Rapid Implementation for Lean Success

Improve quality, housekeeping, production control, safety, material flow, performance management and productivity using kanban, FIFO queues, signs, color-codes, labels and visual devices such as Andon boards.

Effective lean workplaces use 5S (Sort, Scrub, Set in order, Standardize and Sustain) and Visual Systems. With a place for everything and everything in place, out of control situations are clearly visible. Included are guidelines, features and examples of 5S and visual systems – readily transferable to your situation. Abstract Visual Controls are central to any successful Lean transformation. A all-designed Visual System supports other Lean tools with applications such as reinforcing standard work practices, displaying performance trends, providing visual maintenance reminders, highlighting tool locations, scheduling production, and controlling inventory levels. One of the better-known methods of implementing Visual Controls is by following the 5S program (Sort, Scrub, Set in order, Standardize and Sustain). This presentation describes a framework and guidelines for implementing a system of Visual Controls. It will demonstrate application of 5S to transform workplaces and measure results. Many examples of Visual Controls are included using the following target areas: – Practices in the Workplace – Personnel – Policies & Coordination – Procedures – Methods – Production Control – Process Control & Quality Improvement – Productive Maintenance – Protection & Safety – Performance Management Many photographs from a variety of companies illustrate these methods of making the workplace selfexplaining and self-maintaining. Before and after photos and metrics for 5S applications are included. This is a practical presentation, providing many transferable tools. Guidelines, techniques and examples showcase the value of Visual Controls and some implementation tips. Participants should discover several ideas they can readily apply to their workplace. Participants Will Learn: – Definitions and guidelines to support 5S program implementation – Practical tips and examples to help understand and install Visual Controls – Applications 5S with before and after photos with results achieved – How 5S and Visual Controls support other Lean Tools – Several practical ideas to apply to their situation.

5S System

The 5S’s are lean concepts derived from the Japanese words: seiri (sort), seiton (set in order), seiso (shine or purity), seiketsu (standardize), and shitsuke (sustain) (Hirano, 1996).

What is 5S? Companies adopting the lean production philosophy often implement the 5S process to bring order to the workplace and thereby support lean production. Why Use the 5S Concept as a Model for Lean Supply Strategy? 5S is a proven model for organizing and maintaining a lean production environment. The relationship between purchasing or supply and the general management of operations may be improved through the use of a common vocabulary built around concepts familiar to the organizational head and the heads of other departments. For this reason, 5S is an appealing model for the development of supply strategy in a lean production environment. A model for using 5S to develop supply strategy follows. Sort: Remove All But the Necessary Materials, Equipment and Supplies. Typically, the first step in a producer’s implementation of 5S will be a tour of the target area marking with red tags those items that appear out of place or unnecessary. After reviewing each item, the item will either be put in its proper place or removed if it is unnecessary or redundant. The Sort process is essential to developing the organization of the workspace needed for lean production. Sorting the supply base includes selection of suppliers to add to the system and selecting suppliers to eliminate (supply base consolidation or rationalization). Implementing Sort in the supply base through supplier consolidation achieves the following benefits. It reduces the waste of inefficient work methods by reducing the number of suppliers that must be managed by the procurement staff. Sorting reduces the waste of selecting the wrong suppliers by focusing efforts of selection, evaluation, and improvement on a few select suppliers. This also improves the quality (conformance to specifications and delivery) of the products received from these suppliers by focusing quality assurance, control and improvement activities on a smaller number of suppliers. Sorting reduces processing waste as fewer purchase orders may be necessary and fewer selection audits are needed. Finally, Sorting increases the opportunity for supply chain partnering. So for the management of supply, the primary implementation of Sort is selection. There are several criteria that may be used to identify candidates for elimination in the sorting process. First, a performance review (i.e., review of quality, delivery, and price performance) isolates some candidates for elimination. Next, a review of redundant suppliers is conducted. How many suppliers have identical or overlapping capabilities? Finally, a review of the number of part numbers purchased from each supplier will often result in identification of a large number of suppliers providing only one or a few parts. All of the sorting or consolidation is an effort to approach an optimum number of suppliers. Multiplying suppliers increases variation and overhead. The practice of utilizing multiple suppliers for a single part in order to reduce risk often increases risk, just as increasing the number of components in an assembly usually increases the probability of failure. Set in Order: Arrange Product and Equipment So It is Easy to Find and Easy to Use. Equipment and storage locations are labeled so equipment or tools will be easy to identify and put away when they are no longer in use (e.g., tool cutouts or outlines on a peg board or in a tool chest). The labeling of storage locations with tape on the floor or the work station facilitates visual management. A glance is sufficient to identify missing tools or tools not properly stored. Arranging suppliers so they are easy to use brings to mind the concept of segmentation. Segmentation provides a “place for everything” and allocates “everything in its place.” The supply base is sorted or segmented by value potential and risk, by strategic value and opportunity for cost improvement, by value potential and criticality, or other such criteria. The proper “place” for a supplier is a location in a segmentation matrix. The value of this exercise comes from clearly identifying how each supplier will be treated based on identifiable criteria.

Double bin Kanban System

In the double bin kanban system, the consumer (downstream process) takes his supplies from the first bin until it gets empty(= order point reached). The empty bin is returned to supplier while consume goes on by supplying from second bin.

The supplier understand the return of empty bin as a signal asking for supply. He knows that meanwhile his client is emptying thesecond bin (= order point crossed).

Double bin kanban method is most often used for low value, bulk parts: screws, nuts, bolts, small accessories…

The bin content quantity is generally the supplier’s original delivery quantity (box of 100 screws, 1000 rivets…). If consumption is very fast, the quantity is adjusted placing for example 10 boxes of 100 screws in the bin and supply two bins.

A kanban system requires stable and fairly level demand, varying by no more than 10% to 20% at most. Shelf life may also be a factor.

Are there different flavors of Lean-Kanban? Kanban is about “starting where you are” and creating the best development flow to meet the requirements of your organization. Different team dynamics, restrictions and regulations, and different types of work mean that Kanban will look a little different from organization to organization — even from team to team. This area explores a variety of ways teams are using Kanban in the field.

Kanban’s visibility changes the relationship between management and their teams. It also allows managers to provide coaching and leadership to the team when necessary. Management respects that the team is doing their best but understands that sometimes teams don’t see all the things they need to do.

Often Electronic Kanban solutions will use technology to improve the messages between operators – this can be done in a variety of ways but often incorporates the use of Electronic Barcodes. Bar coding, while around for many years, still has a big part to play in streamlining processes. They provide a fast, easy, and accurate method of data entry.

The goal of a Lean-Kanban transition is to improve delivery of value, increase speed and quality of delivery, and improve maintainability. To do this, lean initiatives coordinate between the management, the development process and the development technical practices.

When you are ready to roll up your sleeves and “go Lean”, you will turn to practices. Kanban principles are embodied in practices such as visualization and limits. Developing these core practices plus recommended technical practices will drive your Kanban initiative on to continual improvement. Over the years Kanban has developed through use of technology and Electronic Kanban software is now prevalent in the marketplace.