Realigning

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As we organize our shop floor and start identifying issues that interrupt the flow of products, we will need to be very organized to efficiently solve them. As I had mentioned in my previous post Scientific Thinking is very much required. But now what is a more significant issue ,which most of us had realized , is that we have lot of issues to solve and very little time.

We will not be able to change this condition overnight but it will require our faith in the system that we will design to manage Problem Solving. From now until the time we have an efficient system in place, we will have to take the leap of faith and deal with all the uncertainties and failures. The key is not knowing everything but being persistent in our efforts.

Now how to deal with the issue of Problem solving with minimal resources available:

1. Break Issues into sizable chunks which are easy to deal with.

  • Depending upon the complexity and duration required  issues can be broken down. For the sake of simplicity let us say we have problems which can be solved in 30 days and problems that take more than 30 days. All the less than 30 day issues will be put on an Accountability  board using Post It notes and all the more than 30 days issues will be using the A3 wall.

2. Categorize the issues and tasks so clear  responsibility and accountability can be assigned

  • Tasks can be categorized, for example into following categories  : 1. Mechanical Engineering; 2. Industrial Engineering; 3. Operations Management; 4. Project Management; 5. Production Coordination; 6. Inventory  Management; 7. HR Management; 8. Facilities Management.
  • Each category will have only one person responsible and accountable for it.

3. Use visual tools to manage the workload per person

  • At the workstation level we have an action Item List which shows how many tasks are assigned to the operator.
  • For management we will have an accountability board which will assign tasks per person over the span of 30 days. It will show the daily workload for improvement tasks.
  • The other management tool would be an A3 wall which will be used to display tasks per person in each value stream. No more than 3 A3s will be assigned per person and all the pending A3 will be in queue in a space provided below the Active A3 area.

4. Divide everyone’s daily schedule and assign time for routine tasks and improvement projects

  • Each and every person in the management needs to identify their role in maintaining the current system to run our operations. This involves a series of routine tasks which will be standardized and made part of the Leader Standard Work. Tools like the Gemba walk is one example which has been standardized by the use of standard 10 questions (will discuss this in detail in another post). Other tools like check lists can also be used. Also a certain portion of daily work Would be devoted for improvement projects or tasks which are listed on the accountability board or the A3 wall.
  • This is the most important management piece which will help us sustain and improve. As we are disciplined to follow Leader Standard Work and persistent to find and solve problems only then will we be able to sustain the system. If we do not question every action, do not check if people are following standard work or not, then over a period of time things will again get out of control.

5. Design simple tools which can be used to decentralize the solving of recurring issues

  • More people equipped with ability to solve problems provides for a lesser workload on management. To make this possible the problem solution should be simplified by the use of templates, forms or diagrams which take the people involved in solving through identification, root cause analysis, containment of existing defective parts/ or immediate fix, and finding a permanent solution to avoid any future occurrence and finally incorporate the solution into the standard work.
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The First Wave of Change

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It has been very beneficial to organize the plant using 5S. The basic goal of this program was to achieve stability and standardization. We used tools like 5S and Standard Work and educated ourselves as how they form the foundation for any Improvement in the future.

The System that was setup, not only  identify and eliminate waste to some extent  but also helped boost employee morale. This was a very significant development for our organisation during this time of economic downturn. Now all our efforts would be focused to sustain  what we have achieved and continuously improve.

As our next step we wanted to be sure that we are equipped and ready to support our operations without being overburdened or have too much variations. This leads us to “Leader Standard work”, by which we will standardize our routine daily work elements and ensure all the managers have scheduled time to work on improvement of their key result areas.

Also we understood the need to learn and actively use the process of Scientific thinking while solving problems. What is Scientific Thinking? We should never wait for that perfect plan to take action on any issue, but should use the natural learning cycle in collaboration with others to plan, do, act, and check. Our understanding and persistent use of this technique will align all the process owners on the shop floor to use this method and scientifically solve their problems.

I will briefly Introduce how we could use scientific thinking using tools “Catchball” and “A3 Thinking”

Catchball:

“Catchball is a method of idea generation and sharing that mimics a child playing catch with a parent. The key principle behind the method is respect for the ideas and abilities of others. The ‘need,’ a proposed vision or direction, is expressed by the leader, and the subordinate responds with an interpretation of what that direction will mean within the subordinate‘s realm of responsibility. The leader then reviews the response with humility, open to proposals or ideas previously not considered by the leader. As the ball (idea) is passed back and forth, new ideas emerge, as do consensus on the right course of action. This process exemplifies the principle-based thinking that is a hallmark of excellence.” – from “Guideline for Shingo Prize Model”

A3 Thinking:

“Decentralized planning and execution are facilitated by carefully crafted single-page reports that become working discussion documents. A3 is a size of paper (approximately 11-inch by 17-inch). An A3 report may be a proposal, a plan, a status report, or the final documentation for archival and sharing. The format uses scientific thinking, but is flexible enough to accommodate unique issues and a variety of uses. A3 design guidelines include:

• Less is more,

• A picture is worth a thousand words (e.g., charts),

• Visual clarity and 5S are maintained, and

• Functionality outweighs beauty (i.e., A3s often get passed back and forth — catchball — with multiple erasures and revisions; use a pencil).

The A3 tells a compelling story then directs resources and action through action-oriented communication. A3 thinking also supports 15-minute standing meetings that get to the point and focus on results.” – from “Getting Right things done- Pascal Dennis”

We have just begun the real journey of Lean transformation now, after our restructuring of the shop floor. We have not improved or completely eliminated all the waste, that was not the purpose of this phase, but we provided ourselves the means to identify these problems. The next part of  the journey will involve very subtle change. It will not be physical change of the equipment or layout but change in our mental process. We have to figure out how we are going to support and improve and sustain the lean initiative on day to day basis and be a profitable business.

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Leader Standard Work

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After almost a year after writing the job descriptions we realised it was not sufficient to manage process as our shop floor evolved with lean implementation. It just did not provide the information of what needs to be done and when on day to day basis. Effectiveness at a particular job was more dependant on that person and his qualities. Also there was no link between changing processes on the floor and what we need to change in our own schedule to ensure the sustainability of the lean systems.

After reading about Leader Standard Work (Creating Lean Culture ) thought this would definitely be worth a try.

Now how do we implement this? first thing to do was to record what we actually do on everyday  hour by hour and identify Daily, Weekly , Monthly, Quarterly tasks. We decided to record our tasks for one week and then meet to check how we can setup our standard work. Everything was smooth till we met, that is when I realised that  the way I collected was not very efficient to use. It was not a mojor isssue had to manually write the standard work for everyone and then verify from evryone that is what they intended to do. I would suggest to use a template of Leader Standard work which best suits your process. Distribute a blank template to all the people to collect the data and develop the Standard Work. I am providing an example just to give you an idea of what can be used.

LSW Template

This is just the first  phase of implementation where with two goals :

1. Identifying what we are doing right now

2. Getting our team acquainted with the process of developing and using leader standard work

Second phase would be to identify what needs to be done to sustain what we have accomplished and incorporate that in to our Standard work.

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Keeping it Balanced

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Organization’s internal processes transformation is dependent on the resources available, but market does not wait for you . Things change so fast that most organizations are not able to keep up. Already there has been a major shift as per various studies which suggests that major contribution towards GDP has changed from manufacturing to service industries.
Having an edge over competitors by use of tools like Lean and Six Sigma alone is not enough. This was the success criteria for the industrial age , but in the information age the limits are pushed even further. Time to market for products are reduced, product customization is a requirement, customer experience play very important role in differentiating your brand.
The new era demands innovations not only in the internal processes and product but at also at product delivery, customer experience, and how the value is created by the product or service.

The traditional performance measurement for the organization is dependent solely on financial measures. There is no evidence how to relate Intangible assets like motivated workforce, well managed internal processes , superior quality and customer relations to your tangible financial measures. Now the question is why we need to do that?
Only motivated people will help sustain internal process which generate quality products or services which in turn lead happy customers and thus more sales and financial growth. How do we keep check on all these aspects and still be fast to react to outside changes and realign measures in all these aspects.

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Visual controls vs. Computerized data collection

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Visual controls are one of the most effective tools of lean managment. They are simple to use and when properly designed and used will provide real time information About the process.
Computerized data collection on other hand may not necessarily be real time. Someone has to enter the data and then it has to be processed to provide necessary information. By the time we realize any issues it may be too late to take any action. Also this could be capital intensive, cost of software, Computers etc.Visual controls usually will not require any capital investment.
This does not mean that visual controls is the only way to go. Both tools have it’s specific use in different aspects of the management.
Visual controls are most effective at operational level where we have to manage process by hour to hour basis or by pitch. Timeliness of the information is crucial to mitigate flow interupters.
Computerized data is very useful at strategic level. Use of dashboards generated from the collected data can provide information necessary for long term planing.

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