Liquid lean: developing lean culture in the process industries PDF
Preview Liquid lean: developing lean culture in the process industries
Lean Improvement / Business and Manufacturing F “I urge all manufacturing managers and leaders to read this volume carefully and to take Ray’s lessons to heart. They will be doing their organizations, their l o shareholders, and their employees a great service.” — Rick George, President and CEO, Suncor Energy Inc. y d “If you truly want world-class performance, you will want a copy of this book on your desk as a ready reference manual.” —King Pouw, Executive Vice President, Kellogg Company “This book is about ‘walking the talk.’ Ray provides uniquely valuable insight from having personally led several organizations to achieve exceptional results applying lean principles.” L —H. Eugene McBrayer, former President, Exxon Chemical Company All companies can benefit from lean, but not all do. i While lean practices have been successfully implemented in the process industry with q excellent results for over 20 years (including the author’s own award-winning example at Exxon Chemical), that industry has been especially slow in adopting lean. Part of the problem is that the process industry needs its own version of lean. The larger part of the problem is resistance to transformational change, a barrier that can be overcome u only with effective leadership and results-oriented planning that engages rather than excludes all stakeholders. i Written by Raymond Floyd, an unparalleled leader of lean transformations, Liquid d Lean: Developing Lean Culture in the Process Industries provides potential process industry change agents with the no-nonsense guide needed to eliminate waste and achieve sustainable optimal efficiency. Presenting lessons in lean as they apply within the liquid industries, the book focuses on developing the four measures of lean as defined by the Shingo Award: L • Business Results • Consistent Lean Enterprise Culture e • Continuous Process Improvement • Cultural Enablers a Illustrated with his own success stories, Floyd describes business results, lean enterprise thinking, and policy deployment in process industry terms. He offers detailed theory, practice, and examples of continuous process improvement, and describes the leadership n and defines the ethics needed to evolve and sustain lean transformation. Floyd lays out the specific steps needed during the first six months of transformation and the benchmarks to be achieved during the first two years of implementation. All companies can benefit from lean; this book makes sure that those who want it know how. Raymond C. Floyd PP8629 ISBN: 978-1-4200-8862-5 90000 www.crcpress.com 9 781420 088625 www.productivitypress.com Liquid Lean Developing Lean Culture in the Process Industries Liquid Lean Developing Lean Culture in the Process Industries Raymond C. Floyd CRC Press Taylor & Francis Group 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487-2742 © 2010 by Taylor & Francis Group, LLC CRC Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S. Government works Version Date: 20140602 International Standard Book Number-13: 978-1-4200-8863-2 (eBook - PDF) This book contains information obtained from authentic and highly regarded sources. Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use. The authors and publishers have attempted to trace the copyright holders of all material reproduced in this publication and apologize to copyright holders if permission to publish in this form has not been obtained. If any copyright material has not been acknowledged please write and let us know so we may rectify in any future reprint. Except as permitted under U.S. Copyright Law, no part of this book may be reprinted, reproduced, transmit- ted, or utilized in any form by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying, microfilming, and recording, or in any information storage or retrieval system, without written permission from the publishers. For permission to photocopy or use material electronically from this work, please access www.copyright. com (http://www.copyright.com/) or contact the Copyright Clearance Center, Inc. (CCC), 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400. CCC is a not-for-profit organization that provides licenses and registration for a variety of users. For organizations that have been granted a photocopy license by the CCC, a separate system of payment has been arranged. Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com and the CRC Press Web site at http://www.crcpress.com I wrote this for my wife, Marsha, and my daughters, Erin and Allison. They have been the best part of my life. Contents Foreword ...............................................................................................xv Acknowledgments ...............................................................................xix Chapter 1 Business Results in Process Industries .............................1 Introduction .................................................................................1 How This Book Is Organized: Shingo Prize Criteria .............2 Business Results: Improve Performance with Lean ...............3 Beat the Competition with Very Flexible Manufacturing .....4 Improve Performance with Lean and an Engaged Workforce .....................................................................................7 Gain First Mover Advantage....................................................10 Achieve Prompt Improvement ................................................13 All Companies Can Benefit from Lean, but Not All Do ......14 Disruptive Changes ..............................................................15 Why the Process Industry Needs Its Own Version of Lean .........................................................................................16 Transforming the Raw Material .........................................17 Indirect Material Transformations ....................................18 Time as an Independent Element of Production .............19 Special Case: Continuous Processing ................................21 Notes ............................................................................................22 Chapter 2 Lean Enterprise Thinking ...............................................23 Introduction ...............................................................................23 Developing a Western Lean-Enabling Culture .....................25 Historical Perspective ..........................................................27 Early View of Lean: Just-in-Time Manufacturing ...........27 Early View of Engaged Employees: Quality Circles ........30 The Eight Sources of Waste ......................................................32 The Relationship between Inventory and Operating Problems ....................................................................................34 Value Streams and Support Processes ....................................36 Lean Values: Inventory Reductions Can Sustain Improvements ............................................................................39 vii viii • Contents Lean Values: Culture of Engagement.....................................40 Notes ...........................................................................................42 Chapter 3 Policy Deployment ...........................................................43 Introduction ..............................................................................43 Large Events and Small Events ...............................................44 A Strategic View of Manufacturing ........................................45 Strategic Alignment and Necessary Boundaries .................48 Prerequisites for Structured Autonomous Improvement ..............................................................................50 Strategic Direction ....................................................................52 The Role of Communication in Achieving Strategic Alignment ..................................................................................54 Limiting Opportunities for Improvement ........................59 Deploying Strategic Intent ......................................................60 Simple Statement of the Goal .............................................60 Prose Statement of Intended Future State .........................61 Prose Statement of Current Reality ....................................61 Objective Measures of Progress ..........................................61 Interim Performance Targets ..............................................62 Formatting Goal Statement .................................................62 Translating Strategic Intent throughout the Organization ..............................................................................63 Framework for Action ..............................................................69 How Quality Stations Work ................................................70 Display the Team Goals ..................................................71 Display What the Team Has Completed ......................73 Show the Work in Progress ............................................74 Provide Interactive Space ................................................74 Policy Deployment in Action: Conversations at a Quality Station ......................................................................75 Internal Team Conversations .........................................76 External Team Conversations ........................................79 Chapter 4 Improving Flexibility and Availability in Mechanical Equipment ....................................................81 Introduction ...............................................................................81 Contents • ix Single Minute Exchange of Dies System ................................82 What We Can Learn from NASCAR ................................84 Translating NASCAR Success to Our Plants ....................85 Preparation .......................................................................85 Teamwork .........................................................................88 Equipment .........................................................................89 How to Use the SMED Concept ..............................................91 The Five Key Components of SMED Practice .......................92 Separation of Activities ........................................................94 Modification of Rate-Limiting Internal Activities ..........99 Modification of the Work Team .......................................102 Modification of the Equipment ........................................103 Modify Equipment to Maximize Efficiency ...............104 Preparing for Events and Sustaining the Improvements .....................................................................109 Outcome of Improvements ...........................................110 Chapter 5 Operational Planning to Improve Chemical Transitions ......................................................................113 Introduction .............................................................................113 The Causes of Chemical Inflexibility ....................................114 Chemical Contamination ..................................................114 Unintended Conversions ...................................................114 Fixed Sequence Variable Volume Production .....................115 The Concept: A Comprehensive Approach to the Production Cycle ................................................................116 What We Can Learn from the New York Subway System ...................................................................................117 The Four Components of FSVV Practice .............................119 Typical Operating Problems ............................................120 Changes in Process Conditions ..................................120 Additives and Modifiers...............................................120 Changes in Reactive Chemicals ...................................121 The Fixed Sequence ............................................................121 Establishing a Fixed Sequence ....................................122 FSVV Inventory Policy .....................................................126 Days of Demand in Inventory .....................................126 ABC Inventories .............................................................127
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