Category: Industry Forum Blog

Usually when I ask a company what their target is for their Health and Safety measure of choice, I am quoted a figure greater than zero.

“So you are planning to have an accident? A death? Time lost at work? A pollution incident or perhaps just a few fires?” is my immediate question.

This does normally make people pause and think!

We can’t justify setting an acceptable level for harm to people, equipment or the environment – unless it’s zero.

Put the boot on the other foot. Do you go to work in the morning and expect to come home with all your fingers and toes? Of course you do.

So how do we achieve this?

Over the last 4 decades I have been exposed to various H&S approaches.

In the 80’s the emphasis was on completing the “Incident, Accident, Near Miss” form. It was viewed as an administrative evil and the usual action to prevent a repeat was “told the operator to take more care”.

Then in the 90’s I was instructed that this just wasn’t enough. We needed to find more tangible ways to prevent the accident from reoccurring. I seem to remember sending a FLT driver who had hit a large pillar for an eye test and using of a lot of yellow paint to highlight obstacles!

I can feel you squirming at my unenlightened and reactive approach to safety. In this millennium I think we have tried to be more proactive. The emphasis has switched to prevention rather than taking steps after the event to stop it happening again.

Unfortunately we have then been exposed to, shall we say, some overzealous officials using the H&S name in vain.

A quick Google will reveal many ridiculous examples of H&S “gone mad”. Everything from children having to wear goggles to play conkers to removing door mats as they are a trip hazard.

Of course the problem created by the “Safety Elves” is that all the genuine advice and regulations are viewed with extreme speculation, or worse ignored. What’s even more insidious, if we wrap everybody and everything in cotton wool, how will the next generation learn to recognise potential hazards and estimate risks?

The Health and Safety Executive responded by setting up a Mythbuster Helpline where you can challenge disproportionate or legally inaccurate decisions made in the name of H&S.

At last we can have tea cakes served untoasted and understand the risks associated with doing tumble turns in the swimming pool.

Have we a sensible option?

My faith in a sensible approach to H&S was restored when I discovered Total Productive Maintenance (TPM), and in particular the Safety, Health and Environment (SHE) pillar.

In brief it encompasses both a reactive and a proactive approach to achieve zero accidents (slips, trip falls etc.), zero overburden (physical and mental stress) and zero pollution.

Over time the proactive approach becomes dominant and the culture shifts from a corrective control environment (think me in the 80’s) to one where the whole team acts together to achieve the goal of zero accidents.

To do this the team members draw from a range of SHE strategies that address both behaviour and equipment generated accidents.

This article lists some of the more common ones used by JIPM award winners. These companies have achieved many years of zero lost time and environmental accidents.

So to answer the initial question is yes, you can achieve zero accidents.

To find out how the SHE pillar can help you contact the IF team.

Kanban is a Japanese word that translates as signboard or billboard. In a manufacturing setting we interpret it as “signal”.

Taiichi Ohno is credited with developing the idea in Toyota, after observing how high street supermarkets worked.

He noticed that a shopper only buys what they need, when they need it. In turn the supermarket only stocks what it can sell at any given time. The store maximises its sales for the area it has, and maximises profit by ensuring there is little waste like unsold and out of date goods.

In a similar fashion, kanbans in our factories are used to align the supply of goods with downstream customer demand and eliminate waste.

The kanban is a visual signal that gives permission, or instruction, for the receiver to do a specified action. Originally produced on cards, kanbans can also be small objects or even product bins.

How can it help you?

Kanbans are primarily used as part of a pull system. They:

• Prevent overproduction, one of the 7 Wastes. Without a kanban you can’t produce!
• Help keep the flow of product at a steady rate. This is very useful where a single resource, like a press, is used for multiple products, resulting in batching.
• Reduce the amount of inventory (another waste) needed to keep a system flowing. This reduction releases cash and helps us to complete the cash flow cycle more quickly.
• Control the amount and movement of inventory.

How does it work?

This is best explained using the diagram and starting at process G.

G receives an order to produce in the form of a “withdrawal kanban”. This gives permission for a person to take a specified quantity of named parts out of the supermarket.

The withdrawal triggers a “production kanban” that travels upstream to process F. It gives permission for F to make a specified quantity of the parts. These replace what was taken from the supermarket.

Rules and conditions

Kanbans have to have rules to work and these must be strictly followed.

• No items are made or transported without a kanban.

• Pull don’t push. The downstream process always starts the flow.
• Only make the number of items specified on the kanban.
• Do not pass on defective units.

To set up a successful kanban system, you need a stable production process to start with. If you have high unplanned downtime, poor right first time or lengthy and unpredictable lead times you will end up planning in excessive inventory.

If there are any flow issues with your kanban system, like you run out of parts, then treat it as an opportunity for improvement. Identify the root cause and countermeasure it.

Electronic kanbans

Electronic kanbans are used for real time signalling across the supply chain. Instead of the kanban cards being moved by people, the information in bar code form is scanned using a card reader.

It is sent through an Electronic Data Interchange (EDI), or over the web, to the upstream supplier, who prints them out for use.

Other uses for kanbans

Kanbans are so useful at waste elimination that they are also used outside the world of automotive manufacturing.

Have a look at the four case studies in Mattias Skarin’s book Real-World Kanban. In one, kanbans are used to pull software development through the design and development stages.

For help in designing and deploying kanbans or pull systems, contact the team.

Every aspect of our modern day supply chain is being optimised. Whether B2B or B2C an ever increasing array of products needs to be sourced, manufactured and delivered more efficiently.

In our last blog we looked at the reasons why the way in which we select, order and receive our goods is undergoing a radical change.

Here are 10 ways in which technology is being used to drive down costs and environmental impact, at the same time as meeting our tougher demands.

Some of these changes may sound far-fetched, but they are all being used or trialled right now.

Selecting and ordering

1. Most of us have probably already ordered direct via an app on smart phones and home computers.

Yesterday I ordered a pair of curtains on line. They were delivered free in under 24 hours. I could not have picked them up from my nearest store any quicker, or cheaper!

2. Objects or goods can also directly order a service or spare parts, if they are part of the Internet of Things (IoT).

My new British Gas boiler is supplied with Boiler IQ. It’s feasible that the first I know about a drop in performance is when the engineer phones me to arrange the repair.

Manufacturing

3. Goods are starting to be manufactured in smart factories and cloud computing is enabling entire supply chains to work in sync, reducing inventory and waste in the information flows.

The days of ERP systems scheduling weekly buckets (in a linear fashion), will be replaced by real time integrated systems that share demand, inventory and capacity information.

4. Predictive analytics (Big Data) is increasingly deployed to predict consumer’s requirements. The aim is to make exactly what is required, as close as possible to the time it is needed.

Storage and picking

5. Intelligent storage and distribution space allocation software is being used to improve accuracy and control of inventory.

6. The use of indoor GPS systems is allowing FLT drivers to increase pallets stored or retrieved by 30% per hour.

7. Operators with wearable tech will be able to work more quickly than using hand held devices.

8. Collaborative robots with “vision” are being developed to work alongside human pickers in warehouses.

Distribution

9. Smartphone apps and GPS, support real time integrated delivery tracking from despatch right through third party delivery companies and to the customer.

I knew where my curtain delivery was at all times.

10. The growth in delivery options are, in my opinion, the most eye opening changes. We have:

• Uberized trucking. Mobile apps can help you find a faster, cheaper carrier. Equally they allow drivers to maximise payload, reduce fuel bills and ease congestion.
• Autonomous delivery vehicles, due in London at the end of 2016, and drones are already in use. Both need less infrastructure than traditional manned vehicles helping ease congestion.
• Lifestyle couriers, like the lady who dropped off my curtains. There are now tens of thousands of self-employed couriers in the UK alone, usually working hours to suit themselves for 3^rd party carriers.
• Thousands of parcel shops and mini locker systems are also used by these carriers. They offer greater convenience and often cheaper services for many consumers wanting to return or receive goods.

Many of these systems are simple to install and use. They are increasingly affordable, scalable and can be added to existing equipment and operations.

This means your local craft brewer can access customers as readily as any large manufacturer.

If you want assistance on remapping your business, bear these developments in mind or contact the team.

If you are reading this blog then I can guarantee that your lifestyle has led to dramatic changes in our supply chain and logistics functions. I know this because you are clearly not an off-grid spoon whittler in the wilderness of Alaska. You are a consumer used to having goods and services delivered direct to your home, place of work or even your smart phone.

The way in which we are selecting, ordering and receiving our goods and services is undergoing a radical change. In fact what was once considered the end point of the supply chain, the final delivery to the customer, is now no longer the end. Thanks to the Internet of Things we are now interacting with the supplier long after we have received and started using the item.

And, if we return goods that are either not what we wanted, or for recycling, then we are engaging in what is now termed a reverse or circular supply chain.

Our demands have changed

Not only do we now demand fast delivery times, but we want items delivered to wherever we are, not just to an address. And while we might be prepared to pay for express delivery, we want free options as well.

We want to choose our own set of features, not just accept an available product. This increases the complexity of the supply chains. Manufacturers are faced with more frequent change overs of equipment and potentially more stages and hand offs within the manufacturing process, as more departments become involved with making each item.

We also expect to be able to change our mind and return unwanted items at no cost to ourselves. This trend is on the rise as we buy more and more items on line.

Our supermarkets are also becoming more demanding of the manufacturers. I’ve noticed a new trend; where once we would have found separate boxes for each variety of a product, we now find the same size box with a mix of three.

More choice in less space is good for retailers, where availability and maximising sales/m² are key drivers. But again it adds a level of complexity to the supply chain.

Added to this, our demands are made against a back drop of rising transportation costs and increasing pressure and legislation to reduce any negative impact on the environment.

It is estimated that 50-70% of a company’s profits are eaten away by supply chain and logistics costs.

The supply chain response

Manufacturers, suppliers and logistics organisations are responding to these pressures and making changes to the way that goods are ordered, made, stored, despatched and transported.

Every component of the supply chain is under the microscope and a combination of lean techniques and new technologies are changing the way our supply chains work.

Here are a few examples:

1. As well as eliminating waste using traditional lean techniques, the creation of value streams run by cross functional teams, works well to reduce complexity in the manufacturing part of the supply chain.
2. Late customisation of items is another manufacturing response. Although this can work well, where flavourings or colour are added late in the process, it is not a viable option for all.
3. The use of real time integrated systems (supported by Cloud computing), wearable technology, GPS and 3D printing is also being deployed to take waste and non-value adding elements out of storage and distribution operations.

Next week we will take a closer look at some of the changes made possible by using new technology.

In the 90’s I worked in an amazing old 4 story mill where we made replica football kits. Half of the bottom floor was dedicated to incoming rolls of material and outgoing finished shirts and shorts. While some problems were instantly apparent, like transporting all the material to the top floor to be cut, others were less so.

Our business was expanding and in 1 year alone we doubled the order book. I had to increase the workforce and invest in more equipment. The biggest increase in staff was for material handlers, we barely kept material flowing round the plant. We bought extra cages, opened up an old warehouse across the road and tried to breathe life into an old conveyor system.

Then one day the cutters on the top floor ground to a halt. “What’s the problem?” I asked. The young material movers took me downstairs to the warehouse. Every shelf was full of rolls of material – so why nothing to cut?

If you’re a long suffering football fan you’ll know there is a new kit available at least once every season. I found every shelf was full of obsolete stock. There was no room left to bring in any new material!

The person ultimately in charge of the business was an accountant by trade. As inventory is traditionally reported as a current asset on the balance sheet, he couldn’t bear to write it off.

Instead of getting rid, or moving it to a more remote location, we had to hire containers for the new rolls.

Fortunately since then, I have learned that excess inventory is one of the 7 Wastes. Excess means anything more than is required to maintain the process flow.

Now I’m in a better position to question an accountant’s logic.

Have a look at the problems that are associated with excess inventory.

Hidden costs

1. Physical storage for any inventory not being worked on – off site warehousing, shelving. And in non-manufacturing businesses – computer memory storage, archives and in trays.
2. Upkeep of storage space – rents, rates and power bills.
3. Cash is tied up in inventory, it is something you have bought but have not yet sold. Too much inventory can result in cash flow problems.
4. Transporting inventory to and from storage – people, equipment such as FLTs, conveyors and trolleys. Add on the running costs and maintenance of that equipment.
5. Cost of stock taking – people and equipment.
6. Potential damage during handling and transport. Not just to the product but to infrastructure and injuries to people.
7. Cost of protecting the material during storage – special lighting, temperature control, coatings and preservatives.
8. Insurance for items in storage.
9. Costs associated with stock rotation – people and equipment.

Other problems

1. Money and storage tied up in slow moving and obsolete stock prevents purchase and incoming deliveries of material required now. This can result in late deliveries to the customer.
2. Holding high levels of inventory masks other problems:
   • Raw materials hide supplier delivery problems.
   • WIP hides bottlenecks, unplanned downtime, idle time and excessive operator motion.
   • Finished goods hides quality problems which can lie undiscovered until the customer finds them.
3. High levels of finished goods are a risk. They can become obsolete due to cancelled orders or a specification change.

Ask yourself “Do I incur any of these costs and problems?” and “What else could I do with the space, time and money tied up in excess inventory?”

As we enter the Fourth Industrial Revolution the various asset management and Computerised Maintenance Management Systems (CMMS) offer bigger, better and more affordable solutions than ever before.

Instead of using your own computer network you can buy into cloud based systems. In the world of interconnected devices every user can access the system using tablets or smart phones.

Even the machines can connect direct to the hub, feeding information back for analysis and receiving instructions to optimise running conditions. Old equipment? No problem, there are plenty of low cost retro fit devices for monitoring key parameters.

And of course all these systems are scalable, you can start small and add as you go along.

But before you rush out to buy the latest sensing technology and cloud based multi-screen service there are some important things to do to ensure you get the best out of your investment.

1. Decide on your maintenance strategy – how much are you willing to spend and for what expected benefit?

What is the overall goal of your maintenance strategy? Are you planning to maintain the same level of effectiveness and reduce maintenance costs or, continue to spend the same on maintenance and increase effectiveness?

Figures from Dupont’s 1991 benchmarking study showed that:

• Minimising maintenance costs while maintaining plant efficiency at the current level of 83.5%, would save them $1.2m per year.
• Maintaining the current level of maintenance spend and improving efficiency to 93.3% would increase profit by $9m per year.

The choice here was described to me as a “no brainer!”

2. Select the most important pieces of equipment

With the lure of relatively cheap devices, say £100-£150 per sensor, it may be tempting to connect all your equipment.

But is this the best use for your money? What value will you get? Will the mass of information cause you to spread your maintenance resources too thinly?

Most of us do not have the luxury of unlimited maintenance crews. You can focus the allocation of spend and labour by identifying your most critical items of equipment.

Simple tools like Value Stream Mapping and structured equipment ranking systems will help you do this.

              3. Maintain that equipment well

From a lean manufacturing viewpoint your assets generate value by being available to run when they are required, at the optimum speed and produce the right quality.

This is opposed to the traditional view of creating maximum value by running the equipment at all times.

Key to maintaining equipment availability is being proactive and looking after the equipment itself. Not just monitoring it and reacting to break downs.

And a final thought. When selecting CMMS features, which is more important – equipment efficiency or maintenance efficiency?

Concentrate on improving equipment efficiency before tackling maintenance efficiency. Having to repair items less frequently is better than being able to repair them quickly.

Now you are in a position to invest in technology to further improve both equipment and maintenance efficiency.

• You know what budget you have and what you want to do with it in terms of plant efficiency.
• You can prioritise which equipment you want to spend it on.
• You have a solid starting base of well-maintained equipment. This prevents you wasting money on reactively monitoring equipment that is prone to failure.

You can now pick the technological interfaces which will benefit your human resource the best – eliminating wasteful tasks and enhancing the team’s problem solving and diagnostic capabilities.

Related article

10 top tips for choosing the right CMMS software for your planned maintenance needs. Read more here: http://bit.ly/1RVdABY