To introduce new equipment into a Lean Production System, we need to understand our product value stream which shows how we add value foam the customer’s perspective at each step of the way. Then we can consider where our capacity constraints are; this focusses us on what type of new equipment is needed.

Now we can focus on the transformational steps that occur to our products at that point in the value stream. Are we drilling holes, machining features or welding? With right sized equipment we want to understand each of these smaller steps in the process. The we can consider the simplest piece of equipment to assist the current process.

An example:

If we have a 6 axis CNC mill that takes over shift to complete a batch of parts (we are assuming that setup reduction has been implemented and is monitored and our batch sizes optimised). When we understand the three main processes on the mill (mill flanges, mill edges and drill holes) we can consider moving the drilling operation to another piece of equipment; a “right sized” piece of equipment. This will allow us to complete tasks in parallel and still keep the value stream moving, usually for less initial capital cost,smaller footprint and with the skills you already have across your team.

Alternatively, if we decide to duplicate the 6 axis CNC mill, there are many other factors to consider; the initial cost, cost of maintaining another big machine, skill operators to run it and duplicating a monolith’s footprint.

During the investigation stage, you may also consider conducting a desk top simulate of your value stream. This will help everyone visualise how the new equipment will effect the overall value stream. We need to make sure we don’t create bottlenecks down stream by increasing the capacity of one point by a large factor.

So next time you are deciding on new capital equipment, make sure you are wearing your Lean hat; analyse your values stream, ask “why” 5 times and think outside the box.

For further reading on right sized equipment, here is an interesting article about Boeing’s right sized equipment approach.

“Doing Lean” in your company isn’t a once off activity, like installing a machine. It’s not a process that once it’s “done” that it is static forever. The Lean philosophy contains many simple tools and when all of thees tools are fitted together, like a jigsaw to create your production system, it becomes  a complex array of people, processes, machines and materials.

© Can Stock Photo

As Steven Pressfield points out in “Do the Work“ our human nature is pulling us back; our inbuilt inertia, along with gravity and friction are all trying to stop us from moving and progressing. Even getting started on thinking about trying to implement Lean is a huge leap forward. Once these initial steps are taken and others are engaged and implementation picks up pace, our progress gains momentum. But like any momentum, it can only be continued for so long until another injection of energy is needed to continue.

The challenge with Lean is that is competes with all of the other factors in your business; your time, your resources. And it is easy to think that once Lean is “done” that we can shift our focus to the next crisis. But our lean processes need constant reenergising; adding a little more momentum so that it continues to progress and grow and bring others along with it.

© Can Stock Photo

So rather that worry about how to get lean to stick across your company, ask yourself what will you do EVERY DAY to add energy to your Lean endeavours. How can you ensure that EVERY ONE  across the company is also doing the same – adding energy; completing a small task, reflecting on a standard, looking for a root cause, checking their understanding of a process.

Then your Lean process will flourish. And remember If you aren’t improving, then you are going backwards.

If all the predictions are right, 2012 threatens to be a very tough year for business around the world. TXM Director, Tim McLean, provides some ideas on strategies to survive and prosper in the downturn. more…

Leading a Sustainable Lean Transformation 

One of the biggest problems that companies face is how to sustain lean improvements. Rapid improvement can often be achieved by implementing lean tools, but it takes a change in culture and the everyday behaviours of leaders and their teams to make the lean processes sustainable. more…

Making the Most of Visual Controls

This excellent blog article by Michelle Brown really defines what visual controls are and what they can do for you. Visual control is one of the most important tools in lean enabling the status of production to be observed in real time enabling problems to be seen right away and standardising every day operational decision making. more…

Lean Tools from the TXM Blog – Summary of 2011

This article provides links to articles on our blog covering a wide range of lean tools. Select the links to the lean manufacturing tools you are interested in to learn more from TXM Lean Consultants and bloggers, Michelle Brown and Rob Chittenden. more…

TXM News

Lean for Pharmaceuticals and Food Industries in China 

TXM Consulting Director, Anthony Clyne started 2012 in China with a series of talks about how to apply lean manufacturing principles in food and pharmaceutical manufacturing environments. Anthony presented workshops in Shanghai and Beijing in conjuction with our partners, ISPE, Lean Six Sigma Institute China and 1MFG.com. more…

Check out Our New 5s Pages, Case Studies and other New Information on our Website

The TXM website is constantly being upgraded and improved and now contains a wealth of information about lean. We now have a new page focusing on 5s which you can access from www.txm.com.au/5s or at www.5s.com.au. 5s is a vital foundation tool and the new page now provides an introduction to the TXM Practical 5S approach as well as links to articles and case studies. Our Case Study page now has a much greater range of case studies in implementing lean

TXM Introduces New Lean Supply Chain Simulation at Sydney Supply Chain Management Conference

TXM Director, Tim McLean was one of the speakers at the 4th Supply Chain Management Conference in Sydney on 5 December 2011. Tim spoke provided the audience of Senior Supply Chain professionals with practical lean supply chain solutions to optimise  global supply chains and presented case studies that demonstrated how these concepts could be applied. more…

Anthony Clyne Presents about Lean Manufacturing in a GMP Environment

People working in various GMP environments face common challenges implementing lean tools.  A workshop in Beijing had people from diverse fields as a Stem Cell Laboratory, Biscuit Factory, Pharmaceutical, and a Beverage Bottling Plant.  All had a common interest to share best practice implementing lean manufacturing in a GMP environment. more…

Anthony Clyne (Centre) and Justin Tao (far left) with participants from the Beijing Lean GMP workshop

GMP is Good Manufacturing Practice and is required to manufacture safety critical products.  These factories are highly regulated and demand a high level of cleanliness and microbiological control.

Participants identified the various ways to influence behaviour to achieve a true 5S culture.  The 5s culture is to have cleanliness as a natural part of every task.  This behaviour is learnt as a conscious behaviour but then becomes natural after repetition.

The behaviour needs to be reinforced with tools and processes that support the task of cleaning.

It is not just cleaning but a relentless quest to keep the machines going that differentiates a compliant plant from a world class plant.  Quick change over and successfully reducing downtime are two methods to achieve a world class plant.

Participants were lead by Justin Tao to discuss and share TPM’s role to eliminate unplanned machine stops.  Integrating operator tasks to Tighten, Lubricate, and re- Align  (TLA).

TLA raises the operator awareness of the machine condition.  This attention to detail and knowledge results in small deviations being detected before they become breakdowns.  Packaging machines have many finely tooled moving parts and some of which need to be straightened routinely.  TXM have described this as Re-Align.  Operators are trained by mechanical maintainers to use go / no go gauges and calibrated spacing tools.  These tools ensure the moving parts remain in the centre of their operating range resulting in much fewer small stoppages when applying papers, wrappers, blisters, label position, unit cartons, and box cartons.

What are Tee cards?

Tee cards are cards cut into a “tee” shape to fit into a louvered panel. They are red on one side and green on the other. This allows them to be used as simple, visual reminders of the tasks that need to be completed each day.

After the kick-off of 5S, when the Sort, Set in order and Shine phases are complete, we need to consider which housekeeping activities are needed to standardise and sustain our improvements. The challenge with housekeeping, as we know from our own homes, is that we start the week with good intentions (I will keep my bench clean) but as we get busy, work priorities take over and housekeeping efforts slide.

At other times, each housekeeping task may seem too small to worry about every day, but if we leave all of these tasks to the end of the week, then there is a lot of work to do to return the area to our standard of cleanliness ad it become s a much bigger task. This is where the tee card are really effective.

How best to implement Tee cards?

The best way to implement tee cards and ensure buy-in from our teams is to involve them. Once the first Sort, set in order and shine is complete, list the activities that are needed to sustain the area. This may include items such as:

- empty rubbish bins x2

- check first aid cabinet

- complete forklift checklist, every day

- check oil level in machine

- refill paper in copier and wipe glass

- sweep floor

- brush off benches

Also discuss how often they are needed to be done. Emptying the bin once a week may not be enough, so let’s try to empty it twice a week. Sweeping may only be needed once a week, unless something unusual happens.

Now we have a list of activities, discuss how best to spread them out across the week; bins Tuesday and Friday, sweeping Wednesday, oil level checks Thursday, for example. Write the activities out on each tee card (on both sides) and place them on their set days. As a group, decide if you will set aside 10 minutes each day to complete the 5S activities or leave it up to the people in the area to complete the tasks during the day.

Sustaining 5S actions with tee cards

Add an agenda item to the morning, stand up meetings to review the progress of the 5S tasks. If they are not getting done, consider why; are the tasks too big to get done in the allocated time? Does each team member understand what is needed to complete the task? Is everyone helping out?

Review the tasks after 3 weeks and look at the which days the tasks are begin done on and the size of each task; do they need to be combined (brush benches and sweep) or broken down into smaller tasks?

Tee cards area simple way to sustain housekeeping across our factories and are easily integrated into our Lean Journey.

Branach Manufacturing Grows Profitably

Our very first TAS project was at Branach Manufacturing, the manufacturer of the “World’s Best Safety Ladders”. I recently met with Mike Walsh, the owner of Branach, and they have achieved some impressive results. Over the past three years they have doubled their revenue, while increasing productivity by 50%. Order lead times for customised extension ladders have been reduced from 3-4 weeks to around 4.5 days (despite the rapid sales growth). Most importantly improved business processes (and the skills of their General Manager and leadership team) mean that Mike can now spend most of his time developing the next generation of Branach products, which will help keep this business as the leaders in their field. read the full case study

Sykes Racing Set to Win More Gold

Next year is a big year for TXM’s second TAS customer, Sykes Racing. Based on past history, Sykes can confidently expect one of their rowing boats to add to Australia’s gold medal tally at London 2012. Since Beijing, Sykes has achieved some “gold medals” of their own with a successful move to a new site at Breakwater in Geelong. In the process the Sykes team transformed their production from “static build” to lean “flow” production, halving process lead times. The waiting time to get one of their customised rowing boats has been reduced from six months to their target of 6 weeks, which means a lot less expediting and frustrated customers. Lean standard work as lead to improved quality (already the best in the world) and reductions in labour of up to 120 hours per unit. These improvements have enabled the business to grow and keep the Chinese at bay despite the record highs for the Australian dollar. read the full case study

Hilton Keeps Trucking Along

Hilton Manufacturing are one of Australia’s largest sheet metal processors. Hilton are the leading supplier of fuel tanks, bull bars and other sheet metal components for the heavy truck industry as well as making a huge range of components to other industries including caravans, public transport and healthcare. It was finding ways to manage this complexity and still meet the demanding “just in time” supply requirements of the truck industry that lead Hilton Managing Director, Todd Hartley, to seek out the assistance of Enterprise Connect and TXM. TXM worked with the Hilton Manufacturing team to halve process lead times, improve the flow of components and subassemblies and improve the use of space. One TXM Kaizen event alone freed up around 1000m2 of space which was subsequently used to fit in an extra production cell for a new product. Despite a GFC driven slow down in the truck industry, Hilton have leveraged their improved processes and their outstanding customer relationships to grow their business significantly. TXM is now working with the Hilton plant in Queensland and have already made significant improvements in lead time and productivity for fuel tank manufacture there.

About TXM

TXM are now one of Australia’s leading Lean Manufacturing Consulting companies, helping companies in Victoria, New South Wales, Tasmania and Queensland to transform their operations through lean enterprise.

At TXM we are passionate about manufacturing, and especially SMEs. Our team are experienced and successful manufacturing people first, consultants second. We understand what it is like to try and grow returns in an environment of ferocious global competition, because we have all experienced it first hand. This means we have a practical and realistic approach and an absolute commitment to delivering results that last. We bring to your clients considerable manufacturing experience from a wide range of industries as well as a deep understanding of lean enterprise.

As a result TXM has an unparalleled reputation for lasting improvement and outstanding return on investment.

To find out more about the results we deliver for SME clients visit more case studies on our website www.txm.com.au:

• Larnec Doors – Swan Hill, Victoria
• Server Racks Australia – Queanbeyan NSW
• Harvest Moon – Devonport, Tasmania

To learn more about lean subscribe to our Blog or our quarterly newsletter.

To find out more about our customers go to our Customers Page.

What is a Certificate in Competitive manufacturing?
This course is the nationally accredited, TAFE level training, covering a range to subjects around all of the lean philosophy and tools. These subjects are called “Units of competency” and include all aspects needed for that topic, as well as including the employability skills that focus on the needs of the employer.

To complete a Certificate III eight subjects needs to be completed and ten subjects are needed for a Certificate IV. The subjects are selected in conjunction with you and TXM, while ensuring the make up of the subjects complies with the Competitive Manufacturing Training Package guidelines. Our TXM consultant can suggest the best subjects to suit your company and the projects that will give you the best business outcomes.

Why a Certificate in Competitive manufacturing?
The main reasons a company will undertake formal Lean qualification is that is allows the extension of the current Lean projects and allow many more propel to get involved. The benefit of continuing with TXM is the consistency in consultants, who already know your business, and our approach; our approach doesn’t just offer classroom training. As with all of our business improvement projects, a component of class room theory is mixed with practical demonstration and working on projects. These projects have a direct benefit to your company.

When would be the best to start a Certificate in Competitive Manufacturing?
We find a good time to undertake the certificate programs is after an initial improvement project. It is an opportunity to train more people across the company and have many more projects undertaken. This helps to spread the lean deployment more quickly.

For more information of the TXM certificates in Competitive Manufacturing, give Tim or Michelle a call.

Attendees at the TXM Lean Pharmaceuticals Workshop in Shanghai on 11 January 2012

TXM Partnered with the International Society of Pharmaceutical Engineers China, ISPE, who are the peak body for pharmaceutical industry professionals. The events were also actively supported by Lean Six Sigma Institute and 1MFG.com, who both actively promote the cause of lean and operational excellence in China.

Anthony and Justin drew on their practical experience to outline the approaches needed to make lean implementation successful and sustainable in the unique environment of a hygiene-critical pharmaceutical or food operation. These events follow on from Tim McLean’s well received workshop on Lean for Process Industries in October 2011 and emphasises TXM’s unique skills and successful track record in applying lean in manufacturing beyond its traditional automotive and electronic mass production base.

Feedback from the events was extremely positive with one participant rating the Pharmaceutical event “11 out of 10″! All participants were able to actively participate and had the chance to ask Anthony and Justin a wide range of questions. Watch the TXM Newsletter and TXM Website for more TXM Lean Manufacturing events in China and Australia.

Tim then engaged the audience in a new simulation game that demonstrated the difference between traditional, purely forecast driven replenishment and lean supply chain approaches in extended supply chains. The simulation clearly demonstrates how using lean approaches can reduce lead time, reduce inventory and improve customer on-time delivery in extended supply chains. In particular it shows how increasing replenishment frequency and using an “every part every shipment” approach can dramatically reduce supply chain risk without adding logistics cost.

To learn more about applying lean in the extended supply chain, look at the the following articles and case studies:

• Lean Manufacturing – Turning the Tide of China Sourcing Cost Increases – June 2011 (44)
• Lean International Supply Chain Article (57)
• Schuetz Case Study (24)

Lean is Not a Strategy

I often hear Managers tell me that their strategy is to implement lean. My response to this comment is “Why?” Lean implementation needs to be driven by a clear strategic goal. Lean may provide the means to achieve that goal, be it to reduce lead time, increase agility or reduce costs, but some companies will state that “implementing lean” is their strategy. If Lean is the strategy then how is success measured? Usually by measuring the extent of the roll out – number of people trained, number of projects, this may or may not relate closely to the overall business objectives. However if lean is driven by a strategic goal, then success will be measured by the achievement of that goal.

There is no Use Having a Strategy if No One Knows About It

The Production Manager at a TXM Client presents an A3 plan for a Plant Re-Layout to his Peers (At TXM we often use larger sized paper to teach A3, but this will be converted to A3 Size when finalised)

I recently reviewed the excellent business strategy of a major company. Unfortunately discussions with middle managers revealed that few were aware of it and the strategy certainly wasn’t driving action in the business. Once you have decided the strategic goals then you need communicate it. The lean policy deployment process (Hoshin Kanri) using the A3 plan is a very effective way to cascade the strategy through your organisation and ensure alignment. It is important to realise that Hoshin Kanri and A3 planning is a process and a way of thinking, not just a report template. Our blog on starting A3 plans is a good start. Also Pascal Denis’ book, “Getting the Right Things Done” available at www.lean.org.au/store. gives an excellent introduction to lean policy deployment.

 Walking the Talk – Leader Standard Work

Successful implementation of lean requires cultural change and culture only changes when leaders demonstrate the change through their own actions. This means practical behaviour change in everyday interactions with your team. Standardising routine leadership tasks helps build good habits and ensures a consistent approach by leaders. With leader standard work the aim is not to set a fixed schedule for every leader every day, but rather to set a few fixed events e.g. regular standup meetings and a list of routine tasks that must be completed regularly. These can include regular walks through the workplace, checking key metrics or processes and carrying out key process audits such as 5S audits. The daily standup meeting is a critical event at every level of the organisation. This should occur at a fixed time every day, be carried out in or near the workplace and be limited in time (usually no more than 15 minutes). Standing up reduces the tendency for everyone to get too comfortable. The meeting provides an opportunity to quickly review yesterday’s performance, discuss the issues for the coming day and solve problems. It can help to have a standard agenda or checklist to follow on these meetings – just don’t make it too long and avoid loading it with issues that don’t directly relate to delivering value to the customer (although you may want to include safety). In terms of the daily leader tasks, a red-green task board (or Kamishbai board) can help leaders remember the tasks they need to complete each day and the coloured cards provide a great visual control.

Mind your Language

A Team Stand Up Meeting Underway at a TXM Customer

Lean is a way of thinking and language is important. A key starting point is behaviour when things go wrong. Make sure that, as a leader, you are asking why the problem occurred, rather than just focusing on who is at fault. Problems should be an opportunity to apply problem solving techniques and learn about the process. Resist the temptation to apply a quick fix, get the process going and move on to the next problem. Taking the time to solve the problem and address the root cause will take longer in the short term, but will mean the problem should not return – saving time in the long term.

Feedback is also vital to all of us, so when your team is measuring performance it is essential that you notice and comment on the performance – praising good performance and asking “why?” when performance fails to meet targets. Likewise visual controls are designed to communicate abnormalities in the workplace and inform decision making. If you fail to notice the abnormal situation or fail to take the standard decision (or worse – you over-ride the standard decision) then expect the visual controls to fail. An example might be a first in first out lane. In one client we had a manager who constantly pushed jobs in the front of the queue and also refused to stop production upstream of the lane when the lane was full. He said that he was committed to FIFO, but his actions sent a different message. As a result the FIFO lane did not work until his leadership behaviours changed.

As a former manufacturing leader, I know it is not easy to meet all the expectations placed on you. Perfection in leadership is neither necessary or achievable – you dont’ need to be Winston Churchill or Nelson Mandela to manage a factory or a department within a factory. However there are some disciplines you need to apply to yourself in order to achieve lean success. They are not complex, but they need to be followed constantly and consistently.