
Editor's Note: CR4 would like to thank Dick Kuster of GEA Consulting for contributing this blog entry.
We are often asked to look at Lean to reduce costs and improve manufacturing. We hear Lean expressed as a cost reduction or yet another efficiency improvement program. These are misconceptions (or at least the wrong focus) about the real purpose of Lean.
While cost reduction, greater efficiency and improved manufacturing are likely results of effective Lean implementations, when we focus on the total process from beginning-to-end, as Lean dictates, we begin to identify and eliminate waste and continuously improve the process. This is when we see what Lean truly offers. Eliminating unnecessary moves and combining multiple steps into one operation reduces in-process inventory and speeds up cycle time. Taking those steps and delays out of the process frees up physical space requirements, encourages working together, and provides the beginning of an operating environment where there is continuous improvement. And yes, some reduction of cost and increases in efficiency will follow.
Here is an example. The problem was presented as Lack of Capacity. The company was continuing to grow and they felt they didn't have enough room to add production of a soon-to-be introduced new product. Their owners said no more brick and mortar. Someone told them that Lean might help. It did!
Multiple bench assembly stations were replaced by work cells operating single-piece flow, and cycle time was reduced from 2 - 3 days to 2 - 3 minutes! The footprint required for the existing production was reduced 50%, leaving more than adequate facility for adding the new product line. Changing to a quick-dry adhesive eliminated overnight drying time (and inventory and storage space). With the existing bench assembly, assemblers stood in one place doing frequent, repetitive motions ending most days with back and foot aches. The work cell provided sharing of tasks, a variety of motions, and reduced reaching and lifting that resolved the fatigue issues.
And yes, standardizing and eliminating selected parts and restructuring some operations did provide some cost reductions.
Now, let's address a key tenet of Lean. We do not look at Lean as a program to make people more efficient; we look at Lean as a program that depends on the participation of people to collectively make the entire process more efficient. It requires providing training and opportunity with the expectation everyone participates. It is a change in management style and mission because it doesn't work without management's support, understanding, and demonstrated willingness to allow and encourage participation.
Generally, change should be driven by the need to solve business issues. The need for cost reduction is certainly one of them. How about sharply reducing in-process inventory? What about improving Customer satisfaction by shortening the cycle time from entering their order to shipping it? And, as in the example above, how about gaining needed production capacity without adding brick and mortar?
- Dick Kuster
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