Why Lean Can’t Succeed Without Operational Discipline

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Managing people and building the perfect manufacturing system are works of art. There are an unlimited amount ways to effectively get the desired result – being the perfect system and its flawless execution. However, manufacturing itself is an exact science; it is not an art. There exists one-right-way (ORW) of doing every single thing needed to execute the core functions of a factory. There is no need to re-engineer and execute a new process for each individual unit of production. This is immensely inefficient. In the absence of work standards, you are likely doing some version of this. The ORW minimizes cost and safety risk while maximizing service, quality, and morale. The essential job function of a front line supervisor or manager is to a) determine the ORW for all required actions needed for executing operations and b) ensure that everyone is doing it every time. This is why the world needs front line supervisors / managers. The supervisor’s effectiveness can be measured in terms of the number of deviations from the ORW of their direct employees. In other words, the manager’s performance can be primarily measured in terms of operational discipline, or the consistency of actions in which operations are executed. In an ideal state, one would possess the capability to evaluate the exact actions of every person / machine in the production process to ensure strict compliance to standard procedures. Since this is not practical in today’s world, we usually only evaluate compliance to standards after there has been a significant failure; sometimes resulting in some poor soul’s chastising or even worse, public shaming and/or termination. Many companies have turned to (or are turning to) Lean manufacturing to develop the operational discipline needed for operational excellence.

If you break down Lean Manufacturing into it’s two base components, what you are left with is:

1) Industrial Engineering – This is the process of designing and implementing the perfect manufacturing system. It requires understanding the expected outputs of the system and making the changes needed to minimize cost and safety risk while maximizing service, quality, and morale. The key aspect here is making changes to the system. Lean manufacturing applies many IE techniques that happened to be developed in Japan, such as kaizen, poke-a-yoke, 5S and others. Although IE techniques vary in degree of complexity, just about all of them can be taught to a person of average intelligence within a few days or so. The creators of TPS and Lean have done an amazing job of simplifying the discipline of IE for the common factory worker to understand and employ. Significant improvements in manufacturing efficiency can be gained with just a base level competency in IE. The more involved tools and methods are typically highly specialized for a given situation and result in marginal additional improvement. (This excludes the equipment / plant design aspects of IE, which can be highly technical as well).

2) Operational Discipline – This is the systematic and consistent execution of necessary actions. As stated above, this responsibility falls within the core job function of a front-line supervisor / manager. This does not require an Industrial Engineer, Lean expert, consultant, or other specialized technical background. This just requires good managers; being those who are highly disciplined and consistent as well. Managers are typically empowered with all the tools and resources needed to control their employees’ behaviors such as performance reviews (for career advancement), incentive programs including bonuses and pay increases, and others. Many companies launch Lean initiatives believing that Lean will automatically create operational discipline. This is not exactly true. Although Lean can help design and implement systems that help drive operational discipline, Lean itself cannot make the administrators of the Lean system more disciplined. Only effective leadership can ensure or increase discipline. Lean is not a substitute for leadership.

This brings me to the main point of my post. Your Lean initiative cannot succeed without sufficient operational discipline. Lean is a system; but all systems need competent and disciplined administrators. As a manufacturing leader, you don’t need Lean to develop competent and disciplined managers, supervisors, or shop-floor employees. You don’t need a Lean practitioner or Industrial Engineer to establish Standard Operating Procedures and ensure everyone is following those procedures without deviation. These are manufacturing fundamentals that help you get the most out of a Lean expert or IE should you choose to consult / employ them. It’s like saying that your basketball team of 6-year-old’s is struggling because they need more advanced plays. In actuality, they would dominate just by boxing out on rebounds, minimizing turnovers, moving their feet on defense, and making their layups (This was also true for my adult men’s league team so it’s something I’m quite passionate about). With that said, your Lean / IE / Consultant can help to accelerate your CI journey by applying industry best-practices and proven techniques for improving performance. However, if you find that your Lean initiatives aren’t sustaining, then maybe you’re not ready for Lean. You may want to take a step back and figure out how to increase operational discipline.

 

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Exclusive Interview with Norman Bodek, Pioneer in American Lean Manufacturing Movement – Part 4 of 4

In this exclusive interview with Manuficient Consulting, Norman Bodek shares some of the fantastic details of his career as a one of the pioneers in the American Lean Manufacturing movement. Norman is a publisher, professor, and author who has published hundreds of Japanese management books in English and other languages. Most recently, Norman co-authored the Harada Method, a step-by-step process for setting and achieving personal and corporate goals. Listen to Norman’s fascinating story and powerful insights into how American companies can overcome the challenges to achieving world-class execution.

Copyright © Calvin L Williams blog at calvinlwilliams.com [2015]. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Calvin L Williams with appropriate and specific direction to the original content.

Exclusive Interview with Norman Bodek, Pioneer in American Lean Manufacturing Movement – Part 3 of 4

Norman BodekIn this exclusive interview with Manuficient Consulting, Norman Bodek shares some of the fantastic details of his career as a one of the pioneers in the American Lean Manufacturing movement. Norman is a publisher, professor, and author who has published hundreds of Japanese management books in English and other languages. Most recently, Norman co-authored the Harada Method, a step-by-step process for setting and achieving personal and corporate goals. Listen to Norman’s fascinating story and powerful insights into how American companies can overcome the challenges to achieving world-class execution.

Copyright © Calvin L Williams blog at calvinlwilliams.com [2015]. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Calvin L Williams with appropriate and specific direction to the original content.

Exclusive Interview with Norman Bodek, Pioneer in American Lean Manufacturing Movement – Part 2 of 4

Norman BodekIn this exclusive interview with Manuficient Consulting, Norman Bodek shares some of the fantastic details of his career as a one of the pioneers in the American Lean Manufacturing movement. Norman is a publisher, professor, and author who has published hundreds of Japanese management books in English and other languages. Most recently, Norman co-authored the Harada Method, a step-by-step process for setting and achieving personal and corporate goals. Listen to Norman’s fascinating story and powerful insights into how American companies can overcome the challenges to achieving world-class execution.

Copyright © Calvin L Williams blog at calvinlwilliams.com [2015]. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Calvin L Williams with appropriate and specific direction to the original content.

Exclusive Interview with Norman Bodek, Pioneer in American Lean Manufacturing Movement – Part 1 of 4

Norman BodekIn this exclusive interview with Manuficient Consulting, Norman Bodek shares some of the fantastic details of his career as a one of the pioneers in the American Lean Manufacturing movement. Norman is a publisher, professor, and author who has published hundreds of Japanese management books in English and other languages. Most recently, Norman co-authored the Harada Method, a step-by-step process for setting and achieving personal and corporate goals. Listen to Norman’s fascinating story and powerful insights into how American companies can overcome the challenges to achieving world-class execution.

Copyright © Calvin L Williams blog at calvinlwilliams.com [2015]. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Calvin L Williams with appropriate and specific direction to the original content.

What is Manufacturing Strategy and Implementation?

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What is Manufacturing Strategy and Implementation?

Manufacturing Strategy

Manufacturing strategy consists of bringing the three primary pillars of manufacturing effectiveness into perfect alignment. The three pillars include organizational leadership, customers (or consumers), and operations execution. Let’s dive into each of these pillars to better assess the role of each in manufacturing strategy:

Organizational Leadership – The role of Organizational Leadership is to first decide who the company will serve and how. There is an art to choosing your customer, which is an optimization of two primary criteria: easy (for the company) to please and happy to pay what the company needs them to pay. Granted your company may not have a tremendous degree of control over either of these levers but getting this as right as possible at the onset primes the company for growth and success. A less than optimal arrangement sets the company up for some painful realities of doing business. Leadership needs to decide if its worth the trouble / effort to keep a segment of customers happy or if it makes sense to simply choose another customer to serve. This has to be weighed along with the company’s mission, financial goals, and other business obligations.

The Customer – The customer’s role in manufacturing strategy is to define when to deliver it, how many to make, what variant to make, and where to put it. Since no one customer can explicitly provide this information for you (unless you only have one customer, ie Walmart), excellent data needs to be collected and used as a guide to understanding these expectations. Customers speak to the manufacturing process in two ways:

1) By pulling their wallets out and making the purchase. This is the single most powerful way that customers communicate. Here is where the data is extremely useful. Ideally, you would be able to capture the entire body of purchasing data within your industry or sector for analysis. This would include not only your own company but your competitors’ data as well. Again, the answers you want to glean from the data are when, how many, what variant, who buys it and where to put it in order to meet or exceed business goals.

2) The other way customers communicate is through feedback. In today’s world, feedback is readily shared through both formal and informal channels. In the information age that we live, there is no excuse for companies to not know, with intimate detail, what their customers are experiencing with the company’s products. This is vital information that needs to be systematically aggregated and used as a critical input to the company-wide continuous improvement processes. The sooner the company can identify patterns in feedback (including feedback for competitors’ products) and get positive changes incorporated into the manufacturing process, the stronger case that company makes to win and keep business.

Operations Execution – Once the customer is chosen and you know how they like it, its the job of Operations to execute to perfection. This means optimal quality, cost, and service levels with perfectly healthy and happy employees on the shop floor doing the work. This means having a robust culture of innovation to not only meet customer expectations but to be able to continuously delight above and beyond the competition. This also means having the agility to change capabilities on a dime to keep pace with changing customer tastes and preferences. And finally, this means leading the way on technological advancement to continuously drive greater agility and perfection in execution.

Implementation

Implementation is the ability to establish absolute alignment between all three pillars mentioned above and taking the steps needed to create perfect synchronization between the three. This is evident when the vision in the C-Suite can be witnessed in action on the plant floor. This is only achievable by establishing and cultivating a culture of problem-solving, and the problems being solved can be tied directly to the results from the aggregated feedback analysis from customers. If the business requires V quantities of W product at X price to be delivered to Y customer by Z time, then perfection means achieving this standard without fail and with outstanding quality. Implementation is engineering the business system to deliver perfection. The implementation process includes three primary steps: assess, design, and test. These steps should be repeated until the business system verifiably delivers to your standard of perfection. Once this is done, you have achieved optimal manufacruring efficiency.

Copyright © Calvin L Williams blog at calvinlwilliams.com [2015]. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Calvin L Williams with appropriate and specific direction to the original content.

Is Your Company Inadvertantly Putting the Breaks on its Own Continuous Improvement?

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Getting better at something can take a lot of work. As any change agent can tell you, change is difficult, especially when there are people involved. Change requires shifts in the power structure, disrupting old habits, and pushing people out of their comfort zone. The reason that’s a problem is because you simply cannot get better if you cannot change. The two are inseparable. In many cases, there are just as many forces at play to prevent change than there are to create change. Sometimes those forces are created by the way the company works, or its business system. The business system is the array of its policies, people, processes, suppliers, customers, culture, and technology. Sometimes, the business system is designed in a way that inadvertently discourages continuous improvement. But don’t fret. In this post, I will uncover a few of the culprits that are putting the brakes continuous improvement in your company.

At any point in time, a manufacturer can capture its current state situation. Although the current state is just a snapshot in time, it can reveal some very interesting information. This information could include throughput levels, process efficiencies, conversion costs and so on. It could also reveal recent trends that provide some indication of what can be expected for the future. Those trends provide some insight to how “primed” your organization is for a continuous improvement initiative such as Lean, Six Sigma, Agile manufacturing or anything else you’re trying to do. A positive trend over time indicates that the organization is more likely to embrace change or continuous improvement. A flat trend over a long time indicates that the organization may be stagnated with some degree of resistance to change or improvement. These are the most difficult ones because there may be gatekeepers who won’t see a need to change. Making the case for continuous improvement will take quite a bit more effort in this instance. If the trend is negative over a long time period…well there’s bad news and good news. The bad news is that if you don’t improve, you won’t stay in business. The good news is that if you don’t improve you won’t stay in business. Making the case for continuous improvement in this case is a piece of cake.

With that said, there are some arrangements where business systems have embraced their inefficiency. These systems have decided to implement practices that allow some inside the business to profit from their inefficiency instead of eliminating it. I’ll give you a few examples: the contractor who is paid by the hour has an incentive to consume more hours to complete a job. Another is the airline that allows passengers to pay for priority boarding and seating. Their incentive is to keep the “normal” process so cumbersome that people will pay to cut in line and circumvent their terribly inefficient process. In this case, the airline has created a nice new revenue stream from their own inefficiency. You see where I’m going with this. These would be examples of policies killing the culture of continuous improvement. Over time, the people of an organization grow to accept inefficiencies as “the way it is” and they learn to capitalize on them as well. Inefficiency leaves room for corruption, which only breeds more inefficiency. This is what leads to a culture of poor performance and resistance to continuous improvement.

As part of your continuous improvement initiative, it will serve you well to take a close look at the policies, people, processes, suppliers, customers, culture, and technologies that might be hindering your growth. You will need to identify who in the organization is profiting from inefficiency and create conditions where the only way to profit is by ever increasing efficiency (with outstanding safety and quality of course).

© Calvin L Williams blog at calvinlwilliams.com [2015]. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Calvin L Williams with appropriate and specific direction to the original content.