Saturday, January 30, 2010

There was a recent post on the WSJ that suggested the Lean Manufaturing back fired at Toyota. "How Lean Manufacturing Can Backfire" Here is the link thhttp://online.wsj.com/article/SB10001424052748704343104575032910217257240.htmle

There is a saying in Christian circles “Christians are not perfect they are just forgiven” I believe the same applies to the originator of the Toyota production system or Lean Manufacturing. Toyota is not perfect but rather they are in pursuit of perfection.

I believe that the author of article was smart in picking the title knowing it would spark a discussion.

In any case lean did not cause the gas peddle to stick what we have is a process failure or a missing step. The basic principles of lean are the elimination of waste not the elimination of quality or safety. What might have been missed is the introduction of possible variation of failures that could have caused the problem. A lean six sigma approach would review the possible failure modes and work to reduce variation. From what I know of the failure it seems that corrosion is the return to idle mechanism caused the gas peddle to stick at the accelerated position. With this understanding we can learn to test for potential failures by exposing the components to multiple environmental conditions thus reducing potential failures.

Lean is also about learning and I am sure Toyota will learn a great deal from this problem that they can apply to future products.

Friday, January 15, 2010

S&OP another Tool in the Lean Manufacturing Toolbox

S&OP another Tool in the Lean Manufacturing Toolbox

Lean is about continuous improvement, elimination of waste and sustainability by establishing process’ and standards. The S&OP process is a “lean tool” in the form of a process that will help reduce and control raw material & finished goods inventory, reduce or eliminate unnecessary overtime and reduce lead time. All of these factors, if not controlled or go unchecked will erode our bottom line.

The S&OP process is not a small side project it is a vital part of the business because it involves every aspect of our business, from Sales, Finance, HR, Manufacturing, Supply and Service and will chart the course of action for the organization.

Without a direct mandate from the President & CEO that this is not an option but a mandate that everyone involved is required to participate and contribute. If this is just an exercise or people feel they have the option to not contribute or get involved, it will die before you even start.

As an organization if we reflect back and ask ourselves how much more could we have added to the bottom line if we had managed our sales, labor and inventory better I believe organizations can add significant increases to the bottom line.

Product Design Value Stream Map Procedure

Product Design Value Stream Map Procedure

A product design value stream map process is a highly efficient way to apply the power of value stream mapping to the product development process or product redesign. This is one to two-day “process kaizen” event that allows a team to focus on a specific aspect of the product development process or redesign of a current product for dramatic cost improvement.
The Product Design VSM enables dramatic manufacturing cost reduction. The emphasis is on team activities that can create breakthroughs in material, labor, and overhead cost, while maintaining the highest quality and value for customers. This is an integrated approach to the application of waste-eliminating tools within a single team, or an entire organization.
Participants will review the current structural design elements of the product by creating a current state value stream map, analyze it for potential improvement using the teams cross functional knowledge of the product, and finally generate a future state map to guide your team's improvement efforts. This hands-on process takes the team from the a conference room to the shop floor where the team will review all aspect of the current design with the objective of using VSM techniques to systematically drive out waste from either current equipment or new concept development to successful product launch.
Primary Objective –
1. Identify non-value-added design elements or the opportunity for material changes that reduce cost through material or process changes.
2. Use a step-by-step method for prioritizing improvement opportunities, based on a "current state" value stream map.
3. Create a "future state" map that encompasses all the identified improvements.
4. Deploy the improvement task and assign a champion for each task that will enable an on-going process improvement initiative.
Who Should be Part of the Cross Functional Team -

Product-line managers, team leaders, operations managers, sales, purchasing, process owners, design engineers, key supplying partners and all others with product development responsibilities.
This process will take into account customer priorities and requirements as well as market driven design elements. The team can review the structure and design through the VSM process. The process will expose the non value added waste without affecting safety, quality, and reliability along with any trademark appearances.

Tuesday, January 12, 2010

Servant Leadership

Servant Leadership

Continuous improvement or lean tools are important foundational strategies, but they can't deliver effective or sustainable results unless we establish an organization that promotes a continuous learning environment. This requires leaders with a teachable spirit or leaders that want to create a safe environment that promotes problem solving through experimentation.

Creating this kind of environment in an organization changes the role of a leader from boss to teacher, from manager to coach or as some would call, a servant leader. If you review the role of a leader you can see that they serve the people they lead by giving them the tools, resources, support, direction and vision that ultimately reach the customer. This type of leadership creates an organization that is continually learning along with developing and organization of problem solvers.

Friday, January 1, 2010

Before you Dismiss a Lean Candidate

“Before you dismiss a lean candidate due to the lack of industry knowledge think of what you could be missing out on”.

I have come across several instances when an organization is looking for a lean manufacturing or continuous improvement leader for a specific industry. In most of these instances the hiring agent would be impressed with the lean knowledge portion of the resume but when the industry specific experience was different from what the organization is looking for they dismiss the candidate. I believe this is a short sighted decision.

In my own experience I have spent 11 years in the aviation technical operation and 11 year in manufacturing with extensive lean manufacturing training and development. When I entered the world of consulting I was exposed to many different industries where I was able to assist multiple companies achieve major improvements that contributed to both the top line and bottom line improvements all without industry specific experience.

These industries varied from pharmaceuticals, paper companies, service industry, automotive remanufacturing, machinery manufacturing, machine shops etc…

It is my own personal opinion from experience that anyone holding a certification in lean enterprise or six sigma with practical experience is able to enter any industry and be a major contributor to the improvement strategy of the organization.

Before you dismiss a candidate due to the lack of industry knowledge think of what you could be missing out on.

• Different view point
• New set of eyes
• Applications of alternate solution to problem solving
• Fresh view
• Proven track record that lean works in different industries
• Increase the depth of knowledge of your team

Joe Perillo