5 Simple Continuous Improvement Hacks that Will Have Your Manufacturing Company Rocking

rocking factory - calvinlwilliams.com

There are over 1,000 Lean tools and counting that can be used to improve processes and help a business become more Lean. All of them have a time and place but you can achieve remarkable success by doing just a small handful of things really well. So put away your stack of Lean books and close the 90 web pages showering you with overkill Continuous Improvement advice. This article will provide you a simple formula that will help you develop an unstoppable Lean Culture.

Element #1) Strategy Deployment

You need to be clear on what will help the company win in the market. The few things that will generate the greatest success for your company, is your strategy. Then you need a seamless method for deploying these priorities throughout the organization. Your deployment method must leave no employee behind. This means each and every person working in your company needs to understand their role in delivering the strategy and commit to clearly defined improvement objectives for their area of ownership. Each person should establish a target condition that is an improvement on the current condition. This becomes their Continuous Improvement plan – all of which should clearly connect up to the highest ranking leader’s plan. Remember that making progress against your strategy is the very definition of improvement. Any side steps, aka random changes, are a waste of precious resources.

Element #2) A Mechanism for Improving

You need to develop the skill of everyone in your company to make sustainable improvements. The de-facto method for this is called PDCA or Plan-Do-Check-Act. You’re probably familiar with this term or one of it’s many variants. Essentially it’s just a spin off of using the scientific method to discover the truth about your business processes and make changes that work. The only way to do this is good old fashioned trial and error. You form a hypothesis about what will get you better results, you test it, you observe the outcome, then you repeat this process until you discover the truth. This isn’t breakthrough thinking, but in practice, it usually falls apart in the testing and / or repeat as needed phase. The best way to form a hypothesis is to work with a cross-functional team of people close to the process to do a Root Cause Analysis. This gets you to the right answer with less time and effort invested. Just remember that the output of a RCA is just hypothesis that needs to be proven by making changes to the process. The key here is to be deliberate about driving action based on analysis. You need a good way to ensure actions are being executed so you can know from experience what’s really driving process results.

Element #3) Performance Measurement Tools

Without a good way of quantifying performance, you have no idea if you’re actually improving or sustaining results. You’ve probably heard the expression “go with your gut”, but in this case, don’t! You need the numbers. Which numbers you use will vary based on what you’re trying to improve. When it comes to manufacturing value stream execution, you have to go with OEE, or Overall Equipment Effectiveness. OEE is global gold standard. As you experiment with making changes to processes, you need to watch and see what happens to the performance metrics. When you’re really getting to the truth, you can use it to lever the numbers up or down by making the right changes.

Element #4) Leadership Coaching Mechanism

Leaders need to be able to coach their teams to overcome challenges as they work to close the gap to their target condition. This does not mean commanding certain actions that the leader thinks will get results. Commanding is not coaching! Good coaching is a iterative process that allows a person to learn from experience and repetition while the coach observes and provides guidance as needed. The intent is to develop talent and capability in the learner – specifically the talents of learning how to learn, solving problems, making decisions, and improving the process. As a coach, let the learner go as far as they can with their own ability. When they hit a brick wall, and maybe ask for help, give them as little help as needed to overcome the specific issue they’re struggling with. The beauty, and growth, is in the struggle. This may mean teaching them new Lean tools, connecting them with resources, or providing some impromptu therapy. Be flexible – and teach them in the way that they learn best. But just know that the moment you as a leader become disengaged from the coaching process, the learner is likely to disengage as well from the improvement process. Besides, developing the talent of your people is one of your most important jobs.

Element #5) Engagement Mechanism

A Lean Culture is made up of a million small everyday wins. Leaders need to have visibility to these wins as they happen so they can recognize and encourage further progress and success. A person who is striving to improve their process and getting results should not go quarters, months, or even weeks without their leaders realizing and rewarding them for it. This lag time is demotivating. Leaders need to be on top of their game, just as they expect their teams to be.

All this may seem difficult to do if you’re already too busy and don’t have the tools in place to handle these activities effectively. This is where having the right technology makes a world of a difference. Heck, even Toyota has abandoned the old way of thinking that all Lean Tools should be manual processes. They were “suddenly motivated” to adopt technology once they saw themselves falling behind in the market. Fortunately for you and everyone else, technologies like Impruver.com provide enterprise-wide access to the most cutting edge methods that delivers all of the elements mentioned above plus more. Check the videos to the right of this page and click here to learn more.

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The 8 Lean Wastes and Their Potentially Disastrous Effects – Transporting

A worker operates a forklift to transport floor boards at a wood flooring factory in Huzhou
A worker operates a forklift to transport floor boards at a wood flooring factory in Huzhou, Zhejiang province July 13, 2012. REUTERS/Sean Yong

Transporting – the act of moving people, materials, or information from one place to another. In this series titled “The 8 Lean Wastes and Their Potentially Disastrous Effects”, we examine case studies for when companies, government organizations, or entire industries have allowed a specific type of waste to escalate to a disastrous effect. In this post, we review the waste of Transporting to understand what causes it, how to see it, and how to eliminate it.

Jump to:

The 8 Wastes and Their Potentially Disastrous Effects:

Defects | Overproduction | Waiting | Non-utilized Talent & Ideas | Transportation | Inventory | MotionExcessive Processing

Study:

Based on data from the National EMS Information System (NEMSIS), the US national average time for an ambulance to arrive after an emergency call has been placed is 9.4 minutes. Just to level-set, the gold standard for ambulance arrival time is 8 minutes within 90% of the time. The data suggests that, on average, ambulances arrive 1.4 minutes late for an emergency call.

Additionally, the time to transport a patient back to the hospital to receive full treatment averaged 12.2 minutes in the dataset. This means that the time between the emergency call and the patient arriving at the hospital averaged almost 22 minutes in total.

Manuficient - Ambulance Arrival Time Data
Copyright 2016 Manuficient Consulting

 

Interesting Fact:

The chances of surviving cardiac arrest diminishes greatly after 5 or 6 minutes of waiting time. How many deaths or serious complications could be prevented if we could design an emergency medical system with an overall response time of less than 5 minutes?

For more information on this data, visit the NEMSIS at:

http://www.nedarc.org/

 

Transporting waste is abundant in just about any manufacturing or supply chain system. Since, for all practical purposes, multiple objects cannot occupy the same space at a time, transporting is an inevitable condition in the way we live, work, and play. One of the challenges to reducing transporting waste is that most methods of measuring productivity fail to highlight its existence. It’s important to measure delivery lead time from step to step within the factory and throughout the supply chain to help identify transporting waste; this also needs to be monitored on a continuous basis. Once you know to look for this type of waste, losses can fairly easily be measured and reduced in manufacturing or supply chain processes. For example, tools such as 5S, line layout, work cell design, and point-of-use supply (POUS) are all great approaches to minimize the waste of transporting within a factory.

Impruver also helps you see waste from transporting in the form of lost efficiency. In Impruver, this type of waste could either show up as downtime or rate losses. For example, if operators are having to travel across the factory to retrieve parts needed to perform a changeover, this entire time is captured under the planned downtime category. In this case, you might rearrange where items are being stored or staged in order to minimize transport time, changeovers, and efficiency losses due to planned downtime.

 

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.

How to Implement OEE in One Day

Manuficient - Excellence Compass

OEE (or Overall Equipment Effectiveness) is the ultimate tool for measuring and eliminating process waste. Wikipedia defines it as “a hierarchy of metrics developed by Seiichi Nakajima[1] in the 1960s to evaluate how effectively a manufacturing operation is utilized.” OEE combined with rigorous process improvement efforts can drive significant cost savings, reduce stress of daily operations, and increase manufacturing capacity. Simply put, you’re not doing Continuous Improvement or Lean if you’re not using OEE. The metric itself is taken by multiplying Availability (%) x Rate Attainment (%) x Yield Attainment (%).

To implement OEE effectively, you need to track each of these indicators on a continuous basis and perform the OEE calculation for a line, shift, factory, or entire manufacturing network on the interval that you see fit. Here are a few steps to implement OEE:

  1. Capture the % Availability. This is the efficiency lost while the line is not in operation (but the labor force is on the clock). Create a spreadsheet that allows line operators to input the time it takes to start up the line (from clock-in to steady state). Also capture other planned downtimes such as changeovers and shutdown times. Finally, capture each unplanned downtime loss as well.
  2. Capture the % Yield Attainment. This is a measure of the efficiency lost due to producing sub-par quality product. This calculation is done simply by taking the total good units produced divided by the total units produced.
  3. Capture % Rate Attainment. This is essentially the efficiency lost while running less than the maximum possible run rate. To capture this this, develop maximum theoretical run rates for each product on each production line. This should be done by an Industrial Engineer or trained professional. If you don’t have one on staff, you can contract someone to do it or use what I call the maximum empirically demonstrated rate, which is the fastest rate the line has demonstrated in it’s history for the given product. From there, track your total throughput and divide by your theoretical max rate to get your % total losses. Then subtract out % Availability and % Yield Losses. The remaining losses are rate losses.

Then multiply the three indicators across and the result is your OEE, which is a measure of perfection. 100% OEE represents zero efficiency losses. Once you have began tracking these metrics on an ongoing basis, you can aggregate this data to calculate your OEE anytime you want. The more frequently you can report this information, the more actionable the metric is for you. You certainly don’t want to wait weeks or months to find out there is a serious problem; but daily reporting is usually sufficient. Reporting by shift is even better.

With all of that said, the best way I’ve seen to implement OEE is a tool called Impruver at www.impruver.com. It’s the best free tool out there and it calculates and reports OEE for you by product, line, shift, and even team or individual team members. You could simply have your operators enter each production run into the system and the tool does the rest. It takes less than a minute to enter a production run. It even sets your theoretical max rates for you based on your best demonstrated rate. Then it updates the standard automatically when a run is entered that exceeds the previously established rate. In other words, you don’t have to set or update production standards – the tool does it all for you. It’s great!

 

OEE is the benchmark for measuring factory performance and can be used across all industries to highlight areas that can be made more efficient. It’s a metric that can be used to drive substantial cost savings along with targeted process improvements.

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.