Ways to make lean work for you

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Lessons from the Lean Transformation of a Small Manufacturing CompanyLean is often considered as a strategy for large corporations, but in reality Lean is better suited for small businesses and even non-manufacturing operations. Here are 3 ways to make Lean work for you regardless of your size or industry.Vivek Naik


<ul><li> 1. Ways to Make Lean Work for You L e s s o n s L e a r n e d T r a n s f o r m in g aSmall Manufacturing Company Vivek E. Naik 2012 International Conference onLEAN &amp; SIX SIGMA</li></ul> <p> 2. A Story of a Small CompanyWe will lose one of our largest customerif we dont ship this order on time SAID THE BUSINESS OWNER 3. The Problem Most of the customers were upset about the 20+ day long lead time. Loosing this customer could mean a significant loss for the company 4. Current State On That Day This company is a small Manufacturing company Business had grown from small start to full-fledgedmanufacturing operations The initial growth was handled by addition of moreand more unskilled labor They expedited orders when customers screamed forit 5. Did They try to improve the processes? They just did not have time for it Often everyone was diverted to expedite one order Same thing happened that day They tried to get this one order out within 3 days 6. But Something was different this time? Stakes were high They could not afford to lose this customer It made them wonder Do we really dont have time to change the way weoperate 7. The Result They realized there was no option but to change in order to survive and grow This was their Burning Platform 8. Chaotic shop floorPeople were unaware ofthe Standard ProcessWithout Standardprocess it wasimpossible to get anyCycle TimesNo proper location forparts Our Platform is Burning but WhereAll this lead to lotwastedo We Go? 9. No Access to Needed Information There was no data about production, Open orders,Quality, delivery Production was not able to know: How many and what orders are open? Which orders are overdue? What needed to be shipped that day? Without this stake in the sand we were not sure where to go 10. So what was the answer?Lean Someone suggested that Principles of Lean Manufacturing will provide the solution 11. So isnt Lean only for big guys? They believed that lean could not be applied in theircase But, in reality, Lean is better suited for smallerbusiness and not necessarily manufacturingoperations 12. Why Small isGood? It is easier to change the course of a boat than to move an iceberg Anonymous 13. Why Small is Good? Bigger organizations have too much inertia eventhough they may have more resources at theirdisposal A smaller organization, on the other hand, is muchmore flexible and responsive to change Small organizations have few levels of management This helps to avoid problems of miscommunicationbecause the head and the tail are not very far away 14. Constraints of the Small Company Small organization cannot spend millions or stop everything to start a formal program, but. Is that Lean in true essence? 15. What is Lean in True Essence? Lean has to start organically within the organization You dont need experts to start lean though it may behelpful You can learn lean principles by systematic andreligious application of common sense Everyone has to go through the journey to practice,Learn and apply lean in a way that is suitable to theirunique process 16. What did they do? They did not stop the lines to hold the events. They just did improvements when the lines weredown due to broken machine or delay in gettingparts They started small and thought big, from just oneworkstation to entire shop floor They trained our people to solve their own problems 17. Their Achievement They have tremendously improved their delivery from20+ days to 97%+ of the orders shipping within 3 days This is story which many people can relate to especially ifyou are in small manufacturing company Success may vary from place to place We will explore the reason why and how to get startedusing some of the lessons I learned working for smallcompany 18. Lessons Learned Along theWayHOW CAN YOU MAKE LEAN WORK FOR YOU? 19. You Dont Need To Solve AllProblems To Be SuccessfulLESSON 1 20. The Assumptions We need a roadmap to apply lean with every detailplanned out from beginning to the end We have to solve each and every problem that is outthere The thought of solving so many problems at once is over whelming and stops many before they even start 21. Breaking the problemsdown and tackling onlythe importantproblems is necessary(80/20)Dont try to solveeverybodys problemyourselfOnly Few need creativeskill to solveThere is a big chunk ofproblems at the bottomAll Problems are Not the Sameof the pyramid 22. How do You Solve Such a Big Chunk of Problems atthe Bottom of the Pyramid? Train and empower all your people to solve their ownproblems When you allow the people who run the process toalso do the improvements, they own the change This is helpful in sustaining the change Also the synergistic effect of everyone solving theproblems gives a tremendous momentum to yourchange process 23. What to RememberOnly few important problems need to be tackled to makea big impact. If you tackle the top 20% of issues, it willhelp you achieve 80% of the solution.Problems are like a pyramid theres a huge base ofsimple problems which can be easily resolved and smallset complicated problem which needs creative problemsolving skills. 24. Start By "Cleaning House" And Standardizing Processes LESSON 2 25. Clean Work Place Is Efficient and Safe Having a place for everything, and getting rid ofunnecessary tools and parts, makes it easy to find thenecessary tools and parts This helps you to work more efficiently Another advantage is that you immediately know ifanything is missing from its place 26. 5S The word 5S stands for Sort, Straighten, Sweep,Standardize and Sustain 5S could be a good starting point of any leantransformation and forms a catalyst for a culture ofchange Due to the very visible results it makes the process ofbuy-in easy for both the shop floor personnel andmanagement 27. Do what you preachLearn the process beforeteaching othersFor everyone theirworkspace is special andmost would not like tochange itIt is humbling to realizehow difficult it is to bechanged than to changeothersStart with your own personalworkplace 28. Choosing the rightpeople guaranteessuccess and creating theright first impressionThis initial team willhelp in promoting andspreading the thingslearnedDont make it a projectAllow things to be doneduring routine timeDo it in steps to allowpeople to getcomfortable and stablein their new Choose the team of people who areenvironment beforemoving to next stepmost supportive to the change 29. What to RememberSome of the key points of how 5S helps in laying down thefoundation of Lean Transformation are: Standardization of process provides a stable base for incremental improvement Visible results helps boost morale of the people who then take pride working in the area It is an enabler of Continuous Improvement culture Prepares the workplace and people for implementing other Lean tools 30. Motivation Gets You StartedBut Habit Keeps You GoingLESSON 3 31. Why Sustaining Lean is Difficult? Lean transformation works beautifully in thebeginning but many fail in sustaining the efforts This is not the fault of the people involved but theway traditional management works 32. Why Traditional Management Fail Traditional management is results driven It is mostly concerned with the end result and notthe means to get there This leads malpractices like expediting orders, overproduction, and excess inventory 33. Lean Management Only by support and proper leadership/guidance youcan drive your people to continuously improve theprocesses that add value to the customer. The management system that helps you to achievethis is a Lean Management system. Lean Management system uses various tools toconnect the purpose (Providing value to customer) tothe process and people. 34. Lean ManagementElements of Lean Management: Leader Standard WorkLeader Standard Work sustains the systems and integrates the changes made during the transformation process Daily Accountability Visual Controls Visual Control and Daily Accountability helps keep theprocess and people aligned to solve problems as they arise Discipline Discipline of the leader ensures that standard work isfollowed and the whole system works coherentlyFrom: Creating Lean Culture by David Mann 35. What to RememberThe elements of lean management, helps the leader to beaccountable to the process by religiously following theleader standard work and discipline to the point theybecome a habit.This change in habits is essential for mental transformationrequired in a lean manager 36. Continuing the JourneyCONTINUING THE CONTINUOUS IMPROVEMENT 37. Continuous Learning Continuous learning is essential for continuousimprovement To learn we need to experiment We need to accept failures in our trials as means to learnsomething new Raise the bar with every improvement. What was acceptable yesterday may be the focus forimprovement today and tomorrow may need furtherwork again.It cannot be Continuous Improvement if we stop doing it! 38. By three methods we may learn wisdom:Wisdom First, by reflection, which is noblest; second, by imitation, which is easiest; and third by experience, which is the bitterest. Confucius Reflecting and knowing why is critical Copying is easy but you cannot learn unless you try it yourself may be fail many times before you get it right 39. The Endhttp://twitter.com/viveknaik Follow my Journey atMy Lean Transformation Bloghttp://viveknaik.netviveknaik@viveknaik.net</p>