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Stand Down Events for Truly Rapid Results

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Over the years, businesses have used numerous tools and techniques to achieve rapid change (i.e., Kaizen events). These techniques have typically focused on resolving specific manufacturing or business issues and last (often) for five days. However, in today’s fast-paced world, shutting down for an entire week to find and implement solutions to known problems is most often considered out of the question. Businesses now expect immediate gratification, often aiming at big changes in a just one day.

With a “need for speed,” more and more organizations are adopting the idea of holding what are best known as Stand Down Days ― one-day problem solving events. These intense initiatives can be focused on a broad range of improvement activities, but are most often leveraged to jump start 5S programs. Far removed from “business as usual,” a Stand Down Day is not something that can be undertaken by the faint-hearted. Only organizations with true diligence will succeed.

For Lean aficionados, the execution of a Stand Down Day should not be that daunting, as it falls squarely within the typical framework of Plan-Do-Check-Act (PDCA) ― with a significant emphasis on the P. The primary objective of any Stand Down is to orchestrate a series of tasks in a day that could typically extend over weeks of uncoordinated activities. Such orchestration needs more than a maestro; it requires music sheets and the combined skills of an entire orchestra.

There can be no half-measures in accepting such an undertaking, and it all starts with 100% buy-in from the Site Leadership Team. This means wholehearted involvement from top management to commit their entire workforce. In fact, first and foremost, Leadership must agree to shutdown all normal operations and office activities for the day in order to have a single site-wide focus of creating a “world-class” working environment. There can be no exclusions! Leadership must also ensure that all employees understand the significance of what is being planned, and that their participation in the outcome can have a far-reaching impact on the overall success of the business.

The implementation of a 5S Stand Down Day needs to be looked at as an opportunity for the entire business to work together as a well-oiled machine. If one cog in the wheel is failing, the entire machine malfunctions. Due to the time restraints, nobody can afford to nibble around the edge of a problem that has suddenly become everyone’s problem. Instead, it must to be tackled as the only gorilla in the room. There is perhaps no greater motivation than this kind of peer pressure to deliver immediate and tangible results.

To learn more about how to most effectively plan and execute a Stand Down event, click here to download Kaufman Global’s white paper, “Stand Down Events for 5S: The Thirst for Rapid Improvement.”

Prioritize Manufacturing Fixes For Better Results

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There are times when a manufacturing operation needs to get better (a lot better) — fast. This can be the result of many things. Often it’s in response to an external stimulus, such as competitive pressure, a quality “event,” or a troubled product launch. Sometimes it happens when customer demand increases without warning, where the “without warning” comes by way of truly new information and / or orders from the customer. Perhaps it’s because of a failure of internal sales and operations planning (S&OP) process — which happens more than anyone would like to admit. Or, it could simply be that the manufacturing operation has fallen into complacency and someone new comes in to disrupt the status quo. Whatever the reason, there are fundamental Lean manufacturing steps that should be taken to increase production. These types of changes are often inevitable and are often easier to achieve when thrust upon us.

Prioritize Improvement Activities by Aiming at Objectives

Lean waste wheel with manuracturing hot spots

Lean Waste Wheel with People Energy Added and Top Priorities in Red

Lean manufacturing aims directly at factory throughput. A simple question to ask is: “How do we incrementally get more top quality product out the door with the same or fewer resources?” Taiichi Ohno’s waste wheel has a simple way of describing the things that get in the way of optimal throughput. The wheel describes seven classic wastes: Transportation, Inventory, Motion, Waiting, Over Production, Over Processing, and Defects. Within each one, there are many methods that can be applied for improving results. It only makes sense to give some priority to what to fix first.

The top three waste targets for improving manufacturing most quickly are: Waiting, Inventory and Defects. Everyplace IS different, but overall, these are the areas that get you furthest fastest. Most other forms of waste, and the methods to address them, fall in line under these.

Waiting Waste

Whether its machine capacity or human capital, there is no greater sin than waiting for product to move through the system. The question to ask is simple, “Why aren’t things moving?” The reasons are fairly standard: machines are down, there are missing people, parts and materials, etc. Many paths can be taken to fix these problems. It could be maintenance and machine downtime, or it could be organizational / skill versatility or shift-loading. Missing parts are often supply chain issues, such as forecasting and supplier management. In the end, the simplest question has many opportunities for discovery.

Inventory Waste

Inventory (e.g., raw, WIP, finished goods) is visible and extremely costly. It’s bad enough when you think about inventory in terms of the cash it represents. It’s even more frightening when you add the costs of moving it to the location where it sits, sorting it from time-to-time, and throwing it away when it becomes obsolete or a quality defect is detected. Only then do you begin to understand how despicable inventory really is. But that’s only part of the picture. There are other reasons why inventory is a logical first-strike target.

  • Inventory not only disrupts throughput by physically getting in the way, but it also clouds throughput issues by masking problems. When inventory builds up, it disguises real issues that affect throughput and delivery. WIP covers up overall equipment effectiveness (OEE) and quality issues. Raw materials disguise supplier delivery and quality problems, and finished goods inventory mask gaps in on-time delivery.
  • Inventory is the most visible attribute of a Lean versus a non-Lean operation. Not only does it show up throughout the operation, but it also shows up at headquarters where the people who measure results automatically assign dollars to inventory. A comprehensive reduction in inventory (i.e., an improvement in inventory turns) is a sign to the entire organization — from top-to-bottom — that something is improving. This is important to build enthusiasm for the dramatic changes taking place throughout the operation.

Defects Waste

Building bad product wastes time, energy and money because it’s already loaded with labor and material costs. On top of that, we add cost to detect, sort and fix defects. Quality is in the top three most important initial targets because it cannot suffer at the hands of the throughput objective. And, nothing will undermine an initiative to increase throughput faster than a quality problem delivered to the customer. In the automotive industry, recalls result in billions of dollars of lost value every year. In the Oil and Gas industry, a single quality problem leads to non-productive time (NPT) that can cost a million dollars per day. And, it’s not just the cost of fixing the problem that impacts businesses the most, it’s also the damage it causes to the supplier and customer relationship. The cost of the Macondo oil spill disaster (which was more a process quality issue than a material problem) is incalculable ― both in terms of tangible and intangible losses.

Everything Is Connected

Because the entire system is connected, addressing any one of these three wastes automatically impacts all the others described by Ohno. Ask good questions at the start and develop a plan of attack that always keeps your focus on the objective: “How do we incrementally get more top quality product out the door with the same or fewer resources?” Start with the few critical places where small improvements will have the greatest effect, and then develop an implementation plan that includes the broader organization in a holistic approach. When you’ve made it this far, you can then apply waste elimination tools, methods and techniques to your heart’s content.

To Learn more about Kaufman Global’s view on Lean manufacturing, download our White Paper: Implementing Lean Manufacturing: A Holistic Approach.

Lean Tools are a Means, Never an End

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One of the most common and most difficult to eradicate beliefs is that “Lean” is just a bunch of analytical tools and methods. By knowing and applying them, organizations often believe they will automatically — and forever more — increase their profitability. If this were the case, why are so many companies, institutions and agencies that have applied Lean tools not experiencing sustainable differences? Why is it that in many instances organizations, once started down the road of Continuous Improvement (with varying degrees of success for sure), break away and refocus on other initiatives the moment a new CEO or plant supervisor comes onboard? Are the tools not working? Is it just another consultant’s ruse, where the theory sounds great but doesn’t work in real life? Or, are the means and methods not being used properly?

Can Lean Tools (by Themselves) Transform a Business?

A tool is any physical item that can be used (by someone) to achieve a goal. So in essence, a tool does not do anything by itself. Someone must use a tool to perform (or not), and the correct use of that tool determines success or failure.

Computers, the Internet and mobile phones are all great inventions from the last century. However, given this definition, they are basically just tools — they are a means to an end and should be used as such. Nevertheless, in today’s times it is easy to find examples of where tools are being treated as an end more often than not. For instance, in manufacturing environments production schedules are created by ERP or MRP systems. Yet, these systems depend entirely on accurate data input such as correct inventory levels, material locations, scrap levels, (reported vs. actual), etc. And, as we all know, production cycle times never vary (ha!). All these elements are heavily influenced by people’s behavior where work discipline is translated into the accuracy or inaccuracy of the ERP / MRP tool. But in real life, we seldom follow the exact schedule generated by the computer. Why is this? The computer rarely makes mistakes. It’s because we — people — do not use the tool properly and consistently. We don’t give the tool what it needs which is accurate data and inputs. We automatically assume the computer has considered all the variables.

Proper Tool, Wrong Attitude?

In a recent visit to an assembly plant for window regulators, I noticed that throughout the plant supermarkets had been installed. Separate safety stocks and a constant milk run train ensured each cell was supplied with materials. At one point the milk run operator arrived at the supermarket to find it empty of a specific part. Not to worry, he immediately went to the safety stock, collected the parts and made the necessary adjustments so that the cell could continue working. So yes, the tools (e.g., inventory control, replenishment and kanban, etc.) were working. Yet, the operation was down for parts? The failure here is that the operator did not report the fact that the supermarket was empty, which would enable preventative countermeasures. As it turned out, the underlying problem was a combination of factors: parts placed in the wrong location caused by an overly complicated visual management system and an operator who, at the end of his shift, dumped the parts somewhere in his hurry to go home.

Be Consistent

In another assembly plant, a need was identified to increase the quality output of a specific cell. Boundary samples, error proofing sensors and devices were installed, along with standard work methods and detailed visual job instructions, all with great success. However, several months later, the focus of management changed. They believed quality was now a given because all the “tools” were in place. They chose to revert back to the old, well-proven method of shouting to demonstrate the new priority and increase output of the production line “any way you can.” The operators responded as predicted, and the output numbers from the cell increased. Over time, the focus on quality checks in the cell became more relaxed. Soon enough, scrap numbers began going through the roof. As it turned out, the operators had found a way to circumvent the sensors and boundary samples because they felt a higher productivity goal was being served.

Only the Whole Package Succeeds

In both cases, the tools worked and ensured short-term success, but the system failed in the long-run because the companies did not succeed in changing the behavior and mindset of all the process stakeholders. The organization did not change its values and instill process discipline to follow the structure and system that comes with the tools.

It’s important to remember the definition of a tool: any physical item that can be used (by someone) to achieve a goal. Success comes from selecting the right tool and determining how someone must use it. It is a means and never an end!

Lean tools are logical, easy to understand, widely applicable and, in most cases, simple common sense. The important thing to remember is that if we do not use them diligently, in a structured manner and adjust our own behavior, the tools alone will never achieve sustainable improvements.

Read about how we helped a leading industrial equipment manufacturer appropriately leverage Lean tools inside of a comprehensive Continuous Improvement approach. Click here to download Kaufman Global’s Case Study: Transforming Operations into a Strategic Competitive Advantage.