Lean management is not a change methodology; it is a destination, a desired set of practices and a change in culture.
Most companies fail when implementing lean because they fail to create a culture of “pull” This is because most organizations attempt to push lean on their people.
I experienced a good example of this over the weekend. I was shopping at a major retailer over the weekend and at the check-out register they had a sign posted “5-S register check list” the last date they checked off was April 2011 The date I was in the store was December 17, 2011. I was still impressed that they had the check list posted so I asked the clerk “hey I see you are using lean manufacturing principles” the gentleman replied by saying “Oh I don’t know what that is”.
This is a great example of an organization pushing lean principles. I am not questioning the company’s intentions but I would question their methods for creating change.
Monday, December 19, 2011
Sunday, October 23, 2011
The Art of Leadership
The art of leadership is to influence people to do the things they should do and the ability to convince them they want to do it.
Thursday, September 15, 2011
Breaking Records
World records are achievements of perfection but records were meant to be broken, history has proven this time and time again.
Individuals who set out to break these records challenged the status quo by confronting the methods to achieve the new goal.
Individuals who set out to break these records challenged the status quo by confronting the methods to achieve the new goal.
Sunday, September 4, 2011
“Is There a Better Way”
“Is There a Better Way”
One of the eight wastes is the underutilization of people. In a traditional operation the culture usually pushes the ideas from management down to the front lines. In a lean culture the ideas are coming from the experts who do the job every day.
Management is responsible to create an environment that allows for ideas to flow freely in a non threatening environment even when mistakes are made.
Management is responsible for creating a culture that drives the entire organization to ask the question “Is there a better way”
Once we begin asking the questions “Is there a better way” it is the responsibility of management to create the vision and support all efforts that will help the organization succeed.
One of the eight wastes is the underutilization of people. In a traditional operation the culture usually pushes the ideas from management down to the front lines. In a lean culture the ideas are coming from the experts who do the job every day.
Management is responsible to create an environment that allows for ideas to flow freely in a non threatening environment even when mistakes are made.
Management is responsible for creating a culture that drives the entire organization to ask the question “Is there a better way”
Once we begin asking the questions “Is there a better way” it is the responsibility of management to create the vision and support all efforts that will help the organization succeed.
Wednesday, August 31, 2011
Changing the Culture
As you begin your lean journey you will encounter two realities when taking on lean transformation.
1. The first involves the physical changes that help reduce waste.
2. The second involves the changing of the existing culture.
Experienced lean practitioners understand that making physical changes in the reduction of waste is much easier than changing the cultural landscape of an organization.
Sustainability is the key to long term effectiveness and the only way we can achieve sustainability is by changing the culture.
Creating a new standard of how people approach a challenge or a problem even how they work. The change in culture also applies to how people approach each other and how they communicate.
Measuring organizational performance will change the focus from the individual to the entire team.
A continuous improvement culture requires more than just going through the motions of a physical plant layout or process changes, it requires a change in how we approach everything we do.
As you begin your lean journey you will encounter two realities when taking on lean transformation.
1. The first involves the physical changes that help reduce waste.
2. The second involves the changing of the existing culture.
Experienced lean practitioners understand that making physical changes in the reduction of waste is much easier than changing the cultural landscape of an organization.
Sustainability is the key to long term effectiveness and the only way we can achieve sustainability is by changing the culture.
Creating a new standard of how people approach a challenge or a problem even how they work. The change in culture also applies to how people approach each other and how they communicate.
Measuring organizational performance will change the focus from the individual to the entire team.
A continuous improvement culture requires more than just going through the motions of a physical plant layout or process changes, it requires a change in how we approach everything we do.
Tuesday, August 30, 2011
Eroding confidence equals declining steel demand
Eroding confidence equals declining steel demand: Eroding confidence equals declining steel demand
Thursday, August 25, 2011
“Great minds discuss ideas; Average minds discuss events; Small minds discuss people”
Eleanor Roosevelt
One of the great lean principles is that it focuses on the process as the main element of correcting a nonconformance and not just blaming the person. People for the most part want to be effective and successful as they go about their work. It is our jobs as lean leaders to help them find out why the process is not allowing them to be effective.
Eleanor Roosevelt
One of the great lean principles is that it focuses on the process as the main element of correcting a nonconformance and not just blaming the person. People for the most part want to be effective and successful as they go about their work. It is our jobs as lean leaders to help them find out why the process is not allowing them to be effective.
Tuesday, August 9, 2011
Friday, April 29, 2011
The definition of Lean
“A systematic approach to identifying and Eliminating Waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection.”
The five principles of Lean
1. Specify value from the standpoint of the end customer by product family.
2. Identify all the steps in the value stream for each product family, eliminating whenever possible those steps that do not create value.
3. Make the value-creating steps occur in tight sequence so the product will flow smoothly toward the customer.
4. As flow is introduced, let customers pull value from the next upstream activity.
5. As value is specified, value streams are identified, wasted steps are removed, and flow and pull are introduced, begin the process again and continue it until a state of perfection is reached in which perfect value is created with no waste.
The five elements of standard work
1.Takt time, which is the rate at which products must be made in a process to meet customer demand
2. The precise work sequence in which an operator performs tasks within Takt time
3. The standard inventory, including units in machines, required to keep the process operating smoothly
4. The cycle times required to complete work elements
5. All process quality checks required to minimize defects/errors
“A systematic approach to identifying and Eliminating Waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection.”
The five principles of Lean
1. Specify value from the standpoint of the end customer by product family.
2. Identify all the steps in the value stream for each product family, eliminating whenever possible those steps that do not create value.
3. Make the value-creating steps occur in tight sequence so the product will flow smoothly toward the customer.
4. As flow is introduced, let customers pull value from the next upstream activity.
5. As value is specified, value streams are identified, wasted steps are removed, and flow and pull are introduced, begin the process again and continue it until a state of perfection is reached in which perfect value is created with no waste.
The five elements of standard work
1.Takt time, which is the rate at which products must be made in a process to meet customer demand
2. The precise work sequence in which an operator performs tasks within Takt time
3. The standard inventory, including units in machines, required to keep the process operating smoothly
4. The cycle times required to complete work elements
5. All process quality checks required to minimize defects/errors
5 Principles of lean & 3 elements of standard work
The five-step thought process for guiding the implementation of lean techniques is easy to remember, but not always easy to achieve:
1. Specify value from the standpoint of the end customer by product family.
2. Identify all the steps in the value stream for each product family, eliminating whenever possible those steps that do not create value.
3. Make the value-creating steps occur in tight sequence so the product will flow smoothly toward the customer.
4. As flow is introduced, let customers pull value from the next upstream activity.
5. As value is specified, value streams are identified, wasted steps are removed, and flow and pull are introduced, begin the process again and continue it until a state of perfection is reached in which perfect value is created with no waste.
Standardized work consists of three elements:
1. Takt time, which is the rate at which products must be made in a process to meet customer demand
2. The precise work sequence in which an operator performs tasks within Takt time
3. The standard inventory, including units in machines, required to keep the process operating smoothly
Additional elements that can be included
4. The cycle times required to complete work elements
5. All process quality checks required to minimize defects/errors
The five-step thought process for guiding the implementation of lean techniques is easy to remember, but not always easy to achieve:
1. Specify value from the standpoint of the end customer by product family.
2. Identify all the steps in the value stream for each product family, eliminating whenever possible those steps that do not create value.
3. Make the value-creating steps occur in tight sequence so the product will flow smoothly toward the customer.
4. As flow is introduced, let customers pull value from the next upstream activity.
5. As value is specified, value streams are identified, wasted steps are removed, and flow and pull are introduced, begin the process again and continue it until a state of perfection is reached in which perfect value is created with no waste.
Standardized work consists of three elements:
1. Takt time, which is the rate at which products must be made in a process to meet customer demand
2. The precise work sequence in which an operator performs tasks within Takt time
3. The standard inventory, including units in machines, required to keep the process operating smoothly
Additional elements that can be included
4. The cycle times required to complete work elements
5. All process quality checks required to minimize defects/errors
Saturday, March 26, 2011
Joe Perillo will be teaching a lean management analyst course at the Penn State Abington campus that will run for 7 weeks.
The class is from 6 to 9 pm every Tuesday night starting April 5th.
The cost per student is $495 If you have any questions please contact: Eva Klein Assistant Director of Continuing Education and Summer Programs evaklein@psu.edu Office (215) 881-7387 Fax (215) 881-7317 Penn State course link http://lnkd.in/Njzxsp less
The class is from 6 to 9 pm every Tuesday night starting April 5th.
The cost per student is $495 If you have any questions please contact: Eva Klein Assistant Director of Continuing Education and Summer Programs evaklein@psu.edu Office (215) 881-7387 Fax (215) 881-7317 Penn State course link http://lnkd.in/Njzxsp less
Friday, January 21, 2011
Six Year Trend Analysis on Steel Pricing and 10 Year History on AMM HRC Steel Sheet Index
The six year trend analysis on HRC reviews the 2004 and 2008 steel pricing bubbles.
The analysis for both the 6 year and the 10 year analysis show the cyclical price fluctuations that were based on quarterly supply and demand activity.
Steel price activity has been mainly influenced by recent scrap, iron ore coking coal prices due to the bad weather and flooding in Australia, but without an increase in demand these price increases will be short lived.
From an economic recovery view point we see upward trends in several areas including manufacturing but the residential and commercial building sectors are still struggling. I believe this struggle will continue to impact steel pricing well into 2012 and 2013.
Form the trend we see increases in steel pricing through Q1 and partial of Q2 2011 with a down turn in pricing as early as April.
The down turn may be delayed until May/June due to the flooding in Australia
Major Points on Steel Trends
HRC steel pricing follows a roller coaster pattern
There were two major price bubbles in the last six years (2004 & 2008) with increasing prices averages increasing after prices stabilized.
The steel contract lock-in strategy allows you to monitor the market trend and lock-in on the down turn of pricing.
The length of the contract depends on the market condition. If pricing forecast are trending down the contract will be shorter if pricing forecast are increasing the contracts will be longer.
Normal contract lengths are completed in quarters but depending on market condition the range can be one month to six months and in special cases 12 months.
The six year trend analysis on HRC reviews the 2004 and 2008 steel pricing bubbles.
The analysis for both the 6 year and the 10 year analysis show the cyclical price fluctuations that were based on quarterly supply and demand activity.
Steel price activity has been mainly influenced by recent scrap, iron ore coking coal prices due to the bad weather and flooding in Australia, but without an increase in demand these price increases will be short lived.
From an economic recovery view point we see upward trends in several areas including manufacturing but the residential and commercial building sectors are still struggling. I believe this struggle will continue to impact steel pricing well into 2012 and 2013.
Form the trend we see increases in steel pricing through Q1 and partial of Q2 2011 with a down turn in pricing as early as April.
The down turn may be delayed until May/June due to the flooding in Australia
Major Points on Steel Trends
HRC steel pricing follows a roller coaster pattern
There were two major price bubbles in the last six years (2004 & 2008) with increasing prices averages increasing after prices stabilized.
The steel contract lock-in strategy allows you to monitor the market trend and lock-in on the down turn of pricing.
The length of the contract depends on the market condition. If pricing forecast are trending down the contract will be shorter if pricing forecast are increasing the contracts will be longer.
Normal contract lengths are completed in quarters but depending on market condition the range can be one month to six months and in special cases 12 months.
Sunday, January 9, 2011
I just completed a six year trend analysis on HRC and outside of the 2004 and spring 2008 steel pricing bubbles the cyclical price fluctuations were based on quarterly supply and demand activity. I also see price increasing through Q1 and partial of Q2 2011. It’s obvious that steel price activity has been mainly influenced by recent scrap, iron ore coking coal prices, but without an increase in demand these price increases will be short lived. From an economic recovery view point we see upward trends in several areas including manufacturing but the residential and commercial building sectors are still struggling. I believe this struggle will continue to impact steel pricing well into 2012 and 2013. Joe Perillo
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