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Infor

"Infor is the world's third largest business software company. We develop and acquire proven software products that have rich, built-in functionality. Then we make them better. We invest resources into product innovation and enhancement. We work hard to simplify and shorten implementation times. We enable our software, services, and support globally. And we provide more flexible buying options."
Source : Infor
Resources Related to Lean Manufacturing:

Begin at the End: A Good Lean Strategy Starts with Defining Your Ultimate Goal

Lean Enterprise is also known as : Lean Enterprise, Lean Management, Lean Manufacturing Techniques, Lean Manufacturing Concepts, Lean Manufacturing Epic Data, Lean Manufacturing Guide, Lean Manufacturing Optimization , Lean Manufacturing Principles , Lean Manufacturing Solutions , Lean Manufacturing Strategy, Lean Manufacturing Systems, Lean Manufacturing Tools, Lean Process Design, Lean Product Development, Lean Strategy, Lean Strategy , Lean Tools, Value Stream Mapping, Value Stream Simulation

Table Of Contents


  • The Lean Paradox
  • Traditional Approaches to Lean
  • 5S
  • Kanbans
  • Kaizens
  • Value-Stream Maping
  • A Better Approach
  • Summary

The Lean Paradox

You already know the statistics'lean can allow you to become very profitable and competitive. It will shorten your lead-times, reduce inventories, cut operating costs, free up resources, and more. But, countless surveys have confirmed that most lean initiatives are abandoned outright or fail to deliver expected and needed results. One well-known lean business consultant estimates that the failure rate is 98% (as measured by little impact to the bottom line),1 and we have found little reason to doubt these findings. What is it the 2% of companies know that the others do not? Are these successes confined to a restricted list of industry sectors, or even narrower list of company types? Are only "lean experts" capable of leading an organization through a successful implementation? Our own studies suggest that lean CAN apply to any business'to any manufacturer, service company, educational institution, etc. We find no data to indicate that employing lean principles cannot be a very effective business model for practically any organization. Furthermore, we find the failures alarming' the benefits of lean are too important to allow poorly defined lean strategies or ineffective execution to continue to be the norm.

The benefits of lean are too important to allow poorly defined Lean strategies or ineffective execution to continue to be the norm.

Traditional Approaches To Lean

Upon review of some of the more disappointing experiences with lean, we identified several "generic" complaints, excuses, and issues. Following is the typical list given as pitfalls or reasons for lean failure:

  • Lack of management support
  • Poor metrics
  • Not enough training
  • Resistance to change
  • Ineffective communications
  • Not able to sustain initial efforts
  • No buy-in from supervision
  • Not expanding improvement from the initial efforts to other departments
  • No buy-in from workforce

There are two significant observations with the above list. First, it could apply to any strategic initiative'from a business merger, to putting in place a new information system, and anything in between. Second, these aren't very specific'they tend to be symptoms of more deep-seated issues. Our research indicates that many of these are the result of an inadequate lean strategic plan. In order to help put these into context, let's review some of the more traditional approaches to starting a lean implementation.

5S

5S. Many companies begin lean by employing a technique called 5S, or Workplace Organization. The "5" and "S" come from the five Japanese words; seiri, seiton, seiso, seiketsu, and shitsuke. The English equivalents (keeping the "5S" theme in mind) are: sort, set, shine, standardize, and sustain. Essentially, this is a process to organize a work area, focused on improving efficiency, safety, layout, and flow. 5S produces some immediate and obvious results. Workplaces are indeed better organized. Tools and materials are maintained in well-defined locations. Operators notice that their jobs become somewhat easier. Supervisors find that it's simpler to visually identify problems' inefficiencies, excess inventory, misplaced equipment, etc. And, there may even be a marginal increase in productivity. But, the benefits are difficult to sustain, improvements tend to be isolated, and impacts are difficult to quantify.

Kanbans

Kanbans. The word kanban means visible record in Japanese. In lean lexicon, it is essentially a signal to produce or move product. A kanban may be an electronic signal, an empty bin, a card, a pallet, or a defined area to hold inventory. Kanbans are used to manage inventory'quantify and flow. In the ideal lean world, product is "pulled" towards the customer, through the factory, from the supplier in quantities of ONE' hence the term one-piece-flow. However, in many circumstances, it's impractical to produce and move product one piece at a time. So, kanbans become a compromise; allowing the company to move small, controlled batches of material in a pull environment. The use of kanbans can dramatically reduce total inventory. And, since lead-time is almost directly proportional to work-in-process inventory (WIP), well-defined kanbans can provide a significant improvement in lead-time. But, there can be problems. Using kanbans without other coordinated improvements (such as reducing equipment changeover times) can back-fire, resulting in degradation in equipment utilization and even problems with on-time delivery. Also note that since kanbans are a compromise to true one-piece-flow, companies that have effective kanban systems sometimes become complacent and do not address the root causes that created the need to maintain inventory; long changeover times, imbalanced processes, long distances between work centers, quality problems, lack of operator cross-training, etc.

Kaizens

Kaizens. Also known as kaizen blitz. This may be the most common starting point for a lean initiative in US manufacturing companies. Kaizen is the Japanese word for continuous improvement. This approach involves empowering work teams to rapidly (hence, the word blitz) improve specific problems within their areas of responsibility. On the surface, this seems like a very good idea, and it can generate immediate and measurable benefits. The use of kaizens, especially if championed by management, finally proves to the workforce that the company is interested in listening to and supporting their improvement suggestions. Some of the more common targets for kaizens include; solving an equipment downtime problem, combining two or more machines into a work cell, setting up a kanban, reducing equipment changeover time, implementing pointof- use storage for supplies (maintaining storage where the supplies are actually used), etc. But, this program can fall prey to a phenomenon known as "drive-by kaizens"' improvements are implemented stand-alone, without prioritization, and without understanding how changes in one part of the facility might impact negatively other functions. Other critical problems with this approach are that; (1) it tends to overlook consensus, and (2) there is little time taken to actually identify and eliminate root causes' there is more focus on speed than there is on planning.

Value Stream Mapping

Value-Stream Mapping. The value stream is defined as all activities and events (both value-added and non-value-added) that a product or service passes through on its way from supplier to customer. In a manufacturing facility, this includes shipping, waiting (in inventory, in a queue to be processed, or even in an oven waiting for adhesives to cure), packaging, inspection, rework, and both manual and automated processing. When we map the value stream, we map both the product and information flows. The primary purpose of a value-stream map, specifically a "current state map," is to highlight areas where one-piece-flow breaks down'these points suggest opportunities for improvement (i.e., kaizens). Other purposes of mapping include; measuring the total cycle time, identifying inventory locations, and determining points in the process where signals to produce arise. Once a current state map is created, one or more "future state maps" are developed from it, showing where various kaizen events might eliminate root causes for stoppages in flow. The two reasons for creating alternative future state maps are; (1) certain improvements might be logistically, technologically, or cost prohibitive, and (2) there is no single correct future state. The VSM approach is significantly more effective than the aforementioned approaches because it prioritizes the improvement efforts. But, it still has drawbacks.

One issue is that it involves those who will be impacted by the change much later in the improvement cycle than the 5S and Kaizen techniques'this late involvement of stakeholders tends to foster resistance to change.

Perhaps the most important point is that of "competing value streams" and impacted support functions. In most organizations there exists more than one value stream' more than one product line, or one product line that produces two or more different items.

These different value streams frequently compete for resources; equipment, people, materials, etc. Additionally, all organizations have departments that support the operations or production department'accounting, purchasing, quality, maintenance, engineering, etc. If we change one value stream without understanding how it impacts a competing value stream or a support function, we may negatively impact the overall organization. It's important to note that focusing on the value stream is a relatively recent addition to the slate of lean tools and techniques. This concept was introduced by Toyota Motor Company in the 1980's. The result is that we now treat individual processes within this value stream as a system. But, until now, we haven't applied this systems approach to the entire organization.

A Better Approach

Those companies that have been successful with lean have managed to overcome most of the pitfalls noted in the section Traditional Approaches to Lean and resolve those issues listed in each specific approach. Based upon our research and experiences, we tend to consolidate all these into a more focused list, as follows:


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