lean manufacturing

Why you should do this when looking at Business Performance

Posted on by Adam Payne

Raising Performance is always a challenge (many a sleepless night) but it’s not just about getting it right in your manufacturing processes, it’s about looking at your business as a whole.

Recently, we were asked to support a £40m turnover company with an objective to reduce costs.

Now, although Reducing Costs (and in particular eliminating waste) is an excellent focus, you can sometime lose sight of what other advantages/opportunities there may be, new market opportunities, sales optimisation, finance, etc.

During our detailed business diagnostic, it became apparent that there were some fantastic opportunities to be realised with particular projects on Increasing Growth and Efficiency Savings.

With TCMUK’s Business Practitioners coaching and mentoring our customers internal team, a total of £700K+ efficiency savings, £1M in cash flow improvement and a 17% growth opportunity have been realised so far within the business, with further projects being highlighted for implementation over the next 2/3 years.

So remember, step back and look at the whole business not just the usual suspects (this goes for any size organisation) and you’ll be confident (and hopefully sleeping) knowing you are focused on the right things.

And don’t forget, if getting results like this is on your agenda and you’re looking for some sector expertise, call on 0330 311 2820

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Re-Thinking Being Lean?????

Posted on by Adam Payne

I’ve recently read articles on Lean Manufacturing and in particular how certain businesses have been re-thinking the implementation of Lean.

Now for a bit of background on the articles. All of the business Leaders that started the implementation had been replaced and within 6 months of them being replaced the new Leader had decided to drop the programme. Now most of the stakeholder’s state that their objective is to address the challenges to delivering high-value to the customer, mmmmmm I wonder? By agreeing to drop a programme of business improvement?

Yes, lean takes time, yes lean utilises the front-line workers, yes you have to manage it and believe in it, but Lean is a long term strategy, a set of principles on how you do business, your business DNA. I wonder sometimes with the drive for instant results in a short space of time, particularly from stakeholders, the impatience for money, dividends, investors ultimately see the Leader that introduced the programme removed. This leads me to believe that stakeholders/leaders are either, ignorant, arrogant, none the wiser or have their own interest at heart, on what long term strategy and Implementation actually and physically means. I have been told about the removal of 11 Operations Managers over a 18 month period due to perceived lack of results, you cannot be that wrong in your recruitment process (or perhaps you can but that’s a separate discussion), so leads me to believe it’s the level above that’s the issue.

Now don’t get me wrong, if your haemorrhaging money within operations due to scrap or process variation don’t go and implement a 5S programme. Instead stop the haemorrhaging by attacking the root causes for variation and scrap, get controllable and predictable outputs. 5S may be part of the implementation but it’s not the saviour.

I worked in a number of businesses in my career and still see the same issues regarding short term results oriented thinking that has cost millions (and yes I mean millions in some cases). When I actually know that had the Lean Initiative programme, Operational Excellence, etc. been executed and maintained when it started, those losses wouldn’t have appeared and would have been quite the opposite.

Cost cutting is often a major reason for ditching the latest programme, and Leaders think that through the force of their personality or financial acumen that they are going to be able to fix the business without the aid of every employee in the business, how foolish are they??????

Any Improvement Programme is not going to be easy, but the benefits are massive for everyone, it takes time but ‘time’ is not a reason not to try.

What did make me smile was one of the businesses new Leaders justified the termination of the programme due to that fact that the frontline workers were involved, but in involving them had potentially reduced turnover times by 6.5 mins which equated into £410000/year of increased revenue.

Lean Manufacturing, business Improvement, whatever you call it, is not a short term strategy, but that’s not a reason not to pursue it.

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The Productivity Puzzle and Lean

Posted on by Adam Payne

I’ve never been one to shout about Lean, Six Sigma or Theory of Constraints, to individuals to solve a solution. I personally have though, applied the tools and techniques to resolve a situation or gain an opportunity I have faced. Granted, it’s not just about the application of tools and techniques, it’s equally important to focus on People, Culture and Managing Change within today’s organisations and society. Every single person has touched or been a part of a Lean process, within our everyday life from grocery shopping to our work we will have been in contact with lean in motion.

The interesting thing I have noticed recently are the articles beginning to appear regarding “is Lean at a crossroads?” and “How Lean is perceived today” particularly in the UK (but perhaps globally). An article by Morpheus Group stated “Businesses are taking a much more pragmatic approach, using a blend of tools….with very few businesses labeling their Corporate Programmes as Lean”.

It does seem that Lean and other Japanese terms associated with it are perceived a risk to alienating the workforce. I wonder why? Are we that uncomfortable with something that is not invented by us?? Are we hiding behind the terms as an excuse not to change??? (There is no doubting it is hard to implement and sustain, but that should never be an excuse). When I personally think about these questions it’s never been about the wording (don’t get me wrong I do cringe with some of them) but it’s about the application, execution/implementation that is key and the right behaviours that drive it so that we can benefit from it.

Businesses are placing a lot of importance on Strategic Cost Saving and Quality. This is absolutely fundamental in “Change” for any business. Strategy and Performance Management, Policy Deployment, Hoshin Kanri, whatever you choose to call it, is the back bone of your business, it is how you do business.

I believe Business Improvement is more important today than it ever has been with the globalisation of markets. What is it that gives us the competitive edge? In particular UK Productivity remains below pre-recession levels. I have been in discussion groups where an estimated 40% of productivity is lost through non value added activities, an estimated £3 Billion cost. Something Lean, Six Sigma, TOC can certainly impact.

This debate will carry on and involves so much from skills, impact on society, etc., etc.

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Manage Time as a Resource

Posted on by Adam Payne

If your managing time in all sectors of the business, from Sales, Product Development and Production it will result in shorter planning and development cycles, as well as less process time in manufacturing.

Whether you’re a manufacturer making computer components, tin cans, widgets or an individual working in a purchasing department producing orders, reports, or budgets you are still producing an output, an output that someone wants.

We all have our processes (inputs) and transform them into something someone wants (outputs).

Time is the key element to control within our processes, for this we use standard work.

The establishment of time based standardised processes is the greatest key to creating consistent performance. Only when the process is stable you can begin the creative process of improvement.

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Improving Performance – Engineering Company Case Study

Posted on by Adam Payne

Increased Delivery, Increased Sales

**No images or Business Name as Customer NDA in place**

Opportunity

This Private Equity owned business was under performing against budget. Particular attention was required within the operational areas with Productivity and On Time Delivery drifting.

The Managing Director required a system to: communicate the strategy, allocate resources, focus and align actions, and control business drift. He wanted to ensure that all key improvement activities had ownership, responsibility, accountability and the relevant training and practitioner support required to increase overall company performance.

Improvement

Working with the Managing Director & Executive Team the decision of implementing Strategy Deployment and A3 Problem Solving was agreed along with hands-on project execution support.

Training was given to all Management and Leaders in what Policy Deployment and A3 Problem Solving is, what benefits and how the process should be structured to enable execution of the business objectives. Key fundamentals were as follows:

  • Identify the few, long term breakthrough objectives that are critical to long term success of the company.
  • Link these objectives with specific action plans throughout the organisation.
  • Focus and align the company’s internal organisations to achieve these long-term objectives.
  • Turn the strategic plan into a year – over – year action plan.
  • Coaches and Mentors others

Workshops were held to ascertain the critical improvement activities to be focused on within the business. Training and Coaching was given to the owners of each A3 Plan on how to manage and communicate through the A3 process. Guidance and training to understand background, current state, problem definition, analysis, actions and follow up.

Management Control Rooms were introduced with regular performance reviews held with all owners and stakeholders present. Ongoing coaching and mentoring in Management Behaviour for the process along with business improvement training and our Lean Coaching Programme to ensure execution and sustainability. Operational Excellence and Process Optimisation workshops/projects were completed covering Sales, Purchasing & Logistics, Operations and Planning.

The company significantly impacted it’s financial position over a 9 month period,

  • Increasing Sales by 20%
  • Delivery by 33%
  • Efficiency by 28%.

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The 7 Wastes: Unseen Thieves in Your Business

Posted on by Adam Payne

In the world of lean manufacturing, ‘The 7 Wastes’ are infamous for their stealthy operations, silently chipping away at profits and productivity. These wastes fly under the radar, often going unnoticed by even the most astute professionals. Yet, if left unchecked, they can cripple an organisation’s ability to remain competitive and responsive to customer demands.

The Infamous Seven: TIMWOOD

Meet the hidden culprits named TIMWOOD, an acronym that represents the seven wastes in manufacturing:

7 Wastes Infographic

Transport (Unnecessary Movement of Materials)

The unnecessary movement of materials from one place to another is often the result of poor shop layout or a disjointed process flow. This waste can lead to an increase in handling which may cause damage or loss of materials, delays, and added labour costs. Eliminating this waste requires a streamlined approach to layout design and process flow optimisation.

Inventory (Excess Products and Materials)

Excess inventory is a common issue where production outpaces demand, leading to tied-up capital, storage costs, potential obsolescence, and increased risk of damage or loss. Inventory levels should be scrutinised, and techniques such as Just-in-Time (JIT) production and demand-driven planning should be considered for improvement.

Motion (Unnecessary Movement by People)

Similar to Transport, Motion refers to any movement by employees that does not add value to the product. This can range from reaching for tools to walking between workstations. Reducing unnecessary motion is integral to improving ergonomic conditions and efficiency. This reduction can be achieved by redesigning workspaces to minimise reach and travel distance and by standardising work procedures.

Waiting (Idle Time)

When employees or machines are idly waiting for the next step in production, this represents a significant waste of time and resources. This can be due to poor workflow, machine breakdowns, or bottlenecks. Tackling this waste involves a thorough analysis of processes to synchronise work steps and to ensure a continuous flow.

Overproduction (Producing More Than Needed)

Manufacturing items before they are actually required or in quantities exceeding customer demand results in overproduction – the root of many other wastes. This can lead to excessive inventory and increased holding costs. To nip overproduction in the bud, implement pull systems based on real customer demand.

Over-Processing (More Work Than Required)

Over-processing is seen when more work is done on a product than what is valued by the customer. This waste occurs due to unclear customer specifications or internal miscommunication. Reducing over-processing demands a clear understanding of what the customer values and aligning the production process to those standards.

Defects (Production that Requires Rework)

Defects and the need for rework can be the most apparent and costly form of waste. They lead to wasted materials, labour, and time, not to mention the potential to harm a business’s reputation. A culture focused on quality—like adopting Six Sigma or Total Quality Management (TQM)—can significantly curtail the occurrence of defects.

Identification and Elimination Strategy

Recognising ‘The 7 Wastes’ is the first step to effective lean management. It’s essential to develop a keen eye for these wastes and instil this perspective across all levels of the organisation. This is not a “once in a blue moon” activity but a regular practice that should be embedded into the daily routine. Regular audits, employee training, and a culture that promotes continuous improvement are key factors for success.

To embed this practice, create a system of visible metrics and feedback loops. This promotes responsibility and awareness amongst teams. Engage employees in problem-solving and encourage them to take ownership of their workspaces, suggest changes, and implement improvements.

7 Wastes within a process

Continuous Improvement: The Lean Way

To enter into a sustainable cycle of continuous improvement, adopt the PDCA (Plan-Do-Check-Act) methodology. Regularly plan improvements, do them in controlled conditions, check the outcomes, and act to standardise and stabilise the improvements.

Key Takeaways

Employing strategies to eliminate the wastes identified by TIMWOOD ensures a company’s ability to thrive in today’s competitive marketplace. By fostering a culture of continuous improvement, providing employee education, and implementing systems that promote efficiency, companies can not only identify waste but turn it into opportunity – for growth, for innovation, and for delivering value to customers that rivals cannot match.

If you need help applying these principles and taking practical steps towards eliminating waste, our team at TCMUK Limited is equipped to guide you through the process. The impact of addressing ‘The 7 Wastes’ can be profound. Call us at 0330 311 2820 or email info@tcmuklimited.co.uk to unlock the full potential of lean in your operation.

Sharing insightful methodologies for operational excellence is at the core of what we do. If you found this article useful, please share it with your networks. We encourage feedback and welcome any questions. Feel free to connect on LinkedIn or reach out to continue the conversation on optimising your business processes.

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Less Can be More in Report Writing – telling the Story Using an A3 Report.

Posted on by Adam Payne

Some contacts asking about A3 Problem Solving, I thought I would do a quick overview.

Problem solving is about thinking, but writing things down can help thinking as well.

Using the A3 process we can document key information and decisions each step of the way which can then be shared with others, to get input, and make modifications by using that input.

Why A3? Originally it was because much of the communication across Toyota (the various sites and nations) was by fax, and this was the largest size paper that could fit in a fax machine. (Amazing how some things materialise)

A3 Problem Solving Template

The key fundamental about A3 reports is not the format or the finesse with which you fill in the different sections which fancy drawings, charts etc. It’s the COMMUNICATION process. The A3 is fundamental to the process of problem solving and decision-making. It allows the most critical of information to be shared with your business or businesses for others to evaluate on the thought processes used and as a means for requesting support and advice, which in turn aligns everyone in the organisation on how the A3 will move forward.

The above image is a typical layout (not set in stone though, as previously mentioned the format is not the point), but it highlights the different stages and guidelines for completion.

For anyone interested contact me and I’ll send the guide and some examples in PowerPoint format. My personal opinion is use paper and pencil for a start.

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We’re different it won’t work here

Posted on by Adam Payne

It’s been an interesting month, great meetings, new contacts and one of the most interesting presentations I‘ve given regarding Operational Excellence and Problem Solving.

The presentation was given to the Manufacturing and Construction sectors as part of a Seminar/Workshop.

The comments at the end we’re ones I have heard over and over again, “We’re Different, it won’t work here!”

Is “we’re different” an excuse not try to improve?

This got me thinking in one of my reflective moments, what is it that naturally creates this push back? Do we think that Business Excellence, Operational Excellence, Lean or Six Sigma is a technical tool and technique, only applied to manufacturing, high volume processes, etc? Is it we naturally assume that it’s for the automotive industry?

There are a number of answers you can come up with that can be assigned to this emotion and push back.

So we have to ask ourselves

Do business improvement principles (as that is all they are) apply to pretty much every process? Yes, I’d say so. Does that mean its easy to put in place? Absolutely not. But that, along with being different, should be no reason to not try.

Which leads me on from last month’s article REFLECTION! and into OPERATIONAL EXCELLENCE TRANSFORMATION

We must first seek to understand what is it we are trying to solve, what problem? This could be as an organisation, function, sub-process.

Then we must ask,

What process improvement needs to be done? What do I need to design, re-design, improve to solve our problem and achieve our objective?

Next,

Do I have the capability in house? Do I have the skillset within my team?

We then come to,

What mindset do I need to have? Growth? (One of learning as we do not have the capability in house), Implementation (I have the capability so execute, or get support if you don’t), Experimental (try and test)

Remembering that Leadership behaviour and Programme Management are the key. The governance process you apply.

Final thought – it’s often said that “Operational Excellence doesn’t succeed or fail… it’s just a set of principles. What succeeds or fails is the organisation or the leaders who try.” Success isn’t guaranteed — it requires hard work and creativity to figure out how will work in your setting, because you are different!

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Reindustrialising Britain.

Posted on by Adam Payne

Just reading though an article (again) in the UK Manufacturing Review and felt compelled to quote James Selka (CEO of The Manufacturing Technologies Association).

I have to say James is spot on with his comments.

“We are living through an explosion in the potential of technology, and it provides a most wonderful opportunity to reinvigorate the manufacturing sector in the 21st century.”

“Manufacturing is remarkable because of the multiplier effect that the sector has. It is so complex, and touches so many other sectors, that activity in it acts as a stimulus to the economy as a whole.”

“As technology becomes more central to the process of manufacturing, the cost of labour – the rationale for much of the offshoring that took place – is a smaller and smaller proportion of the cost of manufacturing activity. Labour cost becomes less of a driver…”

“This is not just about what others can do for us, but what we – UK Manufacturing – can do to help ourselves”

Extracts taken from the UK Manufacturing Review 2015 -16 (Stirling Media).

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How Good is Your Factory? Are there Opportunities?

Posted on by Adam Payne

It’s easy to feel like a factory tour is something that happens once every couple years, but in reality it’s something that should happen every day.

When you walk your factory floors there are nine items to get an accurate first impression of how lean you are.

1. Work Stations?
Are they clean, organised, free from unnecessary material and equipment?
Are tools organized, identified and easy to find?
(Are 5S’s in place? Visual labeling? Is the factory well lit? Is equipment clean? Supervision and support personnel on shop floor? Metal on metal contact? Safety hazards? Debris on the floors? Check out the bathroom cleanliness.)

2. How many Monuments do you see?
Monuments are massive machines anchored to the deck, not easily moved to which material has to be delivered to, can cause issues with the flow of product (lack of flexibility)
Are they still in use? Not to be confused with age, often older machines are purpose built and give us flexibility in cellular manufacturing. Can machinery, material locations, drop offs be easily rearranged?

3.Work in Process?
Are there piles and piles of Work in Process (WIP)? Has some of it grown roots, celebrated its 1st, 2nd even 3rd birthdays? Does it have any paperwork? Do you have HOT items?
In the ideal factory you should only have the WIP you are working on and its classed as Standard in Process Stock (SIPS) in my eyes as it is controlled.

4. Can everyone see if they are on Target or Behind Schedule?
Hour by hour monitoring, or close to real time as you can get. Can you see the Abnormal from Normal? Use Red and Green to distinguish. Is abnormal recorded for root cause corrective action?

5. What other Metrics do your teams have?
What charts, graphs, objectives, are posted in the area? Are they a Standard Document? (revision controlled, time and date stamped)
Are the Metrics up to date, reviewed, actioned? Again are they on Target? Can you see the Abnormal from Normal easily?

6. Are Materials delivered to or stacked at the Point of Use?
If a worker loses a component (screw, nut, rivet) do they have to go to the stockroom? Ask yourself how are items replenished? Does the replenishment depend on a crane or forklift?

7. Does the Product Flow?
Through a cell, moving line or in large batches or lots? Are associates close together, can they talk to one another, see one another’s WIP, do they help each other out if something goes wrong?

8. Look at the Testing and Inspection?
Where is the Product inspected and tested? Do the associates do most of the inspections or does the product move to another area? Do you have large numbers of inspectors? What is your inspection backlog? Are your defects recorded, reviewed actioned? Are they reducing?

9. Ask! Talk! Communicate! Question!
The biggest and most important. Show dignity and respect at all times, question and challenge, talk to the people on the front line and ask why? Understand? Use your senses.
This list is not definitive and its definitely not just for manufacturing, you apply to all functions, businesses, sectors, industries. Now Go Look See!

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