ well done.I Eust as $rain was lea0ing, !o+ert arri0ed to tell the team how /roud he was of all the, had accom/lished. H'ou, as a team, ha0e come together and learned a great deal from each other. 'ou ha0e acquired (nowledge a+out the current o/eration, ,ou ha0e a//lied what ,ou learned a+out lean manufacturing, and now ,ou are transferring that (nowledge to others in the organiGation. That is where true com/etiti0e ad0antage comes from. It doesnMt
come from +u,ing a new /iece of equi/ment. It doesnMt come from rearranging the furniture. It doesnMt come from /utting in a Kan+an s,stem. It doesnMt come from hiring an e"/ert in lean manufacturing. It comes from the strengthening of ,our organiGationMs a+ilit, to res/ond to customer needs through e0er,one within the o/eration. HIts a+out equi//ing e0er,one with the (nowledge of how to +e lean and a+out e0er,one wor(ing to im/ro0e the o/eration a little +it e0er, da,. 'ou all ha0e done e"tremel, well u/ to this /oint, +ut Dust to this /oint. Im/lementation is where the ru++er meets the road, and ,ou ha0e onl, Dust +egun. !emem+er, this is where we start to rea/ the +enefits for all our efforts. &ow, go home. 'ou deser0e this wee(end, +ut +e read, to hit it again on Monda,.I 6;?
6=
"$e Results
s the following wee(s and months /assed, the lean manufacturing /rogram +egan to s/read across the entire o/eration. In a matter of = months, the, were a+le to +ring eight cells u/ through stage one, and si" of those cells also qualified through stage two. &one of the cells attem/ted stage three. It was felt that stage three would +e addressed when all the fa+rication, assem+l,, and ser0ice cells were functioning at a stage one le0el. If the, (e/t to the original im/lementation schedule, all 59 cells would +e functioning at stage two within one ,ear of their initial de/lo,ment. &ot onl, were the cells satisf,ing the e"it criteria for qualitati0e as/ects through 0isi+le e0idence of SM.*, TPM, 9S, standard wor(, Kan+an, etc., +ut the, were also affecting the quantitati0e criteria through greatl, im/ro0ed o/erational /erformance. The, were a//roaching +etween 19 and 39 turns on wor( in /rocessJ on8time deli0er, out/ut was consistentl, at ;>S e0er, da,J and the, achie0ed /redicta+le manufacturing lead8times for /roducts that were measured in hours not wee(s. The in8/rocess qualit, ,ields were relia+l, at the ;;S le0el, and la+or /roducti0it, had increased a+out 59S across the +oard without changing an, of the current manufacturing /rocesses. These changes in /erformance had generated tremendous enthusiasm among the em/lo,ees. .0er,one could now 0isi+l, see the status of their areas. The, (new if the, were on /lan for the da, or if /erformance was sli//ing. The, were a+le to identif, /ro+lems on the communication +oard as the, were ha//ening and ma(e issues 0isi+le. The teams were re0iewing their o/erational /ro+lems with management on a dail, +asis for timel, correcti0e action. It was the culmination of all these indi0idual /rinci/les that allowed !egal, Inc., to +egin addressing their identified com/etiti0e criteria and to align with what their customers 0alued. The, +egan to e"/loit their com/etiti0e
A
6<@
wea/ons in the mar(et/lace and challenge the com/etition, which in turn
was +eing reflected +, some changes in their +ottom line and the securing of additional wor( that was not /lanned for the ,ear. urrent quarter sales were shar/l, u/ o0er /lan, /rimaril, due to the securing of a new order for high8/erformance /istons from #iscon om/an,. !egal went head to head with $lue Iron and won a 18,ear contract +ased on their res/onsi0e leadtime and relia+le qualit, /erformance. These successes would ha0e +een short li0ed and unsustaina+le if the /roDect team had not realiGed how im/ortant it was to institutionaliGe the new wa,s of wor(ing, there+, ma(ing it e"tremel, difficult for the organiGation to sli/ +ac( into the old wa, of doing +usiness. The, (new that +, standardiGing the wor( and ma(ing the o/erating /rocesses e"actl, the same, the, would remo0e a source of 0ariation from the /rocess and enhance out/ut qualit,. Then, no matter who did the Do+, +, measuring the /rocess /erformance to a standard for time and out/ut it was 0er, eas, to recogniGe a+normalities as the, occurred. This allowed for greater control on the /rocess out/ut and timel, feed+ac( for correcti0e action. -inall,, the, were astute enough to recogniGe that rewards for the multi/le s(ills attained +, indi0iduals to su//ort the fle"i+le wor( en0ironment were crucial, as were rewards for consistentl, achie0ing and +eating /erformance targets. The, offered increased /a, for increased s(ill and rewarded cell teams with /erformance +onuses on a monthl, +asis if the, consistentl, achie0ed target and/or im/ro0ed the /rocess. Instituting these changes allowed !egal to +ecome a world8class manufacturing entit, o0er the ne"t cou/le of ,ears. The, had the tenacit, to sta, the course and ride out the short8term /ains for long8term gains. Fnce the, had their sho/ floor under control, !egal had a wor(ing model for su//liers to 0iew so the, could +egin to de/lo, similar methodologies within their own factories. Man, of !egalMs (e, customer accounts were a+le to see a significant change within the o/eration and got a glim/se of where the com/an, was going. This /ee( into the future im/ressed these (e, accounts and hel/ed secure additional new /roduct orders in the future. -or !egal Inc.@ ? onsistent lea&ershi) /ro0ided the direction and resources needed. ? 8nvolve!ent of the entire !egal organiGation allowed them to succeed. ? A lean roa& !a) hel/ed them sta, the course through roc(, terrain. ? A /assionate &esire o0ercame all o+stacles along the wa,. 'ou, too, can +e successful on ,our /ath to +ecoming world class, Dust li(e !egal. It is all Dust a matter of following the right ste/s.
I*
&ASE S"-3IES : 'EA0 MA0-:A&"-RI0G PR GRAMS A03 PR KE&"S

Part I# shows how si" different com/anies de/lo,ed lean manufacturing within their facilities Athe names and /laces ha0e +een changed to /rotect com/etiti0e confidentialit,B. .ach case addresses a different le0el or as/ect of a lean im/lementation, +ut the, all follow the same outline in regard to com/an, +ac(ground, dri0ers for change, the a//roach utiliGed, +enefits achie0ed, and lessons learned. In addition, there are testimonials at the end of each case that /ro0ide the reader with some insight into the /erce/tions of em/lo,ees e"/eriencing this changeo0er to a lean en0ironment. 6<;
6=
&ase Study A: perations Redesign Program
&ompany Profile
ocated in an industrial /ar( within the cit, of EuareG, Me"ico, resides a manufacturer of uninterru/ted /ower su//lies AUPSB for com/uters. This manufacturer was /art of the !a-"iia&ora s,stem utiliGed +, man, multinational com/anies as a source of low8cost la+or for /roducts. This /articular facilit, was one of man, sites owned and o/erated +, a com/an, called Unit, .lectronics. This /rimar, manufacturing location was contained within a ;2,2228square8foot facilit,, with a total em/lo,ee /o/ulation of a+out >92. Their (e, manufacturing /rocesses included the automated and manual insertion of /rinted circuit +oards AP $sB and wa0e solder o/erations, as well as manual and automated assem+l,. Unit, .lectronics mar(eted, designed, manufactured, and deli0ered UPS s,stems to the com/uter and communications industr, worldwide. The Unit, .lectronics o/eration was di0ided into se0eral different di0isions. The di0ision that owned this /articular manufacturing site was Sil0er S,stems 7rou/ ASS7B. SS7 generated a//ro"imatel, \192 million in re0enues during 5;;> +, focusing on three maDor /roduct segments C stand+,, line interacti0e,
and online units. The EuareG, Me"ico, o/eration was accounta+le for /roducing a//ro"imatel, one half of SS7Ms re0enue. The o0erall o/eration was di0ided among three facilities located in EuareG, Me"icoJ Horton Mesa, T<J and .l Paso, T<.
'
6<<
The original facilit, was +uilt when the initial com/an,, -aucet, was in the low80olume UPS +usiness. F0er time, the need arose to e"/and into an adDacent +uilding to su//ort a growing demand for higher and higher /roduction 0olumes. The resulting im/act was an ineffecti0e factor, flow and insufficient doc( s/ace to handle high80olume UPS /roduction. a/acit, constraints on equi/ment limited the a+ilit, to satisf, customer deli0er, requirements and /ro0ide on8time shi/ments. The factor, had to o/erate 14 hours a da,, = to : da,s a wee(, to meet customer requirements which did not allow an, time for reco0er, or ma(eu/ /lans should there +e line sto//ages. Ke, customers were also requiring additional ca/acit, and fle"i+ilit,, which could not +e met. To remo0e some of the constraints, P $ assem+lies were outsourced and /lans were made to transfer /roduction to other, higher cost facilities within the grou/. Automated insertion AAIB equi/ment was running around the cloc( to (ee/ u/ with /roduction, which allowed for onl, minimum scheduled maintenance. Aside from the factor,, there was a 32,2228square8foot warehouse facilit, in Horton Mesa, T<, which handled all in+ound and out+ound material shi/ments. In addition, there was a /eri/heral 53,2228square8foot material staging warehouse in EuareG to handle the o0erflow of materials due to the ineffecti0e flow through the /lant.
3ri(ers for &$ange

The o/erational /erformance of this manufacturing site had not +een satisfactor, for se0eral end8item customers o0er a 38 to ;8month /eriod of time. In &o0em+er 5;;:, Unit, .lectronics was /urchased from -aucet and internal management consultants from the new /arent com/an, were sent to 0isit the site to conduct an o/erations diagnostic on the .l Paso, Horton, and EuareG facilities. The result of this diagnostic indicated se0eral issues@ 5. Unit, des/eratel, needed to get control of its demand management /rocess. 1. The com/an, had a serious deli0er, /erformance /ro+lem A39S ontime to customer requested shi/ dateB. 3. In0entor, turns were around 1.>. 4. Su//lier management and de0elo/ment were reall, none"istent. 9. The limited ownershi/ for /roduct /erformance was scattered throughout the organiGation.
Case St"&y A+ 2)erations Re&esign Progra!
6<4 =. The /lanning and control of material and information flow were handled through two different M!P s,stems. In addition, se0eral informal +usiness rules were used to manage wor( /rioritiGation on the sho/ floor. :. A limited num+er of sho/floor metrics focused onl, on qualit,. >. Man, informal fi"es were /ut in /lace without institutionaliGing the im/ro0ements. In addition, Interma", a /rimar, F.M worth a//ro"imatel, 92S of Unit,Ms
+usiness, had recentl, come in and rated the qualit, s,stem of Unit, .lectronics as 0er, /oor C Hone of our worst su//liers.I )ith these identified dri0ers for change, it is not difficult to see what moti0ated Unit, .lectronics to /ursue a new wa, of doing +usiness.
ProBect Background
$ased on the a+o0e findings, an initial im/ro0ement effort was launched in *ecem+er 5;;> and focused on su//l,8chain management. $, -e+ruar, 5;;;, it +ecame increasingl, o+0ious that significant s,nergies could +e gained for the +usiness if se0eral ongoing initiati0es could +e com+ined under one /rogram. $, A/ril 5;;;, an Ho/erations redesignI /rogram Afocusing on lean manufacturing /rinci/lesB was launched which com+ined a su//l,8chain management /roDect, a strategic /rocurement /roDect, and a /lant e"/ansion /roDect into one o0erall /rogram. The Unit, .lectronics Unit, F/erations !edesign AUF!B /rogram was officiall, (ic(ed off +, selecting a multi8disci/lined team to focus on redesigning the 0alue stream for the entire o/erations /rocess. This team focused on two main tas(s@ A5B de0elo/ing an o0erall conce/tual design for the new o/eration, and A1B generating a /roDect im/lementation /lan that significantl, im/ro0ed the com/an,Ms a+ilit, to satisf, all e"ternal customer and internal +usiness e"/ectations. Throughout the /roDect, the /roDect team recei0ed significant training in +oth change management methodologies and lean manufacturing techniques for o/erations management. In addition to concentrating on the longer term /ers/ecti0e, short8term actions Aor quic( hitsB were identified, and im/ro0ements were incor/orated as quic(l, as /ossi+le during the conce/t design /hase. 6<=
ProBect Scope and
1Becti(e
Unit, .lectronicsM UF! /rogram addressed the entire o/erations /rocess from customer forecast and demand management through factor, floor management and scheduling to su//lier management and the distri+ution of finished goods. It included their glo+al strategic /rocurement initiati0e and too( ad0antage of the o//ortunit, to set u/ a HgreenfieldI o/eration within a +rand8new facilit, +ased on a +usiness unit a//roach. The /rimar, /erformance o+Decti0es were intended to affect@ ? C"sto!er re-"este& shi) &ate <CRS1=, the com/an,Ms /erformance measured against the date first requested +, the customer when an order is /laced. This is a measure of the entire /rocess of forecasting, finished goods/ser0ice le0el strateg,, and engineering and factor, /erformance. ? C"sto!er )ro!ise &ate &eviation, the com/an,Ms /erformance measured against the first /romise gi0en to a customer when an order is /laced. The /romise date ma, not equal the !S*. ? Man"*act"ring &elivery, a measure of the a+ilit, of the factor, to +uild and shi/ /roduct on its scheduled date. ? Man"*act"ring lea&6ti!e, the length of time from /rocurement of raw materials to com/letion of finished goodsJ also, the minimum length
of time from customer order to deli0er, of requested /roduct. ? S"))lier )er*or!ance, a measure of a su//lierMs a+ilit, to satisf, deli0er,, qualit,, ser0ice, and cost e"/ectations. ? 8nventory levels an& t"rns <raw !aterials, work in )rocess, an& *inishe& goo&s=, the annual cost of sales A/ast 3 months annualiGedB di0ided +, month8end in0entor, le0els.
ProBect Approac$
As was stated earlier, the o0erall a//roach to the UF! /rogram actuall, e0ol0ed o0er time. The /roDect initiall, +egan with a focus on the Unit, .lectronics su//l, chain, from the customer to manufacturing /lanning and control on the sho/ floor to the deli0er, of finished goods to the customer through warehouse distri+ution. After a few months of wor(ing on the /roDect, it was determined that a greater amount of le0erage and su+sequent +enefit could +e achie0ed through the s,nerg, of se0eral /roDects, so the entire
6<5 /roDect was +roadened to co0er all of o/erations and /laced under one /rogram management structure. This new sco/e co0ered e0er,thing from order administration and su//lier interface to manufacturing management and customer interface. The o0erall /rogram was s/lit into se0eral indi0idual /roDects, which were all interconnected 0ia a common /ur/ose through s/ecificall, identified o+Decti0es. The /roDects were segregated +, maDor +usiness /rocess to /ro0ide focus for the indi0idual teams and their assigned o+Decti0es. .ach /roDect had an identified leader with assigned team mem+ers. The /roDects were time /hased so that the team mem+ers who were assigned to initial /roDects could +e reassigned to later /roDects. $, assigning resources in this manner, Unit, was a+le to achie0e cross8functional (nowledge transfer through e"/osure across /roDect teams. The indi0idual /roDects included@ 5. Process layo"t+ As/ects dealing with the /h,sical flow, cell design, and final la,out for each of the cells A51B and +usiness units A4B. 1. Material )lanning an& control+ -ocus on the design and de0elo/ment of the logistics /rocess for /lanning and controlling the flow of material through the factor, and warehouse s,stem to the customer through Kan+an /ull. 3. 2rgani3ation &esign+ FrganiGation redesign and training /rograms that included the cell team, cell leaders, +usiness unit managers, and su//ort o/erations through a structured /rocess of assessment and selection. 4. %acilities Athe new /lantB@ onstruction of a +rand8new manufacturing facilit,.
9. Tactical )roc"re!ent+ *e/lo,ment of shared .*I with su//liers through .*I/e8commerce, and reduction of the current su//l, +ase +, 42S. =. Total ac-"isition cost+ 7eneration of a glo+al su//l, strateg, and su//lier de0elo/ment and selection /rocess. .ach /roDect had its own su+set of o+Decti0es and assigned deli0era+les, and each team had to re/ort /rogress to /lan for their /roDect e0er, wee(. Integration +etween the /roDect team leaders in regard to what the, were designing for the new /rocesses was essentialJ therefore, communication +etween teams was a constant acti0it,. 6<>
.0en though each /roDect was managed inde/endentl,, the, all had to follow the same methodolog, for design, de0elo/ment, and im/lementation. This methodolog, had se0en distinctl, inde/endent ste/s@ 5. Baseline would esta+lish a +aseline of current /erformance for the e"isting /rocesses. This was accom/lished +, ma//ing each of the critical o/erational /rocesses and gathering (e, /erformance data on each of those /rocesses. 1. 1esire& state would esta+lish the desired state for the +usiness. The team did this +, re0iewing the o/erations diagnostic that was conducted in *ecem+er of 5;;:. The, also /erformed a self8assessment on (e, +usiness /rocesses to determine where Unit, .lectronics was /erforming com/ared to what was considered +est /ractice. The, made site 0isits to other com/anies who were noted for o/erating with lean /ractices. The e"/ected outcome of this ste/ was for the /roDect team to recogniGe what was /ossi+le and to learn from the techniques of others. 3. Ga) analysis would recogniGe the ga/ +etween where the, were and where the, wanted to +e. An anal,sis was /erformed to understand the ga/ and identif, actions to close it. 4. Conce)t &esign would /ro0ide a high8le0el conce/t 0iew of the desired state for Unit, .lectronics, or a future state 0ision for what the /roDect team collecti0el, agreed the, wanted success to loo( li(e. It included deli0era+les such as +loc( la,outs, determining the num+er of cells, what /roducts are made in the cells, num+er of +usiness units, etc. 9. 1etaile& &esign would /ro0ide a detailed 0iew of the future state. It descri+ed all those elements that ma(e the future state a realit, and
included deli0era+les such as cell equi/ment requirements, equi/ment loads, Kan+an siGes, staffing needs, o/erating rules, material /lanning and control /rocess at the cell le0el, cell team mem+er roles and res/onsi+ilities, etc. =. 8!)le!entation )lan would de0elo/ an im/lementation /lan and include the time frame, identified deli0era+les, assigned ownershi/, transition strateg,, and sequence of e0ents to ma(e the future state a realit,. :. 0ec"tion actuall, would de/lo, the im/lementation /lan.
6<? As each indi0idual /roDectMs team anal,Ged and designed their im/ro0ements, the, were required to recei0e a//ro0al at each ste/ +efore mo0ing on to su+sequent ste/s. This ensured control of the /rogram. It (e/t the steering committee engaged in the /roDect and made sure that the, +ought into the design solutions +efore going too far with an una//ro0ed design. It also enhanced integration +etween the /roDects +ecause the steering committee was made u/ of cross8functional managers co0ering all as/ects of the +usiness. Therefore, the, were the o+Decti0e third8/art, 0iew that loo(ed at the solutions from an outside /ers/ecti0e. )hen it came time for im/lementation, the /rocess owners Athose who had to li0e with the new /rocess after the /roDect was o0erB were in the dri0erMs seat for de/lo,ment. The design team was to still remain assigned to the /roDect until the /rocess owner agreed the new /rocess wor(ed and was doing what it was designed to do. The one o0erriding strateg, was to /ro0e out the mechanics of the new /rocess in the old facilit,. )hen the new o/erational /rocess for the first +usiness unit was sta+le, then it would relocate to the new facilit,, there+, minimiGing ris( and a0oiding a dou+le mo0e of equi/ment. ."ecution of the im/lementation /lan had a few (e, as/ects worth noting@ 5. The res/onsi+ilit, for e"ecution was handed o0er to the indi0iduals who had ownershi/ for the new /rocess after im/lementation, there+, requiring +u,8in to the new design +efore de/lo,ment. This reduced the +urden of ha0ing to HsellI the new design to those on the sho/ floor. 1. A /ilot cell a//roach was used, +, which the im/lementation initiall, concentrated on one manufacturing cell, gathered all the lessons learned from that cell, and then carried those onto the ne"t manufacturing cell. This minimiGed ris( to the /roDect and allowed the /roDect teams to collecti0el, concentrate their energies on one /ilot cell during the learning stages of im/lementation. 3. $usiness units were de/lo,ed one +, one in accordance with the manufacturing cells the, su//orted. This allowed@ A5B the organiGation changes to ta(e /lace +ased around a s/ecific /roduct famil,, and A1B ownershi/ for all the o/erational /rocesses that affected that famil, to +e quic(l, ado/ted. This in turn accelerated the arri0al of +enefits at the +ottom line for that gi0en /roduct famil,. 64@
ProBect "ime 'ine
"ec$ni%ues -tili!ed
1ate Milestone
*ecem+er 5;;: Su//l, chain /roDect launched -e+ruar, 5;;> UF! /rogram detail s/ecification March 5;;> UF! /roDect team mo+iliGed Eune 5;;> Material /lanning/control design a//ro0ed Eul, 5;;> Pilot cell detail design a//ro0ed August 5;;> urrent +aseline /rocess com/leted Se/tem+er 5;;> Pilot +usiness unit design a//ro0ed Fcto+er 5;;> 7lo+al su//l, chain strateg, a//ro0ed &o0em+er 5;;> -irst cell goes li0e *ecem+er 5;;> -irst cell e"it criteria satisfied Eanuar, 5;;; -irst +usiness unit goes li0e A/ril 5;;; &ew /lant comes on line
$orksho) Training To)ics A&&resse&
Program and /roDect management harter, milestone /lan, haGards, issue log, /rotocol, /roDect organiGation, /roDect file, ris( assessment, detail schedule, deli0era+les, control mechanisms hange management ommunication /lanning, reaction to change, resistors Lean manufacturing A-i0e Primar, .lementsB Fne8/iece flow, standard wor(, wor(a+le wor(, /ercent loading chart, forward /lan, crosstraining, runner, re/eater, stranger, ta(t time, Kan+an, A$ material management, 9S house(ee/ing, /ull scheduling, 0isual control, roles and res/onsi+ilities, o/erating rules, sho/floor metrics, ser0ice cell agreements, mi"8model manufacturing, P/P anal,sis, /roDect8focused management, continuous im/ro0ement, routing anal,sis $usiness /rocess redesign $aseline /erformance, ga/ anal,sis, future state, conce/t design, detail design, im/lementation /lanning, transition strateg, Process 0alue anal,sis Su//lier8in/ut8/rocess8out/ut8customer ma//ing ASIPF B
646
Benefits Ac$ie(ed 'essons 'earned

? Adhere to and constantl, monitor meeting times and /roDect deli0era+les. If a deli0era+le is going to +e missed, immediatel, address the issue and de0elo/ a reco0er, game /lan. In this /articular case, it should +e noted that the Me"ican culture was not attuned to e"act time frames and s/ecific scheduled commitments. ? *o not assume a grou/ understands terms +eing usedJ rather, 0erif, that the, do understand the terms +eing used. A ommunicationU ommunicationU ommunicationUB Se0eral terms such as tea! and
5anban were new to this culture. ? *ri0e to detail as earl, as /ossi+le in the /roDect to assure (nowledge transfer. If the /roDect team can de0elo/ the detail schedule, with the a//ro/riate deli0era+les, in the correct sequence, the, are demonstrating understanding. This /re8/lanning is critical when it comes time to in0ol0e other resources outside the /roDect team Ae.g., /rocess owners, s/ecialistsB for scheduling meetings, 0erif,ing information, and discussing design o/tions.
3eli(ery Performance E&RS3F EF?B <Pre6.2R= <G= As o* CF?? <G= Target <G=
!unner /roducts 4> ;> ;; !e/eater /roducts 4= ;: ;: Stranger /roducts 45 ;2 ;2 Manufacturing 'ead2"ime
EF?B <Pre6.2R= <ho"rs= As o* CF?? <ho"rs= Target <ho"rs=
!unner /roducts 15 5= 55 !e/eater /roducts 32 12 59 Stranger /roducts 92 13 19

EF?B <Pre6.2R= <G= As o* CF?? <G= Target <G=
Producti(ity =: :: >4
EF?B <Pre6.2R= <&ays= As o* CF?? <&ays= Target <&ays=
In(entory 5>2 52= =2
649
? UtiliGe /roDect leader integration meetings to ensure that cross8functional team issues are +eing addressed and communicated. *e/ending on the /roDect, this should ta(e /lace at a minimum of once /er wee(. This as/ect is critical when multi/le initiati0es are +eing underta(en simultaneousl,. ? *e0elo/ and roll out the communication /lan earl, in the /rocess to a0oid e"cessi0e rumors and s/eculation. .m/lo,ees need to +e informed that a new /roDect is underwa,, wh, it is +eing done, and how the, are +eing affected. ?
!ecogniGe indi0idual ca/a+ilities and limitations when assigning /roDect roles. *o not o0erestimate the a+ilities of indi0iduals +ased on their enthusiasm for the /roDect. #erif, that the, ha0e +een allocated the time for their acti0ities and ha0e the e"/ertise to do the Do+. ? Ma(e sure /roDect /rotocols and /roDect files are utiliGed religiousl, throughout the /roDect life c,cle. The /roDect file is the H+i+leI for the /roDect. It contains the /roDect status, issues, game /lan, and e0idence of /rogress. At the end of the /roDect, it /ro0ides a guideline for the ne"t team that has to im/lement a similar initiati0e. ? *ocument /roDect roles and res/onsi+ilities earl, in the /roDect. Ma(e it 0er, clear who has ownershi/ for what at the 0er, +eginning of the /roDect. Lea0e no gra, areas or e"tensi0e o0erla/ of accounta+ilities. This will sa0e a lot of headaches later in the /roDect. ? UtiliGe H$el+inI /rofiles for insight whene0er /ossi+le. Meredith $el+inMs team role /rofiles /ro0ide 0alua+le insight a+out the ma(eu/ of a team and the /ro+a+ilit, of success. Ta(e ad0antage of this insight whene0er /ossi+le. ? !equire full8time team mem+ers during the design and anal,sis /hase. Part8time teams will onl, +e a+le to gi0e /art8time results. )hen a /roDect team has onl, 12S of its team mem+ersM time, it is 0er, difficult to maintain team continuit, and focus o0er the life of the /roDect. ? .nlist /rocess owner +u,8in to the new redesigned /rocesses. Process owners should +e gi0en res/onsi+ilit,, accounta+ilit,, and authorit, A!AAB for im/lementation whene0er /ossi+le. The, will own the /rocess after the /roDect is com/lete and therefore must agree with the new design. The, must acce/t ownershi/ for the designJ therefore, the, should +e intimate with its de/lo,ment. ? oordinate rollout of the /roDect with to/ management a//ro0al. To/ management has ultimate res/onsi+ilit, for what ha//ens at the /lant and therefore should a//ro0e maDor changes to the +usiness /rocess that are under their control.
64; ? Train all em/lo,ees who will +e in0ol0ed in the /roDect, not Dust the design team. Process owners need to (now how the /roDect is +eing managed, where the, fit in, and the o0erall direction and /hiloso/h, relati0e to lean management.
"estimonials
H-rom the first diagnostic to the end of the /roDect, it was the stead, /ressure, honest,, and /rofessionalism of all the teams that deli0ered success. The constant feed+ac( reall, hel/ed (ee/ us on the right /ath.I A'ice Presi&ent, 2)erations H$, reorganiGing the entire Me"ico F/erations organiGation into cell manufacturing +ased +usiness units, we e"/ect to see the following measura+le results@
H5. Producti0it, im/ro0ements@ reduced direct head8count requirements, e"tensi0e training /rograms and IP /rograms. H1. Increased manufacturing fle"i+ilit,, the nature of cell manufacturingJ we will also +e hea0il, cross8trained at the cell and su//ort team mem+er le0els. H3. Management +, o+Decti0e@ 0irtuall, e0er, de/artment in the facilit, has +een tas(ed to de0elo/ /erformance metrics +, which to assess their /erformance, including the +usiness units. H4. !eduction in the cost of qualit,@ we ha0e im/lemented /rogressi0e ins/ection through/ut the /lant, reducing the num+er of ins/ectors. H9. Im/ro0ed health and safet,@ the focus on cell ownershi/ along with 9S training will im/ro0e the sho/ organiGation as well as /lant cleanliness. H=. To mo0e from +eing one of Interma"Ms lowest rated su//liers to one of the +est in less than one ,ear.I A1irector Plant 2)erations HTa(ing a significant ste/ forward in the /rogram//roDect management /rocess accom/lished a num+er of /ositi0e initiati0es@ H5. larified the roles and res/onsi+ilities of the management, teams, and /artici/ants. 64<
H1. Set forth a standard set of o/erating rules for all the teams to follow. H3. Pro0ided a message to all of management that the standard /rocesses will +e em+raced. H4. Pro0ided a team structure that affords accounta+ilit, for its mem+ers and leadershi/.I AProgra! Manager HUnit, made significant im/ro0ements in their o0erall qualit, and manufacturing /rocess. TThe score of := on this new sur0e,, as com/ared to sur0e, scores of =9 in A/ril 5;;> and 93 in *ecem+er 5;;:, T is one of the +est scores in the shortest /eriod of time among Interma" su//liers.I A8nter!a0 9"ality Syste! A"&itor 644
6=
&ase Study B: Aai!en E(ent2Based 'ean Program
&ompany Profile
he headquarters for )interton or/oration, a \5.9 +illion a ,ear /roducer of industrial /roducts, are located a+out 52 miles west of the le0eland downtown cit, limits. )interton was /rimaril, segregated into three o/erating di0isions, a centraliGed sales/distri+ution o/eration, and an inde/endent research and de0elo/ment facilit,. The cor/oration managed
3> indi0idual manufacturing facilities A1: in the U.S. and 55 internationall,B. The, em/lo,ed a//ro"imatel, 55,:22 /eo/le and utiliGed se0eral inde/endent distri+utors to su//l, their 0arious /roduct lines to the mar(et/lace. These lines included /roducts such as +all+earings, industrial a//lication chain, cou/lings, electrical/mechanical com/onents, seals, con0e,or trac(, gears, motors, and hoists. The )interton +rand name goes +ac( o0er 522 ,ears. The, ha0e the re/utation of /ro0iding a qualit, /roduct that lasts. The, had +een a+le to +uild a strong mar(et /resence in &orth America o0er the ,ears through@ A5B good +rand8name equit,, and A1B acquisition of other +usinesses. These two elements allowed them to grow into a siGa+le organiGationJ howe0er, as time /assed, the mar(et/lace changed and foreign com/etition +egan to erode a significant share of their mar(et. Since )interton or/., as a whole, had +een o/erating in a 0er, mature industr,, their introduction of new /roducts to su//ort organic growth had +een limited o0er the ,ears. The, su//orted their
"
64=
/rimar, customer +ase through a finished8goods distri+ution warehouse s,stem which was good from a res/onsi0eness stand/oint when /roduct was on the shelf, +ut it required a significant in0estment in in0entor, to maintain.
3ri(ers for &$ange

)interton or/. was not the dominant com/etitor in man, of the mar(ets it ser0ed. Although some of the indi0idual sites were /erforming quite well from a financial /ers/ecti0e Acash flow, /rofit margins, return on sales, etc.B, o0erall the, were e"/eriencing /ro+lems from an o/erational /ers/ecti0e. Se0eral of the com/anies were ha0ing trou+le (ee/ing their full /roduct lines in stoc( on the warehouse shel0es within the distri+ution centers. $ecause man, of these com/anies had +een una+le to lin( u/ with F.Ms for new /roduct introductions, man, of their /roducts were at the end of their /roduct life c,cles and com/eting almost entirel, on /rice Asimilar to a commodit, /roductB. The organiGation design, manufacturing architecture, and material flow methodologies were struggling to satisf, new e"/ectations for o/erational /erformance. The maDorit, of the o/erations were managing all their /roducts as H+atch and queueI through manufacturing resource /lanning AM!P IIB. All /roducts were scheduled with the same /lanning and control /rocess regardless of their /roduct demand +eha0ior. a/acit, /lanning was not utiliGed well as a management tool, and /roduction orders were usuall, launched to the sho/ floor and ca/acit, constraints reconciled at that time. It was not uncommon to find the master /roduction schedule AMPSB managed 0ia sales dollars rather than +, /roduction unit. #isi+ilit, on the sho/ floor in regard to /erformance to /lan for deli0er,, qualit,, in0entor, turns, c,cle time, equi/ment downtime, /roducti0it,, etc. was not clearl, e0ident. There was limited tie8in +etween sho/floor acti0ities and o0erall +usiness o+Decti0es. It was difficult to see where em/lo,ees were engaged in the o/eration of the +usiness, due to the lac( of feed+ac( as to how the, were /erforming. In res/onse to the need for the entire )interton organiGation to +e com/etiti0e, a significant change in the wa, the manufacturing sites were +eing managed was +eginning to e0ol0e.
ProBect Background
In &o0em+er 5;;>, )intertonMs /arent com/an, merged with a second com/ara+le o/eration. This second o/eration had s/ent se0eral ,ears im/lementing
Case St"&y B+ 5ai3en vent6Base& Lean Progra!
645 lean manufacturing across most of its com/anies. Man, of these com/anies had +een following an a//roach that de/lo,ed lean manufacturing strictl, 0ia a series of KaiGen e0ents or H+litGes.I After se0eral ,ears of conducting KaiGens in manufacturing, it had +ecome e0ident to these com/anies that man, of the lean techniques used +, the sho/ floor were a//lica+le to administrati0e en0ironments as wellJ therefore, the, e"/anded the /rogram to co0er the entire +usiness o/eration. This strategic initiati0e +ecame (nown as Hlean enter/rise.I -ollowing the merger, the new /arent com/an, e"/ected each of its di0isions and com/anies to ado/t the im/lementation of lean manufacturing within their facilities. )hen it came time for )interton to +egin its lean /rogram, the, ado/ted the KaiGen e0ent8+ased a//roach. In addition, the, su//lemented the KaiGen e0ent8+ased a//roach with the utiliGation of a 48 da, lean class to enhance (nowledge transfer to the wor(force. This 48da, lean class was designed for those who alread, had attended an e0ent in order to reinforce those to/ics co0ered during the KaiGen e0ent. This cor/oratewide /roDect was launched with an initial /ilot de/lo,ment at two )interton com/anies in A/ril 5;;;.
ProBect Scope and
1Becti(e
)interton or/oration initiall, targeted 13 com/anies in &orth America for the ado/tion of lean manufacturing, with a time frame for im/lementation of A/ril 5;;; through *ecem+er 5;;;. The com/anies were identified, selected, and di0ided u/ +etween se0eral internal management consultants who had /re0ious (nowledge of lean manufacturing conce/ts to su//ort the rollout of the lean enter/rise /rogram. The lean KaiGen e0ents and 48da, lean classes were scheduled and attendees in0ited. There were two /rimar, o+Decti0es for the /rogram. The first was to conduct at least one KaiGen e0ent at each of the 13 sites in order to introduce the organiGations to the lean conce/ts and de0elo/ KaiGen e0ent leaders. The second was to e"/ose as man, em/lo,ees as /ossi+le to the 48da, lean class +efore the end of *ecem+er 5;;;. The lean class target audience included /lant managers, manufacturing managers, +u,ers, schedulers, /roduction engineers, and first8line su/er0isors. The o0erall intent was to Dum/ start )intertonMs mo0e toward lean, to educate as man, /eo/le as /ossi+le a+out lean tools and techniques, and to demonstrate an im/ro0ement in o/erational /erformance through KaiGen e0ent /roDects as soon as /ossi+le. 64>
ProBect Approac$
$eginning in A/ril 5;;;, com/anies +egan hosting the KaiGen e0ents at their indi0idual facilities and in0ited attendees from other )interton facilities to /artici/ate in the e0ents. The e0ents were intended to last 4 da,s and usuall, concentrated on four se/arate /roDects, t,/icall, three /rocesses from the sho/ floor and one administrati0e /rocess. .ach /roDect had a cross8functional team of > to 51 /eo/le assigned to it. The strateg, was for these e0ents to +e utiliGed as s/ring+oards of lean acti0it, within the o/erations. Fnce a
com/an, had conducted a KaiGen e0ent, the, were to continue following u/ with other e0ents as needed to find waste in the +usiness and continuall, im/ro0e the o/eration. T,/icall, an e0ent lasted 3 to 9 da,s, de/ending on /roDect sco/e, o+Decti0es, and whether the site had /re0ious e"/erience with KaiGen. The first da, consisted totall, of training and education. It was a mi"ture of lecture, e"ercises, discussions, and simulations. The training addressed multi/le lean manufacturing to/ics Ae.g., one8/iece flow, Kan+an, 0isual management, measures, etc.B. The second and third da,s were the actual KaiGen e0ent itself, during which the teams@ A5B +aselined the e"isting /rocessJ A1B designed a new /rocessJ A3B demonstrated the new /rocess, including the rearrangement of equi/mentJ and A4B re8+aselined the new /rocess. Fn the fourth da,, the teams re0iewed their successes and de0elo/ed a follow8u/ strateg, for an, remaining Hto doI actions. $efore the e0ent, there was some initial discussion with the com/an, /resident a+out the current state of the +usiness and what lean enter/rise could do for them. After agreeing on the four /roDects, /roDect team leaders were assigned. These team leaders, if the, had not alread, run a KaiGen e0ent, were required to attend the e0ent of another site in order to gain some e"/erience in managing a KaiGen e0ent. In addition to the KaiGen e0ents that were +eing conducted at each of the sites, the 48da, lean class was +eing deli0ered in order to reinforce the learning /oints from the KaiGen e0ents and to e"/and the (nowledge +ase of )interton em/lo,ees. This lean class was +eing /resented to audiences that had alread, attended a KaiGen e0ent. $ecause there was a large num+er of em/lo,ees who needed to +e e"/osed to the additional lean material in a short /eriod of time, the lean classes were conducted in /arallel with the scheduled rollout of the KaiGen e0ents. This KaiGen e0ent8+ased a//roach to im/lementing lean management resulted in man, of the com/anies achie0ing demonstrated /erformance changes during the one8wee( e0entJ howe0er, se0eral of the com/anies were
64? not a+le to sustain that change. In some instances, com/anies e0en re0erted +ac( to their original /ractices and le0el of /erformance. It would a//ear there were se0eral reasons for this outcome@ 5. A general lac( of /re/aredness e"isted +efore the KaiGen e0ent was launched. Much of the data required in order to +egin the anal,sis /hase on the second da, of the e0ent were not readil, a0aila+le. The clarification to em/lo,ees as to managementMs e"/ectations was limited. 1. A great deal of confusion surrounded the entire wee(8long e0ent as to what the, were doing and wh,. Little u/8front communication a+out wh, this lean /rogram was im/ortant to the +usiness or how it fit into e"isting +usiness initiati0es had +een /resented. 3. The follow8u/ on Hto doI acti0ities and coordination of multi/le assignments after the e0ent /ro0ed to +e quite a challenge for man, of the com/anies. F/en items lingered for wee(s and sometimes months. Ke, resources within the +usiness were o0erwhelmed with wor( Aes/eciall, maintenance and information s,stemsB, and decisions a+out what to do and where to go ne"t were not 0er, clear to /eo/le within the +usiness. Although man, com/anies struggled, se0eral com/anies were a+le to achie0e im/ro0ed /erformance and successfull, sustain it. These com/anies
had se0eral traits in common@ >. Lea&ershi). There was a constant dri0ing force that o0ercame a/ath, and did not let inertia set into the organiGation. There was an unwillingness to allow statements such as H)e canMt do thatI or HThat wonMt wor( hereI to sto/ the effort. The tenacit, to see it through and a willingness to tr, new a//roaches were constants. C. 1irection. An o0erall /lan or 0ision as to what was ne"t or what success loo(ed li(e when the /rogram had achie0ed its mission was 0er+aliGed. Knowledge a+out what the ne"t ste/s might +e and an understanding of which technique to use ne"t along that /ath were e0ident. H. Co!!on goalFobIective. It was esta+lished u/ front with the /roDect team what the, were tr,ing to achie0e in a quantifia+le manner. There was a concentration of their collecti0e efforts on measura+le targets. The, com/ared actual /erformance against those targets, /osted the actual results in order to trac( /erformance, and were held them accounta+le for achie0ing those targets. 6=@
E. S"))ort. The, /ro0ided constant coaching and guidance to the /roDect team in order to hel/ them gain confidence with the tools and techniques. There was continual interaction with the team to hel/ them sta, on trac(, which remo0ed the /ossi+ilit, of inertia setting in and /ro0ided encouragement through the tough times in order to (ee/ their s/irits u/. The com/anies that e"hi+ited these traits were a+le to achie0e a change in /erformance and sustain that change. In all cases, someone who held a leadershi/ /osition within the o/eration demonstrated these traits. $e it a /resident, general manager, or 0ice /resident, each of them was a dri0ing force for ma(ing the KaiGen e0ent8+ased a//roach +e successful within their /lants.
ProBect "ime 'ine Benefits Ac$ie(ed
EF?? JF?? KF?? @F?? BF?? ?F?? >DF?? >>F?? >CF??
K. Y 1 K. Y 4 K. Y 4 K. Y 4 K. Y = K. Y 4 K. Y 3 K. Y 3 C A>B A5=B A5=B A52B A5;B A:B A4B A9B C L Y3L Y5L Y3L Y3L Y3L Y1
/ote+ K. Y KaiGen e0entsJ num+ers in /arentheses indicate the num+er of /roDectsJ L Y num+er of 48da, lean management classes. ProIect Ty)e 9"antity Res"lt Bene*it
ell manufacturing 51 ,cle8time reduction 32W;9S Producti0it, increase 59W42S SM.* 5= hangeo0er reduction 39W;2S Manufacturing flow 5; ,cle8time reduction 12W;2S Administrati0e flow 5: ,cle8time reduction =2W;2S Kan+an/material /ull ; In0entor, reduction =2W;2S Material flow/stores 4 ,cle8time reduction =2W>2S
6=6
"ec$ni%ues -tili!ed 'essons 'earned

?
Proclaim a 0ision and clarif, a le0el of e"/ectation at the +eginning of a /roDect. This is necessar, to set the tone, generate a focus for common grounding, and hel/ engage all em/lo,ees in the change /rocess. ? a/ture the current /erformance of identified /rocesses as a +aseline, and measure actual /erformance results that directl, align with and im/act the +ottom line. These should +e tangi+le measures related to changes in the /rocess Ae.g., /erformance to /lan of /roduction schedules, le0els of in0entor,, dollars of scra/ /er /roduct out/ut, /roducti0it, of /roduct out/ut/manhour in/utB. ? onduct /lanning and anal,sis of the +usiness +efore initiating the KaiGen e0ent. An understanding of current +usiness initiati0es, where the com/an, is going, and what le0el of /erformance is needed for a /roduct and in what mar(ets is crucial. ? Include acti0ities +oth +efore and after the wee( of the KaiGen e0ent when /lanning for the e0ent. A lean road ma/ is necessar, in order to communicate to e0er,one in the organiGation that this is a /rogram to sta, and not Dust a Hfla0or of the monthI initiati0e. $efore the KaiGen e0ent is conducted, all the detailed anal,sis of demand management,
Lean manufacturing AKaiGen e0entB Fne8/iece flow, ta(t time, /ercent loading chart, Kan+ans, material /ull, 9S house(ee/ing, 0isual controls, /ro+lem +oards, sho/floor metrics, /rocess ma//ing, SM.*, TPM, Po(a8,o(e Lean manufacturing A48da,B Eido(a, autonomation, Andon, 0isual controls, Dust8in8time, ta(t time, continuous flow, /ull s,stems, standard wor(, wor( element anal,sis, 9S house(ee/ing, muda, /rocess ma//ing, Kan+an, HeiDun(a, Po(a8,o(e, TPM, F.., +ig si" losses, Do+ instruction training, cross8training
6=9
wor( content, equi/ment a0aila+ilit,, etc. should +e com/leted. After the e0ent, it is im/ortant for the /roDect team to (now where to go ne"t and what to e"/ect. This is accom/lished +, creating a road ma/ that loo(s +e,ond Dust the current wee(. ? Plan on ha0ing the lean management e"/erts remain with the /roDect for an e"tended /eriod of time during and after the KaiGen e0ent to e"/lain, demonstrate, and 0erif, use of the lean manufacturing tools and techniques. The constant coaching and guidance reinforce learning of the tools and 0erif, that (nowledge has actuall, +een transferred. ? !ecogniGe that there is an interrelationshi/ +etween +usiness /rocesses. $usiness /rocesses function as a s/ider we+ of acti0ities, where a change in one /rocess often affects other /rocesses. )hen de/lo,ing lean manufacturing, it is im/ortant to (ee/ this in mind. ?
Plan a coordinated effort of all lean initiati0es across the /lant. ProDects should +e integrated into one o0erall game /lan in order to achie0e s,nerg, +etween the /roDects and ma(e sure the, are all headed in the same direction. ? Announce to the entire organiGation what is ha//ening, wh, the com/an, is doing it, and who is in0ol0ed with the /roDect. )hen /eo/le see acti0it, ha//ening within the organiGation and do not understand what it is for or wh, it is going on, the, tend to +e sus/icious of the /roDect and will not readil, engage themsel0es with the effort. ? Include /rocess owners in the KaiGen e0ent when conducting acti0it, in their area. It is critical that the, understand the /ro+lems +eing faced and that the, +u, in to the solution that has +een de0elo/ed. After all, the, ha0e to li0e with the solution when the e0ent is o0er. ? InstitutionaliGe or Hloc( downI the new wa, of doing +usiness through documentation Astandard wor(B and control A/erformance measuresB to sustain the change. If the new /rocess is not recorded, /resented for em/lo,ee training, and monitored as to 0ariation from the design, then the /rocess has a 0er, high /ro+a+ilit, of returning to the old wa,s.
6=;
"estimonials
HThe four8da, class should ha0e +een done first. It would ha0e gi0en me a +etter idea what we were doing and wh,.I A%irst6Line S")ervisor HThe KaiGen e0ent was e"hilaratingU )e got more done in two da,s than we ha0e in the /ast two ,ears.I ASho)*loor 2)erator HI feel li(e I ha0e +een gi0en a hammer, a screwdri0er, and a /air of /liers. I ha0e +een shown some tools, +ut I ha0e no idea how to use them.I A ngineering Manager HA great deal of ha0oc is created o0er a few da,s and then no+od, remains to hel/ clean u/ the mess after the e0ent. )e ha0e this long list of Rto doM items and no+od, to do them.I ASho) S")erinten&ent HAfter seeing the lean class, I ha0e a +etter understanding of the a//roach and where se0eral of the techniques fit together, +ut I am still short on how to use the tools and when.I A9"ality ngineer HThe e0ent was great. )ho is going to ma(e sure we (ee/ doing itOI ASho)*loor 2)erator 6=4
6=
&ase Study &:
+ig$2*olume2:ocused :actory ProBect

&ompany Profile
ithin wal(ing distance of the cit, limits of Frlando is a manufacturer of engineered chain /roducts called T, or hain. T, or hain is actuall, the com+ination of two se/arate facilities, T,ron and or+in. .ach o/eration had +een +uilding chain since the 5>22s, +ut /lant rationaliGation resulted in consolidating the /lants in 5;;5. The Frlando site had +een e"/eriencing a reduction in siGe and head count since the 5;:2s and had the s/ace a0aila+le to relocate equi/ment. T, or was a unioniGed sho/, and wor(ers were mem+ers of the United Steel )or(ers local >1;. There were 392 em/lo,ees on the /a,roll, of which 5:9 were direct la+or. The facilit, s/rawled o0er 422,222 square feet and was aligned in a traditional factor, la,out with assem+l, de/artments and fa+rication de/artments. The /rimar, manufacturing /rocesses were turning, grinding, cold forming, heat8treating, and the manual and semi8automated assem+l, of chain. F0er the ,ears, this o/eration was at one /oint a+le to increase sales to o0er \92 million /er ,ear, with a /ea( of \99 million coming in 5;;=J howe0er, se0eral ,ears of mar(et decline, changes in ownershi/, and a lac( of in0estment had left the com/an, with sales re0enues of \3> million and dro//ing /rofits. .fforts to con0ince se0eral different owners that a significant in0estment in ca/ital was required to turn this o/eration around were not successful, thus lea0ing them with limited alternati0es to im/ro0e the o/eration.
)
6==
3ri(ers for &$ange

Fther than the o+0ious loss in mar(et share, decreasing re0enues, and limited /rofit num+ers, this o/eration was +eing hit with hea0, foreign com/etition from such unli(el, sources as India, hina, Singa/ore, and Taiwan. The foreign com/etition was /roducing a /roduct of com/ara+le qualit, at a cost significantl, less than T, orMs. In addition to the e"ternal forces for change, there were internal forces as well. )hen T, orMs new /arent com/an, came to 0isit, it was made clear that this o/eration needed to ma(e some significant changes to com/ete as a 0ia+le entit, within the grou/. )ith these identified issues as dri0ers for change, it was not difficult to esta+lish a moti0ation for change within this organiGation.
ProBect Background
In 5;;=, a strategic /lan was de0elo/ed to im/lement Hfocused factoriesI throughout the facilit,. This /lan was well thought out, +ut it was also e"/ensi0e due to the required in0estment in new ca/ital. In earl, 5;;:, T, or hain in0ited a grou/ of /roducti0it, consultants to wor( with the management team and sho/ floor to +oost on8time deli0eries and increase /roducti0it,. The /roDect did not go as /lanned and had a negati0e im/act on relations +etween management and the sho/floor union wor( force. This unresol0ed conflict was still e0ident when, in Ma, of 5;;;, T, or again
initiated a com/an,8wide effort to im/ro0e the o/eration through the im/lementation of lean manufacturing. The lean effort initiall, +egan as a series of KaiGen e0ents. The /rogram officiall, (ic(ed off in Ma, 5;;;, with four indi0idual KaiGen /roDects ASM.*, Kan+an, and two /roduct flow cellsB. Three of these /roDects were selected +ecause the, were the right siGe to quic(l, demonstrate a change in /erformance through the su//ort of sho/floor em/lo,ees. It was considered critical to +egin mending relations with the union and tr, wor(ing together through the KaiGen e0ent as a wa, to Dointl, im/ro0e the o/eration. The fourth /roDect, Kan+an, was considered an integral /art of the de0elo/ment of a Hfocused factor,I conce/t that was to +e de/lo,ed later on in the ,ear. *uring the e0ent, target sheets were created for each of the indi0idual /roDects, and se0eral of the /roDects were a+le to demonstrate im/ro0ement during the e0ent. F0er the course of the ne"t few months, T, or hain continued to launch additional KaiGen /roDect teams across the factor, as Hislands of im/ro0ement.I A tremendous amount of energ, was +eing e"/ended and initiati0es
Case St"&y C+ (igh6'ol"!e6%oc"se& %actory ProIect
6=5 were getting startedJ howe0er, the, were ha0ing trou+le com/leting all the /roDects, including the focused factor,. )orse ,et, results were not showing u/ on the +ottom line. In &o0em+er, it was determined that a change in course was necessar, in order to channel the collecti0e energies of all em/lo,ees and +egin to generate results at the +ottom line. So, a course was set for im/lementing focused factories across the entire facilit,.
ProBect Scope and
1Becti(e
In *ecem+er 5;;;, the *irector of Plant F/erations conducted a re0iew of the /rogramMs o0erall /rogress and led a discussion of alternati0e a//roaches with the President of T, or hain and the com/an,Ms controller. This meeting was used to clarif, e"ecuti0e management e"/ectations relati0e to the lean /rogram and to o+tain su//ort for the new direction. After a length, discussion, the, decided u/on the following actions@ 5. hange the course of the /roDect to concentrate on getting the focused factories u/ and running, rather than s/reading the efforts across the o/eration through the Hisland of acti0it,I a//roach. 1. Fnce the first focused factor, was u/ and running as a good Hwor(ing modelI that satisfied an identified e"it criteria, re/licate that model throughout the +alance of the factor,. 3. Scale +ac( the amount of KaiGen /roDects currentl, scheduled and com/lete those /roDects that had alread, +een started +efore underta(ing an, new KaiGen /roDects. 4. S/ecif, a /roDect management structure with /rotocol, steering committee, detail schedules, defined deli0era+les, assigned ownershi/ for deli0era+les, etc. 9. hange organiGational res/onsi+ilit, for the entire set of manufacturing /rocesses that su//ort a focused factor,, and select a focused factor, manager with ownershi/ for the /roduct from Hcradle to gra0e.I =. .sta+lish o/erational measures that would demonstrate +ottom8line im/ro0ements through im/ro0ed in0entor, turns, reduced head count, reduced /ast8due orders, etc. and would hold the focused factor, manager accounta+le for the /erformance.
$, re0iewing annual demand 0olumes for the entire line of chain /roducts, T, or was a+le to determine that the highest 0olume /roduct demand 6=>
was for their snowmo+ile dri0e8chain /roduct line, which was alread, +eing im/lemented +ut with limited success. &ot onl, was this a high80olume demand /roduct, +ut it was also a 0er, standard /roduct with little com/le"it, +, wa, of manufacturing /rocesses. In addition, T, or claimed >>S of the mar(et for snowmo+ile chainJ therefore, it was determined to ma(e that facilit, the /ilot focused factor,. The /rimar, o+Decti0es esta+lished for the snowmo+ile focused factor, included@ 5. .liminate all /ast8due orders A9222 strands at the time of /roDect launchB. 1. Im/ro0e in0entor, turns from 9 to 92. 3. UtiliGe Kan+an re/lenishment for all high80olume com/onents. 4. Assign a focused factor, manager. 9. Im/lement a s(ill8+ased /a, s,stem to re/lace the current unioniGed indi0idual incenti0e /a, s,stem. =. UtiliGe one8/iece flow methodolog, Aone strand of chainB to enhance qualit, feed+ac( and s/eed manufacturing c,cle time.
ProBect Approac$
As was stated earlier, in *ecem+er 5;;; the o0erall a//roach to the lean initiati0e was altered. !ather than s/read the energ, of man, /eo/le across a large area Aremem+er, this facilit, is 422,222 square feetB, the a//roach was changed to that of esta+lishing a good wor(ing model that could +e du/licated throughout the factor,. The initial ste/ in this /rocess was to esta+lish a full8time lean team dedicated to de/lo,ment of the lean /rogram. This allowed all those indi0iduals who were tr,ing to /rioritiGe acti0ities with /art8time resources to esta+lish a single, /rimar, focus C im/lementation of lean manufacturing. The ne"t ste/ was to concentrate efforts on securing a win. This was accom/lished +, designating s/ecific /roduct grou/s or families Ae.g., snowmo+ile chainB toward which the lean team would channel their efforts at de0elo/ing focused factories. This is not to sa, that all other KaiGen efforts were /ut on hold. T, or Dust needed to reduce the quantit, of KaiGen e0ents that had +een scheduled and reschedule them to some later date. This relie0ed the +urden on the organiGation infrastructure so that acti0ities could now +e com/leted and the focused factor, conce/t could +e de/lo,ed. The o0erall conce/t for the focused factories required se0eral changes within the o/eration@
6=? 5. The ownershi/ for /erformance of the focused factor, was realigned to the entire /rocess of /roducing chain. .0en though assem+l, cells were at one end of the +uilding and fa+rication of com/onents used in the assem+l, of chain was located at the other end of the +uilding, res/onsi+ilit, for +oth was assigned to the focused factor, manager of that /roduct grou/ing. 1. In the focused factories, the assem+l, cell was esta+lished first, as it was closest to the customer. There were s/ecific lean /rinci/les required for the assem+l, cell to function, and s/ecific /erformance le0els were e"/ected. As the cell achie0ed these He"it criteriaI and was considered sta+le, then the fa+rication cell was +rought on +oard. A-or the snowmo+ile factor,, these e0ents ha//ened simultaneousl,
due to the fact that it had a narrow /roduct line with high80olume demand and dedicated equi/ment.B 3. )hen +oth cells had satisfied the e"it criteria and were /erforming at a sta+le le0el, then the, could +e lin(ed through a Kan+an /ull signal for /art re/lenishment. This action eliminated the stoc( room and generating /art demand +ased on M!PII. 4. The last ste/ was to relocate the entire focused factor, to its final configuration, there+, com/letel, lin(ing the entire focused factor, from +oth a /h,sical and a logistical /oint of 0iew. It was done in this manner /rimaril, +ecause of the e"/ense and ris( in0ol0ed in mo0ing the fa+rication equi/ment +efore (nowing which end of the +uilding was a//ro/riate. 9. The indi0idual incenti0e s,stem used to com/ensate the wor(force had to +e re/laced +ecause it was dri0ing the wrong +eha0ior and did not fit with the new focused factor, conce/t. Therefore, T, or management de0elo/ed a new s(ill8+ased /a, s,stem. $, la+or contract, the, could do this +ecause the, were designing a new wor( area with com/letel, different o/erating rules from the rest of the sho/. This new s,stem allowed direct la+or em/lo,ees to ma(e the same rate of /a, the, made under the old s,stem, +ut onl, after the, attained a s/ecified le0el of s(ill. The, esta+lished one Do+ classification and called it Hfactor, technician.I -or the lean /roDect team, selecting the focused factor, manager as soon as /ossi+le was (e, to successfull, im/lementing the new structure. The original launch for the snowmo+ile /roduct grou/ had +een struggling. It was decided that a leader assigned to manage the entire manufacturing /rocess would accelerate the im/lementation immensel,. This /ro0ed to +e 65@
a+solutel, correct. In addition to the organiGational change for the focused factor, manager, the team had to address union issues surrounding the new /a, scenario. Management e"/lained to the union leadershi/ how the new /a, s,stem was to wor( and then /ut the new /osition out for +id with a 0er, /ositi0e res/onse. Fnce the leader was assigned and the /a, s,stem installed, the area was off and running. After o/erating with the new lean /rocesses for se0eral wee(s, the /erformance of the focused factor, and the team +uilding among direct la+or cell team mem+ers had im/ro0ed significantl,. The o/erators were concentrating 0er, hard on eliminating Afor the first timeB their /ast8due orders and fi"ing qualit, issues as the, surfaced. In an effort to accommodate crosstraining needs, the cell team set u/ a game /lan for integrating cross8training the first two wee(s of the month and focusing on /roduction the last two wee(s of the month. )or(ing in this manner allowed the cell team time to de0elo/ its /eo/le and still satisf, customer demand requirements. The lean team was a+le to rather quic(l, re/osition the focused factor, conce/t from a struggling im/lementation to a high8fl,ing success +, le0eraging three elements@ A5B focusing the im/lementation effort around a /roduct grou/ing, A1B satisf,ing the needs of the em/lo,ee through the /a, s,stem and training /lan, and A3B assigning accounta+ilit, for the /rocesses that /roduced a gi0en /roduct in order to im/ro0e /erformance and achie0e +ottom8line results.
ProBect "ime 'ine
Milestone Plan
?F?? >DF?? >>F?? >CF?? D>FDD ProDect is launched Area is cleared and /re/ared Assem+l, is mo0ed and /roduction is sta+le om/onent manufacturing is relocated and /roduction read, Snowmo+ile focused factor, is functioning as a unit Case St"&y C+ (igh6'ol"!e6%oc"se& %actory ProIect
656
"ec$ni%ues -tili!ed
Program and /roDect management harter, milestone /lan, haGards, issue log, /rotocol, /roDect organiGation, /roDect file, ris( assessment, detail schedule, deli0era+les, control mechanisms -ocused factor, manager@ assessment and selection andidate self8e0aluation, change rece/ti0it, /rofile, $el+in roles, grou/ inter0iew, ga/ anal,sis, de0elo/ment /lan Lean manufacturing A-i0e Primar, .lementsB Fne8/iece flow, standard wor(, wor(a+le wor(, /ercent loading chart, forward /lan, cross8training, runner, re/eater, stranger, ta(t time, Kan+an, A$ material management, 9S house(ee/ing, /ull scheduling, 0isual control, roles and res/onsi+ilities, o/erating rules, sho/floor metrics, ser0ice cell agreements, mi"8model manufacturing, P/P anal,sis, /roduct8focused management, continuous im/ro0ement, routing anal,sis Lean manufacturing AKaiGen e0entsB Fne8/iece flow, ta(t time, /ercent loading chart, Kan+ans, material /ull, 9S house(ee/ing, 0isual controls, /ro+lem +oards, sho/floor metrics, /rocess ma//ing, SM.*, TPM, Po(a8,o(e Lean manufacturing
A48da,B Eido(a, autonomation, Andon, 0isual controls, Dust8in8time, ta(t time, continuous flow, /ull s,stems, standard wor(, wor( element anal,sis, 9S house(ee/ing, muda, /rocess ma//ing, Kan+an, HeiDun(a, Po(a8,o(e, TPM, F.., +ig si" losses, Do+ instruction training, cross8training
659
? UtiliGation of a full8time Hlean teamI is necessar, in order to esta+lish /riorities and consolidate efforts in the same direction. ? Assigning ownershi/ for /rocess im/ro0ement along /roduct grou/ings remo0es the functional silo 0iew of /ro+lems and assigns accounta+ilit, for /erformance im/ro0ement to one /erson. This organiGational change has a significant influence on how quic(l, /roDect o+Decti0es are achie0ed. ? Agreeing on e"/ectations earl, in the /roDect is necessar, so that all /arties (now what the, are tr,ing to achie0e and what success loo(s li(e when the, get there. ? Knowing which lean tools and techniques to use when and how /la,s an influential role in /roducing +ottom8line result quic(l,. ? S/reading /art8time resources across man, initiati0es leads to misalignment of /riorities and the ina+ilit, to com/lete all assigned acti0ities. It /laces undue +urdens on the organiGation and ma(es it difficult to com/lete an, acti0ities well. ? Assigning the com/an, controller to the steering committee can ha0e a tremendous +enefit when it comes time to de0elo/ metrics for a /roDect and when it is time to Dustif, the focused factor, conce/t to others in the organiGation. ? It is +est to assess and select the focused factor, manager as earl, in the /rocess as /ossi+le, definitel, +efore im/lementation. ? Indi0idual incenti0es /roduce localiGed o/timiGation, which does not su//ort the lean manufacturing conce/t. The remo0al of an indi0idual incenti0e8+ased /a, s,stem is a mustJ howe0er, it needs to +e done with the com/lete (nowledge and understanding of the union, /articularl, in light of how it is going to affect an indi0idualMs /a,.
Metric Baseline Act"al <D>FDD= Target
*eli0er, 42S ;2S 522S Lead8time > wee(s 3 wee(s 1 wee(s In0entor, turns 9 32 92 S/ace :492 ft
1
=>22 ft
C Head count 15 5: 54
65; ? $e sure to de0elo/ and follow a game /lan when changing the wor( rules and reward s,stem of em/lo,ees. Thin( through how to get from /oint A to /oint $. It is not enough to ha0e a good solution to a /ro+lem. That solution must +e e"ecuta+le.
"estimonials
HI ha0e +een im/ressed with the fundamental culture change that has ta(en /lace with the im/lementation of lean in the focused factor,. )e ha0e a long8standing histor, of detailed Do+ descri/tions wor(ing in an incenti0e8/a, structure. The formulation of the factor, technician /osition, which includes res/onsi+ilit, for all equi/ment and /rocesses along with /roducing to customer demand, has allowed us to ma(e this culture change with a high le0el of acce/tance from the wor( force.I A%actory Manager HThe wa, the snowmo+ile and +loc( chain factor, is set u/ is a good idea. The /arts are closer together and ,ou can catch the +ad /arts faster. .0er,one hel/s each otherJ that is a /lus. The +ig /ro+lem so far has +een the heat8treat o/erationMs turnaround time on our /arts.I ATechnician HI li(e what I see with the new snowmo+ile cell factor,. )hat a great wa, to do the right thing in +uilding chain. It will reall, wor(. I enDo, wor(ing this wa,. )e should ha0e done this a long time ago.I ATechnician HLean manufacturing is a good idea. 7reat things ha0e resulted since the +eginning of the focused factor,. Training needs to +e em/hasiGed more. )ith the e"/erience that we ha0e in the area, /eo/le should recei0e the +est training /ossi+le.I ATechnician HLean is a great conce/t with /otential in qualit, and /roducti0it,. It +rings new challenges to the wor(force. Fur onl, /ro+lem is our heattreat turnaround time.I ATechnician H-rom the initial conce/t of creating the focused factor,, we (new it was going to +e a long Dourne,. There ha0e +een man, challenges along the wa, and there will +e man, more. F0ercoming those challenges ma(es for a stronger team en0ironment and wor( force. Im/lementation of lean manufacturing ta(es dedication. 'ou must eat, +reath, and slee/ lean. If ,ou donMt, ,ou are not tr,ing hard enough. Success is ,our onl, o/tion.I A%actory Manager 654
6=
&ase Study 3:
Aai!en E(ent2Based :ocused :actory Pilot

&ompany Profile
ocated in the western su+ur+s of *en0er, $el8!on is a manufacturer of engineered chain /roducts. $el8!on +egan o/erations at this facilit, in 5;41, and the, em/lo, 325 /eo/le, of which 155 are mem+ers of the local machinist union 5=:3. The facilit, is s/read across 3:2,222 square feet and organiGed around the /roduction of its two main /roduct lines C con0e,or idlers and ma(e8to8order chain. A//ro"imatel, one quarter of the /lant has +een dedicated to the manufacture of idler /roducts, with the remaining three quarters laid out in a traditional factor, flow for the /roduction of ma(e8to8order chain. The /rimar, manufacturing /rocesses within this facilit, include /unching, grinding, forming, heat8treating, welding, /ainting, and the manual assem+l, of chain. $el8!on had +een a+le to increase annual sales re0enue for the com+ined /roduct lines to as high as \=3 million +ac( in 5;;9. The, commanded a significant amount of a0aila+le mar(et share, in /art +ecause the, /roduced He0er,thing for an,+od,.I Futside com/etition had ne0er reall, +een a se0ere /ro+lemJ therefore, $el8!on had alwa,s +een a source of /ositi0e cash flow for the /arent cor/oration. $ecause the com/an, was +eing utiliGed as a Hcash cow,I in0estment in the +usiness for maintaining and u/grading ca/ital equi/ment had +een limited. .fforts to con0ince se0eral different owners that
'
65=
an in0estment in ca/ital was required to sustain the o/eration and hel/ it achie0e /articular +usiness o+Decti0es for the future were limited. F0er the ,ears se0eral niche /la,ers +egan to enter the mar(et/lace and si/hon off s/ecific mar(et sectors, +ut this was not considered a maDor /ro+lem +ecause the com/an, was still generating significant cash flow for the +usiness and still had /lent, of mar(et share remaining. It was not until the entire industr, as a whole +egan to fall off that significant /ro+lems +egan to surface.
3ri(ers for &$ange

$ecause $el8!on was all things to all /eo/le, the o/eration managed all /roducts in e"actl, the same wa,. This, in turn, meant that the maDorit, of their /roducts had 0er, long lead8times com/ared to mar(et/lace requirements. It also meant that management s/ent a significant amount of time e"/editing all /roducts through the facilit, in order to satisf, s/ecific customer deli0er, dates Awhich were +eing missedB. It resulted in high unit costs that were squeeGing /rofita+ilit, li(e ne0er +efore. In addition, $el8!on was +eginning to recei0e less than fa0ora+le feed+ac( from customers through su//lier Hscore cardsI and e0en encountered un/leasant customer site 0isits. .0en though $el8!on had sta+le sales re0enues at the time, it was +ecoming increasingl, o+0ious that that situation was not going to last unless something changed. The con0e,er idler o/eration was facing hea0, com/etition from multi/le sources. The, were a small /la,er in the mar(et/lace and were tr,ing to com/ete on /rice and lead8time. A0aila+ilit, and s/eed
to mar(et were the com/etiti0e criteria that customers required, and the com/an, was struggling to consistentl, satisf, this demand. In order for $el8 !on to regain mar(et share, the, needed to reduce lead8time on standard /roducts to fi0e da,s or less and maintain on8time deli0er, relia+ilit, of ;9S or +etter. In addition to these mar(et forces for change, there were internal forces as well. In late 5;;>, $el8!on was acquired +, a new /arent com/an,. )hen the e"ecuti0e management of the new /arent com/an, came to 0isit, the, found an organiGation that was o/erating with 5;92s /roduction ca/a+ilit,, sho/floor la,out, management structure, and organiGational culture, as well as a traditional manufacturing /hiloso/h,. The, saw equi/ment that was not maintained, manufacturing /rocesses that were laid out +, functional de/artment, multi/le la,ers of management re/orting, direct la+or /iece8wor( incenti0es Aremem+er, this was a union sho/B, and undisci/lined house(ee/ing /ractices.
Case St"&y 1+ 5ai3en6Base& %oc"se& %actory Pilot
655 It was clear that this o/eration needed to im/lement a significant change in its +usiness /ractices to +e com/etiti0e and satisf, new le0els of o/erational /erformance. )ith +oth mar(et share and internal issues as the /rimar, dri0ers for change, this organiGation (new it would ha0e to ado/t a different a//roach to manufacturing in order to +ecome a com/etiti0e entit,.
ProBect Background
In the s/ring of 5;;;, the new /arent com/an, +egan to roll out a strategic /rogram focused on the de/lo,ment of lean manufacturing within the cor/oration. The /rogram was to +e rolled out through a series or Hwa0eI of KaiGen e0ents and 48da, lean classes. The lean classes were to +e utiliGed as reinforcement for the (nowledge transfer of lean tools and techniques utiliGed during the KaiGen e0ent. As the em/lo,ees +ecame more confident in their use of the tools, the, would schedule other KaiGen e0ents and stri0e for further continuous im/ro0ement and waste elimination within the facilit,. In A/ril 5;;;, $el8!on hosted their first KaiGen e0ent. Attendees from se0eral other sister facilities were in0ited to /artici/ate and learn how to im/lement the lean /rogram. $el8!on had identified four indi0idual KaiGen /roDects Aorder administration, setu/, cell manufacturing, and assem+l, flowB for the e0ent. All of these /roDects were selected with the idler /roduct line in mind. This /roduct had se0eral o/erational issues relati0e to +oth manufacturing lead8times and e"cess in0entor,. It was felt that +, coordinating se0eral /roDects along the same /roduct line s,nergies would de0elo/ +etween the KaiGen /roDects, and this would ha0e the greatest im/act on the idler +ottom8line /erformance.
ProBect Scope and
1Becti(e
In March 5;;;, the /resident of $el8!on had as(ed his management team to select four /roDects for the u/coming KaiGen e0ent. The team loo(ed at their o0erall +usiness, anal,Ged the /roduct demand 0olumes for each of the /roduct grou/s, and re0iewed the o/erational /erformance of the two /rimar, /roduct lines, con0e,er idlers and engineered chain. The team selected the idlers +ecause@ 5. The, re/resented \52 million of sales Anearl, 59S of all re0enuesB. 1. Production of the idlers was alread, self8contained, with all the manufacturing /rocess on one side of the +uilding. 65>
3. There was significant o//ortunit, to im/ro0e /erformance with limited ris(. 4. The engineered chain /roduct line in0ol0ed a greater num+er of /art num+ers, a significant mi" 0ariet,, and common resources and equi/ment, and most of the fa+rication equi/ment was not surfacemounted Ameaning that redesign or rearrangement would require digging and /ouring new concreteB. In addition, most of the utilities were laid in the concrete flooring. The /roDect sco/e im/acted con0e,er idler /roduction from incoming raw material to shi//ing. The manufacturing /rocesses included forming, welding, assem+l,, and /ainting. The /roDect o+Decti0es included@ 5. !educe in0entor, le0els from \112( to \5>2( A12SB. 1. Achie0e on8time deli0er, /erformance of ;9S or +etter. 3. !educe manufacturing lead8time to 9 da,s or less. 4. !educe changeo0er times +, 92S. 9. Im/ro0e s/ace utiliGation. =. Im/ro0e res/onsi0eness through fle"i+ilit,.
ProBect Approac$
$efore the KaiGen e0ent was scheduled, /artici/ants from sister com/anies were in0ited to attend the wee(8long KaiGen e0ent. The o+Decti0es were twofold@ A5B introduce the /artici/ants to the KaiGen a//roach, and A1B ha0e the /artici/ants +ring an outsiderMs /ers/ecti0e to $el8!on. The teams were staffed with mem+ers that re/resented multi8functional +ac(grounds and included sho/ su/er0isors, o/erators, union stewards, engineers, managers, etc. $, using cross8functional teams, the statement, HThatMs the wa, we ha0e alwa,s done things,I could more easil, +e challenged. The KaiGen e0ent was (ic(ed off on the first da, with a full da, of training and education. This training consisted of a mi"ture of lecture, e"ercises, discussion, and simulations. The content addressed the o0erall KaiGen /rocess, the schedule for the wee(, and the introduction to se0eral lean tools and techniques Ae.g., one8/iece flow, Kan+an, SM.*, TPM, loading charts, /rocess ma//ing, Po(a8,o(eB. The o/erational /rocesses for /roducing and deli0ering the con0e,er idler /roduct line were di0ided among four teams. Fn the second da,, each team had to clarif, its sco/e and o+Decti0es, ma/ the current /rocess, and gather
65? +aseline o/erational /erformance data. Fnce the, had collected all the data and s/ent time anal,Ging the current /rocess, the, were facilitated through a +rainstorming e"ercise +, the team leader in order to de0elo/ o/tional solutions to satisf, the agreed u/on o+Decti0es. Fnce the new design was agreed u/on, it was turned o0er to maintenance and s(illed craft to +egin relocating +ins, rac(s, and equi/ment. $, the end of the third da,, the cell area had had enough equi/ment rearranged to demonstrate the flow of the new /rocess and recogniGe significant gains in the area of manufacturing lead8time and in0entor, reduction. F+0iousl,, the in0entor, was still there, +ut the, had designed a new manufacturing flow that would not require the e"cess wor( in /rocess that was currentl, a0aila+le. -inall,, the teams generated a 328da, Hto doI list to manage the remaining outstanding acti0ities Ae.g., ordering weld curtains, +leeding off in0entor,, running utilit, linesB. $etween Ma, 5;;; and March 1222, $el8!on scheduled a series of followu/
KaiGen e0ents in such areas as SM.*, 9S house(ee/ing, and Kan+an to sustain the gains and (ee/ /rogress mo0ing forward. These mini8KaiGen /roDects were used to continuall, reinforce the /rinci/les of lean and demonstrate to the wor(force that $el8!on was serious a+out utiliGing this a//roach to im/ro0e the +usiness. Se0eral of the first SM.* KaiGen /roDect ideas came from the original 48 da, KaiGen e0ent. The 328da, Hto doI list /ro0ided some initial insight as to what equi/ment and /rocesses needed to +e addressed. Teams for the later SM.* KaiGen /roDects were staffed with a cross8functional re/resentation of em/lo,ees from across the /lant. Most of the teams were staffed with the manufacturing manager, equi/ment o/erators, /roduction engineer, tooling engineer, and a manufacturing re/resentati0e from the engineered chain /roduct line. F0er the course of the ne"t 52 months, the, conducted se0en SM.* KaiGens Aa0eraging a+out one e0er, = wee(sB. The, addressed welding fi"tures, shears, shaft /roduction, roll cutoffs, angle shear o/erations, die consolidation, and the de0elo/ment of a die8e"change s,stem. These efforts significantl, contri+uted to the reduction of lead8time and increased fle"i+ilit, within the idler /roduction area. As the idler team +ecame more confident in their KaiGen a//roach, its lean effort +ecame much more of a self8/er/etuating situation. !ather than formall, scheduling a set num+er of KaiGens /er month or quarter, management let the team decide when, where, and how man, the, were going to conduct. )hen the first mini8KaiGen e0ent was initiated, the team was s(e/tical as to whether this initiati0e was going to lastJ howe0er, after the e0ent was finished and the, saw how much was accom/lished and how management 6>@
was actuall, listening and reacting to their recommendations, the grou/ was energiGed. $etween Eul, 5;;; and March 1222, the idler o/eration conducted no less than nine mini8KaiGen e0ents Ain addition to the SM.* KaiGensB. These mini8e0ents focused /rimaril, on@ 5. 9S house(ee/ing Ato throw out unnecessar, items and identif, required itemsB 1. -reeing u/ floor s/ace Ato im/ro0e the flow of material, allow /ointof8 use deli0er, for :9S of raw materials, and im/ro0e the a+ilit, to /erform line8of8site managementB 3. ross8training Ato increase res/onsi0eness and fle"i+ilit, within the unitB 4. Limiting and controlling in0entor, Ato esta+lish same8da, deli0er, /erformance on the to/ si" high80olume /roducts and reduce leadtime through the manufacturing area +, remo0ing e"cess wor( in /rocessB These8mini e0ents hel/ed to sha/e the focus and direct the energies of the idler team toward constant continuous im/ro0ement. The team went +e,ond Dust factor, rearrangement and flow. In Fcto+er 5;;;, the team recei0ed a//ro0al to address the flow of material and im/lemented a Kan+an re/lenishment s,stem. The, started to im/lement the s,stem at the /oint of su//l, for raw materials. The team anal,Ged the raw material and com/onents /arts flow, determined demand +eha0ior for usage, and identified 0endors of the material. In *ecem+er 5;;;, the teams selected four 0endors with whom to de0elo/ o/erating rules and /ilot the im/lementation of Kan+an for 14 /arts. The, de0elo/ed a 0isual Kan+an /rocess that
utiliGed a Hfa"+anI as the re/lenishment signal +etween the su//lier and the customer. The a//roach wor(ed out so well that +, March 1222 the, had si" different 0endors on Kan+an for 33 indi0idual /arts. In the same month, the, were a+le to turn on a Kan+an re/lenishment s,stem for a s/ecified le0el of finished goods, there+, allowing them to +uild to the demand of a finished Kan+an signal. FrganiGationall,, changes were made within the idler /roduct line that were /recursors to the esta+lishment of the focused factor, conce/t. Initiall,, $el8!on was de/lo,ing lean tools and techniques on the sho/ floor through KaiGen e0ents. In order to esta+lish ownershi/ for the effort and maintain continuit,, it made sense to assign someone to manage the o0erall /roDect, /articularl, now that all the manufacturing /rocesses were collected together in a cell. This manager had ownershi/ for the /eo/le, re/orted on
6>6 /erformance, and facilitated the lean acti0ities. $el8!on used this e"/erience and the associated lessons learned from this /ilot focused factor, as the model for other focused factories that were designed and im/lemented throughout other areas of the facilit, during the +alance of calendar ,ear 1222.
ProBect "ime 'ine "ec$ni%ues -tili!ed

Milestone Plan
KaiGen e0ent is initiated -irst SM.* KaiGen is conducted Mini8KaiGens are launched Kan+an s,stem is a//ro0ed Kan+an s,stem is functional
$orksho) Training To)ics A&&resse& EF?? KF?? @F?? >DF?? DHFDD
Fne8da, SM.* KaiGen Process ma//ing, 0ideota/e, internal 0s. e"ternal setu/, one8touch methodolog,, /arallel functions A/it crewB Lean manufacturing AKaiGen e0entB Fne8/iece flow, ta(t time, /ercent loading chart, Kan+ans, material /ull, 9S house(ee/ing, 0isual controls, /ro+lem +oards, sho/floor metrics, /rocess ma//ing, SM.*, TPM, Po(a8,o(e Lean manufacturing A48da,B Eido(a, autonomation, Andon, 0isual controls, Dust8in8time, ta(t time, continuous flow, /ull s,stems, standard wor(, wor( element anal,sis, 9S house(ee/ing, muda, /rocess ma//ing, Kan+an, HeiDun(a, Po(a8,o(e, TPM, F.., +ig si" losses, Do+ instruction training, cross8training
6>9

? Assign ownershi/ for /rocess im/ro0ement along an entire /roduct famil,. This remo0es the functional silo 0iew of /ro+lems and assigns accounta+ilit, for /erformance im/ro0ement to one /erson and his or her team. This organiGational change will significantl, im/act how quic(l, /roDect o+Decti0es are achie0ed. ? Understand the o0erall +usiness /lan and where resources ha0e /re0iousl, +een allocated +efore launching a lean manufacturing effort. onflicts in +usiness /riorities and confusion a+out o/erational focus will arise if this issue is not addressed. ? MinimiGe e"/osure, mitigate ris(, and o+tain results to hel/ re0eal cause8and8effect relationshi/s +, utiliGing /ilots and a//l,ing the lessons learned. ? Identif, the cell leader as earl, in the /rocess as /ossi+le to ha0e time to assign ownershi/ for the new manufacturing /rocess. ? Machine o/erators are often the /rocess e"/erts and a great source of ideas for setu/ reduction /roDects. ? Ha0e a dedicated team A/roDectB leader for the transformation to lean manufacturing. The +alance of the /roDect team should +e dedicated at least =2S of the time. ? Address the issue of cultural change. ommunicating the Hneed for changeI is /aramount to achie0ing su//ort for the new wa, of doing +usiness. ? -ollow through on all /lanned commitments and demonstrate results Ae0en those that were less than successfulB. This +uilds trust throughout the organiGation and su//orts the Hwal( the tal(I mentalit,.
Metric Baseline Act"al <DHFDD= Target
Fn8time deli0er, >9S ;9S ;9S Manufacturing lead8time =W53 da,s 3W= da,s 9 da,s or less In0entor, le0el Araw materialsB \112( \542( \5>2( Setu/ reduction >> minutes 12 minutes 44 minutes S/ace utiliGation 4;,=22 ft
1 1 1
4>,;22 ft 4>,222 ft
6>;
"estimonials
HKaiGen wor(ed out well. )e wor(ed together, had good results, and reduced setu/ time. )e need to continue this effort to get more done.I ASho)*loor 2)erator
HI was 0er, enthusiastic in the +eginning and saw some of m, ideas im/lemented, +ut then it sto//ed and I +ecame discouraged. Small quantities are hard to get used to.I ASho)*loor 2)erator HIt is necessar, to ha0e all /arties on the same /age Amanagement, su/er0ision, o/erators, etc.B, and it is 0er, im/ortant that the decisions of the team can +e im/lemented, without significant management inter0ention.I APro&"ction Planner 6>4
6=
&ase Study E: Assem1ly Production -nit ProBect
&ompany Profile
ust outside the cit, limits of downtown Houston is a /roducer of industrial a//lication +earing /roducts called A7 $earing. A7 $earing +egan o/erations in 5;9; and has o/erated as a union facilit, with a total em/lo,ee head count of 992, of which 419 are mem+ers of the local 55=2. The facilit, occu/ies 922,222 square feet, including administrati0e offices. The o/eration has followed a traditional manufacturing la,out, with indi0idual de/artments segregated +, /roduction /rocess with su/er0ision assigned accordingl,. The /rimar, manufacturing /rocesses ha0e included /ainting, grinding, turning, heat8treating, and manual and automated assem+l, of +earings. F0er the course of the last 9 ,ears, A7 $earing had +een a+le to consistentl, sustain to/ line re0enue in the range of \;2 to \522 million /er ,ear. The com/an, has +een 0er, /rofita+le and successful at deli0ering on customer needsJ howe0er, unit /ricing /ressures, ca/acit, constraints on some assem+l, lines, lac( of manufacturing fle"i+ilit,, and e"cessi0e in0entor, le0els ha0e made it difficult for A7 $earing to im/ro0e the o0erall /erformance of its o/eration.
6>=
3ri(ers for &$ange
Fne of the issues surrounding the im/lementation of change at A7 $earing, was the fact that the, were ma(ing good /rofits. Their margins were 0er, good for their industr,, their re0enue line was sta+le, and the, had +een a+le to satisf, /roduct a0aila+ilit, requirements of customers through the utiliGation of a national distri+ution warehouse s,stem. In addition, as mentioned earlier, this was a union sho/ that had not e"/erienced a great deal of change in recent histor,. Under the e"isting contract, union mem+ershi/ was a+le to ma(e
good mone, through indi0idual /iece8rate incenti0e and were not reall, interested in altering that course. This +usiness scenario /resented a 0er, difficult situation in which to initiate a change /rogram. )hen an organiGation is not in /ain and has +een ma(ing good mone, for se0eral ,ears, it is difficult to see a need to change how the +usiness is run. Although the need for change was not 0isi+le financiall,, it was e0ident o/erationall,, and for A7 $earing the need for change came from se0eral sources. The initial or /rimar, dri0er came from the new /arent com/an, that now owned A7 $earing. The /arent com/an, had +egun to launch an im/ro0ement initiati0e across all of its facilities and was e"/ecting all of its com/anies to /artici/ate. The second dri0er came from the /resident of A7 $earing who recogniGed that man, of the issues that were not 0isi+le at the to/ line were nonetheless e"tremel, 0isi+le at the +ottom line Ae.g., constant o0ertime, e"/edited deli0eries, significant management inter0ention, e"cess in0entor,B. All these issues were 0isi+le at the sho/ floor and 0er, familiar to those who ran the o/erations side of the +usiness. In addition to these internal forces, when re/resentati0es of the new /arent com/an,Ms e"ecuti0e management came to 0isit, the, made se0eral comments a+out this facilit, utiliGing the /rinci/les of lean manufacturing to im/ro0e the o/eration. These sources of change were the /rimar, dri0ers +ehind wh, A7 $earing launched a lean manufacturing initiati0e within their organiGation.
ProBect Background
The lean manufacturing effort for A7 $earing officiall, (ic(ed off in Se/tem+er 5;;;. The /lant manager and his staff identified four indi0idual /roDects to +e im/ro0ed during a one8wee( KaiGen e0ent. The /roDects co0ered a wide range of to/ics AKan+an, setu/ reduction, cellular manufacturing, and /roduct flowB. These /roDects were selected +ecause of the +usiness need to +uild confidence throughout the organiGation with the use of the KaiGen
Case St"&y + Asse!bly Pro&"ction .nit ProIect
6>5 /rocess and to quic(l, /roduce se0eral successful im/ro0ements. $aseline /erformance target sheets were created for each of the indi0idual /roDects and demonstrated im/ro0ements were recorded on the sheets. .ach of these /roDects did achie0e some le0el of success and /ro0ided a (ic(8start for the lean /rogram. F0er the ne"t se0eral months, more KaiGen e0ents were scheduled for s/ecific to/ics such as SM.*, TPM, etc., and /roDect teams were launched across the factor, to focus on these s/ecific /roDects. $, &o0em+er 5;;;, it was +ecoming o+0ious that after three months of effort on the lean /roDect, not much was changing on the +ottom line. Man, good things were ha//ening. Peo/le were fi"ing equi/ment, changeo0er times on machines were coming down, and the manufacturing areas were loo(ing more organiGed, +ut an, im/act on the +ottom line was difficult to demonstrate and this was +ecoming a source of frustration to all em/lo,ees in0ol0ed with the lean initiati0es. In an effort to /ro0ide focus and demonstrate a +ottom8line im/act, it was determined that an effort should +e launched directl, aimed at the +earing assem+l, o/eration. A significant o//ortunit, for im/ro0ement resided in assem+l,, and it was the manufacturing /rocess closest to the customer. Puoted lead8times to customers were in the neigh+orhood of 3 wee(s, and wor(8in8/rocess in0entor, le0els +etween assem+l, and fa+rication were \:.9 million in Dust com/onent /arts. A team was selected and dedicated to this lean /roDect for the /ur/ose of esta+lishing what is called, for all intents and /ur/oses, an assem+l, /roduction
unit. An assem+l, /roduction unit is an organiGation design +ased around cells. Fwnershi/ for /roduct /erformance is assigned to cells for the customers the, ser0eJ howe0er, ownershi/ is not Hcradle to gra0eI li(e that of a focused factor,. A focused factor, has ownershi/ from raw materials to finished goods. An assem+l, /roduction unit onl, has ownershi/ +ac( to a wor(8in8/rocess stores location for com/onent /arts. Unli(e de/artments, which are usuall, organiGed for s/ecific /rocesses, a /roduction unit has total res/onsi+ilit,, accounta+ilit,, and authorit, A!AAB for the /roducts from wor(8in8/rocess stores to the final customer. The teamMs o0erall mission was to im/lement as man, lean /rinci/les in assem+l, as required to +ring a+out a +ottom8line change in o/erational /erformance.
ProBect Scope and
1Becti(e
In &o0em+er 5;;;, A7 $earing mo+iliGed this full8time lean team to design, de0elo/, train, and im/lement a lean manufacturing en0ironment in assem+l,. 6>>
This team was staffed with three em/lo,ees, all of whom concentrated their collecti0e energies on the lean initiati0e. To gi0e the /roDect some structure and a logical sequence for im/lementation, and to generate a /ositi0e im/ro0ement as soon as /ossi+le, the, identified the ."cel $earing /roduct famil, as the first assem+l, area on which to focus their efforts. The ."cel $earing /roduct line had +een +rought into the A7 $earing facilit, in Eul, 5;;; after the /lant closure of a sister /lant. The ."cel $earing /art num+ers, tooling, and qualit, requirements were all unfamiliar to the A7 $earing em/lo,ees. The manufacturing /rocess documentation was limitedJ therefore, the training of new o/erators was difficult. In addition, ."cel $earingMs /roduct had +een set u/ to +e assem+led in a +atch8and8queue mode, not a one8/iece flow cellJ therefore, it was not sur/rising that the ."cel $earing assem+l, lines in the A7 $earing facilit, were not /roducing at the le0el of out/ut required to satisf, customer demand. *emonstrated out/ut was a+out 3922 +earings /er da, across the four assem+l, lines on two shifts. The required out/ut was 9222 +earings /er da,, and that was not +eing met e0en with o0ertime on Saturda, and Sunda,. The o+Decti0e was to de0elo/ and de/lo, a lean manufacturing en0ironment that was a+le to satisf, a customer demand le0el of :222 units /er da, o0er a 98da, wor( wee( without o0ertime.
ProBect Approac$
In the middle of &o0em+er, the lean team recei0ed training on change management /rinci/les, team mo+iliGation a//roaches, and /roDect management fundamentals. It was recogniGed earl, on that the team mem+ers had limited e"/erience with managing /roDects. It was also a//arent to the team that an organiGation that did not recogniGe a need for change was not going to +e eas, to changeJ therefore, the team o/ted to follow the structured /roDect management a//roach outlined in their training. The team de0elo/ed an agreed8u/on charter and milestone /lan outlining their /roDectMs sco/e and o+Decti0es. The team limited the /roDect sco/e to Dust ."cel $earing assem+l,, and their o+Decti0es were to achie0e one8/iece flow manufacturing on the +earing assem+l, lines with im/ro0ed through/ut, /roducti0it,, reduced qualit, /ro+lems, and reduced in0entor, le0els. $etween the initial launch of the /roDect in &o0em+er 5;;; and -e+ruar, 1222, the lean team had a difficult time getting started and showed signs of significant frustration. A formal re0iew of the /roDectMs /rogress unco0ered the following issues@
6>? 5. $, conducting a $el+in role assessment on the team mem+ers, it was learned that none of the team mem+ers had a strong im/lementer role /reference, which is crucial for a lean manufacturing /roDect. It was determined that the /roDect leader /referred the role of Hs/ecialist,I which led to difficult, focusing se0eral of the team mem+ers. 1. The /roDect team was e"/eriencing difficult, getting launched in a direction and then sta,ing the course. There was a significant amount of confusion as to who was to do what and what direction the /roDect was su//osed to +e ta(ing. 3. The /roDect was +eing controlled in an informal manner, without regular re/orting and formal status re0iews with the /roDect team. 4. The lean manufacturing /roDect for assem+l, was launched with a /roDect owner who was not a+le to dri0e the /roDect. !egular re/orting of /rogress was not requested, and the owner was not reall, engaged in monitoring the /roDectMs /rogress. 9. The lean team had +een e"/eriencing difficult, in getting the sho/floor o/erators to consistentl, wor( with the lean a//roach. )hen the lean team was out on the sho/ floor, the areas could /erform e"actl, as designed. )hen the team was a+sent, /erformance fell off. It was determined that +u,8in and ownershi/ for the new lean manufacturing design and wa,s of doing +usiness had not reall, ta(en /lace for those who actuall, owned the /rocess, namel, the sho/floor /ersonnel and their su/er0isors. =. There was a lac( of definition as to who had what role and res/onsi+ilit, for the design, de0elo/ment, and su+sequent im/lementation of the lean /roDect. This was one of the /rimar, reasons a lac( of coo/eration e"isted +etween the lean team and the sho/floor management, who were the targets for the change. :. It was difficult to tell when a cell was actuall, im/lemented. The criteria for success or targeted le0els of /erformance were not clear, not communicated, and not trac(ed. >. It was disco0ered +, the lean team that much of the tooling and some of the equi/ment +eing utiliGed +, the o/erators were not ca/a+le of /roducing a good8qualit, /roductJ therefore, the /roDect was set +ac( a few wee(s to identif, and correct the sus/ect tooling. ;. The a0erage num+er of ,ears of A7 $earing wor( e"/erience for frontline su/er0ision was 13 ,ears. Man, of these front8line managers had ne0er wor(ed outside the e"isting /lant and therefore were not aware of an, other wa,s to conduct +usiness. 6?@
After some length, discussion +etween the /roDect team and the steering committee, the following course of action was decided u/on@ 5. The /roDect sco/e should +e e"/anded to co0er the end8state 0ision for assem+l, and the remaining /roduct lines in assem+l,. The initial im/lementation effort should remain focused on ."cel $earing, +ut an end8state conce/t should +e de0elo/ed for the assem+l, /roduction unit. In addition, a ,ear 1222 game /lan for achie0ing the conce/t needed to +e generated. This schedule was to ha0e assigned actions with dates and a descri/tion of deli0era+les. 1. A new /roDect owner was to +e assigned who had a greater 0ested interest in the successful outcome for the /roDect and would dri0e it
to com/letion. 3. The /oor8condition tooling would +e identified and scheduled for reconditioning in a timel, manner. 4. The lean team was to engage the sho/ foreman A/rocess ownerB in the design efforts so that the new /rocess would ha0e +u,8in and the handoff during im/lementation would +e seamless. The lean team was to +e /hased out of the ."cel $earing assem+l, area when the sho/ too( charge of de/lo,ment. Fnl, after all e"it criteria had +een satisfied could the lean team disengage com/letel,. 9. The lean team was to de0elo/ a formal /roDect management /rotocol for controlling the /roDect +, esta+lishing a war room, meeting on a regular +asis, conducting /roDect status re0iew meetings, and re/orting on /erformance metrics regularl,. =. To engage the entire em/lo,ee wor(force, /articularl, the front8line su/er0isors, an o0erall lean /roDect announcement was to +e deli0ered to the entire em/lo,ee /o/ulation. :. The lean team was to conduct a formal KaiGen e0ent to officiall, (ic( off the de/lo,ment of the ."cel $earing assem+l, lines and /h,sicall, mo0e to the sho/ floor during the im/lementation to show su//ort for the im/lementation issues. *uring the month of March 1222, these changes in course for the /roDect were incor/orated and the results were tremendous. The new /roDect leader +egan enforcing disci/line with regard to the new lean /rocesses, and im/ro0ed le0els of /erformance were +eing sustained in the ."cel $earing assem+l, cells. Metrics were re0iewed in the war room and u/dated on a wee(l, +asis. The /roDect team met on a +i8monthl, +asis to re0iew /roDect
6?6 status with the steering committee and on a dail, +asis with the /roDect owner during the im/lementation of an assem+l, cell KaiGen e0ent. In addition to the shorter term initiati0es, the lean team de0elo/ed an end8state 0ision for assem+l, and /roduced a game /lan that im/lemented all /roduct lines in the assem+l, /roduction unit +, the ,ear 1225. These assem+l, cell designs were +ased on the same /rinci/les as those of the ."cel $earing assem+l, cells in order to +uild on the lessons learned and e"/erience gained with the /ilot im/lementation.
ProBect "ime 'ine

Milestone Plan
CFDD HFDD EFDD JFDD
Lean team is mo+iliGed 'ear 1222 im/lementation /lan is a//ro0ed ."cel $earing cells three and four are sta+le ."cel $earing cells one and two are sta+le
6?9
"ec$ni%ues -tili!ed
Program and /roDect management
harter, milestone /lan, haGards, issue log, /rotocol, /roDect organiGation, /roDect file, ris( assessment, detail schedule, deli0era+les, control mechanisms hange management ommunications /lanning, reaction to change, resistors Team mo+iliGation $el+in roles, conflict management, decision ma(ing Lean manufacturing A-i0e Primar, .lementsB Fne8/iece flow, standard wor(, wor(a+le wor(, /ercent loading chart, forward /lan, cross8training, runner, re/eater, stranger, ta(t time, Kan+an, A$ material management, 9S house(ee/ing, /ull scheduling, 0isual control, roles and res/onsi+ilities, o/erating rules, sho/floor metrics, ser0ice cell agreements, mi"8model manufacturing, P/P anal,sis, /roduct8focused management, continuous im/ro0ement, routing anal,sis Lean manufacturing AKaiGen e0entB Fne8/iece flow, ta(t time, /ercent loading chart, Kan+ans, material /ull, 9S house(ee/ing, 0isual controls, /ro+lem +oards, sho/floor metrics, /rocess ma//ing, SM.*, TPM, Po(a8,o(e Lean manufacturing A48da,B Eido(a, autonomation, Andon, 0isual controls, Dust8in8time, ta(t time, continuous flow, /ull s,stems, standard wor(, wor( element anal,sis, 9S house(ee/ing, muda, /rocess ma//ing, Kan+an, HeiDun(a, Po(a8,o(e, TPM, F.., +ig si" losses, Do+ instruction training, cross8training
6?;

? Assign true full8time team mem+ers, not a roster of team mem+ers who still ha0e other res/onsi+ilities. This is critical to sustaining a common focus. ? larif, roles with all /roDect /artici/ants so that all /arties agree to what the, are tr,ing to achie0e, who is to do what, and what success loo(s li(e when the, get there. ? .sta+lish a regular, formal /roDect re0iew /rocess earl, in the /roDect to control the /roDect and (ee/ it on schedule. )hen haGards or sli/s in the schedule arise, the, must +e escalated according to the /rotocol and addressed immediatel,. ? Process owners Athose who own the /rocess +eing changedB must +e
engaged in the /roDect and commit to the new wa, of doing +usiness +efore im/lementation. ? The /roDect owner must +e engaged in the /roDect and has to /ro0ide the leadershi/ and dri0e for the /roDect to +e successful. ? The roles and res/onsi+ilities of e0er,one in0ol0ed in the /roDect must +e defined, understood, agreed u/on, and documented. ? learl, define e"/ectation and /erformance targets at the +eginning of the /roDect. It is im/erati0e that all /arties in0ol0ed are of one mind as to what a successful /roDect loo(s li(e and how it is to +e achie0ed. ? The utiliGation of $el+in team roles can /ro0ide significant insight into the a//ro/riate structure and /otential wea(nesses of the team ma(eu/.
Metric Baseline Act"al <DEFDD= Target
Parts /er manhour =.4 >.9 51.2 Production out/ut 93S :5S 522S *ail, scheduled hours == 4; 42 *efects /er million =:9> 1=4= :22 Fn8time deli0er, 99S >>S ;9S
6?<
"estimonials
HI +elie0e changes will ha//en. )e can get some things done.I ASho) Manager H)e ha0e to (ee/ one8/iece flow for qualit,.I APlant Manage!ent HIt is im/ortant to ha0e all areas of the /lant wor(ing toward a common +ottom8line goal 0s. indi0idual initiati0es.I A ngineering Manager H)e disco0er /ro+lems more quic(l,. Production scheduling is easier. Pualit, is +etter due to the mo0e toward one8/iece flow. )hen we ma(e a mista(e, onl, a few /arts are affected and the /ro+lem is usuall, caught right awa,. Fne8/iece flow also +rea(s u/ the monoton, of +atch wor( C I used to +e an assem+ler in the +atch en0ironment. The Kan+an ensures that we ha0e our /arts a0aila+le when needed. At ."cel, we had a cri+ attendant that would deli0er our /arts. )e were alwa,s waiting on /arts.I ALine Lea&er HThe Kan+an ma(es it eas, for me to get /arts. The quic(8change tooling is a good idea. I do not ha0e to loo( for Allen wrenches an,more. La+eled tooling at the /ress sa0es me time C I donMt ha0e to search for tooling that is la+eled. I want to do a good Do+ e0er, da,, +ut I get frustrated when /ro+lems arise. TIt is difficult to do four8/iece flow on a line e0en if we ha0e Dust one /ro+lem T it forces us +ac( in a +atch mode.I A2)erator 6?4
6=
&ase Study :: +ig$2*olume and 'o,2*olume &ell ProBect
&ompany Profile
ithin a =28mile dri0e of Los Angeles is a /roducer of /recision +earing /roducts called Monitor $earing. Monitor $earing +egan o/erations at this site in 5;:4. The, ha0e functioned as a nonunion facilit,, with a//ro"imatel, 1;2 em/lo,ees on the /a,roll. The o/eration co0ers 122,222 square feet and has followed a more traditional factor, la,out. The (e, manufacturing /rocesses are cold8forming, screw machining, grinding su/er8finishing, and automated and manual assem+l,. In 5;;:, Monitor $earingMs sales /ea(ed at \34 million of to/8line re0enue. The /rimar, mar(ets the com/an, ser0es are hea0,8dut, truc(, construction, and industrial. The +alance of their ser0ice /roducts ha0e +een handled through a cor/orate distri+ution warehouse s,stem. Historicall,, the com/an, has +een successful at deli0ering to customer needsJ howe0er, e0er8increasing /ricing /ressures, ca/acit, constraints, more stringent /roduct a0aila+ilit, requirements, and customer change orders ha0e +een ma(ing it difficult for Monitor $earing to continue o/erating in the same manner as the, had in the /ast. .fforts had recentl, +een made to de/lo, continuous im/ro0ement initiati0es within the facilit,, +ut these met with limited success. .0en though some in0estment in ca/ital had +een made and the com/an, achie0ed some
)
6?=
+enefit, from a traditional cost8sa0ings /ers/ecti0e, the, had ,et to realiGe an, +enefit from the in0estment in a lean manufacturing initiati0e.
3ri(ers for &$ange

Fne of Monitor $earingMs maDor customers /urchased se0eral high80olume +earings for its truc( transmission manufacturing o/eration. -or as long as the, had +een in +usiness together, this customer had /laced orders with Monitor $earing in a 0er, lum/, demand /attern +ut alwa,s with 518 to 5=8wee( firm schedules. )ithin a relati0el, short time /eriod, though, the F.M customer switched from a traditional firm fi"ed schedule to a demand for /arts +ased on a scheduled final assem+l, sequence. This, in turn, caused schedules to change dramaticall, from 51 to 5= wee(s firm fi"ed to > da,s firm with changes and the fle"i+ilit, necessar, to accommodate wee(l, adDustments, which were at times quite significant. Their demand /attern characteristicall, had large quantities at the +eginning of the month and then little at the end of the month. These dramatic changes in demand
+eha0ior /atterns created ha0oc on the /roduction floor, not to mention the fact that it was a more costl, wa, in which to conduct +usiness. Soon after the schedule changes, the customer +egan /ressuring the com/an, a+out its unit costs and /roduct a0aila+ilit,. In addition to this e"ternal force for change, there was an internal force as well. A new /arent com/an, was launching a strategic im/ro0ement initiati0e aimed at reducing costl, waste AHmudaIB throughout all of its facilities and was e"/ecting all of its com/anies to /artici/ate. The com+ination of these two dri0ers, one internal and one e"ternal, is what dro0e Monitor $earing to em+ar( on a new a//roach to manufacturing.
ProBect Background
Monitor $earing had a 0ariet, of /roduct8demand 0olumes for its 0arious /roduct lines. Some of the /roducts demonstrated a 0er, high demand 0olume Ae.g., 3222 units /er da,B, and some a 0er, low demand 0olume Ae.g., 1222 units /er ,earB. To de0elo/ some momentum for their im/ro0ement initiati0e and to arrest the deterioration of the relationshi/ with one of their /rimar, customers, Monitor $earing decided their highest 0olume /roduct line should +e the first area attac(ed. This would gi0e them a chance to
Case St"&y %+ (igh6'ol"!e an& Low6'ol"!e Cell ProIect
6?5 channel their energies on one s/ecific /roduct famil, and de/lo, the lean techniques rather quic(l,. .0en though the, realiGed demonstrated +enefits from a//l,ing lean manufacturing techniques to the high80olume /roducts, the, recogniGed that this focus on high80olume /roduct lines onl, im/acted a+out 32S of salesJ therefore, the, needed to in0estigate other o//ortunities as well. This meant ste//ing +ac( and loo(ing at the demand /atterns of all their enditem /roducts and segregating them +, some common factor A0olume, mar(et, customer, material, etc.B. In doing so, the com/an, concluded that, for their manufacturing en0ironment, the most a//ro/riate choice would +e to sort the /roducts +, /roduct siGe first and then +, 0olume, which was de/endent on equi/ment ca/a+ilities. $, doing so, the, were a+le to di0ide their entire end8item assem+l, area into four maDor /roduct families@ A5B high80olume +earings, A1B medium8 to low80olume +earings, A3B larger siGe +earings, and A4B low80olume ser0ice. The high80olume +earings encom/assed nine end8item +earingsJ the medium8 to low80olume +earings, =: end8item +earingsJ the large siGe +earings, o0er 422 0arious end8item +earingsJ and the low80olume ser0ice, in e"cess of 922 end items. This segregation of /roduct +eha0iors allowed the com/an, to design and manage the flow of material through assem+l, according to the demand +eha0ior its the /roducts.
ProBect Scope and
1Becti(e
Initiall,, the o0erall /roDect sco/e and o+Decti0es for the lean im/ro0ement initiati0e at Monitor $earing were /rett, much undefined. The com/an, (new that the, had to achie0e im/ro0ed /erformance and that the, had to engage themsel0es with the /arent com/an,Ms strategic effort to eliminate waste. It was Dust a matter of understanding the tools and ha0ing the organiGation required to ma(e the change. Monitor $earing (new the, were e"/eriencing difficult, with one s/ecific customer and that the lean tools and techniques the, were learning a+out would +e a//lica+le to an, of the high80olume cells. So, in an effort to esta+lish a course and set a direction for the com/an,, Monitor $earingMs general manager formulated a target o+Decti0e in Ma, for three of the identified
high80olume cells@ HIn0entor, turns of 51 are to +e achie0ed +, each of these cells +, the end of the ,ear ]*ecem+er 5;;;^. After the end of the ,ear, we will determine a /lan of action for the +alance of the /roducts.I 6?>
ProBect Approac$
Monitor $earing officiall, (ic(ed off their efforts in Eune 5;;;, with four KaiGen e0ent /roDects Aorder entr,, su//lier Kan+an, cellular manufacturing, and /roduct flowB. These /roDects were selected +ecause the, centered around a need to streamline the flow time from customer order to shi/ment for high80olume +earing /roducts that were currentl, in /roduction. Monitor $earing was facing significant cost reduction and on8time deli0er, /ressures from its /rimar, customer and needed to demonstrate im/ro0ement quic(l,. *uring the course of the e0ent, each of these /roDects did achie0e 0ar,ing le0els of success and /ro0ided the (ic(8start necessar, for the lean im/ro0ement initiati0e at Monitor $earing. The high80olume +earing cell was a+le to achie0e a significant im/ro0ement in out/ut from +etween 5122 and 5922 units /er da, to the 1222 /er da, that were required. The, achie0ed this +, anal,Ging the flow of material, understanding the wor( content, and +alancing the wor( +etween stations. In addition, +, im/lementing small +atch flow and Kan+an /ull, the, were a+le to not onl, im/ro0e in0entor, turns from 9.3 to 51.3 +ut also arrest a nagging qualit, /ro+lem that was causing them to lose around \9222 /er month in the form of scra//ed /arts. As the following months /assed, more KaiGen e0ents were scheduled and im/ro0ement teams launched across the factor,. A tremendous amount of acti0it, ensued around /lant8wide 0isual communication of conce/ts, team accom/lishments, 9S house(ee/ing, equi/ment clean8u/, and im/lementation of Kan+an re/lenishment for man, of the /urchased and manufactured /arts in +oth assem+l, and fa+rication. Some /lant8wide efforts were initiated relati0e to single8minute e"change of dies ASM.*B, which focuses on reducing changeo0er time, and total /roducti0e maintenance ATPMB, which focuses on the reduction of un/lanned downtime on equi/ment. $, Se/tem+er 5;;;, it was +ecoming e0ident that the ne"t areas of im/ro0ement within the facilit, were going to +e more com/le" and that the KaiGen /roDects a//roach of Hislands of acti0it,I used so far was not going to address some of the more su+stantial +usiness issues necessar, for success. So, Monitor $earing announced the de/lo,ment of a full8time lean team to focus on the design, de0elo/ment, and de/lo,ment of an o0erall lean en0ironment for the com/an,. This team was staffed with half a doGen em/lo,ees who concentrated their collecti0e energies on lean manufacturing acti0ities. As the lean team +ecame more /roficient with the lean tools and techniques, it was time to +egin ma(ing /lans to address the ne"t areas of o//ortunit, within the +usiness, namel, the lower 0olume and higher mi" /roduct families.
6?? In Eanuar, 1222, the lean steering committee held a formal re0iew to assess the /rogress on the lean im/ro0ement initiati0es to date and to /lot a course for the ne"t ,earMs acti0it,. The organiGation had made great strides in the area of in0entor, reduction, in0entor, turns, and scra/ reduction with their high80olume cells during the /re0ious ,ear, and the, had increased their out/ut ca/a+ilit, +, 19S. The amount of customer orders running +ehind schedule had +een reduced to 0irtuall, nothing. Howe0er, among all
these significant achie0ements, it was recogniGed that there were still a few outstanding issues that should +e addressed +, the lean team +efore tac(ling the lower 0olume /roduct lines. After length, discussion +etween the lean team and the steering committee, the following course of action was agreed u/on@ 5. Loc( down, +utton u/, and institutionaliGe the changes made to this /oint. Se0eral (e, changes had +een made to the o/eration, +ut the, had +een neither well documented nor com/letel, understood +, all the /eo/le in0ol0ed with the change. 1. *efine what a com/leted cell loo(s li(e. There were 0ar,ing o/inions as to when a cell im/lementation was com/lete, there+, lea0ing some to feel it was time to mo0e on while others felt there was more to do. This definition of a cell would lead to the esta+lishment of an He"it criteriaI for the cell, or quantitati0e and qualitati0e elements necessar, for the cell to +e im/lemented. 3. .sta+lish an im/lementation a//roach that would de/lo, the identified /rinci/les of a cell in stages, the conce/t here +eing to incor/orate the foundation /rinci/les of the cell in stage one and then come +ac( at a later date to im/lement the /rinci/les necessar, to +ring a+out a new le0el of o/erational /erformance in stage two. 4. Assign a factor, manager to manage the high80olume /roducts of the cell. Su/er0isors were assigned across de/artments, which made it difficult to define ownershi/ for /roduct /erformance and there+, generate continuous im/ro0ement. 9. *etermine a time line for de/lo,ing the a+o0e8mentioned actions and de0elo/ a game /lan for designing and im/lementing the lower 0olume/higher mi" cells. In -e+ruar, 1222, the lean team concentrated on documenting the new /rocesses in the high80olume cells, esta+lishing a common definition for a successfull, im/lemented cell, and determining the e"it criteria required for a cell to +e considered sta+le. The steering committee too( on the action 9@@
item to wor( with management on selecting the a//ro/riate /eo/le to +e cell leaders for the new lean en0ironment. Fnce these identified /rinci/les were im/lemented and in /lace for a+out 4 to 9 wee(s, the cells +egan to e"hi+it new le0els of /erformance, which /a0ed the wa, for /lanning the low8 to medium80olume cell. The team addressed this cell differentl, than the high80olume cells, which had@ 5. A limited quantit, of end8item /art num+ers to deal with 1. The same manufacturing /rocesses in0ol0ed with each /roduct 3. A 0er, consistent o/erational time from /art to /art at each station 4. A relati0el, consistent customer8demand /attern from month to month 9. A limited quantit, of high80olume com/onents to Kan+an In contrast, the low8 to medium80olume /roducts had@ 5. =: different end8item /art num+ers 1. *ifferent manufacturing /rocesses and equi/ment, de/ending u/on the end8item configuration and /art siGe 3. F/erational times that were relati0el, consistent from /art to /art at each station, +ut required setu/ times at each station ranging an,where from 32 minutes to 4 hours for changeo0er +etween /roduct lines 4. A /roduct8demand +eha0ior that 0aried from 5122 /er da, to 9 /er da,, with an order frequenc, /attern from e0er, wee( to once /er
quarter 9. A wide range of com/onent /arts with 0ar,ing quantities de/ending on the end8item mi", with some of the com/onent /arts +eing used in multi/le end items =. A significantl, greater num+er of machines and assem+l, com/le"it, The lean team followed a structured methodolog, for cell design which ca/tured detailed data a+out the e"isting low8 to medium80olume /roduct famil,. Using this methodolog, allowed them to@ 5. alculate demand quantities /er da, in order to esta+lish runner, re/eater, and stranger /roduct +eha0iors for low8 to medium80olume /roducts. 1. .sta+lish material and wor( flow /atterns +, ma//ing the /rocess and identif,ing 0olume /ercentages +etween stations.
9@6 3. #erif, if an, of the e"isting /roduct routings had +ac(trac(ing or a re0erse flow of material. 4. a/ture wor( content times to understand 0ariations +etween /roducts and +etween wor( stations that were designated for the cell. 9. 7enerate wor( loads on equi/ment to see what and how man, machines were needed for the cell. =. *etermine ta(t time for each of the /roducts and in total for the cell. $, re0iewing the demand /attern, the, could calculate a designed dail, /roduction rate to accommodate 0ariation for runner and re/eater /roducts. :. Understand how much of an im/act e"isting setu/ times would ha0e on scheduling the mi" of /roducts. >. *esign an a//ro/riate hard8signal Kan+an re/lenishment s,stem to allow for the right raw materials/com/onents +eing a0aila+le in the right quantities at the right location. The final design /roduced the following results@ 5. .qui/ment was com/rised of 12 grinders and three assem+l, methods. 1. !oles and res/onsi+ilities o0er the entire o/eration Afrom wor(8in/rocess stores to grinding, +oring, final assem+l,, /ac(aging, and shi/mentB were defined and clarified. 3. !unner /roducts were dedicated to a /articular set of equi/ment and +uilt to a dail, rate. 4. !e/eater /roducts were shared across common equi/ment and +uilt on demand to a re/lenishment Kan+an from shi//ing. The /riorit, for Kan+an orders was first8in/first8out A-I-FB. a/acit, was allocated +ased in the designed dail, /roduction rate. 9. &ew equi/ment was assigned to /ro0ide for 12S growth in this segment to accommodate for ser0ice and lead8time reduction o+Decti0es. =. Stranger /roduct orders were +undled o0er a 18wee( /eriod of time and scheduled to run twice a month across all a0aila+le equi/ment in the cell. $ecause these /roducts were not sold +ased on lead8time or unit /rice, the, did not require the immediate turnaround of the runner and re/eater /roducts. 9@9

Milestone Plan
KF?? @F?? >DF?? >>F?? D>FDD DEFDD
High0olume cell KaiGen e0ent is initiated om/letion of 328da, to8do list Lean team is launched Third high0olume cell is o/erational Low8 to medium0olume /roDect is launched Low8 to medium0olume cell design is com/lete $orksho) Training To)ics A&&resse&
Lean manufacturing A-i0e Primar, .lementsB Fne8/iece flow, standard wor(, wor(a+le wor(, /ercent loading chart, forward /lan, crosstraining, runner, re/eater, stranger, ta(t time, Kan+an, A$ material management, 9S house(ee/ing, /ull scheduling, 0isual control, roles and res/onsi+ilities, o/erating rules, sho/floor metrics, ser0ice cell agreements, mi"model manufacturing, P/P anal,sis, /roductfocused management, continuous im/ro0ement, routing anal,sis Lean manufacturing AKaiGen e0entB Fne8/iece flow, ta(t time, /ercent loading chart, Kan+ans, material /ull, 9S house(ee/ing, 0isual controls, /ro+lem +oards, sho/floor metrics, /rocess ma//ing, SM.*, TPM, Po(a8,o(e Lean manufacturing A48da,B Eido(a, autonomation, Andon, 0isual controls, Dust8in8time, ta(t time, continuous flow, /ull s,stems, standard wor(, wor( element anal,sis, 9S house(ee/ing, muda, /rocess ma//ing, Kan+ans, HeiDun(a, Po(a8,o(e, TPM, F.., +ig si" losses, Do+ instruction training, cross8training ell design P/P anal,sis, /rocess ma//ing, routing anal,sis, ta(t calculation, wor(load +alancing, Kan+an siGing, standard wor(, one8/iece flow
9@;

? .sta+lish a full8time /roDect team to dedicate the resources necessar, to focus on and /ro0ide su//ort for the integration requirements
necessar, with an initiati0e that is managing multi/le as/ects of lean. ? larif, e"/ectations earl, in the /roDect so that all /arties (now what the, are tr,ing to achie0e and what success loo(s li(e when the, get there. ? !ecogniGe that different /roduct +eha0iors dri0e different manufacturing architectures, a fact that affects equi/ment la,outs, scheduling, /lanning and control methodologies, the num+er of /arts to Kan+an, Kan+an quantities, the focus for continuous im/ro0ement, etc. Matching the /roduct8demand +eha0ior with the a//ro/riate manufacturing architecture allows for the most effecti0e /erformance of /roducts to the customer.
Metric Baseline Act"al <>CFDD= Target
+ig$2*olume N6 In0entor, dollars \4>4,222 \14>,222 \422,222 In0entor, turns 9.9 51.3 51 Fn8time deli0er, 42S >2S ;2S Scra/ /ercent 3.:S 5.9S 1.2S +ig$2*olume N9 In0entor, dollars \42:,222 \122,222 \392,222 In0entor, turns ;.9 12 51 Fn8time deli0er, 33S >>S ;2S Scra/ /ercent 3.:S 5.1S 1.2S +ig$2*olume N; In0entor, dollars \339,222 \5222 \122,222 In0entor, turns 4.1 >.9 51 Fn8time deli0er, 33S =9S ;2S Scra/ /ercent 2.>S 2.:S 5.2S
9@<
? Select cell leaders who ha0e res/onsi+ilit,, accounta+ilit,, and authorit, A!AAB for the im/lementation and ownershi/ for /erformance of the cells after de/lo,ment. ? .sta+lish an effecti0e TPM /rogram for a focused factor,/cell, critical when manufacturing equi/ment is in0ol0ed. ? Kee/ designs for one8/iece or small8+atch flow cells sim/le for 0isual and conce/tual understanding. ? In0ol0e su//liers and manufacturing equi/ment su//liers in the design of Kan+an and TPM /rograms to increase commitment to the /rocess changes. ? Kee/ all shifts in a multi8shift en0ironment in0ol0ed, or gains will +e su+o/timal.
"estimonials
HLean manufacturing is a /owerful tool, not onl, for achie0ing /erformance gains unheard of in traditional s,stems, +ut also for gi0ing em/lo,ees tools that im/ro0e morale, the team en0ironment, and a sense of accom/lishment.I ALean Steering Co!!ittee H*o not underestimate the /ower of communicating lean accom/lishments
to ,our customer T it tells them ,ou are controlling ,our costs and dis/la,s ,our commitment to organiGational e"cellence.I AGeneral Manager HIt ta(es more than techniques to dri0e this (ind of changeJ it ta(es leadershi/.I A%actory Manager
G' SSARY
9@5
Glossary
ABC !aterial han&ling. The segregation of material +ased on re/lenishment lead8time, 0alue, and /art com/le"it,. This is done to align /lanning and control a//roaches with certain t,/es of /arts for +est utiliGation of resources. &ot all /arts are created equal. A"tono!ation. Fffers the a+ilit, to se/arate man and machine, +ecause such equi/ment has the ca/a+ilit, to automaticall, shut down when it detects a defect or a+normalit,. The machine sta,s shut down until a human +eing inter0enes, sol0es the /ro+lem, and starts the machine again. Back *l"shing. The deduction from in0entor, records of /arts consumed in an assem+l, when the item is either +oo(ed into finished goods or sold. Block layo"t. A high8le0el 0iew of the factor,, where square footage has +een allocated, or H+loc(ed,I for s/ecific areas. A general descri/tion of what will ha//en in the area is understood in order to assist with the de0elo/ment of material and information flow in the future design. Cell <)ro&"ct cell=. A clearl, focused entit, with the assigned resources necessar, for it to control its own o/erational /erformance and satisf, customer requirements for its gi0en /roducts. ell la,out. A gra/hical re/resentation of the equi/ment//rocesses in a cell, t,/icall, in a U8sha/e, with +oth the o/erator and material flow dis/la,ed. Cell lea&er. The indi0idual selected to lead the da,8to8da, acti0ities within a cell. It can +e either a direct or indirect la+or em/lo,ee, de/ending on the le0el of cell com/le"it,, t,/es of decisions to +e made, and ca/a+ilit, of the wor(force. 9@>
Cell tea! work )lan. A documented schedule AcalendarB of acti0ities for the wee( within a cell. It la,s out the game /lan and /ro0ides a common understanding for all cell mem+ers as to what e0ents should ta(e /lace each wee(. Cell workloa& analysis. An assessment of the effect of wor(load on equi/ment and /rocesses in the cell to assure ca/acit, to +uild future requirementsJ includes an anal,sis of the /roduct demand +eha0ior.
Co!!"nication )lan. A structured /rocess +, which communication is to ta(e /lace throughout the organiGation. It includes a definition and descri/tion as to what message will go to whom when and +, what method. Co!)le0 !i0 )ro&"ction sche&"ling. The same as HeiDen(a. The esta+lishment of a le0el demand /attern sequence +ased on the mi" of re/etiti0e orders from the customer. -or e"am/le, if demand was for 522 A units, 92 $ units, and 92 units, then the HeiDen(a /attern would +e A, $, A, , A, $, , $, T . Conce)t &esign. The first stage of the future state design /hase. once/t design esta+lishes the high8le0el 0iew of what the o/eration will loo( li(e when the lean /rogram is im/lemented. It /ro0ides the foundation for detail design. Contin"o"s i!)rove!ent tools. #er, sim/le tools that can +e utiliGed +, all em/lo,ees to identif, and eliminate waste in their /rocess Afi0e wh,s, histograms, cause8and8effect diagrams, frequenc, charts, Pareto diagrams, etc.B. C)5. An inde" measure of the ca/a+ilit, of a /rocess to consistentl, /roduce /arts. It com/ares the /rocess width Astandard de0iationB with the s/ecification width and location. Cross6training. .m/lo,ees in a /rocess +eing trained to /erform multi/le ste/s within the /rocess, /refera+l, all the ste/s. C"rrent state ga) )hase. The second /hase in the lean manufacturing /rogram, it is designed to ca/ture current o/erational /erformance, to lead to an understanding of the maDor o/erational /rocesses as the, are toda,, and to identif, root causes as to wh, /erformance is what it is. C"sto!erFs"))lier align!ent. *ocumenting and understanding all the customer and su//lier relationshi/s that e"ist for /art flow in the factor,. It in0ol0es identif,ing each /art and recording where it comes from and who it goes to in order to esta+lish clear customer/su//lier alignment.
Glossary
9@? Cycle ti!e <o)erational=. The time required to com/lete one full c,cle of an o/eration. An o/eration is a su+set of a /rocess. Cycle ti!e <)rocess=. The time required to com/lete one full c,cle of a /rocess, made u/ of se0eral o/erations. 1esign &aily )ro&"ction rate. The /roduction rate de0elo/ed in order to satisf, customer demand. It ta(es into account the customer forecast and 0ariations in that forecast. The cell is designed to /roduce at that rate for a gi0en time frame. 1etail &esign. The second stage of the future state design /hase. *etail design anal,Ges what each indi0idual cell requires for im/lementation during the KaiGen e0ents C items such as ta(t time, equi/ment, demand mi", /otential
la,out and staffing, routing anal,sis, etc. 1%MA <&esign *or !an"*act"ring an& asse!bly=. A /roduct de0elo/ment a//roach that in0ol0es multi/le functions concurrentl, throughout the de0elo/ment /rocess to ensure all requirements are ca/tured. It also focuses, through the use of good lean design /ractices, on designing a /roduct that is /roduction friendl, with a 0iew toward reducing recurring total costs. 0it criteria. Puantitati0e and qualitati0e measures that are 0isi+le and can clearl, show that success has +een achie0ed. ."am/les of quantitati0e goals would include ;>S on8time deli0er,, manufacturing lead8time of 1 da,s, /roducti0it, of >;S. ."am/les of qualitati0e goals would include ha0ing all A /arts on Kan+an, documentation of o/erating rules, 9S chec(lists, communication +oards, training matri", /osted metrics, etc. %inishe&6goo&s variation. A calculated le0el of finished goods +ased on demand 0ariation and ser0ice le0el required. This finished8goods in0entor, is usuall, used for /roducts utiliGing Kan+an re/lenishment with Gero customer tolerance on deli0er,. %ive Pri!ary le!ents. A design and im/lementation a//roach that re/resents fi0e /rimar, facets of lean manufacturing. An a//roach that asserts that all facets are required in order to su//ort and sustain a solid lean manufacturing /rogram. JS <ho"sekee)ing=. A structured, fi0e8ste/ a//roach to house(ee/ing that engages +oth management and em/lo,ees in the /rocess. It is a matter of sifting, sorting, swee/ing, standardiGing, and sustaining the wor( en0ironment. 96@
%le06*ence &e!an& !anage!ent. A /lanning and control technique where+, customer demand is released to the cells through a set of o/erating rules agreed u/on +, mar(eting and manufacturing. %M A <*ail"re !o&es an& e**ect analysis=. A technique where+, ris(s in the /rocess are anal,Ged for /otential failure +ased on their effect and the required function of an item. %"t"re state &esign )hase. The third /hase in the lean manufacturing /rogram, it is s/lit into two stages. The first is conce/t design, and the second is detail design. In addition, this /hase includes the im/lementation /lan, transition strateg,, and /lant communication for the /rogram rollout. Gra)hic work instr"ctions. A gra/hical re/resentation of wor( instructions including wor( sequence, wor( content, 0erification chec(s, and source ins/ections. (olistic !an"*act"ring. A 0iew that there is interconnecti0it, and de/endenc, among the -i0e Primar, .lements and that each element is critical and required for the successful de/lo,ment of a lean manufacturing /rogram. (oshin )lanning. A strategic decision8ma(ing tool that focuses com/an,
resources on a few Athree to fi0eB critical initiati0es within the +usiness and aligns these initiati0es from to/ to +ottom throughout the organiGation 0ia s/ecific goals, /roDect /lans, and /rogress re/orting. 8!)le!entation )lan. The schedule of e0ents for im/lementing the lean manufacturing /rogram. It includes a sequence of KaiGen e0ents, deli0era+les, !AA, duration, etc. 5ai3en event. A time8+o"ed set of acti0ities carried out +, the cell team during the wee( of a cell im/lementation. These acti0ities include training, /lanning, design solutions, de/lo,ment, documentation, demonstrating /erformance, etc. The KaiGen e0ent is the im/lementation arm of a lean manufacturing /rogram. 5anban. A demand signal from the customer, the authoriGation to +egin wor(. It controls the le0el of wor( in /rocess and lead8time for /roducts. It facilitates immediate feed+ac( on a+normalities. Lean assess!ent )hase. The first /hase in the lean manufacturing /rogram, it co0ers the initial assessment of the le0el of leanness of the +usiness. It gathers e"ternal information to esta+lish design criteria and determine mar(et o//ortunities.
Glossary
966 Lean !an"*act"ring a"&it. The result of re0iewing a cell im/lementation to /ro0ide feed+ac( through a standard scoring /rocess to indicate the le0el of de/lo,ment achie0ed. Lean roa& !a). The clarified statement, understood +, all those in0ol0ed, of the o0erall direction and ste/s or /hases required for a /articular lean manufacturing /rogram. Level loa&ing. *esigning a le0el load of demand for a gi0en cell in order to accommodate the mi" of /roducts required for that cell A+ased on /roduct 0olume and wor( contentB. Line sto). Authorit, gi0en to an o/erator to shut down the line and not /roduce an, more /roduct if a defect is found in the /rocess. Loa&ing chart. A chart used in conDunction with ta(t time to esta+lish wor(load +alance for the wor( content elements of a gi0en cell and its /roduct mi". Logistics ele!ent. The element that /ro0ides a definition for o/erating rules and the mechanisms for /lanning/controlling the flow of material. Lot si3e s)litting. *i0iding a lot into su+8lots to accommodate simultaneous /rocessing of an order. Make6to6or&er )ro&"ction. A /roduction architecture where /roducts are made after the recei/t of a customer sales order. Man"*act"ring *low ele!ent. The element that addresses /h,sical changes and
design standards to +e de/lo,ed as /art of the cell. Man"*act"ring lea&6ti!e. The ela/sed time +etween when an order is released for /roduction and the item is deli0ered into finished goods. Man"*act"ring strategy. A collecti0e (nowledge of the +usiness that contains current com/etiti0e ad0antages and wea(nesses, identifies mar(et o//ortunities, and includes the associated manufacturing o+Decti0es necessar, to align with these o//ortunities. Material )lanningFcontrol. The o/erating rules and s,stems su//ort used for /lanning and controlling the flow of material to, through, and from one cell to the another. Material )"ll <inter6cell=. A /ull s,stem for re/lenishing material within a cell. Material )"ll <intra6cell=. A /ull s,stem for re/lenishing material +etween cells. 969
Metrics ele!ent. The element that addresses 0isi+le results8+ased /erformance measures with targeted im/ro0ements and team rewards and recognition. Milestone )lan. A tool that identifies maDor segments of a /roDect, the time frame, sequence of maDor e0ents, and associated management de+riefs. Mi06!o&el !an"*act"ring. The a+ilit, to /roduce an, /roduct, an, quantit,, an, time in order to res/ond to customer demand on a dail, +asisJ designing a manufacturing cell that can /roduce an, mi" or 0olume of /roducts on an, gi0en da,. M"&a. Ea/anese word for waste, or non80alue8added. /on6re)etitive 5anban. A Kan+an that is used for one8off or low80olume /roducts. It is introduced into the manufacturing /rocess when there is a s/ecific demand for a /roduct. The signal is sent to the su//lier for a quantit, to fill the demand. After it has +een consumed, it is ta(en out of the re/lenishment c,cle until it is needed again. 2 <overall e-"i)!ent e**ectiveness=. A function of scheduled a0aila+ilit, equi/ment /roducti0it, /rocess ,ieldJ used to understand the effecti0eness of equi/ment. 2**6loa&ing. Sending wor( to an outside su//lier for a s/ecific o/eration or set of o/erations due to a short8term ca/acit, deficit. 2ne6level B2M. All com/onent /arts are at the same le0el in the +ill of material, with no su+8assem+lies, no Hgoes intoI relationshi/s, no leadtime offset, no structured $FM.
2ne6)iece *low. Producing one /art at a time at an o/eration and /assing it on to the ne"t o/eration after ha0ing recei0ed a demand signal. 2)erating r"les. &ew documented rules for o/erating the cell as designed AKan+an card s,stem, ca/acit, loading to ;2S, incoming/outgoing material handling, wor(a+le wor(, recording setu/ times, dail, equi/ment chec(s, line sto/, etc.B. 2)erational roles an& res)onsibilities. *ocumented e"/ectations for indi0idual /ositions descri+ing what the, are accounta+le to accom/lish, s/ecific duties to +e /erformed, to whom the, re/ort, +oundar, of res/onsi+ilit,, direct re/orts, etc. 2rgani3ation ele!ent. The element that focuses on the identification of /eo/leMs roles and functions, training in the new wa,s of wor(ing, and communication.
Glossary
96; Pareto. The conce/t that a small /ercentage of a grou/ has the most im/act. Poka6yoke. A mista(e8/roofing de0ice or /rocedure used to /re0ent defects from entering a wor( /rocess. Policy &e)loy!ent. See Hoshin /lanning. Process control ele!ent. The element that is focused on the monitoring, controlling, sta+iliGing, and /ursuit of wa,s to im/ro0e the /rocess. Process !atri0. The gra/hical re/resentation on a grid, with the manufacturing /rocess across the to/ and /art num+ers down the side. Part flow is drawn inside the grid and used to re0eal /atterns of commonalit,, resource consum/tion, and re0erse /art flow. Pro&"ct6&e!an& behavior analysis. The segregation of /roducts into one of three categories Arunner, re/eater, and strangerB +ased on their /roductdemand +eha0iors. Pro&"ct6*oc"se& !"lti&isci)line& tea!. A team of /eo/le re/resenting 0arious functions within the organiGation, all of whom are focused on im/ro0ing the end8/roduct /erformance of a gi0en set of /roducts, no matter how man, de/artmental lines those /roducts cross. Pro&"ct gro")ing. The segregating of end8/roduct demand items ASKUsB in grou/ings, +ased on defined criteria. Pro&"ctF-"antity assess!ent. The P/P anal,sis tool loo(s for natural +rea(s for /roduct grou/ings +, sorting the gathered data and determining a fit for /roduct cells +, their associated 0olumes and the /roduct alignment characteristics. ProIect charter. A tool that defines and clarifies managementMs e"/ectations in regard to the /ur/ose, o+Decti0es, and e"/ected outcome of a /roDect. This document must +e agreed to and signed off on +, all /arties +efore
a /roDect can +egin. RAA <res)onsibility, acco"ntability, a"thority=. Im/lies com/lete ownershi/ for a deli0era+le, or a /rocess, or a /erformance outcome. An indi0idual Aone /ersonB is answera+le for all as/ects of this assignment. This /erson ma, delegate tas(s +ut does not share the rose that has +een /inned to his or her la/el. Rate6base& sche&"le. Used to esta+lish the /roduction quantit, for rate8+ased /roducts in a gi0en cell. It is determined +, esta+lishing a dail, +uild quantit, from +oth forecasted and +oo(ed orders, which then +ecomes the wor( schedule for the cell. 96<
Re)eater. These /roducts ha0e significant 0ariet, and will usuall, +e /roduced across resources that are not dedicated to a s/ecific flow line. *ue to the lower 0olume amounts, 0aria+le order frequenc, and/or high 0aria+ilit, in o/erational routings, these /roduct8demand /atterns will ha0e to +e managed as mi"8model /roduct and will require more /roduction control su//ort than a runner t,/e of /roduct. Ro"ting analysis. The categoriGation of /roducts +ased on their /rocess flow, wor( content, and 0olume to determine the most effecti0e wa, to manage them in a cellular manufacturing en0ironment. R"nner. These /roducts are ordered in high 0olumes frequentl, from customers and ha0e relati0el, sta+le demand /atterns. The are often managed as rate8+ased /roducts and dedicated to s/ecific cells. Segregate& )ro&"ction sche&"ling. The grou/ing of /roducts around constraints Ae.g., changeo0erBJ for e"am/le, all A /roducts are scheduled to run on first shift, while $ and /roducts are run in sequence during the second shift due to a 18hour changeo0er time +etween mi"es. Service cell. In contrast to a /roduct cell, a ser0ice o/eration is focused on turnaround time and deli0er, relia+ilit, to the customer. Ser0ice cells do not ha0e !AA for /roducts +ut are held accounta+le for their /erformance to /roduct cells. S8P2C <s"))lier6in)"t6)rocess6o"t)"t6c"sto!er=. A /rocess8ma//ing methodolog, used to ca/ture a /rocess, its out/uts, and the associated in/uts that triggered the /rocess, in addition to identif,ing the customer of the out/ut and the su//lier of the in/ut. It also collects information a+out the /rocess, such as lead8time, 0olume, deli0er,, qualit, /erformance, etc. SM 1 <single6!in"te e0change o* &ies=. A structured im/ro0ement methodolog, for reducing changeo0er downtime on equi/ment to less than 52 minutes. SPC <statistical )rocess control=. The use of statistics and data gathering to monitor /rocess out/ut and to control the qualit, of the /rocess. Stan&ar& work. *ocumentation of the agreed8u/on, one +est wa, to /roduce
a /roduct. It ser0es as the communication, training, and /rocess im/ro0ement tool for the cell. It can include such information as c,cle time, ta(t time, designed le0el of wor( in /rocess, o/erator flow sequence, material flow sequence, staffing, etc. Stranger. These /roducts are the miscellaneous items that are +eing /roduced within the /lant as one8off items or ha0e a 0er, low80olume or infrequent
Glossary
964 Aonce /er ,earB demand /attern. These items are usuall, +est managed through M!P and can +e segregated from the rest of the factor,. Takt ti!e. The rh,thm or +eat of demand for the cell. It re/resents the rate of consum/tion +, the mar(et/lace and is +ased on the scheduled time a0aila+le for the cell di0ided +, the designed dail, /roduction rate for the cell. TPM <total )ro&"ctive !aintenance=. A structured a//roach to equi/ment maintenance in0ol0ing o/erators, maintenance /ersonnel, and management, all of whom ha0e s/ecific roles and res/onsi+ilities to eliminate un/lanned downtime on equi/ment. Transition strategy. Identification of s/ecific actions required to su//ort the im/lementation of lean manufacturing through KaiGen e0ents with minimal im/act on e"isting /roduction A+uild ahead, +leed off in0entor,, /re/ wor(, etc.B. Trans)ortation )i)eline 5anban. Used for A8t,/e /arts that are e"/ensi0e and com/le", with long lead8times. The method in0ol0es filling the /i/eline with constantl, flowing Kan+ans, each with a certain num+er of da,sM demand that results in a s/ecific num+er of Kan+ans in the s,stem. The Kan+ans are held and released from designated /oints in the su//l, chain so as to minimiGe the re/lenishment time to the ne"t customer. 'is"al control. The as/ects of lean manufacturing that su//ort line8of8sight management Ae.g., cell name signs, /ainted floors, mar(ed PFU areas, /erformance metricsB. 'ol"!e !atri0. A grid that has the manufacturing /rocess across the to/ and /art num+ers down the side. Part8num+er 0olume, in units and hours, is a//lied to the wor( content times Afrom the wor( content matri"B to segregate high8 and low80olume /roducts and determine the degree of 0ariation and im/act on the cell design. $ork content !atri0. A grid that has the manufacturing /rocess across the to/ and /art num+ers down the side. Part8num+er wor( content for manhours, machine time, and setu/ time are loaded to understand 0ariation from /art to /art and /rocess to /rocess. $orkable work. A /rocess to 0erif, the a0aila+ilit, of wor( elements identified as +eing necessar, for a Do+ to go into /roduction. $orkloa& balancing. Shifting the wor( content elements +etween o/erations in order to +alance the wor(load for the cell to ta(t time.
RE:ERE0&ES
96?
References
5. $elcher, Eohn 7., Er., Pro&"ctivity Pl"s 0 (ow To&ay7s Best R"n Co!)anies Are Gaining the Co!)etitive &ge , Houston, T<@ 7ulf Pu+lishing, 5;>:. 1. o(ins, 7ar,, Activity6Base& Cost Manage!ent+ Making 8t $ork A A Manager7s G"i&e to 8!)le!enting an& S"staining an **ective ABC Syste! , hicago, IL@ Irwin, 5;;=. 3. onner, *ar,l !., Managing at the S)ee& o* Change 0 (ow Resilient Managers S"ccee& an& Pros)er $here 2thers %ail , &ew 'or(@ #illard $oo(s, 5;;1. 4. o/acino, )illiam ., S"))ly Chain Manage!ent 0 The Basics an& Beyon& , $oca !aton, -L@ St. Lucie Press, 5;;:. 9. ostanGa, Eohn !., The 9"ant"! Lea) 0 8n S)ee& to Market , .nglewood, &E@ E8I8T Institute of Technolog,, 5;;9. =. 7unn, Thomas 7., Man"*act"ring *or Co!)etitive A&vantage 0 Beco!ing a $orl& Class Man"*act"rer , am+ridge, MA@ $allinger Pu+lishing, 5;>:. :. Ha,, .dward E., The :"st6in6Ti!e Breakthro"gh 0 8!)le!enting the /ew Man"*act"ring Basics , &ew 'or(@ )ile,, 5;>>. >. Ha,es, !o+ert H., )heelwright, Ste0en ., and lar(, Kim $., 1yna!ic Man"*act"ring 0 Creating the Learning 2rgani3ation , &ew 'or(@ -ree Press, 5;>>. ;. Henderson, $ruce A., and Larco, Eorge L., Lean Trans*or!ation
0 (ow To Change 4o"r B"siness into a Lean nter)rise , !ichmond, #A@ The Fa(lea Press, 5;;;. 52. Hill, Terr,, The ssence o* 2)erations Manage!ent , &ew 'or(@ Prentice8Hall, 5;;3. 55. Hunt, #. *aniel, Process Ma))ing 0 (ow To Reengineer 4o"r B"siness , &ew 'or(@ )ile,, 5;;=. 51. Imai, Masaa(i, Ge!ba 5ai3en 0 A Co!!onsense, Low6Cost A))roach to Manage!ent , &ew 'or(@ Mc7raw8Hill, 5;;:. 53. Ingersoll .ngineers, Making Man"*act"ring Cells $ork , *ear+orn, MI@ Societ, of Manufacturing .ngineers, 5;;1. 54. Mahone,, !. Michael, (igh6Mi0 Low6'ol"!e Man"*act"ring , .nglewood, &E@ Prentice8Hall, 5;;:. 59. Schon+erger, !ichard E., :a)anese Man"*act"ring Techni-"es 0 /ine (i&&en Lessons in Si!)licity. &ew 'or(@ -ree Press, 5;>1.
99@
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I03EO
99;
Index
A
A,$, material handling, 92W95, :9 assem+l, /roduction unit /roDect, 5>9W5;4 autonomation, :5
+aseline /erformance, 54> +atch8and8queue s,stem, :1, 59=, 5>> +enchmar(ing, > +ill of materials A$FMB, 5:, 95, 91 +loc( la,outs, 512, 515, 513, 54> $FM. See +ill of materials
&
ca/acit, control, 4; ca/acit, /lanning, 59= cells, 1: audit of, 52:, 534, 53: ca/a+ilit, of, 5: customer, 91 defining, 5;; design criteria for, 4>, =5, :3, 51:
design of, =>, :5, 53=, 122, 121 designed dail, /roduction rate, :2 fle"i+ilit,, and, 5>, 35 flow of wor( through, 4= high80olume, 5;9W124 la,out of, =5, :3W:4 leaders of, 1;, 5>1. See also leadershi/ de0elo/ment selection /rocess for, 32 logistics, and, 49 low80olume, 5;9W124 manufacturing, 54 material /ull within, 54, 94, 539, 5=2 measurement o+Decti0es, and, 41 num+er of, 54> /ilot, 5:, 54;, 5>1 /roduct alignment, and, 512 /roduction, 5: /roduct8mi" schedule for, 51: /ull s,stem among, 5= re0iewing /rogress of, ;5 sequence of wor( introduction, 4; ser0ice, 95 staffing of, 1> su//lier, 4= wor( /lans, 99 wor(load anal,sis, 53 wor(load of, 51= changeo0er time, >3, 5:>, 5>: changes institutionaliGing, ;5, 5=1, 5;; sustaining, ;5W;1, 59;, 5=1 commodit, /roduct, 59= 99<
communication, 54:, 595, 59;, 5>1 +oard, >>, 53> lin(s, 555 /lanning, 14W1=, 49, 51= questions to answer, 19W1= conce/t design, 512, 54> constraint scheduling, 4: continuous im/ro0ement, 1;, 35, 3>, 3;, :;, ;5, 5;9, 123 tools, 5= controller, steering committe and, 5:1 cost of goods sold A F7SB, 3> /K. See /rocess ca/a+ilit, cross8training, 5=, 5>2 matri", 31W33, ;5
culture, of com/an,, 13, 5>1 current state ga/, 55, 51, 552, 555W55> customer /romise date de0iation, 54= customer requested shi/ date, 54= customer/su//lier alignment, 91W93
data +aseline, 5:; collection, 529, 52> demand, => forecast, =1 o/erational /erformance, 529 /art num+er, := /erformance, 39, 559 /rocess flow, => sales, =1, 552 SKU demand, =1 demand +eha0ior assessment, 512 forecast, :2 /atterns of, 5;=, 5;:, 122 management, 5:, 512, 5=5 de/lo,ment, 535W53> design criteria, 512 design for manufacturing/assem+l, A*-MAB, 5: designed dail, /roduction rate, :2 desired state, 54> detailed design, 54> *-MA. See design for manufacturing/assem+l, direction, 59; dis/atch list, 4; *uPont model, 3=W3>
elements anal,sis, 554 em/lo,ees, and engagement in lean manufacturing, > em/owerment, =, 1:, 1> errors 0s. defects, >4 e"ecution, of im/lementation /lan, 54>, 54; e"it criteria, 512, 511, 53:, 53;, 5=;, 5;; e"/editing, 5:=, 5>=
failure mode and effects anal,sis A-M.AB, 5:, ;1 fear, 14 -I-F. See first8in/first8out first8in/first8out A-I-FB, 4:, 94, :1, 125
-i0e Primar, .lements, 3, 4W=, 52, 15W;1, 525, 529, 592, 5:5, 5;1, 121 9S house(ee/ing, >2, >9W>:, ;5, 539, 53:, 53;, 5:;, 5>2, 5;> fle"8fence demand management, 5: fle"i+ilit,, >2, 5:>, 5:; -M.A. See failure mode and effects anal,sis 42/=2 rule, =3 future state design, 55, 51W53, 552, 555, 55;W532, 54>
ga/ anal,sis, 529, 54> goal alignment, 3=, 42W41, 521 goals, common, 59;
Glossary
994
high80olume /roDect, 5=9W5:3 holistic, defined, 3 Hoshin /lanning, 42, 45 house(ee/ing. See 9S house(ee/ing
im/lementation logic, 512 im/lementation /lan, 51:, 51;, 54> incenti0e8+ased /a,, 5=>, 5=;, 5:1, 5:=, 5>= in/ut/out/ut control, 4; in0entor, turns, 3, 94, :=, ;;, 53;, 544, 54=, 59=, 5=:, 5:1, 5;>, 5;;, 123
Dust8in8time AEITB, 4>, 93W99, :=
KaiGen e0ents, 54, 5=, 5:, ;5, 55>, 51=, 535, 533, 53=, 599W5=3, 5==, 5=:, 5:5, 5>=, 5>:, 5;2, 5;5, 5;1, 5;> focused factor, /ilot, and, 5:9W5>3 sam/le agenda, 59> Kan+ans, 5:, 4=, 4:, 4>, 4;, 92, 95, 9>, =;, :5, :3, 513, 51>, 539, 53=, 53:, 53;, 54>, 5=2, 5==, 5=>, 5=;, 5:>, 5:;, 5>2, 5>=, 5;>, 122, 125, 123 demand signals, 93W99 identification requirements for, := siGing of, =5, :4W::
'
leadershi/, 59; leadershi/ de0elo/ment, 14, 1;W32 lead8time, :=, 54=, 5:1, 5:=, 5::, 5:>, 5:;, 5>1, 5>:, 125
minimiGing, :5 lean assessment, 52, 55, 529W552, 554, 533 lean enter/rise, 59: lean manufacturing a//roach, :W5; audit, 5= communication, 52, 54, 14W1=. See also communication /lanning engaging em/lo,ees in, > focus of, = holistic 0iew of, 3W=, =5, ;9 im/lementation methodolog,, 59 issue/element matri", 55: /rinci/les, 59 requirements /lanning, and, 4> road ma/, ;, 52, 5=5 self8assessment, 52=, 52: team, >W5;, 5>1. See also team techniques, 5=5 total /roducti0e maintenance ATPMB, and, >3. See also total /roducti0e maintenance unions, and, 35, 5=>, 5=;, 5:1, 5>= 0s. mass /roduction, : le0el loading, 99W9=, :2, 53: line8of8site management, >:, 5>2 loading charts, :1 localiGed o/timiGation, 3> logistics, 4, 9, 53, 49W9;, 525. See also -i0e Primar, .lements definition of, 49W4= losses, si" +ig, >3, >4
maintenance. See total /roducti0e maintenance ATPMB manufacturing deli0er,, 54= manufacturing flow, 4, 9, =5W::, 525, 5=2, 5:;. See also -i0e Primar, .lements manufacturing resource /lanning AM!P IIB, 4>, 92, 95, =3, =>, 59=, 5=; manufacturing strateg, outline, 55
mar(et segmentation, 52; 99=
master /roduction schedule, 59= material +ac(flushing, 5: material handling AA,$, B, 92W95 matri" cross8training, 31W33, ;5 decision, 512 issue/element, 55:, 533 o/tion selection, 515 /rocess, == 0olume, =>, =;, 51; wor( content, ==, =:, 51; measures, ;5 definition of, 3=, 41W43 o+Decti0es of, 41 out/ut8+ased, 3=, 3>W3; /erformance, >:W>>, 5=5, 5=1 /rocess8dri0en, 3=, 3; metrics, 4, 9, 39W43, 525, 5:1. See also -i0e Primar, .lements mista(e /roofing. See Po(a8,o(e mi"8model manufacturing, 5:, 9:W9> one8/iece flow, =5, :5W:3, 539, 53:, 53>, 5=>, 5:>, 124 cell, 0s. +atch and queue, 5>> on8time deli0er,, 5:=, 5:>, 5>1, 5;3, 5;>, 123 o/erational roles and res/onsi+ilities, 14, 32W31 o/erations redesign /rogram, 543W594 order /rocessing, 5: organiGation, 4, 9, 13W33, 4:, 525. See also -i0e Primar, .lements organiGation chart, 512 organiGation conce/t, 512, 515, 514, 519, 51: original equi/ment manufacturers AF.MsB, =1, ;=, 549, 59=, 5;= o0erall equi/ment effecti0eness AF..B, >4 ownershi/. See also /rocess owners realignment of, 1: results, 3=
Pareto diagram, 55:, 533 ParetoMs >2/12 rule, 92 /arts, sorting of, 91. See also A,$, material handling /erformance le0els, ;5, 522 /lanning ca/acit,, 4; ca/acit, control, 4; in8+ound, 4= internal, 4= out8+ound, 4= /riorit,, 4> /riorit, control, 4; /lanning and control function, 4:W4; /lant load /rofiles, 512 /oint of use APFUB, 94 Po(a8,o(e, 5=, >2, >4W>9, 5:> PFU. See /oint of use /riorit, control, 4; /ro+lems, documentation of, >> /rocess ca/a+ilit, A /KB, 5: /rocess control, 4, 9, :;W;2, 525. S ee also -i0e Primar, .lements /rocess c,cle time, 3; /rocess flow, 539 /rocess ma/, =5, =4W==, =>, 51:, 5:> /rocess matri", == /rocess owners, 53, 54, 551, 51=, 54;, 591W593, 5=1, 5=;, 5:1, 5>1, 5>;, 5;2, 5;3 /rocess qualit,, 3; /rocess 0alue anal,sis AP#AB, 51 /roduct alignment, 512 characteristics, =1 /roduct deli0er,, as out/ut measure, 3; /roduct demand anal,sis, 51> /roduct demand +eha0ior, 512, 515, 534 /roduct de0elo/ment, 5: /roduct life c,cles, 59= /roduct qualit,, as an out/ut measure, 3; /roduct/quantit, AP/PB anal,sis, =5, =1W=4
Glossary
995 /roduct8focused res/onsi+ilit,, 14, 1=W1> /roduction loss, 533 /roduct8mi" schedule, 51:
/roDect charter, ;, 52, 525, 514, 5>> sam/le, 521 /roDect management assum/tions, 5> com/onents of, 52 /roDect milestone /lan, ;, 52, 525, 521, 514, 5>>, 5;5, 121 sam/le, 523 /roDect time lines, 592, 5=2, 5:2, 5>5, 5;5, 121 P#A. See /rocess 0alue anal,sis
L R
quic(8hit list, 55> !AA. See res/onsi+ilit,, accounta+ilit,, and authorit, rate8+ased schedule, 9=, 9>, =; release and control, 4: re/eater /roducts, =3, =4, 595, 122, 125 res/onsi+ilit,, accounta+ilit,, and authorit, A!AAB, 52, 1:, 51=, 591, 5>:, 124 return on in0estment A!FIB, 3> roll8through ,ield, 3;, 522, 559 root cause anal,sis, 554 routing anal,sis, =5, ==W=; rules, ownershi/ of, 4: runner /roducts, =3, =4, 595, 122, 125
scheduled time a0aila+le, :2 Sei(etsu, >: Seiri, >= Seiso, >: Seiton, >= self8assessment, :, > ser0ice cells, 95 setu/s, >2, ;5, 539, 125 internal 0s. e"ternal, >5 reductions in, 5>1, 5>= standardiGing, >1 Shitsu(e, >: single8minute e"change of dies ASM.*B, 5=, >2W>1, 53;, 5==, 5:>, 5:;, 5>2, 5>:, 5;> SIPF , 51, 93, 555, 553, 51: SM.*. See single8minute e"change of dies s/aghetti diagram, =9, ==
SP . See statistical /rocess control staffing /roDections, 512 statistical /rocess control ASP B, 5= stoc((ee/ing units ASKUsB, =1, :1, 52> stranger /roducts, =3, =4, 595, 122, 125 suggestion +o", 524, 519 su//lier interface, 553 su//lier /erformance, 54= su//l,8chain management, 549 su//ort, 5=2
"
ta(t time, 54, =5, =;W:5, 51=, 51:, 534, 539, 125 defined, =; designed, 51> 0s. c,cle time, =;, :3, :4 0s. machine time, :5 0s. man time, :5 team candidates, >W; full8time 0s. /art8time, >, 591, 5;3, 123 mo+iliGation of, ; roles, >, ;, 52, 54, 539, 591, 5>;, 5;3 time o+ser0ation form ATF-B, =: total /roducti0e maintenance, 5= total /roducti0e maintenance ATPMB, >2, >1W>4, 53;, 5:>, 5>:, 5;>, 124 t,/es of, >3 TPM. See total /roducti0e maintenance transition strateg,, 51: 99>
unions, 35. See also lean manufacturing@ unions, and
0isual controls, >2, >:W>>, 539 0olume matri", =>, =;
waste, 554, 559, 533, 539, 5;= wor( content matri", ==, =: wor( in /rocess in0entor,, 94, 5>: wor( instructions, >2, >>W;2, 539, 53: wor(a+le wor(, 9>W9; wor(flow management, 4: wor(force /re/aration, 14, 31W33 wor(load +alancing, =5, :5W:3 wor(sho/ training, 592, 5:5, 5>5, 5;1__
Lean
Manufacturing
Applying Manufacturing Execution Systems
by Michael McClellan
Back to Basics: Your Guide to Manufacturing Excellence

By Steven A. Melnyk R.T. Chris Christensen
Enterprise Resources Planning and Beyond: Integrating Your Entire rgani!ation

by Gary A. Langenwalter
ERP: "ools# "ec$ni%ues# and Applications for Integrating t$e Supply &$ain
by Carol A. Ptak with li Schragenhei!
Integral 'ogistics Management: Planning and &ontrol of &ompre$ensi(e Business Processes

by Pa"l Sch#nsleben
In(entory &lassification Inno(ation: Pa(ing t$e )ay for Electronic &ommerce and *endor Managed In(entory
by R"ssell G. Broeckel!ann
'ean Manufacturing: "ools# "ec$ni%ues# and +o, "o -se "$em

by $illia! M. %el&
Macrologistics Management: A &atalyst for rgani!ational &$ange

by Martin Stein an& %rank 'oehl
Restructuring t$e Manufacturing Process: Applying t$e Matrix Met$od

by Gi&eon (alevi
Supply &$ain Management: "$e Basics and Beyond

by $illia! C. Co)acino
The St. Lucie Press/API S Series on !esource Management

"itles in t$e Series
Ale"andria, #irginia
"$e St. 'ucie Press/API&S Series on Resource Management
St. 'ucie Press
$oca !aton % London &ew 'or( % )ashington, *. .
+,
)ILLIAM M. -.L*
Lean
Manufacturing
This +oo( contains information o+tained from authentic and highl, regarded sources. !e/rinted material is quoted with /ermission, and sources are indicated. A wide 0ariet, of references are listed. !easona+le efforts ha0e +een made to /u+lish relia+le data and information, +ut the author and the /u+lisher cannot assume res/onsi+ilit, for the 0alidit, of all materials or for the consequences of their use. &either this +oo( nor an, /art ma, +e re/roduced or transmitted in an, form or +, an, means, electronic or mechanical, including /hotoco/,ing, microfilming, and recording, or +, an, information storage or retrie0al s,stem, without /rior /ermission in writing from the /u+lisher. The consent of St. Lucie Press does not e"tend to co/,ing for general distri+ution, for /romotion, for creating new wor(s, or for resale. S/ecific /ermission must +e o+tained in writing from St. Lucie Press for such co/,ing. *irect all inquiries to St. Lucie Press, 1222 &.). or/orate $l0d., $oca !aton, -lorida 33435. "rademark 0otice: Product or cor/orate names ma, +e trademar(s or registered trademar(s, and are used onl, for identification and e"/lanation, without intent to infringe. 6 1225 +, )illiam M. -eld &o claim to original U.S. 7o0ernment wor(s International Standard $oo( &um+er 589:44481;:8< Li+rar, of ongress ard &um+er 22829;5=3 Printed in the United States of America 5 1 3 4 9 = : > ; 2 Printed on acid8free /a/er
'i1rary of &ongress &ataloging2in2Pu1lication 3ata
?????????????????????????????????????????????????????????????????????? -eld, )illiam M. Lean manufacturing @ tools, techniques, and how to use them / +, )illiam M. -eld. /. cm. Includes +i+liogra/hical references A/. B and inde". IS$& 589:44481;:8< Aal(. /a/erB 5. Production management. 1. osts, industrial. 3. Production management C ase studies. I. Title. TS599 .-4;>9 1222 =9>.9Cdc15 22829;5=3
3edication
This +oo( is dedicated to m, four sons C $enDamin, &athan, Eaco+, and Samuel. Than( ,ou for ne0er letting me forget that I am ,our dad. 5
&ontents
Part I. 3escription of 'ean Manufacturing &$apter 6. 'ean Manufacturing: A 7+olistic8 *ie, ..................................... 3 &$apter 9. 'ean Manufacturing Approac$ ................................................... : Part II. :i(e Primary Elements &$apter ;. rgani!ation Element ................................................................ 13 &$apter <. Metrics Element .......................................................................... 39 &$apter 4. 'ogistics Element ........................................................................ 49 &$apter =. Manufacturing :lo, Element .................................................... =5 &$apter 5. Process &ontrol Element ............................................................ :; &$apter >. Sustaining t$e &$ange ................................................................ ;5 Part III. Putting It All "oget$er &$apter ?. Setting t$e Stage .......................................................................... ;9 &$apter 6@. +o, It Begins ............................................................................ ;; &$apter 66. "$e Game Plan ........................................................................ 525 &$apter 69. 'ean Assessment ..................................................................... 529 &$apter 6;. &urrent State Gap ................................................................... 555 &$apter 6<. :uture State 3esign ................................................................ 55; &$apter 64. 3eployment ............................................................................. 535 &$apter 6=. "$e Results .............................................................................. 53; >
Part I*. &ase Studies &ase Study A: perations Redesign Program .......................................... 543 &ase Study B: Aai!en E(ent2Based 'ean Program ................................... 599 &ase Study &: +ig$2*olume2:ocused :actory ProBect ............................ 5=9 &ase Study 3: Aai!en E(ent2Based :ocused :actory Pilot
..................... 5:9 &ase Study E: Assem1ly Production -nit ProBect .................................... 5>9 &ase Study :: +ig$2*olume and 'o,2*olume &ell ProBect .................... 5;9 Glossary ........................................................................................................ 12: References ..................................................................................................... 15; Index .............................................................................................................. 113
?
Preface
This +oo( was written in order to gi0e the general manufacturing /ractitioner a reference guide +, which to lead the successful design and de/lo,ment of a lean manufacturing /rogram. It is for those indi0iduals who ha0e either tried a lean manufacturing im/lementation and recei0ed undesira+le results or ha0e +een wor(ing at it a while and do not reall, (now what to do ne"t. F0er the ,ears, I ha0e +ecome more and more /ragmatic in m, a//roach to lean manufacturing. I am not a /urist when it comes to methodolog,. In fact, in this +oo( I am sharing with ,ou information +ased on m, own /ersonal research, true8life e"/eriences, and lessons learned through the im/lementation of lean /rinci/les within a num+er of com/anies. It is this +road8+ased e"/erience that has allowed me to de0elo/ such a /ragmatic a//roach. M, e"/erience has taught me that, although a s/ecific /hiloso/h, ma, wor( well with one /articular /roDect or com/an,, it ma, not wor( as well uni0ersall, across other o/erations. The information, time frames, and methodologies contained within this +oo( are geared /rimaril, for o/erations that ha0e 322 to 922 em/lo,ees. The content was written for an audience o/erating at the le0el of /lant manager, /roDect manager, or manufacturing manager within a +usiness, although most certainl, schedulers, /lanners, industrial engineers, and firstline su/er0isors can also +enefit from this material. The +oo( /ro0ides tools and techniques that can +e used for +oth high80olume/low8mi" and low0olume/ high8mi" /roduct en0ironments. Although man, of the techniques are designed for discrete unit manufacturing o/erations, those in the /rocess industries could utiliGe man, of the /rinci/les /resented here, as well. I realiGe that there are some of ,ou who o/erate within an en0ironment that does not require ,ou to Dustif, ,our /osition on lean manufacturing e0er, ste/ of the wa, and that such an en0ironment will acce/t the need for 6@
lean management +ased on faith. This +oo( was not written for ,ou. This +oo( was written for ,our colleagues C those who need to Dustif, their /osition e0er, ste/ of the wa, and must constantl, +attle Hhurdle managementI to de/lo, their lean /rograms. 'ou (now who ,ou are and ,ou (now what I am tal(ing a+out. This +oo( was written with ,ou in mind. &ow, one does not learn how to +e lean Dust from reading a +oo(. It is through actual hands8on im/lementation that one learns what does and does not wor( in most situations. It is out on the sho/ floor where /ractical meets theor,. It is in the actual wor( en0ironment where one learns that to +e successful it is more im/ortant to ha0e a clear understanding of how these
techniques wor( than a 0ague understanding of what the technique is. This +oo( has +een di0ided into four /arts. Part I /ro0ides an e"/lanation of why a holistic a//roach to lean is so +eneficial in securing sustained im/ro0ementJ it /ro0ides an o0erall 0iew of what to do. The /ur/ose of Part II is to furnish the reader with an understanding of the conce/t of the -i0e Primar, .lementsJ it e"/lores in detail se0eral as/ects of each of the fi0e elements. Part III was written in the form of a stor, to de/ict actual use of the techniques from the ince/tion of a /roDect to im/lementation in the factor,J it hel/s the reader see how and when these /rinci/les are a//lied as /art of a lean manufacturing /rogram. Part I# /resents case studies of si" different com/anies that ha0e ta(en on the challenge of changing their +usinesses and descri+es how the com/anies ha0e de/lo,ed lean manufacturing within their facilities. .ach case stud, was designed to re0eal a different as/ect of im/lementing lean manufacturing within an o/eration. The entire +oo( attem/ts to /ro0ide insight as to the choice and use of a//ro/riate tools for assessment, anal,sis, design, and de/lo,ment of a successful lean manufacturing /rogram. Although it does not co0er e0er, lean manufacturing as/ect, issue, or situation, it does offer a road ma/ that can guide a com/an, toward the de0elo/ment of a lean manufacturing en0ironment. F0er the ,ears, I ha0e read a+out, witnessed, and heard of a great man, im/lementations that ha0e neither achie0ed their intended goals nor sustained results. M, e"/erience has led me to conclude that there are se0eral reasons for the demise of these lean manufacturing /rograms@ A5B no clarified e"/ectation or 0ision as to what the new lean en0ironment was to loo( li(eJ A1B lac( of a clear direction as to where to go and what to do ne"tJ A3B limited (nowledge +ase for how to conduct the im/lementationJ A4B significant focus on the mechanics of the new /rocess +ut little attention /aid to organiGation redesign issues connected with the change. These are (e,, critical issues that must +e addressed for an im/lementation to +e successful. The fact that man, com/anies ha0e neglected to do so has led me to write this +oo(.
66
Ackno,ledgments
I would sincerel, li(e to e"/ress m, a//reciation to all the /eo/le and multi/le com/anies with whom I ha0e had the o//ortunit, to wor( o0er the ,ears. I am e"tremel, grateful to a great man, of ,ou for the tremendous (nowledge I ha0e recei0ed during the last 59 ,ears. It is the 0ast di0ersit, of ,our ideas and +usiness situations that has allowed me to ha0e the insight necessar, to write this +oo(. .0en though hundreds of indi0iduals ha0e influenced the writing of this +oo(, I would s/ecificall, li(e to than(@ Phil Parr,, of the $ourton 7rou/, for his man, hours of counsel and guidance during a time of tremendous u/hea0al in m, lifeJ !on Aarns, of $oeing, for allowing me the o//ortunit, to show what is /ossi+le no matter what the im/ending oddsJ Eohn Paul, for gi0ing me the chance to see an entirel, new
glo+al world in a 0er, short /eriod of timeJ *a0id Hall, Eoe ostello, and Mi(e $ell, for their 0alua+le insight, thoughts, and feed+ac( +oth +efore and during the writing of this manuscri/tJ Allie McArth,, for her technical su//ort, ad0ice, and editingJ and most of all I want to than( m, wife, Eulie Ann, for sta,ing the course with me o0er the /ast 59 ,ears of learning, listening, and leading C without her consistent su//ort, this +oo( could not ha0e +een written.
6;
"$e Aut$or
)illiam M. :eld is a client /artner with am+ridge Management onsulting A M B, a di0ision of am+ridge Technolog, Partners. He has nearl, 59 ,ears of industr, e"/erience im/lementing lean manufacturing im/ro0ements and has conducted o0er =2 indi0idual KaiGen e0ents, im/lemented o0er 122 manufacturing cells, and managed se0eral lean manufacturing /rograms AutiliGing man, of the conce/ts descri+ed in the +oo(B for com/anies in a 0ariet, of industries. He has wor(ed in the machining, sheet metal, industrial /roducts, /neumatic tools, aeros/ace, electronics, /ower dri0es, and automoti0e industries. Prior to his wor( with M , $ill was a manager of change management for In0ens,s, PL , where he was res/onsi+le for the de0elo/ment and im/lementation of +usiness change management /rograms for In0ens,s com/anies throughout &orth America. He has +een a /lant manager for Stanle, Mechanic Tools and a manufacturing and materials management consultant for .rnst L 'oung, in addition to s/ending o0er 52 ,ears in the aeros/ace and defense industr, at $oeing Aformerl, Mc*onnell *ouglasB. $ill has also ser0ed as /roDect manager for the im/lementation of se0eral cellular manufacturing /rograms and has /artici/ated in the im/lementation of two M!P II s,stems. He has held multi/le line8management /ositions in manufacturing and materials management. $ill recei0ed his Master of $usiness Administration degree in o/erations management, earned a $achelorMs degree in +usiness administration, and is certified in /roduction and in0entor, management A PIMB with API S. He can +e contacted at A354B 4418;:=> or william.feldNworldnet.att.net.
64
A1out API&S
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3ES&RIP"I 0 : 'EA0 MA0-:A&"-RI0G
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6
'ean Manufacturing: A 7+olistic8 *ie,
)$at Is Meant 1y Holistic D
hat is meant +, the word holistic O Is it meant to im/l, a wellrounded /ers/ecti0eO Is it used to descri+e an o0erall state of wellnessO *oes it mean all8encom/assingO If we chec( the definition according to )e+sterMs .nglish *ictionar,, holistic means Hem/hasiGing the organic or functional relation +etween /arts and wholes.I &ow, none of these definitions of holistic is necessaril, wrongJ howe0er, when associated with our descri/tion of lean manufacturing, the conce/t of holistic is meant to im/l, the interconnecti0it, and de/endence among a set of fi0e (e, elements. .ach indi0idual element is critical and necessar, for the successful de/lo,ment of a lean manufacturing /rogram, +ut no one element can stand alone and +e e"/ected to achie0e the /erformance le0el of all fi0e elements com+ined. .ach of these elements contains a set of lean /rinci/les which, when wor(ing together, all contri+ute to the de0elo/ment of a world8class manufacturing en0ironment, often reflected +, a com/an, in0entor,8turn le0el of 92 or higher. As descri+ed +, Schon+erger in his +oo(,
$orl& Class Man"*act"ring+ The /e0t 1eca&e , in0entor, turns /ro0ide com/ara+le anecdotal e0idence of the le0el of /erformance of a com/an, regardless of changes in economic swings, monetar, /olicies, trade /ractices, or internal com/an, mani/ulations@ H)e need not rel, on case studies or news cli//ings. Fne statistic e"tracta+le from cor/orate annual re/orts tells the stor, with sur/rising accurac,@ in0entor, turno0er Acost of sales di0ided +, on8hand in0entor,B.
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It ha//ens that when a com/an, manages its /rocesses /oorl,, waste in the form of in0entor, /iles u/.I
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&ot onl, are these lean /rinci/les interacti0e and co8de/endent, +ut there is also a fundamental relationshi/ that e"ists among these /rinci/les as to the sequence +, which the, should +e de/lo,ed. So what e"actl, are these fi0e elements and what ma(es them so co8de/endentO
3escription of t$e :i(e Primary Elements

The -i0e Primar, .lements for lean manufacturing are A5B Manufacturing -low, A1B FrganiGation, A3B Process ontrol, A4B Metrics, and A9B Logistics A-igure 5.5B. These elements re/resent the 0arious facets required to su//ort a solid lean manufacturing /rogram, and it is the full de/lo,ment of these elements that will /ro/el a com/an, on a /ath toward +ecoming a worldclass manufacturer. -ollowing is a +asic definition of each of the -i0e Primar, .lements@ ? Man"*act"ring %low+ The as/ect that addresses /h,sical changes and design standards that are de/lo,ed as /art of the cell. ? 2rgani3ation+ The as/ect focusing on identification of /eo/leMs roles/functions, training in new wa,s of wor(ing, and communication. ? Process Control+ The as/ect directed at monitoring, controlling, sta+iliGing, and /ursuing wa,s to im/ro0e the /rocess. ? Metrics+ The as/ect addressing 0isi+le, results8+ased /erformance measuresJ targeted im/ro0ementJ and team rewards/recognition. ? Logistics+ The as/ect that /ro0ides definition for o/erating rules and mechanisms for /lanning and controlling the flow of material. These /rimar, elements /ro0ide full co0erage of the range of issues that surface during a lean manufacturing im/lementation. .ach element focuses on a /articular area of em/hasis and com/artmentaliGes the acti0ities. .0en though each element is im/ortant on its own for the de/lo,ment of a successful lean manufacturing /rogram, the /ower comes from integration of
the elements. -or instance, Manufacturing -low sets the foundation for change. Peo/le see acti0it, on the sho/ floor, furniture +eing mo0ed Asometimes for the first timeB, machines or floors or walls +eing /ainted, and areas +eing cleaned u/. ."citement and energ, surround this 0isi+le change. Add to this the less than 0isi+le changes in infrastructure relati0e to organiGational roles and res/onsi+ilit,, new wa,s of wor(ing, training of /ersonnel, multi8
Lean Man"*act"ring+ A (olistic 'iew
4 function teaming, and identification of customer/su//lier relationshi/s. -inall,, add the 0isi+le /resence of sho/floor measurements reflecting status, equi/ment +eing re/aired, gra/hic wor( instructions +eing /osted at wor( stations, and machine changeo0er times +eing recorded and im/ro0ed. These /rimar, elements com/lement one another and are all required to su//ort each other as /art of a successful im/lementation. Most lean manufacturing initiati0es focus on the /rimar, elements of Manufacturing -low, some on Process ontrol and areas of Logistics. Fnce in a while, there is the mention of Metrics and some discussion regarding FrganiGation, usuall, training. This lac( of attention to the whole is a shame, +ecause it is the culture changes in FrganiGation and the infrastructure im/ro0ements in Logistics that institutionaliGe the im/ro0ements and /ro0ide for sustained change within the organiGation. )hen initiati0es focus on Dust the mechanics and techniques Aindicati0e of +oth Manufacturing -low and Process ontrolB, the im/ro0ement is more a+out calculations and formulas than it is a+out im/ro0ing wor(force ca/a+ilit,. An,one can read a +oo(, run a num+ers anal,sis on demand +eha0ior, calculate ta(t time, and esta+lish a U8sha/ed la,out, +ut doing so is not what will ma(e a com/an, differ from its com/etition. True com/etiti0e ad0antage comes from instilling :igure 6.6 :i(e Primary Elements of 'ean Manufacturing
Manufacturing :lo, 5. Product/quantit, assessment A/roduct grou/B 1. Process ma//ing 3. !outing anal,sis A/rocess, wor(, content, 0olumeB 4. Ta(t calculations 9. )or(load +alancing =. Kan+an siGing :. ell la,out >. Standard wor( ;. Fne8/iece flow Process &ontrol 5. Total /roducti0e maintenance 1. Po(a8,o(e 3. SM.* 4. 7ra/hical wor( instructions 9. #isual control =. ontinuous im/ro0ement :. Line sto/ >. SP ;. 9S house(ee/ing rgani!ation 5. Product8focused, multidisci/lined team 1. Lean manager de0elo/ment 3. Touch la+or cross8training s(ill matri" 4. Training Alean awareness, cell control, metrics, SP , continuous im/ro0ementB 9. ommunication /lan =. !oles and res/onsi+ilit, 'ogistics 5. -orward /lan 1. Mi"8model manufacturing 3. Le0el loading 4. )or(a+le wor( 9. Kan+an /ull signal =. A,$, /arts handling
:. Ser0ice cell agreements >. ustomer/su//lier alignment ;. F/erational rules Metrics 5. Fn8time deli0er, 1. Process lead8time 3. Total cost 4. Pualit, ,ield 9. In0entor, AturnsB =. S/ace utiliGation :. Tra0el distance >. Producti0it,
ca/a+ilit, within the wor(force, and this can onl, +e accom/lished through@ A5B achie0ing demonstrated (nowledge transfer +, +uilding an em/owered wor(force, A1B engaging all em/lo,ees within the +usiness +, steering their collecti0e energies in the same direction, and A3B em/owering the wor(force with clarified e"/ectations, common /ur/ose, and accounta+ilit, to get the Do+ done. An organiGation with this ca/a+ilit, can +e neither co/ied nor +ought +, the com/etitionJ it must +e designed, de0elo/ed, directed, and su//orted. This +oo( focuses on the relationshi/s among each of the /rimar, elements and /ro0ides a Hhow8toI road ma/ for im/lementing lasting change. In order for these /rimar, elements to function /ro/erl,, the, must +e im/lemented in the form of stages or H+uilding +loc(s.I S/ecific foundation /rerequisites must +e met /rior to de/lo,ment of su+sequent stages. The initial stages contain criteria that must +e satisfied +efore im/lementing su+sequent stages. These criteria are li(e the /rerequisites for some college courses. The first8le0el acti0ities must +e com/leted to ser0e as +uilding +loc(s for su+sequent stages. It is im/erati0e that these stages +e followed to a0oid Deo/ardiGing the im/lementation and to assure success in de/lo,ing the lean manufacturing /rogram as quic(l, as /ossi+le for ma"imum +enefit. Part III of this +oo( will identif, those stages and e"/lain the a//ro/riate sequence for im/lementation. Lean manufacturing, as descri+ed in this +oo(, is /rimaril, focused on designing a ro+ust /roduction o/eration that is res/onsi0e, fle"i+le, /redicta+le, and consistent. This creates a manufacturing o/eration that is focused on continuous im/ro0ement through a self8directed wor( force and dri0en +, out/ut8+ased measures aligned with customer /erformance criteria. It de0elo/s a wor(force with the ca/a+ilit, to utiliGe the lean tools and techniques necessar, to satisf, world8class e"/ectations now and into the future. As noted +, onner in Managing at the S)ee& o* Change+ HPeo/le can onl, change when the, ha0e the ca/acit, to do so. A+ilit, means ha0ing the necessar, s(ills and (nowing how to use them. )illingness is the moti0ation to a//l, those s(ills to a /articular situation.I
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#iewing lean manufacturing from a holistic /ers/ecti0e should +e a+le to satisf, the need to ha0e +oth a+ilit, and willingness.
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'ean Manufacturing Approac$
he first ste/ required on this Dourne, toward creating a lean manufacturing en0ironment is to recogniGe where we are currentl,. )e must demonstrate an understanding as to wh, we need to change, and we must determine wh, it is im/ortant that we ma(e a change. )hat are the +usiness dri0ers that ha0e caused this intrusion of lean manufacturing into our li0es and wh, should we care to /artici/ateO Answers to these questions are required in order for /eo/le to +ecome engaged in the change /rocess. How we handle the res/onses to these questions is critical to our success. Moti0ation, tenacit,, leadershi/, and direction all /la, (e, roles in the successful de/lo,ment of a lean /rogram. If we as indi0iduals are not moti0ated to go down this /ath, if we do not ha0e a direction to guide our ne"t ste/s, and we do not ha0e the tenacit, to sta, with the Dourne, when it +ecomes +um/,, we ma, as well not +egin. In order to understand the current situation, we ma, need to conduct a self8assessment that will /ro0ide a sounding +oard or reflecti0e mirror for our o/erating condition as it stands toda,. It will /ro0ide feed+ac( regarding where we currentl, demonstrate ca/a+ilit,, and it will re0eal ga/s +etween how things are +eing done toda, and what are considered to +e sound lean /ractices. To /ro0ide some le0el of insight into this ga/, one need onl, to loo( at the landmar( MIT stud, conducted +, )omac(, Eones, and !oos Asee The Machine That Change& the $orl& B to understand how far some o/erations are from +eing lean. -acilities that are considered lean o/erate with far fewer resources as com/ared to those facilities that o/erate as mass /roducers@ HLean /roduction 0s. mass /roduction@ 5/1 the human effort in
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the factor,, 5/1 the manufacturing s/ace, 5/1 the in0estment tools, 5/1 the engineering hours, 5/1 the time to de0elo/ new /roducts.I
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It is onl, when we are honest with oursel0es as to where we are that /rogress can reall, +egin to ma(e significant change. $enchmar(ing against a defined criteria and determining our /erformance ga/ are wa,s to +egin +uilding a stor, line for wh, we need to change Asee -igure 51.1B. It is this stor, line that must +e communicated to the organiGation in order to win su//ort for a change /rogram. $, the time com/an, leaders come to the conclusion that the, need to change the com/an,, it is usuall, after se0eral months or ,ears of seeing /rofits shrin( through re0enue loss at the to/ line or mar(et share erosion. Usuall,, the, ha0e +een loo(ing at the data and re0iewing the num+ers for quite some time. )hen the, finall, do come to the ine0ita+le conclusion that change is necessar,, these same leaders need to inform the entire organiGation as to the sco/e of what the, are changing and wh,. Fne cannot de/lo, a maDor change such as lean manufacturing and e"/ect it to endure without engaging the entire wor( force. If
one does not /resent a com/elling stor, as to wh, change is necessar,, em/lo,ees are not li(el, to +ecome engaged with the /rogram. This is not to sa, that those initiating the change will ha0e all the answers at this initial /hase A+ecause the, wonMtBJ howe0er, the, should +e a+le to e"/lain wh, it has +ecome necessar, to conduct +usiness in a different manner. After ha0ing gone through the self8assessment and reaching agreement that there is a need for change, the ne"t ste/ is to assem+le a team to design, de0elo/, and de/lo, the lean manufacturing /rogram. There are some general guidelines to follow when selecting a team and formall, launching a /roDect. -irst, the team must +e full timeJ /art8time teams gi0e /art8time results. If this /roDect is not serious enough to launch with full force, do not +other to +egin. Part8time mem+ers are onl, /artiall, dedicated, which means the, ha0e other /riorities and are not com/letel, focused on the tas( at hand. It is +etter to dedicate three /eo/le full time than to staff a team with 51 /arttime resources. Part8time teams sim/l, do not wor(. Second, roles within the team and the wa, in which team mem+ers interact with one another are quite im/ortant. It is im/erati0e that all mem+ers understand their roles on the team and wh, the, were selected for the assignment. )hen assessing /roDect team candidates, it is im/ortant to (ee/ in mind selection criteria and to ha0e an understanding of what attri+utes are required. The following would +e a good starter list of desired attri+utes@ ? F/en minded ? .ffecti0e communicator
? ? !esults oriented ? Self8confident ? !esilient to change ? hallenger of the stat"s -"o ? 7rou/ facilitator ? Trusted Dudgment ? Influential within the organiGation In addition to each team mem+erMs e"/erience and e"/ertise, an indi0idualMs /reference toward ta(ing on a /articular role is an im/ortant factor in the successful outcome of a teamMs a+ilit, to deli0er a /roDect. Meredith $el+inQ has done a significant amount of research in this area and has concluded that team role /reference can ha0e a considera+le im/act as to whether a team will /erform successfull, or not. UtiliGation of his material can /ro0ide some 0alua+le insight into the a//ro/riate ma(eu/ of /roDect teams. After the team has +een selected, the, must +e mo+iliGed. To accom/lish this, the team will need to generate two (e, documents@ a /roDect charter and /roDect milestone /lan. The charter defines the /roDectMs /ur/ose, o+Decti0es, and outcomes. The milestone /lan identifies maDor segments of the /roDect,
the time frame for com/letion, and a sequence of maDor e0ents. The milestone /lan should +e +ased on a lean manufacturing road ma/ A-igure 1.5B, which /ro0ides a common understanding for the team as to s/ecific /hases of the /roDect.
Q Meredith $el+in is a $ritish /rofessor who has conducted nearl, 32 ,ears of research on teams, team d,namics, and de0elo/ing insight into what ma(es successful teams wor( Asee $el+in AssociatesM )e+site@ www.+el+in.comB.
:igure 9.6 'ean Manufacturing Road Map
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In addition to the /roDect charter and milestone /lan, the following elements should also +e considered as necessar, ingredients for the /ractice of good /roDect management@ ? ProDect /rotocol Ateam meeting time, /lace, duration, formatB ? ProDect organiGation Asteering committee, /roDect owner, leader, etc.B ? *efined roles/res/onsi+ilities Afor organiGation structureB ? !is( mitigation management Aidentif,ing and resol0ing /otential ris(B ? HaGard escalation management Arules for ele0ating /ro+lemsB ? ProDect schedule Adeli0era+les, ownershi/, de/endenc,, resourcesB ? Issue log Acatalog of /roDect issues, action, dates, ownershi/B ? ProDect +oo( Ali0ing and historical documents of the /roDectB The team8generated charter and milestone /lans Asee -igures 55.5 and 55.1B /ro0ide the first documented clarification of /roDect e"/ectations for e"ecuti0e management and the /roDect team. These documents are to +e agreed to and signed off on +, all /arties in order to minimiGe the ris( of missed e"/ectations down the road. It is at this time that an announcement should go out to the rest of the organiGation e"/laining what is a+out to ta(e /lace in regard to the lean /rogram. This communication should@ A5B e"/ress the need for loo(ing at doing +usiness differentl,, A1B identif, who ma(es u/ the /roDect team, A3B re0eal the /roDect milestone /lan, and A4B clarif, for em/lo,ees what this /roDect means to them. Fnce the /roDect team has com/leted the initial de+riefing with management, the, are read, to +egin detailing the lean /roDect elements, which would include the /roDectMs deli0era+les Athose 0er, +lac(8and8white, tangi+le /ieces of e0idence that /ro0ide /roof that an acti0it, is com/leteB, the defined wor( content for each of the /roDect deli0era+les with assigned ownershi/ Ares/onsi+ilit,, accounta+ilit,, and authorit,, or !AAB, the esta+lishment of resource staffing requirements, and the teamMs agreement on /roDect management /rotocol. Fnce the team is u/ and o/erating, it is time to get down to +usiness. -or the team, this means wor(ing their wa, through each of the lean road ma/ /hases. The first /hase, that of Lean Assessment A-igure 1.1B, is used to determine how the o/eration stac(s u/ area +, area and /roduct grou/ +, /roduct grou/ from a lean manufacturing /ers/ecti0e. In this /hase, the team tries to understand where areas of o//ortunit, and le0erage /oints e"ist within the +usiness. The, +egin +uilding the stor, line for not onl, wh, the +usiness needs to change +ut also where and how much. This assessment
loo(s at /rocess /erformance issues relating to the -i0e Primar, .lements +, identif,ing waste or HmudaI o//ortunities that e"ist within the +usiness.
66 In addition to the internal search for o//ortunit,, the outline of a manufacturing strateg, is de0elo/ed in order to assure alignment of the lean initiati0es with the mar(et/lace and to /ro0ide insight for the a//ro/riate design criteria that are to +e utiliGed in /hase three, -uture State *esign. As Hunt clarified in Process Ma))ing+ (ow to Reengineer 4o"r B"siness Processes , it is necessar, to understand the customerMs /erformance e"/ectations +efore designing a solution@ HTo sim/lif, ,our /roduct and /rocess s,stems design, the /rocess im/ro0ement team must first understand the customerMs real requirements and /riorities.I
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This manufacturing strateg, outline will identif, which /roducts com/ete in what mar(ets and wh,. It also e"/lores maDor com/etitors to understand the com/etiti0e criteria required for certain mar(ets and determines where the team needs to le0erage the change /rogram to gain alignment with the current and desired customer +ase. 7unn em/hasiGed this in his +oo(, Man"*act"ring *or Co!)etitive A&vantage+ Beco!ing a $orl& Class Man"*act"rer @ HIt is im/erati0e to ascertain to the e"tent /ossi+le how effecti0el, the com/etitors can manufacture /roducts.I
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$, aligning with mar(et/lace requirements, the /ro+a+ilit, of le0eraging +ottom8line +enefit for the +usiness increases tremendousl,. After Lean Assessment is com/lete, a second de+riefing is conducted with e"ecuti0e management to re/ort the findings and gain a//ro0al to mo0e on to the ne"t /hase, that of documenting the urrent State 7a/ A-igure 1.3B. The urrent State 7a/ /ro0ides the +aseline measure of where the com/an, is toda,. In this /hase, the team@
:igure 9.9 P$ase 6: 'ean Assessment
'ean Manufacturing Implementation E (er(ie,F 'ean Manufacturing Performance Assessment
E&urrent State PerformanceF
Manufacturing Strategy
E&ompetiti(e &riteria/Market SegmentationF
Management 3e1riefing 6 day 9G< days 9G< days 6 day
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? !ecei0es training in /rocess 0alue anal,sis AP#AB, lean manufacturing /rinci/les, and lean anal,sis tools ? .sta+lishes /rocess lin(ages through material and information flow ma//ing ? Puantifies where o//ortunities e"ist for waste elimination ?
7enerates design criteria +ased on the mar(et/lace ? reates a SIPF Asu//lier8in/ut8/rocess8out/ut8customerB ma/ of all the maDor o/erational /rocesses in order to understand customer/su//lier relationshi/s and required in/uts and out/uts that trigger these /rocesses ? Anal,Ges current /erformance le0els in regard to /roduction loss function and waste elimination o//ortunities in order to /rioritiGe im/lementation sequence and address ris( ? *e0elo/s a Hquic( hitI list for short8term im/ro0ements and esta+lishes a +aseline for demonstrated im/ro0ement If this last item is gi0en a//ro0al +, e"ecuti0e management, the shortterm im/ro0ements will +e de/lo,ed as /art of the third /hase. This would allow the com/an, to +egin realiGing +enefits quic(l, and to initiate selffunding of the change /rogram. In addition, it allows /eo/le to see action and results right awa,. After in0esting 3 to = wee(s to gain an understanding of the current state and to confirm that understanding with the maDor /rocess owners, a management de+riefing is conducted to inform e"ecuti0e management as to what was disco0ered. ."ecuti0e management a//ro0al allows rite of /assage to the third /hase, which is focused on the -uture State *esign A-igure 1.4B. In the -uture State *esign /hase, the /roDect team /uts together an o0erall conce/t
:igure 9.; P$ase 9: &urrent State Gap
'ean Manufacturing and P*A "raining &urrent State Mapping
Ematerial/information flo, and SIP &F
Root &ause Analysis
Eloss function and issue/element matrixF
Management 3e1riefing ;26/9 days 6G; ,eeks 6G9 ,eeks 9 days
6; design of how the site should o/erate. This /rocess will ta(e a//ro"imatel, 1 to 3 wee(s and includes@ ? *etermining what /roduct grou/ings e"ist and how the, would +e /roduced ? 7enerating a general organiGation structure ? Producing a +loc( la,out for the /lant ? Anal,Ging /roduct demand +eha0iors and material/information flow ? Pro0iding team training for the o0erall o/erations management structure A/ossi+l, including site 0isits to other lean o/erationsB and e"/osure to different manufacturing architectures ? onfirming the conce/t design with maDor /rocess owners ? *e0elo/ing a new demand management /rocess for logistics Aorder
launch to /roduct deli0er,B The teamMs conce/t design is /resented to e"ecuti0e management for re0iew and a//ro0al. )hen +lessed, the team focuses the ne"t 3 to 4 wee(s on the second half of /hase three, the de0elo/ment of a detail design. The outcomes of this detail design include@ ? Sho/floor staffing /lans ? ell wor(load anal,sis ? Transition strateg, ? Im/lementation /lan ? *efined e"it criteria
:igure 9.< P$ase ;: :uture State 3esign
perations Management "raining EManufacturing ModelsF &oncept 3esign Management 3e1riefing Plant &ommunication 6/9 day 6G9 ,eeks 6 day 9G; ,eeks 6 day 9 days Management 3e1riefing 3etail 3esign
Eimplementation plan and transition strategyF
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? Sho/floor organiGation roles and res/onsi+ilities ? onfirmation of the detail design with maDor /rocess owners ? Sho/floor training /rogram ? ommunication /rogram This /ac(age is /resented to e"ecuti0e management for a//ro0al. U/on agreement as to the lean /rogram rollout, a communication regarding the im/lementation /lan should go to all em/lo,ees e"/laining what was disco0ered, who was in0ol0ed, what was decided, where the organiGation is going, and where all em/lo,ees fit in. It is at this time that the /roDect team mo0es into the fourth /hase, Im/lementation. &ow that the team has s/ent the last ; to 59 wee(s on assessment, anal,sis, design, and /lanning, it is time for the real action to +egin. The in0estment in time and resources s/ent u/ front to understand the current /rocess and design the future state can now quic(l, /a,off. It is through the definition of a design criteria, the descri/tion of mar(et/lace and customer 0alue o//ortunities, and the esta+lishment of im/ro0ement initiati0es around /roduct grou/ings that alignment of the lean manufacturing /rogram will le0erage ra/id +enefits during de/lo,ment. This logic is similar to that descri+ed +, )omac( and Eones in Lean Thinking+ Banish $aste an& Create $ealth in 4o"r 2rgani3ation @ HA firm might ado/t the goals of con0erting the entire organiGation
to continuous flow with all internal order management +, means of a /ull s,stem. The /roDects required to do this might consist of@ A5B reorganiGing around /roduct families, with /roduct teams ta(ing on man, of the Do+s of the traditional functionsJ A1B creating a Rlean functionM to assem+le the e"/ertise to assist the /roduct teams in the con0ersionJ and A3B commencing a s,stemic set of im/ro0ement acti0ities to con0ert +atches and rewor( into continuous flow.I
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The im/lementation of manufacturing cells is now conducted though a series of stages 0ia HKaiGen e0ents.I These stages ser0e as +uilding +loc(s and set the foundation for su+sequent stages A-igures 1.9 and 1.=B. -or e"am/le, im/lementation of the first stage includes@ ? .sta+lishing the +aseline cell design ? $alancing the cell to ta(t time ? *ocumenting the standard wor( content ? .sta+lishing 0isual controls ? reating the o/erating rules ? Introducing intra8cell material /ull ? *efining team roles and res/onsi+ilities
64 :igure 9.4 Implementation Met$odology :igure 9.= 'ean Manufacturing Principles 6=
)hen the one8wee( KaiGen e0ent is o0er, the second wee( is s/ent twea(ing the /rocess and allowing for adDustments. This is due to the fact that not e0er,thing can +e im/lemented in its final form during the first wee(. After a+out = wee(s of o/eration, the /rocess should +e sta+iliGed and /erforming at targeted /erformance le0els. At this /oint, a lean manufacturing audit Asee -igure 51.4B should +e conducted to ma(e sure the im/lementation is e"hi+iting lean manufacturing characteristics and has demonstrated a significant change in /erformance A-igure 1.:B. Fnce the cell is /erforming at the desired le0el and has /assed the audit, the cell team is allowed to /ursue the second stage, which is de/lo,ed in the same manner as stage oneJ howe0er, this stage focuses on@ ? !a/id utiliGation of single8minute e"change of dies ASM.*B ? .sta+lishment of a formal total /roducti0e maintenance ATPMB /rogram ? Incor/oration of Po(a8,o(e de0ices ? UtiliGation of statistical /rocess control ASP B ? Team mem+er cross8training ? UtiliGation of continuous im/ro0ement tools
? *e/lo,ment of inter8cell /ull s,stem Again, there is a =8 to :8wee( /eriod for sta+iliGation to ensure that desired /erformance le0els are +eing achie0ed and to conduct a formal audit. Fnce the second stage is com/leted, the cell team qualifies for ad0ancement to the
:igure 9.5 Expected Benefits
65 third and final stage, which is reall, where world8class /erformance ca/a+ilities are achie0ed through the cellMs ca/a+ilit, to@ ? Perform mi"8model manufacturing ? *eli0er ma(e8to8order /roduction ? on0ert to a one8le0el +ill of materials A$FMB ? Ta(e ad0antage of finished8goods 0ariation techniques ? Su//ort fle"8fence demand management ? UtiliGe material +ac(flushing ? onduct a failure mode and effects anal,sis A-M.AB ? alculate /rocess ca/a+ilit, A /KB ? ontri+ute to the assessment of /roducts through design for manufacturing/ assem+l, A*-MAB /rinci/les -or /ur/oses of ris( mitigation, the first cell needs to +e de/lo,ed as a /ilot cell, where o0er 92S of all lessons learned are o+tained. a/turing those lessons learned and utiliGing them during the de/lo,ment of su+sequent /roduction cells is in0alua+le. As each cell is im/lemented and +ecomes selfsustaining, loo( to lin( indi0idual /roduction cells together through customer/ su//lier alignment with inter8cell Kan+ans. It is im/ortant to ma(e sure that indi0idual cells are sta+le +efore interconnecting them with other cells. If the, are not, the internal su//l, chain is /ut at ris(. Fnce 92S of the /roduction cells are in stage two and well on their wa, toward self8sustaining im/lementation, it is time to ta(e the focus of the /roDect team off the sho/ floor and to +egin to /ursue im/ro0ements in other areas of the +usiness. This is in (ee/ing with the ad0ice gi0en +, Imai in Ge!ba 5ai3en @ H7em+a KaiGen +ecomes the starting /oint for highlighting inadequacies in other su//orting de/artments and identifies s,stems and /rocedures that need to +e im/ro0ed.I
51
The first area to address, therefore, would +e that of customer interface for order /rocessing and demand management. $, this time in the /roDect, enough im/ro0ement has +een demonstrated on the sho/ floor that it is time for the team to wor( its wa, down the 0alue stream toward the customer +ase. The second area of focus would +e that of /roduct de0elo/ment. &ow that the sho/ floor has a greater understanding of its ca/a+ilit,, the, can
deli0er e"tremel, 0alua+le insight into /roduct designs and also contri+ute to the new /roduct de0elo/ment /rocess. The third area of focus would +e redesign of the organiGation from where it is now to something that is more reflecti0e of the new manufacturing architecture, where form would +egin to follow function. The fourth area would +e that of the e"ternal su//l, +ase. 6>
&ow that a solid wor(ing model e"ists inside the factor, and confidence has +een gained in using the lean tools and techniques, it would +e a//ro/riate for the /roDect team to wor( u/ the 0alue stream toward the su//lier +ase. .0en though these initiati0es are listed in a serial manner, the, can +e addressed in /arallelJ howe0er, that is onl, recommended with a word of caution. A com/an, has onl, so man, resources and realisticall, cannot address more than three to fi0e com/an,8wide initiati0es at an, one time. In addition, if lean manufacturing cannot +e demonstrated at ,our own facilit,, it would not +e wise to e"/ect a customer or su//lier to Dum/ on +oard unless the, ha0e alread, +een conducting lean manufacturing initiati0es within their facilities. Some acti0ities can +e done in /arallel, +ut +e aware of ca/a+ilit, surrounding the entire su//l, chain. !emem+er that a chain is onl, as strong as its wea(est lin(. Ingersoll .ngineers, in Making Man"*act"ring Cells $ork, /ro+a+l, +est summariGed this o0erall a//roach to lean manufacturing@ HThe greatest +enefits are realiGed quic(l, in com/anies that include all affected functions from the +eginning of the fle"i+le manufacturing cell A-M B /roDect. T ells sim/l, donMt wor( well, if at all, when the, are not /art of an o0erall strateg, of change underta(en +, their users. ells standing alone are worthless. The, are isolated islands remote from the rest of the world.I
53
-or an, /roDect team to +e successful, a num+er of /roDect management assum/tions are required A-igure 1.>B. The one final question that remains for management to address to ensure a successful conclusion to the lean manufacturing /rogram is HAre ,ou willing to do what it ta(es to +ecome a world8class manufacturing organiGationOI A-igure 1.;B. If management is not willing to commit to these issues, then it is not recommend that the, /ursue de/lo,ment of a lean manufacturing /rogram. If these (e, ingredients are not /resent within the s/irit of the o/eration, the im/ro0ement initiati0e will struggle se0erel, and often time result in failure.
:igure 9.> ProBect Management Assumptions
H H H H H H "$e "$e "$e "$e "$e "$e proBect proBect proBect proBect proBect proBect ,ill ,ill ,ill ,ill ,ill ,ill 1e gi(en t$e time necessary to deploy. 1e gi(en resources Efunds and peopleF. 1e gi(en a full2time/focused team. 1e gi(en clear expectations. $a(e an identified management sponsor. $a(e access to management guidance.
6? Part I of this +oo( has /ro0ided insight into the o0erall as/ects of a holistic lean manufacturing /rogram and has demonstrated how to set u/ and manage a lean /rogram. Part II will descri+e in greater detail each as/ect of the -i0e Primar, .lements of lean manufacturing. :igure 9.? 7Are You )illing "oID8
H &an you impact production for 6 ,eekD 9 ,eeksD ; ,eeksD H &an you dedicate ; to > people for = to ? mont$sD
H &an you endure failure and mistakes 1efore success and impro(ed performance are fully reali!edD H &an you pro(ide commitment# e(en ,$en you do not see maBor results after 9 mont$sD H &an you $old t$e course for 6> to 9< mont$sD
II
:I*E PRIMARY E'EME0"S
9;
;
rgani!ation Element
ost /roDect managers recogniGe that culture is one of the toughest things to change in an, com/an,. $, definition, a com/an,Ms culture is Hthose acti0ities that go on within a com/an, when management is a+sent.I A com/an,Ms culture contri+utes significantl, in the formation of an organiGationMs +eha0ior and can +e difficult to alter. $eha0iors that relate s/ecificall, to a com/an,Ms informal o/erating s,stem ha0e usuall, +een culti0ated o0er man, ,ears and ma, not su//ort or align with new continuous im/ro0ement initiati0es. A lean manufacturing im/lementation cannot sur0i0e within an old culture that does not su//ort a new o/erating en0ironment. Man, questions are as(ed +, management and em/lo,ees ali(e when facing a lean manufacturing im/lementation with its newl, de0elo/ed res/onsi+ilities. )ho has ownershi/ for /roductsO )hat ha//ens when a /roduct lea0es the cellO Is our touch la+or wor(force cross8trained sufficientl, to o/erate in a lean en0ironmentO )hat does a cell mean to our com/an,O *o we in0ol0e the unionO *o we alread, ha0e cell leaders, or should the, +e inter0iewed and selectedO )ho re/orts to the cell leaderO )hat is the role of a cell leaderO Is it Dust touch la+orO Is it /roduction controlO Is it /roduction engineersO Is it qualit, ins/ectionO All of the a+o0e are e"cellent questions and are usuall, o0erloo(ed when a lean manufacturing im/lementation is limited to equi/ment rearrangement and sho/floor la,outs. There are o0er a doGen different cultural issues in0ol0ed with these questions, and an, one of them can sto/ an im/lementation dead in its trac(s. Most factories toda, still require human resourcesJ therefore,
M
9<
/eo/le /la, an instrumental role in the success or failure of factor, im/ro0ement initiati0es. Man, initiati0es ha0e failed due to the neglect of these cultural issues. So how does one handle this influ" of cultural8related questionsO )hat methods are utiliGed to tac(le these issuesO To address these questions in a logical manner, indi0idual areas ha0e +een identified for discussion here@ 5. ommunication Planning 1. Product8-ocused !es/onsi+ilit, 3. Leadershi/ *e0elo/ment 4. F/erational !oles and !es/onsi+ilities 9. )or(force Pre/aration
&ommunication Planning
H)hatMs in it for me and where do I fit inOI If ,ou want to get /eo/leMs attention, nothing /iques their interest more than threatening their Do+s or changing the wa, in which the, do their wor(. *o not (ee/ them in the dar( a+out the /ro/osed changes. -ear is the human emotion that (ee/s us alert during times of duress and (ee/s us ali0e in situations of great danger. -ear is a moti0ator. )hen indi0iduals are threatened +, actions that ha0e the /otential to im/act their li0elihood, the, /rotect and tr, to /reser0e those things o0er which the, ha0e control and fend off those o0er which the, do not. Thus, it is +est not to generate fear of an initiati0e +efore it e0en gets off the ground. *e0elo/ a communication /lan that is focused at three le0els within the organiGation, and tailor the content and su+Dect matter to each A-igure 3.5B. UtiliGe 0arious forms of media to distri+ute the message and /ro0ide a clear understanding
:igure ;.6 &ommunication Planning +ierarc$y
Executi(e 'e(el: Education
EBriefing# ProBect Re(ie,s# Site *isits# 3emonstrations# Seminars# etc.F
Middle Mgt. 3e(elopment: "raining -pdate t$e Masses: Information 2rgani3ation le!ent
EPresentations# Status Reports# Skills "raining# :ace2to2:ace Interactions# etc.F E0e,sletter# "o,n +all# &ommunication Boards# Meeting 0otes# &ulture "esting/:eed1ack# etc.F
94 a+out what is required for each audience. ."ecuti0e management requires understanding and the a+ilit, to a//ro0e. Middle management needs a significant amount of education and training. The masses require 0alidation and assurances that the, are included in the /roDectMs de/lo,ment. )hen /resenting the /lan to the different le0els within the organiGation, ma(e sure the following four questions are answered as a /art of the communications A-igure 3.1B@ 5. )h, are we changingO 1. )hat are we changingO 3. )here are we nowO 4. )hatMs in it for meO
h! Are
e Changing"
Put together a /resentation that is a//lica+le to all em/lo,ees in the organiGation. It should +e a relati0el, high8le0el +riefing that@ 5. *escri+es wh, the +usiness is ma(ing a change in this direction A+usiness en0ironment, com/etiti0e /osition, mar(et o//ortunit,, etc.B
:igure ;.9 Aspects of &ommunication Planning
9=
1. ."/lains how 0arious em/lo,ees will fit into the new en0ironment Awho could +e affected, le0els of management, /otential role changes, etc.B 3. larifies o/erational e"/ectations Ae.g., 39S im/ro0ement in o/erational /erformance, 11S increase in mar(et share, 5>S reduction in total costsB
hat Are
e Changing"
Show an o0erall /roDect /lan that addresses such issues as +udget Awhere the mone, is coming fromB, im/lementation schedules, maDor milestones, and areas in0ol0ed in the de/lo,ment.
here Are
e #o$"
*escri+e the stage of the game at which the /roDect is currentl, residing. Pu+lish a regular newsletter or e8mail for the sho/ floor and office en0ironment to (ee/ /eo/le u/ to date with how the im/lementation is /rogressing.
hat%s In It for Me"

Address the following issues from the /ers/ecti0e of the indi0idual em/lo,ee@ 5. )here do I fit into the new organiGationO 1. How will this change affect the wa, I /erform m, Do+O 3. How do I +enefit or 0alue from this changeO Addressing these four questions will +egin to engage /eo/le with the change /rocess and hel/ secure their in0ol0ement o0er the long haul.
Product2:ocused Responsi1ility
Thin( a+out ,our own organiGation for a minute and as( ,ourself this question@ If a customer called toda, and as(ed who in ,our organiGation was res/onsi+le for the qualit, and deli0er, of /roduct <<85314, what would ,our answer +eO If there is a deli0er, /ro+lem, do we turn to /roduction controlO If there is a qualit, /ro+lem, do we turn to ins/ectionO If there is a /roduct cost issue, do we inquire with accountingO Using such logic to sol0e these
2rgani3ation le!ent
95 /ro+lems can +e attri+uted to the e0er8/o/ular Hfunctional organiGation.I .0er,one has a /iece of the action +ut no one has res/onsi+ilit, for the whole, e"ce/t /erha/s at the /lant manager le0el. As( ,ourself, is the /lant manager the a//ro/riate /erson to +e addressing s/ecific questions a+out /roductsO ShouldnMt the /eo/le with assigned res/onsi+ilit, for the /roduct +e answering questions a+out the /roductO The answer is ,es. 'es, the, shouldU According to Schon+erger in $orl& Class Man"*act"ring+ The Lessons o* Si!)licity A))lie& , this /oint is e"tremel, im/ortant for reducing infighting and waste in the /rocess@ H)orld lass Manufacturing A) MB requires organiGing for quic( flow and tight /rocess8to8/rocess and /erson8to8/erson lin(ages. The o0erriding goal is to create res/onsi+ilit, centers where none e"isted +efore. )hen res/onsi+ilit, centers are o/erating, the /rocrastinating, finger8/ointing, and ali+iing fadeJ the stage is set for con0ersion to a culture of continuous im/ro0ement.I
5=
How, then, does one +ring a+out this realignment of ownershi/O This realignment can +e achie0ed +, addressing three as/ects of lean manufacturing@ 5. *e0elo/ing a res/onsi0e material and information flow infrastructure ALogisticsJ see ha/ter 9B 1. *esigning a fle"i+le manufacturing architecture AManufacturing -lowJ see ha/ter =B 3. Transitioning ownershi/ through the conce/t of em/owerment All of these as/ects were referred to +, Mahone, in (igh6Mi0 Low6'ol"!e Man"*act"ring @ H.m/lo,ee /artici/ation and em/owerment are results of the /roduction situation. Attem/ts to em/ower the wor(force and o+tain continuous qualit, im/ro0ement without a sound underl,ing s,stem of su//ort are doomed to failure.I
54
The o0erriding /remise here is that the res/onsi+ilit, for decisions and accounta+ilit, for /erformance are delegated to em/lo,ees in a gi0en cell when the, ha0e the a//ro/riate le0el of training, tools, and techniques +, which to em+race this new ownershi/. A critical change required to su//ort this realignment of ownershi/ is to ma(e it clear that cells are formed around /roducts and /roducts are the res/onsi+ilit, of cell mem+ers under the direction of a cell leader. The cell team has res/onsi+ilit,, accounta+ilit,, and authorit, A!AAB for /roduct qualit,, deli0er,, cost, and an, other element or as/ect of that /roduct that is assigned to the cell le0el. .ach cell should +e /ro0ided with the resources 9>
necessar, to carr, out this mission. That does not mean that e0er, organiGationMs cells will loo( or +e staffed in e"actl, the same manner, +ut it does mean that each com/an, will assign the a//ro/riate cell resources to match their gi0en !AA. An organiGationMs siGe, le0el of manufacturing /rocess com/le"it,, le0el of cultural maturit, in terms of em/owerment, etc. are all factors in determining the ma(eu/ of cell organiGation structures. At a minimum, the cell should +e staffed with a dedicated cell leader Awho could manage more than one cellB, identified touch la+or /ersonnel, and an, required su//ort resources Ae.g., /roduction control, /roduction engineers, qualit, /ersonnel, maintenanceB necessar, to carr, out the mission of the cell team. It ma, +e fiscall, /rudent to dedicate su//ort /ersonnel to more than one cellJ howe0er, each organiGation will ha0e to determine a +est fit for their own o/eration. Some organiGations ha0e esta+lished a two8tier structure in which the da,to8 da, acti0ities Athose occurring within 5 to 32 da,sB are handled at the sho/floor le0el and the month8to8month acti0ities Athose within =2 to ;2 da,sB are managed at a le0el a+o0e the sho/ floor. This di0ision of la+or allows for the se/aration of resources for /lanning and e"ecution. !esources a+o0e the sho/ floor can concentrate on /re/lanning and /ro+lem /re0ention without +eing consumed with firefighting ta(ing /lace on the sho/ floor. The dedicated sho/floor resources can focus their energies on the /roduct and e"ecuting da,8to8da, requirements. In order for indi0iduals and teams to +e successful in an em/owered en0ironment, a few ingredients are required A-igure 3.3B. If /eo/le are gi0en
clear e"/ectations, the /ro/er en0ironment in which to concentrate, minimal interru/tions, immediate and direct feed+ac(, challenging goals, and the s(ills necessar, to /erform their Do+s, /ositi0e /erformance results will +e generated. )hen management creates this en0ironment and nurtures these conditions, em/owered, self8directed teams can flourish.
:igure ;.; "o Be Successful# People )antI
H H H H H H A clear o1Becti(e 0eed for intense concentration 'ack of interruptions &lear and immediate feed1ack Sense of c$allenge Skills ade%uate to perform t$e Bo1
2rgani3ation le!ent
9?
'eaders$ip 3e(elopment
As( ,ourself, HAre the sho/ foremen I ha0e running m, sho/ floor toda, the leaders I want o/erating cells within m, lean manufacturing en0ironment of the futureOI This is a 0er, difficult question for man, /lant managers to answer +ecause the, ha0e to determine whether the Hdown in the trenchesI frontline su/er0isors who ha0e gotten the organiGation where it is toda, are qualified to ta(e it to the ne"t higher le0el of /erformance for tomorrow. )hen an im/lementation considers onl, the /h,sical as/ects of a lean manufacturing /roDect, this idea of /ro/er leadershi/ is ne0er addressed. In order for a wor(force to +e trul, em/owered, it must first +e equi//ed with the a//ro/riate management s(ills and (nowledge that will ena+le it to set its direction, maintain control o0er its destin,, and sustain continuous im/ro0ement after the initial im/lementation team is long gone. This does not ha//en +, Hteaching an old dog new tric(s.I This is not to sa, that sho/ foremen are not ca/a+le of leading and managing cellsJ howe0er, a com/an, that is transforming to a lean en0ironment is esta+lishing new mini8+usinesses, not new factor, de/artments. )e are not Hrearranging the dec( chairsI in this new en0ironment. )e are loo(ing for leaders who can /lan acti0ities, set o+Decti0es, manage more than Dust tas(8+ased wor( assignments, and recogniGe cause8and8effect relationshi/s relati0e to /roduct cost. These are not /ositions to +e filled +, indi0iduals who ha0e +een /romoted u/ the ran(s +ecause of e"cellent sho/ (nowledge. These are +usiness managers who could 0er, li(el, +e required to interface with outside customers and su//liers. As stated +, To+in in Re6 &"cating the Cor)oration+ %o"n&ations *or the Learning 2rgani3ation @ HFrganiGations are +ecoming flatter, with fewer le0els se/arating the to/ officers of the com/an, from the lowest le0els. T)or( teams, whether within a single function or cross8functional, are +ecoming (e, organiGational units. The, are +eing gi0en more and more res/onsi+ilities that used to +elong to higher le0el managers C from /ro+lem sol0ing to hiring to ma(ing ca/ital in0estments.I
14
#iewing the situation in this light, who do ,ou want ,our ne"t cell/+usiness unit leaders to +eO How do ,ou find these future leadersO Man, of them currentl, wor( in the factor, or at least within the com/an, toda,. onsider, the ne"t time ,ou are in a meeting that includes em/lo,ees from 0arious functions across the +usiness, who is e"hi+iting the following characteristics or management s(ills@ /lanning, leadershi/, /ro+lem8sol0ing a+ilit,, team +uilding, technical com/etenc,, and inter/ersonal communication. These are the /eo/le ,ou are
loo(ing for to fill leader roles. These are the /eo/le who will challenge the stat"s -"o . These are the /eo/le who will wor( with their direct re/orts to ;@
accom/lish a set of gi0en o+Decti0es. Howe0er, if ,ou cannot readil, see and identif, such /ersonnel, do not des/airJ there is still ho/e. $, de0elo/ing and de/lo,ing a formal selection and assessment /rocess, a com/an, can utiliGe a structured framewor( +, which to select future cell leaders A-igure 3.4B. It is highl, recommended that some form of a formal /rocess +e used in the selection of cell leaders for three reasons@ A5B the human resources de/artment should +e a+le to (ee/ ,ou out of hot water on the numerous legal issues surrounding em/lo,ee discriminationJ A1B ,ou and the new cell leaders will +e a+le to identif, a training /lan for those s(ills that are required for the /osition ,et are lac(ing at the time of selectionJ and, most im/ortantl,, A3B ,our new leaders will +e selected out of a field of their /eers. The, ha0e +een singled out as the H+estI to fill this new /osition and will now directl, +e hel/ing the com/an, succeed with this new direction. )hat could +e more rewarding for a self8moti0ated indi0idual who has the desire to lead than to ha0e his leadershi/ qualities recogniGed through a formal assessment /rocess and to +e selected to manage a cellO )hen this highl, moti0ated /erson, with leadershi/ and team8+uilding s(ills, is em/owered to organiGe his team and set a course for continuous im/ro0ement, there will +e no limit to what this team can accom/lish.
perational Roles and Responsi1ilities

&ow that we ha0e a cell leader and ha0e assigned team mem+ers, we should +e read, to mo0e on to the ne"t cell, rightO )rongU *o ,ou thin( that within
:igure ;.< &ell 'eader Selection Steps
&ommunicate t$e need and expectations for cell leader candidates Pro(ide information a1out t$e ne, position +a(e candidates pro(ide a selfassessment and skills analysis Identify skill gaps# select cell leaders# de(elop training plan &onduct formal group inter(ie,s of candidates Assess candidate responses and select for inter(ie,
2rgani3ation le!ent
;6 this new wor(ing en0ironment the traditional functional roles will remain unchanged and unaffectedO The roles and res/onsi+ilities of +oth touch la+or and su//ort /ersonnel will +e altered. Some /ositions will +e changed more than othersJ nonetheless, the, all will +e different. The cell teams should +e staffed with the minimum, fle"i+le resources necessar, for them to meet all o/erational /erformance o+Decti0es. This will almost certainl, 0ar, from cell to cell and com/an, to com/an,, +ut the fact remains that we are all doing more with less in this increasingl, com/etiti0e glo+al world of manufacturing. In light of this, the num+er one com/etiti0e wea/on that comes to mind is fle"i+ilit,J therefore, /lan on staffing the cell with at least the minimum it needs to sur0i0e and allow continuous im/ro0ement to +ecome a moti0ator. If the cell is de0elo/ed with an o0erstaffed design, then when im/ro0ements
are generated /eo/le will immediatel, need to +e remo0ed from the cell to address /roducti0it, o+Decti0es. )hen o/erating within a union en0ironment, +e sure to include local union management /artici/ation during these design efforts. There will +e issues that arise when o/erating in a union en0ironment that do not arise in a non8union en0ironment. The (e, to im/lementing lean manufacturing in a union en0ironment is o/en and direct communication. How well the need for change and defining HwhatMs in it for meI are communicated to the organiGation at the launch of the /roDect can go a long wa, toward reducing conflict at this Duncture. &umerous issues will arise when dealing with contract la+or, such as fle"i+ilit, across la+or classifications, a limit to Hindi0idual Do+I contract language, method of /a,, ,ears of seniorit,, +um/ing rights, o0ertime allocation rules, etc. It is not that lean manufacturing cannot +e im/lemented in a union o/eration Asee case studiesBJ it Dust requires additional considerations. onflict resolution through Doint /ro+lem8sol0ing is critical to o0ercoming union and com/an, management issues. Limiting disagreements to the facts and not o/inions, agreeing on the direction to +e ta(en and /erformance le0els the com/an, needs to achie0e to sur0i0e and grow, and Doint /ro+lem8sol0ing to achie0e those +usiness results can significantl, influence how far a lean manufacturing im/lementation will go and how quic(l,. The first ste/ in determining the roles and res/onsi+ilities of a cell team is to esta+lish an agreed8u/on focus Ai.e., mission or charterB for the entire team on which the, will concur and can channel their collecti0e energies. This will allow the team to determine the functions required to ma(e the cell wor(. The second ste/ is to assign which functions the cell team mem+ers should and should not do. This is achie0ed +, ma//ing out the o/eration, assigning res/onsi+ilities, and identif,ing the ga/s. The third ste/ is the ;9
de0elo/ment of an o/erational descri/tion or functional s/ecification that defines the required tas(s and res/onsi+ilities. Fnce the functions required to o/erate the cell ha0e +een agreed u/on, team mem+ers for each indi0idual Do+ function can write s/ecific roles. This will not onl, hel/ to eliminate the gra, areas of functional res/onsi+ilit,, +ut it will also clarif, for the human resources de/artment what the new Do+ descri/tions are so the, can utiliGe this documentation to sort out different /a, grades and title changes. In addition, +, in0ol0ing union re/resentation u/ front during the de0elo/ment of roles, the, are cogniGant of the changes and can highlight union contract issues earl, in the /rocess. The, retain ownershi/ for the final /roduct and can more easil, mitigate concerns that ma, arise with the local union management.
)orkforce Preparation
Although we introduced fle"i+ilit, earl, in our discussion of o/erational roles and res/onsi+ilit,, this is where its im/act can +e felt on a minute8+,8minute, hour8+,8hour +asis. Increasing the s/eed of wor(flow through the cell is one of the /rimar, o+Decti0es for lean manufacturingJ therefore, those indi0iduals who actuall, touch the /roduct Asha/e it, mold it, machine it, assem+le it, etc.B are trul, the onl, 0alue8adding acti0it, from the customerMs /ers/ecti0e and need to +e effecti0el, de/lo,ed when /roducing the /roduct. This means each touch la+or em/lo,ee ultimatel, will need to +e ca/a+le of o/erating e0er, /rocess within the cell. This is more easil, said than done, +ut the transformation has to +egin somewhere. A recommended a//roach to initiating
this transformation is to +uild a s(ills matri" A-igure 3.9B, in which the /eo/le in the cell are listed on the y 8a"is and the /rocesses or o/erations to +e /erformed are listed across the to/ on the 0 8a"is. -illing out this matri" gi0es the cell team and cell leaders the means to identif, areas and /eo/le requiring training. A recommended a//roach to soliciting in/ut A+ecause this can +e a 0er, uncomforta+le /art of the cell de0elo/ment /rocessB is for the cell leader to as( his touch la+or /ersonnel@ A5B what the, can do well, and A1B what the, cannot do +ecause of an, limitations Ae.g., union contract, /h,sical conditionsB. *o not as( them what the, cannot do. This is a negati0e a//roach and /uts the em/lo,ee on the defensi0e. It will +ecome e0ident soon enough as to what the, cannot do when the, ha0e to +egin /erforming at multi/le wor(stations. $, incor/orating a 0alidation /rocess to clarif, what is e"/ected of the Do+, and 0alidating /erformance in regard to those clarified e"/ectations, the cell leader will +e
2rgani3ation le!ent
;; a+le to de0elo/ a more accurate /icture of the ca/a+ilit, of the cell. om/anies should de0elo/ a fair and un+iased 0alidation /rocess. In doing so, the, ma, +e a+le to ta(e ad0antage of a s(ill8+ased /a, scenario down the road. In addition to an inquir, as to what the, can do well, as( the em/lo,ee to ran( their s(ills from strongest to wea(est. This will hel/ esta+lish training /lan /riorities. After the matri" is com/lete, ,ou should ha0e a /rett, good idea a+out what areas for im/ro0ement need to +e addressed in the short term. As cell team mem+ers +ecome familiar with their new res/onsi+ilities, accounta+ilit, for /erformance can +egin to +e esta+lished. #alidation of actual /erformance and the use of control mechanisms that loo( at 0ariation from /lan +oth su//ort adherence to standards and dri0e continuous im/ro0ement in the /rocess. It is through this monitoring of the /rocess, that we can (ee/ our o/erational out/ut /erformance in chec(, as we will see in the ne"t cha/ter. :igure ;.4 &ross2"raining Matrix
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Metrics Element
n com/arison with the other four elements AFrganiGation, Logistics, Manufacturing -low, and Process ontrolB, Metrics AmeasurementB is the element that /ro0ides the /rimar, focus for changing +eha0ior. It is this element that ensures alignment +etween cell8le0el sho/floor acti0it, and higher le0el com/an, +usiness o+Decti0es. It is this connection that is necessar, for lean manufacturing im/ro0ements to a//ear on the +ottom line. This cha/ter will descri+e how em/owerment at the cell le0el to achie0e o/erational o+Decti0es leads to im/ro0ed /erformance, resulting in an im/act on the com/an,Ms +ottom line. The metrics descri+ed will not +e new, +ut the, ma, +e a//lied and managed in a manner that could +e contrar, to
what some com/anies are accustomed. &o matter what com/an, or what industr,, we all ha0e our fair share of metrics. There are metrics on c,cle time, defects /er unit, items shi//ed on schedule, direct la+or cost, return on net assets A!F&AB, o0ertime, /ercentage of wor( orders released on time, cost of qualit,, hours of rewor(, cash flow, in0entor, turno0er, etc. &o com/an, is lac(ing for re/orted measurements of /erformance. It is recogniGed that com/anies are s/ending 0alua+le resources collecting, sorting, anal,Ging, and dis/la,ing these /erformance data and re/orting them on a monthl,, wee(l,, dail,, and sometimes e0en hourl, +asis. If we, as com/anies, are s/ending this much effort on measurement wh, arenMt all of our organiGation /erforming at H+est8in8classI le0elsO )h, are some of our organiGations leading the /ac( while others are falling +ehind and some wa, +ehindO According to Ha,s, )heelwright, and lar( A 1yna!ic Man"*act"ring+ Creating the Learning 2rgani3ation B, it could 0er, well +e a matter of too much data and not enough information@ HMeasurements can /ro0ide useful information to managers who are tr,ing to identif, the sources of their
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/ro+lems or the reasons for their success. $ut most measurement s,stems in /lace toda, do not /ro0ide the (ind of information needed +, com/anies that see( to create a com/etiti0e ad0antage through manufacturing.I
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This cha/ter will e"/lore some measurement formats that will enlighten us a+out this situation and will e"/lain wh, an understanding of human +eha0ior /la,s as much of a 0ital role in the success of /erformance im/ro0ement as the metrics themsel0es. )e are what we measure. TIm/ro0ement comes onl, from that which is 0isi+le. TA hidden /ro+lem re0eals nothing. Although these statements ha0e an element of truth to them, the real /ower of measurement comes from an indi0idualMs understanding of the measurement itself. The real tric( to im/ro0ing /erformance comes from an indi0idualMs definition, de0elo/ment, control, and understanding of cause and effect as the, are related to the metric. Metrics that are de0elo/ed +, an outside entit, and forced on a cell team are not li(el, to /roduce desired results. Metrics defined and de0elo/ed +, a cell team ha0e a higher li(elihood of resulting in a /ositi0e correlation +etween acti0it, on the sho/ floor and desired /erformance. Understanding of the measurement, ownershi/ of its results, and control o0er the factors that ma(e it rise or fall are all im/ortant features necessar, for the successful de/lo,ment of a measurement s,stem. This area of measurement will +e loo(ed at from se0eral different /ers/ecti0es@ 5. *uPont model Aa com/an, 0iewB 1. Fut/ut8+ased measures Aa cell teamMs resultsB 3. Process8dri0en measures Ainfinite continuous im/ro0ementB 4. 7oal alignment through /olic, de/lo,ment 9. Measurement definition and understanding A/ower to the /eo/leB
3uPont Model: A &ompany *ie,
The *uPont model A-igure 4.5B, which was de0elo/ed +, a -rench engineer in the 5;42s, is an e"cellent tool to use to generate a Hwhat if I anal,sis utiliGing a com/an,Ms income statement and the +alance sheet. These time8honored instruments of the financial communit, are /i0otal documents for reflecting the o0erall health of a com/an,. It is through the intersection of these documents that the *uPont model +ecomes 0alua+le as a /erformance measure.
Metrics le!ent
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$eginning &et Assets
:igure <.6 3uPont Model
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$, +uilding relationshi/s +etween /articular line items it is /ossi+le to /roduce se0eral different ratios as indicators of /erformance trends. In addition to monitoring trends, these ratios can ser0e as /oints of reference for industr, com/arisons, as well as a guide for esta+lishing o/erational goals. Achie0ement of these goals can +e /la,ed out through a Hwhat ifI scenario to determine whether im/ro0ement through a change in sales, an increase in asset turno0er, or lower in0entor, le0els will su//ort o/erational o+Decti0es. -or e"am/le, if the /lant can reduce in0entor, +, 15S, then total assets will decrease and the asset turno0er ratio will increase +, ;S. )ith all other elements remaining equal, this will im/ro0e the return on in0estment A!FIB calculation +, 9S. A second e"am/le would +e if the cost of goods sold A F7SB is reduced +, :S, then total costs will decrease and net /rofit will im/ro0e +, 4S. )ith all other elements remaining equal, this will im/ro0e the /rofit margin calculation +, 1S. This /erformance measurement method is useful at the to/ le0el within an organiGation to esta+lish o0erall goals and o+Decti0es within the +usiness. It is not designed for use at the cell le0el, where financial measurements tend to +e less tangi+le. At the sho/ floor, in most cases it is +etter to utiliGe more tangi+le, /h,sical measures of /erformance.
utput2Based Measurements: A &ell "eamJs Results

T,/icall,, the onl, e"isting e0idence of measures on the sho/ floor are measures +ased on /erformance for a s/ecific indi0idual em/lo,ee or /iece of equi/ment Ae.g., how man, hours were /ut in ,esterda, +, -red, or how man, /arts came off machine num+er 439 last shift, or what the ,ield of the drilling /rocess was last hourB. These are all measures of how a /articular ste/ in the /rocess is /erforming, and the, focus on what is called locali3e& o)ti!i3ation . om/anies monitor indi0idual o/erations in the manufacturing /rocess and assign accounta+ilit, and ta(e correcti0e action +ased on them. The /ro+lem with this t,/e of measurement is that it@ A5B dri0es the wrong +eha0ior for continuous im/ro0ement, A1B does not reall, ha0e /roduct accounta+ilit, focused on the customer, and A3B rewards o/timiGation of the indi0idual o/eration +, sacrificing /erformance of the /rocess as a whole. Again referring to Ha,s, )heelwright, and lar( A 1yna!ic Man"*act"ring+ Creating the Learning 2rgani3ation B, on the su+Dect of /roduct8focused 0s. /rocess8focused o/erations@ HA /roduct focus, on the other hand, is generall, easier to manage +ecause of its smaller siGe and total res/onsi+ilit, for a
Metrics le!ent
;? /articular /roduct or customer. This usuall, results in shorter c,cle times, faster res/onse to mar(et changes, less in0entor,, lower logistics costs, and, of course, lower o0erhead.I
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-ollowing this theme of +eing /roduct focused, a more effecti0e measurement s,stem would +e one that esta+lishes out/ut8+ased measurements for the cell team around tangi+le /roducts that go to a customer. These t,/es of measures /ro0ide feed+ac( on the /erformance of the o0erall /rocess relati0e to the customer. Fut/ut8+ased measures assign accounta+ilit, for all the o/erations contained within the manufacturing /rocess. !es/onsi+ilit, is Hcradle to gra0eI for the /roduct. A focus on out/ut measures dri0es continuous im/ro0ement in that someone is accounta+le to an end customer for the /erformance of a /roduct and has the res/onsi+ilit, to correct an, /ro+lems encountered +, that customer. Two measures that can alwa,s +e used as out/ut measures are /roduct qualit, Ae.g., ,ield, defects /er unit, returnsB and /roduct deli0er,. Lac( of /erformance in these areas affects the customer /h,sicall,. Price is o+0iousl, another measureJ howe0er, it does not /h,sicall, affect the customer the same wa, as not ha0ing a /roduct or ha0ing a /roduct that does not wor(. These measures can usuall, +e esta+lished quite easil,J the difficult /art is determining organiGational accounta+ilit, for the /erformance. If the com/an, fails to address this alignment, the /rogress toward continuous im/ro0ement will +e limited to localiGed o/timiGation and the o/eration will miss the +ig o//ortunit,.
Process23ri(en Measures: Infinite &ontinuous Impro(ement

There are two other measurements worth, of discussion which are readil, understood +, the sho/ floor and can +e utiliGed to dri0e continuous im/ro0ement +eha0ior. Fne is /rocess c,cle time and the other is /rocess qualit, measured 0ia roll8through ,ield A-igure 4.1B. !oll8through ,ield is the cumulati0e /erformance of each o/eration in a /rocess. The idea here is that, if a com/an, is +uilding +etter and +etter /roducts and deli0ering them in less and less time, then there should +e a /ositi0e correlation to total /roduct cost. If ,ou are s/ending less time rewor(ing defects, re/lacing scra//ed material, mo0ing assem+lies around the sho/, and waiting for com/onent /arts, then o0erall /roducti0it, will im/ro0e. )hen a manufacturing o/eration allows onl, first8qualit, /roducts to /roceed to the ne"t o/eration and does not let material sit around in the sho/, then the organiGation is focusing its efforts on the acti0ities necessar, to sustain continuous im/ro0ement. <@
Goal Alignment "$roug$ Policy 3eployment

)e ha0e met the enem, and he is usU An,one who has tried to align a +ureaucrac, and mo0e it in one direction can certainl, relate to this statement. $etween the +usiness /olitics, functional silos, misinformation, and lac( of information, it can +e quite the chore. How, then, does one accom/lish this seemingl, unachie0a+le tas(O It can +e done through the use of consistent /olic, de/lo,ment. Another term would +e (oshin )lanning , which was originall, used +, the Ea/anese A-igure 4.3B. The maDor intent +ehind /olic, de/lo,ment is to steer an entire organiGation in the same
o0erall direction. )hen an entire organiGation is /ulling in the same direction, it is much easier to ta(e correcti0e action and adDust the course. If a com/an, is /ulling in se0eral different directions, not onl, does it use u/ a tremendous amount of energ,, +ut it also is more difficult to realign to a new direction. As a com/an, +egins to define its direction through a sim/le mission statement, it must esta+lish a strateg, that achie0es that mission. In turn, this strateg, +ecomes su//orted +, s/ecific o/erational o+Decti0es that must +e e"ecuted and coordinated across the organiGation. It is at this /oint that alignment through /olic, de/lo,ment is required. Polic, de/lo,ment can +e com/ared to requirements cascading down a staircase. At each le0el within the +usiness, a se/arate set of o+Decti0es and goals can +e defined. A statement of the o+Decti0es at a di0ision le0el would +e different than those at a de/artment or sho/ floor le0elJ ne0ertheless, the, can all +e aligned to the same com/an, o+Decti0e. -or instance, A$ om/an, wants to increase mar(et share +, 52S in a /articular segment of the glo+e, and the, ha0e determined
:igure <.9 Process23ri(en Metrics
Metrics le!ent
<6 that the wa, to accom/lish this is through im/ro0ing the s/eed of /roduct deli0er, to the customer. This requires a /erformance change from a 38wee( lead8time down to 5 wee(. In order to achie0e this, manufacturing and /urchasing ha0e s/ecific actions the, must ta(e that su//ort this com/an, o+Decti0e. Manufacturing needs to re0iew how /roduct is flowing through the factor, toda, and see where the, ha0e waste in the /rocess. The, need to 0erif, if the necessar, s(ills and ca/acit, are a0aila+le to handle the increased 0olume. Purchasing needs to wor( with the su//lier +ase to reduce re/lenishment lead8time so in0entor, le0els do not rise along with the increased 0olume and to ma(e sure that communication channels for changes in demand are timel,. The demonstrated alignment of these o+Decti0es in the /lanning stages and the constant communication feed+ac( during im/lementation allow /olic, de/lo,ment to wor(. It /ro0ides total 0isi+ilit, to the organiGation so that e0er,one can see where the, fit into the success of the com/an,. It focuses the organiGation on /lanning the wor( and wor(ing the /lan. The regular re/orting of /rogress is necessar, in order to understand the current status and to ta(e correcti0e action. FrganiGations are a s/ider we+ of interrelationshi/sJ therefore, it is im/erati0e that each function understands the im/act of +usiness changes on the other functions. :igure <.; +os$in Planning Process <9
An organiGation should limit itself to three to fi0e com/an,8wide initiati0es at an, one time. An, more than that lea0es a /late that is too full and detracts from the o0erall focus of the com/an,. There will +e too man, V5 /riorities and not enough resources to co0er all commitments. Initiati0es will ta(e longer to com/lete, and the qualit, of the deli0era+les will suffer. Kee/ the /late managea+le. As one /roDect finishes u/, add a new initiati0e and dri0e each to com/letion. Polic, de/lo,ment does not guarantee that a com/an, will ma(e its goalsJ howe0er, it is /racticall, guaranteed that a com/an, will not reach its goals if it cannot e0en achie0e them on /a/er.
Measurement 3efinition and -nderstanding
Indi0iduals are more li(el, to stri0e and achie0e a /erformance target the, understand as o//osed to one the, do not. If measures are +eing /osted in a wor( area +, an outside entit, and are not com/letel, understood +, those +eing measured, it is not li(el, that /erformance in that area will im/ro0e. If /eo/le cannot descri+e their measure of /erformance, do not own that measure, do not re/ort on the measure, nor understand cause and effect relati0e to the measure, then it is unrealistic to e"/ect the measure to im/ro0e. Here, we can draw u/on the e"/erience of Eohn 7. $elcher, long8time 0ice /resident of the American Producti0it, enter, who stated in his +oo(, Pro&"ctivity Pl"s+ (ow To&ay7s Best R"n Co!)anies Are Gaining the Co!)etitive &ge @ HAn organiGation that tries to realiGe significant /roducti0it, im/ro0ement without the /artici/ation and su//ort of its em/lo,ees is wor(ing against itself. It doesnMt ma(e much sense to em+ar( u/on a maDor underta(ing when the +ul( of the organiGation misunderstands C or worse ,et, resists C the o+Dect of that underta(ing.I
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In order for a cell team measurement s,stem to wor(, it is necessar, that the metrics +e defined, owned, controlled, monitored, and understood +, those using the measure A-igure 4.4B.
:igure <.< Measurement
Metrics le!ent
1Becti(es
<; To engage indi0iduals in the im/ro0ement /rocess, the, must +e /art of the de0elo/ment of that /rocess. The, need to understand where the, fit in and how the, affect the outcome. It does no good to create a metric in a 0acuum, +ring it to the floor, /ro0ide no definition as to what the measure means, collect the data off8line, ha0e someone outside the area re/ort on the metric, and then e"/ect /eo/le to im/ro0e their /erformance. To o0ercome this tendenc,, it is ad0isa+le to select a handful of desired outcomes Athree to fi0eB and wor( with the cell team to de0elo/ a//ro/riate measures for those desired outcomes. *o not clutter an area with the to/ 19 measures for that o/eration. -irst of all, such /ostings ta(e u/ s/ace and get in the wa,J second, the, are not as meaningful to those in the cell. -acilitate agreement among the team a+out common definitions, identif, where the data will come from, select those who will re/ort /rogress, and esta+lish an e"/ected target /erformance le0el. $e sure to /ro0ide insight as to how /erformance of the measure can +e im/ro0ed in relationshi/ to the desired target le0el. It does no good to e"/ect a target le0el that no one (nows how to achie0e. $e cogniGant of the fact that the measurement s,stem that is de0elo/ed +ased on the needs of toda, could change to meet the needs of tomorrow. Measurements will change +ased on the mar(et, the customer, different le0els of /erformance, and changing com/etiti0e /riorities. Again referring to Making Man"*act"ring Cells $ork +, Ingersoll .ngineers, change is a constant, and loc(ing into one /articular measure toda, could render a com/an, uncom/etiti0e tomorrow@ HAn, change in items such as /roduct, deli0er,, machines, or tooling ma, well cause changes in the need for certain t,/es of /erformance measures. om/anies mo0e ra/idl, into and out of mar(ets and otherwise change +usiness strateg, to adDust to e0er8changing com/etiti0e /ressures, and e"isting /erformance measurements must +e continuall, re0iewed in res/onse to these changes.I
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This cha/ter has focused on a short list of metrics that can effecti0el, guide an organiGation on its /ath to sustained continuous im/ro0ement. It has demonstrated how the sho/ floor can +e lin(ed to a com/an,Ms o/erational o+Decti0es. It has also tried to em/hasiGe the element of measurement that requires an understanding of human +eha0ior and its im/act on desired /erformance. The ne"t cha/ter +egins to re0eal where these measures can wor( as control /oints in monitoring /erformance +etween customers and su//liers.
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4
'ogistics Element
t is now time to address the element re/resenting the greatest o/erational challenge C Logistics. This is the area in which all the old rules of o/erating the sho/ floor are challenged. This is where the turf wars are fought, functional silos are +rought down, indi0idual (ingdoms are destro,ed, worlds are dominated, uni0erses are lost T well, ma,+e not quite that +ig a challenge. &e0ertheless, now that res/onsi+ilit, and accounta+ilit, ha0e +een dri0en down to a lower le0el within the com/an,, a different set of rules a//lies and some new techniques will need to +e utiliGed. This new wa, of doing +usiness in0ol0es changing not onl, the formal documented /rocess for /lanning and control, +ut also the informal, timetested sho/floor rules that ha0e +een ingrained within the organiGationMs culture o0er the ,ears. Therefore, a lean manufacturing im/lementation is not onl, changing documented /rocedures and /h,sical material handling methods, +ut it is also /lacing stress on an informal s,stem that has +een used for ,ears. This informal s,stem is usuall, more difficult to com+at. To a//reciate how strong the informal s,stem within an organiGation can +e, as( ,ourself how quic(l, and effecti0el, rumors /ass through ,our organiGation. .nough said. This +eing the case, it +ecomes /ainfull, o+0ious that the communication /lan Aidentified in ha/ter 3B is of /aramount im/ortance to the success of an im/lementation. .m/lo,ees need to understand wh, their informal s,stem is +eing challenged and what this im/ending change will do to affect their wor( /lace. This term logistics can mean se0eral different things to different /eo/le, so we will clarif, its definition here. The term, in this conte"t, refers to those o/erational elements required to transfer wor( to a cell, through that cell, and from one cell to the ne"t. It is /rimaril, those in8+ound, internal, and out8+ound as/ects of /lanning and controlling the flow of wor( that are
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in0ol0ed in this element. -ollowing is a descri/tion of the sco/e of each of
these as/ects C in8+ound, internal, out8+ound A-igure 9.5B@ 5. 8n6bo"n& includes all acti0ities related to getting raw material, /rocured items, and other direct or indirect manufacturing items to their res/ecti0e /laces of consum/tion. -unctions such as /rocurement and su+contract management and items such as engineering drawings, /rocess s/ecifications, and tooling are all associated with in8+ound logistics. 1. 8nternal has to do with those items required to facilitate the flow of wor( through the cell. These items in0ol0e cell team mem+ers Ae.g., cell leader, /roduction engineer, sho/ touch la+or, /roduction controlB and include such /h,sical elements as materials or /urchased /arts, /roduction tooling, equi/ment, Kan+ans, /riorit, listings, etc. 3. 2"t6bo"n& relates to those items required to e"it from the su//lier cell and arri0e at a customer or customer cell. Items such as customer identification, a negotiated deli0er, quantit,, (it definition, su//lierheld in0entor,, mode of trans/ortation, ownershi/ e"change /oints, etc. are all areas of focus for this as/ect. &ow that a general idea of sco/e and +oundar, has +een esta+lished, the 0arious /rinci/les in0ol0ed with the logistics /rocess can +e e"/lored indi0iduall,. Fur focus in this cha/ter will +e on@
:igure 4.6 'ogistics Scope
Im&rove the &rocesses '! $hich materials( &urchased &arts( tooling( engineering data are &rovided to the cell) Im&rove the material flo$ of com&onents to( through( and onto the next cell) Im&rove the customer* su&&lier relationshi&s 'et$een the cell and its customer 'ase)
In2Bound Items:
H Parts H 3ra,ings H "ools
Internal Mem1ers:
H &ell leader H Prod. &ontrol H perators
ut2Bound Items:
H Products H "ransportation H Information Logistics le!ent
<5 5. Planning/control function a. Priorit, /lanning Aforward /lanB +. a/acit, /lanning Awor(loadB c. a/acit, control Ain/ut/out/ut controlB
d. 1. 3. 4. 9. =. :. >. ;.
Priorit, control Adis/atch listB A,$, material handling Ser0ice cells ustomer/su//lier alignment Eust8in8time AEITB Kan+an demand signals ell team wor( /lan Le0el loading Mi"8model manufacturing )or(a+le wor(
Planning/&ontrol :unction
The /lanning/control function e"ercised within a cell can go +, se0eral names Ae.g., constraint scheduling, release and control, wor(flow managementB and ,et still mean the same in terms of functionalit,. The /lanning/control function descri+ed here requires that s/ecific wor( rules +e utiliGed during the o/eration of a cell. !emem+er that the Logistics element has as much to do with changes in wor( rules as it does with /h,sical /rocess changes. ."am/les of some of the standard o/erational wor( rules ma, include@ ? *o not load the cell equi/ment o0er ;2S of demonstrated ca/acit,. ? *o not release wor( inside a0erage actual lead8time. ? !elease onl, wor(a+le wor( to the cell. ? Sequence wor( +, using first8in/first8out /rioritiGation. ? *o not release wor( without an authoriGing Kan+an. These are o/erational wor( rules that are to +e de0elo/ed, defined, and documented +, the cell team mem+ers. Through the education and training Arecei0ed 0ia the FrganiGation elementB, the cell team will ha0e a +etter understanding of the need for new wor( rules, and, +ecause the, ha0e de0elo/ed and defined those rules, there is greater ownershi/ for them as a team. These wor( rules are not intended so much to reduce fle"i+ilit, as the, are to facilitate consistenc,, structure, and continuit, among team mem+ers for o/erations of the cell. This colla+orati0e a//roach to wor( rules in actualit, will enhance +oth the res/onsi0eness and /redicta+ilit, of cell /erformance, es/eciall, within a multi8shift en0ironment. <>
Planning and control are critical functions that contri+ute to the successful im/lementation of the cell. Fften times, those indi0iduals onl, focusing on utiliGing Dust8in8time AEITB and Kan+an material /ull o0erloo( these functions. The initial im/lementation and su+sequent da,8to8da, o/erations of a cell are greatl, influenced +,@ A5B how e"ecuta+le the /lan is, and A1B how ro+ust the control mechanism is. There e"ists a strong relationshi/ +etween these functions, as the +etter the /lanning effort, the easier the control effort. The criticalit, of this relationshi/ was em/hasiGed +, the Ea/anese master of /roduction engineering, Shingo Shigeo A /on6Stock Pro&"ction+ The Shingo Syste! *or Contin"o"s 8!)rove!ent B@ HIf the /lanning le0el is a+out >2 /ercent, control /recision need onl, +e around 12 /ercent. If the /lanning le0el is a+out 92 /ercent, control /recision needs to +e around 92 /ercent.I
12
There are four +asic as/ects to /lanning/control within a cell A-igure 9.1B, and each is e"/lained in detail in the following discussion.
Priorit! Planning +,or$ard Plan-
This as/ect is concerned with /lanned or future wor(load requirements, which are normall, fed to the cell +, a manufacturing resource /lanning AM!P IIB or some other requirements /lanning s,stem. Lean manufacturing in no wa, a+olishes the need for requirements /lanningJ rather, it actuall, requires it in order to@ A5B esta+lish cell design criteria, A1B /lan short8term wor(loads A5 to 4 wee(sB, A3B /erform ma(e/+u, anal,ses, and A4B communicate future demand needs to u/stream su//liers. A com/an,Ms current requirements /lanning s,stem is usuall, adequate enough to /ro0ide the required information for a lean manufacturing en0ironment.
:igure 4.9 Aspects of Planning and &ontrol
Logistics le!ent
<?
Ca&acit! Planning +
orkload-
This function is necessar, for the cell team to re0iew and agree u/on the u/coming wor(load, man/ower, and o0ertime requirements necessar, to satisf, customer /erformance e"/ectations. This ca/a+ilit, allows the cell team to determine its own destin, and /ro0ide in/ut into the decision /rocess that controls end /roduct /erformance. The cell le0el 0isi+ilit, to future wor(load fluctuations can then +e mitigated +, the cell team through le0el loading, off8loading, lot siGe s/litting, /lanned o0ertime, etc.
Ca&acit! Control +In&ut*Out&ut Control-
The cell team is held accounta+le to manage /erformance to /lan. a/acit, control is used as a control de0ice to /ro0ide the cell team with the ca/a+ilit, to maintain wor(load 0isi+ilit, and monitor /rogress to /lan. The, are gi0en the o//ortunit, to ta(e credit for achie0ing an o/erational goal or are /ro0ided with the a+ilit, to ta(e swift correcti0e action when /erformance is falling off the mar(. Managing queue siGes is /aramount to meeting leadtime commitments. If actual queues are e"ceeding /lan, then /romise dates to customers will +e missed and customer confidence will diminish. Leadtime 0aria+ilit, Aa true menace to man, deli0er, /ro+lemsB is a direct reflection of how well actual queue times are (e/t in control.
Priorit! Control +.is&atch /istThe sequence +, which wor( is introduced to the cell will +e a function of three things@ A5B Is there a customer demandO .0en though there is a /lanned requirement for an item, until there is a demand /ull signal from the customer, there is no real need for the item. A1B Is there enough ca/acit,O Until ca/acit, has +een cleared or a Kan+an container +ecomes a0aila+le to introduce more wor( into the cell, it cannot release wor(. If wor( was released, wor( in /rocess would increase +e,ond the cell design /arameters, queues would grow, and lead8time would increase. A3B Is the wor( /ac(age a0aila+leO Unless all the items necessar, to wor( a Do+ ha0e +een made a0aila+le, wor( cannot +e released to the cell. If incom/lete wor( /ac(ages were released to the cell, the, would e0entuall, sto/. The, then would ha0e to wait for resources to +e a//lied to +rea( it loose, and the wor(flow would +egin to +ac(log. 4@
A#B#& Material +andling
In a lean en0ironment, controlling the flow of material and managing in0entor,
will change under the new o/erating rules for material handling. Instead of managing each and e0er, /art e"actl, the same wa,, /arts will +e reclassified +ased on their demand +eha0ior characteristics. -or instance, a large, com/le" machined /art weighing 922 /ounds with 522 hours of machine time would +e scheduled and controlled differentl, than a nic(el/dime cli/ or +rac(et. The amount of time, mone,, and resources required to manage in0entor, should +e com/ara+le to the +eha0ior characteristics of the /art or com/onents. Parts should +e stratified according to a gi0en criteria so that an a//ro/riate amount of effort is e"/ended on managing the /art re/lenishment /rocess. Parts or com/onents can +e segregated along an A,$, t,/e of classification A-igure 9.3B. This a//roach differs slightl, from ParetoMs >2/12 ruleJ howe0er, the a0erage /art /o/ulation still falls along the normal 59/39/92 /ercentage s/lit. -or e"am/le, /arts that are e"/ensi0e, more com/le" to +uild, and often e"hi+it long lead8times should +e considered HAI /arts. The, should +e scheduled with su//liers either A5B with trans/ortation /i/eline Kan+ans Aes/eciall, with high80olume /roductB, or A1B directl, through M!P II Afor low80olume /roductB, Dust as in most /lants toda,. H$I /arts are usuall, less com/le", ha0e shorter and more /redicta+le lead8times, are less e"/ensi0e, and are small enough to +e (itted Aif requiredB. These can +e re/lenished 0ia Kan+ans and can /ossi+l, +e +uilt on demand. These /arts could +e +uilt
:igure 4.; A#B#& Material +andling
Logistics le!ent
46 and deli0ered in negotiated +atch siGes or in /redetermined (its Aif requiredB. If the demand 0olume is low or highl, 0aria+le, it ma, ma(e more sense to re/lenish these /arts 0ia M!P II or through nonre/etiti0e Kan+ans. $, far the maDorit, of /arts A92SB would find themsel0es in the H I categor, and could +e managed directl, through a 0endor8managed reorder /oint or Kan+an s,stem. These /arts would a//ear on the +ill of material, +ut would not +e scheduled /er M!P II and therefore would require minimal man/ower to manage.
Ser(ice &ells
In an ideal world, all /arts would +e manufactured com/lete within a gi0en cell. All the necessar, manufacturing /rocesses would +e located in that cell and the /arts would ne0er ha0e to lea0e the cell. !aw material would come in and a com/letel, finished /art Aread, for consum/tion +, the customerB would go out the other side. &ow, if ,ou currentl, ha0e this scenario o/erating within ,our /lant, then /ass +, this section +ecause it does not a//l, to ,ou. Howe0er, if ,ou are li(e the maDorit, of the manufacturing communit,, ,ou certainl, do not ha0e enough ca/ital to full, /o/ulate ,our cells in this manner. This section will /ro0ide an o/tion for ,our facilit,. Ha0e ,ou e0er +een to a dr,cleaner with a load of shirts and read the sign out front, HIn +, ;, out +, 9OI Ha0e ,ou e0er +een to a train station and ridden on a trainO *id ,ou notice how the conductor continuall, chec(s his watch and monitors the time in the stationO He is ma(ing sure the train enters and lea0es the station on time. At >@22 a.m., for e"am/le, announcing Hall a+oardI indicates that the train is lea0ing the station. An,one there can +oard, and those who are not there will ha0e to wait until the ne"t scheduled train arri0es. )hat if certain ca/ital8intensi0e manufacturing o/erations were set u/ to run in the same mannerO The a+o0e8mentioned scenarios descri+e two t,/es of rules that can a//l, with ser0ice cells A-igure 9.4B. These ser0ice areas are designed to su//ort cells that are manufacturing /roducts. Their o+Decti0e is to satisf, the needs of the manufacturing cells and to /ro0ide a /redetermined le0el of ser0ice or turnaround for a /articular /rocess.
$ecause, as we learned earlier, manufacturing cells are accounta+le for the /roduct from cradle to gra0e, the, +ecome highl, de/endent on ser0ice cells to /ro0ide consistent, /redicta+le /rocess turnaround. This le0el of de/endenc, strengthens the customer/su//lier relationshi/ and ties in directl, with the Metrics element that we e"/lored in ha/ter 4. 49
&ustomer/Supplier Alignment
)hen com/anies /a, homage to the terms c"sto!ers and s"))liers , it is normall, the t,/e of Hmotherhood and a//le /ieI li/ ser0ice that does not mean much in the wa, of su+stance. In order for lean manufacturing to trul, function, direct lines of communication +etween customers and su//liers must +e identified and strengthened. -or e0er, /roduct /roduced within a manufacturing cell, there is a corres/onding customer or customer cell that will +e consuming that /roduct. )hether the su//lier cell is /art of an internal customer/su//lier relationshi/ within a multi8/lant facilit, or /art of a larger su//l, chain in0ol0ing se0eral different com/anies, the same adage a//lies@ alignment with the customer. ell mem+ers should recogniGe who utiliGes their /arts and (now if those /arts are satisf,ing the customerMs fit, form, and function requirements. Are the, /ac(aged correctl,O Is there a +etter (itting /rocedure that could +e utiliGedO an we negotiate a +etter deli0er, quantit, to hel/ our total /roduct costO )ho do the, call when there is a qualit, /ro+lem with the last /arts that were recei0edO These are all legitimate questions that can +e as(ed and answered when there is direct alignment +etween customers and su//liers. Fne wa, to +egin esta+lishing this alignment relationshi/ is to@ 5. !un a Hwhere used/recei0ed fromI list off the +ill of material for all /arts/com/onents that are assigned to a gi0en cell. 1. Sort the /arts +, four categories@ customer, 0olume, cost, and destination, which allows /rioritiGing in0estigati0e efforts. 3. all on the +iggest customers or su//liers first to assess their needs and +egin negotiating wa,s of im/ro0ing the su//l, chain.
:igure 4.< Ser(ice &ell Relations$ip
Logistics le!ent
4; In addition to ca/turing the /art num+ers, a /rocess ma/ of the acti0ities for the cell can +e 0er, useful. $, utiliGing a format of su//lier8in/ut8 /rocessout/ut8 customer ASIPF B, a great deal of information can +e o+tained in regard to in/ut requirements for the /rocess and out/ut requirements of the customer. $, ca/turing the (e, acti0ities within a /rocess Ae.g., a cell, su//lier interface, shi//ing, order administrationB and categoriGing them according to 0alue8adding or non80alue8adding, significant insight into the /erformance of a /rocess can +e o+tained. !emem+er that this is documenting acti0ities, not tas(s. Kee/ing the /rocess ma/ at the a//ro/riate le0el of detail can +e difficult. Acti0ities are focused on the 0er+8noun Aaction to an o+DectB relationshi/ of functions in a /rocess, while tas(s are more the /roceduralle0el ste/s for those acti0ities. To (ee/ this distinction straight, tr, using the guidelines set +, ol(ins in his Activity6Base& Cost Manage!ent+ Making 8t
$ork+ A Manager7s G"i&e to 8!)le!enting an& S"staining an **ective ABC Syste! @ HA good rule is to thin( of acti0ities as what /eo/le do and the tas(s that ma(e u/ acti0ities as how the /eo/le /erform acti0ities.I
1
Kust2in2"ime EKI"F Aan1an 3emand Signals

A multitude of methods can +e e"ercised when utiliGing /ull signals A-igure 9.9B. The, include cards, standard containers, em/t, squares on the sho/ floor, electronic messages Ae.g., fa"es, e8mails, .*I, e8commerceB, among
:igure 4.4 Kust2in2"ime EKI"F 3emand Pull Signals
4<
others. All of these methods ha0e se0eral as/ects in common. -irst, the demand signal re/resents the authoriGation to +egin wor(. Second, no Do+ is to +e released for wor( without a demand authoriGation from the customer. Third, the demand signal controls the amount of wor( in /rocess allowed in the su//l, chain. -ourth, the num+er of Kan+ans in the s,stem will determine the amount of wor( in /rocess for the chain. This scenario gi0es the cell the a+ilit, to control 0aria+ilit, in lead8times, as queues are una+le to grow +e,ond the num+er of calculated Kan+ans. -ifth, no one is allowed to (nowingl, /ass defects on to the ne"t o/erationJ defects are to +e sto//ed when the, are found and correcti0e action incor/orated immediatel,. Si"th, wor(flow is /rioritiGed on a first8in/first8out A-I-FB +asis. This not onl, a//lies to the scheduling of wor( into the cell, +ut also the /h,sical handling of material. The /h,sical in0entor, turno0er of material is Dust as im/ortant as the financial in0entor, turno0er of material. These as/ects of managing Kan+ans are summariGed in the following rules@ 5. A Kan+an demand signal is the authoriGation to +egin wor(. 1. &o Do+ is to +e released without demand from the customer. 3. The Kan+an controls the amount of wor( in /rocess allowed in the flow. 4. The num+er of Kan+ans will control the manufacturing lead8time through queue management. 9. *o not /ass (nown defects on. =. UtiliGe first8in/first8out A-I-FB material flow. Kan+ans can +e set u/ +etween wor(stations, +etween wor(stations and /oint8of8use APFUB locations, +etween cells and central stores, +etween assem+l, cells and fa+rication cells, +etween fa+rication cells and e"ternal su//liers, and +etween assem+l, cells and customers. .ach relationshi/ will ha0e its own indi0idual issues to address as to location, siGe, quantit,, ownershi/, shelf life, weight, etc. -or the /ur/oses of general discussion in this section on methodolog,, there will +e two t,/es of Kan+an material /ulls, one de/icted as intra8cell Ainternal to the cellB and one as inter8cell Ae"ternal to the cellB. .ach has a relationshi/ with /roduction cells and the o0erall o+Decti0e for Kan+an demand signals. The t,/e of Kan+an methodolog, de/lo,ed is 0er, de/endent on the manufacturing en0ironment, the rece/ti0it, to change of an organiGationMs culture, and a su//lier/customerMs moti0ation for /artici/ation. The more difficult the en0ironment, the more ro+ust a /rocess required. &o one (nows the manufacturing en0ironment +etter than each indi0idual com/an,J therefore, each
Logistics le!ent
44
com/an, is in the +est /osition to determine which method to use. Howe0er, no matter what method is chosen, the si" rules for managing Kan+ans still a//l,.
&ell "eam )ork Plans

As was mentioned in ha/ter 3, a lean manufacturing cell o/erates as a team com/letel, focused on deli0ering a /roduct to a customer. -or this team to function as one cohesi0e unit, the, must agree on how the, will o/erate. .arlier, in the /lanning/control section, the idea of a forward /lan was introduced. This /lan /ro0ides a future loo( at the /roduction requirements coming to the cell o0er the wee(. The cell team re0iews this forward /lan, ensures that the, ha0e enough ca/acit, and resources to ma(e this /lan Aif not, the, will ma(e the /ro/er adDustmentsB, and agree, as a grou/, to e"ecute this /lan. This wa, there is +u,8in to the schedule +, all the team mem+ers. The, own the /erformance o+Decti0es for the ne"t wee( and the, ha0e de0elo/ed s,nerg, around the /lan. This re0iew /rocess should ta(e /lace on a regular +asis Ae.g., wee(l,B and +ecome /art of the routine management of the cell. The cell leader should antici/ate facilitating this discussion, and the su//ort /ersonnel should /lan on /erforming an anal,sis on the data +efore /resenting it at the meeting. The meeting can then mo0e along efficientl, and with little wasted effort. This ma, a//ear to +e a sim/le, common8sense acti0it,, +ut it is sur/rising how man, cell im/lementations ne0er utiliGe this acti0it, and later wonder wh, the cell teams are not achie0ing the targeted o+Decti0es and are floundering without a common focus.
'e(el 'oading
According to one of the leading authorities on su//l, chain management, )illiam . o/acino, in his +oo( S"))ly Chain Manage!ent+ The Basics an& Beyon& , there are four /rerequisites or /illars required for a EIT s,stem to function /ro/erl,@ HIf EIT logistics /lans are to wor(, four /illars must +e in /lace T sta+le /roduction schedules, efficient communication, coordinated trans/ortation, qualit, control.I
4
It is one of these /rerequisites C a relati0el, le0el /roduction schedule o0er a defined /eriod of time C that is the su+Dect of this section. In order to align customer demand with ta(t time Asee ha/ter =B, a need e"ists to le0el demand at a rate that is conduci0e for +oth the su//lier and the customer. 4=
$, /resenting the customer8forecast information in units /er da, or wee(, an understanding as to the demand /attern and 0olume 0ariation for a gi0en set of /roducts can +e anal,Ged. This information /ro0ides insight into the de0elo/ment of a le0el rate8+ased schedule for a /roduction cell. This le0el rate8+ased schedule of demand o0er a gi0en /eriod of time is onl, for /roducts that fit a rate8+ased demand /attern which demonstrates a relati0el, high 0olume of demand, a consistent customer order frequenc,, and limited 0olume fluctuation. $, utiliGing a rate8+ased schedule A-igure 9.=B, these /roducts are scheduled less often Ae.g., once a monthB and are designed to +e /roduced at a gi0en rate for a gi0en /eriod of time. !ealiGing that demand does change, customer demand /atterns should +e monitored on a regular
+asis and the scheduled rate adDusted accordingl,. To de0elo/ a rate8+ased schedule, ta(e the forecast information in units +, da, or wee( and com/ute a monthl, a0erage. Then, com/are the forecast monthl, a0erage to the +oo(ed orders and de0elo/ a rate of /roduction from the higher of the two num+ers. This is done in order to +uffer against 0ariation in customer demand. This methodolog, is similar to the total demand /rocess tal(ed a+out +, ostanGa in The 9"ant"! Lea)+ 8n S)ee& to Market+ HThe definition of total demand inside the *emand time fence is the sum of actual customer and finished goods re/lenishment orders. Total demand outside the *emand time fence is the greater of the forecast and actual customer orders.I
9
-rom this /oint, the /roduction cells can commit to a /roduction schedule on a wee(l, +asis and +e held accounta+le for achie0ing their /lanned out/ut. As was stated earlier, not e0er, /roduct has a demand /attern conduci0e to rate8+ased scheduling, +ut for those that do, this can +e a 0er, effecti0e methodolog,.
:igure 4.= Rate2Based Sc$edule
Logistics le!ent
45
Mix2Model Manufacturing
There are manufacturing cells with wor(stations that can +e designed to /roduce a 0ariet, of /roducts and 0olumes o0er a gi0en time frame. These cells are ca/a+le of /erforming what is (nown as mi"8model manufacturing A-igure 9.:B. The criteria for designing these t,/es of cells requires that the /roduction /rocesses +e relati0el, consistent from /art to /art without a significant amount of 0ariation in the /rocess. In addition, these cells usuall, contain a highl, fle"i+le wor(force, ha0e limited 0ariation +etween wor( content times for each o/eration, and can change o0er +etween /roducts 0er, ra/idl,. Mi"8model manufacturing /ro0ides the ultimate res/onsi0eness and utiliGation of floor s/ace. It su//orts ma(ing an, mi" of an, /roduct on an, da, A/ro0ided the /roducts were designed for the cellB. Again, Schon+erger, in his +oo( :a)anese Man"*act"ring Techni-"es+ /ine Lessons in Si!)licity , descri+ed the /ositi0e effects of mi"8model manufacturing@ HAn ad0antage of mi"8model sequencing is that each da, ,ou ma(e close to the same mi" of /roducts that ,ou sell that da,. This a0oids the usual c,cle of a large +uildu/ of in0entor, of a gi0en model, followed +, the de/letion to the /oint of /otential lost sales as the ne"t model +uilds u/.I
59
:igure 4.5 Mix2Model Manufacturing
4>
Fnce those manufacturing /rocesses that fit the a+o0e8mentioned criteria are grou/ed together in a cell, it is Dust a matter of understanding the /roduct demand +eha0ior and segregating the mi" +ased on that +eha0ior. !ate8+ased /roducts are made in the same amount e0er, da,. Kan+an re/lenishment /roducts Aoften finished8goods stoc(B are re/lenishments for Kan+ans as demand requires. The ma(e8to8order or s/ecial /roducts will +e made when there is enough ca/acit, remaining to /roduce those /roducts. $, scheduling /roduct this wa,, one ma(es the most effecti0e use of s/ace, equi/ment, /eo/le, time, material, etc. The conce/ts of runner, re/eater, and stranger,
which are a//lica+le to this methodolog,, will +e discussed in greater detail in ha/ter =.
)orka1le )ork
$orkable work is a term that refers to those elements contained within the manufacturing /rocess that are necessar, in order for wor( to +egin on a /roduct A-igure 9.>B. .0er, manufacturing en0ironment will ha0e something that is s/ecificall, required in order to +egin wor(J howe0er, all en0ironments will ha0e the following elements in common@ A5B material, A1B tooling, A3B
:igure 4.> )orka1le )ork
Logistics le!ent
4? wor( instructions, A4B demand, and A9B s(illed wor(ers. Most M!P II s,stems are set u/ to /lan and release wor( to the sho/ floor +ased on demand information generated from the s,stem. Some ha0e a logic setu/ to chec( for com/onent /art a0aila+ilit, +efore assem+l, orders are launched, +ut that is normall, where it sto/s. The /ro+lem that arises in man, /lants is that wor( is released to the sho/ floor without ha0ing 0erified com/letel, that it is wor(a+le. -or e"am/le, wor( order IS5134 is launched to the first o/eration. The /art is +lan(ed and mo0es on through o/erations two through fi0eJ howe0er, when it arri0es at o/eration si", there is an issue. The tooling is out for re/air and not a0aila+le to run this Do+. )hat ha//ensO The Do+ sits and waits until the tooling is a0aila+le. This ha//ens e0er, da, in /lants, and the more com/le" the manufacturing o/eration the more this launch8and8wait +eha0ior is e0ident. Instilling an awareness of the conce/t of wor(a+le wor( sets in motion a /rocess that 0erifies the a0aila+ilit, of those critical elements required +, manufacturing, +efore committing a Do+ to the sho/ floor, there+, eliminating the dela,s and wait time that are so indicati0e of long manufacturing lead8times. The to/ic of logistics is a 0er, +road su+Dect matter that could easil, fill an entire te"t+oo(. This cha/ter was onl, intended to co0er some of the /rimar, as/ects that should +e addressed as /art of a lean manufacturing im/lementation. &ow that we ha0e a greater a//reciation for the infrastructure elements, it is time to address the element that is most familiar to /eo/le C Manufacturing -low.
=6
=
Manufacturing :lo, Element
ost /ractitioners within the field of manufacturing can relate to tangi+le, hard8fact t,/es of /roDects that indi0iduals can go and la, their hands u/on, so to s/ea(. These are the t,/e of im/ro0ement initiati0es most readil, em+raced and im/lemented. These /roDects are the most 0isi+le, and the, are witnessed +, e0er,one within the organiGation. This is wh, the idea of rearranging equi/ment and altering sho/floor la,outs is /ursued so /assionatel, +, man, manufacturing organiGations. Im/ro0ements
are easil, recogniGa+le, and it is o+0ious that change has ta(en /lace. In order to win this /articular crowdMs acce/tance for a holistic a//roach to lean manufacturing, hard8fact results must +e e0ident. This +eing the case, this cha/ter /resents a series of cell design techniques +ased on hard8fact material which should +e utiliGed when de/lo,ing a lean manufacturing conce/t similar to the one descri+ed in this +oo(. The following series of techniques is to +e used when assessing /roducts and their associated /rocess flow and translating that data into usa+le information for generating a cell design@ 5. Product/quantit, AP/PB anal,sis A/roduct grou/ingB 1. Process ma//ing 3. !outing anal,sis A/rocess, wor( content, 0olume matricesB 4. Ta(t time 9. )or(load +alancing and one8/iece flow =. ell design guidelines :. ell la,out >. Kan+an siGing
M
=9
Product/Luantity Analysis EProduct GroupingF

The first ste/ in this /rocess is to gather and understand /roduct demand data A-igure =.5B. This is accom/lished +, generating a cumulati0e Pareto /ercentage, +, 0olume, of all /roduct stoc((ee/ing units ASKUsB. These data items originate at the customer and /ro0ide a +aseline +, which to +egin demand +eha0ior anal,sis. AnnualiGed /roduct SKU demand data should +e segregated on a monthl,/wee(l,/dail, demand +asis. The source of this information usuall, comes from the +usiness /lan forecast Ain unitsB and co0ers a time horiGon of = to 51 months. $, dis/la,ing the cumulati0e /ercentage, +oth high8 and low80olume /roducts +egin to /resent themsel0es. In addition to the forecast data, it is im/ortant to consider the actual customer order sales data. *oing so accounts for actual demand 0olume and mi" 0ariation, which is im/ortant in/ut for the ta(t time calculation Adiscussed later in this cha/terB. The P/P anal,sis A-igure =.1B loo(s for natural +rea(s in /roduct grou/ings +, sorting the gathered data and determining a fit for /roduction cells +,@ A5B their associated 0olumes, and A1B /roduct alignment characteristics. This is usuall, an iterati0e /rocess and is conducted se0eral times in order to determine a +est fit for each cell t,/e. Product alignment characteristics could include the following criteria@ 5. Align high80olume /roducts together. 1. Align to s/ecific customers, such as original equi/ment manufacturers AF.MsB. 3. Align to s/ecific target mar(ets. 4. Align to common manufacturing /rocesses. 9. Align to configuration commonalit, AsiGe, material, function, etc.B. =. Align to engineering content Astandard 0s. s/ecialB.
:igure =.6 Product 3emand
/*a,
=;
After the /roducts ha0e +een identified and segregated into /roduct grou/ings, the, are sorted +, 0olume and /lotted on a chart. This chart 0isuall, dis/la,s the natural +rea(s in 0olume +, grou/. &ormall,, 42S of the /roducts will account for =2S of the /art 0olume Athis is referred to as the 42/=2 ruleB. )hen a /roduct grou/ing falls into this categor,, it is wise to esta+lish dedicated flow lines/cells with segregated resources in su//ort of this /roduct grou/ing. These /roducts are called r"nner /roducts +ecause the, ha0e high 0olumes, frequent customer orders, and sta+le demand A-igure =.3B. The remaining +alance of /roduct grou/ings will fall into one of two categories. The first grou/ fits a general /ur/ose or fle"i+le cellular o/eration (nown as re)eaters . This categor, has a greater 0ariet, of /roducts, which will +e /roduced across resources that are not dedicated to a s/ecific flow line. Parts that ha0e lower 0olume amounts, 0aria+le order frequenc,, and/or high 0aria+ilit, in o/erational routings will find their wa, into this categor,. The second categor, is that of strangers . This categor, is for miscellaneous items that are +eing /roduced within the /lant as one8off items or that ha0e a 0er, low 0olume or infrequent Aonce /er ,earB demand /attern. These items are usuall, +est managed through M!P II and can +e segregated from the rest of the factor, +,@ 5. .sta+lishing se/arate /roduction area 1. !unning the /roducts once or twice /er month 3. !unning them when ca/acit, is a0aila+le 4. Futsourcing the /roducts
:igure =.9 P/L Analysis
=<
9. !unning them once /er ,ear and holding in finished8goods stoc( =. Ma(ing one final run and eliminating the item from current /roduct offering Hill, in his The ssence o* 2)erations Manage!ent , addresses this same idea of segregating /roducts, onl, his focus is on the mar(et /lace@ H om/anies need to recogniGe that low8, medium8, and high80olume +atch /rocesses handle a 0er, wide range of 0olumes with corres/ondingl, different order8winners. -or com/anies, therefore, to assume that the choice of one /rocess, e0en for a single categor, such as +atch, will /ro0ide su//ort for the le0el of di0ersit, associated with a normal range or /roducts/ser0ices is a mista(e.I
52
In either case, whether +, /roduct alignment criteria or order winners, it is im/ortant to recogniGe that all /roducts are not demanded the same and therefore should not +e managed the same.
Process Mapping
Fnce the /roduct demand +eha0ior is understood, the ne"t area of anal,sis is that of /rocess ma//ing. It is necessar, to (now what o/erations are required to /roduce the /roducts +eing considered for cell design. In the end,
the final design of the cell will need to account and accommodate for all /rocess ste/s, whether accom/lished in the cell or not. $loc( /rocess ma//ing A-igure =.4B is usuall, conducted on the highest 0olume /roducts. The lower
:igure =.; Runner# Repeater# Stranger
Ad(antages: Responsi(e lead2time 'o, unit cost +ig$ e%uipment utili!ation 3isad(antage: Inflexi1le to (ariety Ad(antage: :lexi1le to (ariety 3isad(antages: -nresponsi(e to lead2time +ig$ unit cost 'o, e%uipment utili!ation
=4 0olume /roducts can +e ma//ed se/aratel, if the /rocess ste/s are significantl, differentJ howe0er, this is usuall, not the case. $, actuall, wal(ing the /rocess, documenting the ste/s, and tal(ing with the /rocess owners, a good re/resentation of the /roduct flow and 0olume can +e documented. In addition, to the +loc( /rocess ma/, a s/aghetti diagram A-igure =.9B is created in order to gras/ the magnitude of o/erator and material tra0el in the current /rocess. The reason it is called a s/aghetti diagram is that +, the :igure =.< Block Process Mapping :igure =.4 Spag$etti 3iagram
Ra, materials incoming Slotting operation Bore operation "rigger assy. operation Greasing operation :inal assy. operation :inis$ed goods outgoing Spin test operation +eat2treat operation Manufacturing cell
==
end of the e"ercise of recording the current /rocess the drawing loo(s li(e a +owl full of s/aghetti. This sim/le technique is nothing more than drawing the area under assessment, re/resenting the o/erator and material mo0ement on /a/er with a colored mar(er, and measuring the amount of feet tra0eled for +oth. )hat we can learn from this technique is 0er, illuminating. It is not uncommon for an o/erator to +e tra0eling u/ to half a mile e0er, time there is a need to gather tools and /arts to conduct a machine changeo0er. These two tools are used as sources of in/ut during the cell design /rocess. The, do a good Do+ of ca/turing the Has isI condition and 0isuall, dis/la,ing what is actuall, ha//ening in the /rocess toda,. The, identif, significant o//ortunities for waste elimination or reduction and /ro0ide real data +, which to ma(e decisions, rather than rel,ing u/on HI thin(TI or HI feelT .I
Routing Analysis EProcess# )ork &ontent# *olume MatricesF

!outing anal,sis is nothing more than the assessment of wor(flow /atterns and 0olume//rocess 0ariation. The first ste/ in this anal,sis is the creation of a /rocess matri" A-igure =.=B. This is accom/lished +, /lacing the routings
for each /art of a /roduct on a grid. $, identif,ing all manufacturing /rocesses across the to/ and listing /roducts down the side, a grid is created where each /art routing can +e /h,sicall, drawn. $, dis/la,ing the wor(flow in this manner, it is eas, to see /atterns of commonalit,, resource consum/tion, and re0erse /art flow acti0it,. .ach of these items is an im/ortant factor to consider when esta+lishing cell configuration. The /ur/ose of a wor( content matri" A-igure =.:B is to gather rele0ant man time, machine time, and setu/ time for a /articular /art /o/ulation. After +eing collected, this +aseline information should +e loaded into a data+ase as
:igure =.= Process Matrix
=5 reference data for utiliGation during the cell design /rocess. This data+ase of information can +e gathered in one of at least two different wa,s. The first is strictl, a manual /rocess in which an industrial engineer will conduct a wor( element anal,sis and com/lete a time o+ser0ation form ATF-J -igure =.>B. The :igure =.5 )ork &ontent Matrix :igure =.> "ime 1ser(ation :orm =>
engineer will wal( the /rocess ma/ for each /art and record the actual o/erational data for each of the /rocess ste/s. The engineer will need to (ee/ trac( of +oth the indi0idual o/eration time and the cumulati0e running total time. *e/ending on the o/eration, a series of fi0e to ten recordings should +e enough to accuratel, reflect the /rocess. In addition to the time stud,, inter0iews with the /rocess owners can /ro0ide 0alua+le insight into the e"isting /rocess flow. At times, with certain wor( en0ironments, these Htime studiesI can +e 0iewed in a negati0e light, and /artici/ation +, the sho/ floor can +e difficult to o+tain. It should +e e"/lained that these o+ser0ations are +eing used to tr, to understand the current /rocess and are not +eing used to set /a, rate. If there is still o//osition, then tr, to reach a consensus utiliGing the e"isting wor( element standards. In man, cases, there is so much im/ro0ement o//ortunit, a0aila+le without +eing concerned with changes to the actual wor( content of the /rocess that this is not an issue. A second a//roach would +e to ca/ture data from the e"isting M!P II s,stem. This a//roach is /ro+a+l, more acce/ta+le when tr,ing to address a large /o/ulation of /arts in a short /eriod of time and information accurac, of ;9S is not required. If, howe0er, the root cause of a /ro+lem is critical or an accurate stor, is required, then it is recommended that the anal,sis +e /erformed on data collected directl, from the sho/ floor. This wa, the engineer can not onl, formall, record what is seen +ut also record informall, what is heard through con0ersations with sho/floor /ersonnel. At this /oint, the wor( content of the /roducts has +een recorded and some insight into the /roduct /rocess flow has +een documented. &ow it is time to understand the relationshi/ +etween the two. $, reflecting the /roduct and /rocess flow in a 0olume matri" A-igure =.;B, decisions a+out the cell design +egin to e0ol0e. The 0olume matri" reflects demand and /rocess flow data in /roduction units and minutes/hours. The /lacement of /roduct grou/s on a matri" allows for the calculation of total 0olume +, units and hours for each /roduct and each /rocess. *e/ending on the manufacturing /rocess, the /roduction rate could +e calculated in da,s or wee(s. The hours should reflect three maDor categories@ man time, machine time, and setu/ time Athe setu/ time +eing assumed at once /er da,B. Fne of the o+Decti0es of a lean manufacturer is to +e fle"i+le and res/onsi0eJ therefore, the goal is
to ma(e toda, what is sold toda,. This cannot +e accom/lished if changeo0ers are e"ecuted once /er month. Again referring to ostanGaMs The 9"ant"! Lea)+ 8n S)ee& to Market, the author descri+es a similar /rocess of searching for commonalit,@ H.ach /roduct is re0iewed to identif, the /articular /rocesses or machine o/erations required to manufacture each /roduct. The ne"t ste/ in cell design is to create
=? a cell configuration that is made u/ of the common machines or o/erations identified in the /rocess ma/.I
9
There are two /rimar, outcomes of the routing anal,sis e"ercise@ A5B the segregation of high8 and low80olume /roducts +ased on a reflecti0e 0iew of the manufacturing /rocess, and A1B an understanding of the degree of 0ariation in /roduct 0olume/mi" and wor( content as it relates to cell design. It is through an understanding of these two as/ects that cell design decisions can +e made relati0e to the use of@ 5. Scheduling methodolog, C com/le" mi" 0s. segregated /roduction 1. !ate8+ased, Kan+an, ma(e8to8order /roducts 3. Kan+an +uffers for line im+alances and long setu/ times 4. .qui/ment wor(loads 9. .qui/ment needs =. Staffing needs :. Shift hour requirements
"akt "ime
The word takt comes from the 7erman word for rh,thm or +eat. Ta(t time is the +asis for cell design and re/resents the rate of consum/tion +, the mar(et/lace A-igure =.52B. Ta(t time is where the effort starts, +ecause it is reflecti0e of the customer demand. .0er,thing in cell design is +ased on ta(t time. Ta(t time is often confused with c,cle time. The two are calculated from com/letel, different /ers/ecti0es. ,cle time re/resents the current ca/acit,/ca/a+ilit, of the e"isting o/eration, whereas ta(t time is +ased on /roDected customer demand, not the a+ilit, of the current /rocess to /erform. The ratio for ta(t time has scheduled /roduction time a0aila+le as the numerator and designed
:igure =.? *olume Matrix
Product
SKU A#ol.B
H34;=: A35B -34:>= A1>B H34;>: A13B U>;:9= A52B S/U M S/U M& S/U S/U M& M
35.2 :2.2 13.2 9.2 51; 35.2 :2.2 13.2 19.2 54; 19.2 12.2 12.2 19.2 ;2 ;9.1 ;9.1 ;9.1 ;9.1
S/U
59.2 59.2 4=.9 54.2 55.9 :.2 :; 4=.9 54.2 34.9 59.2 552 59.2 39.2 12.2 59.2 >9 51> 51> 51> 51> 52 52 ::.9 32>.2 34.9 51.2 431 ::.9 32>.2 9:.9 42.2 4>3 42.2 >2.2 42.2 42.2 122
M Total AMin.B M&M& M M&M
5@
dail, /roduction rate as the denominator. -or instance, scheduled time a0aila+le would +e nothing more than a regular >8hour shift minus time for scheduled lunches, +rea(s, meetings, etc. This results in the scheduled time a0aila+le. -or e"am/le, an >8hour shift W A32 minutes for lunch X 32 minutes for two 598minute +rea(sB Y : hours of shift time a0aila+le. The factors that go into de0elo/ing the designed dail, /roduction rate include the +usiness /lan sales forecast and a 0ariation coefficient to co0er customer demand mi"/0olume 0ariation. The com+ination of these factors result in a designed dail, /roduction rate for the cell. -or e"am/le, a forecast demand might +e Monda, Tuesda, )ednesda, Thursda, -rida, Units@ 122 1>2 1=9 159 149 In order to accommodate the 0olume 0ariation and design a le0el /roduction schedule, the cell8designed dail, /roduction rate would +e at 1;2 units /er da,. This would +e +ased on re0iewing the demand 0ariation from da, to da, or wee( to wee(, determining the a0erage demand for the ne"t = to 51 months, and increasing the demand le0el to accommodate fluctuation +, a coefficient. In this case, the a0erage demand is 145 units /lus a 12S coefficient, or a dail, demand of 1;2 units Asee +elowB. The /ercentage is su+Decti0e, +ased on the amount of 0ariationJ howe0er, it is not recommended to e"ceed 92S of the a0erage +ecause a cell cannot +e designed for infinite ca/acit,. 122 units X 1>2 units X 1=9 units X 159 units X 149 units Y 5129 units 5129 Z 9 Y a0erage of 145 units /er da, #ariation coefficient Y A1>2 W 145B Z 145 Y 5:S Arounded to 12SB A145 5.12B Y 1;2 units designed dail, /roduction rate The ta(t time for the e"am/le a+o0e would +e 5.9 minutes. The time a0aila+le in minutes is : hours
=2 minutes, or 412 minutes. *i0iding 412 minutes +, 1;2 units gi0es 5.9 minutes, which is the ta(t time for that cell. To determine ta(t time when there are multi/le /roducts running in the same cell, it is necessar, to calculate the demand of all /roducts for that cell. It is then
:igure =.6@ 3efinition of "akt
Ta(t time ATTB Total time a0aila+le /er da, *esigned dail, /roduction rate Y 88888888888888888888888888888888888888888888888888888888888888888888888888
56 a matter of ta(ing the designed dail, /roduction rate for each of the indi0idual /roducts, adding them together, and using the total demand for all the /roducts as the designed dail, /roduction rate for the cell and di0iding that into the schedule time a0aila+le. This results in one ta(t time for the cell, which encom/asses the demand of all /roducts for that cell.
)orkload Balancing and
ne2Piece :lo,
Fnce a cell ta(t time has +een determined, it is now a matter of com/aring se0eral as/ects of the /rocess and the ta(t time in order to design a +alanced cell. The o/erational elements Amachine time, man time, and setu/ timeB of each /roduct are e"amined with relation to ta(t time. Machine time is com/ared to ta(t time in order to determine if the fi"ed c,cle time of an, /iece of equi/ment is greater than the ta(t time. If this is so, action must +e ta(en to change the a0aila+le time, off load, reduce the c,cle time, change /rocesses, add equi/ment, s/lit demand, etc. If the o/eration remains greater than ta(t time, it will need to +e +alanced with in8/rocess Kan+an in0entor, and/or additional shifts. Man time is com/ared to ta(t time to address two o//ortunities@ A5B autonomation and A1B wor(load +alance. The first o//ortunit,, autonomation, means equi/ment does not need to +e watched in case something goes wrong. Autonomation equi/ment will automaticall, shut off when an a+normalit, is disco0ered, there+, allowing the o/erator to do other 0alue8added wor(. This o//ortunit, is in0alua+le for increasing /roducti0it, and qualit,. The second o//ortunit,, wor(load +alancing, has to do with e"amining the indi0idual wor( elements of each o/eration and determining if the, can +e reduced, shifted, resequenced, com+ined, or eliminated. This effort to +alance the wor(load to ta(t time is a main ena+ler for achie0ing one8/iece flow and minimiGing manufacturing lead8times. Setu/ times are almost alwa,s greater than ta(t time and need to +e addressed as /art of the cell design /rocess. $, com/aring setu/ time to ta(t time, one has a greater a//reciation as to how far setu/s need to im/ro0e in order to create a fle"i+le wor( en0ironment. The initial sta(e in the ground is to /lan on setting u/ each high80olume /roduct e0er, da, and then to schedule the /roduct mi" to run accordingl,. If this cannot +e accom/lished, then /lan to run 1 to 3 da,sM worth at a time and hold the e"cess in0entor, until the customer or customer cell as(s for it Ane0er allow this to e"tend /ast more than a one wee(Ms runB. It will +ecome 0er, clear, 0er, quic(l,, wh, setu/ reduction is so im/ortant, when the su//lier cell has to /h,sicall, 59
hold the e"cess in0entor, until the customer cell as(s for it through a Kan+an. Fnce each of these three o/erational elements is determined for each /roduct, the, are com/ared to the o0erall ta(t time of the cell. This information is /laced on a loading chart for each indi0idual /roduct SKU A-igure =.55B. -rom this /oint, it is a matter of generating ideas and loo(ing for cell design solutions that will +alance the cell wor(load for all /arts and ta(t time.
$, re0iewing the actual wor( elements and either im/ro0ing the o/erations or shifting the wor( content, the cell can +ecome more +alanced com/ared to the ta(t. This is accom/lished much more easil, in an assem+l, en0ironment than in a fa+rication en0ironment, +ut it can +e done in +oth. )hen the o/erations are +alanced to ta(t time, it is /ossi+le to ta(e ad0antage of a one8/iece flow a//roach to wor(flow instead of running in large +atch quantities. )ith one8/iece flow, the manufacturing lead8time, le0el of in0entor,, and feed+ac( on qualit, issues are far su/erior to that of a +atchand8 queue s,stem. In a +atch8and8queue s,stem, indi0idual /ieces are com/leted at an o/eration and sit waiting in queue until the entire +atch is com/lete, at which /oint the, are mo0ed to the ne"t o/eration in sequence and wait in queue for other orders to +e com/leted that arri0ed there first +efore mo0ing forward. In the one8/iece flow a//roach, /roducts are /assed one /iece at a time from o/eration to o/eration with a first8in/first8out A-I-FB /riorit,. Product manufacturing lead8times are now onl, as long as the total of all the ta(ts the, had to get through. -or e"am/le, fi0e o/erations each with a ta(t of 5.2 minute require a manufacturing lead8time of fi0e minutes. Another significant +enefit to one8/iece flow is the im/act on qualit,. There
:igure =.66 'oading &$art
5; are fewer units in flow to rewor( or scra/J if there is a defect found, the feed+ac( is almost instantaneous and correcti0e action is ta(en on the s/ot, not se0eral wee(s later. Fnce we (now the c,cle time for the /rocess and we (now the designed ta(t time, we can ta(e the (nown c,cle time and di0ide it +, the ta(t time to determine the ma"imum staffing requirements for the cell. -or instance, the c,cle time from the e"am/le a+o0e was 9.2 minutes. If ta(t time for that /rocess were 1.9 minutes, then the required staffing would +e two o/erators. Actual head counts will 0ar, with changes in required dail, demand, which is wh, cross8training and o/erator fle"i+ilit, are so im/ortant in su//orting one8/iece flow.
&ell 3esign &riteria

)hen it comes to designing a cell, there should +e esta+lished a set of s/ecific design o+Decti0es or criteria to +e achie0ed. These criteria are to +e the guiding focus for good cell design. The following is a list of general criteria to consider as /art of a good cell design@ 5. $e sure that material flows in one direction. 1. !educe material and o/erator mo0ement. 3. .liminate storage +etween o/erations. 4. .liminate dou+le and tri/le handling. 9. Locate /arts as close as /ossi+le to /oint of use. =. UtiliGe tas( 0ariation to reduce re/etiti0e motion. :. Locate all tools and /arts within eas, reach. >. .nsure short wal(ing distances. ;. .liminate all wait time. 52. Kee/ in mind that 0ertical storage requires less s/ace than horiGontal storage Ainclude Kan+an materialB. 55. La, out machines and tools +, /rocess sequence. 51. In0ol0e o/erators in the design /rocess Aincor/orate economies of motionB.
&ell 'ayout
The cell la,out is a gra/hical re/resentation of the o/erator flow and material flow A-igure =.51B. It de/icts the /ath of the o0erall material mo0ement
through the cell and descri+es the designed o/erator sequence and o/erations. 5<
It shows the staffing le0els, ta(t time, c,cle time, designed in8/rocess stoc( le0els, and qualit, and safet, chec(s required +, the cell. The cell wor( la,out chart can then +e su//orted at a more detailed le0el with gra/hical wor( instructions for each o/eration Asee ha/ter :B. The cell wor( la,out is /rimaril, for training new o/erators, communicating standard wor( to management, and dri0ing continuous im/ro0ement initiati0es.
Aan1an Si!ing
It is at this /oint in the cell design /rocess that the control of wor(flow through Kan+an is determined. The num+er of Kan+ans and quantit, can +e determined in a multitude of different wa,s. There are se0eral different formulas that can +e utiliGed and which are identified in most o/erational management te"t+oo(s. There are /rimaril, rules of thum+ relati0e to the num+er of da,s or wee(s of in0entor, located on the sho/ floor, and there are simulation model calculations +ased on the amount of wor( in /rocess +uilt u/ in wor( queues due to /rocess 0aria+ilit,. The method of calculation is not that im/ortantJ Dust /ic( one and use it. Most Kan+an s,stem im/lementations fail
:igure =.69 &ell 'ayout
54 +ecause of lac( of disci/line or lac( of training, not +ecause someone used the wrong calculation. That ha0ing +een said, a sim/le formula has +een included in this section as a /oint of reference as to how Kan+ans could flow +etween a customer cell and a su//lier cell. 5anban *or!"la+ Ste/ 5. Ste/ 1. /ote+ Lot siGe ma, +e required due to weight, siGe, A,$, categoriGation, setu/ times, common resources, outside su//liers, etc. !e/lenishment time that is less than one shift would result in a two8+in s,stem. !e/lenishment time that is greater than one shift would result in a card s,stem Asee -igure =.53B. -or e"am/le@ :igure =.6; Aan1an System
Aan1an perational Rules &ontinued: <. By t$e time t$e replenis$ment parts arri(e# all parts s$ould $a(e 1een consumed 1y t$e customer cell. If not# t$e remaining parts s$ould 1e placed on t$e first incoming part container E:I: F. 4. Replenis$ment time ,indo,s must 1e ad$ered to 1y t$e supplier cell Ee.g.# 9 $ours# 6 s$ift# ; daysF. Aan1an perational Rules: 6. As a part container is opened at t$e customer cell# a Aan1an card is returned to t$e supplier cell. 9. )$en t$ree cards are recei(ed 1y t$e supplier cell# one day's worth of parts are produced. "$is is to accommodate long c$angeo(ers. ;. )$en t$e fourt$ card is recei(ed# one day's worth of parts are s$ipped.
*esigned dail, /roduction rate re/lenishment time AhoursB a0aila+le time 88888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888 88888888888888 Y Kan+an quantit, Kan+an quantit, lot siGe 888888888888888888888888888888888888888 Y V of cards
5=
Ste/ 5. Ste/ 1.
HAI /arts Y 5/1 da, demand, or 49 /ieces 5>2 /ieces Z 49 /ieces Y 4 cards
.0er, Kan+an should ha0e the minimum identification requirements@ 5. Part num+er 1. Part descri/tion 3. Part quantit, 4. Point of su//l, 9. Point of consum/tion =. HFne ofT cardsI Ae.g., 5 of 3J 1 of 3J 3 of 3B The o0erall a//roach to determining Kan+an siGes and the im/act on in0entor, would include@ 5. 7athering the data required for each /art num+er in the cell 1. UtiliGing the Kan+an calculation to determine the Kan+ans in flow 3. *etermining the target in0entor, le0el +ased on the Kan+an quantit, 4. alculating the designed num+er of in0entor, turns The determination of Kan+ans is an im/ortant ste/ in the cell design /rocess +ecause Kan+ans are the limiting factor for in0entor, le0els Araw material, wor( in /rocess, finished goodsB and are the control element on lead8times. These o/erational as/ects Ain0entor, and lead8timeB ha0e a maDor influence on continuous im/ro0ement within a cellular o/eration. In his +oo(, The :"st68n6Ti!e Breakthro"gh+ 8!)le!enting the /ew Man"*act"ring Basics , Ha, descri+ed a test for determining if a cell is trul, a Dustin8 time wor( cell@ HThe first test is whether the /roduct is flowing one at a time. TThe second test to see if a machine cell is trul, a EIT cell is whether the machine cell has the fle"i+ilit, to +e o/erated at different out/ut rates and with different crew siGes.I
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Although I would agree that these two as/ects should +e e0ident in order to ha0e a cell, I would ho/e we ha0e a greater a//reciation for Dust how man, other as/ects are necessar, in order to ha0e a trul, successful lean manufacturing cell.
;2 /ieces 59 hours :.9 hours 8888888888888888888888888888888888888888888888888 Y 5>2 /ieces
55 &ow that the ste/s for cell design ha0e +een identified and we ha0e greater insight into the im/act of material flow through the factor,, it is time to address those as/ects which la, at the foundation of continuous im/ro0ement and /ro0ide sta+ilit, to the cell C namel,, the Process ontrol element.
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Process &ontrol Element
rocess ontrol focuses on sta+iliGing the /rocess, institutionaliGing the
change, and dri0ing continuous im/ro0ement acti0ities. The /roduction /rocesses of man, manufacturing o/erations are not in control nor are the, /erforming at the le0els necessar, to su//ort a lean en0ironmentJ therefore, there is a need to address these areas as /art of the im/lementation. After a change has +een made to a /rocess, it +ecomes necessar, to Hloc( it downI and maintain it as the new standard for o/eratingJ howe0er, after ha0ing set the new standard, the /erformance le0el should not +e limited to that standard, so continuous im/ro0ement tools are used to esta+lish a new le0el of /erformance. A good management /ractice to consider im/lementing would +e that of e"/ecting standards to im/ro0e twice /er ,ear. According to Shingo, in A St"&y o* the Toyota Pro&"ction Syste! , To,ota is e"tremel, rigid in regard to its standards and e"/ects continuous im/ro0ement@ HThe To,ota /roduction s,stem demands that all wor( +e /erformed within standard times, and sho/ su/er0isors are charged with holding wor(ers to those standards. TSho/ su/er0isors are encouraged to feel em+arrassed when the same standard o/erating charts are used for a long time +ecause im/ro0ements in the sho/ o/erations should +e made continuousl,.I
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This cha/ter deals with man, of the institutionaliGation as/ects of lean manufacturing and descri+es methods that can +e utiliGed to foster the continuous im/ro0ement as/ects of a lean manufacturing en0ironment. This last /rimar, element, Process ontrol, focuses on a num+er of lean manufacturing as/ects that sta+iliGe the standard methods of wor(ing and then continuall, /ursues the setting of new standards for those methods.
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This element +rings to light se0eral acti0ities that la, the foundation necessar, for a com/an, to reach world8class le0els of /erformance, and it is the /ursuit of these acti0ities that sets the wheels of continuous im/ro0ement in motion, there+, de0elo/ing /rocesses that are more ro+ust, relia+le, and /redicta+le. This cha/ter highlights si" im/ortant acti0ities relati0e to Process ontrol@ 5. Single8minute e"change of dies ASM.*B 1. Total /roducti0e maintenance ATPMB 3. Po(a8,o(e Afail safeB 4. 9S Ahouse(ee/ingB 9. #isual controls =. 7ra/hic wor( instructions .0en though these do not address all as/ects of the Process ontrol element, the, do /ro0ide enough insight for an organiGation to initiate action on some of the more critical areas.
Single2Minute Exc$ange of 3ies

The im/lementation of setu/ reduction is a cornerstone for an, lean manufacturing /rogram. The de/endenc, on fle"i+ilit, Aes/eciall, in fa+ricationB is /aramount to allowing le0el /roduction schedules to flow. -ollowing are +enefits of the single8minute e"change of dies ASM.*B@
5. .qui/ment changeo0er time measured in increments of less than 52 minutes 1. Minimal loss to through/ut time on equi/ment 3. The a+ilit, to run a greater 0ariet, of /roduct mi" across a gi0en resource 4. $uilding toda, onl, what is needed toda, The SM.* /rocess is not focused on the reduction of total time s/ent doing setu/s, +ut rather on the /ursuit of conducting more setu/s in the same amount of time. $, cutting changeo0er time in half, a cell can now conduct twice as man, setu/s in the same amount of time. $, cutting them in half again, a cell can now conduct four times as man, setu/s in the same amount of time. The /rimar, o+Decti0e is to +uild fle"i+ilit, into the /rocess. Shigeo Shingo de0elo/ed SM.* as a manufacturing consultant to Ea/anese com/anies during the /ost8)orld )ar II era. It too( se0eral ,ears for
>6 him to /erfect the /rocess of setu/ reduction and design it as a structured set of ste/s used to deli0er incredi+le ca/a+ilit, to organiGations that ta(e ad0antage of this com/etiti0e wea/on. The /rocess is not terri+l, difficult, and as much as :9S of the +attle has to do with a /ositi0e attitude. As Shingo states in The Sayings o* Shigeo Shingo+ 5ey Strategies *or Plant 8!)rove!ent @ HItMs the easiest thing in the world to argue logicall, that something is im/ossi+le. Much more difficult is to as( how something might +e accom/lished, to transcend its difficulties, and to imagine how it might +e made /ossi+le.I
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The /rocess has three +asic ste/s@ A5B segregate the acti0ities, A1B recategoriGe, and A3B reduce or eliminate ste/s as the, are done toda,. In ste/ one, identif, all the acti0ities in the /rocess. T,/icall,, most com/anies do not reall, (now what their la+or force has to go through in order to ma(e a setu/. It is not uncommon for an o/erator to ha0e to tra0el half a mile A1922 feetB in order to accom/lish all the tas(s necessar, to ma(e a setu/. *onMt Dust ta(e m, word for it. )al( the entire /rocess sometime. 'ou will +e sur/rised at what ,ou learn. Fnce all the ste/s ha0e +een documented for the setu/ /rocess, the, need to +e segregated into two categories. The first categor, is that of internal setu/ C those items that ha0e to +e done while the machine is down. The second categor, is that of e"ternal setu/ C those items that can +e done while the machine is running A-igure :.5B. )hen the acti0ities ha0e +een identified and segregated, the ne"t ste/ is to re8categoriGe or shift as man, acti0ities as /ossi+le from internal to e"ternal. T,/icall,, +etween shifting acti0ities from +eing internal to e"ternal
:igure 5.6 Identify Internal (s. External Setup
% % % % % !etrie0e and stage /arts, tools for ne"t lot Pre8heat, /re8measure, /re8locate #erif, tool functionalit, lean and store tools Mo0e /arts to ne"t o/eration
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and conducting some good house(ee/ing /ractices, changeo0er time can +e reduced +, 92S. Fnce setu/ acti0ities ha0e +een documented and re8categoriGed, the last ste/ is to loo( at sim/lif,ing the setu/ /rocess for +oth internal and e"ternal acti0ities. In0estigate standardiGing the setu/, minimiGing the utiliGation of +olts and adDustments, and utiliGing sim/le one8turn t,/es of attachment
methodologies and such techniques as cams, interloc(ing mechanisms, slotted +olts, secured washers, etc. Stri0e to ma(e the setu/ /rocess standard, consistent, re/eata+le, and one that em/lo,ees can learn. Too often statements are made a+out a /articular setu/ /rocess +eing too highl, s(illed or too +lac( art or requiring too man, ,ears of e"/erience. All of these issues need to +e designed out of the setu/ /rocess. Eust as Shingo stated in A Revol"tion in Man"*act"ring+ The SM 1 Syste! @ HIt is generall, and erroneousl, +elie0ed that the most effecti0e /olicies for dealing with setu/s address the /ro+lem in terms of s(ill. Although man, com/anies ha0e setu/ /olicies designed to raise the s(ill le0el of wor(ers, few ha0e im/lemented strategies that lower the s(ill le0el required +, the setu/ itself.I
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-ollowing the three +asic ste/s, utiliGing the techniques mentioned, and ha0ing an o/en mind a+out the /ossi+ilities are all (e, ingredients to ma(ing a SM.* /rogram flourish.
"otal Producti(e Maintenance

A second cornerstone in su//ort of a lean manufacturing en0ironment is that of total /roducti0e maintenance ATPMB. .qui/ment is integral to an, manufacturing en0ironment, and the relia+ilit, of equi/ment in a lean en0ironment is /aramount to a trul, successful im/lementation. As in0entor, le0els are reduced, the u/time on machiner, +ecomes e0en more im/ortant. $ecause there is little in0entor, to +uffer un/lanned downtime in a lean en0ironment, when a machine goes down the entire /roduction line goes downJ therefore, a formal TPM /rogram is instrumental in su//orting a lean manufacturing im/lementation. There are three main as/ects of a TPM /rogram@ /re0entati0e maintenance, correcti0e maintenance, and maintenance /re0ention. .ach one of these com/onents has a different mission and required outcome as /art of the TPM /rogram. .ach has a significant role to /la, and is necessar, for world8class /erformance to +e sustained. The first, /re0entati0e maintenance, focuses on /re0enting +rea(downs from ha//ening and is +, far the most recogniGed acti0it, relati0e to TPM.
>; Pre0entati0e maintenance is concerned with the u/time or a0aila+ilit, of equi/ment. The effort here is aimed at /erforming /re0entati0e maintenance actions on equi/ment in a /re/lanned/scheduled manner, as o//osed to in an un/lanned or chaotic manner. Also, the inclusion of o/erators in this /rogram, s/ecificall, to conduct dail, maintenance on the equi/ment and identif, a+normalities as the, occur, is /aramount to successful /re0entati0e maintenance. $, doing this, the through/ut and a0aila+le ca/acit, on equi/ment are significantl, im/ro0ed. orrecti0e maintenance concentrates on im/ro0ing re/aired equi/ment. The idea here is that if com/onents from the original equi/ment (ee/ +rea(ing, wh, not re/lace them with something +etterO -i"ing them with an im/ro0ed com/onent results in longer equi/ment life and more u/time from the equi/ment. Maintenance /re0ention is an area that most com/anies neglect and /a, 0er, little attention to when designing or /urchasing new equi/ment. $ecause one of the (e, ingredients of a successful TPM /rogram is that of dail,
o/erator Hautonomous maintenance,I it is im/erati0e that equi/ment +e eas, to maintain on a recurring +asis. If the new machiner, is difficult to lu+ricate, if +olts are difficult to tighten, and if it is im/ossi+le to chec( critical fluid le0els, then it is 0er, unli(el, that o/erators will +e moti0ated to monitor equi/ment on a dail, +asis. The total life8c,cle costs on equi/ment must +e e"amined when /rocuring new machines, not Dust the one8off, nonrecurring costs. In su//ort of TPM as /art of a lean manufacturing im/lementation, the information relati0e to downtime on equi/ment is im/ortant. Most of the time, if an, information is collected at all, it is when equi/ment has crashed and the cause for the downtime condition is documented. .0en though this is good, it /ro0ides onl, a /artial /icture as to the true through/ut loss on equi/ment. There are in actualit, si" main reasons, with associated causes, for through/ut losses on machiner, A-igure :.1B. Shirose identified these losses in his +oo(, TPM *or $orksho) Lea&ers , and declared them to +e negati0e o+stacles to efficienc,@ HThere are two wa,s to im/ro0e equi/ment efficienc,@ a /ositi0e wa, and a negati0e wa,. TThe negati0e was is +, eliminating the o+stacles to efficienc, C o+stacles that in TPM are called the si" +ig losses.I
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.ach of these losses has an im/act on the through/ut and /lanned ca/acit, of equi/ment. T,/icall, +rea(down is reall, the onl, loss for which we ca/ture information, although all si" lead to a reduction in /roducti0it,. $rea(down and setu/ Achangeo0erB ha0e an im/act on machiner, a0aila+ilit,. Minor sto//age and reduced s/eed ha0e a direct influence on the /roducti0it, ><
of equi/ment when it is running. Pualit, and startu/ ,ield certainl, ha0e an effect on a com/an,Ms a+ilit, to /roduce, /articularl, when a /ortion of 0alua+le ca/acit, is s/ent on /roducing /oor8qualit, /roduct. A technique used to (ee/ the si" +ig losses in chec( is that of o0erall equi/ment effecti0eness AF..B, which is measured as a /ercentage and utiliGes information from un/lanned downtime, machine c,cle time, and /rocess ,ield to determine which of the si" +ig losses are ha0ing the greatest im/act, there+, /ro0iding insight as to where to focus im/ro0ement efforts. An a//reciation of these si" +ig losses and how to reduce their effect on equi/ment resources within the /lant will go a long wa, toward su//orting a lean manufacturing /rogram.
Poka2Yoke E:ail SafeF

Human +eings will in0aria+l, ma(e mista(es. It is not /ossi+le to remem+er e0er,thing that has to +e done at e0er, ste/ of /roducing e0er, /roduct with e0er, Do+. Peo/le will ma(e errorsJ it ha//ensJ howe0er, errors are the not same as defects. A defect is what ta(es /lace after an error occurs. $, sorting good /roduct from defecti0e /roduct at the end of the /rocess, a com/an, cannot ho/e to achie0e a defect8free en0ironment. If, howe0er, errors are caught +efore the, lead to defects, then a defect8free en0ironment +ecomes /ossi+le. This is where the /ower of Po(a8,o(e comes into /la,. Po(a8,o(e, another as/ect de0elo/ed +, Shingo after )orld )ar II, in conDunction with source ins/ection, was designed to focus on the /ursuit of qualit, at the source and ca/turing feed+ac( on defects as close as /ossi+le to the root cause. In
;ero 9"ality Control+ So"rces 8ns)ection an& the Poka6 4oke Syste! , he states@ HA Po(a8,o(e s,stem /ossesses two functions@ it can carr, out 522 /ercent ins/ections and, if a+normalities occur, it can carr, out immediate feed+ac( and action.I
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:igure 5.9 "otal Producti(e Maintenance: Six Big 'osses

Breakdown: :ailed function and reduced function Setup and adjustment: Imprecise and nonstandard measurement Idling and minor stoppage: sudden disruptions Reduced speed: actual (s. designed Quality defects and rework: sporadic and c$ronic Startup yield: process insta1ility
>4 Po(a8,o(e, or mista(e /roofing, is accom/lished through the de/lo,ment of sim/le, ine"/ensi0e de0ises designed to catch errors so the, do not +ecome defects. These de0ices are /laced in the /rocess to ensure that it is 0er, eas, for the o/erator to do the Do+ correctl, or 0er, difficult for the o/erator to do the Do+ incorrectl,. The tools could +e /h,sical, mechanical, or electrical A-igure :.3B. A Po(a8,o(e could +e as sim/le as a chec(list for the o/erator or technician to ensure that all ste/s in the /rocess are co0ered, much in the same manner as /ilots going through a /re8flight chec(list +efore ta(ing off. The intent of the Po(a8,o(e is to sto/ defects at the source, to /ro0ide immediate feed+ac( as to the cause, and to /re0ent the /assing on of defecti0e /roducts to the ne"t customer in the /rocess.
4S E+ousekeepingF
.0er,thing has a /lace and e0er,thing in its /laceU If it does not warrant a la+el, it does not warrant a /lace in the areaU These are words to li0e +, in a lean manufacturing en0ironment. So, what is so im/ortant a+out house(ee/ingO According to authors Henderson and Larco A Lean Trans*or!ation+ (ow To Change 4o"r B"siness into a Lean nter)rise B, it is 0er, im/ortant@ HMost /eo/le underestimate the im/ortance of safet,, order, and cleanliness in the wor(/lace. Fur former colleagues at To,ota and Honda will tell ,ou that 19 to 32S of all qualit, defects are directl, related to this issue.I
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:igure 5.; Examples of Error2Proof 3e(ices
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)hat is this thing called 9S A-igure :.4BO -or all /ractical /ur/oses, it re/resents sim/le, sound, structured, s,nchronous, ser0icea+le house(ee/ing. &o, that is not what 9S stands forJ rather, the words are all Ea/anese, coined +, To,ota@ 5. Seiri AsiftingB 1. Seiton AsortingB 3. Seiso Aswee/ingB
4. Seikets" AstandardiGeB 9. Shits"ke AsustainB The first, Seiri , has to do with clearing the area of those items that are not +eing used on a regular +asis Ae.g., the ne"t 32 da,sB. It is a matter of sifting through and se/arating the clutter from the items that are needed to ma(e it easier to wor(, easier for material to flow, and easier for o/erators to mo0e, in addition to im/ro0ing utiliGation of s/ace. Seiton deals with identif,ing and arranging items that +elong in the area. These items should all +e sorted and la+eled as +elonging in that area. If the item is not im/ortant enough for a la+el, then it is not im/ortant enough to sta, in the area. This ma(es recognition of the /ro/er tooling, resources, materials, etc. e"tremel, 0isi+le.
:igure 5.< 4S E+ousekeepingF H Arrange and identify all items in t$e cell Eno loose toolsF H 'a1el locations for e%uipment# tools# and materials H &lean up daily Eno grit or grimeF H Be a1le to (isually identify any a1normalities H -tili!e $ousekeeping audit c$ecklist
Screwdri0er Hammer )rench
>5 Seiso has to do with maintaining order +, swee/ing and /ic(ing u/ on a regular +asis Ae.g., dail,, +i8wee(l,B. A /roduction area should +e neat and clean at the end of e0er, shift. There should +e nothing missing or out of /lace. All tools and materials should +e accounted for. A well8maintained area should +e a+le to accom/lish this using less than 1S A52 minutesB of the dail, scheduled shift time. Seikets" is concerned with management disci/line to enforce the standard acti0it,. If the house(ee/ing acti0it, does not +ecome institutionaliGed within the o/eration, the area will not sta, clean and em/lo,ees will re0ert +ac( to the old wa,s 0er, quic(l,. A regular, formal audit with quantitati0e and qualitati0e e"/ectations should +e conducted and scores /osted for areas of res/onsi+ilit,. Assigned areas of the floor are im/ortant, +ecause if e0er,+od, has res/onsi+ilit,, then no+od, has res/onsi+ilit,. Shits"ke is managementMs res/onsi+ilit, to reinforce the im/ortance of house(ee/ing and to demonstrate leadershi/ +, follow8through and wal(ing the tal(. Peo/le will /a, attention more to what management does than what the, sa,. Proclaim that house(ee/ing is im/ortant, clarif, e"/ectations, wal( the sho/ floor, reward those who are /erforming, and constructi0el, disci/line those who are not.
*isual &ontrols
The area of 0isual controls encom/asses such conce/ts as line8of8site management, or the a+ilit, to wal( onto the sho/ floor and in a matter of minutes (now the status of the o/eration, what might +e a+normal, how the material
is flowing, what Do+ is in wor( and what Do+ is ne"t to go in wor(. It also includes the conce/t of signage, which means that e0er,thing is dis/la,ed, mar(ed, documented, and re/orted, so much so that an, indi0idual off the street could wal( into the factor, and gi0e a /lant tour. A (e, as/ect of 0isual control is that of sho/floor /erformance measurement, accom/lished through the dis/la, of a handful of measures Athree to fi0eB on the sho/ floor for e0er,one to see and understand. As was stated in ha/ter 4, these are to +e measures that are created, owned, monitored, controlled, and understood +, those in the area. If a measure is created in another area, then +rought to the sho/ floor and /osted in another area, it is 0er, unli(el, that /eo/le wor(ing in that area will reall, (now what it means. )orse ,et, the, could not e"/lain how their Do+ /erformance relates to that measurement. It is im/ortant for indi0iduals to understand whether their areas are /erforming to /lan, it is im/ortant for them to record how >>
the, are doing according to that /lan, it is im/ortant for them to ta(e res/onsi+ilit, for that /erformance, and it is im/erati0e that the, (now how to im/ro0e that /erformance. In addition, the, need a wa, to highlight /ro+lems in order to recei0e /rom/t su//ort and correcti0e action. The utiliGation of a 0isual control +oard or communication +oard A-igure :.9B will /ro0ide the means to dis/la, /erformance status and communicate /ro+lems. T,/icall,, the communication +oard is di0ided into two hal0es. Fne half contains the sho/floor measures of /erformance Ae.g., schedule adherence, qualit,, c,cle time, etc.B. The other half contains a /ro+lem section, where the o/erators can document /ro+lems the, are ha0ing. These /ro+lems are re0iewed on a dail, +asis, actions assigned, resolution dates committed, and mitigating actions recorded. This /ro0ides 0isi+ilit, to sho/floor /ro+lems that are otherwise hidden or /laced on a list to +e resol0ed someda,. The im/ortance of 0isual controls is how the, ma(e im/ro0ement acti0ities, issues, /erformance status, /ro+lems, and o/erational rules 0isi+le.
Grap$ic )ork Instructions

To consistentl, con0e, how a Do+ is to +e /erformed according to documented standard wor( sheets, the message needs to +e communicated in an easil, recogniGa+le format. Te"t8+ased wor( instructions are /ro+a+l, the least attracti0e means of accom/lishing this tas( and ,et are +, far the most widel, utiliGed, /ro+a+l, +ecause this has +een the easiest wa, to +ring information
:igure 5.4 &ommunication Board
>? to the sho/ floor. The /ro+lem with te"t is that it is 0er, de/endent not onl, on an indi0idualMs a+ilit, to learn from a written format +ut also on an indi0idualMs a+ilit, to accuratel, descri+e actions as /art of a series of motions, not to mention the cross8cultural language +arriers that can e"ist within the /lant or when communicating glo+all, regarding /roducts or /roduction methodologies. In the /ast, A* drawings and +lue/rints were the onl, means of gra/hicall, de/icting wor( and were 0er, time consuming to u/date and maintainJ howe0er, with the ad0ent of digital cameras, 0ideo recorders, and /resentation software, there is no e"cuse for not /ro0iding gra/hic instructions in the sho/ area. 7ra/hic8+ased wor( instructions are a far more effecti0e means of communication than sim/l, te"t A-igure :.=B. The information can +e ca/tured quic(l, through a digital camera and mani/ulated with software to add color8coded legends that identif, wor( content +, o/eration, qualit,
chec(s, s/ecial notes, etc. The +eaut, of color is that it can transcend language +arriers. If there is a concern o0er em/lo,ees who are color +lind, ma(e use of standard s,m+ols. A green circle could re/resent wor( contentJ a ,ellow triangle, a qualit, chec(, etc. ."/loded 0iews, /articularl, of assem+l, o/erations, are of tremendous +enefit, +ut the, do require s/ecific software a//lications.
:igure 5.= Grap$ic )ork Instructions
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.ach /icture or slide can re/resent an o/eration or de/ict a +ill of material for that o/eration with a date, re0ision, and signature +loc( for configuration control. )hen there is an im/ro0ement to the /rocess or the introduction of a new /art, the old gra/hic can +e /ulled and re/laced with a new one in as little as 32 minutes. The da,s of a manufacturing engineer ha0ing to s/end se0eral da,s tr,ing to maintain and u/date wor( instructions are o0er. The de/lo,ment of all fi0e of these /rimar, elements of lean manufacturing is essential for most com/anies to achie0e true world8class le0els of /erformance. It is through the /ro/er sequencing and timel, im/lementation of these elements that a com/an, can achie0e that illustrious le0el of /erformance. $ut, once this incremental change in /erformance is achie0ed, how is it sustainedO The ne"t cha/ter will +riefl, touch on this issue.
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Sustaining t$e &$ange
ow comes the answer to the great m,ster, of how to (ee/ things the wa, ,ou want them. The answer is T ,ou donMtU 'ou do not want this /rocess to +e static. 'ou most assuredl, do not want it to fall +ac(, +ut ,ou do not want it to sta, the same either. )hen com/anies sta, the same, the, fall +ehind. hange is a constantJ therefore, constantl, loo(ing for new wa,s to im/ro0e the +usiness is the name of the game. If com/anies are not im/ro0ing, at least at the rate of inflation, then the, are losing, and ha0ing to face /ricing /ressures from the mar(et Dust com/ounds the seriousness of the situation. om/anies need to constantl, /ush themsel0es to challenge the stat"s -"o +, /erforming +etter toda, than ,esterda,. So how is this achie0edO -irst of all, there is a need to institutionaliGe changes that ha0e +een made to this /oint +, doing the following@ 5. *e0elo/ and de/lo, house(ee/ing audit chec(lists Ai.e., 9SB and ha0e the management disci/line to re0iew them at least once a month. 1. All o/erational wor( is standardiGed, dis/la,ed, utiliGed as a +asis for continuous im/ro0ement acti0ities, and im/ro0ed twice /er ,ear. 3. .ach manufacturing cell team is e"/ected to conduct a KaiGen e0ent e0er, quarter. 4. Sho/floor /erformance measures are u/dated +, the cell team dail,. 9. Pro+lem +oards are re0iewed at the end of e0er, da,. =. ell teams hold standu/ meetings e0er, da, to re0iew /rogress and issues.
:. Actual setu/ times are recorded with each changeo0er. >. ross8training s(ill matrices are u/dated quarterl,. ;. .qui/ment is cleaned and chec(ed on a dail, +asis. 52. ustomers and su//liers are 0isited +, the cell team each quarter.
0
?9
After the change has trul, +een institutionaliGed, a focus on growing the +usiness through new /roducts or mar(ets and /roduction ca/a+ilit, is ne"t. The cell team accom/lishes this +,@ 5. Loo(ing at the /roduci+ilit, of its e"isting /roduct +ase. 1. *etermining how lean the current /roduct design is and identif,ing where o//ortunities e"ist to ta(e additional waste out of the design. 3. UtiliGing failure mode and effects anal,sis A-M.AB to im/ro0e the ro+ustness of the manufacturing /rocess and minimiGe ris( of /oorqualit, out/ut. 4. Loo(ing for o//ortunities to /ilot new /roduction. 9. Loo(ing for /otential im/ro0ements within the su//lier +ase. =. Understanding cost, qualit,, and schedule issues with su//liers and hel/ing them to identif, and eliminate waste from their /rocesses. )hen ,ou ha0e reached this le0el of ca/a+ilit, within ,our manufacturing organiGation, ,ou are definitel, well ahead of the /ac( and ha0e reached a le0el 0er, few ha0e actuall, achie0edJ howe0er, do not sto/ there. !emem+er that lean manufacturing is the continual /ursuit of im/ro0ement and it is a Dourne, that ne0er ends.
III
?4
P-""I0G I" A'' " GE"+ER
?
Setting t$e Stage
his section of the +oo( shows how to design and de/lo, a holistic lean manufacturing /rogram. The following cha/ters contain a fictitious +usiness stor, in which man, of the tools and techniques descri+ed in this +oo( are utiliGed. Picture ,ourself in these cha/ters as the new *irector of Lean Manufacturing for this com/an,, and follow along in the stor, to learn how to design, de0elo/, and de/lo, ,our own lean manufacturing /rogram.
The stor, descri+es a current +usiness situation and demonstrates use of the tools 0ia com/leted tem/lates to show how a lean manufacturing /rogram is de0elo/ed and managed. Ta(e the time to read through the stor, and understand the tem/lates, as learning +, doing is one of the +est wa,s to retain (nowledge. F+0iousl,, one cannot instantl, gras/ all of the /otential issues that need to +e addressed when de/lo,ing a lean manufacturing /rogramJ howe0er, I ha0e tried to include man, of the most common issues that ha0e arisen o0er the ,ears during m, im/lementations. I ho/e ,ou find this stor, +oth worthwhile and entertaining.
Setting
!egal, Inc., in incinnati, FH, has +een in +usiness since 5;49. The, started out as a small, su+contract su//lier to the hea0, industrial ca/ital8goods mar(et and +egan to grow when the, /ic(ed u/ small, niche8mar(et contracts for the machining of s/ecialt, +earings, housings, and /istons. The housing and /iston wor( came as an offload o//ortunit, when the /rimar, su//lier was o0erloaded. !egal did good, high8qualit, wor( and had e"cellent res/onse time.
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F0er the ,ears, !egal was a+le to e"/and the +usiness through niche growth in the mar(et/lace and /ositioned themsel0es as the Hgo toI /la,er with the original equi/ment manufacturers AF.MsB when it came time to design new /roducts. Their re/utation and e"/ertise o/ened man, doors. These o//ortunities led to further growth in the mar(et and growth within the +usiness. The com/an, relocated to a 922,2228square8foot facilit, across town in 5;>2 and in0ested significantl, in additional ca/ital equi/ment and 0ertical integration to meet the demands of the increased 0olume. The, had +een achie0ing re0enue increases of a+out 59S each ,ear for the last 9 ,ears and were enDo,ing o/erating /rofits of 12S, with no end in sight. So, e0er,thing was loo(ing good until one da, one of their first F.M customers, who had +een with them since the 5;92s, announced the rollout of a new /iece of equi/ment which !egal (new nothing a+out. )hen the com/an, as(ed the F.M wh, !egal had not +een utiliGed for this new design, the, were told that a different su//lier had +een more res/onsi0e +, offering shorter lead8times, more consistent deli0er, /erformance, and more relia+le /roduct qualit,, /lus the, /romised a cost reduction of 9S each ,ear for the life of the contract and no hassles a+out deli0ering /roducts to the F.M /lants as needed on a dail, +asis. !egalMs management 0iewed this as onl, a minor set+ac(, until a second long8time F.M canceled an e"isting contract, /aid the /enalt, for doing so, and went with a com/etitor for the same reasons. )ith this additional loss in +usiness, in order to maintain their 12S o/erating /rofit, management +elie0ed a reduction in wor( force was the ne"t logical alternati0e. Fn the da, the, were to ma(e the final decision, a recruiter called the #ice President of F/erations at !egal and e"/lained that he had the resum[ of an indi0idual that the com/an, might +e interested in seeing. $ecause the 0ice /resident and the recruiter were long8time fishing +uddies, he agreed to re0iew the resum[ and had it fa"ed o0er.
Main &ast
Presi&ent+ $rian Ste0ens 'ice Presi&ent o* 2)erations+ *a0id $rice 'ice Presi&ent o* Sales an& C"sto!er Service+ $ar+ara Stearn 'ice Presi&ent o* Pro&"ct 1evelo)!ent+ Samuel $utton 1irector o* ("!an Reso"rces+ Heather *ale Controller+ Eose/h $illings 1irector o* 8n*or!ation Syste!s+ Paula )right
Setting the Stage
?5 1irector o* Material Manage!ent+ Ste0e Phel/s Plant Manager+ !ichard Eohnson Manager o* Pro&"ction ngineering+ arl )ithers %irst6Line S")ervisor+ Ea(e Holden 1irector o* Lean Man"*act"ring <newly hire&=+ !o+ert Eames
3iagnostic Information
Sales >??@ A \=3 M Pro*it >??@ A \51.2 M Sales >??B A \:3 M Pro*it >??B A \54.= M Sales >??? A \>3 M Pro*it >??? A \5:.4 M Sales CDDD A \=9 M A/roDectedB Pro*it CDDD C \53.2 M A/roDectedB (ea&co"nt >??@ A 412 (ea&co"nt >??B A 4>: (ea&co"nt >??? A 993 (ea&co"nt CDDD A 433 A/roDectedB
"$e Inter(ie,
The ne"t da,, !o+ert Eames arri0ed at !egal, Inc., for an >@22 a.m. inter0iew. He was ushered into the +uilding and de/osited at the office of *a0id $rice,
the #ice President of F/erations. At a+out >@12, *a0id rushed into the office, out of +reath, and introduced himself to !o+ert. H7ood morningU This /lace is a mad house,I e"claimed *a0id. HI donMt (now how we could ha0e lost that +usiness, +ut we will Dust ha0e to suc( it u/ and wor( harder to ma(e it ha//en, I guess.I H)hat +usiness is thatOI inquired !o+ert. HFh, a long8time customer of ours, $L* Industries, has decided to design and de0elo/ its latest /roduct without in0ol0ing us.I H)h, did the, do thatOI as(ed !o+ert. HFh, the, made some e"cuse a+out us not +eing res/onsi0e to their needs and our continuing to raise /rices on them,I re/lied *a0id. H)ere the, correctOI H&ot as far as IMm concerned. 'ou see, we ha0e +een doing +usiness with them for nearl, 42 ,ears, and Dust +ecause some new /la,er has come into the mar(et/lace, ma(ing im/ossi+le claims a+out reducing /rices ,ear after ,ear and res/onding to their schedule needs on a dail, +asis, the, ha0e decided to change their lo,alties.I ?>
H an !egal meet those identified /erformance requirementsOI H&o wa,U If we made those (inds of outrageous commitments, we would lose our shirtU Fur qualit, would suffer, and the rest of our customer +ase would +e im/acted.I HIf the mar(et/lace is as(ing for those (inds of requirements, and ,our com/etition is demonstrating the a+ilit, to satisf, those requirements, donMt ,ou thin( ,ou ma, ha0e more than a short8term /rofita+ilit, /ro+lemOI queried !o+ert. HI am not so sure that this com/etitor, $lue Iron, can actuall, deli0er what the, sa,. Their o/eration is located in the southwest, which is not as geogra/hicall, close to $L* as we are, and, +esides, the deli0er, res/onsi0eness that $lue Iron is claiming is unheard of in our industr,,I e"/lained *a0id. H)ell,I !o+ert said, Hm, +rother8in8law ha//ens to wor( at !egional onsolidated, which is a maDor customer of $lue Iron, and the, d o deli0er on those e"/ectations. The, do reduce /rices each ,ear through cost reductions and the, do res/ond to scheduled needs of the customer.I H*o the, reall,OI H'es, the, doU Let me as( ,ou, do ,ou get out much to tal( with customers or do ,ou com/are !egalMs /roducts to the com/etitionMsOI as(ed !o+ert. H&o,I said *a0id, rather shee/ishl,. H)e donMt get out much at all. So much of our time is s/ent (ee/ing the o/eration running that there is no time to get out and see customers or com/are /roducts.I HLet me as( ,ou this. )hat /ercentage of ,our current sales +ase is made u/ of new /roductsO I mean /roducts that ha0e +een introduced within the last three ,ears,I as(ed !o+ert. H)e ha0e targeted a+out 9 to 52S. )e are currentl, at a+out 9.I HHow ha0e ,ou +een a+le to sustain the growth ,ouM0e had without introducing new /roducts at a higher rateOI HMost of the sales growth, in the last cou/le of ,ears, has come from /rice increases on our current /roducts, +ecause our unit 0olume has +een flat.I H)ould ,ou e"/ect those e"isting mar(ets to ha0e requirements similar to $L* in the near futureOI as(ed !o+ert.
HI donMt (now. I guess I ne0er reall, thought a+out it.I H)ell, if !egal, Inc., has an, indication that this could +e the new required le0el of /erformance in the mar(et/lace, I would recommend that ,ou loo( at a different wa, to align ,our o/erations to /erform at that new le0el,I !o+ert offered. H*o ,ou (now of a wa, to do thisOI HThatMs wh, IMm here. So, letMs tal(TI
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+o, It Begins
hen *a0id introduced !o+ert to !egalMs to/ management team as the new *irector of Lean Manufacturing, there was a fair amount of e,e rolling and +lan( stares in the room. *a0id e"/lained to the grou/ that, due to the recent de0elo/ments with $L*, there ma, +e the need to re8e"amine how the, currentl, conduct +usiness. HThere is an indication,I said *a0id, stretching the truth a little, Hthat this ma, +e onl, the +eginning of a long wa0e of com/etiti0e erosion of our customer +ase. )e need to re0isit how we are currentl, conducting +usiness +efore we Dust eliminate heads from the /a,roll.I $rian Ste0ens, President of !egal, as(ed, H)h, do we need to re0isit our current mode of o/erationsO If we Dust get some of the e"cess heads off the +oo(s and ma(e e0er,one aware the, need to wor( harder, we should +e all right. )e can weather this storm. $esides, this com/etitor wonMt +e a+le to deli0er on these /romises, and $L* will come +ac( to us, hat in hand, within the ne"t si" months.I HIMm afraid thatMs not true,I re/lied !o+ert. HI (now a+out this com/an, through se0eral of its current customers, and $lue Iron &oes deli0er on their /romises. The, do quite well in their niche mar(ets and are +eginning to e"/and into additional areas, !egalMs +eing one of them. The, a//ear to target mar(ets that ha0e growth o//ortunities coming through new /roduct de0elo/ments. The, align with customers who are loo(ing to attain the ne"t le0el of /erformance and who are disenchanted with their current su//l, +ase of mature, slow8mo0ing com/anies.I H)hat le0el of /erformance are we tal(ing a+outOI as(ed $ar+ara Stearn, #ice President of Sales and ustomer Ser0ice. HThe +enchmar( for man, com/anies stri0ing for world8class le0els of /erformance would +e 92X in0entor, turns /er ,ear, same8da, deli0er, on
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6@@
customer orders, manufacturing lead8times of one wee( ma"imum, in8/rocess qualit, le0els a//roaching ;;S roll8through ,ield, and annualiGed cost reductions of 9 to 52S each and e0er, ,ear,I said !o+ert.
HThose /erformance le0els are unheard of in our industr,UI +ar(ed !ichard Eohnson, !egalMs Plant Manager. H&ot one of our customers is e"/ecting us to achie0e those le0els of /erformance.I HIMm afraid that customers ha0e a funn, wa, of deciding what is and is not an acce/ta+le le0el of /erformance,I said !o+ert. H'ou see, the /erformance target is constantl, changing, and if one of ,our customers hears a+out a com/etitor who is achie0ing such le0els of /erformance, that now +ecomes the new standard for that customer. Thin( a+out it ,ourself, as a consumer. Ten ,ears ago, when ,ou wanted new or re/lacement /arts for ,our car or some consumer electronics giGmo, ,ou went to the retail outlet, told them what ,ou wanted, and ho/ed that the, carried it in stoc(. If the, didnMt, then ,ou were /laced on +ac(order and the /art ma, ha0e shown u/ 4 to = wee(s later. Toda,, ,ou search the Internet for what ,ou want and order it, and it arri0es at ,our door in man, cases the ne"t da,. Ten ,ears ago, most consumers would ha0e ne0er dreamed of that (ind of res/onsi0eness, +ut the, are coming to e"/ect it toda,, Dust as $L* is now demanding new le0els of /erformance from its su//l, +ase.I H$ut $L* is onl, one of man, customers we ha0e. Surel, the, wonMt all demand that le0el of /erformance, will the,OI as(ed $ar+ara. HI donMt (now, $ar+ara. Ha0e ,ou as(ed them latel,O Ha0e we inquired a+out what /erformance le0el the, need or are recei0ing from the com/etitionO *o we (now how we stac( u/O Are we leading or laggingO As head of sales and customer ser0ice, do ,ou ha0e an, information relati0e to thisOI inquired !o+ert. H)e (ee/ some information in our data+ase as to the com/etition, +ut it is gathered onl, when we introduce a new /roduct line, which has +een a while,I stated Samuel $utton, #ice President of Product *e0elo/ment. HIn additionTI After a+out an hour of discussion among the management team, the, finall, reached the general consensus that !egal, Inc., was not reall, /re/ared to com/ete in the mar(et/lace of the future. The, all agreed it was a good idea to +ring !o+ert on +oard to let him guide their o/eration down the /ath to +ecoming a lean manufacturer.
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66
"$e Game Plan
he /roDect team assigned to design, de0elo/, and de/lo, this lean manufacturing /rogram met the following Monda,, August 1. The team consisted of se0en full8time, dedicated em/lo,ees, including the team leader, !o+ert. The team consisted of Heather *ale, from Human !esourcesJ Eose/h $illings, the controllerJ Paula )right, from Information S,stemsJ Ste0e Phel/s, who re/resented materials managementJ !ichard Eohnson, who re/resented /lant managementJ and arl )ithers, from Production .ngineering. The, s/ent a significant amount of time that morning discussing wh, the, were together, wh, there was a need for this team, wh, were the, selected, what the, were e"/ected to accom/lish, etc. !ichard s/ent much of the morning e"/laining who he was, wh, he was there, wh, the, were there, and wh, this was an e"tremel, im/ortant /rogram for the future of the organiGation.
After a+out four hours of discussion, de+ating, 0enting, and clarif,ing, the, e0entuall, +ecame comforta+le a+out the /roDect and its o+Decti0es. The, s/ent time writing out a /roDect charter A-igure 55.5B to clarif, their understanding with e"ecuti0e management in regard to the o0erall sco/e and o+Decti0es for the /roDect. The, identified /otential ris(s, issues, and assum/tions a+out the /roDect. Through !o+ertMs facilitation, the team identified s/ecific goals for the lean manufacturing /rogram, de0elo/ed an o0erall rolling8wa0e milestone /lan A-igure 55.1B that co0ered the /roDect duration, and assigned su+Dect matter e"/erts aligned with the -i0e Primar, .lements as follows@ ? FrganiGation .lement C Heather *ale ? Logistics .lement C Ste0e Phel/s ? Process ontrol .lement C arl )ithers ? Manufacturing -low .lement C !ichard Eohnson ? Metrics .lement C Eose/h $illings
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$ecause the team had de0elo/ed this /lan together, the, had a common understanding of where the, were going, what the, were going to accom/lish, and what success loo(ed li(e when the, got there. Fn August ;, !o+ert had the team meet with e"ecuti0e management to demonstrate their understanding of the assignment, to assure clarification of /roDect direction and /roDect duration, and to esta+lish goal alignment. After the, recei0ed e"ecuti0e managementMs /ermission to mo0e forward, the /roDect team /roduced a 528 to 518slide /resentation for e"ecuti0e management to deli0er to the organiGation. It contained an o0erall stor, line e"/laining@ 5. The current state of the +usiness 1. )h, a lean manufacturing /roDect team had +een assem+led 3. The /roDect teamMs charter 4. The o0erall schedule Amilestone /lanB 9. ManagementMs commitment to (ee/ e0er,one informed as to /roDect /rogress =. How e0er,one would fit into the o/eration when it was designed
:igure 66.6 ProBect &$arter
Regal# Inc.
Title@ Pur/ose@ F+Decti0e@ Futcomes@ ProDect Fwner@ Team Leader@ -orm@ 254
ProBect &$arter 'ean Manufacturing Program 96

*esign, de0elo/, and im/lement a lean manufacturing en0ironment +, focusing on the 0alue stream for in8house manufacturing and material flow. A5B Autonomous /roduction units. A1B Self8directed wor( teamsJ relia+le and /redicta+le demand management. A3B Knowledge transfer of lean
manufacturing techniques. A4B Mo+iliGe cross8functional /roDect team. A9B -acilit, la,out and /roduct /erformance res/onsi+ilit, aligned +, /roduct grou/ing. A=B Assess and select cell team leaders. A5B Im/ro0ed deli0er, /erformance from 9=S to ;>S to !S*. A1B Manufacturing lead8time of less than 5 wee( for all /roduct grou/ings. A3B In0entor, turns A!M, )IP, -7B of 39. A4B *irect la+or /roducti0it, im/ro0ement of 19S on runner /roducts. A9B A 92S reduction in all identified &#A acti0ities. $rian Ste0ens !o+ert Eames
The Ga!e Plan
6@; )hen $rian deli0ered the message to the organiGation, through a town hall meeting, he o/ened +, sa,ing, H)e at !egal ha0e enDo,ed man, ,ears of success, and we wish to continue in that same tradition of success. The wa, we ha0e conducted +usiness u/ to this /oint has +rought us all a great deal of +enefit. )e ha0e achie0ed great success in growing our o/eration and should +e /roud of our accom/lishments. Howe0er, in order for us to continue growing our com/an,, we need to loo( at conducting +usiness in a different manner. om/etition is getting tougher, and it would a//ear there are a num+er of com/anies ni//ing at our heels and loo(ing to ta(e our customers awa,. )e cannot continue to sur0i0e without a customer +ase, and our customer +ase is +ecoming more and more demanding. HSo, as our customerMs requirements change, so too do we need to change. Therefore, in light of this situation, we ha0e assem+led a cross8functional team staffed with some of our +est /la,ers, who will +e wor(ing full time for the ne"t = to ; months on designing and im/lementing a new manufacturing o/eration. The, will +e coming to ,ou for information, as(ing for ,our in/ut, and see(ing ,our hel/. I would as( that ,ou /ro0ide them with honest, factual information and when as(ed for ,our o/inion to res/ond o/enl,. As /art of the anal,sis and design /rocess, the, will +e coming to ,ou for concurrence and feed+ac( regarding the design. 'our in/uts are im/ortant. )ithin the ne"t three months, we will +egin to im/lement this /rogram and will again :igure 66.9 Milestone Plan
Regal# Inc.
ProDect &ame@ A$ ProDect V@ 15
8 Lean Assessment is
Lean Manufacturing Program

om/lete L A//ro0ed
6@<
+e soliciting ,our ideasJ howe0er, during im/lementation, ,ou will +e the maDor /la,ers in the /rocess +ecause ,ou will +e in0ol0ed in the actual design and arrangement of ,our wor( areas. 'ou will ha0e a sa, as to what goes where and how the wor( will flow. )e will +e guided +, some new o/erating /rinci/les, +ut ,ou will ha0e an o//ortunit, to design out man, of the wastes that are currentl, /art of ,our e"isting /rocesses. HThis will all +ecome more clear as the coming months unfold and we will +e in a more informed /osition to answer man, of the questions I am sure ,ou ha0e at this /oint. )e will +e setting u/ a suggestion +o" for +oth ideas and questions concerning the /rogram. As the team gets further into the /rogram, we can re/ort on /rogress and answer more of the questions as we go along. This is a 0er, e"citing time for us at !egal. I (now change can +e difficult and a little scar,, +ut if we all (ee/ a /ositi0e attitude and o/en mind as to what de0elo/s, I am confident we will come out on the other side a much stronger and more ca/a+le organiGation for our customers. I than( ,ou in ad0ance for ,our su//ort.I
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69
'ean Assessment
fter $rianMs announcement to the organiGation, the team was read, to +egin /hase one C Lean Assessment. The /roDect team set u/ their war room, went through three da,s of intense lean manufacturing training on the -i0e Primar, .lements with !o+ert, and +egan the tas( of assessing the o0erall le0el of leanness of the o/eration A-igures 51.5 to 51.4B. $, August 5;, the team had gathered the lean ga/ anal,sis information +, /roduction /rocess and loaded it into the /roDect data+ase. The, were now read, to +egin documenting o/erational /erformance data +, +oth /roduct grou/ and /rocess A-igure 51.9B. $efore the, +egan collecting the /erformance data, Paula made the comment to the team, HI +elie0e much of the data we need are contained within our +usiness s,stem.I !o+ert stated, H.0en though that ma, +e true, Paula, I would encouraged the team to go to ge!ba ]the Ea/anese word for wor( site^ to retrie0e the data. .0en though much of the identified data could reside in the s,stem, it ma, not +e accurate, and this initiati0e needs to +e a 0er, hands8on /rogram. In addition, it is im/ortant for us to +e seen on the sho/ floor, tal(ing with the o/erators and gathering their insight. The, are going to +e 0er, s(e/tical at this /oint, and we need to +e (eenl, aware of their concerns. )e will need to use the s,stem8generated data, +ut Dust not as the first source at this time.I The team created a +aseline tem/late for the data collection, +ro(e into /airs, and went to the sho/ floor to learn a+out the current manufacturing /rocesses. The, alread, had an idea a+out the current wea(nesses in the o/eration +ased on the lean assessment scoring, which was com/leted earlier. The team segregated the sho/ +, assem+l,, fa+rication, and /roduct grou/s. Heather and arl too( assem+l,, !ichard and !o+ert too( fa+rication, and Eose/h and Ste0e too( /roduct grou/s.
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)hen as(ed +, Heather what he thought a+out all this, arl answered, HI donMt (now. It seems li(e a sound a//roach on /a/er, +ut that is onl, /a/er. )hat ha//ens in im/lementation, now thatMs realit,. I am not quite sure ,et how we design out our current o/erational /ro+lems and de0elo/ a s,stem that is res/onsi0e to these new le0els of /erformance. )hat do ,ou thin(OI
:igure 69.6 &ontinuous "raining :igure 69.9 'ean Manufacturing Benc$mark
Lean Assess!ent
6@5 HI am concerned a+out how the /eo/le are going to /ercei0e the lean manufacturing /rogram,I said Heather. HI mean, we want to in0ol0e them
and solicit their in/ut, +ut I Dust donMt (now how the, are going to +u, in to the changes. It seems to me that, to engage them in the /rocess, we need to
:igure 69.; 'ean Manufacturing Benc$mark: Scoring :igure 69.< &ell Audit
,
ell name was hardl, 0isi+leJ howe0er, +oundaries were well mar(ed on the sho/ floor. A larger A/oster8siGeB cell name should +e utiliGed. It was 0er, e0ident on all /art num+ers 0iewed. P $ su+assem+lies are using Kan+anJ howe0er, not at the /lanned le0els. A wor(a+le wor( /rocess was su//osed to ha0e recentl, +een documentedJ howe0er, it still requires additional de0elo/ment. A wor(a+le wor( chec(list is +eing utiliGed. 513 incinnati, FH Scoring Kan+an 52 .qui/ment rearrangement com/lete
6@>
find out what would moti0ate them to change. Show them where the, fit into the /rogram.I HI thin( ,ou ha0e a good /oint there. )hen we get a chance, we need to tal( with !o+ert a+out those issues,I said arl. As !ichard and !o+ert made there wa, to the +ac( sho/s, where the fa+rication o/erations were located, a first8line su/er0isor named Ea(e a//roached !ichard and as(ed, HAm I going to ha0e a Do+ when this is o0er, Mr. EohnsonO $ecause I ha0e a cousin o0er in Louis0ille who went through one of these Rlean thingsM and the, laid off nearl, half the /lant and outsourced almost all the wor( to somewhere else.I !ichard reassured him +, sa,ing, HEa(e, ,ou do not ha0e to worr, a+out losing ,our Do+ as a result of this lean /rogram. )hen all is said and done, ,our Do+ ma, ha0e changed or ,ou ma, +e doing a different Do+, +ut ,ou wonMt +e eliminated from the /a,roll, unless, of course, ,ou do not want to wor( in the new lean manufacturing en0ironment. 'ou see, the thing is if we donMt do something li(e this now there is a good chance I will need to send /eo/le out the door later, and I donMt want to do that.I HI understand,I said Ea(e. As Ste0e and Eose/h made their wa, to the shi//ing area to as( the /ac(ers questions /ertaining to the handling times of SKUs, Eose/h made the statement, HThis /rogram is reall, going to /la, ha0oc with m, o0erhead a+sor/tion num+ers. All the indi0idual de/artment allocations are measured +, each o/erationMs hours /roduced /er da,. If we start changing the focus to
:igure 69.4 'ean Assessment 3ata &ollection Items
% S/ace Asq. ft.B % )IP le0el A\ or equi0alentB % Tra0el distance A/arts and /eo/leB % Manufacturing lead8time AunitsB % *T* lead8time Ada,sB % Fut/ut//erson/unit A/c/minuteB % .fficienc, ASB % hangeo0er time AminutesB % Staff le0el AheadsB % Un/lanned downtime AminutesB % Scheduled time AhoursB % Actual time AhoursB % Planned out/ut AunitsB % Actual out/ut AunitsB % Planned mfg. c,cle time AminutesB % Actual mfg. c,cle time AminutesB % V of units rewor(ed % V of units defecti0e % .m/lo,ee turno0er ASB % .m/lo,ee a+sences ASB % Annual out/ut 0olume AunitsB Results reflected 1y process# 1y product
Lean Assess!ent
6@? actual out/ut for a cell, our o0erhead ma, not +e a+sor+ed as it has +een +udgeted and that will lea0e us under8a+sor+ed, which affects our /rofit num+ers. H$ut, it has +een that indi0idual focus on RlocaliGed o/erationsM and /roducing more hours than we need to satisf, the customer demand that has caused us to ha0e the long lead8times that now e"ist in the factor,,I said Ste0e. H)e need to concentrate on im/ro0ing the o0erall /rocess and quit focusing on the indi0idual o/erations, if we e0er e"/ect to achie0e the le0els of /erformance that ha0e +een targeted.I As the /roDect team was gathering information on the /rocess, Paula was setting u/ the data+ase that would house all the data +eing collected. She de0ised a sim/le s/readsheet design with ta+s for each of the /roduct grou/s according to /roduction /rocess. This wa, no matter what data the, needed for anal,sis, the, were 0er, eas, to e"tract. As each team com/leted their tem/lates, the, were turned into a data entr, cler( to load into the data+ase. Fnce the /roDect team had com/leted the data gathering, the, were read, to de0elo/ an understanding of the mar(et/lace. !o+ert showed the /roDect team two tem/lates A-igures 51.= and 51.:B and told them to identif, who in the organiGation had access to the information necessar, to com/lete the requested information. Paula felt that she ma, +e a+le to e"tract some of the data from the +usiness s,stem, +ut most of it would ha0e to come from other sources@ HI (now I can /ull and segregate :igure 69.= Manufacturing Strategy: Market Segmentation 66@
the sales data +ased on histor,, +ut the total mar(et and /otential mar(et ha0e to come from sales and customer ser0ice.I arl stated, HI donMt thin( customer ser0ice would +e the /lace to find those /roDected data. I thin( /roduct de0elo/ment should ha0e a 0iew of the total mar(et requirements.I HMa,+e we need to tal( with +oth,I said !o+ert. H)h, donMt we +ring in $ar+ara and Samuel, with a few of their /roduct e"/erts, and discuss with them who has access to which data and then wor( with those e"/erts to com/lete +oth of these tem/lates. !emem+er, we need to ha0e a /rett, relia+le 0iew of the current mar(et/lace, /articularl, where s/ecific /roduct o//ortunities e"ist, and in/ut from the customers as to where we are com/etiti0e and where we are not. This is where much of our design criteria information will +e drawn from in order to align with mar(eting as we get into the -uture State *esign /hase.I As the team com/leted this final data8gathering effort, the, were a+le to draw a good /icture of how !egal stood in relation to the conce/t of lean. The, had an increased understanding of the mar(et/lace through actual data collected from the customers through sur0e,s and inter0iews. The, /resented their findings to e"ecuti0e management on August 1:. There was not a lot of de+ate o0er the num+ers Awhich had +een seen in the /astB, +ecause the /rocess owners $ar+ara and Samuel had +een /art of the e"ercise and had alread, +ought into the 0alidit, of the data. U/on recei0ing a//ro0al for the wor( in /hase one, the team was released to mo0e onto /hase two C urrent State 7a/.
:igure 69.5 Manufacturing Strategy: &ompetiti(e &riteria 666
6;
&urrent State Gap
he first order of +usiness for the /roDect team was to gain a +etter understanding of the o0erall /rocess flow of the factor,. The, all had their own ideas a+out how the, thought the /rocess wor(ed, +ut no+od, was confident a+out reall, (nowing for sureJ therefore, !o+ert once again had the /roDect team s/lit into grou/s. The first grou/ consisted of Paula, !ichard, and Ste0e, who were to create an o0erall material and information flow ma/ of the o/eration to gain a +etter insight into how the /h,sical material and information currentl, flowed within the /lant. The, would identif, the communication lin(s +etween su//liers and customers Ainternal and e"ternalB, the medium used to /resent the information, and how often there was an information transaction A-igures 53.5B. The second grou/ was made u/ of Heather, arl, and Eose/h, who were gi0en the tas( of generating a Le0el 2 and Le0el 5 /rocess ma/ of the current /roduction /rocess. The, were shown how to gather the necessar, information through a su//lier8in/ut8/rocess8out/ut8customer ASIPF B methodolog, A-igure 53.1B. !o+ert challenged the teams to gather enough information a+out the e"isting /rocess in order to ma(e good decisions in the -uture State *esign /hase, +ut not so much information that the, got +ogged down with anal,sis /aral,sis. HThat is wh, it is im/ortant to sta, at a Le0el 2 and Le0el 5 for the SIPF ,I he e"/lained. H)e are tr,ing to descri+e RwhatM is ha//ening in the /rocess, not Rhow.M )e ha0e targeted two wee(s for com/letion of this effort, /er our milestone /lan. In order to sta, on schedule, we need to +e read, to /erform root cause anal,sis +, Se/tem+er 52.I
"
669
$, :@32 a.m. Monda, morning, +oth grou/s were off and running. Paula had ta(en the lead for de0elo/ing the material and information flow ma/. F0er the wee(end, she had +een thin(ing a+out how the, might a//roach it. HI thin( if we identif, the /roduction /rocesses that were loaded on the data+ase and re0iew the /roduct families we created during wee( three, we will ha0e a good indication as to where to start. I thin( we should la, out the maDor /rocesses on a white +oard and re/resent the /rimar, /h,sical material flows with the color green and show the /rimar, information flows in red.I HFnce we ha0e that de0elo/ed, we can inter0iew those in the /rocess as to the format or medium used to transmit the information. 'ou (now T fa", or a hot list, or 3 9 card, or electronic, whate0er,I e"/lained !ichard. HAnd, once we ha0e these data, we can +egin to measure how long it ta(es
for the information to change hands and how often,I Ste0e said. H!emem+er,I Paula /ointed out, Hit is e"tremel, im/ortant that we 0erif, the data with the /rocess owners or those who wor( in the /rocess. Ma,+e we should schedule a meeting ne"t Monda, with se0eral of the first8line su/er0isors C Ea(e and $en and /ossi+l, &at C to 0alidate what we find.I
:igure 6;.6 Material and Information :lo, for 'ean Implementation
C"rrent State Ga)
66; HThat sounds li(e a good idea to me. I will ma(e sure that the, will +e a0aila+le earl, ne"t wee( to do that,I said !ichard. As the first grou/ was ma(ing /lans for the material and information ma/, the mem+ers of the second grou/ were ma(ing similar /lans to ca/ture the Le0el 2 and Le0el 5 SIPF data. H)hat do ,ou thin( a+out starting with out/uts +, /roduct grou/ing, identif,ing the a//ro/riate customers for those out/uts, and then documenting the ste/s in the /rocess that generate those out/utsOI as(ed arl. HThat sounds reasona+le to me,I said Eose/h. HThen we can list the su//liers for the /rocess and record the in/uts.I HI thin( I would do it the other wa, around,I argued Heather. HI would identif, the in/uts that trigger the /rocess to +egin and then document those su//liers who su//l, those in/uts.I HI can li0e with doing it that wa,,I said Eose/h. HAs long as we get done +, Se/tem+er 52.I arl ga0e Eose/h a loo(. HFnce we ha0e Le0el 2 documented for the o0erall o/erations /rocess, we can then +rea( out the le0el 5 su+/rocesses into their s/ecific acti0ities,I said arl. :igure 6;.9 'e(el 6: Supplier Interface 66<
HKee/ in mind there ma, +e se0eral Le0el 5 /rocess flows. )e should /ro+a+l, segregate the flows +, customer interface, su//lier interface, manufacturing, and /roduction//lanning control. Also, remem+er that !o+ert told us to limit the num+er of ste/s to +etween = and 51, so as not to go too dee/ into the /rocess.I Heather continued, HI thin( if we a//roach our largest /roduct famil, firstTI $, the +eginning of Se/tem+er, the two grou/s had made good /rogress on each t,/e of /rocess ma/. The, documented all the maDor acti0ities, ca/tured the information lin(ages, understood how /h,sical material was trans/orted around the sho/, and recorded the time required for each /rocess ste/ and the out/ut /erformance for each /roduct grou/ing. In addition, the, had 0erified this information with the /rocess owners and recei0ed +u,in on the data. )hen Se/tem+er 52 arri0ed, it was time to +egin anal,sis of the +aseline data. In order to guide the decision /rocess used in determining A5B the sequence and /riorit, for im/lementation, A1B which areas were in need of the most hel/, and A3B Dustification for additional e"/enditures, the /roDect team needed to conduct a root cause anal,sis of the current o/erating en0ironment. !o+ert once again had the team +rea( u/ into two grou/s. The first grou/, led +, arl, was to concentrate on the anal,sis of /roduction and
schedule loss. The second grou/, led +, Ste0e, was to address waste HmudaI issues and elements anal,sis. These two grou/s were instructed to e"tract data from their +aseline data+ase, /rocess ma/s, o+ser0ations, inter0iews, mar(eting data, and the lean assessments to generate a clear /icture of where wastes could +e found in the current o/eration, the associated causes of the wastes, and their im/act on +usiness /erformance. .ach grou/ agreed to a 98da, wor( window to com/lete these tas(s and e"/ected to finish on Se/tem+er 5:, after which the, would /resent their findings to e"ecuti0e management on Se/tem+er 15. As arl, Paula, and !ichard headed for the war room to +egin /lotting their ne"t mo0e, Paula as(ed arl if he had a clue as to how the, were going to come u/ with this information. arl re/lied, HI ha0e +een mulling o0er this one since !o+ert showed it to us during wee( two and I thin( I ha0e a /lan. I want to determine a standard out/ut or scheduled amount for each /roduct +ased on the /remise of ma(ing toda, what we need toda,. I then want to e"tra/olate the data we re0iew this wee( on a monthl, +asis, and then I want to com/are the data to the standard. The results are not intended to +e additi0e, +ut rather show order of magnitude for the /ro+lems.I H*id ,ou understand what he Dust saidOI !ichard as(ed Paula.
C"rrent State Ga)
664 HI heard him sa, he had a /lan, +ut after that I ha0enMt a clueUI e"claimed Paula. HLet me tr, again,I said arl. HIf I ha0e a /roduction area that is required to /roduce 522 units /er da, to meet dail, customer demand, and the current Rroll8through ,ieldM on that /rocess is >2S, then I ha0e a /roduction loss of 12 units /er da,, or 422 /er month if there are 12 wor(ing da,s in a month. &ow, if that same /roduction area has un/lanned equi/ment downtime of 1 hours /er da,, that would translate to a /roduction loss of 1= units /er da,, or 912 /er month.I HHow did ,ou figure thatOI as(ed !ichard. H)ell, if we currentl, run on a one8shift o/eration of :.9 hours /er shift, that means we need to /roduce 53.3 units /er hour, which I got +, di0iding 522 +, :.9. Multi/l, that +, the 18hour loss /er da, times 12 da,s /er month, and ,ou get 912 units lost /er month,I e"/lained arl. H!emem+er, I did not sa, the num+ers were additi0e, Dust that the, re/resented order of magnitude.I HF(a,, I guess I understand the /roduction loss, +ut what a+out this schedule loss,I as(ed Paula. HThat one too( a +it more wor(, +ut I thin( it could wor( li(e this,I said arl. HThin( a+out the se0en (inds of waste RmudaM that !o+ert tal(ed a+out during the lean manufacturing training. He tal(ed a+out waiting, tra0el, dela,s, etc. These (inds of waste can significantl, im/act an o/erator who is su//osed to +e doing 0alue8added wor(. If I ha0e an o/erator who is idle 32 minutes waiting for /arts or has to s/end 12 minutes loo(ing for a for( truc( to gather tooling for a setu/, that would +e a schedule time loss +ecause he is not a+le to /erform 0alue8added wor(. -or e"am/le, if I determine that an o/erator is s/ending 5.9 hours /er da, chasing down tooling and his /roduction area needs to /roduce 522 /arts /er da,, li(e +efore, then his /otential schedule im/act could +e 53.3 /arts /er hour times 5.9 hours /er da,, which would +e a schedule loss of 12 /arts /er da,.I HI see,I said !ichard. HSo, we would gather /rocess /erformance data a+out each /roduction area and /rioritiGe the causes +ased on the magnitude of the im/act.I H."actl,,I said arl.
HI ho/e ,ou two (now what ,ou are doing,I sighed Paula. As arlMs grou/ wor(ed their wa, through the data and +egan to categoriGe the causes and magnitude of the wastes, the, +egan to disco0er some 0er, interesting /erformance im/acts relati0e to the current o/eration. It was through the gathering of the data and /lacing them in this format that the, +egan to de0elo/ an a//reciation for Dust how much loss was ta(ing /lace within the +usiness A-igure 53.3B. 66=
Ste0eMs grou/, on the other hand, did not +egin +, going to the war room. Instead, the, went out to +rea(fast. Ste0e offered to treat them to +rea(fast for a chance to get awa, to gather their thoughts and collecti0el, decide the +est wa, to a//roach this ne"t tas(. HHow do ,ou two thin( we should tac(le this ne"t assignmentOI inquired Ste0e. $etween mouthfuls, Eose/h said, HI donMt care as long as we are done +, -rida,.I H'ou are a real stic(ler when it comes to schedules, arenMt ,ou, EoeOI e"claimed Heather. H)hat can I sa,O IMm an accountant,I e"claimed Eose/h. HI ha0e li0ed for month8end closings all m, life. ItMs in m, +lood.I HAre ,ou li(e this at homeOI as(ed Heather. H'ou +et,I said Eose/h. HHow does ,our wife stand itOI inquired Heather. HAfter awhile, I +egin to grow on ,ou,I claimed Eose/h. Heather ga0e u/. H)hat do ,ou thin(, Ste0eO How do ,ou thin( we should /roceedOI as(ed Heather. :igure 6;.; Production 'oss

C"rrent State Ga)
665 HI guess I do not see this as +eing all that difficult. As I thin( +ac( to when !o+ert first showed us the issue/element matri", it seems to me that itMs a matter of identif,ing each of the current /roduction areas and listing all of the /rominent issues in the area. I +elie0e we can gather enough information from the data+ase to generate a su+stantial list of issues for each area. After ha0ing identified the +usiness issue affecting each area, itMs a matter of categoriGing them according to the wastes that are contri+uting to those issues A-igure 53.4B. -rom there, we will +e a+le to identif, which elements are necessar, to fi" the +usiness o/eration /ro+lem we are e"/eriencing. How does that sound to ,ou, EoeOI HSounds fine to me, as long as we are done +, -rida,,I he said. Heather and Ste0e Dust loo(ed at each other and shoo( their heads. $, -rida,, Se/tem+er 5:, each of the grou/s had +een a+le to create either a matri" or Pareto diagram +, /roduction area. The, were a+le to then s/end the following Monda, and Tuesda, morning /ulling their e"ecuti0e management de+riefing /resentation together. The /rimar, /ur/ose :igure 6;.< 'ean Manufacturing Issue/Element Matrix 66>
of the /resentation was to secure management agreement as to the magnitude of the /ro+lem, to /ro0ide an understanding of the le0el of /otential +enefit a0aila+le, and to e"/lain where the le0erage /oints were to guide the sequence for im/lementation. In addition, the team had created a quic(hit list of short8term im/ro0ements that were disco0ered during the /roduction and schedule loss anal,sis.
!o+ert (new this would +e the first real, tangi+le loo( +, !egalMs e"ecuti0e management at how large the ga/ was and how great the o//ortunit,. It also was the first /reliminar, 0iew into how much mone, the, ma, +e required to s/end to ma(e this /rogram a success. The team recommended that the to/ fi0e /roduction loss areas +e targeted for KaiGen im/ro0ements immediatel, as /art of the ne"t /hase. The /resentation was made Dointl, +, Ste0e and Heather and was a great success. The /roDect team recei0ed a//ro0al to ad0ance onward to /hase three C -uture State *esign. :igure 6;.4 Luick2+it 'ist 66?
6<
:uture State 3esign
n )ednesda,, Se/tem+er 11, $rian assem+led the team in the war room and congratulated them on a Do+ well done. He /ointed out that the, had made tremendous /rogress to this /oint and were right on schedule. H&ow that we ha0e come to an agreement as to where we are, we can now +egin the Dourne, of designing where we want to +e. This is where the fun startsUI !o+ert then e"/lained to the /roDect team, HFur first ste/ will +e to create a conce/t design of the entire factor, floor. )e will determine how /h,sical material flows +etween the new manufacturing cells. )e will generate a +loc( la,out for the /lant. )e will anal,Ge /roduct demand +eha0iors and understand the o0erall resource requirements for staffing and equi/ment.I HHow long will this ta(eOI as(ed Eose/h. HAccording to our original milestone /lan, we ha0e one wee(,I said Heather. HAfter anal,Ging the /art flow +etween /roduction areas, o+taining a +etter understanding of /rocess 0ariation, and considering what we now (now a+out the mar(et /lace e"/ectations, I +elie0e we should e"/and the target com/letion to two wee(s,I stated !o+ert. H$rian and I ha0e alread, had this discussion, and he agrees we should e"tend the deli0er, date in order to get the Do+ done right. )e ma, +e a+le to ma(e it u/ in detail design or definitel, as /art of im/lementation. This /hase is e"tremel, im/ortant, +ecause it sets the foundation and direction for the whole rest of the /rogram. )ould e0er,one agreeOI The grou/ as a whole nodded their heads in confirmation.
69@
HF(a,, then,I said !o+ert. HI would li(e to than( $rian for his words of encouragement to the team and in the same +reath I would li(e to as( him to lea0e so we can get some wor( done.I $rian nodded his head and made his wa, to the door.
H&ow, what should we do firstOI as(ed !o+ert. HThe s/ecific deli0era+les for conce/t design include the num+er of cells required, an assessment of demand +eha0ior, the new demand management /rocess, /lant load /rofiles, staffing /roDections, +loc( la,outs, /roduct alignment to cells, im/lementation logic, clarification of design criteria, a weighted decision matri" for la,out o/tions, organiGation chart, +usiness cases for Dustif,ing e"/enditures, and defined e"it criteria for each of the cells. *oes an,one want to recommend an a//roachOI HIf it were u/ to me, I would ma(e sure I had clarification on the design criteria so I (new what we were designing the /rocess to achie0e,I said arl. HThen I would want to understand m, /roduct demand +eha0ior so I understood which /roducts were high 0s. low 0olume and what (ind of demand 0ariation I need to accommodate.I HI agreeJ that is an e"cellent starting /oint,I said !o+ert. H)hat ne"t, !ichardOI HI would ta(e a shot at aligning which /roducts could +e grou/ed into which cells. I would consider aligning +, end customer, high 0olume, grou/ technolog,, common routing, material t,/e, etc. I would loo( at the different o/tions and select the a//roach that +est fits our design criteria,I offered !ichard. HI thin( those are the right items, +ut I would do them in the re0erse order,I said Paula. HI thin( we should agree on the +est o/tions first and then allocate /roducts to cells. If we do that, then we can determine the num+er of cells required, the resource load on each cell, and the staffing needed to su//ort the cell.I H-rom there we could define our quantitati0e and qualitati0e e"it criteria for each of the cells for the im/lementation audit,I declared Heather. H$, then we should ha0e enough information to generate the +loc( la,out,I said !ichard. H-rom that /oint we can +egin considering the im/lementation logic, de0elo/ an, +usiness case Dustification required, and generate an o0erall organiGation conce/t, as we will ha0e a framewor( for the factor,,I said Eose/h. HI li(e it,I said !o+ert. H!ecogniGe that, although some of these items can +e done in /arallel, the first few are reall, de/endent items and should +e accom/lished first. *oes an,one ha0e questionsO Then lets get started. I want Heather and arlTI
%"t"re State 1esign
696 $, the end of the first wee(, the /roDect team had com/leted all items u/ to and including the creation of a +loc( la,out A-igures 54.5 to 54.4B. As the, a//roached the second wee(, a significant amount of discussion ensued around the im/lementation sequence and generation of an organiGation conce/t. :igure 6<.6 Product 3emand Be$a(ior :igure 6<.9 ption Selection Matrix
V 5 1 3 4 9 = : > 3esign &riteria
Su//ort !egal, Inc., world8class
manufacturing 0ision Su//ort runner, re/eater, stranger strateg, -acilitate lin(ages to customer Su//ort sim/le materials flow Increase ca/acit, fle"i+ilit, UtiliGe wor(8cell a//roach !educe non80alue8added s/ace Pro0ide documented wor( instructions 4.> 4.: 4.> 4.> 4.3 4.3 4.3 4.9 2.> 1.3 2.> 2.> 5.4 1.1 2.: 3.> 4.> 3.5 4.2 3.= 4.3 4.3 4.3 4.9
&riteria )eig$t E ption 6F :unctional 'ayout E ption ;F By Product E ption 9F By Product ,it$ Stranger Area
<.> <.5 <.@ <.> <.; <.; <.; <.4
699
HTI donMt +elie0e we should start in the shi//ing area. I (now we are ha0ing significant through/ut loss in the /ress area due to un/lanned down time on equi/ment,I declared arl. HI (now if we start there first, we can continue to gain more short8term +enefits.I HI hear what ,ou are sa,ing, +ut if we selected the customer cell o/tion V1 for three of our assem+l, cells, then I thin( that is where we should +egin in order to achie0e our o+Decti0e of customer res/onsi0eness,I stated Ste0e. HFh, ,ou Dust donMt want to deal with the 0endor deli0er, issues that would arise if we started in the /ress area first,I arl uttered sarcasticall,. HThatMs not trueU )e found that our customers for housing and +earing /roducts are most unha//, with our res/onsi0eness. )e also found that /art of the reason it ta(es so long is the fact that com/leted /arts sit in /ac(aging and shi//ing for 3 to 4 da,s +efore going out the door. If we can reduce that time to Gero +, doing the /ac(aging right in the assem+l, area and sending the /roduct directl, to shi//ing, we could most assuredl, meet our customersM e"/ectations of ne"t8da, deli0er, on housing and +earing /roducts,I declared Ste0e.
HF(a,, o(a,, settle down,I said !o+ert. HLetMs go +ac( to the reason wh, we are doing lean in the first /lace. )e ha0e had a customer lea0e the +usiness due to lac( of res/onsi0eness. $, losing that 0olume, we ha0e /laced oursel0es in a /osition that will erode o/erating /rofit unless we reduce costs, namel, :igure 6<.; &ell: Exit &riteria Luantitati(e
H Manufacturing lead2time: 9< $ours H n2time deli(ery: ??M H Luality yield: ?>M
Lualitati(e
H H H H H H H H
%"t"re State 1esign
4S $ousekeeping program &ell leader and team mem1ers &ommunication 1oard 3ocumented operating rules "raining skills matrix Posted performance measures )eekly ,ork plan Sta1le Aan1an replenis$ment systems
69; heads. )e are not in a sur0i0al mode ,et, +ut it is coming. I donMt thin( we want to do an,thing that will /lace our su//l, chain at ris(. )e ha0e not demonstrated we (now how to do lean oursel0esJ therefore, we donMt ha0e much e"/erience to stand on in addressing the current su//lier +ase with lean requirements that we ha0e not demonstrated oursel0es. If we can continue to use our su//l, +ase as it is currentl, /erforming and can minimiGe ris( to the /roDect, I thin( those are im/ortant factors to consider. )e are not losing mone,, cash flow is /ositi0e, and we are not as(ing to s/end a lot of mone, to fund the /roDect at this /oint.I !o+ert continued, H)hat we need is a 0isi+le winner and it needs to focus on the e"ternal customer. I would agree with Ste0e. )e need to start in assem+l, and ma(e that area sta+le. Then we can focus on a fa+rication area that has significant /roduction loss and deli0ers /arts to assem+l, along those s/ecific /roduct families and ma(e that sta+le. Then we can lin( the two together using Kan+an. !ecogniGe that the fa+rication cell ma, 0er, well ma(e /arts for other areas, too, +ut we can deal with that in detail design and the transition /lan. )ould this initial sequence ma(e sense to e0er,oneOI Most e0er,one nodded their heads in consensusJ howe0er, full agreement would ha0e to come later. :igure 6<.< Before/After Block 'ayout 69<
H&ow, what a+out this organiGation conce/tOI as(ed !o+ert. HIs the issue whether we can come u/ with a /ro/osed organiGation for this lean o/eration or whether we want to show a /ro/osed organiGation for this lean o/erationOI HI ha0e had a concern for se0eral wee(s now a+out getting /eo/le engaged in the /rocess,I said Heather. HI ha0e an issue with /u+lishing a /ro/osed organiGation conce/t without ha0ing tal(ed with the /eo/le who are +eing as(ed to change in the /rocess. )e ha0e not told them where the, fit in. )e ha0e not shown them how the, are going to +e affected. )e ha0e not answered whatMs in it for them if the, /artici/ate in the /rocess. And, ,et, we are creating a /ro/osed organiGation that ma, show them doing a different Do+ or show them without a Do+ altogether. I am uncomforta+le a+out doing that.I HLet me tr, to e"/lain the reason wh, we would do this and how it should +e done,I stated !o+ert. H-irst of all, the organiGation conce/t is to +e shared at this stage with no one +ut this team and e"ecuti0e management. Second, the organiGation conce/t is generic in that it /ortra,s what the 0arious roles
and res/onsi+ilities would +e at each le0el and area within the organiGation, and the staffing num+ers would +e an end8state /roDection +ased on e"/ected demand le0els and the designed staffing to su//ort the demand A-igure 54.9B. )e need to understand what staffing le0els are required to su//ort the +usiness in order to sustain required /rofit le0els. &o one will lose their Do+ as a result of the lean manufacturing /rogram. Howe0er, if demand falls off and we cannot re8de/lo, em/lo,ees to other 0alue8added or im/ro0ement initiati0es, then a certain num+er will +e laid off.I !o+ert continued, H)e need to let e"ecuti0e management (now what staffing le0el is required to sustain the lean manufacturing en0ironment and, if we are currentl, staffed hea0,, we need to secure more wor( through increased sales of e"isting /roducts, new /roducts, or new mar(ets. )e do this +, arming mar(eting with a com/etiti0e ad0antage in the mar(et /lace, so we can grow the +usiness. !emem+er, this information is o+0iousl, sensiti0e and must +e (e/t under control.I HI understand the need for the organiGation data, +ut when are we /lanning to share it with the /eo/le +eing affectedOI as(ed Heather. H7ood question,I arl said, as he win(ed at Heather. H)e ha0e +een going at this for two months now and /eo/le are +eginning to get ner0ous. The, are as(ing a+out what is going on. )h, the, ha0enMt heard an,thing, and whether the, are going to li(e this /rogram.I HFne of the areas we ha0e not focused on ,et is the final /lant communication. )e ha0e made the o/ening /resentation, we ha0e shown e0er,one the milestone /lan, the, ha0e seen the /roDect charter, and the, (now when we are e"/ected to /resent our findings. )e ha0e +een /u+lishing the newsletter
%"t"re State 1esign
694 e0er, other wee(, and we ha0e +een res/onding to the issue +o" in order to address indi0idual concerns as we go along,I stated !o+ert. H)hat issue +o"OI as(ed Eose/h. HThe one $rian told them would +e /ut in /lace and res/onded to on a regular +asis.I HHa0e we +een (ee/ing u/ with the em/lo,ee issues +o"OI as(ed !o+ert. .0er,one loo(ed at each other. The, had forgotten to assign res/onsi+ilit, for the issue +o". !ichard ran out to the floor and found the +o" stuffed full of questions that had not +een res/onded to since da, one. He immediatel, em/tied the +o" and +rought the stac( of /a/er into the grou/. The team was dum+founded and immediatel, +egan cataloging the issues/suggestions and documenting res/onses to the questions. $, a+out 52@22 that night the, had a written res/onse to all the issues and suggestions and had them /osted in multi/le locations on the sho/ floor. In addition, the, di0ided u/ the sho/ and made /lans to 0isit the sho/ floor the ne"t da, and tal( directl, with the /eo/le and a/ologiGe for the /roDect teamMs mismanagement of the /rocess. The ne"t morning, when the team 0isited the sho/ floor, the maDorit, of them were greeted rather coldl, when the, inquired a+out the su+Dect. The, were treated to such mutterings as H/rima donna,I Hout of touch,I Hi0or, :igure 6<.4 rgani!ation &oncept
69=
tower,I Hnot team /la,ers.I It too( the team a+out three hours to go around and smooth o0er relations with those em/lo,ees most /otentiall, affected +, the change initiati0e. After their encounter on the sho/ floor, !o+ert gathered the troo/s and re8o/ened the discussion a+out communication and the conce/t
of res/onsi+ilit,, accounta+ilit,, and authorit, A!AAB. HAs we tal(ed a+out during the first da,s of the /roDect, when ,ou set u/ /roDect deli0era+les and ownershi/, !AA !"st +e esta+lished +, name for each deli0era+le in the /roDect. If e0er,+od, has res/onsi+ilit,, then no+od, has res/onsi+ilit,. I +elie0e we ha0e learned a 0alua+le lesson a+out clearl, stating accounta+ilit,,I said !o+ert. H&ow, letMs tal( a+out this communication /lan to +e de0elo/ed,I !o+ert continued. H ontained in that /lan is to +e a stor, line that answers some 0er, s/ecific questions@ A5B )h, are we changingO A1B )hat are we changingO A3B )here are we nowO A4B )hatMs in it for meO At this /oint in the /roDect, we cannot answer these questions. )e are getting closer to +eing a+le to answer these questions, +ut we are not there ,et. Howe0er, +, the end of this /hase, we will (now these answers and will /resent them in the /lant8wide communication that is targeted at the end of this /hase.I H*oes it ma(e sense to wait until we are three months into the /roDect +efore we engage the /eo/le with this issueOI inquired Heather. HI thin( it is a matter of (ee/ing with each /ersonMs role for the /roDect,I said Ste0e. HThin( a+out it. )e ha0e +rought the /rocess owners in e0er, ste/ of the wa, as we ha0e gone through each /hase of the /roDect. )e ha0e gotten their in/ut and +u,8in on the 0alidit, of the data and not made changes without their concurrence. )e ha0e not made an, changes to the o/erational le0el ,et and wonMt until we +egin im/lementation with the KaiGen e0ents. Fur sho/floor o/erators ha0e not +een affected, and when the, are, the, will +e designing their own wor( areas. )e will ha0e done some of the u/8front anal,sis and ma, ha0e changed what /arts are made where, +ut the, will +e in0ol0ed e0er, ste/ of the wa, when changes are made in their areas on the sho/ floor.I HI hear what ,ou are sa,ing. I Dust want to ma(e sure we donMt lose sight of the /eo/le, +ecause I +elie0e their acce/tance or reDection of this /roDect could ha0e a maDor im/act on whether we are successful or not,I stated Heather. All the /eo/le in the room nodded their heads in agreement. H7ood, now itMs time to +egin ste/ two C detail design,I said !o+ert. HThe deli0era+les from this effort will feed directl, to the im/lementation teams for the KaiGen e0ent. -or each of the cells, we will +e generating a ta(t time, cell wor(load, equi/ment requirements, estimated resources, assigned
%"t"re State 1esign
695 /roduct mi", SIPF , cell design guidelines, and /otential measures. This effort will sa0e us a tremendous amount of time during im/lementation. *oes an,one ha0e a suggestion as to the +est wa, to get through thisO )e currentl, ha0e identified nine assem+l,, si" fa+rication, and three ser0ice cells for a total of 5> manufacturing cells.I HI would recommend we s/lit the team +etween assem+l, and the rest,I suggested arl. HI could lead the assem+l, team and !ichard could ta(e fa+rication and ser0ice, since we gathered the data from those areas initiall,.I HThat wor(s for me,I said !ichard. HThatMs fine with me, as long as we are finished in two wee(s,I Paula said, as she nudged Eose/h in the arm. The team +urst into laughter. $ecause there were no o+Dections, the teams were off and running. The, Dointl, created some of the tem/lates, so the information was /resented in a uniform manner. The, ca/tured all the demand data in order to@
5. *e0elo/ a designed dail, /roduction rate for the ta(t time calculation. 1. 7enerate the dail, /roduct8mi" schedule required for the cells. -rom there, the, generated a SIPF /rocess ma/ for each cell so that all the /art num+ers for each cell had an identified su//lier/customer and an, s/ecial material handling or /rocessing requirements could +e identified. Fnce the, had the required ste/s in the /rocess documented, the teams ca/tured the current wor( content for each o/eration for each /art num+er. This allowed them to calculate ta(t time, rough out the equi/ment loads, and to /roDect /otential staffing requirements for each of the cells A-igures 54.= to 54.;B. In addition to conducting a /h,sical flow data anal,sis for the cells, the teams de0elo/ed design guidelines for each cell, definitions for the /otential measures at the cell le0el, and a /otential organiGation conce/t at the cell le0el. The team s/ent e0er, +it of the ne"t two wee(s designing, calculating, discussing, and de+ating the design of each of the cells. As the end of the second wee( drew to a close, the /roDect team was +eginning to feel /rett, good a+out what the, had de0elo/ed. An es)rit &e cor)s was +eginning to set in. The, were +ecoming of one mind a+out the /roDect and generating real e"citement a+out the u/coming im/lementation. Fn -rida,, Fcto+er 59, !o+ert +egan shifting the teamMs focus awa, from the 0er, detailed, tactical le0el to a +roader, more strategic le0el. He told them, H)e need to s/end the last two da,s de0elo/ing the transition strateg, and im/lementation /lan for the /rogram. The transition strateg, should address how we are going to im/lement the /rogram without shutting down the 69>
+usiness. It should answer whether or not we are going to +uild /roduct ahead of schedule in order to mo0e equi/ment and +uffer customer demand. Are we mo0ing on the wee(endO )ill we utiliGe the KaiGen a//roachO )ill we use /ush8and8/ull scheduling methodolog, in common resource areas for some of the /arts or turn o0er the whole logistics s,stem at one timeO How will we locate, identif,, count, and trac( in0entor, during the relocationO How do we handle our initial e"cess in0entor, outside the Kan+an s,stemO In addition to the transition strateg,, the im/lementation /lan needs to +e documented. It needs to identif, the /ilot cell, which /roduction cells go second and third, and which /roduct grou/s we are focusing on first, second, and third, etc.I ASee -igure 54.52.B As the /roDect team wor(ed fe0erishl, to com/lete the tas( +, mid8wee(, !o+ert was /re/aring the e"ecuti0e management team for the final de+riefing on -rida,. He ga0e them a /re0iew of what was coming and as(ed if there was an,thing the, could thin( of that was of concern that the team should loo( into +efore the meeting. .0er, manager said the, were quite /leased so far with the /lanning effort, and the, were 0er, an"ious to +egin the im/lementation /hase after 51 wee(s of /lanning and anal,sis. :igure 6<.= Product 3emand Analysis :igure 6<.5 3esigned "akt "ime

%"t"re State 1esign
69? $, the time -rida,, Fcto+er 11, rolled around, the /roDect team had their transition strateg, identified, the, had their im/lementation /lan documented,
and the, had a /lant8wide communication /resentation all /re/ared :igure 6<.> )ork &ontent Matrix :igure 6<.? *olume Matrix :igure 6<.6@ Implementation Met$odology
35= 12: 12: 51= >3 >3 1;1 ;22 31.4S 35= 5>= 5== ==> :4.1S 1>4 5>= 5>= =9: :3.2S 59> 514 >3 3=9 42.=S ;9 514 =1 1>5 35.1S 193 5== 5== 9>4 =4.;S 59> 524 524 3=9 42.=S 53;2 ;:3 >4; 3151
6;@
for e"ecuti0e management a//ro0al. The meeting with management lasted a+out three hours, including lunch, and at the conclusion of the questionand8 answer session, $rian as(ed that the team +e dismissed for an hour while the !egal e"ecuti0e management team contem/lated the /ro/osal. )hile the team was waiting in the war room, Heather as(ed, H)h, do ,ou su//ose the, as(ed us to lea0eOI HI donMt (now,I said Ste0e. HMa,+e the, wanted to tal( a+out us +ehind our +ac(s,I said arl, Do(ingl,. HI thin( the, Dust want to ma(e us sweat,I said !ichard. HI imagine the, Dust wanted to feel comforta+le as a grou/ that this is the right direction and the, want to +e a+le to ha0e some free de+ate among themsel0es, unencum+ered +, s/ectators,I said !o+ert. After a+out 49 minutes, the, were in0ited to return to the conference room. $rian welcomed them +ac( and congratulated them on a well8de0elo/ed and thought8through lean manufacturing /ro/osal for !egal. His ne"t comment was, HSo, when can ,ou startOI 6;6
64
3eployment
, the time >@22 a.m. )ednesda, morning, Fcto+er 1:, arri0ed, the team mem+ers had alread, +een assem+led and were +usil, ma(ing final arrangements for $rianMs /resentation to the entire em/lo,ee
/o/ulation of !egal, Inc. It was designed to +e a one8hour /resentation with a half hour for questions and answers. The team was e"tremel, e"cited and at the same time ner0ous a+out how the lean manufacturing message would +e recei0ed +, the rest of the em/lo,ees. Heather was most concerned a+out how the em/lo,ees who would +e most affected +, the /rocess changes would feel a+out the /rogram. She (new that no one would lose his or her Do+ as a result of the lean manufacturing /rogram. The, ma, +e doing different Do+s or conducting wor( in a different manner than the, were used to doing, +ut the, would not lose Do+s as a result of the continuous im/ro0ement efforts. She (new the, had alread, identified a list of e"isting im/ro0ement initiati0es, which were not getting done due to a lac( of resources. She (new a KaiGen /ool was +eing esta+lished for /ersonnel who were released from current /roduction areas so that the, could +e utiliGed on future KaiGen e0ents. She realiGed that !egal sorel, needed /roduction engineers and technicians to wor( on the sho/ floor and with the su//lier +ase to address lean im/ro0ement o//ortunities. .0en though she (new a+out all the outlets that had +een /ut in /lace, she was still concerned as to how the /eo/le would handle the news. She went u/ to arl, lightl, touched his forearm, and as(ed, H arl, how do ,ou thin( the /eo/le are going to recei0e the /resentationOI arl turned to Heather and re/lied, HI wouldnMt +e too concerned a+out it. )e ha0e set u/ se0eral new o//ortunities if their current /ositions are +eing eliminated, and we ha0e assem+led a 0er, com/elling stor, as to wh, the +usiness needs to change. )e ha0e shown where the, can fit into the new
B
6;9
o/eration. )e ha0e demonstrated that when /eo/le are wor(ing on non0alue8 added acti0ities the, are wasting 0alua+le resource time and energ,. )e ha0e made it clear that it is the /rocesses the, are doing that are non0alue8 added, and not the indi0idual /eo/le themsel0es who are non80alueadded. Unfortunatel,, I +elie0e what !o+ert told us is true, that 52S of the em/lo,ees will em+race the change, >2S will go with the flow, and 52S will fight it all the wa,. I also thin( we need to address those fighters as earl, in the /rocess as /ossi+le so the, do not ruin it for the +alance of the organiGation. )e will need to let them (now that we are going in this new direction, and if the, donMt want to change, we donMt thin( the, are going to +e ha//, wor(ing here in the future. )e need to inform them that we will +e glad to hel/ them find a new /osition some/lace else. Ho/efull, at $lue IronUI Heather ga0e arl a wide8e,ed loo(. He Dust ga0e her a win( and wal(ed +ac( to the war room. $, 52@22 a.m., the stage was set, the /odium equi//ed, the slides loaded, and the crowd gathered for a town hall meeting. The management staff and /roDect team wal(ed in and sat in the front of the room to answer questions from the audience. $rianMs /resentation was direct, 0er, com/elling, and sincerel, honest a+out the current situation and future direction for the com/an,. He tal(ed a+out the /erformance ga/ +etween !egal toda, and the +enchmar( of world8class manufacturers. He descri+ed the o//ortunities for im/ro0ement that were identified +, the /roDect team. He e"/lained the im/lementation a//roach and the timing as to which areas were to +e addressed first, second, and third. He showed where !egal stood in the e,es
of its customers relati0e to com/etiti0e criteria and +, com/arison to the com/etition. He reiterated that no Do+s would +e lost due to the im/ro0ement /rogram, +ut did e"/lain that man, would lose their Do+s if there was a reduction in demand for !egalMs current and future /roduct +ase. $rian showed the list of unresourced im/ro0ement initiati0es that were a0aila+le for those who were released from their current acti0ities within the o/eration. He ended the /resentation with a than( ,ou to the /roDect team for their efforts o0er the /re0ious three months and as(ed for the full su//ort of e0er, em/lo,ee at !egal during im/lementation. Although, most of the audience was quiet at first and did not 0olunteer an, questions, the, did not a//ear to +e in shoc(, either. This was /rimaril, due to the fact that the team had (e/t man, of the (e,, informal leaders on the com/an, gra/e0ine informed as to what was ha//ening. The team had also (e/t se0eral influential /eo/le in0ol0ed during the anal,sis, /lanning, and design /hases in order to 0alidate data and gain concurrence on direction. The questions, which e0entuall, came, were relati0el, tame and focused /rimaril,
1e)loy!ent
6;; on understanding how indi0idual in/ut would +e incor/orated into their wor( areas. $rianMs res/onse was that as each area was scheduled to come on line, indi0idual in/uts would +e addressed during that /hase of the im/lementation. )hen the /roDect team adDourned to the war room, the, were an"ious to +egin this final /hase of the /roDect. The, were e"cited to +egin seeing acti0it, relati0e to all their /lanning efforts. $, the time !o+ert made it +ac( to the war room, he was /um/ed. HF(a,,I he said. HIt is time for us to mo+iliGe oursel0es and (ic( off our /ilot cell im/lementation. Here is how I +elie0e we should /roceed. -irst of all, I want to +ring in the selected cell leader and his team of o/erators after lunch and I want e0er,one to introduce themsel0es to the cell team mem+ers. Second, I want to congratulate them on +eing selected for the /ilot and let them (now that it is a good thing and not a +ad thing that the, ha0e +een selected. Third, I want to +rief the cell team on what anal,sis has +een done to this /oint in their area. -ourth, I want to inform them that the, ha0e +een scheduled for a KaiGen e0ent +eginning ne"t Monda,. And, finall,, I want to tal( through with them the KaiGen e0ent schedule and lean manufacturing /rinci/les format.I H*onMt ,ou thin( that that is a lot of information for them to digest in such a short /eriod of timeOI as(ed !ichard. HAfter all, the, onl, recei0ed their first introduction to lean manufacturing a cou/le of hours ago.I HI donMt thin( so,I said Paula. HI thin( these /eo/le ha0e +een an"ious to hear information from us for the last three months and the, would +e glad to hear as much as we can tell them.I HI agree with Paula,I Eose/h chimed in. HAfter all, we had to a+sor+ a lot of information in a short /eriod of time. I thin( it is time we share the fun with someone else.I The rest of the /roDect team nodded in agreement. The, felt the time had come to immerse the rest of this organiGation in the world of lean manufacturing. After lunch, the cell team entered the war room somewhat a//rehensi0el,. !o+ert +egan +, introducing himself and as(ing them to ta(e a seat at the ta+le. The /roDect team mem+ers introduced themsel0es, e"/lained their roles on the /roDect, and congratulated the cell team mem+ers for +eing selected as the /ilot cell. After setting the cell team at ease, Ste0e +egan the de+riefing +, e"/laining the lean assessment results. He then wal(ed them through the o0erall /lant material and information flow ma/. He then /roceeded to
descri+e the /roduction loss Pareto diagram and waste issues/element matri" for their area. He finished +, descri+ing the conce/t design for the /lant and showed where their /roduction area fit into the o0erall la,out. 6;<
arl then stood and once again e"/lained the im/lementation methodolog, to the team. He e"/lained how there would +e a 18month stage in which the +aseline and foundation of the cell would +e esta+lished. *uring this /eriod of time, the team would +e e"/ected to im/lement se0eral quantifia+le and qualifia+le as/ects of lean manufacturing within their cell. The, would +e gi0en time for the /rocess to sta+iliGe, a//ro"imatel, = wee(s. At the end of those = wee(s, the cell would +e audited. If it /assed the audit, a//ro0al would +e gi0en to ad0ance to stage two of im/lementation. The same criteria would still a//l, for +oth stage two and then stage three. As lessons were learned +, the cell team, the, would +e noted and used for insight during the de/lo,ment of su+sequent /roduction cells. H)hat are these stages ,ou are tal(ing a+outOI as(ed Ea(e, the teamMs cell leader. HI am glad ,ou as(ed that question Ea(e, +ecause I am a+out to show ,ou,I said arl, as he hit the +utton for the ne"t slide. HThe stage one /rinci/les are focused on designing a solid foundation for the cell. The, are utiliGed li(e /rerequisites +efore mo0ing onto those items in stage two. The, reall, set the stage, so to s/ea(.I ASee -igure 59.5.B HThe first thing we ha0e to do is esta+lish ta(t time,I stated !ichard. H.0er,thing starts with ta(t time, which is nothing more than the designed dail, /roduction rate determined for the cell. )e are a+le to determine this from our customerMs /roduct demand +eha0ior and the amount of 0ariation :igure 64.6 'ean Manufacturing Principles
1e)loy!ent
6;4 we ha0e in that /attern. -rom there, we need to esta+lish our standard wor(. )e accom/lish this through a series of ste/s@ A5B ca/ture the current /rocess flow, identif, 0alue8 and non80alued8added o/erations, and time each of the ste/s in the /rocessJ A1B eliminate or reduce the amount of non80alued ste/s or waste in the /rocess and lin( the 0alue8added /rocesses togetherJ A3B +alance the wor( load of each o/erator to the required ta(t timeJ and A4B document this as the standard method, sequence, and assignment of wor( for o/erators in the cell.I HFnce we ha0e an agreed u/on a standard wor( /rocess, we need to identif, the com/onent /art Kan+an requirements and the new rules, roles, and res/onsi+ilities for the cell team mem+ers,I e"/lained Heather. )e need to determine the /arts and quantities and how the, are going to +e re/lenished to the cell. In addition, we will document@ A5B the new o/erating rules for the cell so e0er,one (nows how it is designed to function, A1B the roles each /erson has as a team mem+er, and A3B the res/onsi+ilities each role is accounta+le to /erform.I HFnce we ha0e those /rinci/les, we can create the gra/hical wor( instructions for the cell +ased on the new standard wor(,I said arl. H)e can then decide what scheduling /attern we want to use to le0el /roduction through the cell. )e loo( at high8 and low80olume demand /atterns, setu/ times, and /rocess qualit, ,ields to determine the /roduction le0el. I $, this time, !o+ert was +eginning to grin from ear to ear. H)ith those /rinci/les in /lace, we can now demonstrate the one8/iece
flow methodolog, and intra8cell /ull conce/t,I said Ste0e. HFne8/iece flow means that we no longer +uild in quantities of da,s or wee(s at a time. )e +uild one /iece at a time and /ass it onto the ne"t o/eration without waiting for the rest of the order to com/lete.I H-inall, we esta+lish 0isual controls and 9S, or house(ee/ing, criteria for the cell area,I said Paula. HThe 0isual controls consist of /erformance measures on the sho/ floor, for the sho/ floor, created +, the sho/ floor, maintained +, the sho/ floor, and owned +, the sho/ floor. Fther 0isual controls include well8mar(ed incoming and outgoing areas, signs descri+ing the cell, and cell +oundaries /ainted on the floor. The 9S conce/t is a well8organiGed and structured wa, to loo( at house(ee/ing. .0er,thing has a /lace and e0er,thing is in its /lace. .0er,thing that +elongs is la+eled, and the area is cleaned on an e0er,da, +asis.I !o+ert was s/eechless. His /roDect team had /ic(ed u/ on all the main conce/ts from stage one, ta(en them to heart, and was now full, engaged in this new world of lean manufacturing. The, had come a long wa, in the last three months, and he was 0er, /roud of the transition the, had made. He 6;=
stood when Paula was finished and +egan to descri+e to the cell team the KaiGen e0ent schedule A-igure 59.1B. HThe KaiGen e0ent schedule ,ou now see +efore ,ou will +egin on Monda,. The wa, it is designed to wor( is as follows@ H*a, Fne@ In the morning, the cell team will recei0e 1 hours of training on cell design and standard wor(. This training will /re/are ,our team for the wor( ,ou will +egin on Monda,, which will +e focused on /lanning the wee(, assigning res/onsi+ilities, re0iewing the detail design anal,sis, and generating a /reliminar, la,out. At the end of the da,, the team will re0iew their status. H*a, Two@ The cell team will recei0e training on material /ull and one/iece flow. )e are tr,ing to /ro0ide the training as ,ou need it and can a//l, it. In addition, we are tr,ing to (ee/ it concise for ease of retention. Fn Tuesda,, the final la,out will +e designed, communicated to maintenance, and rearranged. Again, at the end of the da,, the team will re0iew their status. H*a, Three@ ell team training continues on Kan+an requirements and defining cell team rules, roles, and res/onsi+ilities. Fn )ednesda,, the cell team will +e doing man, acti0ities in /arallel. 'ou will +e demonstrating the material and o/erator flow for the new cell. 'ou will +e im/lementing the :igure 64.9 Aai!en E(ent
1e)loy!ent
6;5 one8/iece flow /rinci/le. 'ou will +e esta+lishing the Kan+an methodolog, and disci/line for the re/lenishment /rocess. 'ou will +e documenting the o/erating rules, identif,ing the different cell roles, and descri+ing the res/onsi+ilities for each of the new roles. In addition, ,ou will ha0e selected the cell Kan+an containers and +egun to /roduce /ilot /roduction. Again, at the end of the da,, the team will u/date their status. H*a, -our@ The cell team will recei0e training on le0el /roduction scheduling and wor( instructions. 'ou will fill the selected Kan+an containers, generate and descri+e how to maintain the gra/hic wor( instructions for the new /rocess, and determine the le0el /roduction scheduling /attern for their cell. Again, at the end of the da,, the team will re0iew their /rogress. H*a, -i0e@ The cell team will recei0e final training on 9S and 0isual
controls. The team will use the 9S conce/t for house(ee/ing within the new cell, define the criteria for good house(ee/ing, and esta+lish the manner of audit for house(ee/ing. In addition, ,ou will determine, design, de0elo/, and de/lo, three to fi0e critical /erformance measures for the cell. Two of the recommended measures would +e some t,/e of scheduled out/ut adherence and a measure related to /rocess qualit,. Again, at the end of the da,, the team will u/date their status. H$, the end of the wee(, the team should ha0e a functioning cell. It wonMt +e /erfect and it ma, not e0en +e e"actl, the wa, ,ou reall, want itJ therefore, the following wee( is a0aila+le to ma(e changes and adDustments to get it the wa, ,ou want it. $, the end of the second wee(, we should /rett, much ha0e what we want and it is time to let the cell sta+iliGe. There will +e agreedu/on /erformance targets for the cell and an e"it criteria esta+lished in order to /erform an audit. After a+out = wee(s, the cell should +e /erforming consistentl, and ha0e satisfied the e"it criteria. It is at this /oint that we will discuss mo0ing on into stage two. Are there an, questions at this timeOI as(ed !o+ert. The cell team mem+ers loo(ed on with raised e,e+rows. The, were not quite sure what to ma(e of all this information, let alone how all this was going to +e accom/lished in fi0e da,s. !ealiGing the grou/ was /ro+a+l, in shoc(, !o+ert assured them, HI (now this is a lot of material, +ut the /roDect team felt it was im/ortant to /ro0ide ,ou with a good o0er0iew +efore we Dust ste//ed into it ne"t wee(. $elie0e me, it will all ma(e more sense as we mo0e into ne"t wee(.I As the following wee( /rogressed, Dust as !o+ert said, it all started to ma(e sense. The /roDect team +egan each da, with a sni//et 0ersion of the training to/ic for the da,. The, trac(ed themsel0es against the /roDect /lan the, had de0elo/ed on Monda,. The /roDect team had sa0ed itself a lot of time +, 6;>
doing a thorough Do+ during the detail design /hase +, determining the demand /atterns, ta(t time, wor( content times, equi/ment loads, etc. All this /re8wor( made getting into the detail la,out discussions with the cell teams much easier. The fact that the maintenance resources were on stand+, to rearrange equi/ment at the end of the second da, and actuall, got all the equi/ment mo0ed +, the time the team arri0ed on )ednesda, morning +lew the cell team awa,. $, the end of the da, Thursda,, the, were actuall, /roducing at half rate and demonstrating the one8/iece flow conce/t. $, this time, se0eral other !egal em/lo,ees were +ecoming interested in what was ha//ening at this new cell area, and +, the end of the da, -rida,, when all the equi/ment had +een /ainted, floors had +een mar(ed and swe/t, and a communication +oard was 0isi+le, the, wanted to (now when someone was going to do their area. As the /roDect team assem+led in the war room at the end of the long wee(, $rian /o//ed his head in and told the team the, had done an outstanding Do+. He had to admit to them, HI wasnMt quite sure Dust how much ,ou reall, were going to accom/lish, +ut I must confess ,ou ha0e sur/assed m, wildest e"/ectations. ongratulationsU Eo+ well done.I Eust as $rain was lea0ing, !o+ert arri0ed to tell the team how /roud he was of all the, had accom/lished. H'ou, as a team, ha0e come together and learned a great deal from each other. 'ou ha0e acquired (nowledge a+out the current o/eration, ,ou ha0e a//lied what ,ou learned a+out lean manufacturing, and now ,ou are transferring that (nowledge to others in the organiGation. That is where true com/etiti0e ad0antage comes from. It doesnMt
come from +u,ing a new /iece of equi/ment. It doesnMt come from rearranging the furniture. It doesnMt come from /utting in a Kan+an s,stem. It doesnMt come from hiring an e"/ert in lean manufacturing. It comes from the strengthening of ,our organiGationMs a+ilit, to res/ond to customer needs through e0er,one within the o/eration. HIts a+out equi//ing e0er,one with the (nowledge of how to +e lean and a+out e0er,one wor(ing to im/ro0e the o/eration a little +it e0er, da,. 'ou all ha0e done e"tremel, well u/ to this /oint, +ut Dust to this /oint. Im/lementation is where the ru++er meets the road, and ,ou ha0e onl, Dust +egun. !emem+er, this is where we start to rea/ the +enefits for all our efforts. &ow, go home. 'ou deser0e this wee(end, +ut +e read, to hit it again on Monda,.I 6;?
6=
"$e Results
s the following wee(s and months /assed, the lean manufacturing /rogram +egan to s/read across the entire o/eration. In a matter of = months, the, were a+le to +ring eight cells u/ through stage one, and si" of those cells also qualified through stage two. &one of the cells attem/ted stage three. It was felt that stage three would +e addressed when all the fa+rication, assem+l,, and ser0ice cells were functioning at a stage one le0el. If the, (e/t to the original im/lementation schedule, all 59 cells would +e functioning at stage two within one ,ear of their initial de/lo,ment. &ot onl, were the cells satisf,ing the e"it criteria for qualitati0e as/ects through 0isi+le e0idence of SM.*, TPM, 9S, standard wor(, Kan+an, etc., +ut the, were also affecting the quantitati0e criteria through greatl, im/ro0ed o/erational /erformance. The, were a//roaching +etween 19 and 39 turns on wor( in /rocessJ on8time deli0er, out/ut was consistentl, at ;>S e0er, da,J and the, achie0ed /redicta+le manufacturing lead8times for /roducts that were measured in hours not wee(s. The in8/rocess qualit, ,ields were relia+l, at the ;;S le0el, and la+or /roducti0it, had increased a+out 59S across the +oard without changing an, of the current manufacturing /rocesses. These changes in /erformance had generated tremendous enthusiasm among the em/lo,ees. .0er,one could now 0isi+l, see the status of their areas. The, (new if the, were on /lan for the da, or if /erformance was sli//ing. The, were a+le to identif, /ro+lems on the communication +oard as the, were ha//ening and ma(e issues 0isi+le. The teams were re0iewing their o/erational /ro+lems with management on a dail, +asis for timel, correcti0e action. It was the culmination of all these indi0idual /rinci/les that allowed !egal, Inc., to +egin addressing their identified com/etiti0e criteria and to align with what their customers 0alued. The, +egan to e"/loit their com/etiti0e
A
6<@
wea/ons in the mar(et/lace and challenge the com/etition, which in turn
was +eing reflected +, some changes in their +ottom line and the securing of additional wor( that was not /lanned for the ,ear. urrent quarter sales were shar/l, u/ o0er /lan, /rimaril, due to the securing of a new order for high8/erformance /istons from #iscon om/an,. !egal went head to head with $lue Iron and won a 18,ear contract +ased on their res/onsi0e leadtime and relia+le qualit, /erformance. These successes would ha0e +een short li0ed and unsustaina+le if the /roDect team had not realiGed how im/ortant it was to institutionaliGe the new wa,s of wor(ing, there+, ma(ing it e"tremel, difficult for the organiGation to sli/ +ac( into the old wa, of doing +usiness. The, (new that +, standardiGing the wor( and ma(ing the o/erating /rocesses e"actl, the same, the, would remo0e a source of 0ariation from the /rocess and enhance out/ut qualit,. Then, no matter who did the Do+, +, measuring the /rocess /erformance to a standard for time and out/ut it was 0er, eas, to recogniGe a+normalities as the, occurred. This allowed for greater control on the /rocess out/ut and timel, feed+ac( for correcti0e action. -inall,, the, were astute enough to recogniGe that rewards for the multi/le s(ills attained +, indi0iduals to su//ort the fle"i+le wor( en0ironment were crucial, as were rewards for consistentl, achie0ing and +eating /erformance targets. The, offered increased /a, for increased s(ill and rewarded cell teams with /erformance +onuses on a monthl, +asis if the, consistentl, achie0ed target and/or im/ro0ed the /rocess. Instituting these changes allowed !egal to +ecome a world8class manufacturing entit, o0er the ne"t cou/le of ,ears. The, had the tenacit, to sta, the course and ride out the short8term /ains for long8term gains. Fnce the, had their sho/ floor under control, !egal had a wor(ing model for su//liers to 0iew so the, could +egin to de/lo, similar methodologies within their own factories. Man, of !egalMs (e, customer accounts were a+le to see a significant change within the o/eration and got a glim/se of where the com/an, was going. This /ee( into the future im/ressed these (e, accounts and hel/ed secure additional new /roduct orders in the future. -or !egal Inc.@ ? onsistent lea&ershi) /ro0ided the direction and resources needed. ? 8nvolve!ent of the entire !egal organiGation allowed them to succeed. ? A lean roa& !a) hel/ed them sta, the course through roc(, terrain. ? A /assionate &esire o0ercame all o+stacles along the wa,. 'ou, too, can +e successful on ,our /ath to +ecoming world class, Dust li(e !egal. It is all Dust a matter of following the right ste/s.
I*
&ASE S"-3IES : 'EA0 MA0-:A&"-RI0G PR GRAMS A03 PR KE&"S

Part I# shows how si" different com/anies de/lo,ed lean manufacturing within their facilities Athe names and /laces ha0e +een changed to /rotect com/etiti0e confidentialit,B. .ach case addresses a different le0el or as/ect of a lean im/lementation, +ut the, all follow the same outline in regard to com/an, +ac(ground, dri0ers for change, the a//roach utiliGed, +enefits achie0ed, and lessons learned. In addition, there are testimonials at the end of each case that /ro0ide the reader with some insight into the /erce/tions of em/lo,ees e"/eriencing this changeo0er to a lean en0ironment. 6<;
6=
&ase Study A: perations Redesign Program
&ompany Profile
ocated in an industrial /ar( within the cit, of EuareG, Me"ico, resides a manufacturer of uninterru/ted /ower su//lies AUPSB for com/uters. This manufacturer was /art of the !a-"iia&ora s,stem utiliGed +, man, multinational com/anies as a source of low8cost la+or for /roducts. This /articular facilit, was one of man, sites owned and o/erated +, a com/an, called Unit, .lectronics. This /rimar, manufacturing location was contained within a ;2,2228square8foot facilit,, with a total em/lo,ee /o/ulation of a+out >92. Their (e, manufacturing /rocesses included the automated and manual insertion of /rinted circuit +oards AP $sB and wa0e solder o/erations, as well as manual and automated assem+l,. Unit, .lectronics mar(eted, designed, manufactured, and deli0ered UPS s,stems to the com/uter and communications industr, worldwide. The Unit, .lectronics o/eration was di0ided into se0eral different di0isions. The di0ision that owned this /articular manufacturing site was Sil0er S,stems 7rou/ ASS7B. SS7 generated a//ro"imatel, \192 million in re0enues during 5;;> +, focusing on three maDor /roduct segments C stand+,, line interacti0e,
and online units. The EuareG, Me"ico, o/eration was accounta+le for /roducing a//ro"imatel, one half of SS7Ms re0enue. The o0erall o/eration was di0ided among three facilities located in EuareG, Me"icoJ Horton Mesa, T<J and .l Paso, T<.
'
6<<
The original facilit, was +uilt when the initial com/an,, -aucet, was in the low80olume UPS +usiness. F0er time, the need arose to e"/and into an adDacent +uilding to su//ort a growing demand for higher and higher /roduction 0olumes. The resulting im/act was an ineffecti0e factor, flow and insufficient doc( s/ace to handle high80olume UPS /roduction. a/acit, constraints on equi/ment limited the a+ilit, to satisf, customer deli0er, requirements and /ro0ide on8time shi/ments. The factor, had to o/erate 14 hours a da,, = to : da,s a wee(, to meet customer requirements which did not allow an, time for reco0er, or ma(eu/ /lans should there +e line sto//ages. Ke, customers were also requiring additional ca/acit, and fle"i+ilit,, which could not +e met. To remo0e some of the constraints, P $ assem+lies were outsourced and /lans were made to transfer /roduction to other, higher cost facilities within the grou/. Automated insertion AAIB equi/ment was running around the cloc( to (ee/ u/ with /roduction, which allowed for onl, minimum scheduled maintenance. Aside from the factor,, there was a 32,2228square8foot warehouse facilit, in Horton Mesa, T<, which handled all in+ound and out+ound material shi/ments. In addition, there was a /eri/heral 53,2228square8foot material staging warehouse in EuareG to handle the o0erflow of materials due to the ineffecti0e flow through the /lant.
3ri(ers for &$ange

The o/erational /erformance of this manufacturing site had not +een satisfactor, for se0eral end8item customers o0er a 38 to ;8month /eriod of time. In &o0em+er 5;;:, Unit, .lectronics was /urchased from -aucet and internal management consultants from the new /arent com/an, were sent to 0isit the site to conduct an o/erations diagnostic on the .l Paso, Horton, and EuareG facilities. The result of this diagnostic indicated se0eral issues@ 5. Unit, des/eratel, needed to get control of its demand management /rocess. 1. The com/an, had a serious deli0er, /erformance /ro+lem A39S ontime to customer requested shi/ dateB. 3. In0entor, turns were around 1.>. 4. Su//lier management and de0elo/ment were reall, none"istent. 9. The limited ownershi/ for /roduct /erformance was scattered throughout the organiGation.
6<4 =. The /lanning and control of material and information flow were handled through two different M!P s,stems. In addition, se0eral informal +usiness rules were used to manage wor( /rioritiGation on the sho/ floor. :. A limited num+er of sho/floor metrics focused onl, on qualit,. >. Man, informal fi"es were /ut in /lace without institutionaliGing the im/ro0ements. In addition, Interma", a /rimar, F.M worth a//ro"imatel, 92S of Unit,Ms
+usiness, had recentl, come in and rated the qualit, s,stem of Unit, .lectronics as 0er, /oor C Hone of our worst su//liers.I )ith these identified dri0ers for change, it is not difficult to see what moti0ated Unit, .lectronics to /ursue a new wa, of doing +usiness.
ProBect Background
$ased on the a+o0e findings, an initial im/ro0ement effort was launched in *ecem+er 5;;> and focused on su//l,8chain management. $, -e+ruar, 5;;;, it +ecame increasingl, o+0ious that significant s,nergies could +e gained for the +usiness if se0eral ongoing initiati0es could +e com+ined under one /rogram. $, A/ril 5;;;, an Ho/erations redesignI /rogram Afocusing on lean manufacturing /rinci/lesB was launched which com+ined a su//l,8chain management /roDect, a strategic /rocurement /roDect, and a /lant e"/ansion /roDect into one o0erall /rogram. The Unit, .lectronics Unit, F/erations !edesign AUF!B /rogram was officiall, (ic(ed off +, selecting a multi8disci/lined team to focus on redesigning the 0alue stream for the entire o/erations /rocess. This team focused on two main tas(s@ A5B de0elo/ing an o0erall conce/tual design for the new o/eration, and A1B generating a /roDect im/lementation /lan that significantl, im/ro0ed the com/an,Ms a+ilit, to satisf, all e"ternal customer and internal +usiness e"/ectations. Throughout the /roDect, the /roDect team recei0ed significant training in +oth change management methodologies and lean manufacturing techniques for o/erations management. In addition to concentrating on the longer term /ers/ecti0e, short8term actions Aor quic( hitsB were identified, and im/ro0ements were incor/orated as quic(l, as /ossi+le during the conce/t design /hase. 6<=
ProBect Scope and
1Becti(e
Unit, .lectronicsM UF! /rogram addressed the entire o/erations /rocess from customer forecast and demand management through factor, floor management and scheduling to su//lier management and the distri+ution of finished goods. It included their glo+al strategic /rocurement initiati0e and too( ad0antage of the o//ortunit, to set u/ a HgreenfieldI o/eration within a +rand8new facilit, +ased on a +usiness unit a//roach. The /rimar, /erformance o+Decti0es were intended to affect@ ? C"sto!er re-"este& shi) &ate <CRS1=, the com/an,Ms /erformance measured against the date first requested +, the customer when an order is /laced. This is a measure of the entire /rocess of forecasting, finished goods/ser0ice le0el strateg,, and engineering and factor, /erformance. ? C"sto!er )ro!ise &ate &eviation, the com/an,Ms /erformance measured against the first /romise gi0en to a customer when an order is /laced. The /romise date ma, not equal the !S*. ? Man"*act"ring &elivery, a measure of the a+ilit, of the factor, to +uild and shi/ /roduct on its scheduled date. ? Man"*act"ring lea&6ti!e, the length of time from /rocurement of raw materials to com/letion of finished goodsJ also, the minimum length
of time from customer order to deli0er, of requested /roduct. ? S"))lier )er*or!ance, a measure of a su//lierMs a+ilit, to satisf, deli0er,, qualit,, ser0ice, and cost e"/ectations. ? 8nventory levels an& t"rns <raw !aterials, work in )rocess, an& *inishe& goo&s=, the annual cost of sales A/ast 3 months annualiGedB di0ided +, month8end in0entor, le0els.
ProBect Approac$
As was stated earlier, the o0erall a//roach to the UF! /rogram actuall, e0ol0ed o0er time. The /roDect initiall, +egan with a focus on the Unit, .lectronics su//l, chain, from the customer to manufacturing /lanning and control on the sho/ floor to the deli0er, of finished goods to the customer through warehouse distri+ution. After a few months of wor(ing on the /roDect, it was determined that a greater amount of le0erage and su+sequent +enefit could +e achie0ed through the s,nerg, of se0eral /roDects, so the entire
6<5 /roDect was +roadened to co0er all of o/erations and /laced under one /rogram management structure. This new sco/e co0ered e0er,thing from order administration and su//lier interface to manufacturing management and customer interface. The o0erall /rogram was s/lit into se0eral indi0idual /roDects, which were all interconnected 0ia a common /ur/ose through s/ecificall, identified o+Decti0es. The /roDects were segregated +, maDor +usiness /rocess to /ro0ide focus for the indi0idual teams and their assigned o+Decti0es. .ach /roDect had an identified leader with assigned team mem+ers. The /roDects were time /hased so that the team mem+ers who were assigned to initial /roDects could +e reassigned to later /roDects. $, assigning resources in this manner, Unit, was a+le to achie0e cross8functional (nowledge transfer through e"/osure across /roDect teams. The indi0idual /roDects included@ 5. Process layo"t+ As/ects dealing with the /h,sical flow, cell design, and final la,out for each of the cells A51B and +usiness units A4B. 1. Material )lanning an& control+ -ocus on the design and de0elo/ment of the logistics /rocess for /lanning and controlling the flow of material through the factor, and warehouse s,stem to the customer through Kan+an /ull. 3. 2rgani3ation &esign+ FrganiGation redesign and training /rograms that included the cell team, cell leaders, +usiness unit managers, and su//ort o/erations through a structured /rocess of assessment and selection. 4. %acilities Athe new /lantB@ onstruction of a +rand8new manufacturing facilit,.
9. Tactical )roc"re!ent+ *e/lo,ment of shared .*I with su//liers through .*I/e8commerce, and reduction of the current su//l, +ase +, 42S. =. Total ac-"isition cost+ 7eneration of a glo+al su//l, strateg, and su//lier de0elo/ment and selection /rocess. .ach /roDect had its own su+set of o+Decti0es and assigned deli0era+les, and each team had to re/ort /rogress to /lan for their /roDect e0er, wee(. Integration +etween the /roDect team leaders in regard to what the, were designing for the new /rocesses was essentialJ therefore, communication +etween teams was a constant acti0it,. 6<>
.0en though each /roDect was managed inde/endentl,, the, all had to follow the same methodolog, for design, de0elo/ment, and im/lementation. This methodolog, had se0en distinctl, inde/endent ste/s@ 5. Baseline would esta+lish a +aseline of current /erformance for the e"isting /rocesses. This was accom/lished +, ma//ing each of the critical o/erational /rocesses and gathering (e, /erformance data on each of those /rocesses. 1. 1esire& state would esta+lish the desired state for the +usiness. The team did this +, re0iewing the o/erations diagnostic that was conducted in *ecem+er of 5;;:. The, also /erformed a self8assessment on (e, +usiness /rocesses to determine where Unit, .lectronics was /erforming com/ared to what was considered +est /ractice. The, made site 0isits to other com/anies who were noted for o/erating with lean /ractices. The e"/ected outcome of this ste/ was for the /roDect team to recogniGe what was /ossi+le and to learn from the techniques of others. 3. Ga) analysis would recogniGe the ga/ +etween where the, were and where the, wanted to +e. An anal,sis was /erformed to understand the ga/ and identif, actions to close it. 4. Conce)t &esign would /ro0ide a high8le0el conce/t 0iew of the desired state for Unit, .lectronics, or a future state 0ision for what the /roDect team collecti0el, agreed the, wanted success to loo( li(e. It included deli0era+les such as +loc( la,outs, determining the num+er of cells, what /roducts are made in the cells, num+er of +usiness units, etc. 9. 1etaile& &esign would /ro0ide a detailed 0iew of the future state. It descri+ed all those elements that ma(e the future state a realit, and
included deli0era+les such as cell equi/ment requirements, equi/ment loads, Kan+an siGes, staffing needs, o/erating rules, material /lanning and control /rocess at the cell le0el, cell team mem+er roles and res/onsi+ilities, etc. =. 8!)le!entation )lan would de0elo/ an im/lementation /lan and include the time frame, identified deli0era+les, assigned ownershi/, transition strateg,, and sequence of e0ents to ma(e the future state a realit,. :. 0ec"tion actuall, would de/lo, the im/lementation /lan.
6<? As each indi0idual /roDectMs team anal,Ged and designed their im/ro0ements, the, were required to recei0e a//ro0al at each ste/ +efore mo0ing on to su+sequent ste/s. This ensured control of the /rogram. It (e/t the steering committee engaged in the /roDect and made sure that the, +ought into the design solutions +efore going too far with an una//ro0ed design. It also enhanced integration +etween the /roDects +ecause the steering committee was made u/ of cross8functional managers co0ering all as/ects of the +usiness. Therefore, the, were the o+Decti0e third8/art, 0iew that loo(ed at the solutions from an outside /ers/ecti0e. )hen it came time for im/lementation, the /rocess owners Athose who had to li0e with the new /rocess after the /roDect was o0erB were in the dri0erMs seat for de/lo,ment. The design team was to still remain assigned to the /roDect until the /rocess owner agreed the new /rocess wor(ed and was doing what it was designed to do. The one o0erriding strateg, was to /ro0e out the mechanics of the new /rocess in the old facilit,. )hen the new o/erational /rocess for the first +usiness unit was sta+le, then it would relocate to the new facilit,, there+, minimiGing ris( and a0oiding a dou+le mo0e of equi/ment. ."ecution of the im/lementation /lan had a few (e, as/ects worth noting@ 5. The res/onsi+ilit, for e"ecution was handed o0er to the indi0iduals who had ownershi/ for the new /rocess after im/lementation, there+, requiring +u,8in to the new design +efore de/lo,ment. This reduced the +urden of ha0ing to HsellI the new design to those on the sho/ floor. 1. A /ilot cell a//roach was used, +, which the im/lementation initiall, concentrated on one manufacturing cell, gathered all the lessons learned from that cell, and then carried those onto the ne"t manufacturing cell. This minimiGed ris( to the /roDect and allowed the /roDect teams to collecti0el, concentrate their energies on one /ilot cell during the learning stages of im/lementation. 3. $usiness units were de/lo,ed one +, one in accordance with the manufacturing cells the, su//orted. This allowed@ A5B the organiGation changes to ta(e /lace +ased around a s/ecific /roduct famil,, and A1B ownershi/ for all the o/erational /rocesses that affected that famil, to +e quic(l, ado/ted. This in turn accelerated the arri0al of +enefits at the +ottom line for that gi0en /roduct famil,. 64@
ProBect "ime 'ine
"ec$ni%ues -tili!ed
1ate Milestone
*ecem+er 5;;: Su//l, chain /roDect launched -e+ruar, 5;;> UF! /rogram detail s/ecification March 5;;> UF! /roDect team mo+iliGed Eune 5;;> Material /lanning/control design a//ro0ed Eul, 5;;> Pilot cell detail design a//ro0ed August 5;;> urrent +aseline /rocess com/leted Se/tem+er 5;;> Pilot +usiness unit design a//ro0ed Fcto+er 5;;> 7lo+al su//l, chain strateg, a//ro0ed &o0em+er 5;;> -irst cell goes li0e *ecem+er 5;;> -irst cell e"it criteria satisfied Eanuar, 5;;; -irst +usiness unit goes li0e A/ril 5;;; &ew /lant comes on line
Program and /roDect management harter, milestone /lan, haGards, issue log, /rotocol, /roDect organiGation, /roDect file, ris( assessment, detail schedule, deli0era+les, control mechanisms hange management ommunication /lanning, reaction to change, resistors Lean manufacturing A-i0e Primar, .lementsB Fne8/iece flow, standard wor(, wor(a+le wor(, /ercent loading chart, forward /lan, crosstraining, runner, re/eater, stranger, ta(t time, Kan+an, A$ material management, 9S house(ee/ing, /ull scheduling, 0isual control, roles and res/onsi+ilities, o/erating rules, sho/floor metrics, ser0ice cell agreements, mi"8model manufacturing, P/P anal,sis, /roDect8focused management, continuous im/ro0ement, routing anal,sis $usiness /rocess redesign $aseline /erformance, ga/ anal,sis, future state, conce/t design, detail design, im/lementation /lanning, transition strateg, Process 0alue anal,sis Su//lier8in/ut8/rocess8out/ut8customer ma//ing ASIPF B
646

? Adhere to and constantl, monitor meeting times and /roDect deli0era+les. If a deli0era+le is going to +e missed, immediatel, address the issue and de0elo/ a reco0er, game /lan. In this /articular case, it should +e noted that the Me"ican culture was not attuned to e"act time frames and s/ecific scheduled commitments. ? *o not assume a grou/ understands terms +eing usedJ rather, 0erif, that the, do understand the terms +eing used. A ommunicationU ommunicationU ommunicationUB Se0eral terms such as tea! and
5anban were new to this culture. ? *ri0e to detail as earl, as /ossi+le in the /roDect to assure (nowledge transfer. If the /roDect team can de0elo/ the detail schedule, with the a//ro/riate deli0era+les, in the correct sequence, the, are demonstrating understanding. This /re8/lanning is critical when it comes time to in0ol0e other resources outside the /roDect team Ae.g., /rocess owners, s/ecialistsB for scheduling meetings, 0erif,ing information, and discussing design o/tions.
3eli(ery Performance E&RS3F EF?B <Pre6.2R= <G= As o* CF?? <G= Target <G=
!unner /roducts 4> ;> ;; !e/eater /roducts 4= ;: ;: Stranger /roducts 45 ;2 ;2 Manufacturing 'ead2"ime
EF?B <Pre6.2R= <ho"rs= As o* CF?? <ho"rs= Target <ho"rs=
!unner /roducts 15 5= 55 !e/eater /roducts 32 12 59 Stranger /roducts 92 13 19

EF?B <Pre6.2R= <G= As o* CF?? <G= Target <G=
Producti(ity =: :: >4
EF?B <Pre6.2R= <&ays= As o* CF?? <&ays= Target <&ays=
In(entory 5>2 52= =2
649
? UtiliGe /roDect leader integration meetings to ensure that cross8functional team issues are +eing addressed and communicated. *e/ending on the /roDect, this should ta(e /lace at a minimum of once /er wee(. This as/ect is critical when multi/le initiati0es are +eing underta(en simultaneousl,. ? *e0elo/ and roll out the communication /lan earl, in the /rocess to a0oid e"cessi0e rumors and s/eculation. .m/lo,ees need to +e informed that a new /roDect is underwa,, wh, it is +eing done, and how the, are +eing affected. ?
!ecogniGe indi0idual ca/a+ilities and limitations when assigning /roDect roles. *o not o0erestimate the a+ilities of indi0iduals +ased on their enthusiasm for the /roDect. #erif, that the, ha0e +een allocated the time for their acti0ities and ha0e the e"/ertise to do the Do+. ? Ma(e sure /roDect /rotocols and /roDect files are utiliGed religiousl, throughout the /roDect life c,cle. The /roDect file is the H+i+leI for the /roDect. It contains the /roDect status, issues, game /lan, and e0idence of /rogress. At the end of the /roDect, it /ro0ides a guideline for the ne"t team that has to im/lement a similar initiati0e. ? *ocument /roDect roles and res/onsi+ilities earl, in the /roDect. Ma(e it 0er, clear who has ownershi/ for what at the 0er, +eginning of the /roDect. Lea0e no gra, areas or e"tensi0e o0erla/ of accounta+ilities. This will sa0e a lot of headaches later in the /roDect. ? UtiliGe H$el+inI /rofiles for insight whene0er /ossi+le. Meredith $el+inMs team role /rofiles /ro0ide 0alua+le insight a+out the ma(eu/ of a team and the /ro+a+ilit, of success. Ta(e ad0antage of this insight whene0er /ossi+le. ? !equire full8time team mem+ers during the design and anal,sis /hase. Part8time teams will onl, +e a+le to gi0e /art8time results. )hen a /roDect team has onl, 12S of its team mem+ersM time, it is 0er, difficult to maintain team continuit, and focus o0er the life of the /roDect. ? .nlist /rocess owner +u,8in to the new redesigned /rocesses. Process owners should +e gi0en res/onsi+ilit,, accounta+ilit,, and authorit, A!AAB for im/lementation whene0er /ossi+le. The, will own the /rocess after the /roDect is com/lete and therefore must agree with the new design. The, must acce/t ownershi/ for the designJ therefore, the, should +e intimate with its de/lo,ment. ? oordinate rollout of the /roDect with to/ management a//ro0al. To/ management has ultimate res/onsi+ilit, for what ha//ens at the /lant and therefore should a//ro0e maDor changes to the +usiness /rocess that are under their control.
64; ? Train all em/lo,ees who will +e in0ol0ed in the /roDect, not Dust the design team. Process owners need to (now how the /roDect is +eing managed, where the, fit in, and the o0erall direction and /hiloso/h, relati0e to lean management.
"estimonials
H-rom the first diagnostic to the end of the /roDect, it was the stead, /ressure, honest,, and /rofessionalism of all the teams that deli0ered success. The constant feed+ac( reall, hel/ed (ee/ us on the right /ath.I A'ice Presi&ent, 2)erations H$, reorganiGing the entire Me"ico F/erations organiGation into cell manufacturing +ased +usiness units, we e"/ect to see the following measura+le results@
H5. Producti0it, im/ro0ements@ reduced direct head8count requirements, e"tensi0e training /rograms and IP /rograms. H1. Increased manufacturing fle"i+ilit,, the nature of cell manufacturingJ we will also +e hea0il, cross8trained at the cell and su//ort team mem+er le0els. H3. Management +, o+Decti0e@ 0irtuall, e0er, de/artment in the facilit, has +een tas(ed to de0elo/ /erformance metrics +, which to assess their /erformance, including the +usiness units. H4. !eduction in the cost of qualit,@ we ha0e im/lemented /rogressi0e ins/ection through/ut the /lant, reducing the num+er of ins/ectors. H9. Im/ro0ed health and safet,@ the focus on cell ownershi/ along with 9S training will im/ro0e the sho/ organiGation as well as /lant cleanliness. H=. To mo0e from +eing one of Interma"Ms lowest rated su//liers to one of the +est in less than one ,ear.I A1irector Plant 2)erations HTa(ing a significant ste/ forward in the /rogram//roDect management /rocess accom/lished a num+er of /ositi0e initiati0es@ H5. larified the roles and res/onsi+ilities of the management, teams, and /artici/ants. 64<
H1. Set forth a standard set of o/erating rules for all the teams to follow. H3. Pro0ided a message to all of management that the standard /rocesses will +e em+raced. H4. Pro0ided a team structure that affords accounta+ilit, for its mem+ers and leadershi/.I AProgra! Manager HUnit, made significant im/ro0ements in their o0erall qualit, and manufacturing /rocess. TThe score of := on this new sur0e,, as com/ared to sur0e, scores of =9 in A/ril 5;;> and 93 in *ecem+er 5;;:, T is one of the +est scores in the shortest /eriod of time among Interma" su//liers.I A8nter!a0 9"ality Syste! A"&itor 644
6=
&ase Study B: Aai!en E(ent2Based 'ean Program
&ompany Profile
he headquarters for )interton or/oration, a \5.9 +illion a ,ear /roducer of industrial /roducts, are located a+out 52 miles west of the le0eland downtown cit, limits. )interton was /rimaril, segregated into three o/erating di0isions, a centraliGed sales/distri+ution o/eration, and an inde/endent research and de0elo/ment facilit,. The cor/oration managed
3> indi0idual manufacturing facilities A1: in the U.S. and 55 internationall,B. The, em/lo,ed a//ro"imatel, 55,:22 /eo/le and utiliGed se0eral inde/endent distri+utors to su//l, their 0arious /roduct lines to the mar(et/lace. These lines included /roducts such as +all+earings, industrial a//lication chain, cou/lings, electrical/mechanical com/onents, seals, con0e,or trac(, gears, motors, and hoists. The )interton +rand name goes +ac( o0er 522 ,ears. The, ha0e the re/utation of /ro0iding a qualit, /roduct that lasts. The, had +een a+le to +uild a strong mar(et /resence in &orth America o0er the ,ears through@ A5B good +rand8name equit,, and A1B acquisition of other +usinesses. These two elements allowed them to grow into a siGa+le organiGationJ howe0er, as time /assed, the mar(et/lace changed and foreign com/etition +egan to erode a significant share of their mar(et. Since )interton or/., as a whole, had +een o/erating in a 0er, mature industr,, their introduction of new /roducts to su//ort organic growth had +een limited o0er the ,ears. The, su//orted their
"
64=
/rimar, customer +ase through a finished8goods distri+ution warehouse s,stem which was good from a res/onsi0eness stand/oint when /roduct was on the shelf, +ut it required a significant in0estment in in0entor, to maintain.
3ri(ers for &$ange

)interton or/. was not the dominant com/etitor in man, of the mar(ets it ser0ed. Although some of the indi0idual sites were /erforming quite well from a financial /ers/ecti0e Acash flow, /rofit margins, return on sales, etc.B, o0erall the, were e"/eriencing /ro+lems from an o/erational /ers/ecti0e. Se0eral of the com/anies were ha0ing trou+le (ee/ing their full /roduct lines in stoc( on the warehouse shel0es within the distri+ution centers. $ecause man, of these com/anies had +een una+le to lin( u/ with F.Ms for new /roduct introductions, man, of their /roducts were at the end of their /roduct life c,cles and com/eting almost entirel, on /rice Asimilar to a commodit, /roductB. The organiGation design, manufacturing architecture, and material flow methodologies were struggling to satisf, new e"/ectations for o/erational /erformance. The maDorit, of the o/erations were managing all their /roducts as H+atch and queueI through manufacturing resource /lanning AM!P IIB. All /roducts were scheduled with the same /lanning and control /rocess regardless of their /roduct demand +eha0ior. a/acit, /lanning was not utiliGed well as a management tool, and /roduction orders were usuall, launched to the sho/ floor and ca/acit, constraints reconciled at that time. It was not uncommon to find the master /roduction schedule AMPSB managed 0ia sales dollars rather than +, /roduction unit. #isi+ilit, on the sho/ floor in regard to /erformance to /lan for deli0er,, qualit,, in0entor, turns, c,cle time, equi/ment downtime, /roducti0it,, etc. was not clearl, e0ident. There was limited tie8in +etween sho/floor acti0ities and o0erall +usiness o+Decti0es. It was difficult to see where em/lo,ees were engaged in the o/eration of the +usiness, due to the lac( of feed+ac( as to how the, were /erforming. In res/onse to the need for the entire )interton organiGation to +e com/etiti0e, a significant change in the wa, the manufacturing sites were +eing managed was +eginning to e0ol0e.
ProBect Background
In &o0em+er 5;;>, )intertonMs /arent com/an, merged with a second com/ara+le o/eration. This second o/eration had s/ent se0eral ,ears im/lementing
645 lean manufacturing across most of its com/anies. Man, of these com/anies had +een following an a//roach that de/lo,ed lean manufacturing strictl, 0ia a series of KaiGen e0ents or H+litGes.I After se0eral ,ears of conducting KaiGens in manufacturing, it had +ecome e0ident to these com/anies that man, of the lean techniques used +, the sho/ floor were a//lica+le to administrati0e en0ironments as wellJ therefore, the, e"/anded the /rogram to co0er the entire +usiness o/eration. This strategic initiati0e +ecame (nown as Hlean enter/rise.I -ollowing the merger, the new /arent com/an, e"/ected each of its di0isions and com/anies to ado/t the im/lementation of lean manufacturing within their facilities. )hen it came time for )interton to +egin its lean /rogram, the, ado/ted the KaiGen e0ent8+ased a//roach. In addition, the, su//lemented the KaiGen e0ent8+ased a//roach with the utiliGation of a 48 da, lean class to enhance (nowledge transfer to the wor(force. This 48da, lean class was designed for those who alread, had attended an e0ent in order to reinforce those to/ics co0ered during the KaiGen e0ent. This cor/oratewide /roDect was launched with an initial /ilot de/lo,ment at two )interton com/anies in A/ril 5;;;.
ProBect Scope and
1Becti(e
)interton or/oration initiall, targeted 13 com/anies in &orth America for the ado/tion of lean manufacturing, with a time frame for im/lementation of A/ril 5;;; through *ecem+er 5;;;. The com/anies were identified, selected, and di0ided u/ +etween se0eral internal management consultants who had /re0ious (nowledge of lean manufacturing conce/ts to su//ort the rollout of the lean enter/rise /rogram. The lean KaiGen e0ents and 48da, lean classes were scheduled and attendees in0ited. There were two /rimar, o+Decti0es for the /rogram. The first was to conduct at least one KaiGen e0ent at each of the 13 sites in order to introduce the organiGations to the lean conce/ts and de0elo/ KaiGen e0ent leaders. The second was to e"/ose as man, em/lo,ees as /ossi+le to the 48da, lean class +efore the end of *ecem+er 5;;;. The lean class target audience included /lant managers, manufacturing managers, +u,ers, schedulers, /roduction engineers, and first8line su/er0isors. The o0erall intent was to Dum/ start )intertonMs mo0e toward lean, to educate as man, /eo/le as /ossi+le a+out lean tools and techniques, and to demonstrate an im/ro0ement in o/erational /erformance through KaiGen e0ent /roDects as soon as /ossi+le. 64>
ProBect Approac$
$eginning in A/ril 5;;;, com/anies +egan hosting the KaiGen e0ents at their indi0idual facilities and in0ited attendees from other )interton facilities to /artici/ate in the e0ents. The e0ents were intended to last 4 da,s and usuall, concentrated on four se/arate /roDects, t,/icall, three /rocesses from the sho/ floor and one administrati0e /rocess. .ach /roDect had a cross8functional team of > to 51 /eo/le assigned to it. The strateg, was for these e0ents to +e utiliGed as s/ring+oards of lean acti0it, within the o/erations. Fnce a
com/an, had conducted a KaiGen e0ent, the, were to continue following u/ with other e0ents as needed to find waste in the +usiness and continuall, im/ro0e the o/eration. T,/icall, an e0ent lasted 3 to 9 da,s, de/ending on /roDect sco/e, o+Decti0es, and whether the site had /re0ious e"/erience with KaiGen. The first da, consisted totall, of training and education. It was a mi"ture of lecture, e"ercises, discussions, and simulations. The training addressed multi/le lean manufacturing to/ics Ae.g., one8/iece flow, Kan+an, 0isual management, measures, etc.B. The second and third da,s were the actual KaiGen e0ent itself, during which the teams@ A5B +aselined the e"isting /rocessJ A1B designed a new /rocessJ A3B demonstrated the new /rocess, including the rearrangement of equi/mentJ and A4B re8+aselined the new /rocess. Fn the fourth da,, the teams re0iewed their successes and de0elo/ed a follow8u/ strateg, for an, remaining Hto doI actions. $efore the e0ent, there was some initial discussion with the com/an, /resident a+out the current state of the +usiness and what lean enter/rise could do for them. After agreeing on the four /roDects, /roDect team leaders were assigned. These team leaders, if the, had not alread, run a KaiGen e0ent, were required to attend the e0ent of another site in order to gain some e"/erience in managing a KaiGen e0ent. In addition to the KaiGen e0ents that were +eing conducted at each of the sites, the 48da, lean class was +eing deli0ered in order to reinforce the learning /oints from the KaiGen e0ents and to e"/and the (nowledge +ase of )interton em/lo,ees. This lean class was +eing /resented to audiences that had alread, attended a KaiGen e0ent. $ecause there was a large num+er of em/lo,ees who needed to +e e"/osed to the additional lean material in a short /eriod of time, the lean classes were conducted in /arallel with the scheduled rollout of the KaiGen e0ents. This KaiGen e0ent8+ased a//roach to im/lementing lean management resulted in man, of the com/anies achie0ing demonstrated /erformance changes during the one8wee( e0entJ howe0er, se0eral of the com/anies were
64? not a+le to sustain that change. In some instances, com/anies e0en re0erted +ac( to their original /ractices and le0el of /erformance. It would a//ear there were se0eral reasons for this outcome@ 5. A general lac( of /re/aredness e"isted +efore the KaiGen e0ent was launched. Much of the data required in order to +egin the anal,sis /hase on the second da, of the e0ent were not readil, a0aila+le. The clarification to em/lo,ees as to managementMs e"/ectations was limited. 1. A great deal of confusion surrounded the entire wee(8long e0ent as to what the, were doing and wh,. Little u/8front communication a+out wh, this lean /rogram was im/ortant to the +usiness or how it fit into e"isting +usiness initiati0es had +een /resented. 3. The follow8u/ on Hto doI acti0ities and coordination of multi/le assignments after the e0ent /ro0ed to +e quite a challenge for man, of the com/anies. F/en items lingered for wee(s and sometimes months. Ke, resources within the +usiness were o0erwhelmed with wor( Aes/eciall, maintenance and information s,stemsB, and decisions a+out what to do and where to go ne"t were not 0er, clear to /eo/le within the +usiness. Although man, com/anies struggled, se0eral com/anies were a+le to achie0e im/ro0ed /erformance and successfull, sustain it. These com/anies
had se0eral traits in common@ >. Lea&ershi). There was a constant dri0ing force that o0ercame a/ath, and did not let inertia set into the organiGation. There was an unwillingness to allow statements such as H)e canMt do thatI or HThat wonMt wor( hereI to sto/ the effort. The tenacit, to see it through and a willingness to tr, new a//roaches were constants. C. 1irection. An o0erall /lan or 0ision as to what was ne"t or what success loo(ed li(e when the /rogram had achie0ed its mission was 0er+aliGed. Knowledge a+out what the ne"t ste/s might +e and an understanding of which technique to use ne"t along that /ath were e0ident. H. Co!!on goalFobIective. It was esta+lished u/ front with the /roDect team what the, were tr,ing to achie0e in a quantifia+le manner. There was a concentration of their collecti0e efforts on measura+le targets. The, com/ared actual /erformance against those targets, /osted the actual results in order to trac( /erformance, and were held them accounta+le for achie0ing those targets. 6=@
E. S"))ort. The, /ro0ided constant coaching and guidance to the /roDect team in order to hel/ them gain confidence with the tools and techniques. There was continual interaction with the team to hel/ them sta, on trac(, which remo0ed the /ossi+ilit, of inertia setting in and /ro0ided encouragement through the tough times in order to (ee/ their s/irits u/. The com/anies that e"hi+ited these traits were a+le to achie0e a change in /erformance and sustain that change. In all cases, someone who held a leadershi/ /osition within the o/eration demonstrated these traits. $e it a /resident, general manager, or 0ice /resident, each of them was a dri0ing force for ma(ing the KaiGen e0ent8+ased a//roach +e successful within their /lants.
ProBect "ime 'ine Benefits Ac$ie(ed
EF?? JF?? KF?? @F?? BF?? ?F?? >DF?? >>F?? >CF??
K. Y 1 K. Y 4 K. Y 4 K. Y 4 K. Y = K. Y 4 K. Y 3 K. Y 3 C A>B A5=B A5=B A52B A5;B A:B A4B A9B C L Y3L Y5L Y3L Y3L Y3L Y1
/ote+ K. Y KaiGen e0entsJ num+ers in /arentheses indicate the num+er of /roDectsJ L Y num+er of 48da, lean management classes. ProIect Ty)e 9"antity Res"lt Bene*it
ell manufacturing 51 ,cle8time reduction 32W;9S Producti0it, increase 59W42S SM.* 5= hangeo0er reduction 39W;2S Manufacturing flow 5; ,cle8time reduction 12W;2S Administrati0e flow 5: ,cle8time reduction =2W;2S Kan+an/material /ull ; In0entor, reduction =2W;2S Material flow/stores 4 ,cle8time reduction =2W>2S
6=6
"ec$ni%ues -tili!ed 'essons 'earned

?
Proclaim a 0ision and clarif, a le0el of e"/ectation at the +eginning of a /roDect. This is necessar, to set the tone, generate a focus for common grounding, and hel/ engage all em/lo,ees in the change /rocess. ? a/ture the current /erformance of identified /rocesses as a +aseline, and measure actual /erformance results that directl, align with and im/act the +ottom line. These should +e tangi+le measures related to changes in the /rocess Ae.g., /erformance to /lan of /roduction schedules, le0els of in0entor,, dollars of scra/ /er /roduct out/ut, /roducti0it, of /roduct out/ut/manhour in/utB. ? onduct /lanning and anal,sis of the +usiness +efore initiating the KaiGen e0ent. An understanding of current +usiness initiati0es, where the com/an, is going, and what le0el of /erformance is needed for a /roduct and in what mar(ets is crucial. ? Include acti0ities +oth +efore and after the wee( of the KaiGen e0ent when /lanning for the e0ent. A lean road ma/ is necessar, in order to communicate to e0er,one in the organiGation that this is a /rogram to sta, and not Dust a Hfla0or of the monthI initiati0e. $efore the KaiGen e0ent is conducted, all the detailed anal,sis of demand management,
Lean manufacturing AKaiGen e0entB Fne8/iece flow, ta(t time, /ercent loading chart, Kan+ans, material /ull, 9S house(ee/ing, 0isual controls, /ro+lem +oards, sho/floor metrics, /rocess ma//ing, SM.*, TPM, Po(a8,o(e Lean manufacturing A48da,B Eido(a, autonomation, Andon, 0isual controls, Dust8in8time, ta(t time, continuous flow, /ull s,stems, standard wor(, wor( element anal,sis, 9S house(ee/ing, muda, /rocess ma//ing, Kan+an, HeiDun(a, Po(a8,o(e, TPM, F.., +ig si" losses, Do+ instruction training, cross8training
6=9
wor( content, equi/ment a0aila+ilit,, etc. should +e com/leted. After the e0ent, it is im/ortant for the /roDect team to (now where to go ne"t and what to e"/ect. This is accom/lished +, creating a road ma/ that loo(s +e,ond Dust the current wee(. ? Plan on ha0ing the lean management e"/erts remain with the /roDect for an e"tended /eriod of time during and after the KaiGen e0ent to e"/lain, demonstrate, and 0erif, use of the lean manufacturing tools and techniques. The constant coaching and guidance reinforce learning of the tools and 0erif, that (nowledge has actuall, +een transferred. ? !ecogniGe that there is an interrelationshi/ +etween +usiness /rocesses. $usiness /rocesses function as a s/ider we+ of acti0ities, where a change in one /rocess often affects other /rocesses. )hen de/lo,ing lean manufacturing, it is im/ortant to (ee/ this in mind. ?
Plan a coordinated effort of all lean initiati0es across the /lant. ProDects should +e integrated into one o0erall game /lan in order to achie0e s,nerg, +etween the /roDects and ma(e sure the, are all headed in the same direction. ? Announce to the entire organiGation what is ha//ening, wh, the com/an, is doing it, and who is in0ol0ed with the /roDect. )hen /eo/le see acti0it, ha//ening within the organiGation and do not understand what it is for or wh, it is going on, the, tend to +e sus/icious of the /roDect and will not readil, engage themsel0es with the effort. ? Include /rocess owners in the KaiGen e0ent when conducting acti0it, in their area. It is critical that the, understand the /ro+lems +eing faced and that the, +u, in to the solution that has +een de0elo/ed. After all, the, ha0e to li0e with the solution when the e0ent is o0er. ? InstitutionaliGe or Hloc( downI the new wa, of doing +usiness through documentation Astandard wor(B and control A/erformance measuresB to sustain the change. If the new /rocess is not recorded, /resented for em/lo,ee training, and monitored as to 0ariation from the design, then the /rocess has a 0er, high /ro+a+ilit, of returning to the old wa,s.
6=;
"estimonials
HThe four8da, class should ha0e +een done first. It would ha0e gi0en me a +etter idea what we were doing and wh,.I A%irst6Line S")ervisor HThe KaiGen e0ent was e"hilaratingU )e got more done in two da,s than we ha0e in the /ast two ,ears.I ASho)*loor 2)erator HI feel li(e I ha0e +een gi0en a hammer, a screwdri0er, and a /air of /liers. I ha0e +een shown some tools, +ut I ha0e no idea how to use them.I A ngineering Manager HA great deal of ha0oc is created o0er a few da,s and then no+od, remains to hel/ clean u/ the mess after the e0ent. )e ha0e this long list of Rto doM items and no+od, to do them.I ASho) S")erinten&ent HAfter seeing the lean class, I ha0e a +etter understanding of the a//roach and where se0eral of the techniques fit together, +ut I am still short on how to use the tools and when.I A9"ality ngineer HThe e0ent was great. )ho is going to ma(e sure we (ee/ doing itOI ASho)*loor 2)erator 6=4
6=
&ase Study &:
+ig$2*olume2:ocused :actory ProBect

&ompany Profile
ithin wal(ing distance of the cit, limits of Frlando is a manufacturer of engineered chain /roducts called T, or hain. T, or hain is actuall, the com+ination of two se/arate facilities, T,ron and or+in. .ach o/eration had +een +uilding chain since the 5>22s, +ut /lant rationaliGation resulted in consolidating the /lants in 5;;5. The Frlando site had +een e"/eriencing a reduction in siGe and head count since the 5;:2s and had the s/ace a0aila+le to relocate equi/ment. T, or was a unioniGed sho/, and wor(ers were mem+ers of the United Steel )or(ers local >1;. There were 392 em/lo,ees on the /a,roll, of which 5:9 were direct la+or. The facilit, s/rawled o0er 422,222 square feet and was aligned in a traditional factor, la,out with assem+l, de/artments and fa+rication de/artments. The /rimar, manufacturing /rocesses were turning, grinding, cold forming, heat8treating, and the manual and semi8automated assem+l, of chain. F0er the ,ears, this o/eration was at one /oint a+le to increase sales to o0er \92 million /er ,ear, with a /ea( of \99 million coming in 5;;=J howe0er, se0eral ,ears of mar(et decline, changes in ownershi/, and a lac( of in0estment had left the com/an, with sales re0enues of \3> million and dro//ing /rofits. .fforts to con0ince se0eral different owners that a significant in0estment in ca/ital was required to turn this o/eration around were not successful, thus lea0ing them with limited alternati0es to im/ro0e the o/eration.
)
6==
3ri(ers for &$ange

Fther than the o+0ious loss in mar(et share, decreasing re0enues, and limited /rofit num+ers, this o/eration was +eing hit with hea0, foreign com/etition from such unli(el, sources as India, hina, Singa/ore, and Taiwan. The foreign com/etition was /roducing a /roduct of com/ara+le qualit, at a cost significantl, less than T, orMs. In addition to the e"ternal forces for change, there were internal forces as well. )hen T, orMs new /arent com/an, came to 0isit, it was made clear that this o/eration needed to ma(e some significant changes to com/ete as a 0ia+le entit, within the grou/. )ith these identified issues as dri0ers for change, it was not difficult to esta+lish a moti0ation for change within this organiGation.
ProBect Background
In 5;;=, a strategic /lan was de0elo/ed to im/lement Hfocused factoriesI throughout the facilit,. This /lan was well thought out, +ut it was also e"/ensi0e due to the required in0estment in new ca/ital. In earl, 5;;:, T, or hain in0ited a grou/ of /roducti0it, consultants to wor( with the management team and sho/ floor to +oost on8time deli0eries and increase /roducti0it,. The /roDect did not go as /lanned and had a negati0e im/act on relations +etween management and the sho/floor union wor( force. This unresol0ed conflict was still e0ident when, in Ma, of 5;;;, T, or again
initiated a com/an,8wide effort to im/ro0e the o/eration through the im/lementation of lean manufacturing. The lean effort initiall, +egan as a series of KaiGen e0ents. The /rogram officiall, (ic(ed off in Ma, 5;;;, with four indi0idual KaiGen /roDects ASM.*, Kan+an, and two /roduct flow cellsB. Three of these /roDects were selected +ecause the, were the right siGe to quic(l, demonstrate a change in /erformance through the su//ort of sho/floor em/lo,ees. It was considered critical to +egin mending relations with the union and tr, wor(ing together through the KaiGen e0ent as a wa, to Dointl, im/ro0e the o/eration. The fourth /roDect, Kan+an, was considered an integral /art of the de0elo/ment of a Hfocused factor,I conce/t that was to +e de/lo,ed later on in the ,ear. *uring the e0ent, target sheets were created for each of the indi0idual /roDects, and se0eral of the /roDects were a+le to demonstrate im/ro0ement during the e0ent. F0er the course of the ne"t few months, T, or hain continued to launch additional KaiGen /roDect teams across the factor, as Hislands of im/ro0ement.I A tremendous amount of energ, was +eing e"/ended and initiati0es
6=5 were getting startedJ howe0er, the, were ha0ing trou+le com/leting all the /roDects, including the focused factor,. )orse ,et, results were not showing u/ on the +ottom line. In &o0em+er, it was determined that a change in course was necessar, in order to channel the collecti0e energies of all em/lo,ees and +egin to generate results at the +ottom line. So, a course was set for im/lementing focused factories across the entire facilit,.
ProBect Scope and
1Becti(e
In *ecem+er 5;;;, the *irector of Plant F/erations conducted a re0iew of the /rogramMs o0erall /rogress and led a discussion of alternati0e a//roaches with the President of T, or hain and the com/an,Ms controller. This meeting was used to clarif, e"ecuti0e management e"/ectations relati0e to the lean /rogram and to o+tain su//ort for the new direction. After a length, discussion, the, decided u/on the following actions@ 5. hange the course of the /roDect to concentrate on getting the focused factories u/ and running, rather than s/reading the efforts across the o/eration through the Hisland of acti0it,I a//roach. 1. Fnce the first focused factor, was u/ and running as a good Hwor(ing modelI that satisfied an identified e"it criteria, re/licate that model throughout the +alance of the factor,. 3. Scale +ac( the amount of KaiGen /roDects currentl, scheduled and com/lete those /roDects that had alread, +een started +efore underta(ing an, new KaiGen /roDects. 4. S/ecif, a /roDect management structure with /rotocol, steering committee, detail schedules, defined deli0era+les, assigned ownershi/ for deli0era+les, etc. 9. hange organiGational res/onsi+ilit, for the entire set of manufacturing /rocesses that su//ort a focused factor,, and select a focused factor, manager with ownershi/ for the /roduct from Hcradle to gra0e.I =. .sta+lish o/erational measures that would demonstrate +ottom8line im/ro0ements through im/ro0ed in0entor, turns, reduced head count, reduced /ast8due orders, etc. and would hold the focused factor, manager accounta+le for the /erformance.
$, re0iewing annual demand 0olumes for the entire line of chain /roducts, T, or was a+le to determine that the highest 0olume /roduct demand 6=>
was for their snowmo+ile dri0e8chain /roduct line, which was alread, +eing im/lemented +ut with limited success. &ot onl, was this a high80olume demand /roduct, +ut it was also a 0er, standard /roduct with little com/le"it, +, wa, of manufacturing /rocesses. In addition, T, or claimed >>S of the mar(et for snowmo+ile chainJ therefore, it was determined to ma(e that facilit, the /ilot focused factor,. The /rimar, o+Decti0es esta+lished for the snowmo+ile focused factor, included@ 5. .liminate all /ast8due orders A9222 strands at the time of /roDect launchB. 1. Im/ro0e in0entor, turns from 9 to 92. 3. UtiliGe Kan+an re/lenishment for all high80olume com/onents. 4. Assign a focused factor, manager. 9. Im/lement a s(ill8+ased /a, s,stem to re/lace the current unioniGed indi0idual incenti0e /a, s,stem. =. UtiliGe one8/iece flow methodolog, Aone strand of chainB to enhance qualit, feed+ac( and s/eed manufacturing c,cle time.
ProBect Approac$
As was stated earlier, in *ecem+er 5;;; the o0erall a//roach to the lean initiati0e was altered. !ather than s/read the energ, of man, /eo/le across a large area Aremem+er, this facilit, is 422,222 square feetB, the a//roach was changed to that of esta+lishing a good wor(ing model that could +e du/licated throughout the factor,. The initial ste/ in this /rocess was to esta+lish a full8time lean team dedicated to de/lo,ment of the lean /rogram. This allowed all those indi0iduals who were tr,ing to /rioritiGe acti0ities with /art8time resources to esta+lish a single, /rimar, focus C im/lementation of lean manufacturing. The ne"t ste/ was to concentrate efforts on securing a win. This was accom/lished +, designating s/ecific /roduct grou/s or families Ae.g., snowmo+ile chainB toward which the lean team would channel their efforts at de0elo/ing focused factories. This is not to sa, that all other KaiGen efforts were /ut on hold. T, or Dust needed to reduce the quantit, of KaiGen e0ents that had +een scheduled and reschedule them to some later date. This relie0ed the +urden on the organiGation infrastructure so that acti0ities could now +e com/leted and the focused factor, conce/t could +e de/lo,ed. The o0erall conce/t for the focused factories required se0eral changes within the o/eration@
6=? 5. The ownershi/ for /erformance of the focused factor, was realigned to the entire /rocess of /roducing chain. .0en though assem+l, cells were at one end of the +uilding and fa+rication of com/onents used in the assem+l, of chain was located at the other end of the +uilding, res/onsi+ilit, for +oth was assigned to the focused factor, manager of that /roduct grou/ing. 1. In the focused factories, the assem+l, cell was esta+lished first, as it was closest to the customer. There were s/ecific lean /rinci/les required for the assem+l, cell to function, and s/ecific /erformance le0els were e"/ected. As the cell achie0ed these He"it criteriaI and was considered sta+le, then the fa+rication cell was +rought on +oard. A-or the snowmo+ile factor,, these e0ents ha//ened simultaneousl,
due to the fact that it had a narrow /roduct line with high80olume demand and dedicated equi/ment.B 3. )hen +oth cells had satisfied the e"it criteria and were /erforming at a sta+le le0el, then the, could +e lin(ed through a Kan+an /ull signal for /art re/lenishment. This action eliminated the stoc( room and generating /art demand +ased on M!PII. 4. The last ste/ was to relocate the entire focused factor, to its final configuration, there+, com/letel, lin(ing the entire focused factor, from +oth a /h,sical and a logistical /oint of 0iew. It was done in this manner /rimaril, +ecause of the e"/ense and ris( in0ol0ed in mo0ing the fa+rication equi/ment +efore (nowing which end of the +uilding was a//ro/riate. 9. The indi0idual incenti0e s,stem used to com/ensate the wor(force had to +e re/laced +ecause it was dri0ing the wrong +eha0ior and did not fit with the new focused factor, conce/t. Therefore, T, or management de0elo/ed a new s(ill8+ased /a, s,stem. $, la+or contract, the, could do this +ecause the, were designing a new wor( area with com/letel, different o/erating rules from the rest of the sho/. This new s,stem allowed direct la+or em/lo,ees to ma(e the same rate of /a, the, made under the old s,stem, +ut onl, after the, attained a s/ecified le0el of s(ill. The, esta+lished one Do+ classification and called it Hfactor, technician.I -or the lean /roDect team, selecting the focused factor, manager as soon as /ossi+le was (e, to successfull, im/lementing the new structure. The original launch for the snowmo+ile /roduct grou/ had +een struggling. It was decided that a leader assigned to manage the entire manufacturing /rocess would accelerate the im/lementation immensel,. This /ro0ed to +e 65@
a+solutel, correct. In addition to the organiGational change for the focused factor, manager, the team had to address union issues surrounding the new /a, scenario. Management e"/lained to the union leadershi/ how the new /a, s,stem was to wor( and then /ut the new /osition out for +id with a 0er, /ositi0e res/onse. Fnce the leader was assigned and the /a, s,stem installed, the area was off and running. After o/erating with the new lean /rocesses for se0eral wee(s, the /erformance of the focused factor, and the team +uilding among direct la+or cell team mem+ers had im/ro0ed significantl,. The o/erators were concentrating 0er, hard on eliminating Afor the first timeB their /ast8due orders and fi"ing qualit, issues as the, surfaced. In an effort to accommodate crosstraining needs, the cell team set u/ a game /lan for integrating cross8training the first two wee(s of the month and focusing on /roduction the last two wee(s of the month. )or(ing in this manner allowed the cell team time to de0elo/ its /eo/le and still satisf, customer demand requirements. The lean team was a+le to rather quic(l, re/osition the focused factor, conce/t from a struggling im/lementation to a high8fl,ing success +, le0eraging three elements@ A5B focusing the im/lementation effort around a /roduct grou/ing, A1B satisf,ing the needs of the em/lo,ee through the /a, s,stem and training /lan, and A3B assigning accounta+ilit, for the /rocesses that /roduced a gi0en /roduct in order to im/ro0e /erformance and achie0e +ottom8line results.
ProBect "ime 'ine
Milestone Plan
?F?? >DF?? >>F?? >CF?? D>FDD ProDect is launched Area is cleared and /re/ared Assem+l, is mo0ed and /roduction is sta+le om/onent manufacturing is relocated and /roduction read, Snowmo+ile focused factor, is functioning as a unit Case St"&y C+ (igh6'ol"!e6%oc"se& %actory ProIect
656
"ec$ni%ues -tili!ed
Program and /roDect management harter, milestone /lan, haGards, issue log, /rotocol, /roDect organiGation, /roDect file, ris( assessment, detail schedule, deli0era+les, control mechanisms -ocused factor, manager@ assessment and selection andidate self8e0aluation, change rece/ti0it, /rofile, $el+in roles, grou/ inter0iew, ga/ anal,sis, de0elo/ment /lan Lean manufacturing A-i0e Primar, .lementsB Fne8/iece flow, standard wor(, wor(a+le wor(, /ercent loading chart, forward /lan, cross8training, runner, re/eater, stranger, ta(t time, Kan+an, A$ material management, 9S house(ee/ing, /ull scheduling, 0isual control, roles and res/onsi+ilities, o/erating rules, sho/floor metrics, ser0ice cell agreements, mi"8model manufacturing, P/P anal,sis, /roduct8focused management, continuous im/ro0ement, routing anal,sis Lean manufacturing AKaiGen e0entsB Fne8/iece flow, ta(t time, /ercent loading chart, Kan+ans, material /ull, 9S house(ee/ing, 0isual controls, /ro+lem +oards, sho/floor metrics, /rocess ma//ing, SM.*, TPM, Po(a8,o(e Lean manufacturing
A48da,B Eido(a, autonomation, Andon, 0isual controls, Dust8in8time, ta(t time, continuous flow, /ull s,stems, standard wor(, wor( element anal,sis, 9S house(ee/ing, muda, /rocess ma//ing, Kan+an, HeiDun(a, Po(a8,o(e, TPM, F.., +ig si" losses, Do+ instruction training, cross8training
659
? UtiliGation of a full8time Hlean teamI is necessar, in order to esta+lish /riorities and consolidate efforts in the same direction. ? Assigning ownershi/ for /rocess im/ro0ement along /roduct grou/ings remo0es the functional silo 0iew of /ro+lems and assigns accounta+ilit, for /erformance im/ro0ement to one /erson. This organiGational change has a significant influence on how quic(l, /roDect o+Decti0es are achie0ed. ? Agreeing on e"/ectations earl, in the /roDect is necessar, so that all /arties (now what the, are tr,ing to achie0e and what success loo(s li(e when the, get there. ? Knowing which lean tools and techniques to use when and how /la,s an influential role in /roducing +ottom8line result quic(l,. ? S/reading /art8time resources across man, initiati0es leads to misalignment of /riorities and the ina+ilit, to com/lete all assigned acti0ities. It /laces undue +urdens on the organiGation and ma(es it difficult to com/lete an, acti0ities well. ? Assigning the com/an, controller to the steering committee can ha0e a tremendous +enefit when it comes time to de0elo/ metrics for a /roDect and when it is time to Dustif, the focused factor, conce/t to others in the organiGation. ? It is +est to assess and select the focused factor, manager as earl, in the /rocess as /ossi+le, definitel, +efore im/lementation. ? Indi0idual incenti0es /roduce localiGed o/timiGation, which does not su//ort the lean manufacturing conce/t. The remo0al of an indi0idual incenti0e8+ased /a, s,stem is a mustJ howe0er, it needs to +e done with the com/lete (nowledge and understanding of the union, /articularl, in light of how it is going to affect an indi0idualMs /a,.
Metric Baseline Act"al <D>FDD= Target
*eli0er, 42S ;2S 522S Lead8time > wee(s 3 wee(s 1 wee(s In0entor, turns 9 32 92 S/ace :492 ft
1
=>22 ft
C Head count 15 5: 54
65; ? $e sure to de0elo/ and follow a game /lan when changing the wor( rules and reward s,stem of em/lo,ees. Thin( through how to get from /oint A to /oint $. It is not enough to ha0e a good solution to a /ro+lem. That solution must +e e"ecuta+le.
"estimonials
HI ha0e +een im/ressed with the fundamental culture change that has ta(en /lace with the im/lementation of lean in the focused factor,. )e ha0e a long8standing histor, of detailed Do+ descri/tions wor(ing in an incenti0e8/a, structure. The formulation of the factor, technician /osition, which includes res/onsi+ilit, for all equi/ment and /rocesses along with /roducing to customer demand, has allowed us to ma(e this culture change with a high le0el of acce/tance from the wor( force.I A%actory Manager HThe wa, the snowmo+ile and +loc( chain factor, is set u/ is a good idea. The /arts are closer together and ,ou can catch the +ad /arts faster. .0er,one hel/s each otherJ that is a /lus. The +ig /ro+lem so far has +een the heat8treat o/erationMs turnaround time on our /arts.I ATechnician HI li(e what I see with the new snowmo+ile cell factor,. )hat a great wa, to do the right thing in +uilding chain. It will reall, wor(. I enDo, wor(ing this wa,. )e should ha0e done this a long time ago.I ATechnician HLean manufacturing is a good idea. 7reat things ha0e resulted since the +eginning of the focused factor,. Training needs to +e em/hasiGed more. )ith the e"/erience that we ha0e in the area, /eo/le should recei0e the +est training /ossi+le.I ATechnician HLean is a great conce/t with /otential in qualit, and /roducti0it,. It +rings new challenges to the wor(force. Fur onl, /ro+lem is our heattreat turnaround time.I ATechnician H-rom the initial conce/t of creating the focused factor,, we (new it was going to +e a long Dourne,. There ha0e +een man, challenges along the wa, and there will +e man, more. F0ercoming those challenges ma(es for a stronger team en0ironment and wor( force. Im/lementation of lean manufacturing ta(es dedication. 'ou must eat, +reath, and slee/ lean. If ,ou donMt, ,ou are not tr,ing hard enough. Success is ,our onl, o/tion.I A%actory Manager 654
6=
&ase Study 3:
Aai!en E(ent2Based :ocused :actory Pilot

&ompany Profile
ocated in the western su+ur+s of *en0er, $el8!on is a manufacturer of engineered chain /roducts. $el8!on +egan o/erations at this facilit, in 5;41, and the, em/lo, 325 /eo/le, of which 155 are mem+ers of the local machinist union 5=:3. The facilit, is s/read across 3:2,222 square feet and organiGed around the /roduction of its two main /roduct lines C con0e,or idlers and ma(e8to8order chain. A//ro"imatel, one quarter of the /lant has +een dedicated to the manufacture of idler /roducts, with the remaining three quarters laid out in a traditional factor, flow for the /roduction of ma(e8to8order chain. The /rimar, manufacturing /rocesses within this facilit, include /unching, grinding, forming, heat8treating, welding, /ainting, and the manual assem+l, of chain. $el8!on had +een a+le to increase annual sales re0enue for the com+ined /roduct lines to as high as \=3 million +ac( in 5;;9. The, commanded a significant amount of a0aila+le mar(et share, in /art +ecause the, /roduced He0er,thing for an,+od,.I Futside com/etition had ne0er reall, +een a se0ere /ro+lemJ therefore, $el8!on had alwa,s +een a source of /ositi0e cash flow for the /arent cor/oration. $ecause the com/an, was +eing utiliGed as a Hcash cow,I in0estment in the +usiness for maintaining and u/grading ca/ital equi/ment had +een limited. .fforts to con0ince se0eral different owners that
'
65=
an in0estment in ca/ital was required to sustain the o/eration and hel/ it achie0e /articular +usiness o+Decti0es for the future were limited. F0er the ,ears se0eral niche /la,ers +egan to enter the mar(et/lace and si/hon off s/ecific mar(et sectors, +ut this was not considered a maDor /ro+lem +ecause the com/an, was still generating significant cash flow for the +usiness and still had /lent, of mar(et share remaining. It was not until the entire industr, as a whole +egan to fall off that significant /ro+lems +egan to surface.
3ri(ers for &$ange

$ecause $el8!on was all things to all /eo/le, the o/eration managed all /roducts in e"actl, the same wa,. This, in turn, meant that the maDorit, of their /roducts had 0er, long lead8times com/ared to mar(et/lace requirements. It also meant that management s/ent a significant amount of time e"/editing all /roducts through the facilit, in order to satisf, s/ecific customer deli0er, dates Awhich were +eing missedB. It resulted in high unit costs that were squeeGing /rofita+ilit, li(e ne0er +efore. In addition, $el8!on was +eginning to recei0e less than fa0ora+le feed+ac( from customers through su//lier Hscore cardsI and e0en encountered un/leasant customer site 0isits. .0en though $el8!on had sta+le sales re0enues at the time, it was +ecoming increasingl, o+0ious that that situation was not going to last unless something changed. The con0e,er idler o/eration was facing hea0, com/etition from multi/le sources. The, were a small /la,er in the mar(et/lace and were tr,ing to com/ete on /rice and lead8time. A0aila+ilit, and s/eed
to mar(et were the com/etiti0e criteria that customers required, and the com/an, was struggling to consistentl, satisf, this demand. In order for $el8 !on to regain mar(et share, the, needed to reduce lead8time on standard /roducts to fi0e da,s or less and maintain on8time deli0er, relia+ilit, of ;9S or +etter. In addition to these mar(et forces for change, there were internal forces as well. In late 5;;>, $el8!on was acquired +, a new /arent com/an,. )hen the e"ecuti0e management of the new /arent com/an, came to 0isit, the, found an organiGation that was o/erating with 5;92s /roduction ca/a+ilit,, sho/floor la,out, management structure, and organiGational culture, as well as a traditional manufacturing /hiloso/h,. The, saw equi/ment that was not maintained, manufacturing /rocesses that were laid out +, functional de/artment, multi/le la,ers of management re/orting, direct la+or /iece8wor( incenti0es Aremem+er, this was a union sho/B, and undisci/lined house(ee/ing /ractices.
655 It was clear that this o/eration needed to im/lement a significant change in its +usiness /ractices to +e com/etiti0e and satisf, new le0els of o/erational /erformance. )ith +oth mar(et share and internal issues as the /rimar, dri0ers for change, this organiGation (new it would ha0e to ado/t a different a//roach to manufacturing in order to +ecome a com/etiti0e entit,.
ProBect Background
In the s/ring of 5;;;, the new /arent com/an, +egan to roll out a strategic /rogram focused on the de/lo,ment of lean manufacturing within the cor/oration. The /rogram was to +e rolled out through a series or Hwa0eI of KaiGen e0ents and 48da, lean classes. The lean classes were to +e utiliGed as reinforcement for the (nowledge transfer of lean tools and techniques utiliGed during the KaiGen e0ent. As the em/lo,ees +ecame more confident in their use of the tools, the, would schedule other KaiGen e0ents and stri0e for further continuous im/ro0ement and waste elimination within the facilit,. In A/ril 5;;;, $el8!on hosted their first KaiGen e0ent. Attendees from se0eral other sister facilities were in0ited to /artici/ate and learn how to im/lement the lean /rogram. $el8!on had identified four indi0idual KaiGen /roDects Aorder administration, setu/, cell manufacturing, and assem+l, flowB for the e0ent. All of these /roDects were selected with the idler /roduct line in mind. This /roduct had se0eral o/erational issues relati0e to +oth manufacturing lead8times and e"cess in0entor,. It was felt that +, coordinating se0eral /roDects along the same /roduct line s,nergies would de0elo/ +etween the KaiGen /roDects, and this would ha0e the greatest im/act on the idler +ottom8line /erformance.
ProBect Scope and
1Becti(e
In March 5;;;, the /resident of $el8!on had as(ed his management team to select four /roDects for the u/coming KaiGen e0ent. The team loo(ed at their o0erall +usiness, anal,Ged the /roduct demand 0olumes for each of the /roduct grou/s, and re0iewed the o/erational /erformance of the two /rimar, /roduct lines, con0e,er idlers and engineered chain. The team selected the idlers +ecause@ 5. The, re/resented \52 million of sales Anearl, 59S of all re0enuesB. 1. Production of the idlers was alread, self8contained, with all the manufacturing /rocess on one side of the +uilding. 65>
3. There was significant o//ortunit, to im/ro0e /erformance with limited ris(. 4. The engineered chain /roduct line in0ol0ed a greater num+er of /art num+ers, a significant mi" 0ariet,, and common resources and equi/ment, and most of the fa+rication equi/ment was not surfacemounted Ameaning that redesign or rearrangement would require digging and /ouring new concreteB. In addition, most of the utilities were laid in the concrete flooring. The /roDect sco/e im/acted con0e,er idler /roduction from incoming raw material to shi//ing. The manufacturing /rocesses included forming, welding, assem+l,, and /ainting. The /roDect o+Decti0es included@ 5. !educe in0entor, le0els from \112( to \5>2( A12SB. 1. Achie0e on8time deli0er, /erformance of ;9S or +etter. 3. !educe manufacturing lead8time to 9 da,s or less. 4. !educe changeo0er times +, 92S. 9. Im/ro0e s/ace utiliGation. =. Im/ro0e res/onsi0eness through fle"i+ilit,.
ProBect Approac$
$efore the KaiGen e0ent was scheduled, /artici/ants from sister com/anies were in0ited to attend the wee(8long KaiGen e0ent. The o+Decti0es were twofold@ A5B introduce the /artici/ants to the KaiGen a//roach, and A1B ha0e the /artici/ants +ring an outsiderMs /ers/ecti0e to $el8!on. The teams were staffed with mem+ers that re/resented multi8functional +ac(grounds and included sho/ su/er0isors, o/erators, union stewards, engineers, managers, etc. $, using cross8functional teams, the statement, HThatMs the wa, we ha0e alwa,s done things,I could more easil, +e challenged. The KaiGen e0ent was (ic(ed off on the first da, with a full da, of training and education. This training consisted of a mi"ture of lecture, e"ercises, discussion, and simulations. The content addressed the o0erall KaiGen /rocess, the schedule for the wee(, and the introduction to se0eral lean tools and techniques Ae.g., one8/iece flow, Kan+an, SM.*, TPM, loading charts, /rocess ma//ing, Po(a8,o(eB. The o/erational /rocesses for /roducing and deli0ering the con0e,er idler /roduct line were di0ided among four teams. Fn the second da,, each team had to clarif, its sco/e and o+Decti0es, ma/ the current /rocess, and gather
65? +aseline o/erational /erformance data. Fnce the, had collected all the data and s/ent time anal,Ging the current /rocess, the, were facilitated through a +rainstorming e"ercise +, the team leader in order to de0elo/ o/tional solutions to satisf, the agreed u/on o+Decti0es. Fnce the new design was agreed u/on, it was turned o0er to maintenance and s(illed craft to +egin relocating +ins, rac(s, and equi/ment. $, the end of the third da,, the cell area had had enough equi/ment rearranged to demonstrate the flow of the new /rocess and recogniGe significant gains in the area of manufacturing lead8time and in0entor, reduction. F+0iousl,, the in0entor, was still there, +ut the, had designed a new manufacturing flow that would not require the e"cess wor( in /rocess that was currentl, a0aila+le. -inall,, the teams generated a 328da, Hto doI list to manage the remaining outstanding acti0ities Ae.g., ordering weld curtains, +leeding off in0entor,, running utilit, linesB. $etween Ma, 5;;; and March 1222, $el8!on scheduled a series of followu/
KaiGen e0ents in such areas as SM.*, 9S house(ee/ing, and Kan+an to sustain the gains and (ee/ /rogress mo0ing forward. These mini8KaiGen /roDects were used to continuall, reinforce the /rinci/les of lean and demonstrate to the wor(force that $el8!on was serious a+out utiliGing this a//roach to im/ro0e the +usiness. Se0eral of the first SM.* KaiGen /roDect ideas came from the original 48 da, KaiGen e0ent. The 328da, Hto doI list /ro0ided some initial insight as to what equi/ment and /rocesses needed to +e addressed. Teams for the later SM.* KaiGen /roDects were staffed with a cross8functional re/resentation of em/lo,ees from across the /lant. Most of the teams were staffed with the manufacturing manager, equi/ment o/erators, /roduction engineer, tooling engineer, and a manufacturing re/resentati0e from the engineered chain /roduct line. F0er the course of the ne"t 52 months, the, conducted se0en SM.* KaiGens Aa0eraging a+out one e0er, = wee(sB. The, addressed welding fi"tures, shears, shaft /roduction, roll cutoffs, angle shear o/erations, die consolidation, and the de0elo/ment of a die8e"change s,stem. These efforts significantl, contri+uted to the reduction of lead8time and increased fle"i+ilit, within the idler /roduction area. As the idler team +ecame more confident in their KaiGen a//roach, its lean effort +ecame much more of a self8/er/etuating situation. !ather than formall, scheduling a set num+er of KaiGens /er month or quarter, management let the team decide when, where, and how man, the, were going to conduct. )hen the first mini8KaiGen e0ent was initiated, the team was s(e/tical as to whether this initiati0e was going to lastJ howe0er, after the e0ent was finished and the, saw how much was accom/lished and how management 6>@
was actuall, listening and reacting to their recommendations, the grou/ was energiGed. $etween Eul, 5;;; and March 1222, the idler o/eration conducted no less than nine mini8KaiGen e0ents Ain addition to the SM.* KaiGensB. These mini8e0ents focused /rimaril, on@ 5. 9S house(ee/ing Ato throw out unnecessar, items and identif, required itemsB 1. -reeing u/ floor s/ace Ato im/ro0e the flow of material, allow /ointof8 use deli0er, for :9S of raw materials, and im/ro0e the a+ilit, to /erform line8of8site managementB 3. ross8training Ato increase res/onsi0eness and fle"i+ilit, within the unitB 4. Limiting and controlling in0entor, Ato esta+lish same8da, deli0er, /erformance on the to/ si" high80olume /roducts and reduce leadtime through the manufacturing area +, remo0ing e"cess wor( in /rocessB These8mini e0ents hel/ed to sha/e the focus and direct the energies of the idler team toward constant continuous im/ro0ement. The team went +e,ond Dust factor, rearrangement and flow. In Fcto+er 5;;;, the team recei0ed a//ro0al to address the flow of material and im/lemented a Kan+an re/lenishment s,stem. The, started to im/lement the s,stem at the /oint of su//l, for raw materials. The team anal,Ged the raw material and com/onents /arts flow, determined demand +eha0ior for usage, and identified 0endors of the material. In *ecem+er 5;;;, the teams selected four 0endors with whom to de0elo/ o/erating rules and /ilot the im/lementation of Kan+an for 14 /arts. The, de0elo/ed a 0isual Kan+an /rocess that
utiliGed a Hfa"+anI as the re/lenishment signal +etween the su//lier and the customer. The a//roach wor(ed out so well that +, March 1222 the, had si" different 0endors on Kan+an for 33 indi0idual /arts. In the same month, the, were a+le to turn on a Kan+an re/lenishment s,stem for a s/ecified le0el of finished goods, there+, allowing them to +uild to the demand of a finished Kan+an signal. FrganiGationall,, changes were made within the idler /roduct line that were /recursors to the esta+lishment of the focused factor, conce/t. Initiall,, $el8!on was de/lo,ing lean tools and techniques on the sho/ floor through KaiGen e0ents. In order to esta+lish ownershi/ for the effort and maintain continuit,, it made sense to assign someone to manage the o0erall /roDect, /articularl, now that all the manufacturing /rocesses were collected together in a cell. This manager had ownershi/ for the /eo/le, re/orted on
6>6 /erformance, and facilitated the lean acti0ities. $el8!on used this e"/erience and the associated lessons learned from this /ilot focused factor, as the model for other focused factories that were designed and im/lemented throughout other areas of the facilit, during the +alance of calendar ,ear 1222.

Milestone Plan
KaiGen e0ent is initiated -irst SM.* KaiGen is conducted Mini8KaiGens are launched Kan+an s,stem is a//ro0ed Kan+an s,stem is functional
$orksho) Training To)ics A&&resse& EF?? KF?? @F?? >DF?? DHFDD
Fne8da, SM.* KaiGen Process ma//ing, 0ideota/e, internal 0s. e"ternal setu/, one8touch methodolog,, /arallel functions A/it crewB Lean manufacturing AKaiGen e0entB Fne8/iece flow, ta(t time, /ercent loading chart, Kan+ans, material /ull, 9S house(ee/ing, 0isual controls, /ro+lem +oards, sho/floor metrics, /rocess ma//ing, SM.*, TPM, Po(a8,o(e Lean manufacturing A48da,B Eido(a, autonomation, Andon, 0isual controls, Dust8in8time, ta(t time, continuous flow, /ull s,stems, standard wor(, wor( element anal,sis, 9S house(ee/ing, muda, /rocess ma//ing, Kan+an, HeiDun(a, Po(a8,o(e, TPM, F.., +ig si" losses, Do+ instruction training, cross8training
6>9

? Assign ownershi/ for /rocess im/ro0ement along an entire /roduct famil,. This remo0es the functional silo 0iew of /ro+lems and assigns accounta+ilit, for /erformance im/ro0ement to one /erson and his or her team. This organiGational change will significantl, im/act how quic(l, /roDect o+Decti0es are achie0ed. ? Understand the o0erall +usiness /lan and where resources ha0e /re0iousl, +een allocated +efore launching a lean manufacturing effort. onflicts in +usiness /riorities and confusion a+out o/erational focus will arise if this issue is not addressed. ? MinimiGe e"/osure, mitigate ris(, and o+tain results to hel/ re0eal cause8and8effect relationshi/s +, utiliGing /ilots and a//l,ing the lessons learned. ? Identif, the cell leader as earl, in the /rocess as /ossi+le to ha0e time to assign ownershi/ for the new manufacturing /rocess. ? Machine o/erators are often the /rocess e"/erts and a great source of ideas for setu/ reduction /roDects. ? Ha0e a dedicated team A/roDectB leader for the transformation to lean manufacturing. The +alance of the /roDect team should +e dedicated at least =2S of the time. ? Address the issue of cultural change. ommunicating the Hneed for changeI is /aramount to achie0ing su//ort for the new wa, of doing +usiness. ? -ollow through on all /lanned commitments and demonstrate results Ae0en those that were less than successfulB. This +uilds trust throughout the organiGation and su//orts the Hwal( the tal(I mentalit,.
Metric Baseline Act"al <DHFDD= Target
Fn8time deli0er, >9S ;9S ;9S Manufacturing lead8time =W53 da,s 3W= da,s 9 da,s or less In0entor, le0el Araw materialsB \112( \542( \5>2( Setu/ reduction >> minutes 12 minutes 44 minutes S/ace utiliGation 4;,=22 ft
1 1 1
4>,;22 ft 4>,222 ft
6>;
"estimonials
HKaiGen wor(ed out well. )e wor(ed together, had good results, and reduced setu/ time. )e need to continue this effort to get more done.I ASho)*loor 2)erator
HI was 0er, enthusiastic in the +eginning and saw some of m, ideas im/lemented, +ut then it sto//ed and I +ecame discouraged. Small quantities are hard to get used to.I ASho)*loor 2)erator HIt is necessar, to ha0e all /arties on the same /age Amanagement, su/er0ision, o/erators, etc.B, and it is 0er, im/ortant that the decisions of the team can +e im/lemented, without significant management inter0ention.I APro&"ction Planner 6>4
6=
&ase Study E: Assem1ly Production -nit ProBect
&ompany Profile
ust outside the cit, limits of downtown Houston is a /roducer of industrial a//lication +earing /roducts called A7 $earing. A7 $earing +egan o/erations in 5;9; and has o/erated as a union facilit, with a total em/lo,ee head count of 992, of which 419 are mem+ers of the local 55=2. The facilit, occu/ies 922,222 square feet, including administrati0e offices. The o/eration has followed a traditional manufacturing la,out, with indi0idual de/artments segregated +, /roduction /rocess with su/er0ision assigned accordingl,. The /rimar, manufacturing /rocesses ha0e included /ainting, grinding, turning, heat8treating, and manual and automated assem+l, of +earings. F0er the course of the last 9 ,ears, A7 $earing had +een a+le to consistentl, sustain to/ line re0enue in the range of \;2 to \522 million /er ,ear. The com/an, has +een 0er, /rofita+le and successful at deli0ering on customer needsJ howe0er, unit /ricing /ressures, ca/acit, constraints on some assem+l, lines, lac( of manufacturing fle"i+ilit,, and e"cessi0e in0entor, le0els ha0e made it difficult for A7 $earing to im/ro0e the o0erall /erformance of its o/eration.
6>=
3ri(ers for &$ange
Fne of the issues surrounding the im/lementation of change at A7 $earing, was the fact that the, were ma(ing good /rofits. Their margins were 0er, good for their industr,, their re0enue line was sta+le, and the, had +een a+le to satisf, /roduct a0aila+ilit, requirements of customers through the utiliGation of a national distri+ution warehouse s,stem. In addition, as mentioned earlier, this was a union sho/ that had not e"/erienced a great deal of change in recent histor,. Under the e"isting contract, union mem+ershi/ was a+le to ma(e
good mone, through indi0idual /iece8rate incenti0e and were not reall, interested in altering that course. This +usiness scenario /resented a 0er, difficult situation in which to initiate a change /rogram. )hen an organiGation is not in /ain and has +een ma(ing good mone, for se0eral ,ears, it is difficult to see a need to change how the +usiness is run. Although the need for change was not 0isi+le financiall,, it was e0ident o/erationall,, and for A7 $earing the need for change came from se0eral sources. The initial or /rimar, dri0er came from the new /arent com/an, that now owned A7 $earing. The /arent com/an, had +egun to launch an im/ro0ement initiati0e across all of its facilities and was e"/ecting all of its com/anies to /artici/ate. The second dri0er came from the /resident of A7 $earing who recogniGed that man, of the issues that were not 0isi+le at the to/ line were nonetheless e"tremel, 0isi+le at the +ottom line Ae.g., constant o0ertime, e"/edited deli0eries, significant management inter0ention, e"cess in0entor,B. All these issues were 0isi+le at the sho/ floor and 0er, familiar to those who ran the o/erations side of the +usiness. In addition to these internal forces, when re/resentati0es of the new /arent com/an,Ms e"ecuti0e management came to 0isit, the, made se0eral comments a+out this facilit, utiliGing the /rinci/les of lean manufacturing to im/ro0e the o/eration. These sources of change were the /rimar, dri0ers +ehind wh, A7 $earing launched a lean manufacturing initiati0e within their organiGation.
ProBect Background
The lean manufacturing effort for A7 $earing officiall, (ic(ed off in Se/tem+er 5;;;. The /lant manager and his staff identified four indi0idual /roDects to +e im/ro0ed during a one8wee( KaiGen e0ent. The /roDects co0ered a wide range of to/ics AKan+an, setu/ reduction, cellular manufacturing, and /roduct flowB. These /roDects were selected +ecause of the +usiness need to +uild confidence throughout the organiGation with the use of the KaiGen
6>5 /rocess and to quic(l, /roduce se0eral successful im/ro0ements. $aseline /erformance target sheets were created for each of the indi0idual /roDects and demonstrated im/ro0ements were recorded on the sheets. .ach of these /roDects did achie0e some le0el of success and /ro0ided a (ic(8start for the lean /rogram. F0er the ne"t se0eral months, more KaiGen e0ents were scheduled for s/ecific to/ics such as SM.*, TPM, etc., and /roDect teams were launched across the factor, to focus on these s/ecific /roDects. $, &o0em+er 5;;;, it was +ecoming o+0ious that after three months of effort on the lean /roDect, not much was changing on the +ottom line. Man, good things were ha//ening. Peo/le were fi"ing equi/ment, changeo0er times on machines were coming down, and the manufacturing areas were loo(ing more organiGed, +ut an, im/act on the +ottom line was difficult to demonstrate and this was +ecoming a source of frustration to all em/lo,ees in0ol0ed with the lean initiati0es. In an effort to /ro0ide focus and demonstrate a +ottom8line im/act, it was determined that an effort should +e launched directl, aimed at the +earing assem+l, o/eration. A significant o//ortunit, for im/ro0ement resided in assem+l,, and it was the manufacturing /rocess closest to the customer. Puoted lead8times to customers were in the neigh+orhood of 3 wee(s, and wor(8in8/rocess in0entor, le0els +etween assem+l, and fa+rication were \:.9 million in Dust com/onent /arts. A team was selected and dedicated to this lean /roDect for the /ur/ose of esta+lishing what is called, for all intents and /ur/oses, an assem+l, /roduction
unit. An assem+l, /roduction unit is an organiGation design +ased around cells. Fwnershi/ for /roduct /erformance is assigned to cells for the customers the, ser0eJ howe0er, ownershi/ is not Hcradle to gra0eI li(e that of a focused factor,. A focused factor, has ownershi/ from raw materials to finished goods. An assem+l, /roduction unit onl, has ownershi/ +ac( to a wor(8in8/rocess stores location for com/onent /arts. Unli(e de/artments, which are usuall, organiGed for s/ecific /rocesses, a /roduction unit has total res/onsi+ilit,, accounta+ilit,, and authorit, A!AAB for the /roducts from wor(8in8/rocess stores to the final customer. The teamMs o0erall mission was to im/lement as man, lean /rinci/les in assem+l, as required to +ring a+out a +ottom8line change in o/erational /erformance.
ProBect Scope and
1Becti(e
In &o0em+er 5;;;, A7 $earing mo+iliGed this full8time lean team to design, de0elo/, train, and im/lement a lean manufacturing en0ironment in assem+l,. 6>>
This team was staffed with three em/lo,ees, all of whom concentrated their collecti0e energies on the lean initiati0e. To gi0e the /roDect some structure and a logical sequence for im/lementation, and to generate a /ositi0e im/ro0ement as soon as /ossi+le, the, identified the ."cel $earing /roduct famil, as the first assem+l, area on which to focus their efforts. The ."cel $earing /roduct line had +een +rought into the A7 $earing facilit, in Eul, 5;;; after the /lant closure of a sister /lant. The ."cel $earing /art num+ers, tooling, and qualit, requirements were all unfamiliar to the A7 $earing em/lo,ees. The manufacturing /rocess documentation was limitedJ therefore, the training of new o/erators was difficult. In addition, ."cel $earingMs /roduct had +een set u/ to +e assem+led in a +atch8and8queue mode, not a one8/iece flow cellJ therefore, it was not sur/rising that the ."cel $earing assem+l, lines in the A7 $earing facilit, were not /roducing at the le0el of out/ut required to satisf, customer demand. *emonstrated out/ut was a+out 3922 +earings /er da, across the four assem+l, lines on two shifts. The required out/ut was 9222 +earings /er da,, and that was not +eing met e0en with o0ertime on Saturda, and Sunda,. The o+Decti0e was to de0elo/ and de/lo, a lean manufacturing en0ironment that was a+le to satisf, a customer demand le0el of :222 units /er da, o0er a 98da, wor( wee( without o0ertime.
ProBect Approac$
In the middle of &o0em+er, the lean team recei0ed training on change management /rinci/les, team mo+iliGation a//roaches, and /roDect management fundamentals. It was recogniGed earl, on that the team mem+ers had limited e"/erience with managing /roDects. It was also a//arent to the team that an organiGation that did not recogniGe a need for change was not going to +e eas, to changeJ therefore, the team o/ted to follow the structured /roDect management a//roach outlined in their training. The team de0elo/ed an agreed8u/on charter and milestone /lan outlining their /roDectMs sco/e and o+Decti0es. The team limited the /roDect sco/e to Dust ."cel $earing assem+l,, and their o+Decti0es were to achie0e one8/iece flow manufacturing on the +earing assem+l, lines with im/ro0ed through/ut, /roducti0it,, reduced qualit, /ro+lems, and reduced in0entor, le0els. $etween the initial launch of the /roDect in &o0em+er 5;;; and -e+ruar, 1222, the lean team had a difficult time getting started and showed signs of significant frustration. A formal re0iew of the /roDectMs /rogress unco0ered the following issues@
6>? 5. $, conducting a $el+in role assessment on the team mem+ers, it was learned that none of the team mem+ers had a strong im/lementer role /reference, which is crucial for a lean manufacturing /roDect. It was determined that the /roDect leader /referred the role of Hs/ecialist,I which led to difficult, focusing se0eral of the team mem+ers. 1. The /roDect team was e"/eriencing difficult, getting launched in a direction and then sta,ing the course. There was a significant amount of confusion as to who was to do what and what direction the /roDect was su//osed to +e ta(ing. 3. The /roDect was +eing controlled in an informal manner, without regular re/orting and formal status re0iews with the /roDect team. 4. The lean manufacturing /roDect for assem+l, was launched with a /roDect owner who was not a+le to dri0e the /roDect. !egular re/orting of /rogress was not requested, and the owner was not reall, engaged in monitoring the /roDectMs /rogress. 9. The lean team had +een e"/eriencing difficult, in getting the sho/floor o/erators to consistentl, wor( with the lean a//roach. )hen the lean team was out on the sho/ floor, the areas could /erform e"actl, as designed. )hen the team was a+sent, /erformance fell off. It was determined that +u,8in and ownershi/ for the new lean manufacturing design and wa,s of doing +usiness had not reall, ta(en /lace for those who actuall, owned the /rocess, namel, the sho/floor /ersonnel and their su/er0isors. =. There was a lac( of definition as to who had what role and res/onsi+ilit, for the design, de0elo/ment, and su+sequent im/lementation of the lean /roDect. This was one of the /rimar, reasons a lac( of coo/eration e"isted +etween the lean team and the sho/floor management, who were the targets for the change. :. It was difficult to tell when a cell was actuall, im/lemented. The criteria for success or targeted le0els of /erformance were not clear, not communicated, and not trac(ed. >. It was disco0ered +, the lean team that much of the tooling and some of the equi/ment +eing utiliGed +, the o/erators were not ca/a+le of /roducing a good8qualit, /roductJ therefore, the /roDect was set +ac( a few wee(s to identif, and correct the sus/ect tooling. ;. The a0erage num+er of ,ears of A7 $earing wor( e"/erience for frontline su/er0ision was 13 ,ears. Man, of these front8line managers had ne0er wor(ed outside the e"isting /lant and therefore were not aware of an, other wa,s to conduct +usiness. 6?@
After some length, discussion +etween the /roDect team and the steering committee, the following course of action was decided u/on@ 5. The /roDect sco/e should +e e"/anded to co0er the end8state 0ision for assem+l, and the remaining /roduct lines in assem+l,. The initial im/lementation effort should remain focused on ."cel $earing, +ut an end8state conce/t should +e de0elo/ed for the assem+l, /roduction unit. In addition, a ,ear 1222 game /lan for achie0ing the conce/t needed to +e generated. This schedule was to ha0e assigned actions with dates and a descri/tion of deli0era+les. 1. A new /roDect owner was to +e assigned who had a greater 0ested interest in the successful outcome for the /roDect and would dri0e it
to com/letion. 3. The /oor8condition tooling would +e identified and scheduled for reconditioning in a timel, manner. 4. The lean team was to engage the sho/ foreman A/rocess ownerB in the design efforts so that the new /rocess would ha0e +u,8in and the handoff during im/lementation would +e seamless. The lean team was to +e /hased out of the ."cel $earing assem+l, area when the sho/ too( charge of de/lo,ment. Fnl, after all e"it criteria had +een satisfied could the lean team disengage com/letel,. 9. The lean team was to de0elo/ a formal /roDect management /rotocol for controlling the /roDect +, esta+lishing a war room, meeting on a regular +asis, conducting /roDect status re0iew meetings, and re/orting on /erformance metrics regularl,. =. To engage the entire em/lo,ee wor(force, /articularl, the front8line su/er0isors, an o0erall lean /roDect announcement was to +e deli0ered to the entire em/lo,ee /o/ulation. :. The lean team was to conduct a formal KaiGen e0ent to officiall, (ic( off the de/lo,ment of the ."cel $earing assem+l, lines and /h,sicall, mo0e to the sho/ floor during the im/lementation to show su//ort for the im/lementation issues. *uring the month of March 1222, these changes in course for the /roDect were incor/orated and the results were tremendous. The new /roDect leader +egan enforcing disci/line with regard to the new lean /rocesses, and im/ro0ed le0els of /erformance were +eing sustained in the ."cel $earing assem+l, cells. Metrics were re0iewed in the war room and u/dated on a wee(l, +asis. The /roDect team met on a +i8monthl, +asis to re0iew /roDect
6?6 status with the steering committee and on a dail, +asis with the /roDect owner during the im/lementation of an assem+l, cell KaiGen e0ent. In addition to the shorter term initiati0es, the lean team de0elo/ed an end8state 0ision for assem+l, and /roduced a game /lan that im/lemented all /roduct lines in the assem+l, /roduction unit +, the ,ear 1225. These assem+l, cell designs were +ased on the same /rinci/les as those of the ."cel $earing assem+l, cells in order to +uild on the lessons learned and e"/erience gained with the /ilot im/lementation.
ProBect "ime 'ine

Milestone Plan
CFDD HFDD EFDD JFDD
Lean team is mo+iliGed 'ear 1222 im/lementation /lan is a//ro0ed ."cel $earing cells three and four are sta+le ."cel $earing cells one and two are sta+le
6?9
"ec$ni%ues -tili!ed
Program and /roDect management
harter, milestone /lan, haGards, issue log, /rotocol, /roDect organiGation, /roDect file, ris( assessment, detail schedule, deli0era+les, control mechanisms hange management ommunications /lanning, reaction to change, resistors Team mo+iliGation $el+in roles, conflict management, decision ma(ing Lean manufacturing A-i0e Primar, .lementsB Fne8/iece flow, standard wor(, wor(a+le wor(, /ercent loading chart, forward /lan, cross8training, runner, re/eater, stranger, ta(t time, Kan+an, A$ material management, 9S house(ee/ing, /ull scheduling, 0isual control, roles and res/onsi+ilities, o/erating rules, sho/floor metrics, ser0ice cell agreements, mi"8model manufacturing, P/P anal,sis, /roduct8focused management, continuous im/ro0ement, routing anal,sis Lean manufacturing AKaiGen e0entB Fne8/iece flow, ta(t time, /ercent loading chart, Kan+ans, material /ull, 9S house(ee/ing, 0isual controls, /ro+lem +oards, sho/floor metrics, /rocess ma//ing, SM.*, TPM, Po(a8,o(e Lean manufacturing A48da,B Eido(a, autonomation, Andon, 0isual controls, Dust8in8time, ta(t time, continuous flow, /ull s,stems, standard wor(, wor( element anal,sis, 9S house(ee/ing, muda, /rocess ma//ing, Kan+an, HeiDun(a, Po(a8,o(e, TPM, F.., +ig si" losses, Do+ instruction training, cross8training
6?;

? Assign true full8time team mem+ers, not a roster of team mem+ers who still ha0e other res/onsi+ilities. This is critical to sustaining a common focus. ? larif, roles with all /roDect /artici/ants so that all /arties agree to what the, are tr,ing to achie0e, who is to do what, and what success loo(s li(e when the, get there. ? .sta+lish a regular, formal /roDect re0iew /rocess earl, in the /roDect to control the /roDect and (ee/ it on schedule. )hen haGards or sli/s in the schedule arise, the, must +e escalated according to the /rotocol and addressed immediatel,. ? Process owners Athose who own the /rocess +eing changedB must +e
engaged in the /roDect and commit to the new wa, of doing +usiness +efore im/lementation. ? The /roDect owner must +e engaged in the /roDect and has to /ro0ide the leadershi/ and dri0e for the /roDect to +e successful. ? The roles and res/onsi+ilities of e0er,one in0ol0ed in the /roDect must +e defined, understood, agreed u/on, and documented. ? learl, define e"/ectation and /erformance targets at the +eginning of the /roDect. It is im/erati0e that all /arties in0ol0ed are of one mind as to what a successful /roDect loo(s li(e and how it is to +e achie0ed. ? The utiliGation of $el+in team roles can /ro0ide significant insight into the a//ro/riate structure and /otential wea(nesses of the team ma(eu/.
Metric Baseline Act"al <DEFDD= Target
Parts /er manhour =.4 >.9 51.2 Production out/ut 93S :5S 522S *ail, scheduled hours == 4; 42 *efects /er million =:9> 1=4= :22 Fn8time deli0er, 99S >>S ;9S
6?<
"estimonials
HI +elie0e changes will ha//en. )e can get some things done.I ASho) Manager H)e ha0e to (ee/ one8/iece flow for qualit,.I APlant Manage!ent HIt is im/ortant to ha0e all areas of the /lant wor(ing toward a common +ottom8line goal 0s. indi0idual initiati0es.I A ngineering Manager H)e disco0er /ro+lems more quic(l,. Production scheduling is easier. Pualit, is +etter due to the mo0e toward one8/iece flow. )hen we ma(e a mista(e, onl, a few /arts are affected and the /ro+lem is usuall, caught right awa,. Fne8/iece flow also +rea(s u/ the monoton, of +atch wor( C I used to +e an assem+ler in the +atch en0ironment. The Kan+an ensures that we ha0e our /arts a0aila+le when needed. At ."cel, we had a cri+ attendant that would deli0er our /arts. )e were alwa,s waiting on /arts.I ALine Lea&er HThe Kan+an ma(es it eas, for me to get /arts. The quic(8change tooling is a good idea. I do not ha0e to loo( for Allen wrenches an,more. La+eled tooling at the /ress sa0es me time C I donMt ha0e to search for tooling that is la+eled. I want to do a good Do+ e0er, da,, +ut I get frustrated when /ro+lems arise. TIt is difficult to do four8/iece flow on a line e0en if we ha0e Dust one /ro+lem T it forces us +ac( in a +atch mode.I A2)erator 6?4
6=
&ase Study :: +ig$2*olume and 'o,2*olume &ell ProBect
&ompany Profile
ithin a =28mile dri0e of Los Angeles is a /roducer of /recision +earing /roducts called Monitor $earing. Monitor $earing +egan o/erations at this site in 5;:4. The, ha0e functioned as a nonunion facilit,, with a//ro"imatel, 1;2 em/lo,ees on the /a,roll. The o/eration co0ers 122,222 square feet and has followed a more traditional factor, la,out. The (e, manufacturing /rocesses are cold8forming, screw machining, grinding su/er8finishing, and automated and manual assem+l,. In 5;;:, Monitor $earingMs sales /ea(ed at \34 million of to/8line re0enue. The /rimar, mar(ets the com/an, ser0es are hea0,8dut, truc(, construction, and industrial. The +alance of their ser0ice /roducts ha0e +een handled through a cor/orate distri+ution warehouse s,stem. Historicall,, the com/an, has +een successful at deli0ering to customer needsJ howe0er, e0er8increasing /ricing /ressures, ca/acit, constraints, more stringent /roduct a0aila+ilit, requirements, and customer change orders ha0e +een ma(ing it difficult for Monitor $earing to continue o/erating in the same manner as the, had in the /ast. .fforts had recentl, +een made to de/lo, continuous im/ro0ement initiati0es within the facilit,, +ut these met with limited success. .0en though some in0estment in ca/ital had +een made and the com/an, achie0ed some
)
6?=
+enefit, from a traditional cost8sa0ings /ers/ecti0e, the, had ,et to realiGe an, +enefit from the in0estment in a lean manufacturing initiati0e.
3ri(ers for &$ange

Fne of Monitor $earingMs maDor customers /urchased se0eral high80olume +earings for its truc( transmission manufacturing o/eration. -or as long as the, had +een in +usiness together, this customer had /laced orders with Monitor $earing in a 0er, lum/, demand /attern +ut alwa,s with 518 to 5=8wee( firm schedules. )ithin a relati0el, short time /eriod, though, the F.M customer switched from a traditional firm fi"ed schedule to a demand for /arts +ased on a scheduled final assem+l, sequence. This, in turn, caused schedules to change dramaticall, from 51 to 5= wee(s firm fi"ed to > da,s firm with changes and the fle"i+ilit, necessar, to accommodate wee(l, adDustments, which were at times quite significant. Their demand /attern characteristicall, had large quantities at the +eginning of the month and then little at the end of the month. These dramatic changes in demand
+eha0ior /atterns created ha0oc on the /roduction floor, not to mention the fact that it was a more costl, wa, in which to conduct +usiness. Soon after the schedule changes, the customer +egan /ressuring the com/an, a+out its unit costs and /roduct a0aila+ilit,. In addition to this e"ternal force for change, there was an internal force as well. A new /arent com/an, was launching a strategic im/ro0ement initiati0e aimed at reducing costl, waste AHmudaIB throughout all of its facilities and was e"/ecting all of its com/anies to /artici/ate. The com+ination of these two dri0ers, one internal and one e"ternal, is what dro0e Monitor $earing to em+ar( on a new a//roach to manufacturing.
ProBect Background
Monitor $earing had a 0ariet, of /roduct8demand 0olumes for its 0arious /roduct lines. Some of the /roducts demonstrated a 0er, high demand 0olume Ae.g., 3222 units /er da,B, and some a 0er, low demand 0olume Ae.g., 1222 units /er ,earB. To de0elo/ some momentum for their im/ro0ement initiati0e and to arrest the deterioration of the relationshi/ with one of their /rimar, customers, Monitor $earing decided their highest 0olume /roduct line should +e the first area attac(ed. This would gi0e them a chance to
6?5 channel their energies on one s/ecific /roduct famil, and de/lo, the lean techniques rather quic(l,. .0en though the, realiGed demonstrated +enefits from a//l,ing lean manufacturing techniques to the high80olume /roducts, the, recogniGed that this focus on high80olume /roduct lines onl, im/acted a+out 32S of salesJ therefore, the, needed to in0estigate other o//ortunities as well. This meant ste//ing +ac( and loo(ing at the demand /atterns of all their enditem /roducts and segregating them +, some common factor A0olume, mar(et, customer, material, etc.B. In doing so, the com/an, concluded that, for their manufacturing en0ironment, the most a//ro/riate choice would +e to sort the /roducts +, /roduct siGe first and then +, 0olume, which was de/endent on equi/ment ca/a+ilities. $, doing so, the, were a+le to di0ide their entire end8item assem+l, area into four maDor /roduct families@ A5B high80olume +earings, A1B medium8 to low80olume +earings, A3B larger siGe +earings, and A4B low80olume ser0ice. The high80olume +earings encom/assed nine end8item +earingsJ the medium8 to low80olume +earings, =: end8item +earingsJ the large siGe +earings, o0er 422 0arious end8item +earingsJ and the low80olume ser0ice, in e"cess of 922 end items. This segregation of /roduct +eha0iors allowed the com/an, to design and manage the flow of material through assem+l, according to the demand +eha0ior its the /roducts.
ProBect Scope and
1Becti(e
Initiall,, the o0erall /roDect sco/e and o+Decti0es for the lean im/ro0ement initiati0e at Monitor $earing were /rett, much undefined. The com/an, (new that the, had to achie0e im/ro0ed /erformance and that the, had to engage themsel0es with the /arent com/an,Ms strategic effort to eliminate waste. It was Dust a matter of understanding the tools and ha0ing the organiGation required to ma(e the change. Monitor $earing (new the, were e"/eriencing difficult, with one s/ecific customer and that the lean tools and techniques the, were learning a+out would +e a//lica+le to an, of the high80olume cells. So, in an effort to esta+lish a course and set a direction for the com/an,, Monitor $earingMs general manager formulated a target o+Decti0e in Ma, for three of the identified
high80olume cells@ HIn0entor, turns of 51 are to +e achie0ed +, each of these cells +, the end of the ,ear ]*ecem+er 5;;;^. After the end of the ,ear, we will determine a /lan of action for the +alance of the /roducts.I 6?>
ProBect Approac$
Monitor $earing officiall, (ic(ed off their efforts in Eune 5;;;, with four KaiGen e0ent /roDects Aorder entr,, su//lier Kan+an, cellular manufacturing, and /roduct flowB. These /roDects were selected +ecause the, centered around a need to streamline the flow time from customer order to shi/ment for high80olume +earing /roducts that were currentl, in /roduction. Monitor $earing was facing significant cost reduction and on8time deli0er, /ressures from its /rimar, customer and needed to demonstrate im/ro0ement quic(l,. *uring the course of the e0ent, each of these /roDects did achie0e 0ar,ing le0els of success and /ro0ided the (ic(8start necessar, for the lean im/ro0ement initiati0e at Monitor $earing. The high80olume +earing cell was a+le to achie0e a significant im/ro0ement in out/ut from +etween 5122 and 5922 units /er da, to the 1222 /er da, that were required. The, achie0ed this +, anal,Ging the flow of material, understanding the wor( content, and +alancing the wor( +etween stations. In addition, +, im/lementing small +atch flow and Kan+an /ull, the, were a+le to not onl, im/ro0e in0entor, turns from 9.3 to 51.3 +ut also arrest a nagging qualit, /ro+lem that was causing them to lose around \9222 /er month in the form of scra//ed /arts. As the following months /assed, more KaiGen e0ents were scheduled and im/ro0ement teams launched across the factor,. A tremendous amount of acti0it, ensued around /lant8wide 0isual communication of conce/ts, team accom/lishments, 9S house(ee/ing, equi/ment clean8u/, and im/lementation of Kan+an re/lenishment for man, of the /urchased and manufactured /arts in +oth assem+l, and fa+rication. Some /lant8wide efforts were initiated relati0e to single8minute e"change of dies ASM.*B, which focuses on reducing changeo0er time, and total /roducti0e maintenance ATPMB, which focuses on the reduction of un/lanned downtime on equi/ment. $, Se/tem+er 5;;;, it was +ecoming e0ident that the ne"t areas of im/ro0ement within the facilit, were going to +e more com/le" and that the KaiGen /roDects a//roach of Hislands of acti0it,I used so far was not going to address some of the more su+stantial +usiness issues necessar, for success. So, Monitor $earing announced the de/lo,ment of a full8time lean team to focus on the design, de0elo/ment, and de/lo,ment of an o0erall lean en0ironment for the com/an,. This team was staffed with half a doGen em/lo,ees who concentrated their collecti0e energies on lean manufacturing acti0ities. As the lean team +ecame more /roficient with the lean tools and techniques, it was time to +egin ma(ing /lans to address the ne"t areas of o//ortunit, within the +usiness, namel, the lower 0olume and higher mi" /roduct families.
6?? In Eanuar, 1222, the lean steering committee held a formal re0iew to assess the /rogress on the lean im/ro0ement initiati0es to date and to /lot a course for the ne"t ,earMs acti0it,. The organiGation had made great strides in the area of in0entor, reduction, in0entor, turns, and scra/ reduction with their high80olume cells during the /re0ious ,ear, and the, had increased their out/ut ca/a+ilit, +, 19S. The amount of customer orders running +ehind schedule had +een reduced to 0irtuall, nothing. Howe0er, among all
these significant achie0ements, it was recogniGed that there were still a few outstanding issues that should +e addressed +, the lean team +efore tac(ling the lower 0olume /roduct lines. After length, discussion +etween the lean team and the steering committee, the following course of action was agreed u/on@ 5. Loc( down, +utton u/, and institutionaliGe the changes made to this /oint. Se0eral (e, changes had +een made to the o/eration, +ut the, had +een neither well documented nor com/letel, understood +, all the /eo/le in0ol0ed with the change. 1. *efine what a com/leted cell loo(s li(e. There were 0ar,ing o/inions as to when a cell im/lementation was com/lete, there+, lea0ing some to feel it was time to mo0e on while others felt there was more to do. This definition of a cell would lead to the esta+lishment of an He"it criteriaI for the cell, or quantitati0e and qualitati0e elements necessar, for the cell to +e im/lemented. 3. .sta+lish an im/lementation a//roach that would de/lo, the identified /rinci/les of a cell in stages, the conce/t here +eing to incor/orate the foundation /rinci/les of the cell in stage one and then come +ac( at a later date to im/lement the /rinci/les necessar, to +ring a+out a new le0el of o/erational /erformance in stage two. 4. Assign a factor, manager to manage the high80olume /roducts of the cell. Su/er0isors were assigned across de/artments, which made it difficult to define ownershi/ for /roduct /erformance and there+, generate continuous im/ro0ement. 9. *etermine a time line for de/lo,ing the a+o0e8mentioned actions and de0elo/ a game /lan for designing and im/lementing the lower 0olume/higher mi" cells. In -e+ruar, 1222, the lean team concentrated on documenting the new /rocesses in the high80olume cells, esta+lishing a common definition for a successfull, im/lemented cell, and determining the e"it criteria required for a cell to +e considered sta+le. The steering committee too( on the action 9@@
item to wor( with management on selecting the a//ro/riate /eo/le to +e cell leaders for the new lean en0ironment. Fnce these identified /rinci/les were im/lemented and in /lace for a+out 4 to 9 wee(s, the cells +egan to e"hi+it new le0els of /erformance, which /a0ed the wa, for /lanning the low8 to medium80olume cell. The team addressed this cell differentl, than the high80olume cells, which had@ 5. A limited quantit, of end8item /art num+ers to deal with 1. The same manufacturing /rocesses in0ol0ed with each /roduct 3. A 0er, consistent o/erational time from /art to /art at each station 4. A relati0el, consistent customer8demand /attern from month to month 9. A limited quantit, of high80olume com/onents to Kan+an In contrast, the low8 to medium80olume /roducts had@ 5. =: different end8item /art num+ers 1. *ifferent manufacturing /rocesses and equi/ment, de/ending u/on the end8item configuration and /art siGe 3. F/erational times that were relati0el, consistent from /art to /art at each station, +ut required setu/ times at each station ranging an,where from 32 minutes to 4 hours for changeo0er +etween /roduct lines 4. A /roduct8demand +eha0ior that 0aried from 5122 /er da, to 9 /er da,, with an order frequenc, /attern from e0er, wee( to once /er
quarter 9. A wide range of com/onent /arts with 0ar,ing quantities de/ending on the end8item mi", with some of the com/onent /arts +eing used in multi/le end items =. A significantl, greater num+er of machines and assem+l, com/le"it, The lean team followed a structured methodolog, for cell design which ca/tured detailed data a+out the e"isting low8 to medium80olume /roduct famil,. Using this methodolog, allowed them to@ 5. alculate demand quantities /er da, in order to esta+lish runner, re/eater, and stranger /roduct +eha0iors for low8 to medium80olume /roducts. 1. .sta+lish material and wor( flow /atterns +, ma//ing the /rocess and identif,ing 0olume /ercentages +etween stations.
9@6 3. #erif, if an, of the e"isting /roduct routings had +ac(trac(ing or a re0erse flow of material. 4. a/ture wor( content times to understand 0ariations +etween /roducts and +etween wor( stations that were designated for the cell. 9. 7enerate wor( loads on equi/ment to see what and how man, machines were needed for the cell. =. *etermine ta(t time for each of the /roducts and in total for the cell. $, re0iewing the demand /attern, the, could calculate a designed dail, /roduction rate to accommodate 0ariation for runner and re/eater /roducts. :. Understand how much of an im/act e"isting setu/ times would ha0e on scheduling the mi" of /roducts. >. *esign an a//ro/riate hard8signal Kan+an re/lenishment s,stem to allow for the right raw materials/com/onents +eing a0aila+le in the right quantities at the right location. The final design /roduced the following results@ 5. .qui/ment was com/rised of 12 grinders and three assem+l, methods. 1. !oles and res/onsi+ilities o0er the entire o/eration Afrom wor(8in/rocess stores to grinding, +oring, final assem+l,, /ac(aging, and shi/mentB were defined and clarified. 3. !unner /roducts were dedicated to a /articular set of equi/ment and +uilt to a dail, rate. 4. !e/eater /roducts were shared across common equi/ment and +uilt on demand to a re/lenishment Kan+an from shi//ing. The /riorit, for Kan+an orders was first8in/first8out A-I-FB. a/acit, was allocated +ased in the designed dail, /roduction rate. 9. &ew equi/ment was assigned to /ro0ide for 12S growth in this segment to accommodate for ser0ice and lead8time reduction o+Decti0es. =. Stranger /roduct orders were +undled o0er a 18wee( /eriod of time and scheduled to run twice a month across all a0aila+le equi/ment in the cell. $ecause these /roducts were not sold +ased on lead8time or unit /rice, the, did not require the immediate turnaround of the runner and re/eater /roducts. 9@9

Milestone Plan
KF?? @F?? >DF?? >>F?? D>FDD DEFDD
High0olume cell KaiGen e0ent is initiated om/letion of 328da, to8do list Lean team is launched Third high0olume cell is o/erational Low8 to medium0olume /roDect is launched Low8 to medium0olume cell design is com/lete $orksho) Training To)ics A&&resse&
Lean manufacturing A-i0e Primar, .lementsB Fne8/iece flow, standard wor(, wor(a+le wor(, /ercent loading chart, forward /lan, crosstraining, runner, re/eater, stranger, ta(t time, Kan+an, A$ material management, 9S house(ee/ing, /ull scheduling, 0isual control, roles and res/onsi+ilities, o/erating rules, sho/floor metrics, ser0ice cell agreements, mi"model manufacturing, P/P anal,sis, /roductfocused management, continuous im/ro0ement, routing anal,sis Lean manufacturing AKaiGen e0entB Fne8/iece flow, ta(t time, /ercent loading chart, Kan+ans, material /ull, 9S house(ee/ing, 0isual controls, /ro+lem +oards, sho/floor metrics, /rocess ma//ing, SM.*, TPM, Po(a8,o(e Lean manufacturing A48da,B Eido(a, autonomation, Andon, 0isual controls, Dust8in8time, ta(t time, continuous flow, /ull s,stems, standard wor(, wor( element anal,sis, 9S house(ee/ing, muda, /rocess ma//ing, Kan+ans, HeiDun(a, Po(a8,o(e, TPM, F.., +ig si" losses, Do+ instruction training, cross8training ell design P/P anal,sis, /rocess ma//ing, routing anal,sis, ta(t calculation, wor(load +alancing, Kan+an siGing, standard wor(, one8/iece flow
9@;

? .sta+lish a full8time /roDect team to dedicate the resources necessar, to focus on and /ro0ide su//ort for the integration requirements
necessar, with an initiati0e that is managing multi/le as/ects of lean. ? larif, e"/ectations earl, in the /roDect so that all /arties (now what the, are tr,ing to achie0e and what success loo(s li(e when the, get there. ? !ecogniGe that different /roduct +eha0iors dri0e different manufacturing architectures, a fact that affects equi/ment la,outs, scheduling, /lanning and control methodologies, the num+er of /arts to Kan+an, Kan+an quantities, the focus for continuous im/ro0ement, etc. Matching the /roduct8demand +eha0ior with the a//ro/riate manufacturing architecture allows for the most effecti0e /erformance of /roducts to the customer.
Metric Baseline Act"al <>CFDD= Target
+ig$2*olume N6 In0entor, dollars \4>4,222 \14>,222 \422,222 In0entor, turns 9.9 51.3 51 Fn8time deli0er, 42S >2S ;2S Scra/ /ercent 3.:S 5.9S 1.2S +ig$2*olume N9 In0entor, dollars \42:,222 \122,222 \392,222 In0entor, turns ;.9 12 51 Fn8time deli0er, 33S >>S ;2S Scra/ /ercent 3.:S 5.1S 1.2S +ig$2*olume N; In0entor, dollars \339,222 \5222 \122,222 In0entor, turns 4.1 >.9 51 Fn8time deli0er, 33S =9S ;2S Scra/ /ercent 2.>S 2.:S 5.2S
9@<
? Select cell leaders who ha0e res/onsi+ilit,, accounta+ilit,, and authorit, A!AAB for the im/lementation and ownershi/ for /erformance of the cells after de/lo,ment. ? .sta+lish an effecti0e TPM /rogram for a focused factor,/cell, critical when manufacturing equi/ment is in0ol0ed. ? Kee/ designs for one8/iece or small8+atch flow cells sim/le for 0isual and conce/tual understanding. ? In0ol0e su//liers and manufacturing equi/ment su//liers in the design of Kan+an and TPM /rograms to increase commitment to the /rocess changes. ? Kee/ all shifts in a multi8shift en0ironment in0ol0ed, or gains will +e su+o/timal.
"estimonials
HLean manufacturing is a /owerful tool, not onl, for achie0ing /erformance gains unheard of in traditional s,stems, +ut also for gi0ing em/lo,ees tools that im/ro0e morale, the team en0ironment, and a sense of accom/lishment.I ALean Steering Co!!ittee H*o not underestimate the /ower of communicating lean accom/lishments
to ,our customer T it tells them ,ou are controlling ,our costs and dis/la,s ,our commitment to organiGational e"cellence.I AGeneral Manager HIt ta(es more than techniques to dri0e this (ind of changeJ it ta(es leadershi/.I A%actory Manager
G' SSARY
9@5
Glossary
ABC !aterial han&ling. The segregation of material +ased on re/lenishment lead8time, 0alue, and /art com/le"it,. This is done to align /lanning and control a//roaches with certain t,/es of /arts for +est utiliGation of resources. &ot all /arts are created equal. A"tono!ation. Fffers the a+ilit, to se/arate man and machine, +ecause such equi/ment has the ca/a+ilit, to automaticall, shut down when it detects a defect or a+normalit,. The machine sta,s shut down until a human +eing inter0enes, sol0es the /ro+lem, and starts the machine again. Back *l"shing. The deduction from in0entor, records of /arts consumed in an assem+l, when the item is either +oo(ed into finished goods or sold. Block layo"t. A high8le0el 0iew of the factor,, where square footage has +een allocated, or H+loc(ed,I for s/ecific areas. A general descri/tion of what will ha//en in the area is understood in order to assist with the de0elo/ment of material and information flow in the future design. Cell <)ro&"ct cell=. A clearl, focused entit, with the assigned resources necessar, for it to control its own o/erational /erformance and satisf, customer requirements for its gi0en /roducts. ell la,out. A gra/hical re/resentation of the equi/ment//rocesses in a cell, t,/icall, in a U8sha/e, with +oth the o/erator and material flow dis/la,ed. Cell lea&er. The indi0idual selected to lead the da,8to8da, acti0ities within a cell. It can +e either a direct or indirect la+or em/lo,ee, de/ending on the le0el of cell com/le"it,, t,/es of decisions to +e made, and ca/a+ilit, of the wor(force. 9@>
Cell tea! work )lan. A documented schedule AcalendarB of acti0ities for the wee( within a cell. It la,s out the game /lan and /ro0ides a common understanding for all cell mem+ers as to what e0ents should ta(e /lace each wee(. Cell workloa& analysis. An assessment of the effect of wor(load on equi/ment and /rocesses in the cell to assure ca/acit, to +uild future requirementsJ includes an anal,sis of the /roduct demand +eha0ior.
Co!!"nication )lan. A structured /rocess +, which communication is to ta(e /lace throughout the organiGation. It includes a definition and descri/tion as to what message will go to whom when and +, what method. Co!)le0 !i0 )ro&"ction sche&"ling. The same as HeiDen(a. The esta+lishment of a le0el demand /attern sequence +ased on the mi" of re/etiti0e orders from the customer. -or e"am/le, if demand was for 522 A units, 92 $ units, and 92 units, then the HeiDen(a /attern would +e A, $, A, , A, $, , $, T . Conce)t &esign. The first stage of the future state design /hase. once/t design esta+lishes the high8le0el 0iew of what the o/eration will loo( li(e when the lean /rogram is im/lemented. It /ro0ides the foundation for detail design. Contin"o"s i!)rove!ent tools. #er, sim/le tools that can +e utiliGed +, all em/lo,ees to identif, and eliminate waste in their /rocess Afi0e wh,s, histograms, cause8and8effect diagrams, frequenc, charts, Pareto diagrams, etc.B. C)5. An inde" measure of the ca/a+ilit, of a /rocess to consistentl, /roduce /arts. It com/ares the /rocess width Astandard de0iationB with the s/ecification width and location. Cross6training. .m/lo,ees in a /rocess +eing trained to /erform multi/le ste/s within the /rocess, /refera+l, all the ste/s. C"rrent state ga) )hase. The second /hase in the lean manufacturing /rogram, it is designed to ca/ture current o/erational /erformance, to lead to an understanding of the maDor o/erational /rocesses as the, are toda,, and to identif, root causes as to wh, /erformance is what it is. C"sto!erFs"))lier align!ent. *ocumenting and understanding all the customer and su//lier relationshi/s that e"ist for /art flow in the factor,. It in0ol0es identif,ing each /art and recording where it comes from and who it goes to in order to esta+lish clear customer/su//lier alignment.
Glossary
9@? Cycle ti!e <o)erational=. The time required to com/lete one full c,cle of an o/eration. An o/eration is a su+set of a /rocess. Cycle ti!e <)rocess=. The time required to com/lete one full c,cle of a /rocess, made u/ of se0eral o/erations. 1esign &aily )ro&"ction rate. The /roduction rate de0elo/ed in order to satisf, customer demand. It ta(es into account the customer forecast and 0ariations in that forecast. The cell is designed to /roduce at that rate for a gi0en time frame. 1etail &esign. The second stage of the future state design /hase. *etail design anal,Ges what each indi0idual cell requires for im/lementation during the KaiGen e0ents C items such as ta(t time, equi/ment, demand mi", /otential
la,out and staffing, routing anal,sis, etc. 1%MA <&esign *or !an"*act"ring an& asse!bly=. A /roduct de0elo/ment a//roach that in0ol0es multi/le functions concurrentl, throughout the de0elo/ment /rocess to ensure all requirements are ca/tured. It also focuses, through the use of good lean design /ractices, on designing a /roduct that is /roduction friendl, with a 0iew toward reducing recurring total costs. 0it criteria. Puantitati0e and qualitati0e measures that are 0isi+le and can clearl, show that success has +een achie0ed. ."am/les of quantitati0e goals would include ;>S on8time deli0er,, manufacturing lead8time of 1 da,s, /roducti0it, of >;S. ."am/les of qualitati0e goals would include ha0ing all A /arts on Kan+an, documentation of o/erating rules, 9S chec(lists, communication +oards, training matri", /osted metrics, etc. %inishe&6goo&s variation. A calculated le0el of finished goods +ased on demand 0ariation and ser0ice le0el required. This finished8goods in0entor, is usuall, used for /roducts utiliGing Kan+an re/lenishment with Gero customer tolerance on deli0er,. %ive Pri!ary le!ents. A design and im/lementation a//roach that re/resents fi0e /rimar, facets of lean manufacturing. An a//roach that asserts that all facets are required in order to su//ort and sustain a solid lean manufacturing /rogram. JS <ho"sekee)ing=. A structured, fi0e8ste/ a//roach to house(ee/ing that engages +oth management and em/lo,ees in the /rocess. It is a matter of sifting, sorting, swee/ing, standardiGing, and sustaining the wor( en0ironment. 96@
%le06*ence &e!an& !anage!ent. A /lanning and control technique where+, customer demand is released to the cells through a set of o/erating rules agreed u/on +, mar(eting and manufacturing. %M A <*ail"re !o&es an& e**ect analysis=. A technique where+, ris(s in the /rocess are anal,Ged for /otential failure +ased on their effect and the required function of an item. %"t"re state &esign )hase. The third /hase in the lean manufacturing /rogram, it is s/lit into two stages. The first is conce/t design, and the second is detail design. In addition, this /hase includes the im/lementation /lan, transition strateg,, and /lant communication for the /rogram rollout. Gra)hic work instr"ctions. A gra/hical re/resentation of wor( instructions including wor( sequence, wor( content, 0erification chec(s, and source ins/ections. (olistic !an"*act"ring. A 0iew that there is interconnecti0it, and de/endenc, among the -i0e Primar, .lements and that each element is critical and required for the successful de/lo,ment of a lean manufacturing /rogram. (oshin )lanning. A strategic decision8ma(ing tool that focuses com/an,
resources on a few Athree to fi0eB critical initiati0es within the +usiness and aligns these initiati0es from to/ to +ottom throughout the organiGation 0ia s/ecific goals, /roDect /lans, and /rogress re/orting. 8!)le!entation )lan. The schedule of e0ents for im/lementing the lean manufacturing /rogram. It includes a sequence of KaiGen e0ents, deli0era+les, !AA, duration, etc. 5ai3en event. A time8+o"ed set of acti0ities carried out +, the cell team during the wee( of a cell im/lementation. These acti0ities include training, /lanning, design solutions, de/lo,ment, documentation, demonstrating /erformance, etc. The KaiGen e0ent is the im/lementation arm of a lean manufacturing /rogram. 5anban. A demand signal from the customer, the authoriGation to +egin wor(. It controls the le0el of wor( in /rocess and lead8time for /roducts. It facilitates immediate feed+ac( on a+normalities. Lean assess!ent )hase. The first /hase in the lean manufacturing /rogram, it co0ers the initial assessment of the le0el of leanness of the +usiness. It gathers e"ternal information to esta+lish design criteria and determine mar(et o//ortunities.
Glossary
966 Lean !an"*act"ring a"&it. The result of re0iewing a cell im/lementation to /ro0ide feed+ac( through a standard scoring /rocess to indicate the le0el of de/lo,ment achie0ed. Lean roa& !a). The clarified statement, understood +, all those in0ol0ed, of the o0erall direction and ste/s or /hases required for a /articular lean manufacturing /rogram. Level loa&ing. *esigning a le0el load of demand for a gi0en cell in order to accommodate the mi" of /roducts required for that cell A+ased on /roduct 0olume and wor( contentB. Line sto). Authorit, gi0en to an o/erator to shut down the line and not /roduce an, more /roduct if a defect is found in the /rocess. Loa&ing chart. A chart used in conDunction with ta(t time to esta+lish wor(load +alance for the wor( content elements of a gi0en cell and its /roduct mi". Logistics ele!ent. The element that /ro0ides a definition for o/erating rules and the mechanisms for /lanning/controlling the flow of material. Lot si3e s)litting. *i0iding a lot into su+8lots to accommodate simultaneous /rocessing of an order. Make6to6or&er )ro&"ction. A /roduction architecture where /roducts are made after the recei/t of a customer sales order. Man"*act"ring *low ele!ent. The element that addresses /h,sical changes and
design standards to +e de/lo,ed as /art of the cell. Man"*act"ring lea&6ti!e. The ela/sed time +etween when an order is released for /roduction and the item is deli0ered into finished goods. Man"*act"ring strategy. A collecti0e (nowledge of the +usiness that contains current com/etiti0e ad0antages and wea(nesses, identifies mar(et o//ortunities, and includes the associated manufacturing o+Decti0es necessar, to align with these o//ortunities. Material )lanningFcontrol. The o/erating rules and s,stems su//ort used for /lanning and controlling the flow of material to, through, and from one cell to the another. Material )"ll <inter6cell=. A /ull s,stem for re/lenishing material within a cell. Material )"ll <intra6cell=. A /ull s,stem for re/lenishing material +etween cells. 969
Metrics ele!ent. The element that addresses 0isi+le results8+ased /erformance measures with targeted im/ro0ements and team rewards and recognition. Milestone )lan. A tool that identifies maDor segments of a /roDect, the time frame, sequence of maDor e0ents, and associated management de+riefs. Mi06!o&el !an"*act"ring. The a+ilit, to /roduce an, /roduct, an, quantit,, an, time in order to res/ond to customer demand on a dail, +asisJ designing a manufacturing cell that can /roduce an, mi" or 0olume of /roducts on an, gi0en da,. M"&a. Ea/anese word for waste, or non80alue8added. /on6re)etitive 5anban. A Kan+an that is used for one8off or low80olume /roducts. It is introduced into the manufacturing /rocess when there is a s/ecific demand for a /roduct. The signal is sent to the su//lier for a quantit, to fill the demand. After it has +een consumed, it is ta(en out of the re/lenishment c,cle until it is needed again. 2 <overall e-"i)!ent e**ectiveness=. A function of scheduled a0aila+ilit, equi/ment /roducti0it, /rocess ,ieldJ used to understand the effecti0eness of equi/ment. 2**6loa&ing. Sending wor( to an outside su//lier for a s/ecific o/eration or set of o/erations due to a short8term ca/acit, deficit. 2ne6level B2M. All com/onent /arts are at the same le0el in the +ill of material, with no su+8assem+lies, no Hgoes intoI relationshi/s, no leadtime offset, no structured $FM.
2ne6)iece *low. Producing one /art at a time at an o/eration and /assing it on to the ne"t o/eration after ha0ing recei0ed a demand signal. 2)erating r"les. &ew documented rules for o/erating the cell as designed AKan+an card s,stem, ca/acit, loading to ;2S, incoming/outgoing material handling, wor(a+le wor(, recording setu/ times, dail, equi/ment chec(s, line sto/, etc.B. 2)erational roles an& res)onsibilities. *ocumented e"/ectations for indi0idual /ositions descri+ing what the, are accounta+le to accom/lish, s/ecific duties to +e /erformed, to whom the, re/ort, +oundar, of res/onsi+ilit,, direct re/orts, etc. 2rgani3ation ele!ent. The element that focuses on the identification of /eo/leMs roles and functions, training in the new wa,s of wor(ing, and communication.
Glossary
96; Pareto. The conce/t that a small /ercentage of a grou/ has the most im/act. Poka6yoke. A mista(e8/roofing de0ice or /rocedure used to /re0ent defects from entering a wor( /rocess. Policy &e)loy!ent. See Hoshin /lanning. Process control ele!ent. The element that is focused on the monitoring, controlling, sta+iliGing, and /ursuit of wa,s to im/ro0e the /rocess. Process !atri0. The gra/hical re/resentation on a grid, with the manufacturing /rocess across the to/ and /art num+ers down the side. Part flow is drawn inside the grid and used to re0eal /atterns of commonalit,, resource consum/tion, and re0erse /art flow. Pro&"ct6&e!an& behavior analysis. The segregation of /roducts into one of three categories Arunner, re/eater, and strangerB +ased on their /roductdemand +eha0iors. Pro&"ct6*oc"se& !"lti&isci)line& tea!. A team of /eo/le re/resenting 0arious functions within the organiGation, all of whom are focused on im/ro0ing the end8/roduct /erformance of a gi0en set of /roducts, no matter how man, de/artmental lines those /roducts cross. Pro&"ct gro")ing. The segregating of end8/roduct demand items ASKUsB in grou/ings, +ased on defined criteria. Pro&"ctF-"antity assess!ent. The P/P anal,sis tool loo(s for natural +rea(s for /roduct grou/ings +, sorting the gathered data and determining a fit for /roduct cells +, their associated 0olumes and the /roduct alignment characteristics. ProIect charter. A tool that defines and clarifies managementMs e"/ectations in regard to the /ur/ose, o+Decti0es, and e"/ected outcome of a /roDect. This document must +e agreed to and signed off on +, all /arties +efore
a /roDect can +egin. RAA <res)onsibility, acco"ntability, a"thority=. Im/lies com/lete ownershi/ for a deli0era+le, or a /rocess, or a /erformance outcome. An indi0idual Aone /ersonB is answera+le for all as/ects of this assignment. This /erson ma, delegate tas(s +ut does not share the rose that has +een /inned to his or her la/el. Rate6base& sche&"le. Used to esta+lish the /roduction quantit, for rate8+ased /roducts in a gi0en cell. It is determined +, esta+lishing a dail, +uild quantit, from +oth forecasted and +oo(ed orders, which then +ecomes the wor( schedule for the cell. 96<
Re)eater. These /roducts ha0e significant 0ariet, and will usuall, +e /roduced across resources that are not dedicated to a s/ecific flow line. *ue to the lower 0olume amounts, 0aria+le order frequenc, and/or high 0aria+ilit, in o/erational routings, these /roduct8demand /atterns will ha0e to +e managed as mi"8model /roduct and will require more /roduction control su//ort than a runner t,/e of /roduct. Ro"ting analysis. The categoriGation of /roducts +ased on their /rocess flow, wor( content, and 0olume to determine the most effecti0e wa, to manage them in a cellular manufacturing en0ironment. R"nner. These /roducts are ordered in high 0olumes frequentl, from customers and ha0e relati0el, sta+le demand /atterns. The are often managed as rate8+ased /roducts and dedicated to s/ecific cells. Segregate& )ro&"ction sche&"ling. The grou/ing of /roducts around constraints Ae.g., changeo0erBJ for e"am/le, all A /roducts are scheduled to run on first shift, while $ and /roducts are run in sequence during the second shift due to a 18hour changeo0er time +etween mi"es. Service cell. In contrast to a /roduct cell, a ser0ice o/eration is focused on turnaround time and deli0er, relia+ilit, to the customer. Ser0ice cells do not ha0e !AA for /roducts +ut are held accounta+le for their /erformance to /roduct cells. S8P2C <s"))lier6in)"t6)rocess6o"t)"t6c"sto!er=. A /rocess8ma//ing methodolog, used to ca/ture a /rocess, its out/uts, and the associated in/uts that triggered the /rocess, in addition to identif,ing the customer of the out/ut and the su//lier of the in/ut. It also collects information a+out the /rocess, such as lead8time, 0olume, deli0er,, qualit, /erformance, etc. SM 1 <single6!in"te e0change o* &ies=. A structured im/ro0ement methodolog, for reducing changeo0er downtime on equi/ment to less than 52 minutes. SPC <statistical )rocess control=. The use of statistics and data gathering to monitor /rocess out/ut and to control the qualit, of the /rocess. Stan&ar& work. *ocumentation of the agreed8u/on, one +est wa, to /roduce
a /roduct. It ser0es as the communication, training, and /rocess im/ro0ement tool for the cell. It can include such information as c,cle time, ta(t time, designed le0el of wor( in /rocess, o/erator flow sequence, material flow sequence, staffing, etc. Stranger. These /roducts are the miscellaneous items that are +eing /roduced within the /lant as one8off items or ha0e a 0er, low80olume or infrequent
Glossary
964 Aonce /er ,earB demand /attern. These items are usuall, +est managed through M!P and can +e segregated from the rest of the factor,. Takt ti!e. The rh,thm or +eat of demand for the cell. It re/resents the rate of consum/tion +, the mar(et/lace and is +ased on the scheduled time a0aila+le for the cell di0ided +, the designed dail, /roduction rate for the cell. TPM <total )ro&"ctive !aintenance=. A structured a//roach to equi/ment maintenance in0ol0ing o/erators, maintenance /ersonnel, and management, all of whom ha0e s/ecific roles and res/onsi+ilities to eliminate un/lanned downtime on equi/ment. Transition strategy. Identification of s/ecific actions required to su//ort the im/lementation of lean manufacturing through KaiGen e0ents with minimal im/act on e"isting /roduction A+uild ahead, +leed off in0entor,, /re/ wor(, etc.B. Trans)ortation )i)eline 5anban. Used for A8t,/e /arts that are e"/ensi0e and com/le", with long lead8times. The method in0ol0es filling the /i/eline with constantl, flowing Kan+ans, each with a certain num+er of da,sM demand that results in a s/ecific num+er of Kan+ans in the s,stem. The Kan+ans are held and released from designated /oints in the su//l, chain so as to minimiGe the re/lenishment time to the ne"t customer. 'is"al control. The as/ects of lean manufacturing that su//ort line8of8sight management Ae.g., cell name signs, /ainted floors, mar(ed PFU areas, /erformance metricsB. 'ol"!e !atri0. A grid that has the manufacturing /rocess across the to/ and /art num+ers down the side. Part8num+er 0olume, in units and hours, is a//lied to the wor( content times Afrom the wor( content matri"B to segregate high8 and low80olume /roducts and determine the degree of 0ariation and im/act on the cell design. $ork content !atri0. A grid that has the manufacturing /rocess across the to/ and /art num+ers down the side. Part8num+er wor( content for manhours, machine time, and setu/ time are loaded to understand 0ariation from /art to /art and /rocess to /rocess. $orkable work. A /rocess to 0erif, the a0aila+ilit, of wor( elements identified as +eing necessar, for a Do+ to go into /roduction. $orkloa& balancing. Shifting the wor( content elements +etween o/erations in order to +alance the wor(load for the cell to ta(t time.
RE:ERE0&ES
96?
References
5. $elcher, Eohn 7., Er., Pro&"ctivity Pl"s 0 (ow To&ay7s Best R"n Co!)anies Are Gaining the Co!)etitive &ge , Houston, T<@ 7ulf Pu+lishing, 5;>:. 1. o(ins, 7ar,, Activity6Base& Cost Manage!ent+ Making 8t $ork A A Manager7s G"i&e to 8!)le!enting an& S"staining an **ective ABC Syste! , hicago, IL@ Irwin, 5;;=. 3. onner, *ar,l !., Managing at the S)ee& o* Change 0 (ow Resilient Managers S"ccee& an& Pros)er $here 2thers %ail , &ew 'or(@ #illard $oo(s, 5;;1. 4. o/acino, )illiam ., S"))ly Chain Manage!ent 0 The Basics an& Beyon& , $oca !aton, -L@ St. Lucie Press, 5;;:. 9. ostanGa, Eohn !., The 9"ant"! Lea) 0 8n S)ee& to Market , .nglewood, &E@ E8I8T Institute of Technolog,, 5;;9. =. 7unn, Thomas 7., Man"*act"ring *or Co!)etitive A&vantage 0 Beco!ing a $orl& Class Man"*act"rer , am+ridge, MA@ $allinger Pu+lishing, 5;>:. :. Ha,, .dward E., The :"st6in6Ti!e Breakthro"gh 0 8!)le!enting the /ew Man"*act"ring Basics , &ew 'or(@ )ile,, 5;>>. >. Ha,es, !o+ert H., )heelwright, Ste0en ., and lar(, Kim $., 1yna!ic Man"*act"ring 0 Creating the Learning 2rgani3ation , &ew 'or(@ -ree Press, 5;>>. ;. Henderson, $ruce A., and Larco, Eorge L., Lean Trans*or!ation
0 (ow To Change 4o"r B"siness into a Lean nter)rise , !ichmond, #A@ The Fa(lea Press, 5;;;. 52. Hill, Terr,, The ssence o* 2)erations Manage!ent , &ew 'or(@ Prentice8Hall, 5;;3. 55. Hunt, #. *aniel, Process Ma))ing 0 (ow To Reengineer 4o"r B"siness , &ew 'or(@ )ile,, 5;;=. 51. Imai, Masaa(i, Ge!ba 5ai3en 0 A Co!!onsense, Low6Cost A))roach to Manage!ent , &ew 'or(@ Mc7raw8Hill, 5;;:. 53. Ingersoll .ngineers, Making Man"*act"ring Cells $ork , *ear+orn, MI@ Societ, of Manufacturing .ngineers, 5;;1. 54. Mahone,, !. Michael, (igh6Mi0 Low6'ol"!e Man"*act"ring , .nglewood, &E@ Prentice8Hall, 5;;:. 59. Schon+erger, !ichard E., :a)anese Man"*act"ring Techni-"es 0 /ine (i&&en Lessons in Si!)licity. &ew 'or(@ -ree Press, 5;>1.
99@
5=. Schon+erger, !ichard E., $orl& Class Man"*act"ring 0 The Lessons o* Si!)licity A))lie&. &ew 'or(@ -ree Press, 5;>=. 5:. Schon+erger, !ichard E., $orl& Class Man"*act"ring+ The /e0t 1eca&e. &ew 'or(@ -ree Press, 5;;=. 5>. Shingo, Shigeo, A Revol"tion in Man"*act"ring+ The SM 1 Syste!. Portland@ Producti0it, Press, 5;>9. 5;. Shingo, Shigeo, A St"&y o* the Toyota Pro&"ction Syste! *ro! an 8n&"strial ngineering 'iew)oint , Portland@ Producti0it, Press, 5;>;. 12. Shingo, Shigeo, /on6Stock Pro&"ction 0 The Shingo Syste! *or Contin"o"s 8!)rove!ent , Portland@ Producti0it, Press, 5;>>. 15. Shingo, Shigeo, ;ero 9"ality Control+ So"rce 8ns)ection an& the Poka64oke Syste! , Portland@ Producti0it, Press, 5;>=.
11. Shingo, Shigeo, The Sayings o* Shigeo Shingo 0 5ey Strategies *or Plant 8!)rove!ent , Portland@ Producti0it, Press, 5;>:. 13. Shirose, Kunio, TPM %or $orksho) Lea&ers , Portland@ Producti0it, Press, 5;;1. 14. To+in, *aniel !., Re6 &"cating the Cor)oration 0 %o"n&ations *or the Learning 2rgani3ation , .sse" Eunction@ Fli0er )ight Pu+lications, 5;;3. 19. )omac(, Eames P., and Eones, *aniel T., Lean Thinking 0 Banish $aste an& Create $ealth in 4o"r Cor)oration , &ew 'or(@ Simon L Schuster, 5;;=. 1=. )omac(, Eames P., Eones, *aniel T., and !oos, *aniel, The Machine That Change& the $orl& , &ew 'or(@ Har/er ollins, 5;;2.
I03EO
99;
Index
A
A,$, material handling, 92W95, :9 assem+l, /roduction unit /roDect, 5>9W5;4 autonomation, :5
+aseline /erformance, 54> +atch8and8queue s,stem, :1, 59=, 5>> +enchmar(ing, > +ill of materials A$FMB, 5:, 95, 91 +loc( la,outs, 512, 515, 513, 54> $FM. See +ill of materials
&
ca/acit, control, 4; ca/acit, /lanning, 59= cells, 1: audit of, 52:, 534, 53: ca/a+ilit, of, 5: customer, 91 defining, 5;; design criteria for, 4>, =5, :3, 51:
design of, =>, :5, 53=, 122, 121 designed dail, /roduction rate, :2 fle"i+ilit,, and, 5>, 35 flow of wor( through, 4= high80olume, 5;9W124 la,out of, =5, :3W:4 leaders of, 1;, 5>1. See also leadershi/ de0elo/ment selection /rocess for, 32 logistics, and, 49 low80olume, 5;9W124 manufacturing, 54 material /ull within, 54, 94, 539, 5=2 measurement o+Decti0es, and, 41 num+er of, 54> /ilot, 5:, 54;, 5>1 /roduct alignment, and, 512 /roduction, 5: /roduct8mi" schedule for, 51: /ull s,stem among, 5= re0iewing /rogress of, ;5 sequence of wor( introduction, 4; ser0ice, 95 staffing of, 1> su//lier, 4= wor( /lans, 99 wor(load anal,sis, 53 wor(load of, 51= changeo0er time, >3, 5:>, 5>: changes institutionaliGing, ;5, 5=1, 5;; sustaining, ;5W;1, 59;, 5=1 commodit, /roduct, 59= 99<
communication, 54:, 595, 59;, 5>1 +oard, >>, 53> lin(s, 555 /lanning, 14W1=, 49, 51= questions to answer, 19W1= conce/t design, 512, 54> constraint scheduling, 4: continuous im/ro0ement, 1;, 35, 3>, 3;, :;, ;5, 5;9, 123 tools, 5= controller, steering committe and, 5:1 cost of goods sold A F7SB, 3> /K. See /rocess ca/a+ilit, cross8training, 5=, 5>2 matri", 31W33, ;5
culture, of com/an,, 13, 5>1 current state ga/, 55, 51, 552, 555W55> customer /romise date de0iation, 54= customer requested shi/ date, 54= customer/su//lier alignment, 91W93
data +aseline, 5:; collection, 529, 52> demand, => forecast, =1 o/erational /erformance, 529 /art num+er, := /erformance, 39, 559 /rocess flow, => sales, =1, 552 SKU demand, =1 demand +eha0ior assessment, 512 forecast, :2 /atterns of, 5;=, 5;:, 122 management, 5:, 512, 5=5 de/lo,ment, 535W53> design criteria, 512 design for manufacturing/assem+l, A*-MAB, 5: designed dail, /roduction rate, :2 desired state, 54> detailed design, 54> *-MA. See design for manufacturing/assem+l, direction, 59; dis/atch list, 4; *uPont model, 3=W3>
elements anal,sis, 554 em/lo,ees, and engagement in lean manufacturing, > em/owerment, =, 1:, 1> errors 0s. defects, >4 e"ecution, of im/lementation /lan, 54>, 54; e"it criteria, 512, 511, 53:, 53;, 5=;, 5;; e"/editing, 5:=, 5>=
failure mode and effects anal,sis A-M.AB, 5:, ;1 fear, 14 -I-F. See first8in/first8out first8in/first8out A-I-FB, 4:, 94, :1, 125
-i0e Primar, .lements, 3, 4W=, 52, 15W;1, 525, 529, 592, 5:5, 5;1, 121 9S house(ee/ing, >2, >9W>:, ;5, 539, 53:, 53;, 5:;, 5>2, 5;> fle"8fence demand management, 5: fle"i+ilit,, >2, 5:>, 5:; -M.A. See failure mode and effects anal,sis 42/=2 rule, =3 future state design, 55, 51W53, 552, 555, 55;W532, 54>
ga/ anal,sis, 529, 54> goal alignment, 3=, 42W41, 521 goals, common, 59;
Glossary
994
high80olume /roDect, 5=9W5:3 holistic, defined, 3 Hoshin /lanning, 42, 45 house(ee/ing. See 9S house(ee/ing
im/lementation logic, 512 im/lementation /lan, 51:, 51;, 54> incenti0e8+ased /a,, 5=>, 5=;, 5:1, 5:=, 5>= in/ut/out/ut control, 4; in0entor, turns, 3, 94, :=, ;;, 53;, 544, 54=, 59=, 5=:, 5:1, 5;>, 5;;, 123
Dust8in8time AEITB, 4>, 93W99, :=
KaiGen e0ents, 54, 5=, 5:, ;5, 55>, 51=, 535, 533, 53=, 599W5=3, 5==, 5=:, 5:5, 5>=, 5>:, 5;2, 5;5, 5;1, 5;> focused factor, /ilot, and, 5:9W5>3 sam/le agenda, 59> Kan+ans, 5:, 4=, 4:, 4>, 4;, 92, 95, 9>, =;, :5, :3, 513, 51>, 539, 53=, 53:, 53;, 54>, 5=2, 5==, 5=>, 5=;, 5:>, 5:;, 5>2, 5>=, 5;>, 122, 125, 123 demand signals, 93W99 identification requirements for, := siGing of, =5, :4W::
'
leadershi/, 59; leadershi/ de0elo/ment, 14, 1;W32 lead8time, :=, 54=, 5:1, 5:=, 5::, 5:>, 5:;, 5>1, 5>:, 125
minimiGing, :5 lean assessment, 52, 55, 529W552, 554, 533 lean enter/rise, 59: lean manufacturing a//roach, :W5; audit, 5= communication, 52, 54, 14W1=. See also communication /lanning engaging em/lo,ees in, > focus of, = holistic 0iew of, 3W=, =5, ;9 im/lementation methodolog,, 59 issue/element matri", 55: /rinci/les, 59 requirements /lanning, and, 4> road ma/, ;, 52, 5=5 self8assessment, 52=, 52: team, >W5;, 5>1. See also team techniques, 5=5 total /roducti0e maintenance ATPMB, and, >3. See also total /roducti0e maintenance unions, and, 35, 5=>, 5=;, 5:1, 5>= 0s. mass /roduction, : le0el loading, 99W9=, :2, 53: line8of8site management, >:, 5>2 loading charts, :1 localiGed o/timiGation, 3> logistics, 4, 9, 53, 49W9;, 525. See also -i0e Primar, .lements definition of, 49W4= losses, si" +ig, >3, >4
maintenance. See total /roducti0e maintenance ATPMB manufacturing deli0er,, 54= manufacturing flow, 4, 9, =5W::, 525, 5=2, 5:;. See also -i0e Primar, .lements manufacturing resource /lanning AM!P IIB, 4>, 92, 95, =3, =>, 59=, 5=; manufacturing strateg, outline, 55
mar(et segmentation, 52; 99=
master /roduction schedule, 59= material +ac(flushing, 5: material handling AA,$, B, 92W95 matri" cross8training, 31W33, ;5 decision, 512 issue/element, 55:, 533 o/tion selection, 515 /rocess, == 0olume, =>, =;, 51; wor( content, ==, =:, 51; measures, ;5 definition of, 3=, 41W43 o+Decti0es of, 41 out/ut8+ased, 3=, 3>W3; /erformance, >:W>>, 5=5, 5=1 /rocess8dri0en, 3=, 3; metrics, 4, 9, 39W43, 525, 5:1. See also -i0e Primar, .lements mista(e /roofing. See Po(a8,o(e mi"8model manufacturing, 5:, 9:W9> one8/iece flow, =5, :5W:3, 539, 53:, 53>, 5=>, 5:>, 124 cell, 0s. +atch and queue, 5>> on8time deli0er,, 5:=, 5:>, 5>1, 5;3, 5;>, 123 o/erational roles and res/onsi+ilities, 14, 32W31 o/erations redesign /rogram, 543W594 order /rocessing, 5: organiGation, 4, 9, 13W33, 4:, 525. See also -i0e Primar, .lements organiGation chart, 512 organiGation conce/t, 512, 515, 514, 519, 51: original equi/ment manufacturers AF.MsB, =1, ;=, 549, 59=, 5;= o0erall equi/ment effecti0eness AF..B, >4 ownershi/. See also /rocess owners realignment of, 1: results, 3=
Pareto diagram, 55:, 533 ParetoMs >2/12 rule, 92 /arts, sorting of, 91. See also A,$, material handling /erformance le0els, ;5, 522 /lanning ca/acit,, 4; ca/acit, control, 4; in8+ound, 4= internal, 4= out8+ound, 4= /riorit,, 4> /riorit, control, 4; /lanning and control function, 4:W4; /lant load /rofiles, 512 /oint of use APFUB, 94 Po(a8,o(e, 5=, >2, >4W>9, 5:> PFU. See /oint of use /riorit, control, 4; /ro+lems, documentation of, >> /rocess ca/a+ilit, A /KB, 5: /rocess control, 4, 9, :;W;2, 525. S ee also -i0e Primar, .lements /rocess c,cle time, 3; /rocess flow, 539 /rocess ma/, =5, =4W==, =>, 51:, 5:> /rocess matri", == /rocess owners, 53, 54, 551, 51=, 54;, 591W593, 5=1, 5=;, 5:1, 5>1, 5>;, 5;2, 5;3 /rocess qualit,, 3; /rocess 0alue anal,sis AP#AB, 51 /roduct alignment, 512 characteristics, =1 /roduct deli0er,, as out/ut measure, 3; /roduct demand anal,sis, 51> /roduct demand +eha0ior, 512, 515, 534 /roduct de0elo/ment, 5: /roduct life c,cles, 59= /roduct qualit,, as an out/ut measure, 3; /roduct/quantit, AP/PB anal,sis, =5, =1W=4
Glossary
995 /roduct8focused res/onsi+ilit,, 14, 1=W1> /roduction loss, 533 /roduct8mi" schedule, 51:
/roDect charter, ;, 52, 525, 514, 5>> sam/le, 521 /roDect management assum/tions, 5> com/onents of, 52 /roDect milestone /lan, ;, 52, 525, 521, 514, 5>>, 5;5, 121 sam/le, 523 /roDect time lines, 592, 5=2, 5:2, 5>5, 5;5, 121 P#A. See /rocess 0alue anal,sis
L R
quic(8hit list, 55> !AA. See res/onsi+ilit,, accounta+ilit,, and authorit, rate8+ased schedule, 9=, 9>, =; release and control, 4: re/eater /roducts, =3, =4, 595, 122, 125 res/onsi+ilit,, accounta+ilit,, and authorit, A!AAB, 52, 1:, 51=, 591, 5>:, 124 return on in0estment A!FIB, 3> roll8through ,ield, 3;, 522, 559 root cause anal,sis, 554 routing anal,sis, =5, ==W=; rules, ownershi/ of, 4: runner /roducts, =3, =4, 595, 122, 125
scheduled time a0aila+le, :2 Sei(etsu, >: Seiri, >= Seiso, >: Seiton, >= self8assessment, :, > ser0ice cells, 95 setu/s, >2, ;5, 539, 125 internal 0s. e"ternal, >5 reductions in, 5>1, 5>= standardiGing, >1 Shitsu(e, >: single8minute e"change of dies ASM.*B, 5=, >2W>1, 53;, 5==, 5:>, 5:;, 5>2, 5>:, 5;> SIPF , 51, 93, 555, 553, 51: SM.*. See single8minute e"change of dies s/aghetti diagram, =9, ==
SP . See statistical /rocess control staffing /roDections, 512 statistical /rocess control ASP B, 5= stoc((ee/ing units ASKUsB, =1, :1, 52> stranger /roducts, =3, =4, 595, 122, 125 suggestion +o", 524, 519 su//lier interface, 553 su//lier /erformance, 54= su//l,8chain management, 549 su//ort, 5=2
"
ta(t time, 54, =5, =;W:5, 51=, 51:, 534, 539, 125 defined, =; designed, 51> 0s. c,cle time, =;, :3, :4 0s. machine time, :5 0s. man time, :5 team candidates, >W; full8time 0s. /art8time, >, 591, 5;3, 123 mo+iliGation of, ; roles, >, ;, 52, 54, 539, 591, 5>;, 5;3 time o+ser0ation form ATF-B, =: total /roducti0e maintenance, 5= total /roducti0e maintenance ATPMB, >2, >1W>4, 53;, 5:>, 5>:, 5;>, 124 t,/es of, >3 TPM. See total /roducti0e maintenance transition strateg,, 51: 99>
unions, 35. See also lean manufacturing@ unions, and
0isual controls, >2, >:W>>, 539 0olume matri", =>, =;
waste, 554, 559, 533, 539, 5;= wor( content matri", ==, =: wor( in /rocess in0entor,, 94, 5>: wor( instructions, >2, >>W;2, 539, 53: wor(a+le wor(, 9>W9; wor(flow management, 4: wor(force /re/aration, 14, 31W33 wor(load +alancing, =5, :5W:3 wor(sho/ training, 592, 5:5, 5>5, 5;1__

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Lean

Back to Basics: Your Guide to Manufacturing Excellence

Enterprise Resources Planning and Beyond: Integrating Your Entire rgani!ation

Integral 'ogistics Management: Planning and &ontrol of &ompre$ensi(e Business Processes

'ean Manufacturing: "ools# "ec$ni%ues# and +o, "o -se "$em

Macrologistics Management: A &atalyst for rgani!ational &$ange

Restructuring t$e Manufacturing Process: Applying t$e Matrix Met$od

Supply &$ain Management: "$e Basics and Beyond

The St. Lucie Press/API S Series on !esource Management

St. 'ucie Press

$oca !aton % London &ew 'or( % )ashington, *. .

'i1rary of &ongress &ataloging2in2Pu1lication 3ata

3escription of t$e :i(e Primary Elements

Lean Man"*act"ring+ Tools, Techni-"es, an& (ow To .se The!

'ean Manufacturing Approac$

:igure 9.6 'ean Manufacturing Road Map

Management 3e1riefing 6 day 9G< days 9G< days 6 day

Lean Man"*act"ring+ Tools, Techni-"es, an& (ow To .se The!

Root &ause Analysis

Eloss function and issue/element matrixF

Management 3e1riefing ;26/9 days 6G; ,eeks 6G9 ,eeks 9 days

Lean Man"*act"ring A))roach

Lean Man"*act"ring+ Tools, Techni-"es, an& (ow To .se The!

64 :igure 9.4 Implementation Met$odology :igure 9.= 'ean Manufacturing Principles 6=

Lean Man"*act"ring+ Tools, Techni-"es, an& (ow To .se The!

Lean Man"*act"ring A))roach

hat%s In It for Me"

perational Roles and Responsi1ilities

3uPont Model: A &ompany *ie,

:igure <.6 3uPont Model

utput2Based Measurements: A &ell "eamJs Results

Process23ri(en Measures: Infinite &ontinuous Impro(ement

Goal Alignment "$roug$ Policy 3eployment

Measurement 3efinition and -nderstanding

Lean Man"*act"ring+ Tools, Techni-"es, an& (ow To .se The!

in0ol0ed in this element. -ollowing is a descri/tion of the sco/e of each of

H Parts H 3ra,ings H "ools

H &ell leader H Prod. &ontrol H perators

H Products H "ransportation H Information Logistics le!ent

Priorit! Planning +,or$ard Plan-

Ca&acit! Control +In&ut*Out&ut Control-

A#B#& Material +andling

In a lean en0ironment, controlling the flow of material and managing in0entor,

Kust2in2"ime EKI"F Aan1an 3emand Signals

Lean Man"*act"ring+ Tools, Techni-"es, an& (ow To .se The!

&ell "eam )ork Plans

:igure 4.5 Mix2Model Manufacturing

Product/Luantity Analysis EProduct GroupingF

Man"*act"ring %low le!ent

Man"*act"ring %low le!ent

Lean Man"*act"ring+ Tools, Techni-"es, an& (ow To .se The!

Routing Analysis EProcess# )ork &ontent# *olume MatricesF

M Total AMin.B M&M& M M&M

Lean Man"*act"ring+ Tools, Techni-"es, an& (ow To .se The!

)orkload Balancing and

&ell 3esign &riteria

Lean Man"*act"ring+ Tools, Techni-"es, an& (ow To .se The!

Single2Minute Exc$ange of 3ies

Lean Man"*act"ring+ Tools, Techni-"es, an& (ow To .se The!

"otal Producti(e Maintenance

Poka2Yoke E:ail SafeF

:igure 5.9 "otal Producti(e Maintenance: Six Big 'osses

Process Control le!ent

:igure 5.; Examples of Error2Proof 3e(ices