The mass production processes of old (think automotive factories in the 1950s) have given way to lean manufacturing and agile manufacturing. These are “pull-from-demand” systems, in which a company does not make its product and put it in inventory, but makes to order, producing only what is sold. The downside is that customers require faster, more complete delivery. Lean manufacturing involves the continuous improvement of processes, with fewer defects and less waste leading to higher productivity. Lean is based largely on the Toyota Production System (TPS), which helped the company to produce its high-quality, lower-cost automobiles. But as Toyota itself proved with its early 2010 recalls, eliminating waste and defects requires constant vigilance. A short list of tactics will help a company jump start to higher productivity.
Identify waste in every process and eliminate it. Lean manufacturing recognizes seven common wastes, all of which diminish productivity and increase the cost of goods sold. The Lean Learning Center defines these wastes as follows (see References 1):
Overproduction — producing more than or sooner than is required by an end user or in-process user.
Overprocessing — doing more than is required and desired by the customer.
Motion — expanding excess motion beyond value-added activities.
Defects — not only part defects, but any defect in the process.
Transportation — unnecessary movement of materials, particularly double and triple handling.
Inventory — because excess inventory is waste. The only good thing that can happen to inventory is to sell it.
Waiting — for for information, people, tools, and materials.
Involve end users in identifying waste. A machine operator is best qualified to tell you when he is forced to wait for sub-assemblies. A warehouse manager is best equipped to tell you how best to configure shelves to reduce unnecessary movement of product.
Create mechanisms for feedback. Toyota (and companies that use the TPS) use two particular mechanisms, the A3 form, and the kaizen. The A3 form (named for the size of paper used in Japan) is simply a way for an employee to suggest an improvement. A kaizen is a structured process (like meetings, even social media) to actively involve those closest to the process to improve the process.
Automate data collection and entry. Manual data entry is reactive instead of real-time, and typically 93 percent accurate at best (See References 2). Automating data collection with radio-frequency identification (RFID), barcoding, and other technology, removes a significant source of error. Companies like Boeing, and its suppliers like Endwave, use RFID to eliminate manual data entry, paperwork and the delays and errors they create on a shop floor.
Rearrange production along cells. Cell based manufacturing arranges machinery, materials and people sequentially, and in close proximity. This eliminates much of the movement and waiting in production, and enables a manager to see a breakdown in the process.
Identify waste in every process and eliminate it. Lean manufacturing recognizes seven common wastes, all of which diminish productivity and increase the cost of goods sold. The Lean Learning Center defines these wastes as follows (see References 1):
Overproduction — producing more than or sooner than is required by an end user or in-process user.
Overprocessing — doing more than is required and desired by the customer.
Motion — expanding excess motion beyond value-added activities.
Defects — not only part defects, but any defect in the process.
Transportation — unnecessary movement of materials, particularly double and triple handling.
Inventory — because excess inventory is waste. The only good thing that can happen to inventory is to sell it.
Waiting — for for information, people, tools, and materials.
Involve end users in identifying waste. A machine operator is best qualified to tell you when he is forced to wait for sub-assemblies. A warehouse manager is best equipped to tell you how best to configure shelves to reduce unnecessary movement of product.
Create mechanisms for feedback. Toyota (and companies that use the TPS) use two particular mechanisms, the A3 form, and the kaizen. The A3 form (named for the size of paper used in Japan) is simply a way for an employee to suggest an improvement. A kaizen is a structured process (like meetings, even social media) to actively involve those closest to the process to improve the process.
Automate data collection and entry. Manual data entry is reactive instead of real-time, and typically 93 percent accurate at best (See References 2). Automating data collection with radio-frequency identification (RFID), barcoding, and other technology, removes a significant source of error. Companies like Boeing, and its suppliers like Endwave, use RFID to eliminate manual data entry, paperwork and the delays and errors they create on a shop floor.
Rearrange production along cells. Cell based manufacturing arranges machinery, materials and people sequentially, and in close proximity. This eliminates much of the movement and waiting in production, and enables a manager to see a breakdown in the process.