A Lean Story from the UK

Springs maker saves £50,000 by going lean - Crain's Manchester Business

Here's a Lean story from the U.K...

A Rochdale-based maker of springs for military, aerospace and automotive customers, has saved £50,000 and improved productivity thanks to lean manufacturing techniques.United Springs said it has reduced lead time on a key product line by 15 days and reduced inventory levels by 10 per cent to free up cash flow.

It's a short article, but I was happy to see they focused on culture and kaizen, not just a one-time implementation of tools:

United Springs said the project, which was part-funded by the North West Aerospace Alliance, had created a continuous improvement culture within the business, with all employees involved in contributing to the change. Fifteen small teams have been formed to work on productivity improvement, customer satisfaction and shop floor layout.

Cheers!

Subscribe via RSS | Lean Blog Main Page | Podcast | Message Board

Ultimate Factories -- Fire Trucks

I was watching a show (via Tivo, back over the weekend) that I just discovered on the National Geographic Channel -- Ultimate Factories, their episode on fire truck manufacturing at Pierce Manufacturing. It's a cool show for HD also. I think the "Ultimate" in the title tends to refer to the size of the products, not the Lean-ness or manufacturing excellence, necessarily. Episodes focus on products like John Deere farming gear and Winnebagos.

It takes 45 days to build a fire truck - each one is basically custom. But, of course, there's no mention of how much of that 45 days elapsed time is "Value Adding" -- and how much is waste. We'll see as the show progresses.

"There are 33,000 fire departments and they each put out fires differently. So we have to be flexible in our design," says the company president.

Are there really that many ways to put fires out? I can imagine having complete customization of features like paint color (they have 100+ versions of red -- this isn't Henry Ford!!) or graphics but I"m surprised there's THAT much product customization. Building fire trucks seems more like building airplanes - where an airline can specify just about anything they want (or is that changing nowadays)?

The fabrication department has laser cutters that don't just crank out hundreds of the same part over and over (building inventory). They take three days worth of orders and software optimizes what parts will be cut out of which sheets -- all of the parts needed to make the suspension. So although suspensions are built in batches, off line from the primary assembly area, the fabrication process does its best to minimize wasted sheet steel. Three days at a time -- does anyone have any context for how that compares to other similar manufacturers?

The factory layout (as shown by the show) is pretty functional - fabrication, painting, final assembly. The fabrication area is pretty far from final assembly -- it's definitely not a "feeder line" concept. Lots of forklifts and overhead lifts moving things around.

One example of waste reduction -- they use 23 karat gold leaf paper to help put graphics onto the trucks. Pieces that aren't needed are swept up. A supervisor explained that they got $11,000 for the last bags worth of scrap gold leaf paper that they sold back.

Conpared to the other shows like this, the show features interviews with employees and supervisors (like the John Ratzenberger show and unlike the "How It's Made" show that just features a narrator and views of automation). This show focuses on the employees and customer needs, not just whiz-band automation, so I like that. A good amount of this show is focused on design features, not just how it's built, but that's interesting too.



Subscribe via RSS | Lean Blog Main Page | Podcast | Message Board

TWI at Energizer Battery

IndustryWeek : Introducing Training Within Industry

Our friend Bryan Lund is featured in this interview with IndustryWeek (click here to subscribe) about the Training Within Industry Program.

I love the focus on developing people:

IW: What do you hope to gain from implementing TWI?

Lund: Confident, problem solving people.

IW: Would you consider this a culture change for your employees? And if yes, how have you been addressing this?

Lund: Absolutely. We see people confident in proceeding with improvements. We see managers more engaged with their people. They are working together to solve problems and aim to standardize them until they find a better way.

We do not go into our sessions looking to change the culture within two weeks as if it were a project. Changing behavior takes time. All we can do is teach some critical skills, coach those people and encourage them to practice those skills every day.

Developing people -- for one, it shows "respect for people" (as Toyota says) and it leads to results for customers and the company. How do people solve problems? How do managers and leaders work with people? That's what it really all comes down to...

I really appreciate all that Bryan has done to help spread the word about the resurgence of the TWI approach. Check out his TWI Blog here.

Subscribe via RSS | Lean Blog Main Page | Podcast | Message Board

Using Lean to Expand Capacity... Who Loses?

CJOnline / The Topeka Capital-Journal - Topeka Hallmark to absorb work

Is there a Hallmark card that says, "Sorry you lost your job?" They do, sort of.

When companies use Lean, it's not uncommon to find extra capacity through efficiency and uptime improvements. That's good for the growth and long-term future of the facility. That's the case at a Hallmark cards factory in Topeka KS.

"We have excess capacity now to accommodate that," O'Dell said. "We estimate production volume will increase by 10 to 15 percent."

Hallmark employs 800 in Lawrence and 720 in Topeka.

"We have implemented lean manufacturing principles in Lawrence and Topeka," O'Dell said. "We've made process improvements."

This is a nice victory -- a win for that factory. A bit of a problem -- there are some "lose" plants who will be losing jobs as work is shifted from there to Kansas.

Hallmark Cards Inc. is moving manufacturing operations from three plants in Canada, Indiana and Arkansas to plants in Topeka and Lawrence, but no new jobs will result, the company said Wednesday.

The move will eliminate 335 jobs — 195 employees at Hallmark Canada in Toronto; 80 at DaySpring Cards in Siloam Springs, Ark., and 60 at Sunrise Greetings in Bloomington, Ind.

I wonder if they were also using Lean at the other plants.... or are they the losing factories because they didn't use Lean?

This would be a real challenge if you're using Lean at multiple sites... what if you increase capacity at each, but can't spur an increase in sales to match? They have no choice but to consolidate to the plant deemed "best?" Many companies have a "No layoffs due to Lean" policy (which is smart). Would that mean "No layoffs due to Lean at this plant"??

Have you ever been in a similar multi-plant situation? What are your thoughts?

Subscribe via RSS | Lean Blog Main Page | Podcast | Message Board

Google-Funded eSolar project shows signs of Lean Thinking

By Jason Turgeon:

Google made headlines last year when it announced it that it was going to devote a significant chunk of cash to developing renewable energy that was cheaper than coal (the RE eSolar, a small startup that appears to be applying Lean principles to the thorny problem of how to bring the high costs of solar electricity down.)

First, a solar primer. There are two ways to make electricity with solar power. The high-tech way is through solar photovoltaic panels (aka solar PV). These are the panels that Google installed on the roof of its Mountain View campus, and although they turn solar energy directly into electric energy, they're still ridiculously expensive to produce. There's also some concern that the technology used to produce this "clean" power isn't necessarily so clean.

The second method of converting solar power to electricity is to concentrate the rays of the sun using mirrors. These mirrors usually focus on a central tower, which collects the heat and uses it to boil water, which turns a steam turbine to produce electricity. That's pretty much the way a coal-fired power plant works, only without the coal. And although this is cheaper and easier than solar PV, it's still not cost-competitive with coal.

Enter eSolar. The steps they've taken sure sound a lot like Lean. From an excellent article on Cleantech.com today, here are some key quotes:

"We can build these units smaller. This lets us build closer to cities. It lets us avoid some of the traditional roadblocks associated with large transmission projects," Robert Rogan, exec. VP of corporate development at eSolar, told Cleantech.com...."And we've got the ability to scale this very rapidly through
our existing manufacturing."

Hear any Lean concepts in this approach? This also crosses over into Bright Green environmental concepts, because shorter supply lines mean less waste and less infrastructure.

Google has said it believes it needs to get in the range of 1 to 3 cents per kilowatt hour for solar or other renewables to be competitive with coal....Rogan said his company has been very cost conscious. The company said its heliostat mirrors, designed to track the sun, were made to fit into shipping containers to keep transportation costs low, and are pre-assembled at the factory to minimize on-site labor.

More signs of Lean, although I'd like to see something in this about respect for people.

"Minimizing the shipping costs on the hardware is just one example of that very tightly cost-based approach to designing," said Rogan...."Our towers are very short. This, again, makes them very easy to assemble on site, faster to install, and ultimately much lower cost than building a 30-story skyscraper," he said. The company has also cut the amount of steel and concrete used in its systems by keeping the heliostats small and low to the ground, reducing their wind profile.

Again, a nice intersection of Lean and Bright Green. Besides the inherent "greenness" of a solar project, they've figured out how to do more with less.

"Another nice benefit of this pre-fab, modular, scalable approach is that we can incorporate, in the future, all varieties of storage." "Currently, we're not discussing our specific storage plans, except to say that we don't view it as being a barrier to entering the market," he said.

This somewhat resembles the flexible workspace approach of Lean. You can read a bit more about the company's lean approach here.

All in all, it's great to see Lean and Green integrated in such a fashion. Hopefully there will be a lot more of this kind of thing coming soon. Happy Earth Day, everyone!

Subscribe via RSS Lean Blog Main Page Podcast Message Board

Another Wisconsin Lean Story

Appleton Post-Crescent: Little Chute company sees a sharp future

Here's another story about a small company in Wisconsin -- they're using Lean to get more competitive. Valley Grinding & Manufacturing (nicknamed "VG") makes equipment that's used to sharpen blades and grinders. Wisconsin seems to have a real concentration of Lean stories, both in factories and hospitals like ThedaCare. Or maybe the newspapers just like writing about Lean more up there. From the article:

For the lean venture, the company brought aboard Pete L'Empereur, continuous improvement manager, in late 2006. Van Vreede said they started on the manufacturing side of the operation where they see their biggest return. The lean measures next will be applied to the sharpening side of the firm.

A $425,000 machinery expansion is designed to accommodate a "one piece" flow of product through manufacturing. "The whole flow aspect is huge," L'Empereur said. "Anytime you have to stop and start and stack and unstack work, it causes a lot of inefficiency."

There's not much detail in the story, but it's always great to see small companies taking control of their destiny. Hard work, business acumen, and Lean is always nicer to see than excuses and complaining, as we often see from large companies. Good luck with your lean efforts, "VG."

Subscribe via RSS | Lean Blog Main Page | Podcast | Message Board

Michigan Could Have Had a "Lean" Governor?

TOM WALSH: DeVos' answer for manufacturing in Michigan: Flexibility, teamwork

Here is an article about the Republican who lost the Michigan governor's race last year, Dick DeVos. Considering all of the problems in the state's economy, it might have been interesting to have a manufacturing company CEO as governor of my home state.

From the article, it sounds like there are many Lean methods and mindsets in his company, Windquest.

"This culture," [DeVos] said, waving an arm across the floor of his Windquest Cos. factory in Holland last week, "this fast, flexible, teamwork culture, is the future of manufacturing."

Even though the article doesn't mean the word "Lean," the results and culture sound like Lean:

Delivery times for custom orders have shrunk from 2 1/2 weeks to three days.

Every worker on the two production shifts is trained to do multiple tasks. Shift lengths are adjusted to suit rapid changes in order volume. "We might be six hours one day, 10 hours the next," said Eric Wolff, the firm's president and chief operating officer.

"The old manufacturing world, with 14 layers of pay, long lead times, inflexibility, us-versus-them attitudes -- those days are gone," said DeVos.

Shrinking lead times by eliminating waste is a common benefit of Lean. Companies often make a leap as seen there, from measure lead time in "weeks" to "days" (or from "months" to "weeks"). Getting away from an "us-versus-them" attitude sure sounds like Lean to me.

The key principles of the company:

Five banners hang overhead in the plant, exhorting workers to:

• Be enthusiastic.

• Make a difference.

• Be a problem solver.

• Find the win-win.

• Have integrity.

Again, sure sounds like Lean to me. Could he have brought that attitude and Lean principles to state government, ala Iowa? Maybe. But, at the least, let's hope that DeVos can inspire the Michigan business to grow by being more Lean. That's especially needed with the shrinking automotive base... ironically the home of Lean.

Subscribe via RSS | Lean Blog Main Page | Podcast | Message Board

Also Working on "Respect for People?"

Article Link: Lifting specialists set to lose weight

I'm always a bit skeptical when I hear about Lean being a "project." Sure, a project can be a starting point, but as the first step to transitioning to a Lean management system. Projects tend to degrade into former projects and former Lean methods.

"The second project is looking at reducing production costs by using the principles of 'lean manufacturing'. MAS practitioner John Ransford said: 'We are focusing our efforts on visual management. This is where we look at the shop floor and plan where stock should be so that the workers have the right products at the right time for assembly and don't waste time in visits to stores. We also make sure that the company isn't stockpiling which helps its cash flow considerably.'"

Without knowing the whole story, this sort of sounds like a tools-driven effort. Effective Lean efforts are not focused strictly on cost reduction. Sure, cost reduction tends to follow, but as a result of process improvement. At least they are somewhat focused on making things easier for employees, but I wonder if this is an expert-driven approach that doesn't fully engage and involve the workforce?

Remember, the two pillars of the Toyota Production System are:

1. Elimination of waste and non-value-added activity
   
2. Respect for people

As Bob Emiliani says in his new book, Practical Lean Leadership: A Strategic Leadership Guide For Executives, you can't say you're working on Lean methods if you're not also focusing on respect for people. I'll give a full review of his book when I'm finished with it.

I hope the company featured in that article/press release is working on both.

Subscribe via RSS | Lean Blog Main Page | Podcast | Message Board

A Shortage of Employees or a Shortage of Lean Management?

"Help Wanted" highlights skills drain in U.S - Yahoo! News

Here's an interesting story about the shortage of machinists:

While millions of jobs making everything from textiles to steel have moved to new powerhouses like China in recent years, precision manufacturing remains a crucial niche in the United States, one that is overworked and chronically understaffed.

And, in a bad sign for the United States and its declining economic might, that shortage of skilled workers is likely to get worse as Baby Boomers retire -- with no younger generation of manufacturing workers to take the baton.

"Our workforce is an aging workforce," said Chief Executive Jeff Kelly, whose father founded Hamill nearly 60 years ago. "There isn't a queue of people lining up to come into the industry."

I've sort of lost track of this in manufacturing, but I can believe it. The last machining environment I worked in didn't have many young "new" employees. Hospitals face many of the same types of key skill shortages: pharmacists, medical technologists, nurses, and other areas.

Who wants to go into manufacturing, given the reputation it has been given in this country? The prospects for a good career don't seem very good, given the incessant stories about how manufacturing is going overseas and the U.S. will be a "service economy."

The article talked about strategies companies and organizations are using -- increasing pay, offering educational and apprenticeship help... but I didn't hear anything about Lean. How many of these open machinist positions would be filled, only to have them standing around some part of the day due to poor product flow or an old non-Lean "one person - one machine" approach where people stand and watch the automation run?

I heard one hospital president speak, in a Lean conference, about the shortages of skilled employees in healthcare. He had a really provocative thought (and I'm paraphrasing):

Do we have a shortage of skilled employees or a shortage of the proper types of managers?

He was saying we need more managers who focus on eliminating waste (through Lean) so that we can be more efficient rather than just asking for more people and more resources.

This hospital president (after success with Lean throughout his hospital) was CONVINCED that the industry's labor shortages would be solved if everyone was using Lean.

Is the same true in precision machining?

Subscribe via RSS | Lean Blog Main Page | Podcast | Message Board

A Biotech Company Using Lean

New England Peptide Implements Lean Manufacturing

Here is an article about what might seem like a very untraditional industry using Lean -- biotech. It's a favorite excuse in almost any industry to say "we're different," but those who want to make Lean work find a way, since the concepts have proven to be so widely applicable.

New England Peptide, LLC (NEP) is implementing lean manufacturing at its Gardner, Mass., facility, to increase capacity and decrease production leadtime associated with peptide and antibody production.

Some other highlights:

• "NEP is incorporating lean practices such as “value stream mapping” and the lean “5S” framework (Sort Out, Set in Order, Shine, Standardize, Sustain), designed to target improved organization, productivity, and safety. NEP already has reallocated 15 percent of its plant square footage toward new processes"
  
  
• While NEP’s turnaround time is already the industry’s fastest, a recent customer survey indicated customers would benefit from even faster leadtimes. “Lean manufacturing will allow us to meet that demand, and do so without compromising NEP’s service and quality.”

I'll quibble with the headline of the release/story, that "implemented" is the wrong tense -- we're all just "implementing" Lean, we are never done with our continuous improvement.The article suggests they are pretty early in their journey. I will assume, considering their state focus on continuous improvement that dates to their 1998 founding, that they are not just using tools -- I hope they are also focusing on the management system of Lean and the Toyota Production System.

Bruce Hamilton, from the wonderful "Toast Kaizen" video is involved, along with his Greater Boston Manufacturing Partnership.

Subscribe via RSS | Lean Blog Main Page | Podcast | Message Board

More Wisconsin Lean

Lean manufacturing in action is a beautiful thing

The link above is a column in a Wisconsin newspaper. He visited a plant "a few months ago" and is just now writing about it. I guess the lead times in newspaper columns are that long?? Or, the writer is a slacker.

Not surprisingly, the columnist writes about Lean tools -- that's what you can see when you tour a factory, 5S (or 6S*) and kanban. It's hard to tell, without talking to people and asking questions, if a Lean mindset is taking hold. Posters aren't a good indicator, necessarily:

"Ongoing awareness: From the moment I walked into the reception area, I began to see signs of lean — literally. They have 13 large posters that illustrate some concepts or principle of lean. They are visible examples to their employees and the visiting public (especially their customers) of what lean is all about."

The problem with posters is that they might just be platitudes that management isn't willing to support, such as "Quality is YOUR Job." Posters might just be empty slogans or platitudes that end up discouraging and frustrating employees, as Dr. Deming warned.

It's a fairly unremarkable column, but what made me take notice was the reader comment at the bottom of the page:

Yay, lets go lean. Lets use use, manufacturing processes innovated by Toyota 30yrs ago, because that will make us a world leader today. American manufacturing executives in general are ruining our juggernaut, by continuously playing second fiddle. But hey, turning a blind eye and patting ourselves on the back are far easier then actually putting the nose to the grindstone and becoming an innovator. I mean look at Henry Ford, his foresight and hard work did absolutely nothing for himself, or the country.

/sarcasm

I can understand the commenter's point about "let's think for ourselves and not just copy others." Not a bad point, at all. It's ironic that they mention Henry Ford, since the man and the company were indeed an inspiration for Toyota... and now we're all learning back in that direction.

* I don't like the "6S" terminology that adds "safety" to 5S. Not that I'm opposed to safety, far from it. I just don't like calling it out as a separate item. Safety should be incorporated into all we do, every day.

Subscribe via RSS | Lean Blog Main Page | Podcast | Message Board

"Bubble Busters" Busted

El Paso Times - Bubble Busters say farewell

Here's what would otherwise be a nice story about employees working together on kaizen (continuous improvement). The team is being rewarded with a trip to Japan:

"In December, the group, who call themselves the Bubble Busters, will visit their parent company, Yazaki Corp. in Japan and will represent North America in the company's worldwide quality competition."

Wait, hold on.... let me go back to the first paragraph of the article.... enough skimming, did that say... oh NO!

"By the end of the year, the 200 employees of Elcom in El Paso will leave the 18-year-old plant, their company having relocated to Mexico."

Sigh (shaking head). How sad. What a ridiculous juxtaposition of ideas in the same article. On the one hand, the company talks about how professional their problem solvers are, that they didn't have to bring a team from Japan to solve their production problems. Then they are going to turn around and throw those people out into the street so they can save a few bucks on labor by moving Mexico.

They are throwing away that investment in their people. What a shame.

"We wanted to contribute as much as we can," said Xochitl Stukes, the Bubble Busters coordinator.

Thanks. Now get out.

At least Elcom is not saying that it is "Lean" to move their factory to Mexico.

What a depressing story for a Friday. Sorry. I know what will perk me up... let's all go do something productive -- who can we help today? What can we improve? What do we have control over? I'm going to be talking with hospital leaders about Lean, which is always exciting. They're not going to move their hospitals to Mexico!

Subscribe via RSS | Lean Blog Main Page | Podcast | Message Board

Never Too Old for Lean

Chambersburg Public Opinion - 150 years: TB Wood's: Chambersburg's oldest manufacturer:

I don't mean "too old" in terms of people, I mean for an "old company." Here's a story from Pennsylvania about a company that's planning on being around for "the next 150 years."

"Workers today have the advantage of technology that wasn't around 150 years ago. 'The machines are automated. It's not nearly as labor intensive as before,' said Tom Cook, the machine shop large casting value stream manager.

Walking through the machine shop, Cook pointed to a new machine brought in last year. 'Something that used to take three to four days is now on a 35-minute cycle,' Cook said.

About two years ago, the company introduced 'lean manufacturing' methods, designed to improve efficiency and reduce waste. 'Lean system is the road map to where we need to go. Keeping costs down is imperative to be here for the next 150 years,' Crist said."

The company is a survivor, that's for certain:

Chambersburg's oldest manufacturer, TB Wood's has survived the Civil War, the burning of Chambersburg, labor strikes, and a shift to offshore manufacturing.

With about 370 employees locally, TB Wood's is among the largest employers in Franklin County.

I hope their Lean efforts serve them well!

Subscribe via RSS | Lean Blog Main Page | Podcast | Message Board

Lean at PACCAR

PACCAR Achieves Solid Third Quarter Sales and Profits:

Lean success at PACCAR, from their quarterly announcement:

"Six Sigma and Lean Manufacturing Add Savings and Increase Capacity

“PACCAR’s application of Six Sigma tools together with Lean Manufacturing techniques have realized cumulative benefits of $1.5 billion since 1998,” commented Helene Mawyer, PACCAR vice president. “Six Sigma and Lean projects are ongoing at all PACCAR facilities, effectively increasing capacity and generating efficiency gains.”"

It's always great to see companies crediting Lean and Six Sigma (OK, they said "Six Sigma and Lean).

Clearing out my "WIP"

It's time for another segment of "cleaning out the backlog," those articles I meant to blog about, but didn't get to. These are also articles that don't demand too much commentary.... so enjoy:

Where is Gary Convis going now that he's retired from Toyota?

Gary Convis, who we've written about a lot here, is joining up with a private equity firm that is looking to acquire and consolidate auto suppliers. It will be interesting to see who will contribute more for Lean in the auto world, Convis, Jim Press (at Chrysler) or Alan Mulally (at Ford).

Lean Thinking Network | Competing Podcast » Dr. Steven Spear interview, Part 2: Healthcare

This is another outstanding podcast from Dwight Bowen, his second with Professor Spear, this time focusing on healthcare. But, I'd encourage everyone to listen, as Prof. Spear does such a good job of articulating the thought processes behind Toyota Production System thinking.

Hudson company goes to the 'Extreme' - Hudson, MA - Hudson Sun

Here's a story about a company using Lean. Not too much detail, but this quote struck me as odd (and inaccurate):

``Lean manufacturing - it's like McDonald's - make it fresh, ship it fresh,'' said Savage, as nearby workers stacked multi-colored cubicle panels to be shipped

For one, McDonald's lets product sit in finished goods inventory... which means it's not really fresh, right? I'd use Subway or Quiznos of a better example of "fresh" since the sandwiches are build-to-order. Secondly, is McDonald's the first example people think of when trying to describe Lean to people? Odd.

Subscribe via RSS | Lean Blog Main Page | Podcast | Message Board

Sounds Like Lean in Michigan

TOM WALSH: Custom vehicle builder Spartan Motors has a can-do culture

The article doesn't mention "Lean," but it's nice to see a positive story coming out of the manufacturing world in Michigan. No surprise, it's from a small company instead of one of the Detroit Three or the traditional suppliers. It's about a company, Spartan Manufacturing, that employs about 1,000 and builds heavy military vehicles.

Do they have some wiz-bang automation or special technology?

It's not about some unique proprietary product or whiz-bang new technology. Spartan's factories have virtually no automation.

John Sztykiel, Spartan's president and CEO, says it's all about culture and the customer.

That starts sounding like a Lean factory, in a way, right? The factory isn't outsourcing everything it can or trying to rely on cheap labor. They are partnering with their employees and working together to solve problems and to meet customer needs.

It sounds like a very egalitarian culture, which I think sets a good example for teamwork:

None of Spartan's nondescript buildings -- named Plant 1, Plant 2 on through Plant 8 -- is an obvious headquarters. So I drove up to Plant 1, only to be told Sztykiel's office was in Plant 3 on the next street over. Neither he nor other top officers have preferred parking spaces.

Hourly production workers are paid a base wage of $14 to $16 per hour, and everyone is eligible for a quarterly bonus based on return on invested capital.

That's not a really high UAW, but it also seems like Spartan is not trying to be cheap with their employees, either. It's a good sign that turnover is low:

Spartan executives say that worker turnover company wide -- there are also 400 workers at three other locations in South Dakota, South Carolina and Pennsylvania -- is only 5% per year.

"I used to think we were in the automotive business," Sztykiel said, but he has recently decided that Spartan is in the business of solving complex problems for its customers. "And we have a lot more confidence in the American worker to solve complex problems than other companies do," he added.

That's outstanding. They are putting trust in their workers to solve problems. Isn't that what any work or any Lean effort is about, solving problems and improving continuously? I wonder what formal problem solving methods they use, if any?

Again, there's nothing to indicate that Spartan is using Lean methods, but it sure sounds like the culture and the environment would be ready for it.

Subscribe via RSS | Lean Blog Main Page | Podcast | Message Board

Example: 5S and Reducing Waste

www.kansascity.com | 09/10/2007 | To survive and thrive in these days of globalization, manufacturing companies must carve away the fat.

Here's a nice news story that describes 5S and workplace organization as more than just a neatness or cleanliness exercise. 5S is about preventing or reducing waste and it's about making problems readily visible and apparent to employees and managers.

Seasoning and sauce maker Williams Foods Inc. has embraced “lean manufacturing” with a vengeance.

You can see it in the trash.

In its Lenexa facility, cans marked “Trash” are placed on a painted decal on the floor marked “Trash.”

At this point, you might think "uh oh, this might actually be L.A.M.E. instead of lean" but it doesn't seem to be just an exercise in putting tape around everything.

The article continues:

“Before, it was a mess,” said Cannon, an assistant supervisor on the day shift. “We couldn’t locate anything, and the company had to spend more money ordering equipment because nobody could find it.”

The difference is like night and day, according to Cannon.

“Now, we’ve organized everything, and everybody knows where to find what’s needed,” he said. “It’s cleaner, neater and there’s a lot more space to work with. It makes our job a lot easier and much less frustrating."

That sounds great -- they actually have benefits (waste reduction) and 5S is making work easier and more pleasant for the employees.

The risk with 5S is that it, a tool, is viewed as the entirety of "lean." If you're "doing 5S" instead of solving problems, improving performance to your customers, or making work easier for your employees, people might rightfully look and ask why you're doing that, putting tape around everything. Remember that 5S is really a more involved process of workplace organization, including the idea that you locate the most frequently used supplies and tools in convenient and easy to reach locations. You don't just put tape around everything where it's located currently.

Lean in the USA Today

USA Today - Lantech has success all wrapped up

It's a brief mention, but a positive mention of Lean in the USA Today Money section this week. Lantech, a Kentucky company, has had some amazing growth and they credited Lean for at least part of that success:

"...the company switched to the "just-in-time" production methods pioneered by Toyota, which lowered costs and raised quality and delivery speed. The improvements were dramatic, Pat Lancaster said.

Innovation, quality and efficiency are "what allow us to stay competitive" when many manufacturers have shifted their work to low-wage nations, Jim Lancaster said. He added that the company's fastest-growing markets are China and Southeast Asia."

It's always great to see an example of a company that's resisting the urge to offshore and outsource manufacturing -- Lean can be a successful business strategy.

Subscribe via RSS | Lean Blog Main Page | Podcast | Message Board

More Wisconsin Lean

Green Bay Press-Gazette - Tufco growing operations while keeping safety in focus:

Another story from a small company in Wisconsin:

"“It is easy to downsize. Growth is difficult,” LeCalsey said. “There are so many draw-offs of profitability in growth.” The company has adopted the Six Sigma and Lean processes and more than doubled annual wipes capacity in four months, LeCalsey said. He said Tufco has five times less waste than before implementing Lean. “We think we can get another 50 percent on that same equipment,” he said. It was not an easy transition."

The plant has also gone 2 million man-hours without a lost-time injury. That's something to be proud of and an illustration that Lean and safety go hand in hand!

It's also a great reminder that Lean should be a growth strategy. You're going to free up people through efficiency improvements, so it's better to find something productive for them to do rather than killing your Lean efforts with layoffs.

Subscribe via RSS | Lean Blog Main Page | Podcast | Message Board

Not Blowing "Hot Air" About Lean

Fanmaker hot on local production -- chicagotribune.com

Ok, sorry for the headline. I think mine's worse than the Trib's. The article gives credit to Lean for an Illinois company's ability to compete against cheap imports:

"Through sophisticated cost controls, Lakewood Engineering and Manufacturing Co. has made its local manufacturing operations so efficient that the company can compete with low-cost Asian manufacturers on price and speed to market on some items, said David Hirschfield, Lakewood's president and chief executive."

"Cost controls," you say? It's really about Lean. And it's the company giving credit:

"It all comes down to a "lean" manufacturing initiative Hirschfield and other executives launched in the fall."

That's not even a year into their Lean journey. So, it's early into the journey, let's hope they can keep it going.

They *do* build some products in China, but they build the bulkier stuff locally in the U.S.

"What's more, retailers like Wal-Mart and Ace Hardware appreciate the factory's proximity because it speeds delivery of the box fans to their stores."

Wal-Mart appreciates it? The king of outsourcing to China? Really? That's news to me.

The company had been going through the "outsourcing lemmings" phase:

"...began buying products there [China] "because everyone else was," Krauss said. "Now you have to go over there," she said, because Wal-Mart, Home Depot and other major retailers primarily look for products in Asia.

So, which is it with Wal-Mart?

Anyway, back to the real story -- Lean improvement. The company has involved its workforce:

"It started with training workers on the concept of lean and how to identify waste and eliminate it. For the box fan, the improvement process began with more than 15 workers identifying 48 action steps and looking for ways to shorten the process, said Paul DesJardins, vice president of manufacturing and operations."

The article has many more examples of the improvements that were made, check out the link at the top of this post. The writer and the consultant mentioned do bring up the question of "aren't employees worried about layoffs?" The consultant says that Lean companies should find ways to utilize workers who are freed up through efficiency improvements, but it doesn't say directly what Lakewood has done. I hope they aren't laying off employees, or the Lean efforts won't make it too much further than the first "birthday." I hope they're able to do it right.

Subscribe via RSS | Lean Blog Main Page |Podcast | Message Board