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Lean Manufacturing

“Lean manufacturing is a set of tools that comprise a system that derive from a philosophy” as described by John Shook of the Lean Enterprise Institute. The key is the adoption of the Lean philosophy of respect and impairment of all people within the company.

The Lean philosophy evolved from the 14 Points for Management that Dr. W. Edwards Deming developed in the late 40's. Many of the lean manufacturing tools and techniques were developed in the Toyota Motor Corp. by Taiichi Ohno and Shigeo Shingo in the 1950's and 1960's. Now, many businesses have embraced these concepts including some of the major corporations such as, Mercedes/Benz, Pratt & Whitney, Porsche and General Electric to name a few. Lean tools are not only for manufacturing and can also be applied to services such as hospitals, insurance industry, the hospitality sector, registration services and alike.

To start a journey toward Lean manufacturing, you begin with the commitment to continuous improvement. Without the discipline to remain on track with continuous reviews (Kaizens) of the different functions of the company, Lean manufacturing will not be fully implemented. This is NOT a quick fix or overnight solution to processing problems. It is a combination of new production techniques, facility layout and corporate culture. Dramatic results in efficiencies and inventory reductions can be realized within 3 to 6 months but the total changeover to Lean can take from 3 to 5 years. It is not uncommon to see 50% - 70% reduction in costs.

After committing to go Lean you begin by selecting a Value Stream Manger or Champion, learn the tools and techniques, then identify the value added activities along with the non-value added activities within your product or service. To determine what is a value added activity you must look at the process from your customers point of view. You should be asking yourself, "would my customer pay me to do this"? The process of identifying the true value within your product or service will, by contrast, identifies the waste. The next step is to make a current value stream map (VSM) with all of the flaws included. In the following step you should be "thinking outside the box" to produce a future value stream map which would normally involve a new production sequence using the most appropriate Lean tools and techniques available. The list of improvements may be long and involved so be sure to pace yourself and begin implementing the projects one at a time. A common mistake is to try and implement all of the projects as fast as possible. This always results in frustration and often failure to properly install the tool or technique. When what usually happens is Lean is determined to "not work" for your company and the program is discontinued. The next step is to ensure the flow is optimized, the inventories are minimized, the production is a pull system and you are aiming at perfection in quality and cost.

To achieve these goals usually involves an initial major change to the plant layout due to the new production sequence and techniques. Initial changes in production techniques, such as, use of the Principles of 5S's, Value Stream Mapping,Manufacturing Cells, MRP systems, Poka-Yoke, Kanban and JIT systems all contribute to the Lean manufacturing goal. Not all techniques are implemented at first but will come from Kaizen events that are scheduled in the future. All of these topics are covered in the Lean Manufacturing Workshop.

The largest obstacle appears to be the commitment to get started. Efforts to better the process, solve production and cost problems will take time. Instead of spending time fighting fires, spend it preventing them. An important part of the Kaizen process is to perform root cause analysis on the problems being tackled. This is often referred to as "the 5 Why's". Ask "why" five times and you will either find the root cause or come very close to it.

The next obstacle is the cost. What about new automated machinery? The truth is, if you are spending a lot of money on equipment, you are not necessarily getting Lean. Lean solutions often are inexpensive. The cost is in training and the initial changeover expenses with the new production line configuration. For most businesses, the consultants training is a one-time cost. Your value stream team will likely be able to continue changing the remaining products or production lines on their own. The idea is for you to learn the tools and implement them yourself in a continuous improvement environment. New equipment is not always the answer. More often, the answer lies in new processing techniques, work aids and the Lean philosophy (corporate culture change).

Lean manufacturing is what you need but you haven't made it a priority. Companies will often wait for a "burning platform" to occur before initiating Lean training. It is certainly much less difficult to implement changes smoothly when things are not falling apart. Starting the process is as easy as contacting me.

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