To The Gemba

6 Principles of an Effective Lean Management System

2011-05-30T10:41:00.000-04:00

Many years ago, I had the good fortune to tour a manufacturing facility that had a fully implemented lean system. This was during a time when lean was new to most companies in the US. The plant that I visited had been set up by the Japanese arm of this company, apparently the Lean Management system had been transferred from the mother company. As I walked through the plant, I saw many examples of lean in action. I was amazed at the way product moved through the shop from one end of the building to the other. It was evident that one piece flow was fully integrated as I saw many examples of one operator performing 4 or 5 basic process steps in very simple cells..

Today, there are many companies that claim to manufacture in a “lean way”. Rearranging pieces of equipment so that material flows in a one piece flow is pretty straightforward. Conducting Kaizen events initially gets everybody excited and results in large, noticeable improvements. Management sees the improvements and supports the “new program”. More Kaizen events are conducted, and more improvements are seen. Everyone seems to be on board. Lean is mentioned in every major employee meeting as the way things are done around here.

After the initial success, many companies seem to struggle to sustain a Lean System. How can that be if lean is so simple? It is because the Lean Management system is never established. As a result, the culture never fully develops. Without a Lean Management system, teams that had a lot of support are now left to take care of their own area. Improvements become less and less frequent. Because the “water has been lowered” from the previous Kaizen events, the problems are very noticeable and everywhere. Long lists of improvement projects are identified, but they overwhelm the team resources. The operators become frustrated because they are now being held to certain production quotas based on time studies of the newly designed manufacturing cells. Many times, these numbers can’t be met because equipment issues arise that do not immediately get addressed, affecting quality and output.

So how does a company go about establishing a Lean Management System? Below, I have identified six principles that management must do to create a lasting and effective lean culture.

1. Management must be fully committed to the lean approach. This means that the old mass production mentality must be driven out. The management team together must go to the gemba every single day. It is only when the management team sees the issues for themselves that they can determine how best to support the manufacturing floor. Literally, management needs to “walk the talk”.

2. A Value Stream Manager position must be established for each major product line. The position must have a high level of authority and autonomy in order to assure success. The VSM has ultimate responsibility for the entire product line, starting with product development through the entire manufacturing process.

3. Respect and development of the production workers must be an ongoing effort. Most operators want to do a great job. They need to be trained in Lean Tools so that they understand how the production lines are intended to be run. It is a large mistake to not listen to their ideas and concerns. Beyond that, they are also a great resource on helping to create or refine documentation on a process.

4. A rapid response system must be in place so that supervisors, mechanics, and/or engineers can be called in as issues arise. The support staff must be given the resources it needs in order to take immediate actions or put in place appropriate countermeasures. Adding more support staff will increase overhead costs which becomes a reason why management often overlooks this necessity. But a lean system without the right level of support will never work and the team will be doomed to failure. Having a lead person dedicated to overseeing production in real time is the first line of defense in monitoring production and addressing any issues that arise.

5. The lean system must be set up in a visual way so that issues are readily apparent at all times and especially during gemba walks. Hourly, daily, or weekly metrics must be posted to track performance on output and quality. The work area should undergo 5S so that unneccesary equipment and materials are removed and the area appears clean and well organized. FIFO lanes must be established so that WIP levels are easy to monitor and it is always obvious when there is too much or too little inventory.

6. A continuous improvement system must be established and maintained. The entire team must take responsibility to assure that improvement ideas that have been identified are followed through. Management must recognize that most of these ideas are worth pursuing, and well worth the time and financial resources that will be required. Since the operators are the people who are closest to the gemba and know the products and equipment better than anyone else, they need to be involved in daily Kaizen activities. Many of the smaller improvements can also be handled at that level, which will help to spread the resources needed and will give them a sense of accomplishment.

Over time, the Lean Management system will become natural and will change the mindset within the company. The culture that is so desired by many companies wanting to be “lean” will be realized. It will take on a life of it’s own that will allow management to steer and guide, refining as necessary and building towards a more complete approach. It will truly become a never ending continuous journey and not just a new system that was tried but only lasted for a while and quietly faded away.

As always, I'd love to hear your thoughts. Are there other principles that you would include as essential to an effective Lean Management System?

How To Navigate Around The Next Roadblock

2011-04-25T19:42:00.000-04:00

Recently one evening, I was driving home from a meeting when I suddenly came upon a roadblock. There was a sign that said “Detour Ahead”. Feeling irritated, but wanting to get home, I had no choice but to follow the detour, not knowing the road it was taking me down. Eventually of course, the road brought me back to familiar surroundings, and I was able to make my way home. Afterwards, I reflected back on this incident and thought about the many roadblocks that I encounter each day at work.

Unfortunately, roadblocks are a fact of life. They can stop us dead in our tracks. Most of us find it easier to ignore the roadblock and just move on to something else. But, when the boss stops by to check on that project, it can be an unpleasant experience to tell him that nothing has been accomplished. Anticipating these situations and finding effective ways to deal with them helps to keep the stress level down. Having been in this situation myself in the past, I decided to find ways to keep tasks and projects moving. So, here is my list of common roadblocks and the methods that I use to work through them.

I propose a solution to a problem that I have worked hard to figure out, but nobody likes my idea. To get around this situation, I like to be prepared by suggesting 3 alternative solutions, if needed. At the very least, the odds of one of my ideas being accepted goes up. Also, my team will sense that I am open to more than one way to accomplish something. They may be willing to at least partially support one of my ideas and at the same time they may come up with a variation on my original proposal that I will find to be acceptable.

I am given an assignment, but I really don’t know where to begin because I don’t have all the facts. I do not fully understand the problem. I go to the gemba so that I can gain a better understanding of the issue. This will allow me to dig deep until I fully understand all aspects of the issue. Afterwards, I will have a clearer picture of how to proceed and I will be in a much better position to deal with the assignment.

I have no buy-in from key stakeholders about an issue that I have discussed at length. I don’t give up, instead I try to find common ground with others and be prepared to compromise provided we do not lose sight of the end objective. Also, I consider bringing in a subject matter expert who can provide a deeper background on the subject.

I feel overwhelmed with the size of a project. As a result, I procrastinate and don’t know how to get started. I try breaking the task down into smaller sub-tasks that are easier to complete. I keep a detailed list of all of the tasks that need to be accomplished. Generally speaking, my list can quite long, but I don’t let that bother me. It serves as a constant reminder of all the things I need to do to get the project completed.

I don’t have enough time or resources to complete the task. I arrive at work 2 hours earlier than normal, and focus only on the task at hand. Usually, when I do this, there are little to no distractions in the early morning hours. I am always amazed at how much can be accomplished when there are no interruptions.

And lastly, just like running into that detour in the road, sometimes the best solution is to work around the roadblock. I will look for an alternative approach to completing the task at hand. It may take longer to get to the end goal, but I will eventually get there.

So, that is how I do it. No system is perfect, certainly not mine. But it has helped me to stay on track as much as possible. In the spirit of sharing, I am hoping that you will tell me about some of your ideas. How do you deal with the roadblock? Are there other techniques that you use to bring a task or project to completion? What has worked for you?

Our Daily Gemba Walk

2011-04-18T22:12:00.000-04:00

1-2-3, teamwork!”. The saying changes from day to day, but no meeting ever ends without a cheer. This is how our ‘all hands on deck’ team concludes our daily 15 minute meeting. It always leaves a smile on my face. It’s a great team, made up of just a bunch of average folks trying to do a good job. The meeting is how we conclude our daily Gemba walk through the area. During the meeting, we review our performance for the past 24 hours, and identify what the team goals are for the day. If time allows, a couple of minutes is set aside at the end to do some “lean learning” with the team.

The Gemba walk starts before any other activites, and during the best part of the day... in the early morning. This is when our team has the most energy and a fresh new outlook on things. It is a time when everything around us can be reassessed from different angles. It comes before I have my cup of coffee (at work), before I check my email, and before I attempt to complete my first task of the day. In order to assure that this all happens every day, we block our calendars for the first 2 hours. People know that we are not available for meetings during this time. They understand that the manufacturing floor is priority number 1 and where the focus needs to be. They understand that the process cannot be managed from the office desk.

We look forward to checking in with the production folks so that we can discuss with them what types of issues they are dealing with. Many times, we will review with them various improvement projects that they are involved in and offer any help that can be provided. Most operators want to do a good job, but require coaching or resources in order for them to succeed. As lean leaders, it is our responsibility to be there and offer support.

While Gemba walking, the area supervisor and I make a quick pass through the various production operations, looking at WIP levels, the cleanliness of the operation, and any scrap that may have been generated. We spend time every day trying to dig deeper into root causes of problems that are not well understood. Sometimes, it is like a roadblock has been placed right in front of us. When this happens, we realize that the only way to truly understand an issue is to try “doing”. This may mean that we will operate a piece of equipment ourselves. In the process, we learn the small little details that would otherwise go unnoticed. It is in these details that solutions to problems become clearer. The operators also love this level of involvement.

Once the meeting is over, our Gemba team generally will spend some more time on the floor discussing in detail the most critical issues going on. It is a time to determine next steps or to put in place countermeasures to address potential problems from becoming larger. After the immediate action plans have been initiated, we will discuss (maybe I should say “debate”) whatever the lean solution is. These become the seeds of continuous improvement, and the best ideas usually originate from these debates.

By now, a large amount of progress for the day has already been accomplished. We have a pulse of what is going on, what needs to be done, and what further improvements are possible. In the process, we have involved the operators. We can never forget that they are the most important resource. Just a great team made up of average folks, doing a good job.

Effectively Leading and Mentoring Others

2011-04-12T21:13:00.000-04:00

Let me tell you about Lisa. She is a welding operator who is relatively new with our organization. Prior to joining us, she had welding experience at another company. When she first joined, she had to go through a really steep learning curve, because the type of welding that we do is pretty sophisticated.

Lisa is the kind of employee who pays attention to detail and is very good at following instructions. When we asked her to follow the standard operating sheets, she did without exception. I knew that she was someone who could be developed with a little coaching and mentoring. At first, I found myself spending a lot of one on one time working with her. I didn’t mind though, because I knew it would pay off in the long run. I saw in her that she had the potential to be a very good and reliable employee.

Along the way, I also learned more about welding, just from being more involved in the details. I felt that if I was going to help her, I had better know what I was talking about. Sometimes, I would run the welding machine myself so that I could learn more about the equipement and also experience some of the frustrations that she felt. After all, this is part of the “Walk - See - Do” that this blog stands for.

As lean leaders, it is important to remind ourselves of the effect we have on others. We have a responsibility to teach others on how they can perform their job better. So how can we be effective mentors to others? A good place to start is to lead by example. This means that we need to demonstrate how something needs to be done. When I made a few mistakes trying to run the welding machine, Lisa first got a kick out of it, but I think she also appreciated the fact that I tried.

I have found that when teaching others you need to have a a great deal of patience. This is perhaps one of my greatest weaknesses, based on what my wife tells me from time to time. Once you show impatience as a leader, it will come back to haunt you. Yes, it has happened to me, but I am hopeful it does not in the future.

Since Gemba walking is a daily activity for me, I make it a point to stop by Lisa’s welding machine every day. This gives me a chance to check on the current situation, and it provides an opportunity for her to review with me how things are going. This also shows to Lisa that I can be counted on for daily support. Being consistent is another important aspect of leading and teaching.

Another technique that I use frequently is to ask challenging questions. This approach comes straight from the lean philosophy of asking instead of telling, so that others will have to think deeply to arrive at the correct answer. Lisa now knows the drill and it is almost a little game that we play every day.

Once someone has started to get it, they will naturally be proud of their work, with a new sense of confidence. It is very important to praise them and to provide feedback on how good a job they are doing. Lastly, once someone has successfully demonstrated learning (ie., they are finally trained), it is time to take a step back. Let them do their job. They need to feel empowered that they can now make decisions. It’s also ok that they make mistakes so long as they do not do excessive harm in the process.

I am proud of what Lisa has achieved. She is someone who can be counted on every day. Not all employees are as easy to teach as she has been. I am now looking for the next Lisa. I suspect that the teaching part won’t be as easy as it has been with her. So, tell me about people you have mentored. What were some of the challenges you faced? Did you try other techniques that worked for you? I’d love to hear your thoughts on how we can be better leaders and mentors.

4 Ways That The Quality Function Can Save Money

2011-04-10T09:13:00.000-04:00

The Quality Assurance / Quality Control functions can save the company a lot of money by being a proactive group to the organization. Here are just a few examples of how money can be saved:

Kaizen activities - Quality engineers that are actively involved in Kaizen teams can be a driving force for improvements, which ultimately can result in huge savings. Most quality engineers are skilled at analyzing data to provide a deeper insight into problems. Without this skill set, Kaizen teams can easily miss opportunities, and therefore not implement the best solutions.

Proper generation of 8D reports - It is critical that a thorough job be done when completing 8D reports for customer complaints. Not only will future complaints be avoided for the same issue, but it is also likely that the underlying cause has been resulting in yield loss. A customer complaint is always a great time to make a team focus on where problems exist. A very deep root cause analysis will drive the group to really understand what needs to be fixed. It then becomes obvious on what corrective actions need to be put in place.

Incoming Inspection function - by performing ongoing data analysis on incoming components, process capability can be monitored. If capability is good (> 1.33 ppk), then inspections on certain features can be moved to Dock To Stock status. If capability is low, then that information can be fed back with encouragement given to the supplier for improvement. It is important to work with the supplier to educate them on centering processes and reducing variability. Ultimately, this type of activity will make the product more repeatable and better centered to the specification limits. As a result, improvements will be seen downstream either at subsequent manufacturing operations or on the final product that the customer receives.

Calibration - where good gage stability is achieved (no issues or several calibration cycles), the frequency of calibration can be reduced which will save the company money. Many calibration checks often have to be sentto outside services. The less you spend on those services, the more money you save.

What other cost savings ideas do you have?

Implementing A Quality System From Scratch

2011-04-08T02:23:00.000-04:00

I recently visited a small company that seems to be growing at a rapid pace. I observed a bee hive of activity with people busy going about thier work at various stations. Everybody was very focused on the mission at hand - complete the work in process so that it would be available to ship out the door.

Here's the hitch. The work area appeared to be very disorganized, and large amounts of machining chips were piled up in multiple locations. When I inquired about the chips on the floor, I was told that because the guys were working 12 hour shifts, they were tired at the end of the day to clean up after themselves. There was a guy at final inspection who appeared to be checking the product going out the door, but it was unclear what specifications and drawings he was using to determine if the product was acceptable.

It's nice to see a company busy and productive, but I couldn't help but wonder what would happen if this company continues to grow at a rapid pace. From what I have seen with small companies, it's actually not uncommon to see this type of scenario. Typcially, small companies lack the resources or technical knowledge to be able to put proper systems in place. They are able to justify in thier own minds that they aren't getting customer complaints, the scrap rates are low, and the company is making money.

Many times, the business owner finds himself becoming more involved in activities away from the plant such as visiting customers, tracking down supplies, or dealing with outsiders on a wide range of issues. As the owner becomes diverted away from the operations that he once was closely involved with, he runs the risk of seeing things spinning out of control. This is a recipe for disaster if the company continues to grow.

Here are the key steps that the owner can take to begin to formalize a homegrown quality system:

- Hire a consultant who specializes in working with small companies in implementing quality systems

- Select one person (other than himself) to work directly with the consultant. This person must be well respected among the work force, and must have the talent and initiative to drive the implementation of a new quality system.

- Develop a documentation system to formalize the structure of management policies, procedures, and work instructions.

- Develop a traceability system so that all raw material, WIP, and finished goods material is properly identified. This will become the foundation for control of the process and for future building blocks as the system matures.

- Implement controls for outgoing finished goods so that it is known and documented that product going out the door meets customer expectations.

- Implement controls at incoming materials so that it is known and documented that product coming in the door meets customer expectations.

- Implement a Corrective Action system so that as issues are found, there is a structured system in place to properly identify root causes and then take corrective actions.

- Implement a monitoring and reporting system of key metrics so that there is a feedback mechanism that management can use to measure performance.

The above steps are just a starting point, but it will provide the building blocks that will start to bring structure to the system. Beyond the implementation of a Quality System, the organization can benefit from waste reduction using lean tools. A great place to start is to get the entire work force to embrace 5S activities. This alone will make the work force feel better about themselves, which will be great for moral. Showing respect for the work force is the most important aspect of any lean implementation. Then, the beginning stages of Kaizen can start to take shape on a small scale. This will be the starting point for ongoing continuous improvement.

Of course, the process doesn't stop here. There are many other aspects of quality that will need to be incorporated as time goes by. In future posts, I will expand my thoughts on this subject. Please feel free to post your comments.

How to Build a House in 3 hours

2011-04-02T14:33:00.000-04:00

This is an excellent example of planning, standard work, teamwork, and innovation. Also, they were able to cut the time in half from "learning by doing". Please share your thoughts with me. Here is part 1:

And here is part 2:

What Do You See?

2011-04-01T10:28:00.003-04:00

When I was going through my Black Belt training, the instructor pulled out some coins and tossed them on a desk. He said, "What do you see?" I tried that on my 7 year old son this morning. I asked him, "what do you see"? He responded, "62 cents".

OK, maybe he is not ready to be an engineer yet! So tell me, what do you see? Post your answers in the comments section. Look at it from all angles.

Taking care of the customer

2011-03-30T23:55:00.002-04:00

Two days ago, a customer entered a complaint because they found a defective part in their process. Once I became aware of this complaint, I immediately checked how many pieces we had sent them. I then called them right away to inquire about their inventory. Expecting the worst, I was pleasantly surprised at the tone and matter of fact attitude of the person on the other end of the phone.

He told me that all parts had bern tested and only one bad piece was found. Of course, I was relieved to hear this! We offered to replace the part and to complete an 8D report in two weeks. The customer was happy that we had taken the initiative to call.

The next time you receive a customer complaint, don't be afraid to call. Think of it as an opportunity to get to know your customers.

To The Gemba

2011-03-27T13:34:00.009-04:00

Hello and welcome to my blog.

With the start of this blog, I will occasionally share with you my experiences so that I can be helpful to others in thier own quality improvement efforts. I hope that you come back often to read my thoughts and leave a few of your own for others to see.

Over the past 30 years, I have been a quality professional with extensive experience in the automotive and semiconductor industries. In 1992, I became exposed to a heavy dose of lean manufacturing and six sigma. Ever since then, I have had great success with lean implementations, Kaizen events, Black Belt projects, and various other continuous improvement initiatives.

I have reached a point in my career where I want to share with you the techniques that have worked for me. Many of you are aware of the buzzwords, but often don't know how and where to start, or even whether it is worth the time and investment. As a certified Black Belt and Lean champion, my aim is to help you on your quest to improve quality and productivity. By going to the Gemba, you will see that there are many opportunities for improvement. All that is required from you is a willingness and commitment to learn.

Because today's world is very competitive, companies in the United States must constantly work towards quality improvements and cost reductions. Customer satisfaction has never been more important. By starting slowly and methodically, significant gains will soon be realized.

Learn to....

Walk - See - Do