Quality Beyond Manufacturing

In this month’s ASQ post Paul Borawski asks about quality beyond it’s roots in manufacturing.

Customers and companies alike recognize that quality is an important attribute in products and services. Suppliers recognize that quality can be an important differentiator between their own offerings and those of competitors.

It was in the second part of the twentieth century that ‘quality’ boomed in application by industrial and service organizations. Japan and the United States were the first countries to look at quality as an important competitive advantage. However, the quality movement can trace its roots back to medieval Europe, where craftsmen began organizing into unions called guilds in the late 13th century. Until the early 19th century, manufacturing in the industrialized world tended to follow this craftsmanship model. The factory system, with its emphasis on product inspection, started in Great Britain in the mid-1750s and grew into the Industrial Revolution in the early 1800s. In the early twentieth century, manufacturers began to include quality processes in production. It was only in the late 1970s that service quality emerged as a solid management discipline and practice.

Recently, quality improvements (and Lean) have moved from manufacturing plants to operations of all kinds, everywhere: insurance companies, hospitals, government agencies, airlines, high-tech product development units, oil production facilities, IT operations, retail buying groups, and publishing companies, to name just a few. In each case the goal is to improve the organization’s performance on the operating metrics that make a competitive difference, by engaging employees in the process and improvement activities.

The biggest challenges in adopting the quality (and Lean) approach in nonindustrial environments are to know which of its tools or principles to use and how to apply them effectively. Organizations succeed or fail based on what happens within specific key business processes. Focused process improvement is a fundamental requirement to sustain initiatives like quality or Lean and to generate positive results.

All products and services are produced and delivered through work or business processes. A process can be defined as the sequential integration of people, materials, methods, and machines so as to produce value-added outputs for. A process converts measurable inputs into measurable outputs through an organized sequence of steps. Furthermore, the process model applies to both manufacturing and nonmanufacturing work.

Nonmanufacturing processes differ from their manufacturing counterparts in any of three ways. Manufacturing is unique in that (1) its customers are isolated from production, (2) its outputs are tangible, and (3) its operations are highly repetitive. By contrast, customers usually are involved directly in the delivery of services, and the value added by nonmanufacturing processes is often characterized as intangible. Some nonmanufacturing processes are repeated infrequently, and their outputs can be unique.

Customer participation in the production of the output is the first key characteristic which distinguishes manufacturing from nonmanufacturing processes.

Many organizations don’t sustain their quality or Lean efforts because they are not focused on improving critical business processes. Successful companies recognize the need to extend the quest for quality beyond manufacturing. Quality awareness must be inherent in all aspects of our business through new product development, manufacturing, administration, sales and customer service.

As the quality (or Lean) approach percolates into ever wider circles, it ceases to be about best practices and starts to become a part of the fabric of doing business.  The next level of the quality (or Lean) journey is managing the softer side of the equation – less about tools and frameworks, more about building the energy and engagement of employees from the shop floor and the office, tapping into their ideas, focusing them on constant problem solving, and keeping them open to change and flexibility.

I’m part of the ASQ Influential Voices program. While I receive an honorarium from ASQ for my commitment, the thoughts and opinions expressed on my blog are my own. 

Lean Quote: Lost Time is Never Found Again

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.

"Lost time is never found again." — Benjamin Franklin

Every time we put something off, the excuse is some variation of the same: "I'll get to it later. I won't be long. I've got plenty of time." Once that moment is gone, though, it's gone forever.

While it may be tempting to think that it's okay to put something off, the truth is you'll never get those minutes back. You can allocate future time to doing tasks you could do now, but that's essentially spending on credit.

Consider these 7 golden rules of time management for effective management of our most valuable commodity.

1. Time is fleeting. Think about it...the moment you started reading this is gone, never to be regained. It seems we get so caught up in petty circumstances that we forget what we set out to do, and before you know it, the day is gone!

2. Time is valuable. You always have time to make money; but you can never have enough money to make time!

3. Time is unforgiving. The amazing thing about your time; even through no fault of your own, even "wasted" time will never stand still.

4. Time is money. You must be constantly asking yourself, "Am I doing the most productive thing I can be doing right now?" Watch out for those "wasted" moments we were talking about earlier.

5. Time is always changing. We all must constantly renew our minds, and let the past be just that...the past! It can't help you now, aside from the learning experience, don't dwell on it.

6. Time is the ultimate judge. We have all heard "time will tell!" Well, there is some truth to that, as the future has a way of finding any flaw in the plan. Pre-planning will save massive amounts of your precious commodity called time.

7. Time is in your control. We can all be more in control of our day and how we spend it. Today should have been planned out yesterday, and tomorrow should be thought about today.

Time can't be saved.  It can only be spent! We spend it at the exact rate of one minute per minute. We can’t spend more or less no matter how hard we try. We can’t spend more than 5 minutes in five minutes with a friend, and we can’t spend less than 5 minutes in five minutes being angry in traffic. Our rate of spending is fixed. All we can control is where we choose to invest…

 

Reducing Changeover Increases Capacity Through Flexibility

In manufacturing, changeover is the process of converting a line or machine from running one product to another. Changeover times can last from a few minutes to as much as several weeks in the case of automobile manufacturers retooling for new models.

Reducing changeover time is like adding capacity, increasing profitability and can help most manufacturers gain a competitive edge. Image a pit crew changing the tires on a race car. Team members pride themselves on reducing changeover by even tenths of a second because it means that their driver is on the road faster and in a better position to win. The same philosophy applies to manufacturing – the quicker you are producing the next scheduled product, the more competitive you are.

The purpose for reducing changeover time is not for increasing production capacity, but to allow for more frequent changeovers in order to increase production flexibility.  By reducing changeover times, your company will be able to run smaller batch sizes. If being able to offer a mix of products and services is important, then quick changeover will reduce the number of operations you need to run every day, week, or month.

The benefits of quick changeover include:

• Reduce defect rates - Quick Changeover reduces adjustments as part of setup and promotes quality on the first piece.
• Reduce inventory costs - Elimination of, or reduction in numbers of batches, and their sizes, allows for recovery of operating cash and manufacturing space.
• Increase production flexibility - Increase output and improve timeliness of response to customer orders.
• Improve on-time delivery - Quick Changeover supports the ability to meet customer demands.

The keys to quick changeover are found in changing your thinking about changeover as in the following:

1. Rethink the idea that machines can be idle, but workers cannot be idle.
2. The ideal setup change is no setup at all or within seconds.
3. Ensure that all tools are always ready and in perfect condition.
4. Blow a whistle and have a team of workers respond to each changeover.
5. Establish goals to reduce changeover times, record all changeover times and display them near the machine.
6. Distinguish between internal and external setup activities and try to convert internal to external setup.

To start identify and separate the changeover process into key operations – External Setup involves operations that can be done while the machine is running and before the changeover process begins, Internal Setup are those that must take place when the equipment is stopped.  Aside from that, there may also be non-essential operations. Use the following steps to attack the quick changeover:

Eliminate non-essential operations – Adjust only one side of guard rails instead of both, replace only necessary parts and make all others as universal as possible.

Perform External Set-up – Gather parts and tools, pre-heat dies, have the correct new product material at the line… there's nothing worse than completing a changeover only to find that a key product component is missing.

Simplify Internal Set-up – Use pins, cams, and jigs to reduce adjustments, replace nuts and bolts with hand knobs, levers and toggle clamps… remember that no matter how long the screw or bolt only the last turn tightens it.

Measure, measure, measure – The only way to know if changeover time and startup waste is reduced is to measure it!

To compete in today's manufacturing markets, it is necessary to have diverse product lines that can be manufactured and delivered to the customer in the shortest time possible. Producing a large range of products in a short amount of time is only possible through efficient and effective manufacturing practices. Reducing the changeover time is one way to accomplish this goal.

"Everybody Get Lean" - Learn From Mistakes and Miss-Steps!

Riley Sweeney, from Uttana,a Lean training video company sent me a video of great comedic webseries "Everybody Get Lean." The series is a work place comedy about lean programs and everything that can go wrong when people go overboard. They shot a total of four episodes, though only the first one has been released. If it picks up steam then they will be making many more. 

Kaizen is not easy and involves total commitment and total involvement of everyone in the organization. Ultimately, everyone needs to support Kaizen to be sustainable. See and learn how this group of people don't get it and apply Lean and Kaizen in the wrong manner with hilarious consequences! Watch the antics of the Expira office team as they go astray on their Lean journey. But learn from their mistakes and miss-steps! 

Learn how to do Lean the right way at http://uttana.com

Lean Quote: Survival Is Not Mandatory

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.

"It is not necessary to change. Survival is not mandatory." — Dr. Edwards Deming

I always liked this quote from Dr. Deming. I thought it really highlighted the importance of change. 

The point is that you don’t have to change, but it is key to survival. Over time everything changes and you must be able to keep up with the changes and adapt or change also. If you don’t, things will pass you up and eventually you won’t survive. 

This rarely happens overnight. GM is a great example. For decades, they did not change a single thing about there management, accounting and manufacturing practices. Finally, after the turn of the century Toyota caught and overtook GM as the #1 car manufacturer. Profits are higher. 

Quality is higher. Even with the stumble by Toyota a few years ago with the quality issues, they maintained their profitability and continued to change. 

There comes a time where every company needs to change its practices in order to survive. In some cases, it may take years or decades to feel the pressure (GM) and in some cases it may take a few months (tech companies). 

Of course, you don’t have to change, because there is nothing to say you have to survive.

About the Author: Today's Lean Quote is brought to you by Matt Wrye, blogger at Beyond Lean. Matt has a been a good friend through my online Lean trials and tribulations. With Matt's 10+ years of lean implementation and problem solving experience, he is able to draw on his successes and failures to tackle new challenges by presenting fresh perspectives and results-driven solutions. His cornerstone belief is that all levels of the business unit should be educated on lean thinking and principles. To this point, Matt diligently challenges his own lean knowledge while working with all business levels ranging from human resources, accounting and the manufacturing floor to senior managers, executives and presidents. By adhering to this continuous learning philosophy, Matt is able to focus his lean efforts to provide continuous improvement. 

 

Daily Lean Tips Edition #54 (796-810)

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 #796 - Everything is Important But Some Things are More Important than the Others

A cornerstone of Lean Six Sigma is the Pareto-law or 80/20 law. Choosing the right project, focusing the project on the key problems, selecting the main causes of the problem or defining the improvement actions is important. Determine which activities/problems are most important using data, not perceptions.

Lean Tip #797 - Don’t Take on Massive Projects

Massive projects, taking place over long stretches of time, can encourage procrastination – as far-off goals are less motivating – and can be discouraging since your team will feel that they are achieving less. Instead, try to work on smaller and more focused projects, which will be far easier for your team to concentrate on.

Lean Tip #798 - Middle Management is Essential For Motivating Your Team

In order to properly motivate and keep a close eye on your team, Middle Management is essential. Make sure that your project leaders are keeping them in the loop, and they will ensure a smooth and connected working environment.

Lean Tip #799 - Make Sure Your Leaders are Active Teachers

All leaders, and especially senior leaders, have to remain fully engaged. It is their responsibility to ensure that the team successfully improves, through leading process improvement activities. The project and the team will not be successful if leaders delegate their responsibilities to others – this will lead to a lack of strong leadership and possibly failed improvement activities.

Lean Tip #800 - Everyone Can Solve Problems 

Avoid thinking that experts are always needed. Although experts can be essential, on a day to day basis, everyone can use basic six sigma tools and think creatively and practically. Don’t let your team get stuck too often waiting for an expert’s opinion.

Lean Tip #801 - Create Organizing Systems.

Being organized saves tons of time, and you don’t have to be the most ultra-organized person in the world either. Systems aren’t complicated to implement.

Create a filing system for documents. Make sure all items have a place to be stored in your dwelling. Streamline, streamline, streamline.

Lean Tip #802 - Constantly Improve Your Process

Change is good, especially when it translates to getting things done with more efficiency, more expediency, or less cost. Be on the lookout for ways to do things better – it could mean you have an easier time managing your workday.

Lean Tip #803 - Think of how to do it, not why it cannot be done.

The pessimist will create all kinds of reasons that something can't be done. The optimistic, forward thinker, on the other hand, knows that "if the why is strong enough, the how will come."

Focus on the outcome. Then, come up with all the ways that the outcome could possibly be accomplished.

Lean Tip #804 - Do not seek perfection. Do it right away even if for only 50% of the target.

If we all waited for perfection, we'd still be reading by candlelight and riding horses to work. Once you get to a certain point (whether it's 50% or 80%, or another number that makes sense), then run with it. In other words, take action. Then, adjust as you go along.

Lean Tip #805 - Kaizen ideas are infinite.

Kaizen is a process of learning and growing, steadily and continually. There are always ways to "tweak" elements of your life in order to improve them. It has been said that life is a journey, not a destination.  And practicing the philosophy of continuous improvement, of kaizen, will help you to make the most of that journey!

Lean Tip #806 - Question Everything. Ask "Why" Five Times.

A brilliantly simple root cause problem-solving tool, asking why five times becomes easier the more you do it. Adopting this as a default way of looking at things will aid, not only your problem solving, but other areas, too.

Lean Tip #807 - Ideas are Infinite. Execution is the Key.

This simple maxim is often overlooked as people get caught up in meetings and so on. You've got to be the change you want to see, not the change you'd like to see. It's the same as not confusing better with best. You want to move to better right away, not take forever working out what "best" looks like.

Lean Tip #808 - Kaizen Starts With Taking a Look at the Actual Place of Work.

Continuous improvement efforts must start with a trip to the gemba. The gemba might often be the factory floor, but people forget about Lean in the office, where half of the work starts out being late! It's easy to see waste on the floor, but it's harder (at first) to see waste in the office or other value streams. Going to the gemba will make it easier.

Lean Tip #809 - Kaizen Requires a Bias for Action.

Get your teams out of the conference room and into the gemba. From there, mandate a fast turnaround time, have them quickly do a value stream map and root cause analysis for their actionable items, and post their successes right away.

Lean Tip #810 - Discard Conventional Fixed Ideas.

Part of problem solving is thinking outside of the box. Encourage people to think this way and not in the same old way that got them into the problem to begin with! Think about how to do it, not why it can't be done. I often hear, "We tried that before and it didn't work." They may have had a good idea, but the chances are that they didn't include the accountability portion. Without accountability, you will not have sustainability.

The Lego Calendar, Fun and Productive Visual Management

Productivity tools and techniques have been a frequent topic of discussion here. A personal kanban has been a highlight of this topic. Recently, I came across a great video series combining a common Lean training tool, Legos, and project management kanban system. 

Last year, workers at a design studio in London recently went on a quest to find a better way to organize themselves while in the office. There were a few requirements. It had to be big. It had to cover a few months into the future. It had to work both online and offline. They settled on Legos. Using Legos, Vitamins built a large, wall-mounted calendar with flat gray pieces as the base, representing the days of the week. Each person has their own line on the calendar, and is represented by a custom minifig character. Different projects are assigned different colors of bricks. The wall-sized calendar made entirely of Lego bricks also syncs with Google automatically via smartphone screenshots.


Lego calendar by Vitamins from Vitamins on Vimeo.

This Lego calendar may be the most fun business calendar ever created. Do you see an opportunity for this approach in your business?