5M Method

5M Method is just an other way of describing an ISHIKAWA Diagram. This diagram is pre-structured with five given categories of potential causes: “Man”, “Machine”, “Material”, “Mileu = Environment” and “Methodology”. In a more detailed form of the environment you can further divide it in “management” and “measurement” which then is considered as 7M methodology.

One Piece Flow

The term One-Piece-Flow basically describes the radical reduction of lead times through flow-optimized production. In an ideal state processed parts or components are moved from one process step to the next without any interim storage. The quantity moved consists only of one part or one batch. You will only be able to achieve this when your work systems are closely connected. The transition of a work system to an one-piece-flow oriented system can only succeed if there is a high availability of existing capacities and flexibility.

Getting your production to flow combines increased productivity and increased employee motivation.

As with most of the lean terms the one-piece-flow principle made its way from the Toyota Production System where it is referred as operator centric work flow. Instead of day in and day out performing the same task at a fixed work station the operator moves with the workpiece through the complete process steps, station after station, for which he/she has to be qualified for all process steps. It is quite similar to a Chaku Chaku line, while Chaku Chaku describes a concrete line layout, one-piece-flow is a principle or mindset so to say. The basic idea behind it is to reduce defects through lacks of concentration and increase motivation of operators through variety.

Lean Manufacturing terms might seem complex, but as most of the time, the principle behind is straight forward and quite simple. As they seem to be no brainers they easily get forget about it which will automatically lead to waste. The best example for waste is the so called TIMWOOD(S), where two main drivers are high amount of Work in Progress (WIP) and high inventories.

Now let us have a look how the One-Piece-Flow principle can help.

The principle of One-Piece-Flow is a new form of flow production. In contrast to conventional forms of flow production the worker in the one-piece.flow production does not remain in his place. Generally speaking the operator has no place of his own - he is always moving with the good. This is exactly where the reference to Chaku-Chaku comes from. With the sequence principle, on the other hand, the operator only interacts with the workpiece on one process step.

After on part is finished the operator starts again at the beginning of the line. This procedure comes with certain demands on the assembly line. U-Shape Layout is the most favorite one, as start and end should be as close as possible to each other in order to keep ways short and transition seamless. The U-Shape Layout is also great as raw material and other components are supplied from the outside, what makes the job of the Mizusumashi easier, and the value adding activities are on the inside.

But speaking about the advantages of One-Piece-Flow, the try to make it short:

• Arrangement of workstations simplifies the arrangement of operators

• If deviations occur, the operator knows exactly where it is coming from

• With the CIP the continuous optimization is really driven on a constant basis

• Applied correctly, lead times are drastically reduced

• Inventory is drastically reduced

• Used space on the shop floor can be reduced by 60% compared to conventional production

• Motivation of operators raises as they are responsible from start to end and do not have this monotone daily routine of just one work station

In addition, the use of U-Shaped assembly lines, and if they are build up on standard profiles or standard shelvings, it gives you a huge amount of flexibility. Where workstations or the complete line can be easily extended, reduced or adjusted to new needs.

JIDOKA

JIDOKA - the Japanese term meaning automation. In this form of automation the machinery itself is checking the parts produced for defects after processing. With this constant checking of process quality deviations can be directly detected and when defects occur the complete process is automatically stopped until the problem is solved.

You might have come across the word autonomation, which is simply a combination of the words autonomous and automation that describes the automation with still human interactions. JIDOKA has to be seen as a manufacturing principle rather than a methodology. The idea behind JIDOKA is that all machines in the process chain can run without a dedicated operator checking for process stability and quality outcome. If there is a defect or non-conformity of the process, the machine shuts itself down, preventing the defective parts of getting passed on the downstream process steps and for this reason it prevents producing scrap.

In the Toyota Production System, autonomation is one of the main pillar and is also known as intelligent automation as it is firstly focusing on the quality and the ability of a self running system rather than just focusing on the output. You might have also heard the description of automation with a human touch - if a deviation occurs the machine itself will stop the complete manufacturing process and only with the interaction of an operator, after the problem is solved, it can continue production. The upside is pretty clear - you will not produce any defective parts or waste value adding activities on non-conforming components.

With the use of the JIDOKA principle a number of advantages are coming with it:

• Processing of non-conforming parts is immediately noticed, so that neither scrap nor rework occurs. Furthermore, no defective parts are passed on to the downstream processes steps

• Since the defects are detected automatically, a 100% end of line inspection is no longer needed within the scope of quality assurance

• With the help of automatic error detection, operators are no longer needed to monitor machinery, which is no-value adding activity anyway, so it can be declared as waste in the form of waiting time

• Operators have now the freedom to perform multiple tasks during the same time or are able to dedicate themselves to new tasks at all

• Maintenance activities will also decrease as crashes or malfunction due to the passing on of non-conforming parts is avoided

• JIDOKA is the basis of analyzing the root cause of failures and implement sustainable counter measures to avoid these of occurring again

KAIZEN

KAIZEN the mother of all lean terms.

The word Kaizen is a combination of two Japanese words - KAI meaning change and ZEN meaning good. Kaizen is the epitome of continuous improvement and stands for the “change for the good”. Kaizen for your organization means continuous improvement involving everyone.

All together Kaizen is a collection of simple principles for improving your work but also stands for a management philosophy that has turned manufacturing principles upside down the way organizations think and act. The key of all success is that all employee should constantly critically review their processes and workplaces and improve them every day a little more.

You see Kaizen is a fundamental attitude for all players in your organization that results in high quality processes with zero defects on finished goods. Living Kaizen is the continuous strive to improve, simplify or optimize. This ongoing never ending process is therefore best known as the Continuous Improvement Process (CIP).

You can’t say that Kaizen is a methodology or tool, it is a mindset. I can’t emphasize this enough.

““The message of Kaizen is that no day should go by without any improvement in the company””

— Masaaki Imai

Kaizen does not depend on major innovations or fundamental changes, but on the everyday small improvements of your employees. The multiple suggestions for improvements paired with a rapid implementation mentality will show really fast their effect on success. The term of continuous improvement is fairly said just another way of the old fashioned suggestions scheme or idea management, which has a long history in the industry but less successful communicated and accepted.

To make a little list before writing too much I want to make it short. In order to pave the way for Kaizen thinking, a number of principles are linked to it, which should guide the thinking and behavior of all players in your organization.

• Daily small improvements in all areas of your organization

• Avoid any waste of material, time and money

• Consider all downstream process steps as customers and then improve performance and quality

• Improvements are always possible, it will never stop

• Constant improvements are made on a small scale and step by step

• No restrictions in terms of scope; products, services, processes, activities, technology, workplace - everything can be improved

• Different methods and tools can be used, the decisive factor is the effect, not the procedure

• Workplaces, work areas and the situation are viewed "on site", things are viewed and analyzed live (Gemba Walks)

• with constant improvements, higher and higher standards are set and made the rule

• Kaizen is a task for all employees in the company

All employees of your organization are directly involved in the Kaizen activities and everyone has to participate. To secure the success of Kaizen each individual should invest an adequate amount of time of their working hours in Kaizen activities and focus on their commitment on improvements. As your organization has different departments and by this different employee groups their Kaizen activities are different as well (e.g.):

• Top management has to introduce and promote Kaizen as the fundamental principle and drive and monitor its implementation. It creates the right conditions within your organization

• Middle management implements the requirements of top management and ensures that standards are kept. It also promotes the way of thinking by offering appropriate training

• Team leaders support employees in developing ideas and implementing them. They are responsible for execution and success confirmation

• The operators or administrators at the operational level work out concrete suggestions for improvement and implement them. This can also be done in small groups. Kaizen employees improve their specialist knowledge and experience by participating in further training courses.

To give you an example of daily Kaizen routines 5S seems the all time favorite.

You can read the full article on how to implement 5S here. But I will make a short excursion on 5S just to explain the way of thinking. 5S prescribes:

Seiri: Sort out all unnecessary objects

Seiton: Clean-up and correct arrangement of needed objects

Seiso: Keeping the workplace tidy so as to achieve the already established standards through 5S

Seiketsu: Establishing regulations for work standards

Shitsuke: Adherence to the Work standards and continuous improvement

Kaizen is always and everywhere its right to be applied.

Even when most of the people think that it is originally developed and deployed for the automotive industry (best known as the Toyota Production System) with clear mass manufacturing and assembly processes, there is no organization, yours included, that can not improve its performance and quality in terms of customer satisfaction, services, products and processes.

You see Kaizen has become a general way of thinking in all organizations and industries.

Thinking about organizations without Kaizen, you’ll see employees stick to rules and procedures with a “not my task” mentality. Only a few managers have to come up with fundamental long term changes. Kaizen on the other hand stands for the involvement of all employees and that everybody has to think every day what he/she can improve, simplify or optimize in his/her area of work for the “change for the good” of the complete organization, securing the long term success of your organization

YOKOTEN

Japanese term meaning “across everywhere”. With Yokoten the knowledgetransfer is carried out and all activities and countermeasures along the continuous improvement process are communicated organization wide and with other branches of the organization and its affiliates.

Yokoten is not just another Japanese word of the lean world. It might seem fancy to have only Japanese terms on the lean journey but one word isn’t that mainstream and well known but crucial when it comes to lean transformation in your organization. Yokoten describes the process of sharing knowledge across your organization. It includes systematics such as lead plans for copying and improving kaizen activities that work in your complete organization.

Think of Yokoten as horizontal deployment of improvement actions. The Yokoten approach is horizontal and peer-to-peer, with the expectation of Gemba Culture that your people go and see for themselves and learn how other departments or plants in your organization improved their processes. The idea behind is global knowledge transfer of improvement actions as basis for individual local solutions.

It is crucial that it is not a top-down thing where in all plants of your organization everything has to be the exact same. That simply will not work. It is more a benchmark where e.g. one plant in your organization is the champion of one manufacturing process (e.g. injection moulding). Therefore this plant is the “Lead Plant” and by this the benchmark for injection moulding organization wide. All other plants with injection moulding are welcome to the “Lead Plant” to learn from their experience and adopt the Kaizen activities to their own individual needs. With this kind of knowledge transfer a sustainable improvement and collaboration in your organization will be established.

In a nutshell, Yokoten can be understood as internal copy and improve. The role as senior manager is to spread the information and build bridges between the different locations/plants and give the transfer of knowledge a little jump start. Make your organization learn and improve from each other, most of the time there are already good examples out there and just want to be explored and further improved.

The long term success will prove that it is not the processes but the people that are continuously developed, that make the difference between a growing and successful organization or a simple copy cat of Kaizen activities.

The effective Yokoten process is a crucial brick for the foundation of a true learning organization. And no matter where you look at, truly successful organizations have a functioning organization wide knowledge transfer installed.

Point Kaizen

Point Kaizen describes improvement actions concentrated on one workstation = on the spot.

In general, all lean activities are striving to increase the output of your processes by simultaneously increasing the level of quality by shorten lead times and using less resources. But not all lean initiatives are reaching these targets. Typically the cause lies in the lack of clear targets by the management combined with a misinterpretation of kaizen activities and organizational change.

Kaizen is the Japanese term for “change for the better” on a continuous matter. Point Kaizen refers to a compressed focus on one workstation and improvement actions during a few days, where e.g. in the end the station is no more the bottleneck of the line/cell. For many people this is considered as “Lean”, but it is only a small part of the journey to real operational excellence.

As mentioned Point Kaizen is a scheduled event. When you have an own Lean Management Team or Kaizen Manager these are the guys who are in charge for the upcoming days. Once the team is gathered the action starts.

5S all over: Yes! Let’s start! Use the euphoria and sort out, get rid of all unwanted objects. Clean-up and proper arrange tools needed. Install e.g. flow racks following the 2 bin principle to ensure straight material flow. The Kanban System and FIFO can’t be skipped. Once the workstation is transformed - everybody is proud to have been part this lean activity and communicates the success story.

If you continue with Point Kaizen activities you will reach a better performance on each isolated workstation and probably everybody thinks that you have a great lean initiative. But the real long term results are missing out. So why to continue with lean activities?

Take a step back and see what you have so far. With the improvement actions on each workstation you have raised the efficiency of all single steps but didn’t consider the flow of material in between. It might be tiring to put all this effort in and then the management comes along and sees no obvious progress. This is the point when you move from Point Kaizen action to a systematical organizational change. This process is focusing on the underlying targets of the organization, such as raising performance, decreasing lead times, improving quality and making more profit.

The A3 format comes back in the game. Not only the A3-report and A3 problem solving but more the target setting on an A3 format that tells the story of how the targets can be reached by preset measures. Combined with the future state Value Stream Map showing all Kaizen Bursts each representing a Point Kaizen activity. All those measures lead to a future state of material and information flow that drives your organization into new spheres. In the future with the new Value Stream your bottlenecks will shift along this stream and always creating new point kaizen starting points. Bottlenecks by this can be either stocks of material, high process times or a lack of information. All Kaizen activities, no matter concerning material or information flow, are implemented following a prioritized list. You not only will have to reallocate resources, but also actively participate on the process of organizational change. You and your mid-management are in the driving seat, you have to know where your organization is heading, so make sure that you and your management are participating on Kaizen activities.

Point Kaizen is the first brick of the foundation for organizational change. With the systematic identification of bottlenecks, Point Kaizen activities can be planned and conducted. To have quick changes but is still able to deliver, one bottleneck after the other is worked on. Each Point Kaizen delivers one piece of improvement for the overall improvement needed. These superordinate targets are an increased output, reduction of lead times by simultaneously achieving Zero Defects Policy and all this combined with lower labor costs.

Supermarket

When speaking of a supermarket in lean context we are talking about an independent instrument that is used to control production. In a supermarket raw material and pre-commissioned components can be found in defined areas. The amount is well organized according the replenishment times of each component, in general the inventory is limited and components are refilled as soon as they are used. Following the Pull Principle with the help of the Kanban-System.

Concerning the supermarket we see it as one of the pull strategies that can be implemented as link between two process steps when developing the future value stream. The supermarket is the third option when firstly One-Piece-Flow and secondly FIFO are no options at all.
The supermarket is a great methodology to help your organization to manage a variety of inventory where you don’t need to know in what order the components will be consumed. Through the so called Kanban-Pull-System “internal customers” will take components of the supermarket, which are replenished by the internal logistics following the Kanban-Pull-Principle or in a pre-defined interval. With this integrated pull system of the supermarket as link between logistics and production you can also speak of a general replenishment pull system. But let’s have a look at the supermarket, what it can be used for and how it could look like in your organization.

The supermarket itself is a mix of FIFO lanes for different components stored in Mobile Racks or a typical shelf where components are stored in bins or on pallets. Let’s assume on workstation A 3 different components are assembled, in the supermarket 1 lane would be dedicated to only this component following the FIFO principle. With this explanation you can see why FIFO itself is preferred the supermarket. The supermarket is either steered with two bin principle or kanban cards. According the replenishment time, the replenishment is triggered with the extraction of components and the stock dropping below the minimum quantity.
You see, the key question is when to use a supermarket instead of installing plane FIFO lanes or even follow the One-PIece-Flow.

Here are some examples when this is the case:

• Two main material flow streams come together before or are split after the supermarket

• Your organization follows the made to stock principle, then the supermarket is at the end of production and stores finished goods

• With the help of a supermarket different lead times of suppliers paired with a high variance can be leveled and production can be smoothly supplied

• Upstream processes are lacking quality, downstream process steps can easily replace defective parts/components (interim solution until problem is solved)

• Different change over times, when a downstream process needs a change over the upstream processes can fill the supermarket as a overflow stock that is drained after change over is done

All of this examples have in common that the final target is to eliminate the supermarket itself and improving the material flow in a way that simple FIFO lanes or a Two-Bin-Principle at workstations can be realized.
The size of a supermarket is always determined by the components and their space needed for storage and their replenishment lead times. So it is a good piece of advice to have a clear overview of your components, their recurring demand including their replenishment times and don’t forget about a little safety stock on top.

As already mentioned there are two principles that are already well-known for implementing and steering a supermarket. The first one we have a look at is the Kanban-Principle and the second the so called Two-Bin-Principle, in which the bins itself trigger the replenishment.

A supermarket running on Kanban Cards can be seen shematically in the picture below. Every component stored in the supermarket is represented by an individual card, on which all required information is listed in order to trigger the replenishment process. The Kanban-Card can be seen as order slip for suppliers. Usually Kanban-Cards are placed on the so called Kanban Board. This kind of a supermarket can be seen most of the time.

The Two-Bin-Principle is a kind of supermarket where the bins itself are utilized the same way the Kanban Cards are used. In this approach all components have e.g. two assigned bins, filled with the dedicated components for this exact bins. The full bins are placed at the workstation, components are used and the empty bins are placed on the empty conveyor, ready to be collected by the Mizusumashi. the Mizusumashi refills the bins with the defined components and brings the full set back to the workstation. This kind of “decentralized” supermarkets are typically used for small and C-parts, which are consumed by not only one but several workstations, e.g. screws, washers, etc. as the financial impact of c-parts are low and the space needed is small.

In the end the supermarket is the last possible way to implement a Pull System after failing on implementing a One-Piece-Flow or FIFO. The target is and always will be to reduce the size of the supermarket by changing it into a FIFO system or change the material flow in to One-Piece-Flow. Therefore the supermarket can be seen as needed but temporary. The size of a supermarket is always defined by the size of the components itself, the replenishment time incl. some safety surcharge and the consumption lead time of the production. By simply removing or adding Kanban Cards or Kanban Bins the level of WIP can be adjusted.

Value Stream

A value stream includes all activities (value adding as well as non-value adding) in your organization that are required to deliver your product or service to the end customer.

With the help of the value stream you are able to describe all process steps required for the creation of your product or service, from raw material to the delivery of finished goods. With the Value Stream Map you are able to find potential sources of waste and try to eliminate those by concentrating on the value adding processes. Focus on customer needs and what your customers are willing to pay for. In the ideal state the your production is completely smoothed out and material as well as information stays in a state of continuous flow. Optimization of this state is always driven through productivity. Even when continuous flow is the ideal state, intermediate storages, work in progress or buffers are not evil and even can be a result of optimized material flow.

Push and Pull

To read the full article please go here. Push and Pull is a way in which you can optimize your production and produce according the value stream and flow principle when storages become tight or order books full. Just in time can avoid costly warehousing but gives you also a straight dependency on delivery performance from upstream processes or suppliers.

The pull principle describes the process from the customer's point of view. The order triggered by the customer pulls the components through production. With the push principle, the goods are pushed through production. The pull principle saves the storage of finished goods and thus also transport and search effort.

Quick Response Manufacturing Control

“ Quick Response Manufacturing Control” (QRMC) is a concept developed in the 90’s and describes an organizational philosophy which propagates the orientation towards the reduction of lead times as the primary target of all corporate decisions.

An approach was developed against the backdrop of the thinking that emerged in the 1990s, moving away from specialization and toward strong customer orientation and the resulting process-oriented organization, with the result that the entire organization was fundamentally transformed and aligned to the factor of time. Improved quality, lower prices, and greater responsiveness are accomplished as a result of the company's ongoing focus on the QRMC principles.

The concept of short lead times does not clearly stop when production reaches its limits; rather, all divisions of the complete organization must be incorporated into this strategy and align the targets, as determined by customer needs. Furthermore, this model allows for an outwardly adaptable and quick response to changing customer requirements.

Properties of QRMC

QRMC is distinct from existing "lean management" approaches, which are not in competition with QRMC but rather complementing it.

QRMC is appropriate for usage in businesses where production has the features of a significant number of variants manufactured in small batches with customer-specific characteristics. To make a decision if QRMC is the right approach for your business, see the following matrix.

A paradigm shift from the dominance of cost-based approaches and ways of thinking (e.g. unit costing) to measuring instruments is proposed, with the lead time for customer order fulfillment as the only essential indicator for controlling the overall material flow. It is vital to consistently use the four QRMC core concepts in order to successfully implement the QRMC philosophy in your organization in a durable and broad manner:

1. Time is crucial

2. Adaptation of organizational structures

3. Organizational-wide application

4. Dynamic toolset

Time is crucial

The common wisdom about work is that the quicker, harder, and greater you work, the more work you accomplish in less time. This mindset is represented in today's control systems, which consider "touch-time" control (value-adding activities) to be the most important component in time efficiency. Because the "touch-time" can be precisely measured without any doubt. And each and every controller assumes: Only what I can measure I can control. However, because touch-time lead times account for only around 5% of all lead time, the cost-cutting potential is modest as most of the time it is already squeezed to a minimum.

Furthermore, no matter what system you look at, the presumption of “faster, higher, further” only applies to a certain point, the break point. See it overstressing the the system. E.g. when the manufacturing input factors (5M) are pushed to their limits, the quality level will drop, toolings will wear out faster or even destroyed, in short: the system will collapse.

But to keep on going, how is the “non-touch-time” (non-value-adding tasks) measured. According the standard, cost-based approach, all expenditures for incoming and finished goods storage are covered including all overhead that is needed on defining processes on how and when a product will be produced. With existing traditional systems, these overhead costs are not really accurate apportioned.

As a rule, overcharges are utilized to spread this cost block among the things. Most of control frameworks don't correspond upward an ideal opportunity to the genuine causes. These overheads, then again, address the costs of time, or all the more explicitly, the expenses of lead times.

QRMC doesn't suggest that upward costs can be allocated all the more effectively, yet rather that more limited lead times mean lower upward expenses. The lead season of associations that attention on a QRMC technique is continually limited, permitting the organization to prosper in market significant numbers (e.g. delivery reliability or delivery time).

It may be challenging trying to begin utilizing QRMC approaches. Toward the beginning of a QRMC project, taking on the QRMC methodology and rules will prompt higher item costs.

The formation of cycle arranged hierarchical units eliminates the division of work into little useful work steps in free handling units (purported QRMC cells). The "autonomous working gatherings" work association standards are utilized in this QRMC cell's rundown steps. Inside the QRMC cell, multi-functional staff has a bigger responsibility, which is addressed in an expansion in "touch-time."

More modest clumps ought to be fabricated, as indicated by QRMC, to upgrade responsiveness. Thus, there are more set-up processes, which raise unit costs. Producing more modest bunches requires a higher recurrence of set-up processes, prompting more noteworthy set-up costs.

How does the lead time consumption influence you in the event that you can deliver on request and not in stock in light of the QRMC drive?

Cost decreases for distribution center terminations, as well as continuous structure uses, staff compensations for material dealing with, and deterioration costs, are completely limited. Notwithstanding these immediate consumptions, managerial expenses, for example, arranging and establish the executives have been brought down essentially.

Inventories ascend in esteem since they are not sold on the grounds that they are not created because of direct client interest.

All things considered, lead times brings down upward expenses. As opposed to the accepted problem of the following expense expansion in customary controlling, an increment in “touch-time" will subsequently bring about a general expense decrease, thinking about hierarchical QRMC structures!

Adaption of organizational structures

With a traditional and capacity arranged construction, an organization working in a confounded and dynamic market environment described by small batches, huge variations, customer specific goods, and intense competition can't achieve the objective of significantly bringing down the lead times. Accordingly, many errands have almost no immediate market reference; the longings of both outer and inner clients are just obscure. Besides, a capacity arranged association is wasteful, with long coordination and choice cycles.

Four areas of activity are determined to meet the points of "responsiveness to the customer" as a vital cutthroat component and leap forward into new aspects as far as adaptability and execution.

1. Change to cell manufacturing

2. Group liability rather than hierarchical control

3. Broadly educated workers > Qualification Matrix

4. Lead time as key figure

CELL MANUFACTURING

The solid consideration towards customers needs delivers a QRMC cell. This requires the mix of all capacities expected to meet customers assumptions, and henceforth focuses on a painstakingly characterized and limited market and additionally customer target.

Thusly, a QRMC cell involves the express task of man, machine, material, and procedure in a multi-useful structure, as well as their actual mix in one spot. Subsequently, outline work exercises are handled autonomously and completely to make a cell result.

Team responsibility

The drop from a hierarchical organization, in which those in control train e.g. operators what and how they should work, to a self-mindful organization inside a cell, is the following field of activity. Representatives plan and assemble their own corporate philosophies. The notable strategies for autonomous gathering work, like work revolution, work advancement, and occupation growth, come into consideration here. By working autonomously, productivity and product quality are improved endlessly. After totally planned requests have been finished; time is accessible to finish one more part of the QRMC hierarchical design: multi-practical employee qualification.

Multi-Qualified employees

At the point when workers are sick or on vacation, their obligations can be taken over and dealt with by different colleagues. This is the most quick rationale in broadly educating exercises. One more part of "cross functional qualification" is that weariness in positions is killed, and the scope of assignments turns out to be seriously captivating. This inspiration has an unsuitable clarification, however it is considered unreasonably quickly. Other key explanations behind "cross functional qualification" with regards to QRMC includes:

• Subject to the every day bottleneck, the obligations in a QRMC cell are incredibly adaptable. Various requests might happen at various stations inside the cell, expecting operators to work on an assortment of assignments consistently. The multi-qualified operators upgrade the cell's adaptability, empowering bottlenecks to be kept away from.

• Advanced machine parks don't constantly request the full focus of operators. Subsequently, the operator should be qualified of handling different machines at the same time.

• Long-term continuous improvements of process steps inside the QRMC cell are much of the time achieved because of the different work volumes.

Lead times as key figure

To evaluate the cell's performance, the lead time must be utilized and assessed frequently. Overhead costs can only be lessened by concentrating on lead times and the consequent suffering pressure to lower it.

The lead time is defined as the major goal as a result of this knowledge. On the 2nd layer, standard indicator systems and performance indicators do not need to be updated; instead, they operate as assistance and control function. The QRMC number can support this targeted orientation on cell level.

The following formula is used to compute the QRMC number:

Q "RM - Number "= "Lead Time reference period" /"Current Lead Time" ×100

Two points must be predetermined for a sufficient implementation of this new measurement technique:

1. To commence, the cell must clearly control the start and end points of the lead time measurement ("When does the time starts to run?"). Only when the cell has both the necessary material and the order release, for example.

2. The time, on the other hand, should only be monitored if the cell has absolute control over the associated time. Only those aspects of the cell's team that it has command on can be assessed.

As a result, employing the QRMC number has a variety of benefits:

While the assessment reveals a falling curve when appropriate measures to minimize the lead time within a cell are adopted, the graphical display of the QRMC number shows an ascending graph. The cell crew is much more inspired by increasing graphs than by dropping graphs.

Smaller lead time reductions at a later period are awarded more than greater lead time reductions at an earlier time by the QRMC number. This is demonstrated by the fact that lowering the lead time from e.g. 1hr to 30min is more difficult than cutting it from 3min to 2min.

Lastly, the QRMC number creates a dynamic competition within the organization, allowing teams and cells to monitor and analyze their progress in lead time reduction.

Organization wide application

In order to adopt the QRMC approach in your production areas it needs to be rolled out in the complete organization.

The fields of administration, purchasing, and product development are clearly referenced. As previously stated, it is also essential to minimize the interfaces by remodeling the cells to QRMC cells. Moreover, conventional process optimization techniques can be abolished, parallelized, integrated, or altered.

Planing your production with QRMC

A Material and Resource Planning (MRP) system helps you with production planning by assessing material requirements, initiating order proposals, and executing orders based on delivery dates.

The MRP system, on the other hand, is only as good as the employees filling it with information. In contrast to the processing time, "buffer times" for the order term are frequently scheduled to ensure smooth workflow and overcome planning flaws. The parameters for an MRP system are fairly straightforward after rebuilding the organization to QRMC cells. The MRP system is used to carry out greater cooperation and scheduling of the material flow from the supplier via the QRMC cells to the end date.

The system uses conventional logic based on lead times to regulate WIP levels, material orders, and backward scheduling by delivery date. The lead time is determined using the QRMC cell's lead time rather than the processing timings for every processing stage.

The MRP system is not used to manage micromanagement for each particular machining phase; this is performed by the cells independently. This implies the MRP system will be simpler, and the buffer times associated with each machining process will be shorter. Adjustments in the lead time as a result of cell optimizations are communicated back to the MRP system.

To synchronize order planning in QRMC systems with several QRM cells, a "capacity forecast" system, the so-called POLCA system, is initiated.

The POLCA (Paired-Cell Overlapping Loops of Cards with Authorization) system relies on the QRM cell structure and guarantees a constant flow of information among two cells. This prevents production from causing material blockages in the next cell. As a result, WIP accumulate between both the QRM cells. POLCA straightens out the varied capacities and lead time per cell, inhibiting the development of these "buffer or backlog stocks."

Due to planning in the MRP system, POLCA only operates on an order if it is required and genuinely needed POLCA aids in the identification of highly frequented bottlenecks in the system, narrowing the range of optimization techniques.

Coming to an end

Through the adoption of the QRMC methodology and its effective implementation, not only are lead times lowered, but also overhead expenses are diminished tremendously.

Additional effects include increased product and process quality, and also high variability against short-term market shifts and fluctuating client behavior. Customer responsiveness in today's marketplaces, with the appropriate items in the right location at the right time, is a crucial component that will result in greater market share. Cost savings and sales growth can both be achieved with QRMC.

In todays and tomorrows competitive market, a strategy that guarantees organizations are more competent and durable.

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

Layered Process Audit

Today we will talk about layered process audits.

LPA, or Layered Process Auditing, is a quality technique developed for manufacturing management. When used correctly, LPA brings your organization to improve quality, minimize scrap and rework, plus reduce customer rejections by driving cultural change throughout your company. To gain a better idea and to understand what LPA means we will have a little deep dive.

Layered Audits are a defined approach that devotes time and resources to ensuring that high-risk procedures and error-proofing mechanisms are consistent and functional. Therefore, three important components make up a Layered Process Auditing System:

• Full focus on High Risk Processes (HRP) by a list of defined audits

• Depending on layer of audit the audit itself is performed from various levels of management

• A system of reporting and follow-up to ensure that containment is maintained based on specific needs. But also, to maintain and drive the continuous improvement process in your organization

A full stack of audits

This part of a Layered Process Auditing System is straightforward. Audits are merely a set of questions aimed to investigate machinery or processes. An LPA system's audits should concentrate solely on parts of the value adding process where deviation poses a high risk of producing defective products. E.g. if you have an end of the line quality check station that is measuring crucial parameters or functions that are critical to customers of your product and the calibration is wrong, you are producing in Takt defective or non-conforming products. No need to mention that you should keep an eye on that process. With the help of a proper LPA system you will have the EOL station within the layers allowing containment and corrective action as soon as the station surpasses set tolerances.

Multiple layers of audits comes with multiple layers of auditors

Multiple layers of authority from across your manufacturing department conduct audits on a regular basis, at a predetermined frequency, in an LPA system. For example, once per shift, the Shift Leader conduct an audit that checks the parameters or settings of your EOL-Station. Another layer of management, which may include process engineers, maintenance staff, or even the human resources department, would circulate through the system performing the exact same audit. The sample audit might be performed once a week or once a month by someone in the layer by assigning a number of auditors to this layer and establishing a timetable that cycles through the system's audits. Yet another layer of management, such as the plant manager or even executive staff (the number of levels in an LPA system can vary enormously from facility to facility, depending on your organizations demands and needs). This extra layer of auditors performs the same collection of audits on a rotating schedule, concluding the example audit once a month or once a quarter, for example.

Countermeasures, Containment Actions, Reporting and Improvement Process

In order to have an effective, a Layered Process Audit system you’ll have to combine analysis, measures and improvement process.

If an auditor observes a non-conformance during an audit, the auditor should not only document their findings but also take quick appropriate action to ensure that defective products do not leave the facility. In order to help with the documentation and immediate actions you can use the A3 report and methodology. Simple but effective. You can find it here. Anyway, the findings should be documented and made readily available to management for further analysis. An LPA system is a handy tool for debugging problem areas and identifying areas that are suitable for improvement actions when combined with a strong system for recording and reporting these audit results. A systematic approach will be discussed in the Shop Floor Mgmt. article.

Though Layered Process Audits may be developed to meet a customer or corporate demand, effective LPA systems are built, implemented, managed, accountable to, and owned by your participatory manufacturing management group. A solid LPA system may help you to take proactive control of your manufacturing operations while also enhancing product quality and business bottom line.

Deviation Management

Deviation Management is simply said the pure ability to identify deviation of a process according to the standard work process and you have a structured approach to tackle that issue.

5 Reasons to work with Deviation Management

1. Improve compliance and ownership of defective goods or processes

2. Continuous feedback to operators and staff of their deviations

3. Structured process for deviation documentation, tracking of counter measures and problem solving

4. Prioritization of improvement measures

5. Data collection to engage external suppliers and customers

Brown Paper Method

What is the Brown Paper Method?

In this article we want to talk about the Brown Paper Method (BPM) in the context of process management.

The Brown Paper Method is an easy to use tool for process development or management for your organization. During a workshop processes are drawn on a large piece of paper (typically from big brown paper roll sticked to a wall) and then analyzed.

Important: Draw the process as they really are not as you think the are. Do a Gemba Walk before this session.

So let us take it as a tool for process management. To be able to understand processes and procedures in your organization and to find out the weak points of them, it is depending on details. Getting those details can be tricky as they might be hidden in the process or in your employees minds and not always so obvious. As mentioned take the Gemba Walks and have a close look on the processes because it usually comes with a taste of complexity. With the Brown Paper Method you then have a simple tool to visualize the complexity in a simply way.

The Brown Paper Method is a pragmatic and result-oriented approach for process audits, presentations or analysis. It is based on a workshop where all involved persons of a process come together in person and collect their findings and doings on brown paper and draw the big picture of the process in total. Through the discussions, that will appear during the workshop, details will be pointed out that matter and defects or weakness will be described and visualized.

With the BPM, the actual process is collected, visualized and analyzed. Target processes can be also developed together. With the Big Picture of the process on brown paper all becomes clear for those involved and the tricky parts of the process are worked out and presented.

Based on the findings of the initial workshop the results are taken to the next level of process modeling. This includes the definition of the target process, implementation of automated workflows and process optimizations.

The process representation on the wall covered with brown paper can contain the following process characteristics:

1. What triggers and ends the process

2. Single process steps

3. Events 

4. Suppliers and customers

5. KPIs can be important for the process flow (Defect rates, process times, etc.)

6. Process Input such as raw material, semi finished goods, pre-assemblies, toolings but also information and data such as reports or KPIs

7. Output and outcome such as finished goods or services

8. Employees actually executing process steps in the process flow

9. Employees that have an indirect influence on the process

10. Other teams or departments related to the process

11. and so on…

For the upcoming analysis following parts of the brown paper are discussed, additional information added and highlighted:

1. Critical activities that have a direct impact on the final result of the process including costs and time

2. Missing or missleading inputs such as information or defective parts

3. Wrong process steps that are distort the result

4. Incorrect or missing process step outputs

5. All potential to improve the process e.g. Kaizen activities marked with a KAIZEN flash

Which of these characteristics finally are listed in the process representation is up to the team as well as the weighting of each. This will then prioritize the potentials identified and when they will be tackled.

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.

Target Agreement

A Target Agreement is a management technique where employees and management together reach an agreement on how to achieve the organization’s targets. It thereby consists of two key elements:

1. The TARGET

2. and the ACTIONS

Targeted state including the measures taken to achieve the set targets. Think about KPIs - a combination of quantitative measurable targets and an action plan following the PDCA.

Visual Management

Hej there! Great to have you back! In this article we want to show how visual management can help you to keep track in daily operations.

Generally speaking Lean Management can be seen as a clearly organized workflow that defines the way your organization should work following given principles. Above all principles existing lies to avoid waste in any kind following the 5S Principle as foundation: 1 Sort out 2 Set in order 3 Shine 4 Standardize 5 Sustain.

For a clear visualization of running process in your organization, cleanliness and orderliness is the main part of it. Clarity of your processes on the shop floor is the foundation for all lean manufacturing activities. Having the clarity the implementation and maintaining of visual management methods will guide you to a real state of flow.

In the following we want to describe key basic visual management elements that every production, following the lean principles, should have.

Boards, Notes, Infographics, Brochures and even Movies

Don’t panic and try to explain all those Japanese words it works well without being too technical. Many instruments of the Lean Manufacturing Methodology are very useful to raise the awareness of your employees about lean management. Once implemented and continuously driven by the management the incentives are there to drive daily improvement measures.

The target with visual management and those methods are all the same:

1. Create transparency

2. Visual representation of procedures processes and services

3. Making problems (or bottlenecks) visible

Kanban Boards

Kanban can be literally translated as “card” in the context of a production system. No matter what processes you have, it all starts with a customer’s order. The Kanban card is then used to inform upstream processes about the need of materials, pre-assemblies or process steps. This automatically leads to a cycle that triggers itself through the complete value creation chain.

This is the so called pull principle the advantage if this principle is that, in best case, you have no work in progress which means you have no stock of semi finished goods built up, because only what the following process steps need is produced.

A3 Reports

The term A3 Report comes simply from the size of paper which is used for the documentation of the report. The structure itself follows the PDCA methodology.

The A3 Report is the representation of a problem to be solved. In this case the responsible person from the quality department takes the A3 Report, starts the problem solving actions and follows a systematic structure that makes it possible to describe the effects that are currently leading to a deviation from the standard. Using the A3 only makes sense when you don’t know the root cause yet. If you already know the root cause don’t waste your time. Fix it and go back to normal.

Andon: Lean management with boards and ripcords.

Andon again a Japanese word meaning “lantern”, at least in the context with lean manufacturing. It is a visual aid that is there to draw attention to problems on the shop floor when machines or processes are causing defects or simply stop working.

You might think you have seen them all by walking through production and seeing all those PLC signal lamps indicating green or red, but there is so much more. Just have a look at the Andon article.

Just want to name administration, maybe there is nothing to indicate, but when you think about a document that is needed in a different department, waiting for this is one of the TIMWOODS MUDA. The time waiting is probably the best indicator to start with lean admin activities.

Andon Cords - Please pull the rip cord in an emergency!

Andon Cords are rip cords or a simple button straight at the operation on the shop floor that gives the operator in the process the possibility to instantly stop the line when problems or defects occur.

Andon Boards

Andon Boards are displays or nowadays mainly TV screens that are showing the actual status of the manufacturing line e.g. PPM, down times, etc. Typically it is automatically feeded by the machineries of the production line. With the standard defined color indication everyone sees if they are doing great or not so great. In the second case an automated alert to supervisors or maintenance is triggered.

You see there are many possibilities, but the target is always the same. One hint at the end: Make your boards, infographics or brochures as simple as possible! (or just use mine ;))
WHY? As with processes > it is only a good process when you can’t cut anything more away from it. In other words: What is the value you get from something that nobody understands?

If you take the principle of visual management seriously it will help you to bring all processes in your organization to live.

Set up time reduction

First things first. In order to reduce set-up time the set-up process itself must be observed and analyzed (e.g. by using the EMIPS - eliminate, minimize, integrate, parallelize or synchronize - methodology).

After you have analyzed the process make sure you write down all identified kinds of waste. Try to define the ideal state of the new procedure. Only after verification through testing of the new procedure make it a standard and implement it in your TPM framework. By doing so your operators are now responsible for the new set-up procedure, assumed that your operators are properly trained.

The whole focus on set-up time reduction comes from the customer requirements to manufacture a higher variety of goods in smaller batches. In order to meet those requirements set-up or change over must be kept as short as possible.

But let us go a little bit more into the details.

The pure set-up time is defined as the time needed to change from the last part of a batch to the first part of the following batch.

The set-up includes all activities needed, preparation, action on side and adjustments needed. By doing this you automatically differentiate between so called “external” and “internal” activities.

The following steps should help you to make it easier to reduce set-up times

1 Classify each part of the set-up process to either internal or external. Internal steps are those that only can be done while the production is or has to be inactive. External steps are done without interrupting production.

2 Convert internal steps to external ones. The whole idea is to minimize the time needed shutting down operations. This is why we want to take internal steps out as much as possible.

3 Reduce the time needed for the remaining internal steps. There are for sure some steps you can not take out, for those the manufacturing has to be stopped. The whole focus is now on this internal steps and how to reduce them to an absolute minimum. Here the SMED methodology (Single Minute Exchange of a Die) can help. Too find out more you can read here.

4 Eliminate adjustments. Last but not least try to get stable process parameters. With effective process control in place you can get rid off adjustment activities.

A Pareto Diagram can be useful to prioritize the setup time reduction activities. Don’t start everywhere at the same time! Start with the biggest loss and you will see over the time how it will change. It also gives you a great opportunity to see the progress that you are making on set-up time reduction.

Waste

Waste (MUDA)

Waste or MUDA is the opposite of value creation. Waste describes all non-value-adding activities the customers are not willing to pay for. The two main categories are obvious and hidden waste. While obvious waste can be eliminated, hidden waste can only be minimized.

When talking about waste there is no way around the 7 kinds of waste according to Taiichi Ohno most known in the lean world as TIMWOOD. Feel free to read the complete article on TIMWOOD(S) - yes you are right - where is this S coming from… keep on reading and you will see.

The 7(8) kinds of waste:

1. T = Transportation

2. I = Inventory

3. M = Motion

4. W = Waiting

5. O = Overproduction

6. O = Overprocessing or - engineering

7. D = Defects

8. S = Unutilized stuff

It is important to be aware of these kinds of waste in the list. But overproduction is the worst and typically initiates the other types of waste.

To read more in detail about TIMWOOD go here.

Production Diary

With the help of a production diary, based on a pre-defined shift planning all other functions and outcomes are planned and tracked. This includes the mgmt. team as well as all supporting functions. In order that everyone is aware about the upcoming week the production diary is openly displayed on the shop floor. With the production diary and the pre-set structure of daily meetings of the shop floor mgmt. all daily activities are carried out. Best known part is e.g. Gemba Walks and the included problem solving activities e.g. A3 or just confirming that all processes run as planned.

With this big part of shop floor mgmt. it is clear that all regular meetings planned along the production diary are set. All other unplanned activities or extra meetings need to be conducted respecting the fixed schedule of the production diary.