Category Archives: Waste

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.

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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.

Wasting Food

A couple weeks back one of the Lean folks that I follow, tweeted about cream being brought along with coffee even though it wasn’t wanted and called this waste.  It made me think about coffee and restaurants quite a bit more than I really wanted.  For the record, I’m pretty sure that the tweet was likely at some level sarcastic and I don’t intend to argue the specific point here so I didn’t bother to look back at who typed it or the exact wording.  If it was your tweet and you’re offended, please don’t be.  Or, if you want credit, let me know and I’ll go look it up.

I started to think about this and I wondered at what level bringing cream with coffee to a person that drinks black coffee is waste.  For the person drinking the coffee, it’s clearly wasteful because they aren’t going to use it and the container is likely in the way.  For the restaurant, you are paying money for ingredients that aren’t adding anything to the customer experience.  On a single point level, that seems to fit the definition of waste to a “T”…so we should form a six sigma project team or set up a 5 day kaizen event to address it, right?  Well, maybe the answer is a bit more nuanced than that.

For the sake of this discussion, let’s assume that these made up facts describe the business condition for our dairy wasting enterprise for their breakfast service:

The restaurant serves an average of 100 customers every morning and each customer has an average ticket of $10 for their food and drinks.  Of these 100 customers, 90% order coffee and 20% like their coffee black.  For each coffee ordered, the input cost of the cream is $0.25.  Let’s add an efficiency loss of 1 minute for every time the server has to retrieve cream when the table wants it, but doesn’t have it.

Putting all of this together in simple Excel math, the restaurant earns $1,000 for the breakfast service and spends $22.50 of that on cream for coffee.   Not all of that $22.50 is waste because 80% will use it, putting the actual cost of the waste at $4.50 worth of cream that doesn’t get used.  That’s around 0.5% of your revenue, not an insignificant amount in the restaurant business.  But, let’s look a step farther…the servers will spend 72 minutes of customer service time retrieving the cream for the tables, impacting the service for at least those 72 diners.  Now, as a restaurant owner, you’re looking at saving $4.50 per breakfast and making it easier for 18 of your customers vs. spending that extra $4.50 and being more efficient for 72 of your customers.  I’d probably make the case that most of the 100 are influenced by the higher workload on the server, but I’m not going to run it through a simulation program to get a pattern.

Don’t like the original estimates, okay…let’s cut the number of customers to 50, assume all order coffee and half like it black.  That moves your wasted cost of cream to $6.25 and number of customers impacted to 25.  Your decision point seems a bit tougher here.

I guess what I’m trying to say through this simplistic example is that, in a lot of cases, the context of defining waste is a bit of a gray area.  Not everything fits in to the handy TIMWOOD’s the same way.  Ideally the cream/no cream quandary is able to be solved with no waste on either side.  I’ve never been a server nor have I ever owned a restaurant, so I’m not sure what the better solution might be in this case.  As a customer, it’s kind of interesting to look at situations like this and realize that just because I don’t want something doesn’t mean it’s wasteful for the provider.  I guess it’s kind of like buying a car where in order to get some feature you do want you end up with some you don’t because it’s more efficient for the manufacturers to build to standard levels of trim and features.

Guest Post: A Lean Vacation

Today’s post is from Tony Ferraro, on behalf of Creative Safety Supply based in Portland, OR (www.creativesafetysupply.com). Tony strives to provide helpful information to create safer and more efficient industrial work environments. His knowledge base focuses primarily on practices such as 5S, Six Sigma, Kaizen, and the Lean mindset. Tony believes in being proactive and that for positive change to happen, we must be willing to be transparent and actively seek out areas in need of improvement. An organized, safe, and well-planned work space leads to increased productivity, quality products and happier employees.

When we think of lean, most people’s minds go straight to the business sector of manufacturing. While lean has been incorporated particularly well in industrial settings, lean has also experienced quite a bit of success in regular, everyday endeavors, not to mention in travel as well. The concept of lean was alive and well during a recent vacation I took. My last vacation went especially smooth due to a few lean practices that have been put into place to save time, money, and people’s sanity while visiting unfamiliar places.

Lean Airport (MSP – Minneapolis, MN) – The first inklings of lean processes were evident right at the airport before I even embarked on the actual vacation. After I made my way through ticketing and security, I set out to find my gate. Once I located my gate, it only took a second or two to notice the abundance of technology just radiating around me. There I stood in a sea of mini iPad stations just ripe for the picking. To put this into perspective, there was basically a built-in iPad station for every seat in the gate area. Not only were these iPads free to use but their use was actually encouraged. Sitting down at a station, I soon realized that these iPads were equipped with a multitude of different functions from checking flight statuses all the way to ordering and paying for various food items or supplies. As I was navigating through the iPad, I noticed that a person next to me was being served a drink right at his seat that he had ordered via the iPad. This is truly an excellent example of how an airport has utilized technology to make traveling easier and more pleasant for the customer.

Lean Rental Car Experience – My next encounter with lean happened shortly after I arrived at my destination. I’ve always considered obtaining a rental car to be one of the most tedious and dreaded parts of many of my previous vacations, however this time it wasn’t. A couple of weeks before I was set to leave for vacation, I called the car rental company Hertz and became a “gold” member which was quick and easy, and not to mention free. Being a gold member opened a whole new door of perks. I didn’t have to wait in any lines or deal with any sort of messy paperwork. Instead, I simply stepped off the shuttle at the rental car location, looked up at an electronic board to identify my name and stall number and simply walked to that parking stall. Once I arrived at my car, the trunk was open and the keys were in the ignition. Needless to say, I was thrilled with this efficient service and it took less than 10 minutes from start to finish and I was out on the highway enjoying the beginnings of my vacation. By signing up for the “gold” membership not only did I have an easier and faster experience, but I did not require any further help from Hertz employees which in turn helped to streamline the experience for them as well.

Lean Parking Ramp – I bet you think I’m going to say the parking ramp was lean because the entrance and exits were completely electronic and required no parking assistant and while this is true, it goes quite a bit deeper. The parking ramp I utilized was equipped with a fairly new technology known as “Park Assist.” Ok, I’m just going to say it, I love park assist. Any large and busy parking ramp could make their customers much happier with the help of parking technology. Park Assist features little green or red lights which are illuminated on the ceiling directly above the path where cars drive. If a parking spot is open the light will illuminate green, but if the spot is taken it will illuminate red. This type of technology increases more effective parking but also enhances safety. Instead of drivers constantly trying to look side to side while driving looking for the next open spot, all the driver needs to do is look for an illuminated green light and pull into the corresponding parking spot. Wow, this was impressive. Parking ramps can be pretty dangerous as there always seems to be people bobbing in and out between parked cars. This technology allows drivers to keep a greater focus on driving safely, but also helps them to find parking spots quicker.

The implementation of lean into daily life and travel has led to some monumental improvements which have helped to make once dreaded tasks much more palatable, and maybe even actually enjoyable.