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- How do we address the risks associated with changing the way we do business now?
- Isn't it true that lean manufacturing techniques only work in large, high-volume, repetitive manufacturing companies?
- Can the workings of a "lean organization" that demands quick, cost-effective adaptability be compatible with the methodical, disciplined processes required by ISO 9001?
- What is the difference between lean manufacturing and a lean enterprise?
- What effect has e-commerce had on companies considering lean improvements?
- Where should we start?
- What's next?
- What is the best approach to making the distinction between "value-added" and "non-value added"?
- Oftentimes, "becoming lean" is interpreted as terminating employees to reduce costs. Is this true?
- How do we address the risks associated with changing the way we do business now?
Answer: Risk reduction is inherent in the process of lean implementation strategies through the following:
- Up front analysis for information gathering and the identification of potential savings
- Following a "road map" that targets big hits first, narrows the scope, and helps to save time and capital
- Accommodating for the training of workforce to help assure results
- Use of computer simulations to predict performance before implementation
- Phased implementation for control and manageability
- Benchmarking against others in industry
- Accommodating for milestone reviews
- Use of outside resources with flexible contract pricing
- Experiencing the start of payback in six months or less
- Isn't it true that lean manufacturing techniques only work in large, high-volume, repetitive manufacturing companies?
Answer: This is a common misconception. The truth is that lean manufacturing can be successful in many industries. The principles apply in both small and large manufacturing companies. This is good news since the large majority of all manufacturing companies have fewer than 500 employees.
- Can the workings of a "lean organization" that demands quick, cost-effective adaptability be compatible with the methodical, disciplined processes required by ISO 9001?
Answer: Forward thinking managers that truly understand the principles behind both concepts recognize that only a structured and disciplined approach, such as that provided by an ISO 9001 management system, will allow them to successfully create a transformation within an organization. ISO 9001 clearly indicates that a management system is to be designed and implemented in such a manner as to meet the distinctive needs of the organization and its particular objectives, products, services, processes and practices. The decision to implement new techniques into the organization, that may or may not be addressed by ISO 9001, should be considered and incorporated into the formal management system as deemed most appropriate. The incorporation of these techniques into the formal management system ensure their implementation and continuity and provides for periodic monitoring so that management may evaluate ongoing effectiveness. An ISO 9001 management system is ideally suited to effectively implement lean programs. It provides for the success of such programs with provisions for:
- Management vision, direction, authorization and involvement
- Resource evaluation and application, inclusive of personnel qualification and training, processes, etc.
- Planning functions
- Qualification and control of designs, technologies, processes, materials, products and services
- Review and analysis of results, application of decision-making processes and initiation of needed changes
These are the tools provided by ISO 9001 that make it an ideal vehicle for management to achieve the changes needed in developing a "lean" organization.
- What is the difference between lean manufacturing and a lean enterprise?
Answer: The first thing you will learn about lean manufacturing is that implementing it is a journey, not a quick fix. Many manufacturers eager for instant results try to steal the "quick fix" parts of lean manufacturing and force them into their existing plans to attack waste. Experts suggest that if you go lean, you have to be completely dedicated to it, adopt it wholeheartedly. Otherwise, you may experience some short-haul benefits, but you will most likely not be prepared for long-term challenges. Individual lean manufacturing practices often do not really make much of an impact. The only way to experience the full benefits of lean is through lean as a system, as a total system. To become a lean enterprise means that change has to occur at all levels from accounting, to upper management, to the shipping docks. Everyone in the organization has to accept lean as a lifestyle and be dedicated to the long term application and continuous improvements associated with it. Added to that you may also have to target suppliers and vendors and convince them to be lean. Everyone in the value chain needs to embrace and support lean principles to make ensure your long-term success as a lean enterprise.
- What effect has e-commerce had on companies considering lean improvements?
Answer: More and more manufacturers are turning to lean because of new pressures for quicker response and shorter cycle times that e-commerce and e-manufacturing are imposing. As e-business puts more pressure on the plant, companies that weren't considering lean are now willing to adopt it because they have to. There is probably only one assumption we can guarantee about e-commerce and the Internet. Everything is going to change. Many feel that now is the time to consider implementing lean principles and strategies into their business to position themselves for a future of increasing customer requirements.
- Where should we start?
Answer: MAMTC believes that the smartest way to begin your lean journey is through knowledge and education. You should experience and observe, through seminars, events and in-house training on lean manufacturing principles. In most cases, the next approach will be an analysis of your organization to identify wastes, areas of improvement, and to prioritize strategies to implement solutions. We recommend taking advantages of the benefits of a Value Stream mapping analysis to correctly evaluate your current state against your future state to determine how you will attain your goals.
- What's next?
Answer: Common lean "roadmaps" follow a path based on phases to guide you along your long-term improvement strategies. Individual strategies for implementation will vary, however a typical phased approach to implementation could look something like this:
- Plan
Includes: Assessment, diagnosis, decision making, definition of goals, measures and milestones, policy making, determining teams, researching current conditions, conduct production assessments, determining visual management plans, training and education, communicating policy, awareness education, formally launching your initiative.
- Apply
Includes: preparation and focus, scanning the workplace, applying 5S, team preparation, standardizing work, setting up cells, implementing area specific methods, applying quick changeover, applying visual controls, applying mistake proofing, applying maintenance methods, analyzing results, addressing safety issues, etc.
- Deploy
Includes: improving implementation plan, applying advance one-piece flow, TPM, cycle time management, implementing production smoothing, analyzing results, applying a Kanban system, address system integration issues, schedules, interface with MRP systems, more analysis of results, etc.
- Integrate
Includes: deploying lean throughout the value chain, continued education and involvement of employees, analyzing results, applying concurrent engineering principles, initiating supplier development programs, link to supply chain, apply QFD, link to customers, continued analysis of results, and strategy revisions, etc.
- Excel (forever and always)
Includes: determining new ideas for future improvement, investing in R&D of new methods, analyzing and studying results, etc.
- What is the best approach to making the distinction between "value-added" and "non-value added"?
Answer: When applied to a company or to an aggregate of companies, the concept of value-added is clear and quantitative. It is the difference between the price at which goods are sold and the cost of materials used to make them. In terms of individual manufacturing operations, processes can also be analyzed in terms of "value-added tasks" and "non-value added tasks", however at this level it becomes more challenging to try to quantify the difference. It is here that it becomes a question of not whether a task has a higher value-added than another, but whether it has any or none. Within the context of lean, tasks are usually non value-added if they do not contribute to what the customer pays for. The concept of waste may be more operational. It is possible to identify what is waste and what isn't, and according to lean philosophies, waste needs to be eliminated.
- Oftentimes, "becoming lean" is interpreted as terminating employees to reduce costs. Is this true?
Answer: When evaluating "non-value added" activities it can be dangerous to categorize jobs into these categories. The connotation of "non-value" added sometimes is "should be eliminated", and it misleads many managers into concluding just that and acting accordingly. At closer inspection, some of the "non-value" added tasks are necessary and should be performed to make sure they don't slow-down production. They should also be performed efficiently to make sure they don't waste resources. Eliminating jobs is not a major goal of lean improvement strategies. When/if it becomes evident that a job is unnecessary and does contribute significantly to a waste, lean practitioners always suggest empowering individuals in those jobs with skills that will allow them to perform other tasks within the operation.
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