Continuous Improvement

Embedding Lean Manufacturing: A Blueprint for Manufacturers’ Success

Posted on by Adam Payne

As a manufacturing professional in the UK, you’re likely all too familiar with the constant pressure to improve efficiency, reduce costs, and stay competitive in an increasingly global marketplace. Over the years, I’ve worked with numerous British manufacturers who have faced these challenges head-on, and time and time again, I’ve seen one approach stand out as a game-changer: lean manufacturing.

Lean manufacturing isn’t just another buzzword or passing trend. It’s a proven methodology that has transformed industries worldwide, and it’s particularly relevant for UK manufacturers looking to thrive. In this post, we’ll explore the essential steps to embed lean manufacturing in your business and highlight why so many manufacturers are embracing this approach. We’ll also look at some inspiring success stories that demonstrate the transformative power of lean principles.

Essential Steps to Implement Lean Manufacturing

Implementing lean manufacturing is a journey, not a destination. It requires commitment, patience, and a willingness to challenge the status quo. Here are the key steps you’ll need to take to successfully embed lean principles in your organisation:

a) Align your organisation around lean principles

The first and perhaps most crucial step is to ensure that everyone in your organisation understands and buys into the lean philosophy. This means educating your team about the core principles of lean manufacturing, such as:

  • Identifying and eliminating waste
  • Continuous improvement (Kaizen)
  • Respect for people
  • Creating flow in processes

In my experience, resistance to change is one of the biggest hurdles in implementing lean. That’s why it’s essential to communicate the benefits of lean manufacturing clearly and consistently. Emphasise how it can make everyone’s job easier, more satisfying, and more secure in the long run.

b) Map the value stream to identify waste

Value stream mapping is a powerful tool that helps you visualise your entire production process, from raw materials to finished product. By creating a detailed map, you can identify areas of waste, inefficiency, and bottlenecks.

I once worked with a UK-based casting manufacturer who was struggling with long lead times. Through value stream mapping, we discovered that components were spending an average of 15 days in various queues throughout the production process. By addressing these queues, we were able to reduce lead times by over 50%. (Reducing Lead-time Case Study)

c) Create flow and pull systems for smoother operations

Once you’ve identified areas of waste, the next step is to create flow in your processes. This means arranging your production line so that work moves smoothly from one step to the next, without unnecessary stops or delays.

Pull systems, such as Kanban, can be particularly effective in creating flow. Instead of pushing products through the system based on forecasts, pull systems produce items based on actual customer demand. This reduces inventory, improves cash flow, and ensures you’re making what customers actually want.

d) Utilise lean tools like 5S, Kanban, and Six Sigma

Lean manufacturing offers a variety of tools and techniques to help you improve your operations. Some of the most effective include:

  • 5S (Sort, Set in order, Shine, Standardise, Sustain): A method for organising workspaces for efficiency and effectiveness.
  • Kanban: A visual system for managing work-in-progress and scheduling production.
  • Six Sigma: A data-driven approach to eliminating defects and reducing variability.

e) Foster a culture of continuous improvement

Lean manufacturing is not a one-time project; it’s an ongoing process of continuous improvement. Encourage your team to constantly look for ways to eliminate waste and improve processes. Implement a system for collecting and acting on employee suggestions.

f) Implement technology and automation to enhance lean processes

While lean manufacturing originated before the digital age, modern technology can significantly enhance its effectiveness. Consider implementing an Manufacturing Execution Software (MES) systems like FactoryIQ to improve visibility across your operations, or explore how Industry 4.0 technologies like IoT sensors and data analytics can support your lean initiatives.

Why Manufacturers Embrace Lean Manufacturing

Now that we’ve covered the ‘how’, let’s look at the ‘why’. There are compelling reasons why manufacturers across the UK are embracing lean principles:

a) Significant improvements in efficiency and productivity

Lean manufacturing can lead to dramatic improvements in efficiency and productivity. By eliminating waste and streamlining processes, you can produce more with less. I’ve seen manufacturers increase their output by 30% or more without adding additional resources.

b) Substantial cost reductions through waste elimination

Waste is expensive. By identifying and eliminating the eight types of waste (defects, overproduction, waiting, non-utilised talent, transportation, inventory, motion, and extra-processing), lean manufacturers can significantly reduce their costs. This is particularly crucial for UK manufacturers facing increased competition post-Brexit.

c) Enhanced customer value and satisfaction

Lean manufacturing isn’t just about cutting costs; it’s about delivering more value to your customers. By focusing on what the customer truly values and eliminating everything else, you can improve quality, reduce lead times, and enhance overall customer satisfaction.

d) Environmental benefits from reduced resource consumption

With the increasing environmental awareness, lean manufacturing offers significant sustainability benefits. By reducing waste and improving efficiency, you’ll naturally reduce your consumption of energy and raw materials. This not only helps the environment but can also improve your company’s image and appeal to environmentally conscious customers.

e) Competitive advantage in the marketplace

Being lean can give you a significant competitive edge. The ability to deliver high-quality products quickly and at competitive prices can help you win new customers and retain existing ones.

f) Increased employee engagement and morale

When implemented correctly, lean manufacturing can significantly improve employee satisfaction. By involving employees in problem-solving and continuous improvement, you empower them and make their work more engaging. This can lead to higher retention rates and a more motivated workforce.

Real-World Success Stories

Let’s look at some inspiring examples of companies that have successfully embedded lean manufacturing principles:

Caterpillar Inc.’s lean journey and results

Caterpillar’s lean journey offers valuable lessons for manufacturers of all sizes. The company began implementing lean principles in the early 2000’s and has since seen remarkable results. Including the formalisation of its Caterpillar Production System which launched in 2005, and a strategic initiative to establish an enterprise-wide lean vision in 2012.

John Deere’s efficiency gains through lean principles

Another global manufacturer with operations in the UK, John Deere, has been on a lean journey since the 1990s. The company has reported significant improvements in productivity, quality, and employee satisfaction. In one facility, John Deere reduced the time to manufacture significantly through lean principles.

General Electric’s inventory reduction and quality improvements

GE’s adoption of lean principles, combined with Six Sigma, led to substantial improvements across its diverse business units. The company reported saving billions of dollars and significantly improving product quality.

While these are large multinational companies, I’ve seen similar results in smaller UK manufacturers. For instance, a medium-sized automotive parts manufacturer in the Midlands implemented lean principles and saw a 40% reduction in lead times and a 25% increase in productivity within 18 months.

Toyota’s pioneering lean practices

Toyota is often credited with pioneering lean manufacturing through its Toyota Production System (TPS). The company’s focus on continuous improvement and respect for people has led to unparalleled efficiency and quality. Toyota’s lean practices have been emulated by manufacturers worldwide, proving that lean principles can be adapted to various industries and scales.

Rolls-Royce’s lean transformation

Rolls-Royce, a renowned UK manufacturer, has also embraced lean manufacturing. By implementing lean principles, Rolls-Royce has achieved significant improvements in production efficiency and product quality. The company has reduced lead times, cut costs, and enhanced customer satisfaction, solidifying its position as a leader in the aerospace industry.

Conclusion

Embedding lean manufacturing is indeed a transformative process that can revolutionise your manufacturing operations. In following the key steps outlined – aligning your organisation, mapping value streams, creating flow, utilising lean tools, fostering continuous improvement, and leveraging technology – you can achieve significant improvements in efficiency, cost reduction, and customer satisfaction.

The benefits of lean manufacturing are clear and compelling. From improved productivity and reduced costs to enhanced customer value and environmental benefits, lean principles offer a pathway to long-term success and competitiveness.

As you embark on your lean journey, remember that it’s not about achieving perfection overnight. It’s about making consistent, incremental improvements that add up to significant results over time. Start small, celebrate your wins, learn from your setbacks, and keep pushing forward.

In the face of global competition and economic uncertainty, lean manufacturing offers UK manufacturers a proven approach to not just survive, but thrive. By embracing these principles, you can position your company for success in the years to come, driving innovation, efficiency, and growth in the ever-evolving manufacturing landscape.

Remember, the journey to lean manufacturing is challenging, but the rewards are well worth the effort. So, are you ready to start your lean journey and transform your manufacturing operations? The time to act is now. Embrace lean manufacturing and unlock the full potential of your business. By doing so, you will not only enhance your operational capabilities but also ensure a sustainable and prosperous future for your company in the competitive global market.

Driving Efficiency: The Role of Consistent Feedback in Manufacturing Process Improvement

Posted on by Adam Payne

Process improvement in manufacturing is all about identifying, analysing, and optimising existing business operations to meet new standards of efficiency and quality. A crucial component of this journey is the role of feedback – the consistent kind. When effectively harnessed, feedback offers significant opportunities to drive efficiency and improve performance across manufacturing processes.

The Concept of Feedback in Manufacturing

In the context of manufacturing, feedback represents a variety of inputs that provide insight into how operations are performing. These can come from varied sources, such as employees’ suggestions, customer feedback on product quality, or even technical data from machine sensors.

In an industry where precision and efficiency are paramount, each type of feedback can be invaluable. From pinning down inefficiencies in production lines to signalling the requirements for new capabilities, feedback provides the groundwork for beneficial changes.

Real-Time Feedback and Operational Efficiency

The potency of feedback is exponentially strengthened when it is received in real time. Real-time feedback eliminates lag time in data collection and analysis, enabling manufacturers to tackle inefficiencies head-on as they occur.

Consider the case of a major precision engineering manufacturer that utilised real-time machine data from FactoryIQ. Incorporating sensor technologies, they could instantly detect and address any deviations in machine performance. The result was significantly improved productivity, reduced waste, and heightened efficiency.

Feedback Loop: From Collection to Action

An efficient feedback loop encompasses timely collection, swift analysis, and effective implementation of insights derived from feedback. Feedback that is not acted upon (or not acted upon promptly) loses its impact.

Creating a feedback loop in manufacturing involves defining inputs, establishing collection channels, implementing analysis protocols, and setting up procedures for action based on these insights. It might seem complex, yet it’s a worthy investment that equips manufacturers with an ongoing resource for process improvement.

Continuous Feedback for Continuous Improvement

Manufacturing process improvement isn’t a one-off project; it’s an ongoing pursuit. This philosophy places continuous feedback at the core of sustained process improvement efforts.

Maintaining a consistent rhythm of feedback collection and analysis means you perpetually have your finger on the pulse of operational performance. With continuous feedback, manufacturers can identify patterns over time, predict potential challenges, and develop strategic actions to improve efficiency consistently.

Harnessing Technology to Facilitate Feedback

The feedback mechanism is greatly backed by technology. From data sensors on manufacturing equipment to software that automates customer feedback collection, various tools can facilitate feedback in manufacturing.

For instance FactoryIQ, our sister companies Manufacturing Execution Software (MES) can collect real-time data on machine performance, while FactoryIQ’s scheduling system can provide planning and customer feedback at various stages. Leveraging these technologies can lead to more consistent and accurate feedback, and by extension, more effective process improvements.

Additionally, FactoryIQ analytics tools (integrated into MES) can analyse feedback data to generate usable insights. These solutions utilise techniques including predictive analytics or machine learning, enabling manufacturers to extract meaningful conclusions from large volumes of feedback data.

Key Takeaways

Consistent feedback plays a pivotal role in enhancing manufacturing process efficiency. As a manufacturer, if you aren’t already placing feedback at the heart of your process improvement initiatives, it’s time you did.

The process might seem daunting, especially if you’ve traditionally relied on less feedback-oriented process improvement. But remember, like any new implementation, it takes time to set up and get used to. Once you overcome the initial hurdle, the benefits of consistent feedback can be substantial – marked improvements in efficiency, productivity, and ultimately, profitability.

Motivating your team to contribute, using technology to automate feedback collection and analysis, and creating an atmosphere where feedback is valued and acted upon, can go a long way in ingraining an Lean Thinking / Problem Solving culture that propels process improvement.

The manufacturing landscape is continually evolving and calls for continuous improvement. By tapping into the power of consistent feedback, you are arming your manufacturing operations with the capability to not just keep pace with this evolution but also to lead the charge.

The connection between consistent feedback and manufacturing process improvement is strong and direct. By acknowledging this and acting on it, you are solidifying the pathway towards greater efficiency and business success.

💡PS: If you’re a Manufacturer looking to Reduce Costs, Foster Innovation and Accelerate Growth please do get in touch here.

Hoshin Kanri: The Strategic Planning Process that Drives Growth and Performance

Posted on by Adam Payne

How many times have you sat in a boardroom, looked at a beautifully crafted five-year strategy, and felt a genuine spark of excitement, only to see that spark fizzle out somewhere on the journey to the shop floor? It’s a story I’ve seen play out in manufacturing businesses across the UK. The ambition is there. The intelligence is there. But the connection between the grand vision and the daily grind of production targets, quality checks, and maintenance schedules gets lost in translation.

This isn’t a failure of ambition. It’s a failure of process. We create strategies in one room and expect them to be executed perfectly by people in another, often without a clear map connecting the two. It’s like giving someone a destination without a GPS, or even a paper map. They might get there eventually, but the journey will be inefficient, frustrating, and probably take them down a few wrong turns.

This is where a concept called Hoshin Kanri comes in. It’s a Japanese term that roughly translates to “compass management” or “shining metal pointing the way.” It’s a strategic planning and deployment methodology that was honed by companies like Toyota to create a direct, unbroken line from top level objectives to the everyday actions of every single employee. It’s not just another corporate buzzword. It’s a proven, structured way to make sure your strategy actually happens.

So, What Exactly is Hoshin Kanri?

At its heart, Hoshin Kanri is a systematic approach to ensure that the goals of a company are the driving force behind the actions of every person within it. It originated in post war Japan, a time when companies had to be incredibly resourceful and focused to rebuild and compete globally. They couldn’t afford wasted effort or internal misalignment. They needed a way to point everyone in the same direction, and Hoshin Kanri became their compass.


It’s built on a few core principles that, frankly, just make sense.


First, there’s alignment. This is the big one. Hoshin Kanri creates a clear cascade of objectives. The company has a long-term vision, which is broken down into a handful of critical “breakthrough” objectives for the next three to five years. These are then translated into specific, measurable annual objectives. And those annual objectives are then broken down further for each department, each team, and ultimately, each individual. Everyone can see how their work directly contributes to the bigger picture. The person calibrating a machine on the night shift understands how their precision impacts the company’s goal of becoming the market leader in quality.


Second, there’s engagement. This isn’t a top-down dictatorship. One of the most powerful parts of the process, which we’ll get to, is something called “Catchball.” It’s a back-and-forth dialogue. Senior leadership proposes the objectives, but then they toss them to the teams who have to deliver them. Those teams toss back their feedback, their ideas, and the resources they’ll need. This dialogue ensures that goals are realistic, and more importantly, it creates a deep sense of ownership. People support what they help create.
And third, there’s continuous improvement, or Kaizen. Hoshin Kanri isn’t a “set it and forget it” plan. It’s a living, breathing system. You are constantly checking your progress against your targets through regular reviews. This isn’t about blaming people when things go off track. It’s about asking “why?” and learning from the process. It builds a culture where problems are seen as opportunities to get better, not mistakes to be hidden.

The 7 Steps to Making Strategy Happen

Okay, so how does this actually work in practice? The Hoshin Kanri planning process is often broken down into seven steps. It looks like a lot on paper, but think of it as a logical flow from a big idea to daily reality.

  1. Establish Your Organisational Vision: This is your North Star. Where do you want your business to be in ten years? This shouldn’t be a fluffy mission statement. It needs to be a clear, compelling picture of the future. Something like, “To be the UK’s most trusted supplier of high precision aerospace components, known for zero defect quality and on time delivery.”
  2. Develop Breakthrough Objectives: You can’t do everything at once. Based on your vision, what are the three to five game changing things you need to achieve in the next three to five years? These are your “breakthroughs.” They should be bold. Examples could be: launching a fully automated production line, reducing lead times by 50 percent, or entering a new European market.
  3. Set Annual Objectives: Now you break it down. To make progress on that 50 percent lead time reduction, what do we need to achieve this year? Maybe the annual objective is to “Reduce average order fulfilment time from 20 days to 15 days by December 31st.” It’s specific, measurable, and time bound. You’ll have a few of these, each one directly supporting a breakthrough objective.
  4. Cascade Objectives (The ‘Catchball’ Process): This is where the magic happens. Senior management doesn’t just email these annual objectives out. They present them to their direct reports, the department heads. They ask, “Here’s what we need to achieve. How can your department contribute, and what do you need from us?” The production manager might say, “To hit that 15-day target, I need to reduce machine changeover time. I think we can get it down by 10 percent this year. To do that, I’ll need a budget for new tooling and two days of training for my team leaders.” This conversation, this negotiation, and coaching, goes all the way down the organisation. It’s a game of catch, not a command.
  5. Implement and Execute: Once the objectives are agreed upon at all levels, it’s time to get to work. Because of the Catchball process, everyone knows what they need to do and why they are doing it. The plan isn’t some abstract document; it’s a shared commitment.
  6. Monitor Progress (PDCA): This is the heartbeat of Hoshin Kanri. You use regular, structured reviews to check your progress. Many teams use the Plan Do Check Act cycle. You had a Plan (reduce changeover time). You Did the actions (bought the tools, ran the training). Now you Check the data. Did changeover time actually decrease? If yes, great. If not, you move to the final step.
  7. Reflect and Learn (The ‘Act’ part of PDCA): If you missed the target, you don’t just try harder. You analyse what happened. Was the training ineffective? Was the new tooling wrong? You adjust your approach based on what you’ve learned. This is how you embed continuous improvement. If you hit your target, you standardise the new, better process and look for the next improvement. This cycle of review and adjustment happens monthly, sometimes even weekly.

Why This is the Key to Real Growth

I’ve worked with manufacturers who had brilliant engineers and dedicated teams, but they were spinning their wheels. Different departments were pulling in different directions, often with good intentions. The sales team would promise a quick turnaround to win a big order, not realising the strain it would put on a production team already struggling with an outdated machine. Hoshin Kanri fixes this.

It creates organisational focus. Suddenly, everyone is rowing in the same direction. When a new project or request comes up, you can hold it up against the Hoshin plan and ask, “Does this help us achieve our annual objectives?” If the answer is no, it’s easier to say no, or to at least question its priority. It stops the organisation from getting distracted by “flavour of the month” initiatives.

The engagement it fosters is transformative. I saw this at a mid-sized engineering firm in the Midlands. They were struggling with morale and high staff turnover on the factory floor. After we implemented the Hoshin Kanri concept, and specifically the Catchball process, team leaders started contributing ideas that management had never even considered. They felt heard. They felt valued. Within a year, their productivity metrics had improved by over 15 percent, but more importantly, their staff retention shot up. People weren’t just coming to work for a pay cheque; they were coming to work to help the company win.

This leads to measurable, sustainable improvements. Because everything is tied to data and regular reviews, you move beyond guesswork. You know what’s working and what isn’t. One of the classic examples is the Danaher Corporation, a global science and technology conglomerate famous for its operational excellence. They built their entire legendary business system around the principles of Hoshin Kanri. It allowed them to acquire companies and rapidly deploy their improvement methodology, driving incredible growth and shareholder value year after year. They live and breathe by the data, and it all starts with their strategic deployment process.

The Tools That Make It Work

This all sounds great, but how do you manage it all without drowning in spreadsheets? There are a few key tools that help.

The most famous is the Hoshin Kanri X-Matrix. It looks a bit complicated at first, but it’s a brilliantly simple one-page document. It visually connects your long-term breakthrough objectives, your annual objectives, the specific improvement priorities for the year, and the key metrics you’ll use to measure success. It even shows who is responsible for what. It’s a powerful tool for showing the entire plan on a single sheet of paper, making the connections obvious to everyone.

The other core tool is the PDCA Cycle (Plan-Do-Check-Act). This isn’t just a Hoshin tool; it’s the foundation of all modern continuous improvement. But within Hoshin, it provides the engine for the review process. Each improvement initiative, from the departmental level down to a small team project, is managed through this cycle. It ensures that you aren’t just “doing stuff,” but are doing it with a clear hypothesis (Plan), testing it (Do), measuring the results (Check), and then learning and adapting (Act).

Overcoming the hurdles is crucial. The biggest challenge is always leadership commitment. If senior leaders aren’t driving the review process and living by the plan, it will fail. It can’t be delegated to the quality department. Another common issue is poor communication during the Catchball process. It needs to be a genuine dialogue, not just a briefing. Finally, reviews can become inconsistent. If you start skipping the monthly reviews because you’re “too busy,” the whole system falls apart. The discipline of the review process is non-negotiable.

The key to overcoming these is to start small. Maybe pilot the process in one department. Get some quick wins, show people how it works, and build momentum from there. And be patient. This is a cultural shift, not an overnight fix. It takes time to build the habits of data driven review and open dialogue.

Your Compass for the Future

Implementing a system like Hoshin Kanri is a serious commitment. It requires discipline, honesty, and a willingness to change how you think about strategy itself. But the transformation is profound. It’s the difference between having a strategy that sits on a shelf and having a strategy that lives and breathes in the daily actions of your entire workforce.

It aligns your people, focuses your resources on what truly matters, and builds a resilient culture of continuous improvement that becomes your ultimate competitive advantage. In a world of volatile supply chains, skills shortages, and intense global competition, having a reliable compass to guide your organisation isn’t just a nice to have. It’s essential for survival and growth.

If you’re ready to stop letting your strategy get lost in translation and start driving real, measurable performance, it might be time to look at Hoshin Kanri.

To see how we can help you implement a robust strategic planning process in your organisation, click here to see our Strategic Deployment Programme.

Mastering Lean Manufacturing: A Guide to Elevating Your Organisation’s Efficiency and Performance

Posted on by Adam Payne

Imagine yourself at the helm of your organisation, ready to take the plunge into the world of Lean Manufacturing. You’ve heard about the benefits and the success stories, and now you’re eager to make it a reality for your company. But where do you begin? Fear not, as you’re about to embark on a transformative journey that will elevate your organisation’s efficiency, productivity, and overall performance.

Here are our thoughts to help you navigate the implementation of Lean Manufacturing within your organisation.

Start with a clear vision: Clearly define your goals and objectives for implementing Lean Manufacturing. Establish a shared understanding among your team members to ensure everyone is working towards the same targets.

Involve your employees: Engage your employees in the process from the beginning. Encourage open communication, listen to their ideas, and empower them to take ownership of the changes. This will foster a sense of commitment and enhance the success of the implementation.

Provide training: Equip your employees with the necessary skills and knowledge to understand and apply Lean Manufacturing principles effectively. Provide ongoing training and support to ensure they are comfortable with the new systems and processes.

Prioritise small, incremental improvements: Focus on making small, incremental changes rather than attempting a complete overhaul of your operations. This will allow you to see immediate results, build momentum, and minimise disruptions to your daily operations.

Monitor and measure progress: Establish key performance indicators (KPIs) to track the success of your Lean Manufacturing implementation. Regularly review and analyse these metrics to identify areas for further improvement and celebrate successes.

Be consistent and persistent: Lean Manufacturing is a long-term commitment. Stay consistent in your efforts and maintain a persistent focus on continuous improvement. This will ensure your organisation reaps the benefits of Lean Manufacturing over time.

Learn from others: Network with other SME manufacturers who have successfully implemented Lean Manufacturing principles. Gain insights, share experiences, and learn from their successes and challenges.

Stay flexible and adaptable: As you implement Lean Manufacturing, be prepared to adapt and modify your approach based on your organisation’s unique needs and circumstances. Stay open to new ideas and be willing to adjust your strategies as needed.

Now, pause for a moment to consider the strides you’ve taken in incorporating Lean Manufacturing into your organisation. Keep in mind that the road to success isn’t linear; rather, it’s an ongoing process of refinement, education, and adaptability.

Face the obstacles head-on, rejoice in your triumphs, and always stay focused on your end goal: to build a streamlined, highly efficient, and thriving organisation. Persistently forge ahead, and you’ll soon discover that the advantages of Lean Manufacturing surpass any challenges encountered on this transformative journey.

If you’re looking for support in taking your organisations efficiency and performance to the next level don’t hesitate to get in touch with us – 0330 311 2820 or email info@tcmuklimited.co.uk

How Can Operations System Design Help Manufacturers?

Posted on by Adam Payne

Operations system design for manufacturers has become a key issue in the manufacturing industry. This is because manufacturers are facing a lot of challenges such as increased competition, decreasing market share, supply chain issues, cost reduction and more.

Operations system design is a process or methodology that can help companies to improve their performance and achieve their objectives by implementing new strategies and processes on how they operate their business. It involves analysing the current performance of your company, identifying areas where improvement could be made and then developing solutions that will increase efficiency and profitability.

Some of the important concepts used in operations system design are the following:

Demand and Capacity Management

The demand and capacity management system are the main engine driving operations. It works by matching product demand with production capacity, which includes both production equipment and labour. The most important aspect of demand and capacity management is how it deals with shortages or excesses.

In a manufacturing environment, demand is often very unpredictable. This means that there are times when the factory needs more workers than normal, but also times when it has an excess of workers on its hands. Demand can also fluctuate depending on seasonality and other factors outside of your control as well as within your control (such as sales promotions).

The first step in creating a robust demand and capacity management system is to understand what drives your business and how this affects your supply chain requirements. For example:

If you’re making products on a seasonal basis, then you need to know when those seasons occur so that you can plan ahead for them.

If you’re planning sales promotions or other marketing initiatives, then you’ll need to know how many people will be needed to support these activities so that they don’t negatively impact production schedules or increase costs unnecessarily.

Planning and Scheduling

Planning and scheduling are the process of determining the activities or tasks to be performed, the sequence or order in which they are to be carried out, and the resources and time required for each.

Scheduling can be done manually or automatically. Scheduling systems can be used in manufacturing, warehousing, distribution, and other areas where work must be performed on a sequence of tasks that must be completed in a specific order. Manufacturing scheduling processes may include:

Multi-process workflow management — Scheduling of multiple processes to optimize resource utilisation and minimise total cost of operation.

Workload forecasting — Forecasting the amount of work that will need to be performed over time, so that sufficient resources can be allocated for production. (See our blog on Sales, Inventory and Operation Planning.)

Shop floor control — Monitoring the actual performance of each machine in the shop floor so that any bottlenecks or other problems can be identified quickly.

Scheduling optimisation — Using mathematical algorithms to find the best possible schedule for a given set of requirements.

(for automation visit FactoryIQ: What is a Manufacturing Execution System)

Operational Excellence in Logistics

Logistics is the management of the flow of goods between the point of origin and the point of consumption in order to meet customer needs. In terms of logistics, a product is a good or service with some utility to the customer. The term logistics comes from the Greek word logistikos, which means “skilled in calculating.”

Logistics involves the integration and synchronisation of all aspects of supply chain management. It includes planning, procurement, inventory control, production planning and control, distribution, packaging, order processing and shipping as well as associated financial services such as bill payment and revenue management.

Logistics is important because it is often an overlooked aspect in a company’s overall success, but it can also be an important part of any business model. A company that has effective logistics operations will be able to provide customers with products that they want at a price they are willing to pay while still making a profit. This allows a company to compete with other companies that may have lower prices or higher quality products but less efficient logistics operations.

Inventory Management

Inventory management is a system of control that determines the optimal location and quantity of inventory needed to minimise the cost of carrying that inventory. Inventory management is often used in conjunction with a Just-In-Time (JIT) or lean manufacturing system, which relies on careful monitoring of inventory levels to ensure that production lines are never interrupted by parts shortages.

Inventory management is usually accomplished through a computerised system, typically using barcode scanning technology to track individual items as they are received from suppliers and shipped out to customers. Inventory management also typically includes some form of point-of-sale (POS) software or hardware, which allows retailers to track sales and determine when sales goals have been met for each item sold.

The goal of inventory management is to reduce excess inventory while still meeting customer demand. These include:

Reducing Inventory Costs: Excess inventory can tie up valuable capital resources and increase carrying costs (i.e., storage space, insurance).

Minimising Out-of-Stock Situations: If a company has too little inventory on hand, it may not be able to meet customer needs. In addition, customers may perceive this as poor service or lack of concern for their needs.

Maximising Profitability: By keeping optimal levels of inventory on hand at all times, companies can reduce costly markdowns or write-offs due to excess stock in slow-moving items.

Process Stability

Process stability is the ability of a process to produce consistent product quality and quantity, on a day-to-day basis. It is a measure of how well the process delivers on its promise to produce the same product each time it is run. A stable process is one that can be relied upon to consistently provide high-quality, low-cost products.

Process stability is important because it affects both customer satisfaction and profitability. If customers are not satisfied with their product or service, they may find another supplier or stop buying altogether. If production costs increase unpredictably, profits will suffer as well.

Process stability also affects productivity levels and capacity planning, making it an important consideration for any manufacturing operation. Lean and Six Sigma methodologies say a big part here.

Process Foundations

A manufacturing operation is a system that transforms the materials and energy resources of the environment into finished goods and services. Manufacturing operations are divided into three main areas: processes, support functions and information technology (IT). Each of these areas has an impact on how efficient and effective your production system can be.

Processes

Processes include all activities that transform raw materials into finished goods or services. The processes themselves may be physical or organizational in nature. Physical processes include material handling, assembly, machining, painting, testing, and packaging. Organisational processes include planning, scheduling, forecasting, and controlling.

Support Functions

Support functions provide products or services to internal or external customers but do not directly produce finished goods or services. They include purchasing; quality; maintenance; engineering; human resources; finance/accounting; EH&S; supply chain management/logistics; information technology (IT); marketing, sales and many more (the complete value chain!).

Information Technology (IT)

Information technology is required to support many of these activities including: process control systems for manufacturing operations such as machine tool controls and robotics; ERP / MRP.

Takeaway: Operations Systems Design enables organisations to optimize the alignment of their processes, resources, people, and information systems.

PS: If you need support with Operations Systems Design or Lean Implementation please do get in contact.

How To Cut Waste And Increase Productivity By Implementing Lean Manufacturing

Posted on by Adam Payne

Lean Manufacturing is a culture and a strategy. It’s a way of doing things that helps companies improve efficiency, quality, and flexibility. It’s not just about tools and processes—it’s about people, too.

Lean Manufacturing is all about making things more efficient. It focuses on eliminating waste and finding ways to streamline workflows so that the company can produce more with less time and money.

Create a Lean Manufacturing culture

A Lean Manufacturing culture is an environment where people are taking responsibility for their own improvement, the improvement of processes and products, and the overall improvement of the company. It’s a culture built on trust, accountability, and continuous improvement.

In order to create this culture, it’s important to give employees the freedom to make decisions about how they do their job and then hold them accountable for those decisions. This can be tricky if you’re not sure what your employees’ strengths are or how they work best. But one way to develop this understanding is by asking questions like: “What’s been most helpful in improving your efficiency?” or “What practices have helped you achieve your goals?”

Once you’ve identified some of these practices, try them out on other employees! Make sure they’re working before adopting them as official company policy though—you don’t want anyone feeling like they’re being punished just because they weren’t included in testing new ideas before implementation!

Have the Upper Management Lead by Example

Lean is a powerful strategy, but it’s not something that can be implemented overnight. In order to make the most of your Lean efforts and get the most out of your employees, it’s important to have upper management lead by example.

Upper management should be actively engaged in the process of implementing Lean, from the beginning to end. They should also be involved in training new employees on Lean’s principles and ensuring that everyone is working together toward common goals. This will help employees understand how important their role is in helping you achieve those goals, which will increase their sense of ownership over their work.

Upper management should also be willing to let go of their preconceived notions about how things should be done in favour of allowing employees more freedom when it comes time to make decisions about how tasks should be completed.

Train your Team on Lean Basics

One of the best ways to get your team on board with Lean is to train them on the basics.

The Lean principles are not complicated, but they can be difficult to understand if you’re new to the concept. You should prepare your team by giving them a solid understanding of what Lean is and why it’s important before you start putting it into practice.

If your team doesn’t have a clear understanding of the principles, they will have trouble implementing them into their day-to-day work. If, for example, if you try to reduce waste without first explaining what waste is and why it needs to be reduced, then you’ll find that the effort isn’t effective or sustainable.

This is especially true when it comes to engaging your employees in Lean initiatives: if they don’t understand why they should participate in these efforts and how they’ll benefit from doing so, then they won’t be motivated enough to participate fully or consistently.

Value Stream Map – Study the Current Process

The first step in implementing Lean is to study the current process. This will help you identify areas of improvement and determine whether or not you are ready for the changes that will be necessary to make this happen. You can do this by performing a value stream map, which is a visual representation of your workflow.

The process should be broken down into steps. You want to look at each step and ask yourself what can be done to improve it, and how this change might affect other parts of the process as well. It is important to consider how each step impacts other steps, so you can look at all aspects of your operations and make sure that they are working together effectively.

Look for Waste and Remove It (Muda – Waste, Mura – Unevenness, Muri – Overburden)

You can define waste as anything that detracts from the value of a product or service you’re producing from your customers’ point of view. Waste can take many forms, such as overproduction, unnecessary resources, and more. These things need to be eliminated so that organisations aren’t creating products or services that don’t add value.

Muda is any kind of wasted motion, such as unnecessary steps in a process or unnecessary travel between locations. Mura refers to unevenness in the production line—it means one part of the process might be operating at peak efficiency while another part is idle or struggling just to keep up. Muri refers to overburdening people with too much work—this is often seen when you have an employee working alone on a task that should be split between two or more people to match customer demand (TAKT).

Map out the Main Bottlenecks

The main bottlenecks in a process are the aspects of the system that are limiting its throughput.

In order to identify these, you’ll need to first look at or build your Value Stream Map or Process Map and identify where there are bottlenecks. Then, you can work on fixing them by identifying what’s causing the bottleneck and finding ways to remove it. This may involve making changes like adjusting how people work together, reducing change-over times, increasing the Overall Equipment Effectiveness or changing how tasks are assigned (e.g., having workers perform different parts of a task).

Once you’ve identified where your bottlenecks are, you can start working on removing them.

Standardise Everything

This means that you need to define what “standard” means, and then make sure all employees are aware of it and trained to it. Standardising your processes gives consistency in how your team members perform their tasks. 

For example, if you’re a software company and you’re trying to improve efficiency by standardising on coding practices, then every employee should know which practices are allowed and which are not allowed.

You should also standardise your equipment and tools. If multiple employees use the same equipment or tool, everyone should use it in the same way every time.

If your company has multiple locations, then standardising everything is even more important because it helps create consistency between locations. If everyone knows what standards they need to meet at each location, then they’ll be able to work together better across locations knowing the desired quality will always be met.

Develop a Continuous Improvement Mentality

Implementing lean means shifting your focus from your business’s outputs to its inputs. But if you’re going to do that, you need to first develop a continuous improvement mentality.

To do this, you have to be willing to adopt an attitude of continuous improvement and continuous learning. You need to be constantly looking for ways that you can improve how things are done in your office or factory and how they contribute to the overall success of your business.

You also need to be willing to consider new ideas, because one of the main tenets of lean is that there are no bad ideas—only challenges in implementation. If someone suggests something new or comes up with a way of doing something differently, try it out! Even if it doesn’t work right away, you may learn something valuable about how something works or doesn’t work within your organisation.

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Continuous Improvement: The Simple Philosophy That Can Help Your Business Thrive

Posted on by Adam Payne

Continuous Improvement, The 1% rule, or Marginal Gains, whatever terminology you want to call it, they are all similar in philosophy and application. It is the idea of focusing on small incremental improvements to grow your business easily. The most successful businesses are always striving to improve to stay ahead of their competition.

In this blog I’ll explain how the philosophy of small incremental improvements can improve your business. This is a technique that many successful companies use in addition to Lean Thinking – a company’s philosophy of eliminating waste. It has been used for decades and can be found in micro businesses right through to corporate business models across industry and service sectors.

I’ve been a lean Sensei for 25+ years and implemented these small incremental changes in Hairdressers to Big Corporate Manufacturers. By implementing these marginal gains, it’s possible to make a huge impact on the performance of your company in a relatively short period of time. It’s Simple! and the data has proven time and time again that this method works!

You CAN NOT ignore the role of Continuous Improvement in business – and here’s why.

What is Continuous Improvement?

“Be Better Today Than You Were Yesterday, Plan To Be Better Tomorrow Than You Are Today” is a quote I have lived by for 25+ years of my working career.

The 1% Rule is a relatively new contender but has now become a business management philosophy that states that you should focus on improving your product or service by at least 1% every day. It was developed by Sir Dave Brailsford, former performance director of British Cycling, and used as a means to achieve micro improvement in the British Cycling Team. The concept behind the 1% rule is simple: if you focus on small improvements, you can achieve significant results over time.

The concept of the 1% rule in my opinion is based on Kaizen, which is Japanese for “continuous improvement.” Kaizen was first introduced to the Western World in the 1970s by Toyota, who taught that companies should embrace a culture of continuous improvement rather than trying to maximise efficiency one big hit at a time. Kaizen aims to reduce inefficiency in its 3 major forms. These are muda (waste), muri (overburdening work), and mura (inconsistency of work).

When we look at these strategies, we can see how the power of tiny gains really makes a difference.

1% Improvement Every Day 1.01365 = 37.78%

1% Decline Every Day 0.99365 = 0.03%

How does the Continuous Improvement work in business?

The PDCA Cycle, also known as the Plan-Do-Check-Act Cycle, is a model for continuous improvement that uses four phases to drive process changes through the organisation. This linked to the 3 forms of in-efficiency, muda (waste), muri (overburdening work), and mura (inconsistency of work) gives a superb structure and focus for all employees.

The PDCA Cycle Explained:

Plan: In this phase, you identify a problem or opportunity for improvement. You also create a plan for how to solve the problem or capitalise on the opportunity.

Do: In this phase, you carry out your plan and implement your solution.

Check: In this phase, you review your work to see if it was successful in achieving its objectives and if there are any unintended consequences of your actions.

Act: In this phase, you make adjustments based on what you learned in the check phase and continue with another iteration of the cycle to drive continuous improvement.

By continuously improving your processes, your organisation can achieve higher levels of performance at lower cost. This not only improves customer satisfaction but also helps an organisation achieve its goals faster.

The key to this and building on the marginal gains is to empower everyone to make these short, sharp improvement cycles small enough to be managed at a local level. This will enable them to use their creativity and judgment to find the most effective solution for their teams and customers.

The second aspect of this is that the improvements have to be visible and celebrated. This is not just about being proud of what you have achieved, but also about helping others see what you have done. This creates an environment where people are constantly looking for new ways to improve, which in turn leads to innovation.

The third aspect is that it has to be built into every process in a business. You cannot expect people just to do it because you asked them to – they need processes that encourage continuous improvement across everything they do from how they order stock through the distribution system all the way through customer support.

Why use the Continuous Improvement?

Continuous improvement is a process that can be used in every business setting of all sizes and all sectors, from small businesses to large corporations.

It’s Good for Business

The benefits of continuous improvement can be seen throughout the business world. By using this approach, companies are able to stay competitive while providing better quality products and services at lower prices. This helps them grow their customer base while increasing their profit margin through increased sales volume.

It’s Good for Employees

Continuous improvement is also good for employees because it provides them with job security. If you have implemented a continuous improvement program in your company, then you have created an environment where everyone is constantly making improvements which makes your company more competitive in the marketplace and less likely to be outsourced in favour of cheaper labour costs elsewhere.

  • People feel empowered because they have more opportunities for growth and development.
  • Employees feel more engaged because they feel like their work matters and makes a difference.
  • The company attracts better talent because employees want to work for companies that are doing great things for their customers.

Does Continuous Improvement really work?

Yes! Continuous Improvement absolutely works!

I’ve implemented and completed Lean Thinking and Continuous Improvement Projects in 100+ businesses over my career and have no doubt on the impact it can make.

On my very first project back in the 1990’s we took a machine change over from 480 mins to sub 20 mins, saving a £250K capital expenditure. As Senior Exec I’ve saved £10m+ year on year through the implementation of Continuous Improvement. I’ve seen every employee within a business take pride in completing numerous small incremental changes that compound in delivering a huge result.

In order to achieve these results, you need to be prepared to put in the work. It’s not an overnight process—it takes patience as well as an unwavering commitment to creating positive change at every level of your organisation. But once you’ve seen the first results, you’ll find it’s worth every minute invested!

You’ve only got to read some of our Case Studies to realise the potential.

Takeaway: Challenging yourself and your employees to make small improvements every day can have a dramatic effect on your overall business growth.