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Lean
Business techniques have revolutionised many organizations
in the last 20 years.
Companies of varying backgrounds
can be found implementing Lean as a vehicle
to improve product quality, delivery performance
and to reduce cost. In parallel many organisations
also find themselves reaping the benefits of
increased employee satisfaction through the
true empowerment Lean provides.
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Lean is a holistic approach that
enables businesses improve their profitability
and competitiveness through the identification
and systematic elimination of wasteful practices
and behaviour.
It improves business processes by
focusing on the elimination of all non-value-added
activities and creating of a true flow;
efficient and effective throughput of product
or service based on the customer’s requirements.
Most business processes are unbalanced,
driven by batch thinking, whether in production
of administrative operations, and as a result
they create waste in the form of poorly
utilised resources, excessive inventory,
poor quality, double handling and ultimately;
dissatisfied customers and high costs.
Applied to the office, this focuses
on reducing total cycle time—the time between
orders being placed and when payments are
received. For example, over 40% of total
cycle time occurs at the front end of a
process. Tasks such as taking orders, confirming
credit, designing parts and ordering materials
eat up approximately 42% of a typical company’s
total cycle
A Lean business is about being able
to do more with less and get more with less
ultimately affecting the bottom line in
a positive way.
A formal, but simple definition of
Lean Business is:
“A systematic approach to identifying
and eliminating waste (non value-added activities)
through continuous improvement and producing
only what customers need when they need
it.”
It can be applied to all business
processes, whether in manufacturing or service
and administrative areas, and generates
benefits which include; shorter lead times,
lower cost, reduced space used and increased
customer satisfaction.
The roots of lean are in the work
of Taiichi Ohno, who was the architect of
the Toyota Production System after the 2nd
World War. These simple but effective techniques
are now being widely adopted across all
industry sectors and operational processes.
Typical benefits our clients
achieve are;
• Increased sales and profits
• Increased productivity
• Reduced lead time and cycle time
• Reduced inventory
• Increased capacity
• Improved quality and on-time delivery
• Increased customer and employee satisfaction
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Value Stream Mapping follows the
material and information flows throughout
the Value Chain and depicts these flows
in a visual way. It is very simple for individuals
to understand through the creation of this
map, where waste exists in the process,
and the causes of these wastes. Non value
added activities such as delay, excess stock,
work in progress and long lead times, will
all be highlighted.
Value Stream Mapping is a simple
and visual tool that depicts the way businesses
currently operate “The Current State Map”
and how they might operate after improvement
“The Future State Map” Based on your value
stream map, you can streamline work processes,
thereby, cutting lead times and reducing
operating costs.
Applying lean techniques to the Current
State Map allows the Team to develop a shared
Future State Map. From these maps a robust
implementation plan is developed allowing,
scarce resources to be aligned and deployed
in the achievement of common objectives.
The development of the plan will also identify
any shortfalls in the required skills and
knowledge.
Value Stream Mapping encourages organisations
to look at their entire operation to seek
an integrated Future State Map rather than
cherry pick what are perceived to be the
areas of greatest improvement opportunity.
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Single Minute Exchange of Die (SMED),
or Fast Changeover, is as the name suggests
the method by which equipment can be changed
from one product to the next in the most
effective way, and in the shortest possible
time.
Single Minute Exchange of Die is
an objective whereby all changeovers are
completed in a single number of minutes
(less than 10). SMED. is an integral part
of Total Productive Maintenance where one
of the six major losses is changeover time.
Manufacturers often produce products
in much longer runs than their customers
actually require to achieve economies of
scale; this is also known as producing in
economic batch quantities. The economic
batch quantity refers to the ratio between
actual production time and changeover. Obviously
the longer the production run in relation
to the changeover time, the more efficient
the process would appear.
The problems with large batch
manufacture are:
• Businesses are inflexible; it is
uneconomic to change products over at short
notice.
• Large amounts of stock or work in progress
are created, and have to be stored.
• Stock can easily become damaged or obsolete.
• Large runs promote the problem of undetected
defects.
The rationale behind SMED is that:
if changeovers can be carried out in shorter
times, then production runs can be reduced
accordingly, reducing or eliminating all
of the above problems. By implementing SMED
organisations can manufacture products at
times, and in quantities, much closer to
what, and when, their customers require
them.
We have extensive experience helping
clients implement SMED often the seemingly
impossible is achieved, with typical changeover
reduction activities resulting in a reduction
in tool change times, of between 50 & 90%
Satisfying customer demand from the
manufacturing process rather than from stock
has a significant impact on the levels of
finished goods stock and its associated
cost. Often warehouses previously required
for the storage of stock can be redeployed
for use in activities that actually add-value
to the business rather than act as a drain.
Benefits of SMED Summary:
• Increased flexibility
• Reduced inventory and related storage
costs
• Reduction in waste
• Reduction in start-up losses
• Improved equipment utilisation
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The 5S system is a methodical approach
that enables teams to organise their workplace
in the safest and most efficient may. The
first stage involves removing all unnecessary
items from the workplace; what is left is
than placed in a permanent location which
is optimised for how, where and at what
frequency the item will be used.
A policy of inspecting and repairing
equipment (service and / or production)
as part of a cleaning regime is then undertaken
with the entire process being managed through
the use of team generated audit documents.
A significant part of the workplace
organisation process involves the use of
visual tools where everything that takes
place within the workplace is easily understood
by everyone, including strangers to the
process. Visual management encompasses the
fundamentals such as clearly defined gangways,
isle and corridors, where it is safe / unsafe
to move and store, protective equipment
requirements, product description, equipment
and its performance, through to more detailed
issues such as: performance targets, customer
feedback, improvement activities, staff
skills etc.
Although on the surface this may
seem a lengthy means of creating a tidy
work area, the 5S system should be seen
as much more, generating a real return to
organisations in many areas.
Benefits of 5S / 5C Workplace
Organisation:
• Improvement in health & safety
• Improvement in productivity & quality
• Reduction in waste
• Employees having a greater sense of ownership
• A solid foundation upon which to build
continuous improvement
• A better working environment that keeps
things clear and simple - when things look
right, they often are. 5S stands for:
| Japanese |
Westernised |
Meaning |
| Seri |
Sort |
Clear Out |
| Seiton |
Straghten |
Configure |
| Seiso |
Sweep |
Clean and Check |
| Seiketsu |
Standardise |
Conformity |
| Shitsuke |
Systemise |
Custom and Peace |
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When processes are balanced, the
product flows continuously and customer
demands are easily met. Cellular/Flow Manufacturing
is the linking of manual and machine operations
into the most efficient combination of resources
to maximise value-added content while minimising
waste. The most efficient combination implies
the concept of process balancing. Only in
a balanced process will the product continually
flow. As a result, parts movement is minimised,
waiting time between operations is reduced,
inventory is reduced and productivity increases.
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Pull Systems/Kanban control the flow
of resources in a production process by
replacing only what has been consumed. They
are customer order-driven production schedules
based on actual demand and consumption rather
than forecasting.
Implementing Pull Systems can help
eliminate waste in handling, storing and
getting your product to the customer on
time, every time.
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Poka Yoke, or Fail-safing, is a technique
used in making the integrity of a process
more robust and is often described as error
proofing. Implemented correctly, and comprehensively,
Poka Yoke literally means that the process
in question is incapable of generating a
quality problem.
The process is simple and is often
used in conjunction with team-based problem
solving as part of a permanent corrective
action.
In today’s business environment customers
expect and demand excellence. Most quality-focussed
individuals will recognise that 100% inspection
does not generate 100% quality. Even 200%
inspection (doing the job twice) still only
secures around 80% quality. Therefore it
is imperative that the process is designed
in such a way that it is only possible to
make perfect quality outputs.
The fundamental objective of Poka
Yoke is to shift the emphasis from post-production
inspection to detecting the actual error
or root cause that can lead to the defect
being produced. After identification of
the root cause, a countermeasure is developed
that will prevent the recurrence of that
particular failure mode. This countermeasure
will be in the form of a physical change
to the process; such that no matter what
takes place the specific failure will be
prevented from reoccurring.
By continually applying Poka Yoke
to the process the entire operation will
eventually be incapable of generating any
failure. In some complex operations there
may be many instances of Poka Yoke such
that the overall integrity of the process
is secured.
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Kaizen is an intensive and focused
approach to process improvement.
Kaizen, (kai – zen) are Japanese
words that literally translates to good
change, which in the West we know as Continuous
Improvement. The principle of Kaizen is
to empower many people to make relatively
small, but good, or positive changes within
their own area of expertise. This is in
contrast with major changes conducted by
third parties, or relatively small numbers
of individuals who are often detached from
the process.
Implementing a culture of Kaizen
or Continuous Improvement is a holistic
process that requires the commitment and
support of management and the active participation
of the entire workforce.
Individuals need to understand and
be accountable for the local key performance
indicators attributable to their specific
area of the business and aligned with corporate
goals. Therefore, they contribute towards
overall organisational success.
The overall objective is to establish
a culture where the business is divided
into autonomous areas of excellence with
their own process measures and Kaizen improvement
programme, all contributing to overall organisational
goals and success.
The results are real-time with implementation
occurring within one week. Not only will
you see immediate improvements to your process,
you will also develop a list of the improvement
opportunities that others can investigate
and implement also. Kaizen will provide
your company with immediate tangible results,
motivation and ongoing continuous improvement.
Typical Kaizen tools and
improvement techniques include:
• Process measurement and analysis
• Visual management
• The Deming wheel of improvement - plan,
do, check, act
• Waste elimination
• Zero defects
• Total Productive Maintenance
• SMED. Single Minute Exchange of Dies
• Kanban & Just in Time
• Line/process balancing
• Poka yoke
• Team building
• Problem solving
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