LANGUAGE OF LEAN
Value Creation
What the customer is willing to pay for.
The exact opposite of waste is value creation. That is what you aim for with all lean activities. Value creation are all activities that create or add value to your service or product and the customers are willing to pay for. When a service or product has been perceived or appraised to fulfill a customer need or desire as defined, the product or service may be said to have value or worth. Components of value may include quality, utility, functionality, capacity, aesthetics, timeliness or availability, price, etc.
Milkrun
The Milkrun is the preset intralogistics concept to bring raw material, semi finished and finished goods to the place they belong at the time they are needed.
The Milkrun is the preset intralogistics concept to bring raw material, semi finished and finished goods to the place they belong at the time they are needed. The Mikrun is implemented based on existing consumption values, an internal supply cycle is defined in which deliveries on fixed routes are installed with specific times.
Based on these current consumption values, a logistic supply cycle is defined wherein raw material, semi and finished goods are delivered and picked up by a fixed route at a specific time. With this you will also optimize your intralogistics concept in general taking on action for a Milkrun concept.
So what is the idea behind the Milkrun concept.
The term Milkrun comes from the traditional milkman that was supplying milk to homes on a fixed route in a specific time. The milk delivery was based on the consumption of the households, by this only the amount of milk needed was delivered. Empty bottles have been picked up at the same time and brought back to the distribution center. So quite simple full bottle(s) delivered, empty bottle(s) picked up.
The cross company Milkrun
Nowadays the material management got a little bit more complex. Speaking in the external way of logistics a Milkrun is a supplier concept where customers ask for one or more shipping companies to manage different suppliers or customers on after the other in the form of a shipping cycle. In this way, goods and empty containers can be delivered and received at the same time without the need of centralization. The main goal is to have as less as possible empty trucks and at the same time being under full control of external material flow. Tours and deadlines are the guard rails on these cycles, reducing storage space is the nice to have side effect.
The benefits of the Milkrun concept
With installing a Milkrun you will be able to reduce shipping times, processing processes and therefore handling costs.
Just in Time and Just in Sequence deliveries are possible
Your planning is more structured as you will have fixed time frames
Less capital needed due to decreasing inventory/stock/WIP
You can integrate waste and empty container management
Increase of sustainability due to ecologically smarter transportation routes
Of course there are also some challenges with the Milkrun concept
Time consuming planning as quantity, duration, replenishment time, etc. needs to be considered
Processes and products need constant supply
Outbound Milkruns can be delayed by traffic or weather conditions
Economically relevant for larger business or higher demands of goods
Reliable supplier for products and transport needed
One last note for the internal Milkrun
Inbound the concept can be used in both ways, intralogistics and manufacturing. E.g. certain raw materials or semi-finished goods can be delivered on a regular basis to predefined workstations where the consumption can simply calculated. And on the fixed route the Mizusumashi can collect empty container and waste from production. This reduces internal ways of operators and guarantees a continuous supply of workstations. The next level would be to interlink all workstations or cells with your internal supply cycles to create an intralogistics flow, reducing the manual replenishment work. To find out what the Mizusumashi is just go here. In short: he/she is the guy who supllies goods on the shop floor in a structured process.
8D
8D Reports are used to communicate results of taken problem solving steps to the customer in a standard format.
The so called “8D”-Report is a document resulting from an 8D process which is part of a structured problem solving process in quality management if there are quality issues between customer and supplier.
8D represents the eight mandatory process steps that are performed when processing a claim to get to the root of the cause. The report details the nature of the claim, responsibilities, and actions taken to prevent the problem from reoccurring:
The 8D methodology is intended to ensure that complaints are dealt with systematically. Consistent documentation of the associated troubleshooting steps and a high level of fact orientation ensure that errors in the product or system are thoroughly investigated and thus permanently corrected instead of just solving the problem.
Application
These eight steps are performed for the 8D report:
1 Define a team to solve the problem
A team familiar with the process and/or the product is formed. They analyze the problem, take corrective actions, and monitor the effectiveness.
2 Describe the problem
In this step, the problem is defined as precisely as possible and the root cause of the problem is identified.
3 Containment action
These measures are intended to resolve the problem quickly and limit the damage until a permanent solution is found.
4 Root cause analysis
You probably haven’t found the real root cause during step 2 therefor various tests and experiments are used during step 4 to search for the real root cause of the error and the most likely causes are identified. This is intended to ensure that similar errors do not occur again.
5 Planning of counter measures
It then determines the means by which the causes of the problem can be eliminated. It is tested whether these measures solve the problem efficiently and no undesired side effects occur.
6 Check effectiveness of counter measures
Once the corrective actions have been carried out successfully, the immediate actions must be stopped. In the automotive industry, only process-improving measures are regarded as permissible shutdown measures.
7 Prevent recurrence of error
To ensure that such an error does not happen again, the team must initiate and monitor preventive measures. In the automotive and aerospace industries, manufacturers must use the FMEA method to assess the risks identified during root cause analysis. .Also, quality management system rules and procedures may need to be adjusted.
8 Appreciation of team performance and Lessons Learned
In a last step, the achievements of the team are recognized and experiences are exchanged.
Mentee
The mentee is the student of the mentor.
The mentee is the student of the mentor.
The term mentoring describes the development process in an organization where an experienced person (mentor) passes on his/her knowledge and skills on to a new/unexperienced person (mentee).
The overall aim of a mentoring program is to develop and promote the mentee’s personal and professional growth within or outside your organization.
As described the mentor refers to the role of a personal trainer whose experience supports the development of the mentee. There is also the cross-mentoring approach out there where experienced managers from different departments or companies and their high potentials (mentees) come together for tandems. Cross Mentoring usually is an externally organized program in which the tandems are formed in cross-functional and cross-industry teams.
Minimarket Principle
The minimarket is the smallest version of a supermarket on the shop floor.
The minimarket is the smallest version of a supermarket. The minimarket is typically a small area where operators can take parts from located on the shop floor. Typically C-Parts which are refilled following the Kanban/2-Bin principle. The minimarket is filled by the milkrun which pulls material from the supermarket.
Shop Floor Management
Shop Floor Management supports the consistent development of on-site processes and procedures.
Shop Floor Management (SFM) helps the constant improvement of processes and procedures on the shop floor. The presence of mgmt. level staffing in manufacturing and their recognition on deviations from requirements dramatically hastens decision-making and consequences with inside the on the spot implementation of solutions.
Shop Floor Management really defines control duties and calls for unique modes of conduct. Management is supported via way of means of the utility of unique equipment. Five Shop Floor Management-associated duties are performed on the Shop Floor and are as follows:
Install regular communication
Confirm processes
Empower/Qualify staff
Make it part of the continuous improvement process (CIP)
Conduct problem solving in a structured approach
SFM emphasizes behavior that encourages your staff to resolve issues inside their scope of capabilities and strive for continuous improvement.
For example, management maintains its remarks to a minimum, handiest makes binding commitments, offers however additionally accepts feedback, profits its personal attitude of a situation, lets in errors in mastering situations, does now no longer lay blame and places in vicinity wondering techniques. SFM tools help the effectiveness of SFMgmt. e.g.:
Production diary, KPI charts, hassle-fixing sheet, T-cards
Shopfloor Management
What is Shopfloor Management?
Shopfloor Management
Basic components of shop floor mgmt
Clear management roles and responsibilities
Regular communication (Gemba Walks)
Key Performance Indicators
Problem-solving techniques
Visualization
Some explanation of the basics of operational leadership in shop floor mgmt. you organization will for sure profit from clear leadership roles and tasks. Your employees want near help for independent problem solving. Large control gaps, wherein the direct touch among the supervisor and his personnel and associates is reduced, normally do now no longer show themselves.
The Japanese version of a classical institution leader (Hancho), with a totally small management margin and occasional willpower of the personnel, regularly does now no longer suit into the qualified operator in organizations. The excessive qualification of operators is a vital aggressive thing in industry. In order to make suitable use of those capabilities with inside the processes, disciplinary management has the mission of the use of SMART´en to acquire desires at the same time as keeping room for manoeuvre and keeping a very good stability among needs and help.
Managers at the first mgmt. level do now no longer meet those demanding situations via time control seminars, however via greater practical duties and requirement profiles. Examine whether or not it's far important to introduce extra technical management as an alleviation for the first mgmt. level to your organization (CIP coordinator, Kaizen Manager, Process Champion). This feature can stand up from the present functions.
Jointly have a look at the opportunities of dispensing distinctive information regions (5S, set-up time reduction, CIP etc.) with inside the assembly teams expand collectively with you a brand new blending answer specially appropriate for you.
Regular communication
Regular communication is the structured approach to create a framework on a regular basis for opportunities. In this rhythm issues can be carried out and discussed across the management levels. Regular communication is an integral part of the day to day work of all players in your organization.
This way of communication, no matter if you call it huddles, stand up meetings, shop floor meetings, etc. guarantees a continuous flow of information without loss of information itself as it is fast and recurring. A subject matter-associated exchange takes place where employees are enabled to independently define measures, hassle answers and pointers for development and to remedy conflicts as quick as possible.
The continuous flow of information between the departments throughout the complete organization is guaranteed through these regular and short meetings. One positive side effect is that with regular communication you will also calm down daily operations management by clearly separating the topics (e.g. operative commercial enterprise, 5S, CIP, etc.). It is vital that these regular meetings are performed continuously and adhered to in order that normal communique will become independent.
Key Performance Indicators
Regular communication can only exist if the information inside these meetings are defined and standardized. The standard of these meetings is not only the agenda but more important the Key Performance Indicators (KPI). The target of working with KPIs is to have a framework for employees that provides information on the achievement of objectives. When you want to successfully control your production be aware that KPIs are broken down in such a way that they have a direct connection to the operators or designated workstation. Only then they are becoming a real instrument of control by which teams and departments can be measured. The positive thing about KPIs is that with the continuous improvement process paired with a structured problem solving approach all employees will see the effect of implemented measures on the KPIs. To get the full information on KPIs go here.
Problem Solving
Problem solving isn’t always as simple as it sounds, but it clearly shows the effectiveness of clear shop floor management. There are plenty of problem solving methods out there (Ishikawa, 5 Why, A3, Root Cause Analysis, just to name a few) and lean methods (e.g. 5S, set-up time reduction, Hejunka etc.) are well known in the manufacturing industry. But these methods are there to help your organization to deal with more complex issues, this means that they are not really useful for operators that are dealing with daily production but more for a problem solving team consisting of employees from different departments.
To tackle problem solving the right and sustainable way the role of a Kaizen Manager should be installed in your organization in order to steer the problem solving and continuous improvement process. Kaizen Manager help you to get out of this “fire fighting mode” with a sustainable CIP culture.
Visualization
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.
There are different ways for visualization out there (find a deeper insight here)
The target with visual management and those methods are all the same:
Create transparency
Visual representation of procedures processes and services
Making problems (or bottlenecks) visible
All documents and information are daily updated and right at the place of action clearly visualized for everybody in the organization (e.g. blackboards, Workflow Boards, Shop Floor Boards, Andon Boards, etc.).
Following the PDCA cycle the status of problem solving activities are recorded and visualized. KPIs on different topics are installed and tracked and so on. Important is only that all this information follows also a clear structure and has its own spot on the shop floor (e.g. a shop floor corner). Visualization starts at the workplace of a operator and ends at the management board of the plant manager or owner of the organization.
But in the end it always supports the Continuous Improvement Process in order to bring your organization the next level or simply to overachieve your customers expectations. To get a full insight in Visual Management, read the full article here.
Sensei
In the lean world a sensei is a lean production expert that transfers his knowledge as mentor on to his mentees.
In the lean world a sensei is a lean production expert that transfers his knowledge as mentor on to his mentees.
To be successful with a Sensei it's been revealed that you need to start at the top and find a sensei to work with in order to engage all employees on the shop floor. As Lean activities reach industrial maturity, the role of the Sensei remains a gray area.
It is obvious that your organization needs a Sensei to adapt and successfully implement Lean principles. Therefore, the Sensei position will be your bottleneck in Lean implementation. In every Lean transformation process, one learns at some point that the success of a company consists in learning to learn.
As a little guide, consider the following three effects:
Learning curve: The learning curve of each department and initiative is tracked by their manager in the organization rather than having to compare it to established best practices across your organization.
Spillover: Effective learning practices are passed through hands-on, experiential learning from person to person within your organization rather than through predetermined processes.
Value-Based: Lean as a whole provides a learning framework that aims to balance customer satisfaction (which leads to organizational success) with employee satisfaction (and personal fulfillment) through a set of principles and tools aimed at discovering how MUDA can be reduced and value can be increased . Adding activities in all areas of the organization.
This approach has both sides of the medal, but the weak and the strength are lying in the learning path of each employee. Following the lean principles, every employee is expected to discover:
What do I need to learn: What is my personal challenge in order to better align my work with customer value and thus sustainable and profitable growth with the satisfaction of all my colleagues to reconcile.
Learning from the shop floor: The learning style is deeply embedded in daily operations. Employees are learning results from their support of learning activities at all levels. Because all employees solve their problems or show initiative, everyone is expected to interpret the conclusions of others and find a way to adopt the solutions to their own work. It is the responsibility of the Sensei to support its learners in this learning phase. Learning by doing is the correct way to describe it.
Create a learning environment for your employees: Learning on the job is never easy, especially in today's business climate. Consequently, one of the key functions of a Sensei in the Lean perspective is to create a visual environment for employees where it is easier to recognize than normal and where opportunities for continuous improvement in small steps (Kaizen in Lean jargon) are clearly visible Everyone. A learning environment also means a stable affective environment where mistakes are not punished but seen as a source of learning.
The Sensei is not a boss at all. He or She has no power and can only suggest. The Sensei's task is to help all employees in your organization to develop their own lean thinking through practical exercises in workshops. The Sensei's job is to convince middle managers that solving today's problems will, in the long run, prevent tomorrow's fires.
The essence of Lean is learning while solving problems. This is a difficult task at the best of times, and indeed every person in your organization must be taught to learn how to learn. In relation to managers, the Sensei has five main roles of support:
Finding problems
Tackling problems
Creating problems
Solving problems
And finally learnings from problems
"If you have no problems, you are dead". is a classic lean principle. Perhaps the most important part of Lean's problem-solving learning approach is the initial problem-finding phase. Lean's approach to business is to capitalize on every problem.
“Sometimes you WIN sometimes you LEARN!”
5M Method
5M Method is an other way of describing an ISHIKAWA Diagram.
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
One-piece-flow is a principle to cut production lead times.
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 is the Japanese word for automation. It describes a form of automation where machinery stops by itself when defects are detected and notifies humans to clarify what is going wrong.
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
The mother of all lean terms. The change for good.
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””
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 for “across everywhere”.
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.
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
In the language of Lean the term supermarket describes a ways of an independent production control.
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.
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
The concept of "Quick Response Manufacturing" (QRM) describes a corporate philosophy which propagates the orientation towards the reduction of lead times as the primary goal of all corporate decisions.
“ 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:
Time is crucial
Adaptation of organizational structures
Organizational-wide application
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.
Change to cell manufacturing
Group liability rather than hierarchical control
Broadly educated workers > Qualification Matrix
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:
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.
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.
Stop the line authority
Stop the line authority describes the ability or permission of operators to stop the process when problems occur. By doing so it is prevented that defective parts are passed on the downstream process steps.
Stop the line authority describes the ability or permission of operators to stop the process when a deviation or problem occurs. By doing so it is prevented that defective parts are passed on the downstream process steps.
A typical example are so called “Andon cords“ that can be pulled to immediately stop the process and inform the supervisor. To read more about Andon itself go here.
When you are in the lean world you might have come across the famous Toyota quality control mechanism “Andon Cord”. The cord is a simple tool to alert others of deviations or problems in the production line, at Toyota everyone has the authority to pull the cord. By pulling the cord almost instantly production will stop and give the alert to responsible supervisors that there is a crucial issue that needs immediate action. Following the lean principles and shop floor structure, a supervisor would step up and help the operator reviewing the deviation of product or process and define counter measures. When doing so and working with an A3 Problem Solving approach, the supervisor is coaching through the problem solving process and shares with others the outcome or lessons learned on how to prevent this failure of happening again.
In Lean Manufacturing - pulling the Andon Cord is emphasized to all operators. The target is simply to block all defective parts from leaving the company and reaching the customer. At the same time it creates the opportunity to improve your processes to prevent future defects.
NEXT STEP: GO GEMBA
Instead of explaining you the complete principle of Gemba Walks here the short version. But if you want to learn more about Gemba Walks go here.
You can discuss problems as much as you want but when you don’t get yourself to see it, it is worthless. This is where the Gemba Walk comes in the game. Gemba is a Japanese term and stands for “the place where it actually happens”. This can be everywhere and everything in the process chain, but by pulling the Andon Cord the place is defined.
Key of Gemba is not to talk in wild theories or totally abstract about problems, but to have a look where it occurs and discuss them on site (looking at the process in the real world, get rid of unnecessary power points and excel sheets! Nobody cares anyway!) Too often we want to believe the statement of an “expert” and forget about it instead of going there and have a look ourselves in oder to gain a better understanding of the problem and make up our own opinion.
VISUALIZATION
When you are at the place of action, make sure to bring an A3 with you. Make sure that you describe the process properly and the failure that occurred.
In the lean manufacturing world the best known use case of the A3 report is the problem solving report. 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.
Key Questions are with Gemba Walks and A3:
What should happen?
What is happening?
Explain why!
The A3 Report is foldable and can be then placed at the line or the work station. This is a great and a standardized tool to visualize that a problem is known and on the watch list.
LAST BUT NOT LEAST - STOP THE LINE (JIDOKA)
Now it is time to tackle the hardest part for all players in your organization: STOP THE LINE. In Lean Management, the original term is the Japanese word JIDOKA. This concept is driven by the maxim to have the best quality of goods and to bring the potentials out of the processes or products through continuous improvement. You have to stop all production when a deviation occurs and implement effective counter measures before restarting the line.
On the first view stopping the line might sound hard and insane, as you will stop all value adding activities and actually stop shipping goods. But think about it again. Failing to solve problems when they occur will force you to pile up your inventory with non-conforming parts that will need rework before shipping. You will bind additional resources in space and workers and by that you will burn money. Finally it will keep your organization away to improve and move forward with the developments of the market and with your competitors.
This is exactly the point where the principle of continuous improvement comes in the game, where you see all deviation as an opportunity of improvement.
To practice and learn more about continuous improvement and the CIP methodology, go ahead and read the CIP article here.
If you can’t measure you can’t control
Make sure that you have an organization wide monitoring in place which provides you with all KPIs necessary to run your business. Line stops and counter measures will be part of the tracking process in order to understand if the counter measures are effective, gain a better understanding of the processes and documentation of the improvement process itself.
What is the deviation?
What are the measures implement?
Are the counter measures effective?
You see there is again the logic of PDCA in the continuous improvement process.
All this information will be than part of the Shop Floor Mgmt. to get the information throughout the complete organization and to make sure that all players have the same understanding in what direction your organization is heading.
Policy Development Plan
The Policy Development Action Plan is a form used by the department working on Policy Development objectives.
The Policy Development Action Plan is a form used by the department working on Policy Development objectives. It supports detailing specific activities required for the long term success, reaching milestones, defines responsibilities and deadlines. All team members are listed with objective definitions, meeting dates and mgmt. support owners.
Smoothed Production
Smoothed production 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.
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
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
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
Production plan fulfillment as a part of planned output realization (source: Information board at production area as part of shop floor mgt)
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)
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)
Special trips for the respective assembly area as a truthful Dollar figure
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
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