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Oct 12 2013

Silos, “Value Streams,” and Lean Implementation

The on-line chatter about Lean is all about how you need to break down functional departments — or silos — and organize the company around “Value Streams” that encompass all the resources needed to fulfill orders for a product or product family, and are close cousins of BPR’s business processes and Wickham Skinner’s focused factories. When discussing implementation, however, the same value stream boosters/silo busters recommend that you start by setting up a “Kaizen Promotion Office” or “Lean Department.” This reminds me of the 1980s BBC series Yes Minister, in which an effort to streamline government starts with the creation of a new “Ministry of Administrative Affairs” and the hiring of 25,000 more civil servants to do the streamlining.

While it is ironic to create a new functional department while talking value streams, it reflects a reality: the notion of organizing everything by value stream is simplistic. As discussed in my comments on Deming’s exhortation to break down barriers between departments, there are many activities in a manufacturing organization that we cannot or should not distribute among value streams, including the following:

  1. Processes like heat treatment, painting or plating that we have to operate as common services performed on monuments for multiple value streams because we technically do not know how to execute them on smaller machines that can be dedicated by production lines.
  2. Support services like maintenance that require a minimum number of members of members for at least one to be available when called. If you have 20 technicians in a central maintenance department that are busy 80% of the time, then at least one will be available if a machine breaks 1-.8^{20}=99\% of the time. If you split this department into 4 groups of 5 technicians each assigned to a value stream, then, if a machine breaks down within any value stream technician availability will be reduced to an unacceptably low $latex 1-.8^{5}=67\%$ of the time.
  3. Support services that deal with external entities on behalf of the whole company or plant, like Quality or Safety for certification, or Shipping and Receiving with truckers.
  4. Support services whose job it is to maintain a common environment for operations, such as technical data management or IT.
  5. …

As for the Kaizen Promotion Office or Lean Department, mission creep all too often takes it from a feasible facilitation and communication role to a direct implementation role, which is hopeless because:

  1. The operations groups have no ownership of the changes made by the Lean Department, do not understand them, and frequently reverse them as soon as they have a chance.
  2. The Lean Department cannot be large enough to have the capacity to do everything that is needed.

For the changes to happen and to stick, there is no alternative to leadership from within the organizations responsible for the target operations and participation by individuals who are directly affected.

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By Michel Baudin • Asenta selection, Organization structure • 2 • Tags: kaizen promotion, Lean, Silo, Value Stream

Oct 9 2013

Model T Assembly Line Starts For First Time – October 7, 1913 | The Truth About Cars

See on Scoop.it – lean manufacturing

Michel Baudin‘s insight:

This is mostly interesting for the collection of photos from the Ford Highland park plant.

See on www.thetruthaboutcars.com

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By Michel Baudin • Blog clippings • 0 • Tags: Assembly line, Ford

Oct 6 2013

Predicting the benefits of “Lean Actions”

In the TPS + 1 ENGINEERING group on LinkedIn, Hela Hassine asked  “How can we predict and quantify the profit of lean actions before implementing them?”

I see three types of what Hela Hassine call “actions”:

  1. For some, you can do a complete discounted cash flow analysis before implementing. Cellularizing a job-shop falls into this category.
  2. For others, you cannot calculate the benefits ahead of time, but you can measure them afterwards. When you improve quality, first you can’t tell ahead of time by how much it will actually improve, and second, you can’t tell how much good this improvement will do to your business. After you have improved quality, you know by how much, and you can also measure the market impact of the improved quality, which is its dominant benefit. There is no way you can justify quality improvement ahead of time through cost-of-quality analysis.
  3. For the rest, the benefits are too diffuse to be measurable. 5S falls is in this category.

This has obvious consequences on implementation sequencing, that are often overlooked. Projects that lend themselves to a-priori justification are easiest to sell to management, and success in such projects gives you the credibility you need to undertake others with less tangible benefits. In other words, you are better off starting with cells than with 5S.

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By Michel Baudin • Management • 6 • Tags: 5S, Cellular manufacturing, Quality

Oct 5 2013

A new logo for the takt times group

The takt times group has a new logo. The old one was the result of a brainstorm back in 2007 involving Christophe Caberlon, Marc Deloges,and me, and it was intended as a stylized rendition of an old-style metronome, which we thought was an apt metaphor for takt time. We still think it is, but we were engineers, not graphic designers, and we have lately gotten feedback to the effect that the artwork could be improved.
Being based in Silicon Valley has its advantages, like the ability to pick the brains of digital media artists like Nathalie Mathé who took a break from developing the computer-generated 3D backgrounds for movies like Skyfall or Captain Phillips to propose changes to our logo. It is now curvier, less busy, and with less aggressive colors. Actually, if there were a kanji for “metronome,” this is the way it might look.
An old-fashioned metronome
The old takt times group logo
The new takt times group logo

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By Michel Baudin • Announcements • 1 • Tags: takt times group

Oct 2 2013

“The Fragility of Lean is its Strength” | Michael Ballé

See on Scoop.it – lean manufacturing

“Can a pull system with zero stock make the company more fragile? Sure it can, that’s the whole point: fragile, but flexible. The pull system doesn’t make the company fragile: it reveals the weak points. Top performance is about keeping a ball on top of a round hill it needs everybody’s engagement to make sure it stays there.”

Michel Baudin‘s insight:

Pull systems don”t have zero stocks, but low stocks, and the experience of disasters — from the Mississippi flood of 1993 in the US, to the Aisin Seiki fire of 1997 and the Fukushima earthquate of 2011 in Japan — has shown Toyota’s pull system to be robust and able to recover much faster than anyone expected, including the Japanese press.

“Fragility is strength” is a cute paradox, but not applicable here. The true paradox is that stocks generally do not protect you against shortages. They do for crude oil and similar commodities, but not for  the thousands of different items you need in manufacturing. You end up with full warehouses that are somehow out of the item you need today.

What protects you more effectively is the combination of low stocks with the kind of vigilance that makes you reserve all the available trucking in Chicago a few days before a flood, as Toyota did in 1993. A pull system supports the vigilant monitoring of stocks in two ways:

  1. Self-adjustment in the speed of circulation of pull signals automatically absorbs the routine fluctuations in volume and mix.
  2. When major disruptions occur, they are quickly detected and acted on.

See on www.scdigest.com

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By Michel Baudin • Press clippings • 0 • Tags: Lean, Pull system, Supply Chain Management

Sep 28 2013

Pathways to high performance | Manufacturers’ Monthly

See on Scoop.it – lean manufacturing

“The High Performance Consortium LTD (HPC), a not for profit organisation, facilitates groups of up to 12 non-competing businesses to undertake a program that incorporates events, site visits, coaching and facilitated peer-to-peer forums.”

Michel Baudin‘s insight:

This is similar to supplier groups as organized in Japan: non-competitors helping each other improve performance through joint projects. In this case, it appears to be organized directly by the participating companies, rather than by a common customer.

See on www.manmonthly.com.au

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By Michel Baudin • Press clippings • 0 • Tags: Consortium, Non-competitors

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