Tuesday, January 18, 2011

Continuously improve in 2011

The New Year has begun and every new year kicks off new projects/programs.
New programs in almost every function of the enterprise are planned for the entire year.And Continuous Improvement program also gets new goals, targets and plans.

Continuous improvement is tough in today's business climate.
Businesses are trying to do more with less. Less resources to take care of routine work. On top of this there is the CI program that needs resources too.
Most people devote time to CI projects after taking care of their routine responsibilities.

So how do you plan for Continuous Improvements in 2011?
1. Simple tools like 5-Why Analysis, PDCA, Cause and Effect diagram are easy to understand and use.
2. Create a learning environment where everyone learns by applying.
3. Encourage people to just try a new tool or technique for improving a process. Sometimes the best solution is to Just do it.
4. Plan for Continuous improvement with the end goal in mind. Sporadic improvements here and there are useful but won't get the CI program far.
5. Link each CI activity/project to financial benefits.
6. Communicate the progress of the CI program to all levels of the enterprise. Leadership needs to know what has been achieved and the goals for the CI program.
7. Periodically Measure how the CI program is actually doing compared to the goals/targets.
8. Tweak the program if it is not achieving the set goals but never give up on your CI initiative.
9. Know your CI toolkit and update your skills to use the tools in your improvement projects.
10. The key is to persist inspite of the challenges and never stop continuously improving your processes!

We would like to hear about your CI program in 2011. Are you planning for new tools you would try in your CI projects?
Drop us a line about your CI plans for 2011 at info@sybeq.com.

Thursday, December 30, 2010

How to level the load in production?

The concept of load leveling requires careful analysis of production volumes and schedules so that production makes same quantity of parts both by volume and product mix everyday.

The steps for leveling the load include:
1. Take the total volume of customer orders in a period by product type.
2. Determine the quantity of parts by product so that the same volume needs to be produced by product type.
3. Analyze the time required to make a part by product type and time required for changeover.
4. Plan a stable production schedule so that plant floor doesn't have to deal with fluctuations.

The goal of leveling the load is planning to work at a consistent pace in production making a mix of parts so that the equipment and people are working at the same pace without stopping or being stressed.
Because of this production is not rushed for deliveries giving production folks enough time to implement standard work and avoid errors.

The key to find the mixed model that works for your process/line. Once the mixed model is determined, production has to make the same quantity, mix of products and repeat it everyday.

Load leveling presents many challenges:
- The concept of load leveling is counter intuitive to batch manufacturing where the focus is to run a batch of same product as long as you can and run it efficiently. Load leveling on the other hand says it is okay to changeover from one product to another. In fact load leveling encourages multiple changeovers in a day or a shift.
- Due to the mixed model approach, there may be some amount of finished goods inventory when implementing load leveling. This may make some Lean experts unhappy as they view inventory as waste.
Ultimately it is important to look at the risk of carrying some inventory to satisfy customer demand or make the customer wait for the product they need.
- Load leveling won't be successful without having quick changeovers i.e. reducing changeover time.

Taiichi Ohno explained this with the story of the race between the tortoise and the rabbit. The slow and steady tortoise wins the race. Ohno said it is desirable to be slower but consistent tortoise as it causes less waste than the speedy rabbit who races then stops to rest.

Thursday, December 2, 2010

Load leveling is key to becoming lean

The last few posts on our blog focussed on Value Stream Mapping and other lean tools used for waste removal.
Removing waste is the main focus of lean manufacturing.
Value Stream Maps allow lean practitioners to get a true picture of activities done in a process. These maps make waste visible so that it can be removed.
Waste can be removed using lean tools.

In today's world, production volumes change based on customer demand and customer demand fluctuates. Plants practicing Just In Time start producing only when the customer signals for parts. Plants cannot possibly respond to such high variations in demand. So they carry some buffer stock for finished goods.
There may be raw material inventory or WIP necessary to prepare for such demand fluctuations.

Carrying enough inventory is the key to meet customer demands. If plants carry too much they are creating waste and hiding problems.
That is why it is important to level the load so that plants produce at a uniform pace without causing stress to equipment or people. Stressing the equipment could cause breakdowns and stressing people may cause errors or accidents.

But what is load leveling?
Load Leveling is the process of producing the same quantity and mix of parts without responding to every fluctuation in customer demand. This reduces unnecessary stress on equipment or people working in the plant resulting in fewer breakdowns and errors.

The question is how to level the load?
We will try to answer this in our next post.

Thursday, November 18, 2010

VSM makes problems visible

Lean principles talk about making problems visible so that they can be solved. Value Stream Mapping focuses on charting activities as they happen in the process. The main goal of VSM is to make problems/waste visible.

But what happens next is equally important. Problems need to be acted upon. Lean practitioners need to identify what how to resolve problems or remove waste.
The following approach may help practitioners with problem solving:
1. Identify the list of problems in your area.
2. Measure the impact of the problem on external and internal customers and the organization's bottomline.
3. Prioritize by impact of the problem.
4. Undertake root cause analysis using 5 Why analysis or cause and effect diagram.
5. Identify root causes and corrective actions that can be implemented.

Problems are everywhere. Sometimes very prominent staring you in your face and other times hidden. The key is to find them as soon as they appear and fix them.

This actually resonates with what Philip Crosby said "It isn't what you find; it's what you do about what you find".

What problem solving technique do you use in your workplace? How do you identify problems? Send us your comments at info@sybeq.com.

Thursday, October 28, 2010

Using a Pull system not so Lean

One of the key lean tools is implementing kanban which uses the pull system. Lean is all about moving away from the traditional push system toward the pull system. In a lean enterprise, it is always recommended not to push parts or information to the next process step. The focus is to pull parts when the downstream process step requests for parts/information.

Some Lean practitioners rave about the pull systems they have implemented. However experienced Lean practitioners don't give much credit to pull systems. This is because...
1. Lean is all about removing waste.
2. When waste cannot be removed, there is inventory in process or at the final stage. This inventory needs to be managed in the best way possible. In such situations, a pull system is used.

Implementing the pull system is an indication that waste is still present. This is a good starting point for reducing waste but it is definitely the final goal. The Lean implementation team should not stop at implementing the pull system. In fact the team should continuously work toward removing waste altogether and not use the pull system.

As rightly said by Jeffery Liker in the book Toyota Way "Flow where you can, pull where you must". The ultimate goal to make value flow as smoothly as possible.

Monday, October 11, 2010

Information on Value Stream Maps

Value Stream Maps are used to map the flow of information and material in the value stream. This generic statement explains the purpose the value stream maps.
But new users struggle with how much detail about the value stream should be captured on the VSM.

What should be captured?
How should this information be displayed on the map?
In this post we will try to answer these questions.

A value stream map is a picture of your value stream. It's purpose is to find what is happening now which will help identify waste in the value stream. Once waste becomes visible Lean tools can be applied to remove it.

The following information could be helpful if captured on a value stream map..
1. The layout of the area will become evident once the map is complete. The amount of distance between process steps or user motions at the step or the physical movement of material and information.

2. The amount of time required by the user to process a unit. For example time required to verify one insurance claim at the claims verification step.

3. The amount of wait time at the process step. Wait time could be people waiting for material/information (no parts or claims to process) or material/information waiting to get processed (Average wait time for raw material in the incoming warehouse or wait time for claims process to begin).

4. Total time per unit at each process step. This is the addition of processing and wait time per unit.

5. Total lead or throughput time for the entire value stream. This is the time needed to make a single part or process a single insurance claim.

6. Time for rework and repair activity. This information needs to be captured if rework/repair is being tracked as part of the value stream. If this is considered as another value stream this information can be left out.

7. Interruptions in the flow of value as reworked parts/claims get reintroduced at a specific step in the value stream.

What kind of information do you capture on Value Stream Maps?

Tuesday, September 28, 2010

VSM during early stages of Lean implementation

How many Value Stream Maps should be created at the start of Lean implementation?
We typically hear this question from...
1. Users who have recently learned the Value Stream Mapping tool
2. Organizations who are new to Lean implementation, just starting out on their lean journey

Start the Lean implementation with a few (say 2 to 3) value stream maps for processes that have the most non value adding activities (waste).

Why just 2 to 3?
Because of several reasons..
1. Creating Value Streams is a time consuming activity.
- Teams creating these maps have to walk the value stream and capture information
about material and information flows.
- Teams have to then create the current state map, identify waste and the Lean
tools they plan to use, create the future state map.

2. After creating the maps in the meeting room, now teams have to actually go and implement the Lean tools in the value stream. This is the most challenging part as this may take anywhere from a few days to few weeks. There are many aspects of the implementation like corporate culture, motivation level of people, management involvement, complexity of the process that could play a role.

3. Getting rid of all the waste in the process may require several cycles of going from the current to the future state. After all Lean is a journey of continuously removing waste.

How many value streams have you worked with? How many value streams did you start with when your organization was in early phases of Lean implementation?
Send us your questions or comments at info@Sybeq.com