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May 21 2013

Lean and increasing sales | Bodo Wiegand

The following is a translation of the latest installment in Wiegand’s Watch:

Bodo WiegandAnd what is always forgotten…

In almost every company I see, I find Lean Enthusiasts who want to introduce Lean and  the mindset of their colleagues – preferably by yesterday, but no later than immediately. That this should take 2 – 3 years and not without sweat and hard work, appears barely acceptable.

But what is forgotten almost all Lean projects, is the answer to the question: “What do we do with the increased efficiency, what we do with the capacity that is freed up?”

Do we fire employees? As the most obvious alternative, do we start at the same time a sales compaign?  Why not?

I have found that, in steady state,  Sales always sells just as much as they think can be produced, never more, as it would frustrate customers , and usually less,because you never know what Production will put out next.

This week, we have performed a setup time reduction seminar. The bottleneck machine was a cold press, which took 2.5 hours to set up and then produced for 15 minutes. We put the set-up under a magnifying glass during the seminar and reduced the set-up time to 30 minutes, so that the capacity will be tripled in half a year. The subsequent operations Rotate and Roll work 5 days in 2 shifts. By goint 24×7 and other improvements we could double the capacity of the entire plant.

When, before starting the actual project, we discuss it in a leadership workshop and I demand a parallel initiative from Sales, I often get the following answer: “First do it, we really don’t know what will actually be accomplished” – but then it is too late.

If you do not involve Sales in your project, you put your colleagues’ jobs in jeopardy.

So please do not forget it.

The author, Bodo Wiegand, runs the Lean Management Institute, the German LEI affiliate, and blogs at Wiegands Warte (Wiegand’s Watch).

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By Michel Baudin • Blog clippings 0

May 21 2013

Lean for Managing versus Managing for Lean | Bill Waddell

See on Scoop.it – lean manufacturing

How to apply lean thinking so as to make bad decisions faster and more often than you ever thought possible …http://t.co/BsdllK0IEF

 

Michel Baudin‘s insight:
I couldn’t agree more with Bill on this. It is an issue of effectiveness versus efficiency. In all support activities, the first order of business is to improve effectiveness. Then it is OK to worry about efficicency. First, get the right things done, then worry about getting them done right. In manufacturing, it applies to logistics, maintenance, QA, engineering. HR, etc., as well as to Accounting.

See on www.idatix.com

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By Michel Baudin • Blog clippings 0 • Tags: lean accounting, Lean management, Lean manufacturing, Manufacturing

May 20 2013

Wordless assembly instructions

Having just bought and assembled an Ikea office chair, I couldn’t help but marvel at the clarity off their assembly instructions all in the form of sparse, black-and-white line drawings, without a single word. They are easy to follow, almost mistake-proof, cheap to print, and usable worldwide.

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They should be a source of inspiration for operator instructions in a manufacturing setting, with the understanding that additional instructions are needed, like torque specs on the bolts.

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By Michel Baudin • Technology 2 • Tags: assembly instructions, Ikea, Lean assembly

May 17 2013

Lean Assembly, Lean Logistics, and Euclides Coimbra’s Changes

My fellow consultant and author Euclides Coimbra has only written two reviews on Amazon, both on July 3, 2006, giving five stars to my books Lean Assembly and Lean Logistics, and commenting as follows:

  1. About Lean Assembly: “Very good book. Full of details. Useful for implementers. Knowledgeable readers can find many info between the lines. A wonderful contribution for Kaizen and Lean knowledge.”
  2. About Lean Logistics: “Following Lean Assembly Lean Logistics is a natural continuation. The style is the same and the information as valuable as Lean Assembly. A must have for any Kaizen and Lean implementer. Lots of details and useful information.”

A few months later, I went to work for him, and grew to appreciate his consulting talents. We parted later on good terms and I considered him a friend.

I just received a copy of his 2013 book, Kaizen in Logistics & Supply Chains, and found much overlap in subject matter with the two books of mine that he previously considered a “wonderful contribution” and a “must have.” I assume he changed his mind because they are not in the bibliography, and I couldn’t find my name anywhere in his book.

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By Michel Baudin • Book reviews 1 • Tags: Euclides Coimbra, Kaizen, Lean assembly, Lean Logistics, Logistics, Supply chain

May 15 2013

Lloyd’s Confuses Lean with Outsourcing | The Strategic Sourcerer

See on Scoop.it – lean manufacturing

“Lean manufacturing practices can create efficiency and reduce waste, but smaller inventories put companies at risk for major supply chain disruptions. Many organizations are reconsidering their procurement strategies for emergency preparedness after discovering their operational vulnerability in the aftermath of the 2011 earthquake and tsunami in Japan, as well as the flooding in Thailand, according to Lloyd’s.”

Michel Baudin‘s insight:

Since when is purchasing parts from half-way around the world a “Lean manufacturing practice”? Toyota and Honda do import parts into the US from Japan, but they have been working steadily to increase the domestic content of the cars they build in the US.

In a Lean supply chain, you use as many local suppliers as possible and  only buy from afar if you can’t help it. And local suppliers are subject to the same disasters as you, and inventory in the pipeline is just one more asset that can be destroyed in the earthquake or tsunami.

In the late 1930s, the German aircraft industry organized its supply chain in a system called “ABC,” which involved frequent deliveries from nearby suppliers and almost no inventory at the assembly site. It was in anticipation of a man-made disaster: enemy air raids. Allied bombs could not destroy components that had yet tp be made.

The article just reiterates the old belief that you can protect yourself against shortages by holding inventory. It may work for crude oil, but not for the 30,000 items needed to build a car. To protect against a Fukushima type event, you would have to keep weeks of safety stocks of all the items all the time, which is not a practical idea.

See on www.strategicsourceror.com

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By Michel Baudin • Press clippings 0 • Tags: Honda, Lean supply chain, Supply chain, Toyota

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