VISUAL CONTROL AND LEAN MANAGEMENT PRACTICES (KB 9/7/16)

Visual Control

Action is driven by what is observed

What makes a good visual?

Simple (easy to understand by everyone)

Visible (by everyone)

Recognition (color, shapes, standard, familiarity)

Quick interpretation (easy to find necessary information)

Capture performance data (abnormalities, misses, defects, interruptions, failures)

Preventative Approaches (anticipating problems)

Communicate Process Status (normal/abnormal)

Visual Control

Visual Control (5S–Zones/Labels, orderliness for flow)

Visuals help identify normal from abnormal (Mann, 2005)

“An organized, orderly, and clean workplace is a safer place to work…Better organization can help you position items to reduce strain from reaching, bending or lifting, and also help you use and store dangerous chemicals safely…Cleaning and inspection will reduce unplanned downtime by enabling you to spot equipment problems before they turn into

breakdowns” (PPDT:”The 5S System”, 1997, p. 7).

KEY: To reduce waste, implement flow

Moving Product

Batch- Make many, move many (typical of a push system)

Continuous/one piece flow – make one move one, sequential

FIFO Lanes- First In First Out, inventory buffer where continuous flow cannot be achieved

Supermarket- Pull system, supply buffer where continuous flow cannot be achieved (may incorporate FIFO)

Moving Product (Push vs Pull Systems)

PUSH

Traditional practice

Forecast Scheduling

Production batched & stored

Inventory - used when needed

Controlled by work orders & schedules

PULL

JIT practice

Demand Scheduling (Pitch)

Production = Demand

Parts produced as needed (to order)

Parts are produced only when the next workstation in the structured flow production system indicates when parts are needed, hence “pulled through the system”

Controlled by Kanbans &/or visual control (FIFO, supermarkets)

Most successful companies have both push/pull in their system

Waste Reduction: Kanban

Kanban is another tool that is used to control the amount of waste produced by a system (Hernandez, 1989; Hirano & Black, 1988; Kalpakjian &

Schmid, 2001; O’Grady, 1988).

Systems can operate with two cards, production card and conveyance card (or other signals). Cards authorize production or movement of parts. Some systems use one card where others do not require any cards. Without authorization, no work is necessary. Cards are passed from the END of production system and PULL the work from previous stations.

TRIGGER

Goal is actually to eliminate need for cards – to make production intuitive (through visual control)

Kanban can identify bottlenecks and other problems in the production system (O’Grady, 1988).

Kanban is simply a demand signal from the customer to authorize the beginning of work. Kanbans control work-in-process, help to regulate product lead times, and facilitates immediate feedback on abnormalities (Feld, 2000).

The Kanban system ultimately creates flow production and eliminates inventory and overproduction and exposes waste (PPDT:”Kanban”, 2002).

Kanban Cards

Kanban Replacement

Kanban Systems (“hand-off” tickets)

Inventory Replenishment Systems

Production Authorization (trigger)

Other alternatives: Standard work with ….

RAG Systems (Red, Amber, Green)

FIFO Systems (Flow control)

Supermarket Systems (Inventory buffer)

Pitch Boards (Color-coded signal board)

Production Status

Sizing Supermarkets (some items considered)

Product demand

Product size

Supplier relations

Space available

System replenishment time

Product complexity

Cost (product/material cost & risk associated)

Alternatives (to visual control)

Policing inventory (checking/recording status)

Faith in accurate schedule/inventory control system

Fire-fighting (managing problems as they arrive due to poor scheduling/inventory management)

Ignoring flow importance

Allowing activities to be separate rather than intertwined

System = Coordination

A Quote to Remember

Continuous Improvement has a beginning…

but has no end

“You can’t improve what you don’t measure”

Role of Standards

Baseline for improvement activities: If no standards, cannot measure effectiveness or improvement

Continuous improvement relies on measuring against standards No standards = no way to determine if you have improved!

“…continually improving the standards is the path to reliable methods – the effective and efficient sequence of operations that is a key component of standard work” (PPDT: “Standard work”, 2002, p. 4-5)

StandardsCharacteristics:

“Standards must be specific and scientific” (based on facts, not guesswork)

“Standards must be adhered to” (consistently followed)

“Standards must be documented and communicated so that people will know what they are and can follow them”

(PPDT: “Standard work”, 2002, p. 2)

Standards Rule, example – provides clear expectations

Require proof/facts

Standards are ever changing (if changes in process yield better results, then standards change for the purpose of improving the process)

Apply to:

1. Product specifications (quality in products – defect elimination)

2. Process analysis (eliminating process waste)

(PPDT: “Standard work”, 2002)

PROCESS Standards

Procedures, Sequence of steps to do a task (WHAT & HOW)

Tools:

Visual instructions with text

Pictures with arrows

Color coding for emphasis

OPERATIONAL Standards

Flow of operations in a cell, at a site, with order of operations (WHAT with WHEN)

Tools:

Maps with routes

Directional arrows and numbered activities

Color-coded zones for workers/activities - will indicate flow problems

Safety/quality checks

Pitch boards specifying activity times (from takt)

MANAGEMENT Standards

Defining normal and putting into place preventative measures for abnormal (WHAT with WHEN)

Tools:

Flow/Decision diagrams

Steps/Procedures

Metric audits to sustain

Mechanisms that make first-line management decisions without seeking management intervention (standard work)

Standardized Work

Dennis (2002) describes standardized work as “the safest, easiest, and most effective way of doing the job that we currently know” (p. 47).

“Standardization identifies standards for every operation and supports adherence to those standards until the next phase of improvement activity occurs” (PPDT: “Pull production”, 2002).

Hirano & Black (1988) explain that standardizing work can maintain good flow.

Determining best practices, reducing shift to shift differences

Standardized Work (applies everywhere)

Harry and Schroeder (2000) explain that best practices should be standardized, and that standardizing methods used to correct problems will prevent problems from reoccurring. This will also allow methods to be transferred to other functions of the organizations.

“Standardization is the practice of setting, communicating, following, and improving standards. Manufacturing processes depend on standardization. It promotes consistency through uniform criteria and practices” (PPDT: “Standard work”, 2002, p. 3)

Mather (1988) explains that standardizing products and processes can help with forecasting (leads to predictability).

Effective Standardized Work

Uses checklists to measure

Uses regular audits to sustain

Uses visuals to communicate

Is performed at all levels (operator operations)

Includes planning for both normal and ABNORMALconditions

Improve process Then standardize

Reactive companies rely on managers to fix abnormalities when they occur.

Good companies have a plan to fix abnormalities when they occur.

Great companies fix abnormalities before they occur.

Standardized Work (Maintaining Flow!!)

Leader standard work = first line of defense for focus on process (Mann, 2005)

Kevin Duggan explains that implementing standardized work for both normal and abnormal conditions is the best way to ensure good flow (personal communication, 2008).

Demand/Sales = 70 products/day

Total Production Time Available = 420 min/day

Takt time = 420 min/70 p = 6 min/p

(have to make product every 10 minutes to meet customer demand)

Hourly Pitch = 60 min/takt 10 min/p = 6 (we supplying enough work to system to make 6 products every hour)

Lean Production

Takt = Customer demand rate – basis for the rate of production (heartbeat of production)

Pitch = Interval of time to pace production, multiple of takt - Provides opportunity to recover from abnormal/unstable condition (Mann, 2005)

Maintaining Competitive Advantage

Maintaining Flow of Operations - Coordination

Knowing Purpose/Role

Education of everyone

Understanding & Communicating Metrics

Having Future State (direction) with a plan (follow through)

Valuing Everyone in system

Implementing systems models – Continuous Improvement

System Cancers (What is NOT Lean)

Meetings for troubleshooting problems – Retrospective focus discussing old data

Managers make decisions to fix problems to meet schedule (schedule = result, making decisions = process)

Protecting a culture of old habits: ‘We do that this way because we have always done it that way’

Making improvements to a system (e.g. 5S, SW) and believing you have achieved lean, thinking you are done –things go wrong in lean systems too

(Mann, 2015)

Change Barriers

No/improper instruction

Organizational apathy - No incentives

Lack of accountability

No management support (prioritization, resources, ownership)

Failure to measure (metrics)

Failure to align with strategic objectives

Un-sustained/Isolated improvement activities

Retrospective – look to past for future answers

Process Focus = Change becomes habitual

Lean Management

Do not target ‘Culture’ for change target management (culture is a result of management system)

You’re 20% complete with new layouts, establishing flow, pull signals, pacing production, standardized work (LHF) - Physical

The other 80% comes from a process focus strategy where results take care of themselves – Management support

(Mann, 2015)

Lean Management

“As you make improvements to the process, you should expect improved results” (Mann, 2005, p. 9)

Anticipate problems before they occur (normal/abnormal)

e.g. People = Variation

e.g. Automation = Maintenance & $

e.g. System without discipline = Chaos

Production leaders train and/or monitor/improve processes

Diagnose and eliminate/design out root causes of problems (use standardized work)

(Mann, 2015)

Lean Management

Law of entropy – “…organized systems tend to move toward states of increasing disorganization” (Mann, 2015)

Checklists, production tracking charts, posting standard work

1. Have to be in place

2. Have to be monitored/ensured they are used as designed

Lean Management supports a Problem-Resolution Model

Lean Management: ProblemResolution Model

Visuals (N/A, misses) – RCA initialized

Tasks (assignments, countermeasures implemented)

Follow-up (reports on effectiveness of C.M.’s)

Standard Work

Standard Work

ABNORMALITIES? Failure / Non-conformance in information, material, product,

people, machine, process, system (cosmetic, functional, procedural, policy, design)

Amount / Levels (conditions, information, material, people, orders, knowledge)

Schedule (interruptions, time delay, sequence)

Omission (missing information, steps, data, knowledge, parts, tools, equipment, personnel)

Safety (injury producing, environmental)

Geographical (location, placement, or delivery error)

COUNTERMEASURES?

Good communication (visuals, pictures, clear instructions)

Decision Logic (if-then scenarios)

Flow strategies (layout, balancing, sequencing, combining, leveling)

Quality checks or audits

Design changes (product, process, system)

Education (training, cross-training)

System approaches (DMAIC, PDCA, RQI, RCI, RIE, MDI, Gemba)

STANDARD WORK

Standard Work Questions

What is normal? (the target/standard)

How is an abnormal condition recognized?

How are leaders informed about the abnormal condition?

How is the abnormal condition documented?

How is action for a resolution process triggered?

How is the abnormality resolved?

What prevents the abnormality from reoccurring?

How is performance of resolving abnormalities measured?

Company Transformation Levels

If you don’t have quality, you can NEVER achieve flow. If you don’t have quality and flow, there is nothing to sustain.

Level 1: Quality Level

Stable, controlled, and predictable

Processes

Level 2: Flow Level

Controlled processes connected to

together in flow

Level 3: System Level

Checks/Audits/Communication to

ensure process flow

Support Support

Quality Strategies

FIREFIGHTING

Management Driven: “I think,” point-based,

loudest, chase problems – hope for solutions

(Reactionary)

ROOT CAUSE ANALYSIS

Data Driven: Pareto & Ishikawa, Check sheets

(Reactionary movingtoward Preventive)

CRITICAL PROCESSES

Business Driven: Process control, SPC, PM,

Failure Modes, DOE, VOC, Kano

(Proactive/Preventive)

Management Driven

Management or System Driven Systems

Driven

System-Driven Model

Why?

Process thinking

Prevent loss of (tribal) knowledge

Capture ideas and good practices

Prevent system breakdown through detailed documentation

System-Driven Model

Why?

Pursue continuous improvement

Transition managers to growth roles

Anticipate problems before they occur

Alignment

System-Driven ModelWhy?

Management-Driven models are prone to failure due to a myriad of change barriers!!!

System-Driven Model: HOW?

Upper management support

Standards

Measures

Communication

Systems Model (Sharing Vision)

AssociatesLeadersManagers

Do managers clearly identify business

objectives, provide vision to achieve, and

convey the Key Performance Indicators?

Extrapolate policy deployment into actionable tasks

IMPLEMENT POLICY

DEPLOYMENT

NO

YES

Do leaders teach and align to the vision? Do

they provide the management tools, training/instruction

necessary to achieve business objectives?

Are the associates aware of the vision and

systems that have been put into place? Are they

engaged and motivated?

NONO

YESYES

Need awareness orData interpretation

AWARENESS TRAINING PROGRAM

Create future state vision and implement

dashboardsCAPTURE & DOCUMENT

Bu

sin

ess

Gro

wth

Systems Model (tell story)

Associates Leaders Managers

Do associates identify and record

problems/fixes? Do they document data? Do they contribute ideas to solve

problems? Audit regularly?

Need standard work for associates

IDENTIFY, RECORD & CONTRIBUTE

NO

YES

Do leaders capture and document solutions for

problems? Develop steps to eliminate

problems in future? Update site boards?

Audit regularly?

Measure costs of problems? Design and

implement training solutions to reduce problems in future?

Make decisions based on data? Audit regularly?

NONO

YESYES

Need standard work for managers IMPLEMENT

TRAINING & PS SOLUTIONS

Need standard work for leadersCAPTURE,

DOCUMENT, COUNTER & FOLLOW-UP

Bu

sin

ess

Gro

wth

References

Degarmo, E. P., Black, J. T. & Kohser, R. A. (2003). Materials and processes in manufacturing. Hoboken, NJ: Wiley.

Feld, W. M. (2000). Lean manufacturing: Tools, techniques, and how to use them. New York: St. Lucie.

Hernandez, A. (1993). Just-in-Time quality: A practical approach. Englewood Cliffs, New Jersey: Prentice Hall.

Hernandez, A. (1989). Just-in-Time manufacturing: A practical approach. Englewood Cliffs, New Jersey: Prentice Hall.

Hirano, H. & Black, J. T. (1988). JIT factory revolution: A pictorial guide to factory design of the future. Cambridge, Massachusetts: Productivity Press.

Kalpakjian, S. & Schmid, S. R. (2001). Manufacturing engineering & technology. Upper Saddle River, New Jersey: Prentice Hall.

Majima, I. (1992). The shift to JIT: How people make the difference. Cambridge, Massachusetts: Productivity Press.

Mann, D. (2005). Creating a lean culture: Tools to sustain lean conversions. New York: Productivity Press.

Mather, H. (1988). Competitive manufacturing. Englewood Cliffs, New Jersey: Prentice Hall.

O’Grady, P. J. (1988). Putting the Just-In-Time philosophy into practice. New York: Nichols Publishing.

Parks, C. M. (August 2003). The bare necessities of lean. Industrial Engineer.

Productivity Press Development Team. (1997). The 5S system: Workplace organization and standardization. Portland, Oregon: Productivity.

Productivity Press Development Team. (2002). Pull production for the shopfloor. (2002). New York: Productivity Press.

Productivity Press Development Team. (2002). Kanban. (2002). New York: Productivity Press.

Productivity Press Development Team. (2003). Identifying waste on the shopfloor. (2003). New York: Productivity Press.

Schroeder, R. G. (2008). Operations management: Contemporary concepts and cases. New York: McGraw-Hill Irwin.

Swanson, C. A. & Lankford, W. M. (1998). Just-in-Time manufacturing. Business Process Management Journal, 4, 333.