Lean Manufacturing - Implementation Strategies That Work - A Roadmap to Quick and Lasting Success

197 Pages·2009·7.874 MB·197\197

by  Davis, John W.

A Roadmap to Quick and Lasting Success
LEAN

MANUFACTURING
Implementation Strategies
That Work
JohnW . Davis
Industrial Press
New York
Library of Congress Cataloging-in-PublicationD ata
>
> Davis, John W., 1938-
> Lean manufacturing implementation, strategies that work : a roadmap to
> quick and lasting success /by John W. Davis.
> p.cm.
> Includes index.
> ISBN 978-0-8311 -3385-6
> 1. Manufacturing processes--Waste minimization--United States. 2. Lean
> manufacturing--UnitedS tates. I. Title.
> TS169.D394 2009
> 658.5--dc22
> 2009003156
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Copyright 02 009 by Industrial Press Inc., New York. Printed in the
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INTRODUCTION
To a large degree, Lean Manufacturing in the United States
has been slow off the starter’s block and has gradually shifted to a
cost-based process, hidden under the guise of continuous
improvement. This leaves an important question to ponder: Does
America choose to use Lean to its fullest and significantly enhance
our competitive position in the world, or do we continue to focus on
the low hanging fruit, in lieu of rejecting the primary mission of the
process?
Although there are many types of Lean methodology on the
market, each with its own particular slant about how to go about the
process, they all incorporate the tools and techniques founded in
the Toyota Production System. Thus, the issue isn’t which method
is the best. The issue is clearly understanding how to go about
sound implementation strategy and where, when, and how to apply
the tools to a company’s best advantage.
If we look closely at what’s transpiring with Lean across the
United States, what we typically find are islands of improvement
that dot an ocean of waste and inefficiency. Such results simply will
not take us far enough (and fast enough) to stem the growing tide
that is currently serving to erode the U.S. manufacturing base.
The ideal situation, of course, is when leaders recognize
that the need for Lean is so great they’re willing to set aside other
initiatives until the task is fully and successfully accomplished at a
factory level. Because this type of commitment is seldom, if ever,
the case, we have to look at how to go about implementing Lean in
the least disruptive and most effective manner. In order to make
this happen, we have to get past the growing mindset that strives
to implement the process through small incremental improvements.
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Instead, we must begin to focus on a larger objective -which is to
make a full and complete transition across the entire production
arena and the general supply chain.
Within the past five years, a growing trend has been placed
on incorporating Six Sigma, a methodology developed by Motorola
in the mid 1980s. This methodology was initially aimed at improv-
ing product quality by identifying and correcting variations in pro-
cessing. But the truth of the matter is although Six Sigma is a good
tool which can often provide solid results, it simply isn’t what Lean
Manufacturing needs as a driving strategy. In fact, in many ways, it
has served to place focus on absolutely the wrong strategy.
In a 2008 article from the Six Sigma Academy, outlining the
benefits of the process, the following was noted: “Black Belts save
companies approximately $230,000 per project and can complete
four to six projects per year. The Six Sigma process (define, meas-
ure, analyze, design and verify) is an improvement system used to
develop new processes or products at Six Sigma quality levels. It
can also be employed if a current process requires more than just
incremental improvement. Both processes are executed by Six
Sigma Green Belts and Six Sigma Black Belts and are overseen by
Six Sigma Master Black Belts.
”
I would have personally felt better if the improvements had
been outlined in terms of processes fully transformed to Lean. But
as a counterargument to the insinuation that Lean’s objective is
cost savings, a couple of very important points should be made that
are pertinent to the content of this work:
1. No company can persistently save its way to profitability.
When it’s all said and done, it isn’t a matter of how much
money a change can save a company that counts. It’s how
much money it’s going to make the company over the long
haul. Once a company clearly understands that the objec-
tive is to work energetically at spreading the force of a well-
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established and proven process across the entire manufac-
turing arena, in the fastest manner possible, they can start
to make some remarkable strides in improving their overall
effectiveness and profitability.
2. The driver for a good Lean initiative has to be the firm
belief that in order to compete with the likes of Toyota and
others, the existing system of production has to be fully
destroyed and replaced with a far less waste-infested
means of doing business. If done properly, this change will
almost always require making an initial investment, as
opposed to achieving a cost savings.
One of the best ways to slow the thrust of a Lean
Manufacturing initiative is to require some form of evidence as to
Return on Investment before change of any kind is allowed. Firms
that are good at Lean understand that the people implementing the
process should follow a set of guiding principles. In doing so, as
long as the change clearly meets the criteria for the principles
noted, no other form of justification is warranted. In other words,
“just do it,” but with a knowledge that allows the focus to be prop-
erly placed.
Irrespective of philosophy, placing everything on the altar of
Kaizen has served to hinder progress more than inspire it. In order
for us to gain parity with the likes of Toyota and others, executive
management has to accept no less of an excuse for not swiftly and
fully implementing Lean Manufacturing than it would for not fully
satisfying customer requirements or providing products of good
quality. In turn, plant management has to see Lean as an absolute
requirement and reporting functions have to perceive it as a top pri-
ority. Doing this boils down to approaching Lean with the same
level of zeal and commitment Toyota did in its infancy. However,
this type of commitment isn’t happening on a broad scale in the
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United States. Anyone who believe otherwise is vastly misleading
themselves.
Best put, implementing Lean in the most effective manner
boils down to doing the right things, at the right time, with the right
people involved. Therefore, with an expressed emphasis on both
the speed and smoothness of implementation in mind, this work is
designed to focus on what has served to deflect energy. It will point
out the lack of appropriate expertise commonly applied to some of
the more important tools of Lean and how implementation strategy
should be adjusted accordingly. Key to doing this will place focus
on three major components of implementation:
How driven a factory’s shop floor leadership is about the
process
How qualified the dedicated resources are in applying the
tools
How geared a plant’s equipment is toward supporting the
process
HOW TO MAKE THE MOST OF THIS BOOK
In the leading section of his book How To Measure
Managerial Performance, Richard S. Sloma pointed out, ”I will have
failed to achieve my most important objective if all you have done
is merely to have read this book. We will both achieve our objec-
tives only if you USE this book.”
I feel much the same way. Respectfully borrowing from the
technique Mr. Sloma employed, I would like to point out how to
make the most of this work, considering there will be both readers
who are new to Lean and those who are seasoned in the tools and
techniques. The book contains something of importance for both
because the principal topic deals with implementation strategy.
The first section (Chapters One and Two) provides a com-
prehensive overview of the current path Lean is taking, along with
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the myths, misconceptions, and flaws that have hindered progress.
These are the areas where attention needs to be focused in order
for America to be much more proficient at Lean. Four levels of Lean
Manufacturing are outlined which can be used to measure
progress.
The second section (Chapters Three through Five) deals
with what the war on waste is all about, the organizational side of
the equation, and various levels of measurable accomplishment.
Chapter Three can be viewed as a buffet of items from which the
reader can pick and choose from in reference to a specific topic.
But it should be noted that although this book is principally direct-
ed at those who have not as yet entered into Lean, it can be an
excellent refresher for those who have a Lean initiative underway.
Chapter Four moves on to address the important topic of properly
organizing and aligning personnel for the effort and in understand-
ing how various leadership styles both add and distract from imple-
menting Lean in an effective manner. Chapter Five, in turn, centers
on the details of how to achieve a Level One Lean Status and
measure overall results.
The third section (Chapter Six) deals with the more
advanced aspects of Lean Manufacturing and covers such topics
as the importance of an 18-Month Rolling Implementation Plan and
making a Core Process Analysis; the reasons and benefits for
those who are already into Lean to strongly consider a change in
course; how to gain support and cooperation from major support-
ing functions such as Accounting, Sales and Marketing, along with
other important topics. At a minimum, this section should be
scanned initially and picked up and read again, once a plant has
reached a Level I status.
At the end of each chapter (including the Introduction), a
number of “Key Reflections” associated with the text are noted, for
quick reference purposes.
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KEY REFLECTIONS
Resting everything on the altar of Kaizen (making small,
continuous improvement) has hampered more than
inspired progress.
The issue of equipment that isn’t geared to support Lean
is seldom, if ever, seriously addressed on the front end
of most Lean initiatives.
The United States has proven repeatedly, if and when it
puts its heart and soul into an effort, it has the ability to
deliver. But for various reasons we haven’t as yet estab-
lished a universally accepted means of implementing
Lean and effectively measuring progress. This, in turn,
has left many organizations questioning where they actu
ally stand and what they’ve truly accomplished.
The best intentions on the part of manufacturing man
agers and first line supervisors can’t be readily applied if
we’re asking them to fight a battle with one arm tied
behind their back.
The answer rests in a process of implementation that
guides an operation to doing the right things, at the right
time, with the right people involved.
FOREWORD
As someone who “grew up” in manufacturing before assum-
ing the role of plant manager at the age of 49, I found that any con-
fidence I had gained in achieving that goal was quickly challenged
when the company announced its intention to close three of five
manufacturing facilities in the United States and combine manufac-
turing operations into two sites.
It posed an interesting dilemma for a first-time plant manag-
er who had been in the job less than three months. But it quickly
became apparent that the key to insuring the future of an existing
facility was to clearly demonstrate the ability to take on additional
product, with the least amount of physical expansion required.
With the help of some very good people, I set out to find the
best way of doing this and was immediately attracted to a process
just taking root in American industry that was built on the principles
of the Toyota Production System. Being as steeped as anyone in a
batch production mindset, it wasn’t easy for me to accept the kind
of change being suggested. But intent on learning more, I invited
the leadership of the local union to accompany me and my staff to
a seminar conducted by Richard J. Schonberger, the author of
Building A Chain of Customers, and the man who coined the
phrase “World-Class Manufacturing.”
Realizing the difficult challenge our plant was facing, we
collectively came away with a determination to learn all we could
about the process and, in the shortest time possible, make the kind
of change needed to free up space and improve operating expens-
es. I can’t stress strong enough, however, the critical importance of
having the leadership of the local union with us, and of gaining their
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support as we went about pursuing a new and totally different sys-
tem of production.
Over the course of the next 18 months, we were able to
make a startling turnaround of a 500,000-square-foot Carrier Air
Conditioning facility, located in the Midwest. Over 150,000 square
feet of manufacturing space was cleared, making room to down-
size and close an off-site finished goods warehouse, along with
providing the ability to take on a series of products from another
factory, without the expense of brick and mortar. With the help of
the union leadership, we were also able to rid the plant of a long-
standing piece-work wage incentive plan and install a 4x10 (four
day, ten hour) work schedule, which required changing an overtime
provision in the labor contract from anything over eight hours a day,
to anything over forty hours a week.
All in all, it was a truly phenomenal accomplishment, which
ended up setting the framework for the plant to become a show-
case facility for United Technologies Corporation and the catalyst
for UTC’s “Flexible Manufacturing” process. As a result, I was later
asked to give up my role as plant manager to work in the develop-
ment and deployment of the process, corporate-wide.
It was indeed a difficult change to make because I was giv-
ing up a job as plant manager over one of the company’s largest
manufacturing operations to essentially take on the role again of an
individual contributor. On the other hand, it was also a great honor
that the corporation had decided to use our factory as the flagship
and principle example for the job to be done.
Due to the extensive travel involved, the “tour of duty” was
initially set for two years. My team, who I would not feel I’ve done
justice to without mentioning personally, consisted of Barry O’Nell
and Ed Cannon from Pratt and Whitney, along with Gary Rascoe
from Otis Elevator. We went on to put in a second tour, which over
the course of a four-year period took us to six different countries,