January 13, 2016 Industry Forum Blog For many years we have been successfully using VSM to help us plan how our businesses will operate in the future. Many of us will have started around 2003, using Learning to See by John Shook and Mike Rother. But is the mapping tool becoming obsolete in the world of virtual and augmented reality? Mapping the information and material flows and understanding how long it takes us to deliver the finished product to the end user has many benefits. It allows us to diagnose our current state and then plays a vital role when we design how we will operate more effectively in the future. Key is ensuring we meet or even exceed customer expectations in a way which ensures we can make a profit and maintain a healthy cash flow. VSM is at its most powerful when used as a strategic tool to support our policy deployment cycle. Aligned to our vision and mission statements, it helps us create a road map of how to achieve the ideal state. We get clear priorities and detail on which improvement tools to use, where and what the desired outcomes are. Under threat? For me a key part of the mapping process is using a cross functional team who go to collect actual facts about how the process really works. And of course the giant roll of paper we put on the wall! So is our “traditional” way of mapping under threat from powerful applications supported by cloud technologies or the real time collaboration across continents made possible by augmented reality (AR)? Will we loose the hands on, collaborative approach that has always worked wonders in reaching consensus on the way forwards? The future I don’t think we should change the practical, cross functional team approach to the mapping method. While in some cases the introduction of VR and AR will enable better collaboration, let’s not throw out the roll of paper just yet. But we should definitely introduce digital technology in another way. We know that used in the right way these technologies help us to eliminate waste and reduce lead times. This happens in both the information and manufacturing flows. So let’s introduce some new icons into our mapping and incorporate the advantages of the emerging technologies into our designs. Traditionally we have used icons like these to depict the ways in which we transfer information; manual (solid line), electronic (lightening flash) and informal or ad-hoc flow (dotted). And we add detail with icons for sheets of paper, computers and telephones.I bet you’re thinking …… “That looks a bit old hat!” Well how about we introduce symbols to show wireless transfer and use of cloud technologies? Could we show smart products in transit along the extended value stream? Will kanban cards become things of the past, to be replaced by symbols for smart products that wirelessly transmit the signal to produce? As our manufacturing environment evolves at an ever increasing pace I think we need now more than ever, the clear vision provided by future state mapping. So, I would love to see some of your future state digital manufacturing maps, with vastly reduced time lines. Or maybe you would like to share your ideas for new icons?
January 6, 2016 Industry Forum Blog When I first learned about the 7 Wastes (some 20 odd years ago!), it was a light bulb moment. The root of every single improvement method was revealed. You will probably have noticed how most of these blogs mention waste somewhere. But it’s one thing to be able to recite the wastes and another to be able to spot and rigorously eliminate them. I often find that people have heard about the wastes, but don’t have a solid approach for elimination. This results in missed opportunities when deploying all the other lean tools and techniques. Follow these 5 straightforward steps to maximise your activity results 1. You have to go and spot it! Get a team together (who have had a brief introduction to the waste categories) and go and observe your target area. Use the method best suited to the task you are watching: Stand and watch – good for repetitive, short cycle tasks. Video and playback later – good for tasks that take under an hour. Draw it, use a flowchart, process map or value stream map – good for lengthy tasks and those that involve operations that are difficult to observe e.g. admin and computer based tasks. You can combine the methods as well. Top tip: Take a list of the 7 Waste categories with you. It helps you to remember what you are looking for. 2. Write the waste you spot on a Post It® note The most important thing to write is a description of what you see – the waste observed. You can add the waste category and suggest a countermeasure afterwards. Encourage the team to identify as many different wastes as possible. Top tip: Liken each Post It® note to a £10 note (it used to be a fiver – but that was a long time ago!) 3. Organise the notes After quite a short time the team will have generated a huge amount of notes. You need to group these together so you can prioritise them. Start with this simple method and develop it as you learn by doing. First organise by category, grouping together similar observations. Then prioritise which ones you are going to tackle first. There are many ways of doing this, like using a grid with impact and cost axes. Start with the high impact, low cost ideas. Of course any safety concerns must be dealt with first. 4.Eliminate the wastes Go and implement the countermeasures. Top tip: Transfer each group of wastes onto a follow up sheet so you don’t loose any, especially those in the lower priority quadrants. A good sheet will help you follow a Plan, Do, Check, Act approach. 5. Tell everyone about your improvements Communicate how much easier and quicker the tasks have become for the people who carry them out. Use pictures, do demonstrations, use KPIs, discuss at team briefs. Don’t forget to train people in the new methods and incorporate the changes into any existing documentation like Standard Operating Procedures, costings etc. Prove to the management team how the activity has benefited the bottom line. Read this article to see how to translate the improvement into cash. The more you actually do waste elimination activities, the better you will become. If you want any help or some more tips for tricky activities please contact us.
December 22, 2015 Industry Forum Blog Rebalancing the UK economy following the crash of 2008 is widely understood as a desirable national goal. The recent progress of UK manufacturing can be assessed via the Annual Business Survey data which Office for National Statistics (ONS) have just released covering the period from 2008 to 2014. It shows that manufacturing gross value added (GVA) increased by £7.8bn or just over 5% between 2008 and 2014. The detailed sector changes suggest that the global economy is impacting on different parts of manufacturing in very different ways. Food manufacturing increased GVA by £2.2bn, automotive by £7.3bn and machinery and equipment by £1.5bn. Several manufacturing sectors decreased in size while others stayed roughly level in GVA terms. The non-financial economy as a whole increased in GVA by £195bn between 2008 and 2014 – by over 20% which is more than the total manufacturing GVA of £157bn in 2014. There are important linkages between manufacturing and services, however, and a key example of these linkages is the retail motor sector which increased GVA by £31bn between 2008 and 2014 to a total of £189bn. Professional and Technical Services are also often linked to manufacturing and this sector’s GVA increased by over £41bn between 2008 and 2014 reaching a total of £148 bn. One element in the increase in GVA in automotive manufacturing has been the significantly increase in investment in the sector not just in car plants but also in the supply chain. Strengthening the supply chain had been identified as a priority by the Automotive Council where industry leaders set an overall national strategy with Ministers and overseas investments have been secured as a result. This Summer DEFRA minister, Lynn Truss, launched a related initiative for the food and farming sectors. Food manufacturing is the largest UK manufacturing sector and one of the largest in Europe. A meeting with over eighty industry representatives committed to the development of a long term plan with a 25 year time horizon for food and farming. They affirmed an ambitous vision for the sector and its potential to drive growth. Achieving the potential will involve building skills especially via apprenticeships, using modern technology and building an overall brand to lever export growth. An interesting similarity between automotive and the food sector is the importance of effective supply chain management especially as part of successful new product introduction. The UK food manufacturing sector launches over 16000 new products every year. As part of its 2015 Manifesto the All Party Manufacturing Group (APMG) endorsed the type of approach adopted in automotive and food. It said:long term government policies, prepared in collaboration with industry and with buy-in from across the political spectrum, are the single best way to instill confidence and security across the manufacturing sector. The manifesto set out specific proposals on innovation, skills, finance and taxation, energy, trade and investment and SMEs. APMG has set up an independent in-house depth research unit, The Manufacturing Commission, funded by the EPSRC and the EEF. It aims at driving new thinking about UK industrial policy. The formation of a Manufacturing Commission follows on the APMG’s 2013 research inquiry and report ‘Making Good: A Study of Culture and Competitiveness in UK Manufacturing’, which warned that UK manufacturing is being prevented from becoming ‘wholly competitive’ by a national industrial culture that discourages companies from investing in vital long-term business drivers such as skills development and technological innovation. The chairman of Industry Forum, Mike Baunton is a member of the Manufacturing Commission. As far as UK automotive is concerned Mike believes there are significant opportunities in the supply chain, in environmental performance and in skills. There are excellent examples of UK automotive companies leading in each of these areas but if we could get all automotive companies to the levels of the best we could accellerate growth. Global manufacturing companies are increasingly building their strategy as a integrated global portfolio facilities. As far as the UK’s strengths are concerned from this perspective, Mike points out that the UK has deep expertise not just in all aspects of modern manufacturing but also in the support services needed to make manufacturing competitive. We speak the worlds language, we have access and support for world markets.We have an open economy and supportive legal and political framework plus both competent and flexible working practices. He points out that many countries support manufacturing both directly (through grants and tax incentives for example) and indirectly through tariff barriers, export incentives etc. However, countries beyond the UK typically apply short term incentives which are incompatible with the long term investment goals of many manufacturing companies. We in the UK have demonstrated a consistency of approach and the support that should encourage even more inward investment. Mike descibes the Manufacturing Commission research priorities as making recommendations to Government to support industrial sustainability. In the context of the work they are looking at not just environmental sustainability but resilience, supply chain strength, skills and long term research and development capability. All the evidence shows that a national manufacturing strategy can pay off provided it is pursued consistently in the medium and long term. Major manufacturing nations in Asia, Europe and North America are all developing this kind of strategy and taking a keen interest in how competitor nations approach the topic.It is very encouraging to see that the UK is developing its own distinctive research based approach aligned with our national strengths. Further information: enquires@if.wearecoal.work +44 (0)121 717 6600 Download Article (pdf)
December 16, 2015 Industry Forum Blog Will deploying digital technologies boost your productivity, QCD performance and global competitiveness? This is the message we get from all the promotional information. But as with any new system or equipment, we need to evaluate the pros and cons before rushing in to purchase. To really improve performance and bottom line we need to ensure we are eliminating real waste, not just speeding up tasks classified as waste or non value adding (nva). Let’s have a look at a few examples. Smart tools and wearable tech Imagine using a smart torque wrench liaising with a variety of smart products during assembly. It tightens to the correct setting with a high level of accuracy, sends data to be captured for compliance on your safety critical item and then reconfigures the setting instantly for the next product. Bad quality through user error is eliminated, and time to collate compliance data is vastly reduced. Key here is that if the tightening is a value added task and regulation states you must have compliance data, then you have almost certainly eliminated some waste. Now consider the scenario where warehouse workers are using wearable tech to assist picking and stock taking. Using multiple hands free devices will speed up the operation and reduce errors (bad quality) and operator motion. But we must question the need for the warehouse in the first place. Are we overproducing? Eliminate waste in the value stream before investing in tech. Virtual and Augmented Reality Using VR and AR instead of manual design systems and paper based Standard Operating Procedures reduces waste (see last blog) and speeds up the whole design process. But they are not a cure-all. There are other important actions you should take to speed up time to market. Using in sight displays of near live data analysis may reduce operational wastes. But don’t loose the value of gathering a team together to problem solve and eliminate root causes. Linked systems Seamless digital manufacturing systems, that replace manual processes, can speed up feedback and reporting by eliminating the wastes of using the old system. Like time spent retrieving information and transferring to different systems, errors and waiting for others to finish tasks. But again don’t automate wasteful or nva tasks, review the information flow first. Electronic storage space and bandwidth do cost money and can be wasted! Big data and other analytics Using cloud and IoT technologies can boost the power of Condition Based Maintenance and CMMS systems to predict machine failures before they occur. This reduces downtime and production costs but comes at a price. I recommend that you evaluate what you need from your CMMS system first and consider scaling it up over time. Cloud based speech analytics are being used to improve customer services; resolving issues more quickly and preventing future costs. I’ll let you decide for yourself if this is speeding up a reactive approach or is it being proactive? Summary A key message from the Advanced Engineering show was that we need to use lean techniques as well as emerging technologies to improve performance and productivity. Robots and machines can not do problem solving and improvement activities like humans can – yet! We need to be aware of what technology can do and deploy what we need, to drive out real waste and solve problems. I hope you enjoyed this series of blogs on emerging technologies and how they will shape our future. I would love to hear about your thoughts and experiences.
December 15, 2015 Industry Forum Blog Risk management is part of the portfolio of most firms. For example, contracts are always instruments to share risk between the parties. Or again, risk management should shape audit strategy and be the bedrock of health and safety practices. Product design includes risk management methods such as failure mode effect analysis (FMEA) which is a core tool within TS 16949. Lean and agile product development approaches also aim to minimise risk. Recently the expression ‘stress test’ has entered everyday speech from contemporary financial sector risk management. Risk management is growing in importance as new and improved products, processes and services are more and more the bedrock of the growth strategies of most firms. Last year food and drink manufacturers in the UK, the largest manufacturing sector in the uk, introduced some 16,000 new products, part of the reason why food manufacturing is one of the sectors that expanded most between 2008 and 2014. Everyone accepts that there is a significant risk dimension to such market introductions as most new products fail still. With innovation increasingly based on new technology, especially digital technology, businesss risks are increasing for other reasons too. Introducing new technology brings important supply chain risks as new technologies usually mean new suppliers. There is now a well established trend for supply chains to become more elaborate, more diverse and more extended. Major organisations, including the U.S. Pentagon for example, have identified this supply chain development as bringing important new capability and skills challenges and needs in supply chain management and strategy to cope .There are also developments in the business environment which are intensifying risks as it become more volatile, ambiguous, chaotic and uncertain (VACU). The Cambridge Risk Centre last year produced a taxonomy for complex risk management based on twelve categories of threat. These include financial shock, trade dispute, political violence, geopolitical conflict, natural, climatic, environmental or technical catastrophe, disease outbreak and humanitarian crisis. Most if not all of these can disrupt an extended supply chain and it is easy to think of recent examples of disruption which have made the headlines. Deloitte recently published a review of the factors shaping the investment approaches of US headquartered manufacturers up to 2020. Produced with the Manufacturing Alliance for Productivity and Innovation it examined whether the well established strategy of off-shoring should be balanced in future by more recent developments in the global economy favouring a different strategy. For example with the increasing importance of advanced manufacturing techniques how sound is it to develop the global manufacturing footprint in new territories where the environment involves several significant unknowns? The study recommended that top management ensure that geopolitical risk is factored into global investment decisions over the next five years. In this kind of risk work a strategic risk is one which undermines the fundamental assumptions on which a strategy is based or the organisation’s capability to meet its goals. Massachusetts Institute of Technology’s David Simchi-Levi, Cornell’s William Schmidt, and Yehua Wei at Duke, have created two new metrics to “help prioritize the financial or operational impact of risk that lets companies focus their mitigation efforts on the most important suppliers and risk areas,” Time to Recovery (TTR) is the time it would take a network point to become fully functional after a disruption. Ford has used suppliers TTR information combined with its own data to identify risk exposure at each of its network sites. Time to Sustainability (TTS) indicates the maximum duration that the supply chain can match supply with demand after a network disruption. Evaluating inventory and other available supply, this metric reflects how long the customer can continue to be served while the network point is down. If the TTS is greater than the supplier’s TTR, risk is low. By contrast, if the TTS is less than TTR, its disruption creates financial and operational complications. Another important aspect of strategic risk management is risk monitoring and firms will need to introduce or expand this capability. We can all think of risks that loom large currently but which two or three years were only the concern of specialist communities. The UK is fortunate in the availability of information and expertise on emerging risks, much of which comes at low or zero cost. There are also thriving consultancies in the UK business services sector specializing in area specific political and geopolitical risk analysis. It is important that risk monitoring within firms is elevated beyond media monitoring as part of the marketing function and provides a regular structured input to senior decision-makers. The new version of the global quality standard, ISO 9001 which has just been published. It incorporates the risk management standard ISO 31000 and brings that standard into an assessment and certification regime for the first time. This change will be carried through to all the sector specific variants of ISO 9001 including medical equipment, aerospace and automotive. Supply chain risk management has been the subject of important developments by major manufacturing nations outside the UK. There is the German supplier assessment approach VDA 6.3 developed for automotive supply chains. This standard evaluates a potential supplier’s capability to be a reliable part of the supply chain for a new product but it is also useful to primes in developing their In the USA the premier professional association for supply chain management is the APICS who offer a comprehensive, program that will prepare participants to work on the development of a global risk mitigation strategy. To earn the APICS Risk Management Education Certificate one must complete 12 total contact hours of APICS education including 3 from the elective topics which include vulnerability assessment, currency risk and political uncertainty. Industry Forum can support manufacturers who want to enhance their supply chain risk management capability. We provide services linked to the global automotive quality standard including the core tools such as FMEA, to the German supplier standard VDA 6.3 and to the U.S. professional association for supply chain management APICS. Supply Chain professionals must consistently update their skills and knowledge to thrive in a competitive environment. As the leading training and consultancy organisation, Industry Forum can offer the right programme and certification in APICS . For further information please visit www.industryforum.co.uk/training or email enquiries@if.wearecoal.work Further information: enquires@if.wearecoal.work +44 (0)121 717 6600 Download Article (pdf)
December 9, 2015 Industry Forum Blog In Digital Manufacturing I mentioned that the time for NPI is being reduced, thanks to the use of technologies such as Virtual Reality (VR), Augmented Reality (AR) and 3D printing. While these methods may have been considered too expensive, the development of the cloud and Internet of Things is making them readily accessible, even for SME’s. Having recently seen these digital processes in action, I thought it would be good to show how they can be used to eliminate waste and reduce cost from our NPI projects. I’ve used links to videos to show you these processes in action. Much better than words. You can Google more examples, watch out though it is addictive! VR A person using specialist electronic equipment interacts with a computer-generated simulation of a three-dimensional image or environment. This technology is already used in immersive vehicle design and for creating plant layouts. Take a look at this video from Ford; it describes how VR enables real time collaboration from designers across the world. AR Computer generated virtual information is placed directly into our world. Unlike VR the user doesn’t require a portal to access the image. Auto and aero manufacturers are already experimenting with AR as part of their design and development programmes. Tests show that errors and time to assemble are reduced, even for first time users. To give you an idea of how AR works in an industrial setting, take 5 minutes to watch this clip on the Daqri Smart helmet, a piece of wearable tech. And if that isn’t futuristic enough for you, try wearable holograms! 3D printing Material is “printed” thin layer after thin layer in simple or complex shapes to create a fully functioning, 3D part. It is also known as additive manufacturing, rapid prototyping and free form fabrication. It’s really not a gimmick! You can print strong, working, complex items. Look at this video of a working wrench being made. If you want to know how it works, read this. 3D printing is widely used to make prototypes, but is also now being used for part production. And if you need to scale up your business – just use more printers! The uses of 3D printing seem to be limited only by our imagination. In the future we could have 4D printing. Yes the 4th dimension is time! Benefits When used as part of a seamless digital manufacturing solution, these technologies help to reduce the time for design, prototyping, validation, training and ramp up to full production. And there are quality and cost benefits as well. It becomes quicker to: Retrieve information. You ask the system for what you want and it delivers it to your line of sight. Transfer information from system to system (no longer manual). Interpret the information you are given compared to a written Standard Operating Procedure. Capture, store and distribute lessons learned (instant rather than weeks). Create prototypes. There is no minimum batch size, no moulds or jigs to make and set ups are almost instant. It becomes easier to: Communicate results. Complex ideas can be shared visually with stakeholders at design reviews. Visualise how the product will look and fit together before making a prototype. This allows designers to identify and resolve problems earlier in the process. It also minimises the number of physical iterations. Simulate assembling the parts to eliminate operator motion waste later in the process. “Immersively” train operators in advance of production. Next weeks blog will look at other smart technologies and their impact on eliminating waste from our processes.
December 3, 2015 Industry Forum Blog How will it re-shape our business and daily lives? The best description I have found is this. “The creation of a digital thread that seamlessly ties together the flow of information from design through manufacturing to end consumers, including the full life cycle of the product.” Digital manufacturing is not just machines talking to machines on the shopfloor, but the shopfloor talking to design, maintenance, stores, sales, planning. Also, the business talking to suppliers, consumers and the actual product in use! I’ve shown some of these in this diagram. Digital manufacturing is also known as; Industry 4.0, Cyber physical systems (CPS), Internet of Everything, virtual manufacturing solutions and advanced manufacturing. It depends whose selling it! Why is it different to ERP, CAD or CMMS? Enterprise Resource Planning (for business activities), Computer Aided Design and Computerised Maintenance Management Systems only represent part of the overall picture. Most business will also have other digital systems; for controlling robots, supplying quotes, testing and validation. Typically none of them are linked together and so don’t feed each other information, without some form of manual intervention. Also the data collected is stored in “silos” and either analysed reactively or dumped. If the systems don’t exchange information they can’t enable changes, control settings or allow “learning”. And if data is kept in separate silos then no linkages can be made. So digital manufacturing is about the connection of all the different systems from one end of the supply chain to the final consumer. This allows end to end exchange of information. Three of the big enablers for this seamless connection and advanced analysis are the Internet of Things, cloud computing and big data analytics. What are the potential benefits? I’ve deliberately used the word potential here. It’s estimated that currently only 3% of equipment and systems are connected in some way. But it’s changing really rapidly. Most people in the business are talking about smart factories, smart machines, smart tools and smart supply chains as well as smart products being a widespread reality by 2020/25. This take up is helped as cloud technologies and scalability makes it increasingly affordable, even for SMEs. However these are the main benefits that are currently being, or will soon be, realised. Benefits in the factory and supply chain Reduced time for new product development. This is assisted by the use of virtual reality, augmented reality and 3D printing in design, prototyping, simulation and testing. These technologies are giving us; reduced potential for error, proactive issue resolution, cost reductions and quicker right first time build. Streamlined feedback loops, reporting processes and near real time information analysis. Improved energy and resource efficiency, resulting in a reduced carbon footprint. Improved predictive maintenance systems, in turn raising safety, performance, availability and reliability. Instant compilation and quicker retrieval of data for compliance purposes. Benefits across the customer interface Highly customised products are supplied, as increasingly flexible equipment allows individualised mass production. Cost reductions, as systems supporting installation, service and maintenance are linked. Enhanced purchasing experience, as smart products allow additional information to be seen by the customer using their smart phone. Improved customer service, as cloud based speech analytics continuously improves responses to the customer. Next week I will expand on some of these specific digital manufacturing techniques and how they will impact our improvement programmes. Thanks to AES, Bentley Motors Ltd., EveryWare Ltd, FORCAM, National Instruments, Cambridge Wireless and Siemens at the Advanced Engineering Show 2015, UK. Your visions of the future and enthusiasm inspired me to write these blogs.
November 25, 2015 Industry Forum Blog If you’re like me, a non-digital native, then you may well have been trying to make sense of the terminology being used today which is shaping tomorrow’s world. A non-digital native is anyone born or brought up before the widespread use of digital technology. That’s most of us over 30 – sorry! In this blog I offer a simple explanation of the cloud, the Internet of Things (IoT) and big data, all without using the word paradigm! This is the first in a series of blogs that look at how these new technologies will influence our daily lives, the way we manufacture and the impact they will have on lean, NPI and TPM programmes. Before we start, bear in mind this is a fast changing field and today’s descriptions are quickly changed. The use of these terms as marketing buzzwords also confuses the picture! The Cloud Cloud computing is where you access the computer services you want to use, by using an internet connection. This is instead of you owning them and having them located on your own equipment and premises. The provider charges you for what you use, rather than you buying, running and maintaining these systems for yourself. You need a portal (like a PC, laptop, tablet or smart phone) and an internet connection to access them. The main service categories are: Infrastructure as a Service (IaaS) – the servers and data storage devices. Platform as a Service (PaaS) – the operating systems. Software as a Service (SaaS) – applications and programmes. Cloud providers offer these services in all sorts of combinations. Read this great article about the biggest providers. I wondered how cloud computing was different to the internet as they both use the same technologies. The difference is where it is housed, who owns it and how we pay for it. It may surprise you to know you are probably already using cloud services (even if you are not paying for them at point of use). Facebook and Twitter use cloud technologies as do WebEx and GoToMeeting. Internet of Things This is the network created when physical objects connect with other equipment by using the internet. Machines talk to machines (M2M) and computing systems make use of the data sent between them. The physical objects, embedded with electronics, sensors or software, are known as smart devices. Already terms like smart phones, smart wear, smart products, smart factories and smart cities are appearing. Nest is a good example of IoT in action. It allows us to remotely switch on our heating, using our smart phone to connect with our thermostat. Big Data This is where large Volumes of data from a Variety of sources stream in for collection at high Velocity. (The 3 V’s are important). Because so many different sources are analysed, the outputs are used at a more strategic decision making level than the information generated by the IoT. This article explains what big data can and can’t do. Do they work together? Yes! The three are closely interlinked, for example. Big data analytics uses cloud computing for the volume and speed needed to produce meaningful linkages at an affordable cost. One of the sources of data it analyses is from the IoT. The IoT also uses cloud technologies and can incorporate big data analytics to enhance the level of information generated and used. The Nest uses big data analytics to teach the system to “set” itself. Still with me? Great! Our next blog will look at how these three enabling technologies are shaping future manufacturing.
November 18, 2015 Industry Forum Blog Although the title is a well known saying and a popular song lyric, it is an excellent analogy for all of us who strive to improve our businesses, by deploying lean techniques. I read two articles this week that mentioned the importance of certain lean techniques. However they stood out for very different reasons. The first, “How manufacturing employers are getting lean”, revealed that in a survey of 25000 manufacturers and distributors in the US, the use of various lean tools is on the rise. In particular 5S is now used by more than 71% of the respondents, compared to 66% in 2014. Initially I thought this was an encouraging trend. However as I read further, it concerned me that 5S seemed to be considered as a stand alone improvement programme, with Kanban, Takt Time Analysis and Value Stream Mapping named as alternatives. The second article, “Solving the Productivity Puzzle”, highlighted the views of the Manufacturing Advisory Group on what the UK needs to do to raise national productivity. On the subject of calculating product costs they point out that: “The lean capability of learning to see waste is the foundation of driving productivity up.” The key words that stand out to me are waste and foundation. 5S and 7 Waste are two of the tools that we use to create a foundation for improvement and prevent our “castle sinking into the quicksand”. Getting the foundation right for improving your business I learned that at the heart of the business philosophies of companies like Toyota, Nissan and Honda, lies a foundation block of improvement tools. These are 5S, 7 Waste, Visual Management and Standardised Work. They are called the foundation tools because they are used to stabilise the performance of the workplace. Correctly deployed they enable you to repeatedly achieve customer satisfaction, in terms of quality, cost and delivery (QCD), and at the same time make a profit. When you are in a stable position you have a known performance level and you will have got rid of many of the daily problems that consumed your time. In other words these tools stabilize the quicksand and provide the time and a solid base upon which you can carry out true improvement. True improvement in this context is the ongoing: elimination of waste elimination of variation reduction of cost These actions will improve the competitive position of your business – build your castle! Successful deployment of tools like kanban and Value Stream Mapping, and techniques used to achieve working to takt time, rely on having stable performance to start with. They don’t work if you can’t repeatedly perform at the same level. The secret to stability Use all four of the foundation tools together. Used individually, each tool will result in some cost reductions and performance improvement. And the continual identification and elimination of waste is at the heart of continuous improvement. However waste has a way of creeping back, standards slip and the gains are slowly eroded. I found that the key is to use 5S, Visual Management and Standardised Work together to lock into place the improved processes and prevent waste creeping back in. Top tip: If it is proving very difficult to achieve that stability try some structured Problem Solving. If you want to see some examples of these tools in action look at the Lean Awareness and Process Improvement Activity MasterClass case studies or contact Industry Forum.
November 11, 2015 Industry Forum Blog There are big benefits to be had whether you are redesigning an existing work area or planning a new site. Toyota’s new generation factories are planned to be 25% smaller, require 40% less investment and use 40% less energy to run than their current plants. On an environmental note, this means 55% less CO2 emissions! At the other end of the scale, when redesigning existing manufacturing areas, we would expect to achieve productivity increases of between 15% – 40%, as well as 50% reduction in lead time and work in progress. Further improvement to the bottom line is made by either selling off or making more goods in the space you free up. This level of improvement is typically achieved by teams of operators and engineers from the area, in a Kaizen style event. So how do we go about a redesign? Below are 4 steps learned from a Nissan Master Engineer. Note that their order is all important – any deviation will result in a line with wastes. Learning the painful way meant that when a shortcut was attempted, the team were commanded to return to step 1 and start again! Start with a blank piece of paper Always! Don’t even look at a floor plan of the existing area. Although it’s tempting to start by fitting equipment into the available space, don’t do it. You inevitably start working around existing pillars and walls and placing items near utility connection points. This rarely results in a waste free layout. Define the process List the operations in the order they take place, to build the product. You may already have this if you have done a line balance activity. Make sure you understand which products can be made using the same pieces of equipment. A process matrix is one way of doing this. Flow the operations This is where you design the ultimate lean layout. Use scale cut outs, or models, and lay them out on a blank surface. Don’t use a scale layout of the area yet! Aim to minimise the movement of parts, movement of people and movement of information. Again, the order is important. Tip: Improve flow by introducing chutes, ejectors, channels or roller tracking between equipment load and unload points. 4. Fit your ideal layout into the building plan Now that you have created the ideal, waste free layout, you can start to fit it into the space you have. Transfer your scale pieces on to a same scale layout of the building, maintaining your ideal layout as far as possible. Tip: Make sure you consider: Space for the flow of materials in and out of the cell. Easy access and storage for frequently used tooling. Space for standard in process stock and any WIP required. Access for maintenance. This is the point where compromises may have to be made and some waste may creep back in. However, play with your layout plan to minimise the waste as much as possible. Once you have used the four steps to plan your lean layout, it is recommended to simulate a trial before making expensive physical changes. A favourable way is to make full scale card cut outs of equipment footprints. Although, one time an overenthusiastic team also chalked out a body outline in the cell, just before we presented it to the senior team! Finally, ensure you document the improved process and layout using Standardised Work documents. Good luck creating your ultimate lean layouts! – November 2015 authored by a Senior Consultant at Industry Forum Update A great reflection on the process to design cells, in particular, the advice not to constrain your thinking when beginning the design process. Design what the ideal layout would be first – regardless of physical constraints such as walls, pillars etc. then work back from this. The layout should be driven by the line balance, as indicated in point 2. The line balance ensures the cell is designed to meet customer demand, and that the cell manning is correct. The distribution of workload across cell team members is essential to know when designing each workstation. This should take into consideration the position of the work piece and tools required, and also the line side logistics. By logistics, this is not just how the work piece moves into and out of the work station, but also what components need to be available, and how the pick face should be designed to enable the work station to operate efficiently. This can become quite complex, particularly if the cell is producing mixed model. Getting this right is essential for highly repetitive assembly cycles. If you want to understand more about lean techniques, visit our Lean Transformation page or Line Balance blog or click here to get in touch with Principal Lean Consultant , Mike Scull. You can also give us a call on +44 (0)121 717 6600.
