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We are a $400 million medical equipment business company and our plant that produces products for the USA market.

 

The production line was losing parts that dropped on the floor. Our conveyor belts develop static electricity that makes the parts tick and not drop. Where they should. Various activities had been taking place to try to reduce the static, but it wasn’t given the desired result. We lost approx. $2000/week of products.

 

Using a Kaizen process, the team started to gather data to see where we had the biggest loss and we added video to the data collection to see what actually happened when they didn’t drop as they should. We tasked a couple of team members to read up on static electricity and ways to reduce or eradicate it. We studied the process for 4 days 24 hours per day and counted all parts in all defined areas. We made a graphical way of organizing the data. First the data was hard to understand since we didn’t know enough of static electricity. The two members who studied it came back with some knowledge and we learned about a type of equipment that is call ionizer and the effect they could have.

 

We set up a trial plan to establish some practical knowledge of the ionizer and was lucky enough to borrow one. Using a logging sheet and learning from the data we could see that with the correct angle of the ionizer we could completely eliminate the loss.

We mounted an ionizer and set up visual markings so it would be kept in the correct angle. We developed One Point Lessons and trained all operators to ensure the ionizer was set in the correct position in the beginning of every shift.

A detailed execution plan was finalized with sign off by the Management Team.   

 

This even didn’t take more than 2 weeks including the 4-day s of data collection and saved an annual amount of $100000.

 

We keep logging the loss of parts using our daily meeting system, Performance Control.

 

AskLDI Case Studies – Medical Equipment Production Kaizen

Analysis of the production system resulted in the identification of output from the manufacturing area is too low. Further drill down analysis identified that short stops was a chronic problem. Short stops made up to a total of 18% lost production with 50% of the short stops coming from raw material feed.

Extra sales were not realized since the customers could purchase more products then we can manufacture. The sales Team identified that all extra production could be sold immediately.

In my role as Chief Production Engineer I was given the task to reduce the short stops of the material feed by a minimum of 50%

We used a global team of internal stakeholders from Sales, Customer Service, Design, Quality and Production personnel.

My mandate was to use the tools and techniques that I learned thru my Practitioner Certification training. Also to utilize the PDCA approach to ensure that sustainability was achieved. We would also recommend where we could expand the improvements throughout similar processes.

We used the Process mapping tool and created a current state, and future state map. We found 11 opportunities to reach the future state VSM with a 90 day execution plan. One of the opportunities was reducing short stops in key manufacturing machines. We found that the material handling, shape and size of the raw material were the drivers for short stops. We increased the size to 40% more every feed. To ensure that works we created a fixture that keeps material in the correct form.

Short stops due to raw material feed reduced by 55%. Productivity increased by 7.5% and we realized a cost savings annually of $110,000

AskLDI Case Studies – Manufacturing Sector Short Stop Reduction

Our business was the manufacture of medical equipment. The output from the manufacturing area was not at expected levels and the product variation was high. More sales were not realized since the customers could purchase more products then we could manufacture. The business situation is very positive and all extra production can be sold immediately.

Our Teams goal was to increase the manufacturing output by 20% and reduce the variation to 3.5%

I was given the task to lead this initiative based on my Practitioner enrolment to achieve my certification.  We used a global team of internal stakeholders from Sales, Customer Service, Design, Quality and Production personnel.

I had to train my Team on the PDCA approach, and use the tools and techniques gained from my training. This would ensure sustainability and expand the process on a global level

We used the Process mapping tool and created a current state, and future state map. We found 11 opportunities to reach the future state VSM with a 90 day execution plan. One of those opportunities was the pacing output from the bottle necks (two machines working in parallel) so the workload would be more balanced. This enabled the following steps could focus on production and not on moving big batches of product to the next process.

By reaching the future state Process map, the results in the production step (after the bottle necks) increased their utilization from 32% to over 85%.

The product variation was achieved at 3.5%

AskLDI Case Studies – Manufacturing Sector Medical Equipment

This community owned non-profit system was having problems delivering support to the elderly people in their care. The elderly lived in their own homes and received a visit from a Nurse to provide medical, food, cleaning, etc. Typically a nurse was spending 2 hours out of 5 in their car driving around to their patients. They were stressing to get to them all and had very little time for every individual person.

 

My Team (I am a Certified Practitioner) was tasked with reducing the travel time the nurses took, and increase the value delivered to the patients, by ensuring enough time for face-to-face activities.  We were also tasked to improve the service and satisfaction for the patient and their families.

 

We used a Team of nurses and trained them in tools and methodologies that were learned thru the Get Certified Institute. We used the PDCA approach as well as problem solving techniques.

We were also given the directives that no head count increases was allowed, and all current health care standards had to be met or exceeded.

We out lined the current state to see where all the patients lived. The different nurse teams were identified with different colors.  We then put a colored pin for every patient corresponding to the Nurse Team color. We grouped and consolidated nurse groups whick meant less travel.

We visited with all patients to enable the change in nurses for them and promised a higher level of service.

The Nurse reduced their need cars since the distance between every patient was much shorter. Every nurse could now have an extra 20 minute personal time with every patient to ensure Face-to-Face time increased.

AskLDI Case Studies – Health Care Region Elderly Care

This community owned non-profit system was having problems delivering support to the elderly people in their care. The elderly lived in their own homes and received a visit from a Nurse to provide medical, food, cleaning, etc. Typically a nurse was spending 2 hours out of 5 in their car driving around to their patients. They were stressing to get to them all and had very little time for every individual person.

 

My Team (I am a Certified Practitioner) was tasked with reducing the travel time the nurses took, and increase the value delivered to the patients, by ensuring enough time for face-to-face activities.  We were also tasked to improve the service and satisfaction for the patient and their families.

 

We used a Team of nurses and trained them in tools and methodologies that were learned thru the Get Certified Institute. We used the PDCA approach as well as problem solving techniques.

We were also given the directives that no head count increases was allowed, and all current health care standards had to be met or exceeded.

We out lined the current state to see where all the patients lived. The different nurse teams were identified with different colors.  We then put a colored pin for every patient corresponding to the Nurse Team color. We grouped and consolidated nurse groups whick meant less travel.

We visited with all patients to enable the change in nurses for them and promised a higher level of service.

The Nurse reduced their need cars since the distance between every patient was much shorter. Every nurse could now have an extra 20 minute personal time with every patient to ensure Face-to-Face time increased.

AskLDI Case Studies – Health care industry Surgery Supplies

We are a $60 million Food Production business company and our plant that produces meat packed for consumers.

 

The OEE (Overall Equipment Effectiveness) analysis showed us that changeover of a line was limiting our ability to produce the number of variants we needed. The changeover time was too long and the variation between operators around 80%.

 

Using the SMED process, our team (who now are Practitioner Certified) worked with the team of operators and followed the SMED process. We used the 8 step approach to make sure we didn’t miss anything and found the move internal to external to be very effective, as an example.

 

We used a Team Board to visualize our work and it helped us to stay on track. We had our Management visiting every morning to get support and to allow them to be informed. They helped us with the Team Letter and to set up the follow up as well.

 

Every step was followed even if it was hard to make sure everything got done and it paid off in the end. We have sustained the implementation well.

 

After completion of the action plans, the machine changeover for the chosen changeover type was reduced with 79% and the variation was +/- 5%. We saved EUR 390000 annually. We are very proud of the outcome.

AskLDI Case Studies – Food Production SMED

Food Production – Kaizen

 

We are a $25 billion food business company and our plant that produces dried product for industrial and food service applications.

 

Throughput on machine #3 has slowly reduced from 13,500 lbs. / hr. to 12,000 lbs. / hr. over a period of 3 yrs. This increased the number of days the machine must be in operation to complete the annual workload that lasts approx. 5 months. This resulted in $140,000 of additional operating costs. Several ad hoc changes to the machine have been made over the past 3 years with no measurable impact on throughput.

 

Using a Kaizen process, my team (Practitioner Certified) facilitated a team of Operators, Mechanics, Engineers and Supervisors to utilize problem-solving tools and techniques to restore machine #3 throughput back to 13,500 lbs./hr.  The start of the next pack season was only 3 months away, so corrective actions needed to be implemented immediately.

 

The Team members used the Kaizen approach with documented Kaizen sheet. The appropriate root cause analysis tools were used to attack this problem

A detailed execution plan was finalized with sign off by the Management Team.   

 

The Team took a GEMBA walk to fully understand and validate the function and current condition of the equipment. We then created and grouped the info into 4M Fishbone diagram. The top 5 issues in frequency were run through the 5Why analysis to identify root causes. A complete list of key issues/counter measures(using the countermeasure ladder) was generated and an action plan to close was agreed upon by the team and presented to plant management for buy in.

 

After completion of the action plans, machine #3 throughput reached 13,500 lb./hr. throughput. All changes were documented, visual controls were added to the equipment, a maintenance plan developed, and key operators were trained on proper set up and operation of the machine.

 

 

AskLDI Case Studies – food production kaizen

The Energy industry is getting more and more price competitive. Our competitors are under cutting prices to win the business. We have defined a key KPI in the market that enables us to keep prices on a somewhat higher level, if this KPI is at an outstanding level. The KPI is Lead time from order to delivery. A major part of that lead time is design and release to manufacturing

The Lead time for Design request to delivery of product is too long averaging 38 days. We have lost business as a result.

My Team was set with the task of a reduction of lead time from incoming design request, to product release for manufacturing.

The target was set to a Lead Time of 10 days

We used a universal cross functioning team of internal stakeholders from Sales, Customer Service, Design, Quality and Production.

We used the PDCA approach with an internal Practitioner Certified led facilitator, to ensure sustainability and expanded the process on an international level.

We created a Process map to understand the current state and identified the losses. The Team was trained in flow and design to deliver methodologies. We developed a future state map and identified 8 projects that would take us to our target. All projects were successfully executed using Practitioner Certified support, with all project KPIs met.

 

The results were Lead time reduced from 38 days to 3 days

We secured mew business as a direct consequence with annual revenue of $850,000

AskLDI Case Studies – Energy Industry

We are a $40 million hydraulic component business company and our plant that produces cylinders to mobile equipment.

 

We had done a flow analyzes and found that a CNC machine was limiting our ability to produce the number of variants we needed. The set-up time was too long and the variation between operators around 100%.

 

Using a SMED process, our team (they are now Practitioner Certified) worked with the team of operators and followed parts of the SMED process. We chose to concentrate on two things.

  1. Training of operators
  2. Moving internal work to external work

 

We used an A3 sheet and worked for one week. We followed the PDCA approach to the focused areas and had Management visiting every morning to get support and to allow them to be informed. A detailed execution plan of the training for all shifts and replacement operators was finalized with sign off by the Management Team.   

 

We video filmed the set-up we chose to focus on and chose the most experienced operator to learn as a team, he also learned since some team members had a really good way of dealing with some tasks. We watched the video together and discussed the content and mad e the detailed plan together before developing One Point Lessons and started to train everyone.

 

After completion of the action plans, the machine set-up for the chosen set-up type was reduced with 53% and the variation was +/- 5%. We kept the follow up on our daily meeting board to. Make sure we hold the gains.

 

AskLDI Case Studies – Component Production SMED

We are a $90 million Automotive product business. We make components for cars.

In one of our production cells we found that our OEE (Overall Equipment Effectiveness) was just over 50% and we struggled to deliver. The OEE was varying a great deal and we found it stressful to try to meet the demands.

We started to collect data for short stops (minor/small stops) because we didn’t have that many breakdowns. Our data showed that we had operator missing for 38% of the time. We added a spaghetti chart for some operators to understand movements.

Using a Kaizen approach and PDCA thinking, we gathered the data and found that operators where asked to do several activities away from the machines, such as first piece inspection, moving material, data logging, SPC, etc. We locked at the countermeasure ladder and as a team we developed an idea to add a water spider. The reasoning we had was that the activities outside of the machine has to happen, so we have to find a way to do that without losing production time. A cost and benefit calculation showed that if we could add one person, we could eradicate close to 100% of the short stops.

The presented the findings and the calculation to the management who realized that we were correct.

We added 1-person per shift and followed the short stops for 2 months.

We found that we still had shorts tops and the team met again. It became clear that we needed a signaling system to alert the water-spider. We added Andon lights to support that and kept following the data. Loss eradicated.

We increased the sales and output and the cost was deducted from the calculation. (I’m not allowed to share the USD for that)

We made sure we had SOPs for all activities and trained all persons.

AskLDI Case Studies – Automotive production kaizen

The Classical follow up approach

If you work in a C-suite or you’re running a company following KPIs to see how you’re progressing and what’s happening in your organization is important and a key part of the Leadership process. I would ask you to rethink how you do that a little bit, because what happens in your organization doesn’t show up in the KPIs. That the result, right? It’s the result of capable people performing in processes, bringing value to your customers at the results in your business KPIs.

The questions that follow a problematic KPI

So what questions do you ask the organization when the KPIs aren’t showing the right numbers? One thing that would be a don’t in my world is to say, “What happened? What have you done about it,” and similar questions. If you constantly ask questions like that, people naturally go into defence mode. They can say any crazy thing that they can come up with that’s not true, just to manage the situation with you. In worst case, they might stick to it, so they’re working on the wrong things.

The better approach

What is the right thing to do then? Well, here’s my thinking. If capable people performing in processes is what delivers your value and your result, the concentrate on the processes. If the result doesn’t show up like it should, the KPIs are on a sad trend. You could ask questions like: What process or which processes contribute to this KPI? Have you analyzed the process to find out if anything has happened to make the process under deliver or if anything in the process could be done better? Do we need to repair anything in the process? Questions like these could take the focus to the process and the discussion could be constructive.

Even more questions to consider

How often do you analyse the process? or maybe What type of analysis tool did you use? because people sitting down around the table spit-balling ideas might not be an analysis as such, you might want to ensure it’s done as a team. I would concentrate on the process and understand what has malfunctioned in the process. I would stay away from questions that threatening people in a sense. You might not do it intentionally of course, but people feel threatened by questions, “What have you done,” what if there’s a better way?

Your end goal

The organization is supposed to improve and you ask them to constantly do that, you could also ask yourself to improve your leadership style, right? That wouldn’t be too much to ask, and the fact is that when people see that you act differently that can be a good motivator for the organization to do the same. Concentrate on the processes, ask people relevant questions around the processes to understand how the KPI is affected. Therein lies the secret to success.

Johan Majlov, CEO Lean Dimensions International

LetsDoIt@askldi.com

Hey CXO stop being so predictable

We get a lot of questions about metrics, different types of metrics to use, and in this case, I want to talk about what good metrics are is for lean implementation of our lean model. What is a good metrics? I think asking that question is a bit too simplified because there are no standard metrics is that I think you can take off the shelf for any company really.

 

How do you think then? What is the thought process around it? The way you need to think about metrics is basically starting with what is the vision? What are you trying to achieve with implementing a lean thinking, lean model, or lean implementation in general? Because it all starts with where you want to go and the work on the vision should not be underrated in any way because often we try to shortcut that by writing something down that’s important to something you should say when you write down visions.

 

I even heard some people talking about some type of online system that generates a vision for you. If you just enter some keywords. In the way, we think, it doesn’t make any sense because if you want to get people to buy into a future where they do work and where they must work differently, you need to make the… Give them a good reason and the best way of giving people a good reason is to include them in the reason.

 

Include the people who do the work in the vision. Then, from the vision, you build these different paths, of course, but to measure anything you measure speed towards the vision and the direction, and we use something called KPI for that, right? The key performance indicators.

But for this specific session, I want to talk about the importance of creating the vision and then the KPIs, not the other way around. In many businesses, they already have the KPIs and said this is the only thing we need to fulfil. In fact, our vision is to fulfil the KPIs. That doesn’t make a whole lot of sense I’m afraid and, that again is too simplified because there’s no reason for the people in your organization to buy into KPIs because it doesn’t mean much to them. What do you want to start with is to put as much census into your vision as possible? Get a real reason why people should be together with you in the future, which for me is the definition of vision. Start with that.

Find the metrics are for later. If you stay tuned on this channel here and #opex2, you can find more information about what good metrics will be after you’re set up the visions. I’m going to talk a little bit about that later, but if you follow us, you will get to know more about that for sure. And in this little session, I can’t stress the importance of vision, enough.

Johan Majlov, Founder and CEO Lean Dimensions International

LetsDoIt@askldi.com

Lean Implementation, Metrics, and Vision