management

The Lean Bug: Embracing The Lean Revolution in Manufacturing

Posted on by Adam Payne

Igniting Transformation with Lean Philosophy

Lean Manufacturing, a philosophy embedding a culture of efficiency and continuous improvement, has revolutionised industries worldwide. Its inception within the automotive industry to today’s widespread application showcases its universal benefit across various sectors. When considering Lean Thinking, one can’t help but admire its holistic approach to streamlining operations, enhancing product quality, and boosting customer satisfaction.

Throughout my career, from my initial days as an engineer at a small SME to my role as a corporate executive, I have witnessed firsthand Lean Manufacturing’s transformative potential. My journey into the world of Lean began with a simple yet profound introduction to the concept of Kaizen while working at Linread Northbridge, a precision fasteners manufacturer for the aerospace sector. This pivotal moment sparked a lasting passion for Lean principles that I’ve carried through to every organisation I’ve served (including my own businesses, New Way Growth, FactoryIQ and obviously TCMUK Limited), assisting Manufacturing SMEs in realising their full potential through strategic Lean interventions and comprehensive programs.

The First Step to Lean Success: A Kaizen Event

Reflecting on my first engagement with Lean, a SMED event aimed at reducing a Header Machine’s changeover time from an entire shift to a mere 30 minutes stands out. This experience, under the guidance of a seasoned Japanese Sensei, was not merely about time reduction. It was a lesson in unlocking hidden potential, leveraging precise KPIs, and fostering a mindset geared towards continuous improvement. From relocating machining centers to implementing strategies that yielded savings of over £15 million in the first year, the principles of Lean Thinking have proven time and again that with the right mindset, ‘impossible’ is merely an opinion.

Overcoming the “It Won’t Work Here” Mentality

Resistance to change is a common theme in any organisational transformation. Yet, the principle of marginal gains teaches us the power of incremental improvements. By nurturing a culture that embraces every opportunity for growth, however small, organisations can witness significant advancements over time. The essence of Lean is not in the complexity of tools or techniques but in harnessing the collective knowledge and creativity of its people to drive enduring improvement.

More Than Techniques: A Cultural Shift

Lean Manufacturing transcends mere operational tactics; it represents a fundamental shift in organisational culture and mindset. Its success is contingent not on the size of the company but on the depth of commitment to these principles by its leaders and teams. Engaging closely with the ground-level processes, understanding the real challenges, and courageously tackling the root causes, paves the way for sustainable growth and competitive advantage.

Conclusion: Lean Leadership and Organisational Excellence

The journey towards Lean excellence is ongoing and evolving. It demands a leadership style that is hands-on, empathetic, and visionary. As organisations venture into this transformative path, they unlock efficiencies, eliminate waste, and set new benchmarks of performance. The legacy of Lean is not just in its methods but in the cultural rejuvenation it brings about, fostering an environment where continuous improvement becomes the norm, not the exception.

Lean Manufacturing is more than a methodology; it’s a catalyst for redefining excellence in the manufacturing sector. So, as you delve into the world of Lean, remember, the journey is as rewarding as the destination. Embrace each challenge, celebrate every small win, and continuously strive for a better, leaner, and more efficient tomorrow.

For personalised advice, practical insights, and to explore how Lean can revitalise your manufacturing processes, please feel free to reach out.

0330 311 2820

Miss that moment – and you start to decline.

Posted on by Adam Payne

“There is at least one point in the history of any company when you have to change dramatically to rise to the next level of performance. Miss that moment – and you start to decline.” – Andy Gove

My personal view and experience is that it’s more than one point in time.

SMEs are characterised by their ability to adapt easily to market changes and their lean organisational structure (not as in Lean Manufacturing), which results in a more dynamic environment and a quicker decision making process. Although SME businesses vary widely in size and capacity for growth generally they will all follow a similar path: going from Owner/Entrepreneur with two or three employees to a business aiming for £10m or even £20m per year, and experiencing 20%/30% year on year growth and upwards along this journey. The sketch below illustrates an example of this, showing where most businesses may feel the pinch points of growth at key intersections.

SME Journey and Growth

Zero to £5m

The hard work really kicks in here. This part of the journey is often the one that is the most lonely, but often the most exciting. But it is here that most business owners feel the pains. Because it can be a lonely place, it is easy for owners to doubt themselves, they also don’t know what they don’t know which can be a limiting factor. And as an owner one of the main areas of responsibility is simply getting things done, which means you are working in your business as a manufacturer, and not working on it as a strategic leader.

In smaller SMES, management structures are also small with most owners being very hands-on. People are stretched across all functions all processes. Systems are not in place, IT is minimal or non-existent and there is a lack of standard processes. Utilising the Continuous Improvement and Management graph we can see that all levels are being worked with a very lean structure. Small customer projects, odd-job shop style of working.

SME Zero to £5m

As we get closer to a turnover of £5m, it becomes clear that things need to change. We are then moving from that odd-job, one off customer delivery to a mix of bigger projects, possible increased volumes and an increase in market share from your customers. As we start to scale-up from the initial start-up, decisions have to be made about the organisational structure, the company’s technology infrastructure, its business and marketing strategy, etc. With regard to organisational structure, you might now start to see the requirement for supervisory position(s) to take on more of the owners duties, the labour force growing, new machines, loans, investment, functional departments, Operations, Quality, Sales, Technical, Finance. This is where it can be rise or decline with those decisions. In scaling and growth and the opportunities it also brings its own set of problems, (albeit they are nice problems to have because its growth).

£5m to £10m

IT Systems and Planning may start to become an issue here, Microsoft Excel may no longer be good enough to manage your shop floor requirements (although I have seen £100m business still using excel but it was beginning to creak), and you are likely at this level to be considering MRP/ERP implementations. You may also look at outsourcing some functions, like Sales, Human Resources, Engineering Support, Quality, Quality Accreditation. All this requires a lot of investment in terms of time, money and energy. You need to do your homework to avoid costly mistakes, especially where IT is concerned, but it’s all opportunity.

And this stage, the business owner is now becoming more removed from the day to day operational tasks on the shop floor. This can be a very uncomfortable feeling in one or two ways. Firstly, the owner may want that hands-on role and not relinquish that part. It could be that the business is now at the stage where the owner is stopping it from growing, the entrepreneurial side is restricted as they are tied to the business. There a number of factors and variables in play, and having the right people is key, being a good leader is fundamental (at all stages).

SME £5m to £10m

£10m upwards

Financial Audits are required at this point (although some companies can be exempt if they satisfy certain criteria), so businesses need to be aware of the UK Audit requirements. Similar issues and opportunities still arise, but on a grander scale. Organisational structures are still fundamental, we might now start to see the need for Middle Management. We may also be looking to diversify into new markets, take on bigger orders, and higher volume. From £5m and up, some of your customers may not be the ones you want to deal with now, the one-off, low volume, job shop may not be your ideal customer. You might be seeing more of a need for Product Flow and Cells (Lean Manufacturing is a must from when you first start up), competition is high so you cannot stand still, even if your decision is to stay at a certain level. You will need to be driving for improvements to maintain the status quo, and your service has to be exceptional. Collaboration with a network of Manufacturers and or Partners, in my opinion, is key in this new world, and can bring some fantastic opportunities for growth. Again, IT infrastructure comes into play as the business is getting bigger: more employees, management leadership. The addition of new premises or additional buildings on the same industrial estate (this is where having a world class logistics operations pays dividends in not impacting your efficiency/productivity). The opportunities may now open up bringing the out-sourced services back in house, Sales and Human Resources, etc. At this level, you are likely to be making informed decisions based around data. Strategy alignment throughout the organisation is required, communicated and disseminated so everyone in the organisation knows the direction the company is going in and what the priorities are.

SME £10m upwards

Every business is different. One business’s pinch point may be at £3.5m another’s £7.5m but there will be very similar decisions to be made, but at this level the advantage is that businesses are likely to be able to make these decisions in a more informed way through data. Companies may not achieve sustained profitable growth unless they draft in the specialist skills required at the right time for the business. It’s the maxim that we don’t know what we don’t know. And the best advice is to seek advice from the experts in order to shift the dial in the right direction. This is something we can certainly help with, just contact the number below.

Ask yourself:

How much will it cost you not to resolve the issues that you are currently facing now or in the immediate future? How much will it cost you not to eliminate that pain? What are the lost opportunities on not taking your business to the next level or indeed keeping it at the level you want?

0330 311 2820

Book a Return Call at a time that Best Suits You “HERE”

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.

0330 311 2820

Book a Return Call at a time that Best Suits You “HERE”

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!

0330 311 2820

Book a Return Call at a time that Best Suits You “HERE”

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 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.

 

0330 311 2820

Book a Return Call at a time that Best Suits You “HERE”