Management

Lean certificate

Jan 11 2012

Certification, shmertification!

Several of the comments on Six Sigma R.I.P.   touched on certification. With the belt system, this issue is of course central to Six Sigma, and, with Six Sigma on the Lean bandwagon, is merging with that of Lean certification, as evidenced in plant Lean champions who introduce themselves as Black Belts.

In his comment, R. Kester said the following:

Certification is the accepted way to communicate to others that you have successfully studied and can apply the concepts and tools of your profession (CPA, MD, RN, PE, etc.).

It is true that you want a Certified Public Accountant to help with your taxes, and that, if you go to a clinic, you don’t want anyone to mess with your health who doesn’t have the proper credentials posted on the wall. On the other hand, if you buy a painting, you usually don’t care whether the artist learned the craft in a school of fine arts or by spraying city walls: the paintings tell you all you need to know. There are also fields where certification exists but is not necessarily sought by all. For example, many university engineering departments seek ABET (Accreditation Board for Engineering and Technology) certification, but some don’t, such as Electrical Engineering at MIT, UC Berkeley, or Stanford. Their own brands are more prestigious and better known than ABET.

In the continuum of certifiable human activities, where does Lean sit between MDs and CPAs on one side and artists on the other? Lean experts sell their services to businesses, not consumers, and the primary use of certification is as a job applicant filter. To a recruiter with no personal knowledge of Lean and 100 resumes to review, the absence of a Lean certification is quick way to dispose of 80%. But what guarantee does the Lean certification give  that the surviving 20% are the best candidates?

For a certification process to achieve this result, there has to be a consensus on a body of knowledge (BOK) and on institutions qualified to certify proficiency in its application. Having doubled life expectancy in 200 years, modern medicine is a credible BOK. We know its theories are sound because they prevent, cure or control many diseases. Tax law is different, in that it is a set of rules defined by people for people to follow, like the rules of poker.  Outside of a specific human society, there is no corresponding physical reality. The difference between the two was dramatized in the library scene in  The Day After Tomorrow: the coming of a new ice age had made the tax code fit for burning, but medicine had retained its relevance, as seen when the heroes used a medical book to save one their own (See Figure 1.).

Figure 1. Burning the tax code to survive in a new ice age

In that it affects the physical reality of factories, Lean is more like medicine than tax law. However, besides the absence of consensus on a  BOK, Lean manufacturing differs from medicine is in the role of institutions, and academia in particular. Most medical discoveries are made in university medical schools; nearly all breakthroughs in manufacturing, on the other hand, have been made by self-taught practitioners in factories, with no academic affiliation. I am thinking of high school graduates like Taiichi Ohno, Frank Gilbreth, Charles Sorensen, or Frederick Taylor. Whatever consensus eventually emerges on a Lean BOK, it will not have come from universities. This leaves professional societies and for-profit training companies, and no answer to the question of who certifies the certifiers.

By requiring certifications, company recruiters are making them valuable to applicants, and are generating business both for genuine training organizations and for diploma mills. However, what these recruiters are not doing is their job, because  the next Taiichi Ohno won’t make it past their initial review.

By • Management • 15 • Tags: , , ,

Jan 7 2012

Why people don’t learn Lean Management — Question from Nicolas Stampf on LinkedIn

You might as well ask why people keep behaving in self-destructive ways when they know better, for example overeating and not exercising. The rewards of changing behavior are obvious and they know it, yet they don’t do it until a significant event happens. Getting seriously ill will do it, but so will running for president.
In your question, you also treat the adoption of Lean as an personal choice. It’s not. Organizations choose to implement Lean, not individuals. It is a decision made by top managers, and they must communicate to all levels why they are doing it and that they are dead serious, which means that participation in the effort is a condition for continued membership in the organization.
Also, as Tom Berghan said “Lean isn’t Feng Shui on the business, it is the business.” In other words, if you want to be successful in implementing Lean, you cannot cherry-pick elements of it. Your question is centered on continuous improvement, performance management, and problem-solving, which won’t make much of a difference if they are all you do. In Manufacturing, the core of Lean includes specific approaches to production line design, operator job design, production control and logistics, quality assurance, maintenance, human resource management, accounting, strategy deployment, etc. I understand your work in Banking, where many of these approaches are not directly relevant, which means that you have to invent their equivalent for banking operations.

By • Management • 1 • Tags: , ,

A3 sample

Jan 2 2012

What is an A3?

Many discussions of A3 reports in Lean omit one basic fact: A3 is a paper format. In millimeters, a A3 sheet is 297X420, roughly equivalent to 11×17 in inches. It is the size of two A4 sheets side-by-side, and half of an A2 sheet. The A-series of  paper sizes is used all over the world, except in the US…

An A3 report is not just a story on one sheet of paper, but on one sheet of paper of this particular size, which has been found right to tell a manufacturing story with just enough details without turning into a victorian novel.

It can be posted on bulletin boards or above operator workstations. Operator instruction sheets are actually supposed to be on A3 paper.

Size does matter. If you shrink an A3 to A4 or letter size, it is no longer works as an A3, because the print will be too small for viewing on a board. If you show it on a PowerPoint slide, it is not an A3 either, because it does not have the permanence of hardcopy and, unless you have really advanced IT, you cannot annotate it manually.

By • Management • 36 • Tags: , ,

elephant

Dec 22 2011

The Lean Body of Knowledge

Efforts at implementing Lean have become pervasive in manufacturing, branching out from the automotive industry to electronics, aerospace, and even food and cosmetics, not to mention efforts to adapt it to construction, health care, or services. As a consequence, the knowledge of Lean, proficiency in its tools, and skills in its implementation are highly marketable in many industries.

There is, however, no consensus on a body of knowledge (BOK) for education in the field, and my review of existing BOKs and university courses confirms it.  A consensus is elusive because Lean emerged as the accumulation of point solutions developed at Toyota over time, rather than as the implementation of a coherent strategy.

As Takahiro Fujimoto explains, there was no individual thinker whose theories started the company down this path. Decades later, we are left with the task of reverse-engineering underlying principles from actual plant practices. Those who have attempted it produced inconsistent results because they have gone at it like the six blind men with the elephant: their personal backgrounds, mostly in business school education, management, or even psychology allowed them to see different slivers of the Toyota system but not the whole, giving, in particular, short shrift to its engineering dimension.

In the following paragraphs, first I explain what I think the Lean BOK should be. Then I review five programs offered in the US by universities and professional societies and highlight where they differ.

My view of the Lean BOK

A well-rounded program for manufacturing professionals would provide Lean skills to all the professionals involved in designing and operating manufacturing plants. Organizations that are successful at Lean do not rely on one department to “do Lean” for everybody else. Instead, Lean is part of everybody’s job. There are basics that everybody needs to know, and then there are different subsets of skills that are useful depending on where you work in the plant.

Beyond the common background, the knowledge should be organized around functions performed by people. In this way of thinking, Visual Management, for example, would not be a stand-alone subject, because factories don’t have “visibility managers.” On the other hand, plants have assembly lines, machining or fabrication shops, shipping and receiving departments all in need of visual management. As a consequence, visual management is part of the training of professionals in assembly, machining, fabrication, logistics, quality, maintenance, etc. And each one only needs to know visual management as it is relevant to his or her position.

Over time, Lean should  migrate into the mainstream of manufacturing and industrial engineering, and lose its separate identity, both in industrial practice and in engineering and management education. This has been the fate of successful innovations in manufacturing in the past. For example, the “American system of manufacture” to which we owe interchangeable parts is now only a subject for historians. It is not the object of a standard or certification, and nobody explicitly undertakes to implement it. That is because its components — engineering drawings, tolerances, allowances, routings, special-purpose machines, etc. — have all become an integral part of how we make things. Likewise, in Japan, TQC is no longer a topic, as its most useful components have just fused into the manufacturing culture 30 years ago. This is what must happen to Lean in the next 30 years.

Lean proficiency should be built around manufacturing functions, not Lean tools. From foundation to superstructure, we see the following hierarchy — originally defined by Crispin Vincenti-Brown — and structure the body of knowledge accordingly:

  1. Manufacturing and industrial engineering of production lines is the foundation, covering every aspect of the physical transformation of materials and components into finished goods. This is about the design and operation of a production lines using different technologies and working at different paces.
  2. Logistics and production control build on top of this foundation, covering both the physical distribution and the information processing required to make materials available to production and deliver finished goods.
  3. Organization and people covers both what an implementer needs to know in order to lead the Lean transformation of an organization, and to manage it once it is underway. The first part is about Lean project and program management; the second, about the alignment of operator team structures  to the production lines, continuous improvement and skills development, and support from production control, quality assurance, maintenance, engineering, and HR.
  4. Metrics and accountability. This is about appropriate metrics for quality, cost, delivery, safety, and morale. In routine operations, this also means collecting the data needed, computing the metrics, and communicating the results in a way that provides useful feedback. On projects, this means estimating improvements. In both cases, metrics in the language of things need to be translated into the language of money for top management.

A hypothetical participant who would master all  of the above  would understand both the philosophy and the tools of Lean, their range of applicability, and their implementation methods. He or she would possess the following skills:

  1. How to read a plant, assess its performance potential, set strategic directions, and start it moving in these directions. This entails the following:
    • Characterizing the demand the plant is expected to respond to.
    • Mapping its current, ideal and future value streams and processes and detect waste.
    • Assessing its technical and human capabilities.
    • Setting strategic directions for improvement.
    • Identifying appropriate improvement projects for current conditions and skill levels.
  2. How to generate or evaluate micro-level designs for takt-driven production lines or cells in assembly, fabrication, or machining by focusing on flows of materials and movements of people. The tools include spreadsheet calculations with Yamazumi and work-combination charts, jidoka, board game simulations, full-size mockups, and software simulations as needed.
  3. How to generate or evaluate macro-level designs for plants and supply chains, involving the organization of:
    • Internal and external logistics.
    • Milk runs.
    • Water spiders.
    • Heijunka and Kanbans.
    • Lean inventory management.
    • …
  4. How to apply the right tools for quality improvement, addressing:
    • Process capability issues with statistical methods/Six Sigma
    • Early detection and resolution of problems through one-piece flow and systematic problem-solving.
    • Human-error prevention through poka-yoke/mistake-proofing.
    • Planned responses to common problems through Change Point Management (CPM), embedded tests and other tools of JKK.
  5. How to organize people to execute and support takt-driven production, and in particular:
    • Set up a systems of small teams, team and group leaders, to carry out daily production as well as continuous improvement activities.
    • Set up a Lean daily management system with performance boards and management follow-up routines.
    • Generate and maintain a system of posted standard work instructions.
    • Apply Training-Within-Industry (TWI).
    • Set up and dimension appropriately a support structure for logistics/production control, maintenance, quality assurance, engineering, human resources, supply chain management and customer service.
  6. How to manage the Lean transformation of a plant from pilot projects to full deployment.
  7. How to select and deploy relevant metrics to monitor manufacturing performance and estimate the impact of improvement projects both in the language of things and in the language of money.

This BOK is dauntingly large, and new wrinkles are added daily.  Fortunately, you don’t need to master all of it in order to be effective.

Review of existing BOKs

I took a look at a few of the existing training programs offered by various institution, for the purpose of identifying the underlying BOKs. Table 1 shows the list. My comments follow.

Table 1: A few Lean training programs in the US
University of Kentucky Lean Systems Certification
University of Michigan Lean Manufacturing Training
SME Lean Certification
University of Dayton Get Lean
Auburn University Lean Certificate Series

The University of Kentucky program

The University of Kentucky’s program includes Core Courses — a train-the-trainer program — and Specialty Courses — for professionals outside of production operations. Some but not all the specialty courses are targeted at functions within the organization but others are about tools. Just the core courses add up to three one-week training sessions, while each specialty course is typically a one- or two-day workshop.

From the University’s web site, however, I cannot tell when, or if, participants ever learn how to design a machining cell, or an assembly line, or how to reduce setup times. In the core courses, it’s great to talk about mindsets, culture, and transformational leadership, but where is the engineering red meat?

The specialty courses address planning, improvement methods, logistics, supplier development, and other unquestionably important topics, but offer nothing about manufacturing or industrial engineering.

The University of Michigan program

The University of Michigan has a program of two one-week sessions with three-week gaps between sessions. This program does cover cell design, materials handling and factory layout,  and even rapid plant assessment, that are certainly relevant engineering topics, but I didn’t see anything about the design of lines that are not cells, autonomation, or the Lean approach to quality. There is a module about integrating Six Sigma with Lean, but there is a lot to Lean Quality that has nothing to do with Six Sigma, such as mistake-proofing.

There is also some coverage of logistics, organization, and accountability, but not as much as in the University of Kentucky program.

The SME

The SME has published a document entitled Lean Certification Body of Knowledge, in which the major headers are:

  1. Cultural Enablers
  2. Continuous Process Improvement
  3. Consistent Lean Enterprise Culture
  4. Business Results

Organization and People issues are treated in 1. and 3. The first two line items under Cultural Enablers are “Respect for the individual” and “Humility.” I am not sure how you can teach this or test for it, particularly humility. It is followed by techniques that have to do with implementation. The topics  in 3. have more to do with management once Lean is started, but it doesn’t say it in so many words.

All Engineering and Logistics is lumped under Continuous Improvement, which is clearly a misnomer because many of the Lean techniques in these areas are radical innovations that have nothing to do with continuous improvement. Inside this section, the choice of topics and their structure is surprising. For example, the only method of data collection considered is the check sheet, and it ranks as high in the hierarchy of topics as poka-yoke or one-piece flow.

As the name suggests, Business Results covers metrics and accountability.

The weight of the different areas varies with the level of certification. At the Bronze level, for example, Continuous Improvement counts for 60%; at the Gold level, only for 15%.

The University of Dayton

I have ties with this institution from having taught courses there  for many years, and I am still listed among their Experts. But I am not involved with their GetLean Certification program. It is an 8 to 10-day curriculum with a core of 5 days on the following topics:

  • Introduction to the Lean Tools
  • How to Develop New Metrics in a Lean Culture
  • Human Error Reduction: Root Cause Analysis
  • Fundamentals of Negotiation
  • Strengthening Your Business Services using LEAN Tools
  • Managing Projects in a LEAN or Six Sigma Environment
  • Managing an Efficient Supply Chain

The choice of topics may seem odd. For example, you might wonder what Fundamentals of Negotiation is doing in a Lean training program, or why Root Cause Analysis only appears under Human Error Reduction. What about root cause analysis of process capability problems?

Auburn University

Of all the Lean programs reviewed here, Auburn University’s probably has the deepest roots, through the influence of JT Black, whose passion for Lean goes back to the late 1970s.

The list of subjects they cover is as follows:

  • Principles of Lean
  • Value Stream Mapping
  • 5s
  • Total Productive Maintenance (TPM)
  • Quick Changeover
  • Pull / Kanban / Cellular Flow
  • Sustaining Continuous Improvement
  • Lean Office
  • Lean Accounting
  • Rapid Improvement Event
  • Problem Solving

If anything, this program has too much of the red meat that is lacking in some of the others. It could, without harm, emphasize Logistics and Management a bit more.

Conclusion: no consensus

Even when considering the programs solely on the basis of their published syllabi, it is clear that their graduates will have received vastly different instruction, and that the designers of these programs have no common view of what the Lean Body of Knowledge is.

By • Management • 12 • Tags: , , , ,

moneytoiletpaper-300x229

Dec 16 2011

“Muda” just means “Unnecessary”

Discussions of Lean often contain statements like the following:

In a lean manufacturing environment, waste is defined as spending resources  on any activity that does not add value to the end customer.

While such statements sound deep in casual conversation, they are impractical. First, not having access to end customers, most employees are left to guess what they might value, and second, much of the work of manufacturing is unintelligible to end customers, like revision control on engineering changes. Everyone recognizes the existence of such activities, but the above definition of waste leads to calling them  “non-value added but necessary” or, even worse, “necessary waste.”

Having to resort to such convoluted oxymorons is a clear sign that there is something amiss in the definition. The English literature on Lean uses “waste” as translation of the Japanese “muda,” which just means unnecessary. If an activity is muda, you are better off not doing it. Overproduction is muda because you don’t need it, and so are excess inventory, overprocessing, etc.

More formally, if you eliminate muda, your performance does not degrade in any way. It also means that muda is what keeps your operations from being Pareto-efficient, because, if you didn’t have any muda, there would be no way to improve any aspect of your performance without making others worse.

The bottom line is that there are only two kinds of activities in manufacturing: those you need to do and those you don’t. And you can tell them apart without asking an end customer, by using, for example,  Ohno’s famous  list of 7 categories.

In what you need to do, you pursue effectiveness and efficiency; for what you don’t, elimination. It is a simple idea. It gets complicated enough when we work out its practical consequences. But we don’t need to make it unnecessarily complicated.

By • Management • 0 • Tags: , ,

NoMoreBackOrders2

Dec 15 2011

Lean causing an increase in backorders?

The following is lifted from the quarterly report of a public company and is attributed to the CEO:

We experienced a temporary increase in backorders at the close of the first quarter as we rebalanced inventories as part of our lean manufacturing initiatives. […] We also implemented a new ERP system during the quarter that will enhance our real-time information for inventory levels, shipments, sales information and production costs.

It seems that the leaders of their Lean Manufacturing initiatives forgot one key principle: First, do no harm! A professionally planned and executed Lean Manufacturing initiative enhances performance. It does not decrease it, even in the beginning and even for the short term.

It is essential for the long-term success of the initiative that its first pilot projects be unquestionable, rapid, obvious successes, and projects that lengthen order fulfillment lead times do not qualify. Nothing should ever take priority over delivering to customers, even Lean.

Furthermore, implementing a new ERP system before you are far enough along in Lean is a generally ineffective for two reasons:

  1. Lean changes your business processes, and embedding your old business processes in an ERP system is a waste of time and will make the changes more difficult.
  2. The implementation of ERP is a resource drain that you cannot afford while implementing Lean.

By • Management • 14 • Tags: ,

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