Developing Lean Strategy

Developing A Lean Manufacturing Strategy

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Planning, Leading & Managing The Lean Manufacturing Journey

Thus, then, in Strategy everything is very simple, but not on that account very easy.

--Carl von Clauswitz

The Strategos Guide To

Value Stream & Process Mapping

Quarterman Lee's latest book shows not only how do it but what do with it.

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Developing A Lean Strategy

To develop a Lean Manufacturing Strategy and implementation plan, we recommend five general steps:

1. Evaluate The Current State

2. Identify "Key Manufacturing Task(s)."

3. Determine The Future-State Workflow (In Principle)

4. Select The Lean Elements & Infrastructure

5. Identify Precedents and Priorities

6. Develop The Plans

Evaluate The Current State

Our Lean Manufacturing Assessment is a good tool for this. It examines nine key areas and points the way to appropriate improvement techniques. Process Mapping and Value Stream Mapping are also valuable.

Future State Workflow

Workflow emanates from process and layout. What equipment does the work and where it is. For many (but not all) manufacturers, workflow is the best place to start. It corresponds to von Clauswitz' "center of gravity." With a streamlined workflow, many other things become easier.

In the beginning, you will not know the final layout and arrangement of the factory. However, you should be able to:

Determine where cellular manufacturing will apply and where it may not.
Identify probable Focused Factories.
Identify "monuments"; equipment that is large, expensive and operates on many different products. These are likely to remain in functional areas.
Identify where a few new machines might untangle a complex workflow.
Evaluate equipment utilization policies that discourage cellular layouts.

For shops with hundreds or thousands of parts, this requires experience in Group Technology. Without such a background, visualization of the future state is difficult.

The paradox is that the larger the number of parts, the more likely it is that workcells will be viable.

It does take work to untangle the mess and identify cells. It often requires sophisticated methods. Our series on Group Technology explains.

A Lean Laundry List

5S
Autonomation
Pokayoke
Jidoka
Elimination of Waste
Total Productive Maintenance
Continuous Flow
One Piece Flow

Standard Work
Visual Control & Management
In Station Process Control
Level Production
Takt Time
Point of Use Storage
Kaizen
Supplier Development

Future State Infrastructure

Infrastructure supports or enables the process. Infrastructure includes:

Scheduling
Training
Culture
Organization Structure
Quality Methods
Utility Systems
Costing Systems
Investment policies
...Many Others

Here, again, experience is important. Not because the problem is so difficult but because the paradigm is so different.

Identify Your Lean Elements

Based on the vision of the future state, pick the appropriate elements of Lean Manufacturing from the Lean Laundry List. You may also identify other advanced manufacturing techniques that are not on the usual lists of Lean Manufacturing.

Identify Precedents and Priorities

Precedence may require the use of certain elements to make some other element practical. For example, Rapid Setup (SMED) may be necessary to enable kanban. In addition, workcells make kanban simpler and easier. Workcells also function better with small lots. The precedence might therefore be Workcells, SMED, kanban. In reality, these are likely to be concurrent as much as sequential.

Priorities depend partly on precedence but they also depend on ROI. By giving priority to elements, products and areas that promise the fastest and largest returns, the transformation becomes self-financing.

Prioritizing Example

Some companies start with 5S. They want to clean the place up. This seems like a good thing and Martha Stewart would surely approve. However, Cellular Manufacturing might be a better starting point for the following reasons:

The return on 5S is lower, less immediate, and less obvious than for workcells.
If workcells come after 5S, much of the 5S work must be redone.
A rearrangement into cells automatically includes much of the cleanup and fix-up work of 5S.
Workcells are smaller, tighter and more focused than functional areas. They are easier to keep clean. With workcells, 5S is easier, faster and more effective.
The inventory and material handling reductions from Cellular Manufacturing make the plant easier to manage and clean.

Another factor for priorities is the "Low Hanging Fruit" principle. For various reasons, it may be very quick and easy to implement one or another element. It makes sense to give such elements higher priority.

Develop The Plans

With a broad overview of the situation, a vision for the future and knowledge of precedents and priorities, we can now plan our action.

Topics In This Series

Imitation or Innovation

Lean Manufacturing Implementation
Developing Lean Strategy
Planning A Lean Implementation
Lean Implementation Plan Example
The Lean Launch
Lombardi Power Sweep
Elements, Tools & Technigues
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