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Nov 22 2013

Manufacturing in America Infographic | U.S. Census Bureau

See on Scoop.it – lean manufacturing
“Manufacturing plays a major role in our economy. According to the Census Bureau’s latest County Business Patterns, the manufacturing sector includes almost 300,000 establishments with 11 million employees producing goods that we consume domestically or export abroad. The nation relies on several key Census Bureau programs to track America’s manufacturing. The most recent year’s data from some of these programs are highlighted below.”

Michel Baudin‘s insight:

These are the official numbers about the place of Manufacturing in the economy, in terms of employment, geographical distribution, materials consumption, energy consumption, capital investment, value of shipments, and contribution to exports.

In the US, we are lucky to have government agencies that compile unbiased economic statistics, and make much of the raw data available on line.

If you want to know the valued added per employee of an industry, or its ratio of indirect to direct employees, you can get the numbers from the Bureau of Labor Statistics and the Economic Census.

As one would expect, the value added per employee is higher in semiconductors than in aluminum foundries. But the industry on the West Coast that, in aggregate, produces the most value added is computer assembly, and that, I didn’t expect.

See on www.census.gov

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By Michel Baudin • Press clippings • 0 • Tags: Census, Economic Census, Economic statistics, Manufacturing

Crossing conveyors

Nov 21 2013

Stop ropes and Andons at Ford’s River Rouge Plant in 1931

Mark Warren pointed out to me the description of a stop rope with and Andon board in a book called Ford Men and Methods, by Edwin P. Norwood, with illustrations by Charles Sheeler, including his famous crossing conveyors.

First, on p. 1:

“Placed on one of many balconies to be found in the Rouge Plant Motors Building is a room, glassed on three sides and so located as to command a comparatively clear view of all that surrounds it. Along the back wall of this room stands an instrument board, studded with signal lights.

Aside from their visitor, two men are present. One, seated on a stool, is drawn close to a shallow desk which extends from the board. The other, a trouble mechanic, is intent upon that constant motion to be seen through the windows.

As you watch there comes the whir of a bell fixed to the top of the panel. The man at the desk moves a switch. The bell is silenced but in the same instant a green light glows in the face of the board. The operator waits-one eye on a clock that is near the bell, the other on the emerald light.

Five seconds, ten seconds, twenty seconds–then the light goes dark. Already the man’s finger is on a convenient button. He presses it twice and to your ears come the drawn-out wails of a distant siren. He touches a second button and somewhere a conveyor, temporarily “down,” goes into action again. You have had a fleeting glimpse of one of the control centers of that huge System of power-driven carriers that move throughout seemingly every nook and corner of the Dearborn shops.”

Following is a picture of an Andon board from Toyota Georgetown today:

Andon board at Toyota Georgetown

Unlike the example described above, it is not located in a control room but on the shop floor for production supervisors to see, and green lights are not used for alarms anymore. Perhaps, in 1931, the green-yellow-red color code had not yet become a cultural constraint.

Then on p. 10:

“The operator is provided with the means of protecting himself against accident or the chance of becoming swamped by a too rapid flow of work. If materials are coming too
fast, as at some point where there is a transfer from one line to another, or if an unlooked-for hitch tangles the smoothness of movement, any Workman is at liberty to bring that line at which he is engaged to a halt. Indeed, he is expected to do so. He does this by throwing a switch, or by reaching upward and pulling a  cord which operates similarly to that used for signaling the driver in a motor bus.

To make clearer this provision it may be well to return to the control booth touched upon at the beginning of the present chapter. The glowing of the green light noted at that time simply meant that somewhere some operator or foreman had pulled a stop switch. The trouble determining this action may have been a minor difficulty, or it may have been of serious import — possibly an actual breakdown of machinery. In such instances the probability is judged by the booth operator in accordance with the space of time that the signal light burns. If more than two minutes pass, then the trouble mechanic serving the affected section investigates the cause. And he knows where to go because of the number and position of the light on the instrument board. But if the light is extinguished within the permitted two minutes, this is because an electrical impulse meaning ‘All’s well’ has been sent in from the point of temporary trouble. It is then that the siren is sounded –a warning to all interested that the line is once more to move — while the pushing of the second button sends the conveyor into action again. But whatever the space of time may have been, the control operator tabulates both it and the point of trouble.”

Operator pulling a stop rope at Toyota Georgetown
Operator pulling a stop rope at Toyota Georgetown

The description of the stop rope matches exactly this picture from Toyota Georgetown, and it still resembles the cord on a city bus that you pull to tell the driver to let you off at the next stop.

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By Michel Baudin • History • 2 • Tags: Andon, Ford, Sheeler

Nov 19 2013

Fundamentals of Performance Metrics | Bill Waddell

See on Scoop.it – lean manufacturing

Received a question the other day: “If you were allowed to use 3 metrics to operate by, what would they be (and why) if you were: (1) a CEO, (2) a Plant Manager, (3) a Value Stream Manager, (4) a Purchasing Manager, and (5) a Sales Manager.” In…

Michel Baudin‘s insight:

A thoughtful, rant-free article, focused primarily on the language of money. My few blog posts on the subject were on metrics in the language of things, as spoken on production shop floors:

  • Chart junk in performance boards and presentations 
  • Companies focus on what is easy to measure
  • Metrics in Lean recorded webinar
  • Alternatives to Rank-and-Yank in Evaluating People
  • Productivity of a Quality Assurance department
  • Lead times and inventory 
  • Metrics on the web versus manufacturing
  • Metrics gaming and how to prevent it 
  • Metrics of Equipment
  • Metrics of Quality
  • Requirements on Metrics
  • The staying power of bad metrics
  • Orbit charts, and why you should use them

See on www.idatix.com

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By Michel Baudin • Blog clippings • 0 • Tags: Lean, Metrics

Nov 15 2013

A pull system of 1915 | Charles E. Knoeppel

The following is from p.121 of Charles E. Knoeppel’s book Installing Efficiency Methods (1915):

Pull system C. Knoeppel 1915

Thanks again to Bryan Lund for pointing out this  forgotten but remarkable book.

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By Michel Baudin • History • 4 • Tags: Pull systems

Nov 11 2013

Giving Credit for Jidoka | Bill Waddell

See on Scoop.it – lean manufacturing
“…Automation has long been a central tenet of lean.  It is in the automation versus labor cost issue where conflict arises.  Toyota spends a lot of time thinking about and working on jidoka – automation with a human touch.  In a nutshell, it means investing in automation to enhance human capability, rather than replace it…”

 

 

Michel Baudin‘s insight:

One of the rare articles in English where Toyota’s jidoka is accurately portrayed as a complete — and effective — automation strategy, rather than reduced to the notion of machines that stop when they malfunction. As Bill recognizes, there is more to it than that.

See on www.idatix.com

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By Michel Baudin • Blog clippings • 0 • Tags: Automation, Autonomation, jidoka

Nov 8 2013

Demand/Capacity Curve | John Dyer | IndustryWeek

See on Scoop.it – lean manufacturing

“True company growth can be achieved when the maximum capacity is increased by breaking bottlenecks and the sales team makes promises to the customers that the business process can support.”

 

Michel Baudin‘s insight:

John Dyer presents the capacity of a business as a constraint set by the slowest operation in its process, also known as its bottleneck. In manufacturing, at least, it is more realistics to think of it as fuzzy.

If a solid line exists, we don’t usually know exactly where it is. Even an operations manager who claims to know it won’t share that information with colleagues.  Right after claiming in a meeting that production is running full blast, he or she miraculously finds a way to squeeze 15% more out of it.

If  a perceived bottleneck is a purely human process requiring no unusual skills, it can eliminated by rebalancing the work. Dyer’s discussion is centered on where it is a machine and its capacity can be increased by process improvement.

But does this mean that continuous improvement should be focused exclusively on the bottleneck? In many cases, the bottleneck is the most sophisticated machine on the floor, and increasing its capacity  requires engineering knowledge that is not present in the factory’s work force, and can only be done by bringing in outside experts.

On the other hand, the work force has the skills needed to improve the performance of other operations. This can ensure that the bottleneck has the materials it needs at all times, and free human resources that can be trained to operate and maintain the bottleneck, and eventually to improve it.

This article has a “Part 2” about  why it is so difficult to work with in-house suppliers . Dyer’s term for in-house suppliers is “intercompany suppliers,” which confused me, because I took “intercompany” to mean “between companies,” the way “international” means “between countries.”

His point is that in-house customers may be bad for a supplier because transfer prices calculated on a cost-plus basis can be below market prices. This causes in-house suppliers to give preferential treatment to their external customers.

A remedy that Dyer does not seem to consider is to make transfer prices between divisions match market prices. This works as long as the supplier division has external customers — or the customer division external suppliers —  through which market prices can be known.

In many cases, in-house suppliers make parts based on the company’s unique technology, that have no outside market, and for which there is no market price. Transfer prices then have to be negotiated in a way that is “fair” to both sides. Figuring out what that means is a conflictual process, that is avoided by treating the supplying division as a cost center rather than a profit-and-loss center.

See on www.industryweek.com

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By Michel Baudin • Press clippings • 0 • Tags: bottleneck, capacity, Continuous improvement, Supply chain

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