Production Smoothing (Heijunka)

Production smoothing, also known as Heijunka, is a key aspect of modern operations management. It refers to the leveling of production to match customer demand, while maximizing efficiency and minimizing waste. This technique has been proven to be an effective way to manage production processes and increase competitiveness in the marketplace.

The objective of production smoothing is to create a steady flow of products and services, reducing the variability and fluctuations in the production process. This helps to minimize the waste and resources associated with overproduction, excess inventory, and bottlenecks in the production line. By leveling production, companies can better predict customer demand and adjust their production processes accordingly.

One of the primary benefits of production smoothing is the reduction of waste in the production process. By leveling production, it minimizes the need for excess inventory and eliminates the waste associated with overproduction. This helps to minimize the costs associated with storage, handling, and transportation of excess inventory, while improving overall efficiency.

Another advantage of production smoothing is the improvement of customer satisfaction. By better predicting and matching customer demand, companies can ensure that they have the right products and services available at the right time. This helps to build stronger relationships with customers and improves the overall perception of the company.

To implement production smoothing, companies must first understand their customer demand patterns and the production processes that support them. This requires a thorough analysis of the production line, including the identification of bottlenecks and areas of waste. The company should then develop a production plan that balances customer demand with the production processes to create a steady flow of goods and services.

The company should also implement effective communication and collaboration between all departments, including sales, marketing, engineering, and production. This helps to ensure that all processes are aligned and working together towards the common goal of production smoothing. The company should also consider the use of technology and equipment to automate the production process and improve efficiency.

It is also important to engage employees in the production smoothing process. By involving employees in the implementation and ongoing management of production smoothing, companies can tap into their expertise and insights, and build a culture of continuous improvement. Employees should also receive training and development opportunities to enhance their skills and knowledge in production smoothing techniques.

In a nutshell, production smoothing is an effective way to manage production processes and increase competitiveness in the marketplace. By reducing waste, improving customer satisfaction, and engaging employees, companies can create a steady flow of goods and services, and improve their overall production efficiency. By embracing this technique, companies can achieve operational excellence and maintain their competitive edge in the marketplace.

Rapid Improvement Event

Rapid Improvement Events, also known as Kaizen events, are a powerful tool for improving production processes in the manufacturing industry. They are focused, short-term initiatives aimed at solving specific problems and improving processes in a rapid and efficient manner.

At the heart of a Rapid Improvement Event is the involvement of a cross-functional team of employees, each bringing a unique perspective and skillset to the table. The team works together to identify and solve problems, test new ideas, and implement solutions that can have an immediate impact on the production process.

One of the key benefits of Rapid Improvement Events is the speed with which they can deliver results. By focusing on a specific problem and working together as a team, significant improvements can be made in just a few days or weeks. This can be especially valuable in the manufacturing industry, where time is often of the essence and even small improvements can make a big difference.

To ensure the success of a Rapid Improvement Event, it's important to follow a structured methodology. This typically includes the following steps:

1. Define the problem and scope of the event. What is the specific issue that needs to be addressed, and what is the desired outcome of the event?

2. Assemble the cross-functional team. Choose team members who have a strong understanding of the problem and can bring a variety of skills and perspectives to the table.

3. Conduct a thorough analysis of the problem. Gather data, observe processes, and engage in root cause analysis to understand the underlying cause of the problem.

4. Develop and implement a plan of action. Based on the findings of the analysis, create a plan of action that addresses the root cause of the problem and implements solutions that will improve the production process.

5. Implement and monitor the changes. Once the plan of action is in place, implement the changes and monitor the results to ensure they are having the desired impact.

6. Reflect and celebrate successes. Reflect on the successes of the event and celebrate the improvements that were made.

Rapid Improvement Events are a powerful tool for improving production processes in the manufacturing industry. By bringing together a cross-functional team, focusing on a specific problem, and following a structured methodology, organizations can achieve significant improvements in a short amount of time.

In a nutshell, it is important to embrace a continuous improvement mindset and actively seek out opportunities to improve production processes. Rapid Improvement Events provide a structured and efficient way to do just that, delivering results that can have a lasting impact on an organization's success.

Product Machine Matrix

The Product Machine Matrix is a methodology that can be used in the manufacturing industry to improve production processes and achieve operational excellence. The idea behind this approach is to create a matrix that matches the type of product being produced with the appropriate machine for that product.

The first step in implementing the Product Machine Matrix is to analyze the current production process and identify areas where improvements can be made. This can be done through the use of data and performance measurement tools, as well as by observing the process and gathering feedback from employees.

Once the areas for improvement have been identified, the next step is to determine the optimal machine for each type of product. This involves considering factors such as the complexity of the product, the volume of production, and the skill level of the operator. It may also be necessary to make changes to the existing machines or to purchase new equipment in order to meet the needs of the production process.

The Product Machine Matrix also requires the establishment of standard work procedures for each machine and product type. This helps to ensure that the production process is consistent and efficient, and it also provides a roadmap for continuous improvement. Standard work procedures should be regularly reviewed and updated based on performance data and feedback from employees.

Another important aspect of the Product Machine Matrix is the need for visual management. This involves creating clear and easy-to-understand visual aids, such as work instructions and flow charts, that help to guide employees through the production process. This helps to prevent errors and improve productivity, as well as making it easier for employees to quickly identify and resolve any issues that may arise.

To be effective, the Product Machine Matrix must be integrated into the overall culture of the organization. This requires the commitment and engagement of employees at all levels, as well as a focus on continuous improvement and a willingness to embrace change. Regular training and communication is also key to the success of the methodology, as it helps to build the necessary skills and knowledge, and ensures that everyone is working towards a common goal.

In a nutshell, the Product Machine Matrix is a powerful methodology that can be used to improve production processes in the manufacturing industry. By carefully matching the type of product with the appropriate machine, and by establishing standard work procedures and utilizing visual management techniques, organizations can achieve operational excellence and drive continuous improvement. With the right approach and commitment, this methodology can deliver significant benefits to any organization looking to optimize its production processes.

ABC Analysis

ABC Analysis is a method used in the manufacturing industry to categorize inventory based on its value and usage. The goal of this analysis is to prioritize items for better inventory management and streamline production processes.

In ABC Analysis, items are divided into three categories: A, B, and C. A items are the most valuable and frequently used, B items are less valuable but still used regularly, and C items are the least valuable and used infrequently. This categorization helps identify areas where improvements can be made to reduce inventory costs and increase efficiency.

To implement ABC Analysis, it is necessary to first gather data on the value and usage of each item in the inventory. This can be done by tracking the usage frequency, cost, and demand of each item. Once the data is collected, the items can be divided into the three categories based on their value and usage.

Once the items are categorized, the focus can be placed on the A items. These items should be closely managed and monitored to ensure they are always in stock and available for production. This may involve implementing a just-in-time (JIT) system for these items, which reduces the amount of inventory that needs to be kept on hand.

B items can also be managed, but to a lesser extent. These items may not be as critical to production, but they still need to be available when needed. Inventory levels for B items should be managed to minimize excess inventory, but not at the cost of stockouts.

C items are typically low-cost items that are not used frequently. The focus for these items should be on reducing the amount of inventory that is kept on hand. This can be done by reducing the order frequency or implementing a safety stock system to ensure that the item is available when needed.

In a nutshell, ABC Analysis is a simple and effective method to prioritize inventory and streamline production processes. By categorizing inventory based on its value and usage, it is possible to focus on the most important items and reduce the amount of inventory that is kept on hand. This leads to cost savings, increased efficiency, and improved production processes.

Smoothed Production

The topic of discussion today will be the so-called smoothed production. It is integral for customer satisfaction as it is a part of the ordering and complete fulfillment process. It makes sure that the supply chain capabilities are enough for stable production.

Smooth production benefits you by having a proper influence on your workplace configuration. It does this by helping to create a stable output with optimized inventory via a pre-condition. This presupposition/pre-condition simplifies your workplace based on the following conditions:

• Standardized work processes

• One-Piece Flow within the workstation

• Complete processing

• Stabile customer TAKT TIME

• Minimal TAKT TIME loss

• Maximum Output

• Flexible deployment of workers

• “U-Shaped“ layout

• Set-up time optimization

• Quicker material change

• Two-Bin-Principle

The smooth production is structured in the following:

• Planning Strategy

• Constant lot sizes

• Stabile material needs

• Fixed production times

• Flexible inventories

• Fixed timelines

• Higher delivery dependability

It is implemented by:

Material flow

• Scheduling methods

• No part shortages

• Pull-principle

• Supermarket

• Route traffic

• Small containers

Warehouse Organization 

• Full transparency

• FIFO-Principle

• Minimal warehouse levels

• Set assembly

• Bar codes and Data Matrix Codes

You may be asking the question, “but why do we need smooth production?”

It is a well-known fact that smooth production has many veritable advantages. With that said, there are also some potential drawbacks, but those can be eliminated or at the very least mitigated in the implementation phase. 

Here are some of the benefits and drawbacks of smooth production:

The next question you might be asking is, “how does one implement smooth production?”.

Following are some of the requirements for smooth production:

• Variable worker allocations should be the basis for the production power of the system. The variable shift models are first optimized for maximum output and then implemented specifically.

• Two factors determine the minimum inventory of safety stock for a part number. The first is the variability in customer ordering habits. The second factor is the degree to which the program is successful in the production line. To hit the right spot between these two factors will require systematic optimization with the help of a mathematical model.

• To determine what the maximum inventory of each part number should be, we should look at the delivery cycle of that said part number. This is essential for weekly pick-ups or delivery.

• The production equipment inventory should be in accordance with necessary tool changes and set-up times.

• The weekly production plan should be consistently released to the concerned parties once the production macro planning has been finished.

• An information board at the assembly areas will contain all the planned orders.

• The material requirement determination should solely be on the basis of the production plan.

• Assembly areas should be designated for the online measurement of production units. A data matrix system should be implemented for reducing errors in the documentation process.

• The ability to control production is a must if there are any noticeable short-term reactions arising due to discrepancies between the expected outcome and the actual outcome of the production plan.

• Any daily deviations must be dealt with proper countermeasures. The production plan must be flexible enough to allow time to deal with backlogs. Meeting shipping deadlines is the primary goal.

• A time-saving approach must be implemented in moving full racks from assembly areas to warehousing. 

• The requirements of the long-term sales plan should be integrated into the production plan so that production capacities and worker allocation are determined. 

• It is imperative that order calling and Just-In-Time delivery schedule data be automatically transferred to the resource planing system so that production planning can be done.

• The production planning for the system will determine the specific production calendars with your organizations shift models. 

• All underlying data in the system must contain related shipping dates or the dates can be transferred from the demand data as well. 

• To control the complete system, the updated inventory trend with planned shipping dates, for example, weekly and monthly, should be represented graphically.

• All possible scenarios should be simulated, because it is important to determine optimum capacities, performance, etc. for universal or shared production areas.

So, what factors make smooth production successful?

The two factors are planned output realization and controlling of supply

1. Production plan fulfillment as a part of planned output realization (source: Information board at production area as part of shop floor mgt)

2. Performance grading of workers in the production area that is done on the basis of the number of Dollars created in exchange for optimal material usability and worker effort (whether overtime or temporary workers)

3. Material usability of purchased parts, WIP, and raw materials when assembly time bears the cost or parts become short (Source: Information board at production area as part of shop floor mgt)

4. Special trips for the respective assembly area as a truthful Dollar figure

5. Supply capabilities and service grade for finished goods are measured using the number of delivered parts and the number of delivery dates met as a result of customer requests when demand data is transferred. (Source: Information board at production area as part of shop floor mgt)

Alternative measures for the success of smooth production:

• Usage of constant customer feedback to determine customer satisfaction as used by companies e.g. from the automotive industry 

• Iterative comparison of customer feedback with important shipping and delivery figures

• Target values of no customer feedback are used to get parameters to measure with

With the help of Kaizen workshops in conjunction with the introduction and implementation are used to create optimal basic parameters of success:

• The finished goods inventory levels are available transparently to be used as an early warning signal

• A minimal failure rate is strived for in the overall process of making sure of data from the production and logistics division

• Over-production of products is reduced by ensuring that upstream assemblies are only producing the right amount of product to be used by the downstream processes

• With the implementation of workshops, the set-up time can be reduced drastically

• Constant reduction of purchase parts does not diminish the availability of the material in the production line while also reducing downtime 

• Optimal balance is achieved for assembly lines and areas and the requirements are met for variable worker allocation

• The specifications of operator qualification shall determine how the qualification and training of workers should be conducted

• There has been evidence of improvement in production flexibility in comparison to the past

Lighthouse Project

When talking about Light House Projects this means nothing less than that a small sector of your organization e.g a department is already turned around. By that we are talking about living already the ideal state, that you defined for the complete organization.

Processes and structures can be seen as guidance for your organizations’ lean journey. It provides directions, shows what is possible and therefore is the kickstarter for a successful roll-out as people can convince themselves with their own eyes.

Just keep in mind that the lean journey with its process of continuous improvement is never over. The pioneer has to lead the way.

QRQC

Quick Response Quality Control

The QRQC can bee seen seen as a general management attitude to solve any kind of problem at the place where it occurs. Closely related to Gemba Walks. With QRQC the main focus relies on the so called “Three Reals”. The three reals aims to guide you firstly to think about the real place and real time (Gemba - or originally “gen-ba”), the real part (“gen-butsu”) and to have a focus on the reality (“gen-jitsu”)

Having a functioning QRQC systematic installed supports the greater target of smooth production by:

• Decrease of Cost for Quality

• Decrease of Scrap Rate

• Decrease Cost of Product

• Less line Stops

• Quick Response on customer Quality Claims

• Increasing the Quality Level in general

• Increasing the turnover of inventory

• Increase of throughput

As with all Lean or Operational Excellence activities you will need the support of coaches and management level. Implementing a standardized procedure on how to react on customer claims and internal failure rates needs C-Level support to promote and to walk the talk. The baseline of problem solving is and always will be the discipline to follow the complete structure and process of standardized problem solving.

Important as the problem solving itself, is in the end the transparency and promotion of solutions as well as clear communication and sharing of the gained knowledge through Shop Floor QRQC initiatives to be seen by the whole organization. Best way to do so is visualizing important information of the closed issues, such on Shop Floor Boards or at work stations themself.