A Lean Journey: 2010

Friday, December 31, 2010

Thursday, December 23, 2010

Lean Tips Edition #7

For my Facebook fans you already know about this great feature. But for those of you that are not connected to A Lean Journey on Facebook or Twitter I post daily a feature I call Lean Tips. It is meant to be advice, things I learned from experience, and some knowledge tidbits about Lean to help you along your journey. Another great reason to like A Lean Journey on Facebook.

Click this link for A Lean Journey's Facebook Page Notes Feed.

Here is the next addition of tips from the Facebook page:

Lean Tip #91 - Milk runs can reduce the waste of transport, improve fast, flexible flow, and reduce lead times.

Like in a plant the idea behind the milk run is that a vehicle travels frequently around a set route starting and ending at the plant, and visiting several suppliers en route. At each supplier a small batch of parts is collected in a particular time window.

Lean Tip #92 - There are three sources of unstable Lean supply chain resulting in more inventory.

In simple terms, there are three enemies of a stable Lean supply chain:

1. Inventory and delays that worsen any 'swing' of amplification. The longer the response time to a change, the worse the swing upstream.

2. Unreliability or uncertainty - Any kind of uncertainty needs to be covered with inventory. Unreliable processes cause unreliable delivery and ultimately uncertainty.

3. Hand-offs or decision points - Every hand-off or tier in the system bears the danger of distorting the demand signal.

These all result in more buffers or inventory to cover the supply chain.

Lean Tip #93 - Build a strong supply chain by conducting joint improvement activities.

A collaborative supplier relationship model is essential for supporting a Lean supply chain. Conduct joint improvement acitivities with the following emphasis:

1. Exchange best practices with suppliers.

2. Initiate kaizen projects at supplier's facilities.

3. Set-up supplier study or work groups.

Lean Tip #94 - Strengthen your supply chain by sharing information.

Within your supply chain share information intensively but selectively. Focus on these principles:

1. Set specific times, places, and agendas for productive meetings.

2. Use rigid formats for sharing information.

3. Insist on accurate data collection.

4. Share information in a structured fashion.

Remember sharing information is all about shared learning.

Lean Tip #95 - Develop a suppliers' technical capabilities to strengthen your supply chain.

It is important to understand and develop your suppliers' technical capabilities. Start with the following elements:

1. Build the suppliers' problem-solving skills.

2. Educate them in Lean thinking and teach them to see waste.

3. Develop a common lexicon.

4. Hone core suppliers' innovation capabilities.

If your suppliers are not technically proficient your supply chain will be your weak link.

Lean Tip #96 - Don't forget to manage your suppliers within your supply chain.

Managing your supply chain is really about managing your suppliers. Here are couple things you can do to make this effective:

1. Send monthly report cards to core suppliers.

2. Provide immediate and constant feedback.

3. Get senior managers involved in solving problems.

4. Turn supplier rivalry into opportunity.

5. Source each component from two or three vendors.

Direct and timely communication with your suppliers is essential collaboration.

Lean Tip #97 - Support your suppliers by creating compatible production philosophies and systems.

For a supplier and vendor to want to together long term there must be a win-win proposition. Create compatible production philosophies and methods. This can be done by:

1. Set up joint ventures with existing suppliers to transfer knowledge and maintain control.

2. Understand how your suppliers work.

3. Learn about suppliers' businesses.

4. Go see how your suppliers work.

5. Respect suppliers' capabilities.

6. Commit to co-prosperity.

Lean Tip #98 - An effective measurement system is one of the most powerful tools for change.

Measurement should:

•Provide short-term indicators of problems - and no problems.
•Be part of a feedback or capability of the process or people.
•Focus on improving performance.
•Be capable of being acted upon.

Lean Tip # 99 - A good measurement system has four keys for sucess - first is Context.

First key of a successful measurement system is Context. Effective measurement can only occur in a positive, supportive context. This is the culture that surrounds the measurement - informational or punishment, process not person. The attitude of the boss. An unfavorable measure is an opportunity not a threat. We want to surface issues, not suppress them.

Lean Tip #100 - A good measurement sytem has four keys for success - Focus is second.

The second key for a successful measurement system is Focus. Measure the right thing. Be aware of measuring too much. Derive many of the measures from participative policy deployment, not sucked out of the air.

Lean Tip #101 - A good measurement system has four keys for success - Third is Integration.

The third key for a successful measurement system is Integration. There must be an integrated system for measurement. Maybe a balanced scorecard or policy deployment, although better in a Lean context would create flow, maintain flow, and organize flow. In any case measures need to be aligned, balanced, and adaptive.

Lean Tip #102 - A good measurement system has four keys for success - Fourth is Interactivity.

The fourth key for a successful measurement system is Interactivity. Measures need to be acted on in real time. Two-way interaction. Actually setting up the measures is only a small part - how they are used and reviewd is at least as important. Perhaps a daily meeting around the communications board. This is social process, not a technical process.

Lean Tip #103 - You must be focused when you decide which project to pick.

People always ask where to start. Which project should be pick to work on?

You must be focused:

•Focus on the Porcess
•Focus on the Product or Service
•Focus on Cost Savings
•Focus on Problems
•Focus on Internal processes
•Focus on supplier processes

Lean Tip #104 - Question each review, approval and status report to make sure they will make the project better.

Question each review, approval and status report to make sure they will make the project better. Consider the following:

•List the interim and final deliverables that need review and approval.
•Who will provide the review?
•Who will provide the approval?
•What is the reason for the review?
•What is the deliverable of the the review?

Lean Tip #105 - Simple strategies for evaluating possible solutions

Try these strategies when evaluating possible solutions:

Be creative with generating solutions.
Look for combinations of solutions to optimize outcome.
Generate the evaluation criteria BEFORE discussions.
Use data to review strengths and weaknesses of each option.
Consistently evaluate the potential options against the criteria.

Wednesday, December 22, 2010

Got Milk? Got Lean! Presentation

Jeff Hajek, author of Gotta Go Lean Blog and The Continuous Improvement Companion, and I recently shared our expertise in a brand new format. By combining a radio-show format with a webinar platform, and you get a brand new tool for learning about Lean.

In our second live show, we discuss Lean with another everyday example so anyone can learn the improvement methodology. The majority of households have one thing in common. They have milk in the fridge. But you may not realize that even the simple act of stocking this staple item puts a number of Lean concepts to work.

Got Milk? Got Lean!

View more presentations from Tim McMahon.

Stay tuned for a recording of this webinar to come shortly. In the mean time you can review our first webinar show on Learning Lean Through Making Coffee. Plan on joining us for our next webinar show after the New Year.

Tuesday, December 21, 2010

Team Selection: Best and Brightest or Not

I came across this comic the other day and paused. It is really about a stereotype of continuous improvement teams that I don't agree with.

While it shouldn't matter who we pick from organization for an improvement team or initiative in the begining it does. During the early stages of a transformation the selection of the team members is important for the success of your initiatives.

Here are a couple of things to consider when picking team members:

Balance of "hard" and "soft" skills
Best experience possible
Coverage of the knowledge areas needed
Willingness to join
Availability
Leadership and/or Management skills
Maturity to take responsibility
Follows through on commitments
Good listening skills
Willing to actively participate
Can give and take feedback
Can communicate clearly

You may not directly benefit from every improvement but that's not the point. We aren't tying to optimize individual performance. That continues the silo mentality. An improvement in a part of the value stream is an improvement to the whole process.

Personally, I would send the best and brightest to support the improvement activity. It is a question of where you spend your time. How much time do you spend trying to convert the bottom 20%? In my experience spending time with the top 20% is more beneficial. The top 20% can have an infectious way of getting the middle 60% to come along with you on the journey. You probably can't convert all the bottom 20% for various reasons. But if you can get the majority of you organization working on improvements then your teams will be more effective.

What do you think of this comic and depiction of improvement teams? Who would you lend to a new improvement intiative?

Monday, December 20, 2010

How to Hit Your Goals

Last week I had several posts on performance measurement systems since this is the time of year when many organization are planning for the next calendar. While this isn't necessarily the Lean way it provides a good opportunity to talk about these subjects. This annual organization goal setting process is usually followed closely by the annual individual review and goal setting process.

Today, I want to share a ClarityMap to help you hit your goals. A clarity map is visual guide to help give you the insight needed to make good choices.

Click here for a pdf version of this map.

While there a lot of valuable information on this map I quite like this:

Action Creates Clarity - At first the details to achieve a goal may be fuzzy but as you take small actions toward the goal it comes more into focus.

This ClarityMap is the work of Derek Franklin who was gracious enough to allow me to share it with all of you.

Derek is also the creator of the 3 Steps to Get Things Done ClarityMap and The Action Machine, a visual time management software based on the above steps. The goal behind The Action Machine is simple: To give you a way to visually structure your day in a way that you feel absolutely compelled to take action and get things done, once and for all!

I shared the 3 Steps to Get Things Done ClarityMap this past March.

I post both of these documents next to my goals so I can use these tools to effectively focus on what is important when I get lost. Maybe it can help you, too.

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Friday, December 17, 2010

Lean Quote: Measurement Gets

On Fridays I will post a Lean related Quote. Throughout our lifetimes many people touch our lives and leave us with words of wisdom. These can both be a source of new learning and also a point to pause and reflect upon lessons we have learned. Within Lean active learning is an important aspect on this journey because without learning we can not improve.

"What gets measured gets done, what gets done well gets rewarded, and what gets rewarded gets repeated." - Unknown

There are number of variation of this quote attributable to several notable authors. It is often recalled in some discussion of performance metrics or motivation. This is no different but I believe there is a truth to this statement.

Metrics matter! What gets measured gets changed and what gets rewarded gets done. If you don't measure it, you can't change it and if you don't reward change it will not happen.

Some say performance measures are a waste. I don't agree. They should be minimized and improved for effectiveness but not skipped entirely. Regular measurement and reporting keeps you focused — because you use that information to make decisions to improve your results. Metrics create an environment of accountability throughout the organization. An organization that closely tracks performance metrics creates a culture where goal achievement is the norm and where there is no room for mediocrity.

Performance metircs also provide a way to convey corporate goals to the organization in a tangible form and get buy-in at all levels. It also sets an example that the company management is holding itself accountable for success.

It is important to remember performance metrics are one measurement technique in your arsenal. They can be a quick and useful tool to let you diagnose strengths and weaknesses in your process, make strategic decisions, and ensure you are heading in the right direction. Don’t forget: the real value is in the discussion of results with your team, not the numbers themselves.

“Everything that can be counted does not necessarily count; everything that counts cannot necessarily be counted.” – Albert Einstein

Thursday, December 16, 2010

7 Deadly Sins of Lean Performance Measurement

Michael Hammer wrote a great piece a couple years ago on the 7 sins of performance measurement and how to avoid them. I thought I would review the list in terms of a Lean measurement system.

Vanity: Using measures that make a particular organization look good. Measures that are aimed at making the manager look good like a partial lead-time improvement, not end-to-end.

Provincialism: Organizational Boundaries - This happens often with localized process improvement efforts. Measuring within department boundaries not the value stream.

Narcissism: Measuring things from the company’s point of view rather than the customers’. Measuring from your point of view like delivery performance against promised date not customer's request date.

Laziness: Not placing enough thought into a company’s stage in the industry, strategy and objectives when deciding on what is important to measure. Assuming one knows what is important to measure like cost when delivery performance is more important to the customer or not going to the Gemba.

Pettiness: Measuring only a small component of what is important. Measuring only a small part like ontime delivery, but the order is not in full.

Inanity: Measurement itself produces consequences by way of employee behavior. Measuring without thought of these consequences like prioritizing OEE. OEE improves but schedule attainment decreases and batch sizes increase.

Frivolity: Not being serious about measurement itself. Not being serious about improvement such as we can't stop the line to look at problems.

Are you committing even ONE of the seven deadly sins of Performance Measures?

Because if you are, you are wasting money at a minimum, and in the worse case, you are threatening the survival of your organization. Avoid these 7 deadly sins in your performance measurement system if you want to achieve success.

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Tuesday, December 14, 2010

Checking Out Measures

In continuation with performance measures I want to talk a little about how to review your measures. Any discussion on Lean measurement should begin by recognizing that measurement is waste. It should be limited and minimized. It has been said "You can't fatten a calf by weighing it." At the same time, you must recognize that an effective measurement system is one of the most powerful tools for change, and for Lean transformation, that exists.

A good method to check out your measures is to consider Kipling's Six Honest Serving Men or the Five Why's and One How.

Measure: a self-explanatory title

Purpose: why is it being measured? To which business objective does this measure relate?

Target: what is to be achieved, and by when?

Formula: the formula or ration used.

Frequency: how often should the measure be taken, and reviewed?

Who measures? Who is responsible for collection and reporting?

Source of data: wher does it come from?

Who acts? Who is responsible for taking actions?

What to do? What action should be taken?

Limits: What are the control limits within which no action is required?

Since we would like to have the minimum set of measures to evaluate our performance as possible using this approach is vital. If the measure is ineffective or ineffecient then we can expect more waste in our system then necessary.

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Monday, December 13, 2010

Measuring System Performance

With the end of the year approaching organizations are working on coming up with next years plan. Hopefully Lean organizations are using Hoshin Kanri or policy deployment to shape their future. Nonetheless, next years objectives will certainly include performance measures. I am going to highlight some thoughts on good measurement systems in this weeks Daily Tips on A Lean Journey's Facebook Page. In the mean time I will start the week with a look at how to define performance measures.

It is useful to start with question "what is a performance measure?"

Andy Neely of London Business School proposed these definitions of performance measurement, a performance measure and a performance measurement system:

“Performance measurement can be defined as the process of quantifying the efficiency and effectiveness of action.”

“A performance measure can be defined as a metric used to quantify the efficiency and/or effectiveness of action.”

“A performance measurement system can be defined as the set of metrics used to quantify both the efficiency and effectiveness of actions.”

An effective measurement system is one of the most powerful tools for change. The measurement should:

- Provide short-term indicators of problems - and no problems.
- Be part of a feedback or capability of the process or people.
- Focus on improving performance.
- Be capable of being acted upon.

Having identified what is meant by performance measurement, the next post will cover how to check out your performance measures for effectiveness.

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Friday, December 10, 2010

Lean Quote: Leaders Communicate

"The more elaborate our means of communication, the less we communicate." — Joseph Priestley

Every form of multimedia is at our doorstep and they are all fighting for our attention. We are inundated by ellectronic media like email, text, notifications, and others. More than ever, we cannot live and prosper without information. Not in business, not in our private lives.

Reliable, fast, and complete information has never been as important for success as it is today. Yet, there is a new headache to deal with: excess information by email or cell phone. The leader must now be more selective, and restrict the exchange of information to what is important. We can't allow the loss of precious time reading and forwarding unecessary messages. Everyone needs information to work as a team striving to achieve common goals and to share responsibilities.

A breakdown in communication can result in:

Rumor mills due to unreliable information
Wrong information due to interpretation, distraction, and incomplete information
Conflicting priorities among peers and departments

There must be an open exchange of ideas among peers and between managers and their reports. In this process all people must be treated as equals and fresh ideas encouraged, whoever they come from. Information must reach all levels and involve everyone to achieve common goals.

Among all forms of communication, nothing equals a face-to-face exchange. There is no substitute for body language; the tone, facial expressions, and gestures that accompany language cannot be expressed in writing or even over the phone.

It is important to stress that even the best of all new technology must remain subordinated to the needs of the business.

Wednesday, December 8, 2010

Lean Tips Edition #6

Click this link for A Lean Journey's Facebook Page Notes Feed.

Here is the next addition of tips from the Facebook page:

Lean Tip #76 - When creating a cell consider the location of support teams.

Locate design and engineering areas close to manufacturing. Place production control in the middle of the plant floor. Make them share common break areas. Foster communication and visibility by sharing information on visual displays and have common meeting areas.

Lean Tip #77 - There is much to be said for combining operations rather than specialization in a series.

Think about the checkout line at a grocery store. Would you rather progress through a series of checkouts, each one specializing: the first on fruit and vegetables, the second on drinks, the third on dairy, etc. Shopping would be a pain.

Lean Tip #78 - Batching causes time lost while waiting of three components.

The waiting time has 3 components, which are the time lost while waiting for:

- Completion of the batch a particular product or service is part of

- Completion of the batch ahead of the batch a particular product or service is part of

- Management to get around to making and executing the decision to send the batch on to the next step of the value added process

Lean Tip #79 - Use problem cards as an SOP for troubleshooting.

Problem (Trouble shooting) cards are "what if" cards to cope with relatively rare but important contingencies. What to do if the chuck breaks, for example. Most air force pilots are used to the idea of these cards in an emergency in order to avoid potentially disastrous mistakes in a time of crisis.

Lean Tip #80 - A test card can help you with your tasks.

Test cards include a small number of questions on the task - true or false, or multiple choice - used for standard ops where:

•Tasks are done infrequently

•A new operator requires confirmation

•There is a job rotation amongst the team.

Lean Tip #81 - Single Point Lessons can be used as a reminder of a training aid.

A single point lesson is sheet of paper focused on a single lesson that can be covered in 5 minutes of less. It is often used in TPM (Total Productive Maintenance). The purpose is to reinforce ares where difficulties have been experienced in quality, safety, downtime, etc. It can be used as a reminder or a training aid.

Lean Tip #82 - A RACI chart is a good practice for SOPs (Standard Operating Procedures).

RACI denotes who is R = responsible, A = accountable, C = needs to be consulted, I = needs to be informed. For example:

Supervisor Operator Facilitator Area Manager

Prepare SOP C C R A

Write SOP C R I A

Approve SOP R I C A

Audit SOP R & A I I A

The RACI charts also has a wide application outside SOPs like use on A3.

Lean Tip #83 - Standards are not to be used for a 'Gotcha' moment.

Standards should not be used to catch people but to enable them. This is like a tennis or golf lesson. You don't hide your weaknesses from the coach, your bring them out because you want to improve. This is the essential spirit that needs to be fostered with standards.

Lean Tip #84 - When reducing changeovers consider categorizing adjustments into three.

Adjustment is an important consideration that can consume much time. Moreover, adjustment is the root of many quality problems. List all adjustments on paper, then categorize into three items. First, adjustments that should not be made. Second, adjustments that have a limited number of standard settings. And third, adjustments that truly need adjustment. Start by attacking the first category.

Lean Tip #85 - Variation in changeover time is almost as important as the changeover time itself.

If a changeover has large variation, then good scheduling practice is made difficult. Therefore, track the major elements of changeover and determine which stages have greatest variation. Then tackle variation as a separate exercise.

Lean Tip #86 - Successful changeover comprises of four key elements.

There are four elements to successful changeover. Attitude, including workplace culture and receptiveness to change. Resources, including time, money, personnel, training, tools. Awareness, including the contribution of changeover to flow, flexibility, inventory, capacity and awareness of different possibilities achieving quick changeover. Direction, including leadership and vision. priority and ranking, (and presumably impact on the value stream).

Lean Tip #87 - Address the four areas of changeover for real improvement.

In all changeovers there are four areas to address:

1. 'On line activities' - by internal and external task reallocation, or by designs that allow the sequence to be altered - for example simultaneous rather than sequential steps

2. Adjustment - by reducing trial and error by for example indicators and shims, or by design which allows 'snap-on' adjustment

3. Variety - by standardization and standard operations or by design which reduces the possibilities of variation - poka yokes

4. Effort - by work simplification and preparation or by design which incorporates simplification - for example fixing multiple hoses by one fixture.

Lean Tip #88 - For Lean supply to work there must be a few or even single suppliers per part.

The idea is to work with a few good, trusted suppliers who supply a wide range of parts. An objective is to remove the long tail of the supplier Pareto curve by 10% whereby perhaps 10% of the parts are supplied by 80% of the suppliers. Generally, collaborative long-term supplier partnerships make sense for 'A' and possibly 'B' parts, less so for commodity items.

Lean Tip #89 - There are essentially two basic and opposing models of how to relate to suppliers.

The two models: the cost-driven adversarial model and the long term collaborative model. The former is the traditional model where you aim to negotiate hard, get the best unit cost. And if next year another supplier offers you a better price, you switch. The Lean model is very different. Here the relationship is built on trust, and long-term commitment.

Lean Tip #90 - A Lean supplier partnership features 4 key elements.

The features of a Lean supplier partnership are:

1. Long-term collaborative relationships: where trust and commitment, as well as respect of the right of mutual existence are the prime directive.

2. Dual sourcing: each component will have few, but at least two sources.

3. Joint improvement activities: there is a strong collaboration with suppliers on operational improvement.

4. Operations and logistics: Level production schedules are used to avoid spikes in the supply chain.

Monday, December 6, 2010

10 Things to Avoid During a Kaizen

Kaizen is the Japanese name for continuous improvement. While Kaizen is really about improvement involving everyone everyday it is often associated with a structured event. Kaizen events fill the gap between individual, very local improvement initiatives and bigger initiatives such as value stream improvement. They are essential to get cross-functional and multi-level teams involved in a Lean transformation. In that respect, kaizen events have a dual role – to make improvements but also to teach and communicate.

In order for a kaizen to be successful it requires a great deal of both preparation and follow-up. Here are 10 things I have learned over the years to avoid during a kaizen:

Lack of a charter

A charter is used to establish the framework of the kaizen. It determines what the problem statement is, relevant background information, time frame, team members, some estimation of the resources involved, and how the improvement will be measured. Without a charter the kaizen could take a very different direction.

Lack of identification of critical success factors

In order to make the kaizen successful you need to identify what elements are critical to the process. You must determine how you will measure the success of this kaizen so you know if your countermeasures are effective. Without measurement the kaizen can go on and on.

Scope is too large

The size or amount you will tackle within the kaizen is important for getting things done. If the scope is too large you run the problem of never implementing an improvement.

Kaizen event not linked business plan

You want to do kaizens that will help you meet your organization's goals. It can be wasteful to improve processes that are not part of the plan since resources to perform kaizens are limited.

Poor team selection

The team members on the kaizen are the brain power and manpower behind the improvement. Picking the team members should be an important part of planning the kaizen. You need to consider people's skill sets, expertise or knowledge, individuals within and outside the process, and who will provide the learning.

Striving for perfection

If you try to achieve perfection you may well be at the kaizen a very long time. Perfection is elusive. If you can accomplish 80% of what you set out to and meet the goals of the charter then call it complete. You will be back to improve from this new state again.

Poor follow through

In some kaizens it can be difficult to complete all the items you want within the time frame of the kaizen. Failure to follow through on these can undermine the team's efforts. It is also necessary to ensure the improvements that are made are maintained to prevent backsliding.

Not presenting results

Failure to present the results after the kaizen can cause the team to feel unappreciated. It also restricts learning throughout the organization. Another area can have a similar situation that can benefit from knowing how this team solved the problem.

Lack of visibility for non participants

Getting the buy in from those who are not participating on the team is important for sustaining the improvement. When you are part of team you are involved in the solution. For those who are not we need to make them aware of the improvements the team is making. If you don't they will naturally resist the improvement.

Lack of management commitment

Management must not just support the kaizen but actively participate. Kaizens are as much a learning opportunity as anything else in the organization. Management must ensure the team has everything they need to be successful and when they are management must recognize the accomplishment.

Learning what not to do is as equally important as learning what not to do. Don't make any of these mistakes on your kaizen and it will be a success. From your experience what advice would you give others to be successful at kaizen?

Friday, December 3, 2010

Lean Quote - Inventory Buffers A Lack of Information

"Inventory is a substitute for information: you buy them because you are not sure of the reliability of your supplier or the demand from your customer” - Michael Hammer,The Economist, 2000

To continue with the theme from A Lean Journey's Daily Tips on supply chain this week I thought this quote was appropriate. This is also the season when the news is covering stories of Christmas toy shortages due to supply chain issues.

Improving in-season inventory positions requires getting merchandising, planning, supply chain, marketing and other functions to work off “one version of the truth.” It also means aligning these teams around the same critical metrics.

Numerous functions play a role in a retailer’s inventory management—not just the planning or supply chain functions. These functions may have quite different information on what’s selling (or not) and why, when product is due to arrive and when and where it is needed. This lack of common information leads to errant plans and disjointed operations, or simply put, the wrong inventory in the wrong place at the wrong time.

Where you have perfect information, you don't need any buffer stock. The less reliable information you have, the more inventory you need to hold. On a basic level there are two pieces of information needed: the reliability of the supplier to deliver to you and the stability of the demand from the customer. Inventory is a buffer for fluctuations in these two components of the supply chain.

Art Smalley, President of the Art of Lean, has a great visual explaining the basics of Toyota's inventory logic:

To improve the information you have about your supply chain these are some questions you can ask:

What is your on time delivery performance?
What is your lead time?
What is your inventory level?
How much time do you spend looking for components?
How good is the quality of your supplier?
What is your supplier's on-time delivery performance?

Art demonstrates that making improvements in your supply chain with the emphasis on lead-time can have a big impact on inventory.

So if you want to reduce your inventory substitute distortions or uncertaninty in your supply chain with good information while continuously improving your cycle time.

Thursday, December 2, 2010

Lean in the Fast Lane

Earlier this year I was fortunate to work with MassMEP to create a unique training opportunity for one of our facilities. The goal was to support transformation in a rather challenging area of our unionized plant, the maintenance trades. We thought learning about Lean in this fun and energizing way would win them over. We have seen many Lean improvements as a result of this approach. Here is a summary of the first exercise we did called "Lean Management in the FAST Lane":

On Wednesday, June 30, 2010, the first “Lean Management in the FAST Lane” event was held at Thompson International Speedway in Thompson, CT. Teams from both Yankee Candle Company located in South Deerfield, MA and OFS, Fitel in Sturbridge, MA made up our first event. The day began with an introduction to a number of Lean Concepts which would be critical to the success of each team’s pit stop rounds to be held during the afternoon. Presentations and discussions included Continuous Improvement, Building a Winning Culture, Metrics and Measurement, Teamwork, Standardized Work, Job Instruction (JI), Job Methods (JM) and Sustainability. Each lean concept included examples demonstrating the use and application of the concept in the world of NASCAR racing.

The afternoon consisted of a walk around Thompson Speedway lead by former NASCAR Winston Cup Series 1988 Rookie of The Year and NASCAR Whelen Modified Tour driver Ken Bouchard. Each team then “suited up” for their training and 5 rounds of pit stops. Each round was video taped and critiqued including continuous improvement concepts and suggestions to improve their pit stop time in the next round. The results were amazing with each team able to cut their time in half by the fifth round. The OFS, Fitel team has set the bar for future teams with a “lightening fast” time of 19 seconds to change two tires and fill the tank with fuel.

“This was a very positive activity with lots of potential” said Tim McMahon, Lean Manufacturing Leader for OFS, Fitel. “I would highly recommend this event to others who are interested in further developing their lean concepts and teambuilding activities. Thompson International Speedway is also an excellent venue for this event” continued McMahon. Peter Dowling, Manager of Operations for OFS, Fitel had similar comments stating that “This program can go in so many positive directions, I really think you have something here.”

Now there is a video demonstrating the application on Lean thinking to solve problems utilizing team work from this training event. If you look closely at the video you can see the transformation from the baseline to the last improvement which over the course of several hours is quite dramatic. My company OFS is the blue team.

OFS was able to improve from 30 seconds to 19 seconds using video analysis, job breakdown, poka yoke, and standard work.

A couple of key points I would like to emphasize:
1. Tailor your approach to Lean training to you audience if you want it to stick.
2. Emphasizing team work is essential in problem solving.
3. Competition is a always a good motivator.
4. People want to win, so help them win by providing the know how and the time to improve.
5. Learning can be fun, but you must bring the learning back to your organization.

Get in the Fast Lane with your Lean training.