Tag Archives: manufacturing

How to Start a Real World Lean Transformation by Live Simulation

 

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Visions of reducing inefficiencies for real-world Lean transformation in manufacturing, distribution, and supply chain operations are only the tip of the iceberg.   Imagine what a live workplace simulation workshop can do for your organization.

A couple of questions are often asked: “Why does anyone need Lean?” and “Would the time and expense of a live simulation workshop be justified?”

Let me answer this first question. If you’re not familiar, Lean is a continuous improvement initiative focused on providing customer value and eliminating waste from processes. The end result is a streamlined operation  able to deliver higher quality products on-time while using fewer resources.  For an explanation of Lean basics you may refer to an earlier blog article .

A live factory simulation workshop is a hands-on technique used for more than twenty years to demonstrate basic Lean concepts. The simulation mode brings in a fictitious operation to serve as a learning tool.  Simulation exercises are conducted to demonstrate different types of waste, and their elimination, as well as relate the techniques learned to “real world” scenarios.

The format of a simulation workshop is divided into several sections or rounds to represent each of the shifts (or days) of the fictitious production facility. Participants are part of the process – through every wheel, screw, and nut assembly. Much like a sports game that excites and draws everyone together to win, Lean simulation workshops have this same effect.

First round starts by intentionally demonstrating the chaos and waste commonly found in a traditional manufacturing environment. Lean principles are gradually introduced and practiced during the subsequent simulation rounds. Discussions open up to talk about what works well and what waste may be eliminated from the process.

Quality rejects, inventories, product quantities shipped, on-time delivery, and profit/loss are tracked and reviewed after each round, so that the effect of waste elimination is clearly identified and quantified.  The simulation continues to introduce the Lean tools and concepts during each round until the final round represents a Lean Enterprise.

At this point, the total benefit of the Transformation can be assessed.  In addition to improved customer satisfaction resulting from product quality and on-time delivery, other physical and financial benefits are demonstrated.  A Lean transformation involves cultural change, and therefore, essentially everyone in the organization should be part of the simulation exercises. Teamwork and the desire for continuous improvement are emphasized throughout the workshop.

Simulation materials may range from actual products like pens and switches to more whimsical demonstrations using Lego assemblies, wooden toys, and paper airplanes. The goal is still the same: eliminating waste. In fact, office simulations have, in a similar way, focused on the elimination of  paperwork and information capture not integral to business objectives.

One of the most difficult choices people have to make is to commit to starting this journey to implement Lean practices. Often the sentiment is that a simulation takes too much time.  In particular, one business owner recently told me “we don’t have the time to stop production to do that kind of training.”

Is there ever ‘the right time’? Most business people would suggest, now, more than ever, is the right time. To prove this point, a Lean transformation would realistically open up opportunities for business, improve the bottom line, and conserve time and expense. That is exactly what happens in a successful Lean transformation. The simulation workshop has become a necessary first step for a successful implementation.

The QMA network of quality experts offers workshops and facilitation to guide organizations on their Lean journey. We don’t claim to be visionaries or missionaries, just that we’re able to demonstrate the most cost effective ways to build more value into the business.

In our experience facilitating Lean transformations, a live simulation provides a higher level of understanding and fully engages employees in accomplishing these business goals through a successful Lean transformation.

The hands-on experience, combined with our in-depth Lean expertise and guidance, enables participants to relate their own “real-world” experience. And the round-to-round factual comparison of Lean practices and benefits, in my opinion, make simulations a superior method of preparing an organization for a successful Lean transformation.

One further note: Workshops of this kind would typically take a full day.

QMA has developed the “Zippy Toy Car” Simulation (another way to say we get it done quickly), a dynamic four-hour workshop of  three rounds that covers the most important concepts as compared to longer workshops.

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The Lean concepts you learn can be literally taken back to your workplace and practiced the same day. The shorter and dynamic format maintains a high level of energy while reducing the investment of time.

Our popular Lean Office simulation workshop takes place at the “Department of Approvals”, a simulated service organization workshop, participants progressively implement Lean tools to experience a transition from a traditional office setting to an efficient Lean service environment. Participants continuously track progress of improvements by collecting data in a report card and monitoring performance measures through each simulation. The workshop leads management and workforce teams through the application and use of Lean tools in making immediate process improvements.

Our training is designed for in-house delivery, but is periodically offered as a public workshop.  Our next workshop,co-sponsored by ASQ South Florida, is scheduled for April 20, 2012.  See our Events page for more details.

Have you experienced a Lean simulation?  Do you think it is worth the four hour investment and expense?

 

Lean ISO and the Eighth Waste

The elimination of waste is the main focus of Lean Manufacturing.  In recent years, many organizations have incorporated the concept of the “eighth waste” in their implementation of Lean Manufacturing.  Many early sources spoke about the Seven Wastes that are found in most processes:

  • Overproducing
  • Transporting
  • Waiting
  • Inappropriate processing
  • Building unnecessary inventories
  • Conducting unnecessary movements
  • Defects and errors

Lean practitioners have come to recognize that elimination of these seven wastes is highly dependent on getting people involved in the Improvement process.  This failure to fully utilize the workforce talents and fully engage employees is now considered the most significant waste of all and is referred to as the eighth waste.

These wastes are symptoms of the underlying root cause for the real problems. For instance, excess inventories may be an indication of unbalanced workloads, machine breakdowns, misunderstood customer requirements, and unreliable suppliers.

Being on the lookout for the evidence of waste provides a starting point for the investigation of the root causes and for finding solutions to the problems.  Employees are not only closer to the symptoms, but also closer to the root causes of the problems.

In a previous article, I explained the compatibility of ISO 9001:2008 and Lean Manufacturing.  ISO 9001:2008 specifies that the organization must disseminate its’ Quality Policy and Objectives so that all employees understand them and how their jobs contribute to them. It also specifies that the organization must be engaged in the continual improvement of its Quality Management System.

The eighth waste can be described as “underutilized minds.”  Although ISO has some built-in requirements for improvement such as internal audits, corrective and prevention action systems, it does not prescribe how employees, in general, should be involved in the continual improvement of the organization.

To address the eighth waste, organizations desiring to institute a Lean ISO system need to:

  • Train employees early in the process on the Quality Policy and Objectives  so that they begin to understand their roles in the process.
  • Engage employees in the documentation process including involvement in writing the initial drafts of procedures or work instructions.
  • Select and train employees as Internal Auditors so that they learn about other areas within the company when participating in audits.
  • Involve employees in Internal Audits as both Auditors and Auditees.
  • Engage employees in workspace organization and standardization (5S) and in improvement events such as Value Stream Mapping and Kaizen activities.
  • Train employees in root cause analysis and basic problem solving techniques so that they can assist in maintaining the Corrective and Preventive Action Systems (CAPA).
  • Develop workplace organization score cards and train your Internal Auditors in their use.

These actions will significantly reduce the eighth waste in the organization by engaging the workforce in the Continual Improvement process.

Manufacturing and Innovation

There is no doubt that the key to long-term success in manufacturing is innovation in every facet of the business, from developing unique products, like the iPod, to finding new ways of getting products into people hands, like Amazon.com.

Pharmaceutical and consumer products companies, among others, have historically shifted their mature products overseas, while maintaining at least some of their domestic operations for the development and early production of new products and line extensions. US based manufacturing has heavily relied on the rate of innovation of the organization. This trend continues and is the key to our manufacturing base.

High margin products, such as medical devices, are less sensitive to relative production costs as long as they have a unique product. Even in those cases, as volume increases the financial pressures to migrate production to locations with lower labor costs also increase. Such high margin industries continue to be significant to our manufacturing base.

In South Florida, manufacturing is not considered by local governments as a target sector for expansion. No effort is made to attract new manufacturing plants. Municipalities and county governments are more interested in attracting and retaining “cleaner” industries, such as, tourism and entertainment. On a national scale, manufacturing has not been recognized as the significant sector that it is.

The role of government at every level is to provide the conditions needed for innovative manufacturing to flourish and to prevent other countries from establishing barriers to the entry of our products while our doors are wide open to the world’s products.

To summarize, I agree that innovation is the key to continued success combined with forward thinking leadership at every level of government.