January 2005 Pre Dinner Presentaion - January 11,2005
What Can Lean Do for Me and My Organization? By Kelley Buckentine, Deli Express
Kelley Buckentine had a very information, interactive presentation on Lean Manufacturing. She explained how 5S, waste management, and standard work procedures can make Lean Manufacturing work in your organization.
Lean Manufacturing is a customer-focused strategy that can improve quality and processes, while reducing lead-time and costs. This will give your organization a competitive advantage that will result in more sales and profits. It encourages all employees from all departments to become involved in a continuous improvement program.
Lead-time is the accumulated time between the customer placing an order to the customer receiving the product. Reduced lead-time improves quality by reducing unnecessary steps and eliminating scrap. This saves time by making or measuring a product once. Reducing lead-time also involves reducing office paper trail steps.
5S is a five-step method for creating and maintaining an organized, clean, efficient work environment. Take before pictures of cluttered areas, excess product, unorganized workstations, full desk files, etc. Take after pictures of the same areas and also of the accumulated unwanted items. You won’t believe how you could even function before 5S.
- 1. SORT
- - Remove all items from a work area. A work area can be an office desk, closet, weigh station, assembly area, inventory, etc. Move the items but do not throw them away yet.
- 2. SET IN ORDER
- - Return only the items that are needed to do the current job. Put all the extra items not needed for the current job in a storage area. Throw out items that are broken, obsolete, or items that you have been hanging onto for ten years because you might need them someday. Consider safety, ergonomics, and order of steps when returning items to the workstation. Do not just put them back where they were before the SORT started. This is the time to establish the most efficient workflow pattern from receiving WIP to product completion. Small tools can be hung from a board or placed on a table. Make an outline around the part to visually identify it and also label it. An empty outline identifies instantly which tool is missing. If there are multiple work stations that use the same tools, use color coded paint or tape on the tools to further identify which tools belong to each work station.
- Use different colored tape to mark aisles, door swing direction, product placement, WIP storage, equipment, etc. Then label all the areas. Mark and label specific locations for each truck line or courier service. They can tell at a glance if there is a shipment for them, eliminating the need to ask.
- 3. SHINE
- - Keep the workstation clean and organized. Inspect the station daily for misplaced or missing tools. Replenish supplies as needed.
- 4. STANDARDIZE
- - Create a daily or weekly checklist specific to each workstation to assure all items are always in place. Using the weekly checklist along with observation of the workflow will uncover WIP placement errors that can be corrected. Create visual work instructions that show how to do the job. Visual work instructions are photos that show the process steps. Develop error-proofing devices that will sound an alarm if a step is skipped.
- 5. SUSTAIN
- - Senior management should use the checklist to inspect the workstation once a month.
The benefits of a company wide 5S program are numerous.
- It creates a work place that will have the same expectations for all employees.
- There will be better quality because it is now easier to process good product and also to detect scrap as it happens instead of detecting it later.
- Visual standards are easier to follow than written procedures. They eliminate confusion due to languor barriers, personal interpretation, and guesswork. If one employee is on vacation or out sick, another employee will be able to find everything that is needed to do the job.
- 5S creates a safe work environment. There is a place for everything and everything is in its place.
- 5S creates higher employee involvement in their workspace and in the entire organization, which results in higher job satisfaction.
Now that the 5S program is underway, another aspect of Lean Manufacturing is identifying and reducing the eight main manufacturing wastes. The eight wastes are defective products, overproduction, inventory, under utilized people, excess motion, over processing beyond what the customer is willing to pay for, transportation includes people, paper, products, etc, and waiting for decisions, people, or products. The effects of the eight wastes are lost time and money that can never be recovered.
Lean Manufacturing involves identifying value added verses non-value added activities. A value added item are process steps that result in a final product or service made right the first time that customer wants and contracted to pay for. Non value added items are process steps that involve time, space, people, or materials that add to the product cost, but the customer did not want and will not pay for.
Lean Manufacturing works best with standard work instructions. Kelley stated that standard work is using the best combination of people and machines, utilizing the minimum amount of labor, space, inventory, and equipment. Standards are written instructions that allow all people to make the same product right every time. Visual standards are better than written standards.
To start a Lean Manufacturing program using 5S and waste management in your organization create goals with desired time lines and outcomes. The goal should state the before and after such as “reduce lead time from X days to X days, order processing from X hours to X hours, etc. List the costs associated with the process steps it takes to do the job now, describing which are value added and non-value added steps. Discuss how 5S can decrease steps while increasing efficiency. Implement 5S improvement plans in the workplace. Then list the revised process steps and costs. Your goals will be met when you use continuous improvement utilizing lean manufacturing, 5S, and waste management.