Category Archives: Waste

Jumpping to Improvement

I have talked in the past about the importance of direct observation.  The power in seeing the waste for yourself.  It really shines a light on what is really happening and it also is the best way for a person to continue to learn.

The question is,  “What do you do with those observations?”

Most often, I see people run out and try to eliminate or reduce the waste or even assign it to someone else to do.  While not entirely a bad thing, if you are trying to instill a lean culture don’t just jump to trying to improve.

Stop and reflect about what you are trying to do as an organization and use the waste you saw as a way to further the lean culture.

Most organizations I have seen do not have a systematic way to eliminate waste.  Usually, this is because waste is one of the first things people learn about lean.  What happens is people just go out and attack waste (again not a bad thing) without any direction.

If your organization is early on in trying to implement a lean culture, think about how you can make the waste elimination systematic.

Is this a good way to engage employees in a kaizen event to start to build trust?  Could be an easy win for everyone.

Should an improvement board to post the waste seen and how it is detracting a better option?  Use the waste you saw as an example of how to use the board and go and eliminate it yourself or with the help of others, but be involved.

If you observed multiple areas, do you want to concentrate in one department?  Make it a model for others in the organization.

Think about how you can make the waste elimination sustainable and systematic.  This will benefit you and the organization in the long run.

Guest Post: Lean Material Handling: Making Production More Efficient and Profitable

Danielle M.Today’s guest post comes from Danielle M.  She has been a dedicated student of Lean Manufacturing methodologies since 2006. It was love at first sight when she read the motto, “Everything has a place; everything in its place” in her first copy of The Toyota Way.

Lean manufacturing seeks out and eliminates waste wherever it can be found. One process that can be overlooked in a manufacturing business is the very end, where products are stacked on pallets, wrapped and shipped out. What follows are a number of ways you can reduce wasted time, effort and money by finding efficiencies in your pallet packing processes.

Material handling and lean manufacturing go hand-in-hand. Without efficient material handling processes, factories and warehouses can’t fully integrate lean manufacturing into their operations.

If you want to increase production time and reduce waste in your manufacturing business, take lean material handling practices seriously. These suggestions should inspire you to make changes in your warehouse operations.

Reduce mistakes, eliminate waste

The most basic principle of lean manufacturing is eliminating waste — wasted time, inventory, movements or processes. Your production systems should be so efficient that employees know exactly what to do with each part, how to do it and when to do it.

It’s important to remember that working faster doesn’t always mean working more efficiently. Take the time to figure out the simplest method of doing something and make that the standard of operation. Ensure that all processes are scheduled to eliminate lag time between work stations; workers shouldn’t have to wait on needed parts, and materials should be worked on immediately.

Improve efficiency with standardized routes

Material handling routes can either make or break a production line. Standardized material handling routes ensure that the appropriate parts reach their destinations on time, that there are no waiting times and that production runs smoothly. Employ standardized schedules in these areas for an efficient material handling route:

  • Deliver all components on time. This is achieved by setting up kanbans (signposts or billboards) at predetermined locations so that material handlers know exactly which components to deliver to specific work areas. Each component retrieval cycle should take the same amount of time.
  • Use the right equipment to transport components. The weight and amount of components being transported should determine the kind of equipment needed to safely and quickly move them to the designated area.
  • Set up even pulls. The amount of finished goods pulled throughout the day should be enough for each employee to manage throughout the duration of his shift, without lag time or being overwhelmed.

Invest in necessary equipment

Using the right material handling equipment to transport and store inventory increases available space and improves production time. For instance, using forklifts to carry multiple heavy items — instead of using dollies to carry a few items at a time — is safer for employees and moves inventory from point A to point B quickly.

Automated storage systems aren’t exactly necessary, but they do accurately track inventory and allow employees to quickly find necessary parts. With these systems, employees input the materials they need into the storage system, and it automatically retrieves the item, without wasted time searching each shelf.

Accurately track material handling costs

Most — if not all — pricing methods in manufacturing are estimated based on actual production time and overhead. In order to get an accurate amount of time spent on an area of production, estimators must frequently communicate with employees and managers to find out where inefficiencies exist and figure out how to eliminate them.

Systems like cost-estimating software track the efficiency and processes using existing manufacturing standards and data. This makes it possible for estimators and accountants to change their company’s processes by adding and modifying the software’s data to accommodate specific needs. Doing so provides accurate information regarding production schedules and pricing, so your company can provide clients with more accurate quotes.

Material handling processes have come a long way from the inefficient systems of decades past, but there’s always room for improvement in the production industry. Constantly examining and identifying flaws in the system is key to making your business a lean, mean manufacturing machine.

Buying New Equipment? Use What You Got.

During some recent blog reading, I was spurred to think about a past situation when a company I worked for was buying new equipment and how WRONG this decision was.

I had been with the company for about four weeks when I heard about a capital expenditure my director had just approved to buy nine more of a patented machine.  My company owned the patent.  That would give us a total of 99 of these machines.

First question I asked, “Why are we buying more of these machines?”

The response was a typical one, “We they need more capacity because we are meeting the demand.”

I didn’t ask anymore questions at that point.  I decided to go and see for myself.  This was easy because the corporate offices we were in was part of the main manufacturing building.  I had to walk about 100 yards.

During my observations I found two things:

  1. The overall OEE of the 90 machines was around 35-40% when it was running.
  2. At anytime I never saw more than 50 of the 90 machines running.  This was because we never had enough people to run all the machines.

SAY WHAT?!?!!

After a few hours of direct observation, it was clear there was no understanding of what was really going on.

First, attack changeovers and downtime to get the OEE of the machine up to the 75% range.

Second, why buy more machines if we can’t staff them?!

By my calculations, if the OEE was raised to the 75% range, not only would we not have to buy more machines we could get ride of about 20-25 machines we already had.  That would mean our current staffing would be pretty close to what we needed.

I presented this to my new boss and the director, but by this time it was too late.  The money had been cut and were pretty much crated and on the road to our facility.

This is why companies should question any new capital expenditures.  Companies should be maintaining and using what they have first.  The OEE should be at least 70% if not higher before considering adding more capacity through spending.

Do not make any decisions about capital expenditures until the current state is thoroughly understood.  The best way to do that is to go and see for yourself.

Counting Down the Top 10 Viewed Posts of 2013 – 5 Thru 1

2014 is now in full swing.  Before 2013 is too far in the rear view mirror, I thought I would recap the Top 10 most viewed posts on Beyond Lean for 2013.

New followers of the blog can use this as an opportunity to read posts they might have not seen in the past.  While, long time followers can use this as an opportunity to re-read some of the top viewed posts.

This post will count down the 10th thru 6th most viewed posts of 2013.  Enjoy!

5.   Making Leader Standard Work Visual (June 2011) – Previous Year Ranked #9 – An example of a visual board from a group I worked with.  The board makes the tasks and if they were completed by the managers visual.

4.  Don’t Over Complicate the Formula (October 2011) – Talks about simplifying formulas to get you directionally correct especially with calculating kanbans.

3.  Need the Mental Toughness of a Navy SEAL (February 2012) – Previous Year Ranked #4 – Inspiration of a Navy SEAL got me thinking about the mental toughness it takes to create change.

2.  Keys to Sustaining 5S (September 2011) – Tips to help sustain (the 5th ‘S’) the gains made from implementing 5S.

AND……

1.  5S in the Office (September 2010) – Previous Year Ranked #3 - Most viewed post for two straight years now.  A look at using 5S in the office.  What is going too far and how to use 5S in the office properly.

I hope 2014 is a great year!

Top 6 – 10 of 2013

Counting Down the Top 10 Viewed Posts of 2013 – 10 Thru 6

2014 is now in full swing.  Before 2013 is too far in the rear view mirror, I thought I would recap the Top 10 most viewed posts on Beyond Lean for 2013.

New followers of the blog can use this as an opportunity to read posts they might have not seen in the past.  While, long time followers can use this as an opportunity to re-read some of the top viewed posts.

This post will count down the 10th thru 6th most viewed posts of 2013.  Enjoy!

10.  Comparing Lean Principles to the 14 Toyota Principles (July 2010) – Previous Year Ranked #6 – The first part of a three part series where I compared the lean principles I learned from the Lean Learning Center to the Toyota Principles.  This post covers the first five Toyota Principles.

9.  True Mentoring (May 2012) – Previous Year Ranked #7 – This is my take on true mentoring versus fake mentoring that goes on in business today.

8. Strategy A3 Downloadable Template (April 2012) – A quick description of a strategy A3 with a link to a template that can be downloaded.

7. Guest Post: Selling Lean to People That Don’t Want It (July 2011) – Previous Year Ranked #10 – This is a post from Joe Wilson before he became a full-time author at Beyond Lean.  Joe talks about ways to sell lean to people who are not bought into the benefits of lean.

6.  Why Are Lean People Seen As Lean People? (February 2011) – Previous Year Ranked #1 – Exploring the question as to why lean people are not seen as more than just lean experts.  Looking at a process from end-to-end seems like a good business practice no matter what the role.

My next post will count down the Top 5 viewed posts of 2013.

Best of Beyond Lean in 2013

Today I am highlighting the five most popular posts written in 2013.  Then in January I will post the Top 10 posts for the year.

Enjoy and have a Happy New Year!!!!

5.  Visual Management at Home (February 2013) – A great example of a visual board used at home of a friend of mine.

4. Hoshin Planning – Catch Ball (April 2013) – A great video explaining the process of catch ball during the strategy development process.

3.  My Continuous Improvemnt: Personal Kanban 3rd Revision (January 2013) – The latest update to my evolving personal kanban for work.

2.  Guest Post: Moneyball – Hoshin Kanri (March 2013) – Chad Walters does a great job explaining strategy deployment using the movie Moneyball

1.  When Standards are in Place, Everything is an Experiment (May 2013) – Talks about the importance of setting standards and using them to understand your processes.

Have a Happy New Year!!!!

Guest Post: Eliminate Waste by Improving Pallet Packing

Danielle M.Today’s guest post comes from Danielle M.  She has been a dedicated student of Lean Manufacturing methodologies since 2006. It was love at first sight when she read the motto, “Everything has a place; everything in its place” in her first copy of The Toyota Way.

Lean manufacturing seeks out and eliminates waste wherever it can be found. One process that can be overlooked in a manufacturing business is the very end, where products are stacked on pallets, wrapped and shipped out. What follows are a number of ways you can reduce wasted time, effort and money by finding efficiencies in your pallet packing processes.

Choosing the right pallet

The first step toward more efficient palletizing is choosing the right pallet. According to a study by the Fibre Box association, a pallet can lose 20 to 40 percent of its strength if only half an inch of product is hanging over the edge of the pallet. You should be able to load your product onto a pallet without anything hanging over. Put another way, for any given package, the pallet should be equal to or larger than the products you’re putting on it.

If you’re using wooden pallets, look into the possibility of switching to plastic ones. They are generally safer and last longer, but they do have a few drawbacks. Only you know whether plastic or wooden pallets are best for your business.

Pallets and weight

Pallets are designed to hold only a certain amount of weight. Put too much weight on a pallet and you risk damaging it and the products it carries and injuring anyone who might be in the area. An overloaded pallet can lead to higher shipping costs as well.

An easy way to keep weight under control is to load the pallet while it sits on your industrial scales. This simple process can eliminate a lot of waste:

  • It keeps your pallets in good working order.
  • It ensures you keep it within any weight restrictions.
  • It eliminates the time wasted packing a pallet and then weighing it, only to find that it’s too heavy and must be redone.

Packing pallets

Packing a pallet safely means considering the safety of all people who use the pallet and the overall security of the products the pallet holds. Keep safety guidelines in mind and remember these pallet-packing tips:

  • Don’t stack pallets too high. Doing so raises the load’s center of gravity, which could lead to a pallet falling over, damaging the product and potentially injuring someone.
  • Don’t risk it. If a pallet looks damaged, it probably is — have it examined more closely and either repaired or discarded.

When it comes to wrapping products on a pallet, make sure you understand the difference between shrink wrap and stretch wrap, and that you keep the correct one in stock:

  • Stretch wrap is a lot like the cellophane wrap you use in the kitchen. It stretches a little and sticks to itself and does a great job of getting in its own way.
  • Shrink wrap isn’t so stretchy, but it shrinks when you apply heat to it, creating a snugger hold on the products on your pallet.

The key to efficient, safe pallet packing, though, is making sure that everyone who deals with pallets understands the processes you have in place and follows all rules. The greatest step toward cutting waste is educating your employees.

Agile Is a Lean Work Cell

A common concept discussed with lean is setting up work in a value stream and not functional silos.  This means getting people from cross functional areas to sit and work together in a work cell.  An example would be someone from customer service, credit check and order writing all sitting together to make the work of order taking flow.

This allows for the handoffs to occur immediately and increased communication between the functions resulting in reduced lead time and better quality of work.

Agile is a great example of putting the work cell concept into action.

An agile software development team brings the business partner, software developers, data managers and quality assurance together in one room.  This allows for quick turnaround discussions when someone is stuck getting to a resolution quicker and moving the development along.

There are many other aspects to agile but the work cell is a instrumental component to allowing many of the other concepts and tools to work so well for an agile team.

Work cells are not just for the manufacturing floor.  They are applicable anywhere you need to bring cross functional teams together in order to drive a quicker more efficient process.

No PowerPoint. You’re Unprofessional!

Over the years I have continued to learn how to communicate better.  Through lean I have learned how to communicate more clearly using illustrations and eliminating the “other” information that isn’t necessary to get my story told.

One tool that has helped me communicate more clearly is the A3.  The limited space really focuses me on what is important to talk about.  Understanding waste, and not wanting to duplicate my work I use my A3s in during discussions with groups of people instead of creating a multiple slides in PowerPoint stating the same words.  If I need a drawing to support my discussion, I use a white board or chart pad to draw it out, because the drawings can take time to recreate in PowerPoint.

We are taught the A3 is a communication tool.  Don’t duplicate work.  The story is important and that is what needs to be communicated.

WARNING!!!!!  Know your culture and where you are in your lean journey at all times.

After the first few times of using A3s and chart pads to communicate within my current company, I was pulled aside by a couple of senior leaders and told that I come off as unprofessional and not prepared because I didn’t use PowerPoint.

Having no filter, I asked if it was better to spend three hours working on the issue or three hours putting together PowerPoint?  I also asked how I came off unprepared because I could answer any question they had about the issue?  Aside: you might consider how you are talking with before being that direct.

The point is, the leadership and culture at that time were not ready to be communicated with in that fashion.

If you are in a similar situation, I would recommend using slides as a supplement to the A3.  Yes, it would be overprocessing waste, but it is better then people not listening because of a format issue and having to rework everything.

Meet Customer Expectations AND Have Operational Excellence

I am way behind in my blog reading.  When reading some of my backlog, I found this great post by Brad Power over at Harvard Business Review.

Why was it great?  Brad talked about how meeting the customer expectations and operational excellence are not opposites.  Business should be doing BOTH and the ones that do have great success.

What is more important to company success, a strong external focus on customer experiences or an internal focus on effective and efficient operations?

Of course, it’s a false dichotomy — you need both. I described in an earlier post how Tesco worked for years to improve its supply chain capabilities, then leveraged this value by using deeper customer knowledge to enrich customer experiences.

Brad uses two great examples.  One is L.L. Bean that provides goods to consumers.  The other is ThedaCare which provides medical services to people.  He shows how meeting customer expectations and having operational excellence can work in either industry.

Many hospitals began pursuing the “triple aim”: better patient experiences, consistent quality, and lower costs. Hospitals such as Virginia Mason and ThedaCare adopted process improvement systems from manufacturing (“Lean” and the “Toyota Production System”) to deliver increased consistency, reliability, and quality. While skeptics are right when they say, “Patients are not cars,” the reality is that medical care is, in fact, delivered through extraordinarily complex organizations, with thousands of interacting processes, much like a factory.

Most in the lean community are aware of the great work ThedaCare and Virginia Mason have been doing.  It is great to see it highlighted on the HBR Blog.

Something that the lean community has stressed for a very long time is focus on delivering value for the customer first and then determine how to deliver that value as efficiently as possible and with no waste.

There is so much written about lean that is wrong or misunderstood.  It is great to see a post discussing how companies can use lean properly to help them compete and win.

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