The Productivity Puzzle and Lean

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

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

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

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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A3 Problem-Solving – How To Tell the Story On One Sheet of Paper.

I was chatting with a few contacts recently, and the topic of A3 Problem Solving came up. It got me thinking, and I figured it was worth doing a quick overview of what it is and, more importantly, why it’s so surprisingly effective.

We’ve all been there, haven’t we? Staring at a 40-page report that’s landed in our inbox, complete with dense paragraphs, endless charts, and a conclusion that, if we’re honest, we’ll probably just skip to. Or maybe we’re the ones writing it, spending days crafting the perfect document, only to suspect it will be skimmed at best and ignored at worst. There’s a kind of corporate theatre to it all. We create these huge, comprehensive documents to prove we’ve done the work, but do they actually help anyone think better or make better decisions? Most of the time, I’d argue they don’t. They bury the essential story under a mountain of information.

This is where a beautifully counter intuitive idea comes into play. The idea that you can achieve more clarity, better thinking, and stronger alignment with less. Specifically, with a single sheet of A3 paper.

Problem solving, at its heart, is a thinking-intensive activity. But the act of writing things down, of structuring our thoughts, can massively amplify the quality of that thinking. It forces us to move from a jumble of ideas in our heads to a logical, coherent narrative. The A3 process is a framework designed to do exactly that. It guides us to document key information and decisions at each step of a problem-solving journey. This document then becomes a living thing, something that can be shared with others to get their input, to challenge our assumptions, and to build a shared understanding before any final decisions are made.

It sounds simple, and in many ways it is. But its power lies in a discipline that most of our modern reporting has lost.

So, Why A3? A Quick History Lesson

Let’s get the most obvious question out of the way first. Why the name A3? It’s almost comically practical. The methodology was pioneered at Toyota, a company famous for its relentless focus on efficiency and continuous improvement. Back in the day, much of their communication across different sites, and even different countries, was done by fax. And A3, which is roughly 29 by 42 centimetres, just happened to be the largest size of paper that could reliably fit through a fax machine.

It’s an amazing little detail, I think. A world changing management philosophy constrained and shaped by the technology of the time. It’s a perfect reminder that innovation doesn’t always come from some grand, abstract vision. Sometimes it’s born from very real, very mundane limitations. The size constraint wasn’t an afterthought; it was a foundational element that forced a particular kind of discipline. You couldn’t just keep adding pages. You had to be concise. You had to make every word and every chart count.

This little piece of history is crucial because it gets to the very soul of the A3 report. The key fundamental is not the rigid format, the specific boxes you have to fill in, or the finesse with which you create fancy drawings and charts. To be honest, a beautifully designed A3 that reflects shallow thinking is completely useless. The real point, the thing that makes it all work, is the communication process it enables.

The A3 is the physical manifestation of a problem solving journey. It’s a tool that underpins a deeper process of critical thinking and collaborative decision making. It allows the most critical information about a problem, from its background to the proposed solution, to be distilled onto a single page. This can then be shared across the business, allowing others to quickly evaluate the thought process behind it. It becomes a formal means for requesting support and advice, which in turn aligns everyone in the organisation on how the problem will be tackled and moved forward. It transforms problem solving from a solo activity into a team sport.

Anatomy of an A3 Report

If you look at a typical A3 template, you’ll see it’s laid out to tell a story, flowing logically from left to right and top to bottom. While the exact layout isn’t set in stone, as I mentioned, the format is not the main point, most successful A3s follow a structure that mirrors the Plan Do Check Act, or PDCA, cycle. It guides you through a systematic process, ensuring no critical steps are skipped.

A3 Problem-Solving Template

Let’s break down the typical sections.

  1. Title or Theme: This is the headline. It should concisely define the problem you’re trying to solve. Something like, “Reducing Customer Wait Times in the Support Queue” or “Improving the Accuracy of Monthly Financial Forecasts.” It needs to be clear and specific, framing the entire document.
  2. Background / Current Condition: This is where you set the scene. Why is this problem important? Who does it affect? What is the business impact? This section isn’t about opinions; it’s about facts. You need to go and see the process for yourself, what lean practitioners call genchi genbutsu. You should include data, charts, or simple diagrams to show the current state. What does the process look like right now? What is the performance? This section grounds the problem in reality.
  3. Goal / Target Condition: If the last section was about where we are, this is about where we want to be. What does success look like? The key here is to be incredibly specific and measurable. “Make things better” is not a goal. “Reduce average customer wait time from 4 minutes to 90 seconds by the end of Q3” is a goal. It should be a clear, unambiguous statement that leaves no room for interpretation. This target becomes the benchmark against which you’ll measure your success.
  4. Root Cause Analysis: To me, this is the absolute heart of the A3. It’s where the real thinking happens. It’s also the step that is most often rushed or skipped entirely in traditional problem solving. We see a problem, we jump to a solution. The A3 process forces you to slow down and ask one simple, powerful question, over and over again: Why? This is the famous “5 Whys” technique. You state the problem and ask why it’s happening. Then you take that answer and ask why that is happening. You continue drilling down until you move past the symptoms and uncover the true root cause. Often, the cause you end up with is completely different from what you initially suspected. This section might include a fishbone diagram or a simple bulleted list, but its purpose is to show a clear, logical chain of reasoning from the problem to its source.
  5. Countermeasures / Proposed Actions: Only after a thorough root cause analysis can you begin to think about solutions. Notice the word “countermeasures,” not “solutions.” It’s a subtle but important distinction. A countermeasure is a specific action designed to address a specific root cause. This section should directly link back to your analysis. If a root cause was “Inadequate training on the new software,” a countermeasure would be “Develop and deliver a mandatory 2 hour training module for all team members.” You’re not just throwing ideas at the wall; you’re proposing targeted interventions.
  6. Implementation Plan: This is where the plan becomes real. An idea without a plan is just a wish. For each countermeasure, you need to define who is responsible, what specific tasks need to be completed, and when they need to be done by. It’s a simple table: What, Who, When. This creates accountability and turns a good idea into a concrete project.
  7. Follow Up / Verification: How will we know if our countermeasures actually worked? This section closes the loop. It defines the metrics you will track, which should be directly related to the goal you set at the beginning. It also specifies when and how you will check the results. Are you going to review the data weekly? Monthly? This step ensures that the A3 isn’t just a one time exercise but the start of a continuous improvement cycle.
  8. Results and Learning: Finally, once the plan has been implemented and enough time has passed, you document what actually happened. Did you hit your target? If so, great. What did you learn that you can apply elsewhere? If not, why not? This is just as valuable. An A3 that shows a failed experiment is not a failure; it’s a source of incredible learning. This final section captures that knowledge for the rest of the organisation.

The Real Magic: A Tool for Thinking and Talking

So, that’s the structure. But if you just download a template and fill in the boxes, you’re missing the point entirely. The document is just an artefact; the real value is in the thought process and the conversations it creates.

First, it’s a tool for clarifying your own thinking. The constraint of the single page is a powerful focusing agent. You can’t waffle. You can’t hide behind jargon or bury weak arguments in long paragraphs. You have to be brutally economical with your words. The process of trying to fit a complex problem onto one sheet forces you to simplify, to prioritise, and to make sure your logic is sound. You can literally see the connections between the problem, its root cause, and the proposed fix. It makes your thinking visible, not just to others, but to yourself.

Second, and perhaps more importantly, the A3 is a catalyst for communication and collaboration. In a typical corporate setting, a proposal or report is often worked on in isolation and then presented in a big meeting, a “big reveal” moment. This often puts people on the defensive. They poke holes in it, ask questions the presenter isn’t prepared for, and the whole thing can descend into conflict or get bogged down in debate.

The A3 process flips this on its head. The A3 is meant to be a draft, a conversation starter. The idea is to take your messy, pencil drawn A3 and walk it around to the key stakeholders. This process is sometimes called nemawashi in Japanese, which translates literally to “turning the roots.” It’s about carefully building consensus from the ground up. You show it to your manager, to the people who work in the process, to colleagues in other departments. You don’t present it; you ask for their help. “Here’s what I’m thinking, what am I missing?” “Does this data look right to you?” “What are your thoughts on these countermeasures?”

This approach does a few wonderful things. It enriches the A3 with diverse perspectives, making the final outcome much stronger. It builds buy in from the very beginning, because people feel they have been part of the solution finding process. And it fosters a culture of coaching. A good manager doesn’t just approve or reject an A3. They ask probing questions. “Why did you stop your root cause analysis there?” “How confident are you that this countermeasure will achieve the full target?” They coach the author to think more deeply, turning every problem into a development opportunity.

How to Start Your First A3

If any of this sounds interesting, my advice is simple: just try it. Pick a small, nagging problem that you’re familiar with. It doesn’t have to be a multi million pound production issue. It could be something as simple as “Team meetings consistently run over time” or “The process for submitting expense reports is confusing.”

And please, for your first few attempts, follow the original author’s advice and use a pencil and a physical piece of paper. I know it sounds old fashioned, but there’s a reason for it. A PowerPoint or a fancy software template can create a false sense of finality. It looks polished, so we become reluctant to change it. A pencil and paper, on the other hand, feels temporary and iterative. It gives you permission to be messy, to erase things, to scribble in the margins, and to focus purely on the quality of your thinking, not on your graphic design skills.

Walk through the sections one by one. Go and observe the current condition. Talk to the people involved. Spend a good amount of time on the root cause analysis. Don’t just accept the first answer that comes to mind. Keep asking why. Then, once you have a rough draft, go and talk to someone about it. See what they think. Your first one won’t be perfect, and that’s completely fine. The goal is to practice the thinking discipline, not to create a masterpiece.

Over time, you’ll find that the structure becomes second nature. It becomes an internal mental model for how you approach any problem, whether you’re formally writing an A3 or not.

A Way of Thinking for Everyone

While the A3 report was born on the factory floors of Toyota, its application is truly universal. It’s a mistake to see it as just a manufacturing tool. At its core, A3 thinking is simply a structured, collaborative, data driven approach to problem solving. And what part of a business couldn’t benefit from that?

Think about it.

A marketing team could use it to analyse why a particular campaign underperformed, digging into root causes related to audience targeting, messaging, or channel selection, rather than just shrugging and moving on to the next thing.

An HR department could use it to tackle a problem like high employee turnover in a specific team. Instead of jumping to solutions like a pay rise, they could use the A3 process to uncover deeper issues related to management style, workload, or career development opportunities.

An IT team could use it to finally solve a recurring network outage, systematically investigating the root cause instead of just rebooting the server every time it happens.

Even at a strategic level, a simplified A3 format can be used to propose a new business initiative, outlining the current market condition, the proposed goal, the analysis behind the proposal, and a high-level implementation plan, all on one page for senior leaders to review.

The principles are always the same: Go see for yourself. Grasp the current situation. Analyse down to the root cause. Build consensus around effective countermeasures. And follow through to ensure they work.

In the end, the A3 process is a powerful antidote to the complexity and information overload that plagues so many of our organisations. It’s a call to return to a more disciplined, more thoughtful, and more human way of solving problems. It reminds us that clarity doesn’t come from adding more information, but from stripping away everything that isn’t essential.

It proves that sometimes, the most powerful and persuasive story you can tell is the one that fits on a single sheet of paper.

We’re different it won’t work here

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.

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?

It’s easy to feel like a factory tour is something that happens once every couple of years, but in reality, it’s something that should happen every day. Conducting regular factory tours and assessments is crucial for maintaining operational efficiency, safety, and overall productivity. This regular review helps factory managers and supervisors identify areas of improvement and ensure that their operations are lean and effective.

Walking your factory floors is not just a managerial activity; it’s an opportunity to observe, learn, and communicate with your workforce. There are nine key items to consider when assessing the lean nature of your factory. These elements provide a comprehensive framework for evaluating your factory’s effectiveness and identifying opportunities for improvement.

1. Work Stations

The first item to consider is the state of your workstations. A clean, organised workstation is a hallmark of a well-run factory. Are the workstations free from unnecessary material and equipment? Are tools organised, identified, and easy to find? The 5S methodology (Sort, Set in order, Shine, Standardise, Sustain) is a great tool to ensure that workstations are kept in optimal condition.

Visual labelling, proper lighting, and cleanliness are crucial. Workstations should be well-lit to prevent accidents and ensure that employees can work efficiently. Equipment needs to be clean and in good working order. Supervision and support personnel should be present on the shop floor to provide immediate assistance and oversight. Metal-on-metal contact, safety hazards, and debris on the floors are signs of poor workstation management. Even the cleanliness of the bathrooms can provide insights into the overall maintenance of the facility.

2. Monuments

Monuments refer to large, immovable machines that are anchored to the floor. These machines often require materials to be delivered to them, which can disrupt the flow of production and reduce flexibility. It’s important to evaluate whether these monuments are still in use and if they are contributing to inefficiencies in your production process.

Not all older machines are inefficient; some are purpose-built and offer flexibility in cellular manufacturing. The key is to assess whether machinery, material locations, and drop-off points can be easily rearranged to improve workflow and reduce bottlenecks.

3. Work in Process (WIP)

Excessive Work in Process (WIP) is a clear indication of inefficiencies in the production process. Are there piles of WIP accumulating on the factory floor? Has some of it been there so long that it has grown roots or celebrated multiple birthdays? Each piece of WIP should have associated paperwork, and there should be a clear process for managing and prioritising hot items.

In an ideal factory, WIP should be minimised, and the only WIP present should be classified as Standard in Process Stock (SIPS), meaning it is controlled and part of the regular workflow. Reducing WIP can lead to significant improvements in efficiency and productivity.

4. Visibility of Targets and Schedules

Can everyone in your factory see if they are on target or behind schedule? Hour-by-hour monitoring or close-to-real-time tracking is essential for maintaining productivity and identifying issues as they arise. Using visual indicators like red and green colours can help distinguish between normal and abnormal conditions.

When abnormalities are identified, they should be recorded and analysed to determine the root cause and implement corrective actions. This proactive approach helps prevent recurring issues and ensures that production stays on track.

5. Team Metrics

What metrics do your teams have to measure their performance? Charts, graphs, and objectives should be posted in the work area, and these should be standard documents that are revision controlled, time and date stamped. Metrics need to be up-to-date, regularly reviewed, and actionable.

Having clear metrics allows teams to see if they are meeting their targets and identify areas that need improvement. It also helps distinguish between normal and abnormal conditions, enabling quick responses to emerging issues.

6. Materials at Point of Use

Efficient material delivery is crucial for maintaining a smooth production flow. Are materials delivered to or stacked at the point of use? If a worker loses a component like a screw, nut, or rivet, do they have to go to the stockroom to retrieve another one? This can cause significant delays and disrupt the workflow.

Assess how items are replenished and whether the process depends on cranes or forklifts. Implementing a just-in-time (JIT) system where materials are delivered exactly when needed can reduce inventory costs and improve efficiency.

7. Product Flow

How does the product flow through your factory? Is it through a cell, moving line, or in large batches or lots? Associates should be positioned close together so they can communicate easily, see each other’s WIP, and assist if something goes wrong.

A smooth product flow reduces bottlenecks and ensures that production processes are efficient. It also fosters a collaborative environment where workers can support each other and address issues promptly.

8. Testing and Inspection

Where is the product inspected and tested? Are inspections conducted by the associates themselves, or does the product move to a separate area for inspection? Having large numbers of inspectors can indicate inefficiencies, and a backlog in inspections can delay the production process.

Defects should be recorded, reviewed, and actioned. Tracking defects and implementing corrective actions can help reduce their occurrence and improve product quality over time.

9. Communication and Engagement

The most important aspect of assessing your factory is communication. Show dignity and respect at all times, question and challenge, talk to the people on the front line, and ask why. Understanding the perspectives of those directly involved in production is invaluable for identifying issues and opportunities for improvement.

Engage with your workforce, use your senses to observe, and foster an environment where open communication is encouraged. This approach not only improves operations but also boosts morale and job satisfaction.

In-Depth Exploration

Now that we have outlined the nine key points to consider when assessing your factory, let’s delve deeper into each aspect to provide additional background context, examples, and expert opinions.

1. Workstations: The Foundation of Productivity

Workstations are the foundation of productivity in any factory. A well-organised workstation minimises the time workers spend searching for tools and materials, reduces the risk of accidents, and enhances overall efficiency. The 5S methodology is widely recognised as a best practice for maintaining organised workstations.

  • Sort: Remove unnecessary items from the workspace.
  • Set in Order: Arrange tools and materials for easy access.
  • Shine: Keep the workspace clean.
  • Standardise: Establish consistent cleaning and organisation procedures.
  • Sustain: Maintain and review standards regularly.

For example, Toyota, a pioneer in lean manufacturing, has implemented the 5S methodology across its production facilities. This approach has significantly improved their operational efficiency and reduced waste.

2. Monuments: Balancing Flexibility and Efficiency

Monuments, or large immovable machines, can be a significant barrier to flexibility in a production environment. While they are often necessary for specific manufacturing processes, it’s essential to evaluate their impact on workflow and efficiency.

In some cases, investing in more flexible machinery that can be easily rearranged can lead to substantial improvements. For instance, a study by the Lean Enterprise Institute found that companies that replaced monuments with more adaptable equipment saw a 30% increase in production efficiency.

3. Work in Process (WIP): Controlling Inventory Levels

Excessive WIP can tie up valuable resources and space, leading to inefficiencies. Implementing a pull system, where production is driven by actual demand rather than forecasts, can help control WIP levels.

Kanban, a scheduling system that visualises work and inventory levels, is an effective tool for managing WIP. By using Kanban cards to signal when new materials are needed, factories can reduce excess inventory and improve flow.

4. Visibility of Targets and Schedules: Real-Time Monitoring

Real-time monitoring of targets and schedules is crucial for maintaining productivity. Digital dashboards and visual management tools can provide instant insights into production status and help identify issues quickly.

For example, General Electric (GE) uses real-time monitoring systems across its production facilities. These systems provide up-to-the-minute data on production performance, enabling quick responses to any deviations from the plan.

5. Team Metrics: Data-Driven Decision Making

Having clear and actionable metrics allows teams to make data-driven decisions. Metrics should be aligned with overall business goals and regularly reviewed to ensure they remain relevant.

Key performance indicators (KPIs) such as cycle time, throughput, and defect rates provide valuable insights into production performance. Regularly reviewing these metrics helps identify trends and areas for improvement.

6. Materials at Point of Use: Just-In-Time Delivery

Just-in-time (JIT) delivery is a cornerstone of lean manufacturing. By delivering materials exactly when they are needed, factories can reduce inventory costs and minimise waste.

For example, Honda has implemented JIT delivery across its production facilities, resulting in significant cost savings and improved efficiency.

7. Product Flow: Streamlining Processes

A streamlined product flow reduces bottlenecks and ensures that production processes are efficient. Techniques such as value stream mapping can help identify and eliminate waste in the production process.

By mapping out the entire production process, factories can identify areas where delays and inefficiencies occur and implement improvements to enhance flow.

8. Testing and Inspection: Ensuring Quality

Effective testing and inspection processes are essential for maintaining product quality. Implementing in-line inspection, where quality checks are integrated into the production process, can help identify defects early and reduce rework.

For example, Boeing has implemented in-line inspection in its aircraft manufacturing process, resulting in higher quality products and reduced production time.

9. Communication and Engagement: Fostering a Collaborative Environment

Open communication and engagement with the workforce are crucial for identifying issues and opportunities for improvement. Regular team meetings, suggestion programs, and employee feedback mechanisms can help create a collaborative environment where continuous improvement is encouraged.

For instance, Toyota’s approach to continuous improvement, known as Kaizen, involves all employees in identifying and implementing improvements. This approach has been instrumental in Toyota’s success and is widely regarded as a best practice in lean manufacturing.

Key Takeaways

Assessing the effectiveness of your factory is an ongoing process that requires regular reviews and a commitment to continuous improvement. By focusing on the nine key areas outlined above, factory managers can identify opportunities for improvement and implement changes that enhance efficiency, productivity, and overall performance.

Regular factory tours and assessments provide valuable insights into the state of your operations and help ensure that your factory remains competitive in an ever-evolving market. By fostering a culture of continuous improvement and engaging with your workforce, you can create a productive and efficient factory that meets the demands of today’s dynamic business environment.

Remember, the journey to lean manufacturing is never complete. It requires ongoing effort, regular reviews, and a commitment to excellence. Now, armed with these insights and best practices, go look, see, and improve your factory’s operations.

 

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The Process of Improvement for any Business

Standardise

In standardising a process you want to be able to see the Abnormal from Normal conditions. When the process is disrupted by an obstacle or issue, you can see it. The Standardise, Do, Check, Act cycle.

Stabilise

Now you can begin to systematically simplify, Combine, Eliminate the issues to Stabilise the process. Whether it’s achieving TAKT, a cycle time, changeover, order entry, bid-no bid process, etc. The Plan, Do, Check, Act cycle.

Standardise and Stabilise play off of one another. (and you must be applying the rigorous PDCA management process as a business, if you can’t do that or sustain it ultimately you will fail)

Optimise

The drive towards perfection should always be sort within our processes across all functions, departments, businesses. This is optimisation, in driving for continuous improvement. Once we have standardised and stabilised our processes internally we can also start to look externally within our supply chain and support the SDCA and PDCA within those businesses that are struggling, remember we want a way of understanding the Abnormal from Normal conditions, no reason we can’t apply that in measuring our supply chain and why not pass on the learning, we all benefit. (and I don’t mean how some OEM’s have applied this before, internally a mess but let’s concentrate and beat up the supplier, short termism!)

Optimise also goes hand in hand with Grow in my eyes, all of the improvements align to our Strategy, and our Strategy will have new business, innovation in our products, so optimise and utilise all of those resources to ensure future growth.

Grow

Apply the SDCA, PDCA into Sales and Marketing processes. Integrate the tools and techniques of Lean Manufacturing, Operational Excellence with the proven sales methods and drive sustainable increases in sales performance and profitability.

In improving the efficiency of our company’s sales processes, we enable the sales and Customer facing teams to reduce waste and duplication and free up much needed Customer contact time in the sales cycle creating greater customer value.

As the orders come in, we come back to our Standardise and Stabilise cycle and the cycle repeats.

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First Impressions Count in Customer Service

When it comes to Customer Service, my opinion is first impressions count.

Recently I visited a Training company, their offices are based on a retail park that has two/three main car dealerships. Upon leaving the offices I decided to look around one of the dealerships used car sales. I parked up, put my coat on and went for a walk round. I have always thought about owning a 4×4 style vehicle (don’t ask me why….). After a couple of minutes a Salesman came out and asked if I was OK. I introduced myself and asked about the car. I was expecting an introduction back and the normal handshake. NOTHING!

So intrigued by this I made up a deal that I had been offered by another dealership and could they match it (not a big difference, match a part exchange and match the price, £500 difference on a price). The salesman shook his head and said I will have to see the manager, would you come to the office. When we entered the office the Salesman went straight to the Sales Managers Office and started to relay the (made up) offer I had been given. Again I was expecting the Sales Manager to come out, formal introductions, would you like a coffee (customer coffee machine in the office) but again NOTHING!

So at this point I had given them the biggest hint I was interested, match a price offering (not beat it) and we’ll go from there. What they had done is not introduce themselves or their company, not asked me my name or details and not even shook my hand. The manager didn’t even look up to acknowledge his salesman yet alone me…IT THIS GOOD CUSTOMER SERVICE FOR A POTENTIAL CUSTOMER?????

The Salesman came from his managers office handed me a piece of A4 paper folded in half and said come back to us if you’re not happy with your other offer. I walked from the office in absolute amazement, no handshake, no names, no one had taken my details and no one had tried to source an alternative vehicle. I unfolded the piece of paper to find a poor quality black and white print of the wrong car??????

That first impression is critical to building rapport, working relationships, personal dialogue and ultimately how both parties will move forward together. I am quite a direct down to earth sort of guy (anyone that knows me will know this), I pride myself on being a good listener, to ascertain and understand and above all polite, courteous and respectful at all times.

Regardless that they may have seen through my made up deal (but I doubt that) they had done nothing to ensure my experience was great and I would keep them in my thoughts for a future purchase. Imagine how it could potentially affect their sales if I had named them in this article? And do you think I will ever go back?

Remember first impressions do count in Customer Service.

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