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Thursday, September 15, 2011

Ryder’s Five LEAN Guiding Principles

Frequent readers of this blog know I like to share good Lean examples as well as resources you can use to keep learning. Today's post combines both elements into one.

Ryder System, Inc., a provider of leading-edge transportation, logistics and supply chain management solutions, defines their Lean thinking process and principles.

The key to delivering long-term customer value and outstanding business performance, quarter after quarter, year after year, is to implement a lean culture. Lean practices improve quality and productivity by taking cost and waste out of all facets of an operation, from the procurement of raw materials to the shipment of finished goods. In a lean culture, every step in every process must add value for the customer. If it doesn't add value, you strive to eliminate it. At Ryder Supply Chain Solutions, five lean guiding principles govern every activity the company conducts in its own and its customers' warehouses.

People Involvement The most important of the Lean Guiding Principles is People Involvement: engaging every employee to root out waste, eliminate problems and make improvements. Nothing happens in a company without people to drive it forward.

Built-in Quality Principle 2 is Built-in Quality: building quality into every process in the production and distribution of products. With processes designed to make work flow correctly, and tools available to eliminate small problems before they grow large, employees can focus on increasing overall customer satisfaction.

Standardization Principle 3 is Standardization: ensuring all work follows established, well-tested procedures. With processes designed to make work flow correctly, employees have the instructions and tools they need to meet customer expectations.

Short Lead Time Principle 4 is Short Lead Time: improving quality and profitability with a steady flow of inventory arriving exactly when it's needed. Implementing short lead time ensures that a facility can meet increases in customer demand without having to ramp up resources. This results in significant savings, ultimately, strengthening the company's bottom line.

Continuous Improvement Principle 5 is Continuous Improvement: small incremental, ongoing changes that combine to deliver significant gains in quality and efficiency. The stream of continuous improvements creates a powerful and constant force, promoting high performance throughout a facility and producing tremendous employee pride.

Through Ryder's LEAN Guiding Principles, they strive to empower all team members to eliminate waste, complete work correctly the first time, and challenge every aspect of the business to improve. Their end goal is to move the supply chain as fast as possible by raising productivity and increasing inventory turns, all of which delivers operational excellence and measurable ROI to our customers.

So what do you think, does Ryder understand Lean thinking?


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Tuesday, September 13, 2011

Goal: 2 Second Improvement Every Day for Life

Paul Akers describes his approach to teaching lean principles of productivity improvement this way: “All I do is ask everybody to make a two-second improvement a day for the rest of their life.” An accumulation of two-second improvements and a relentless emphasis on lean methods have helped build FastCap from a single product—a peel-and-stick cover for cabinetry holes—into a $10-million-a-year business with dozens of tools and products, and with a goal of introducing at least one product a month.

In this video Paul explains what 2 second Lean means and how this works to transform your environment for a lifetime.






What do you think does Paul Akers have the right approach?


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Monday, September 12, 2011

An Introduction to 5S plus Safety

A reader recently asked me for some information on implementing 5S in their factory. Even though I shared my 6S posters a couple weeks ago I thought I could still share some more. 

5S was developed, as with so many of today’s best practice tools, in Japan. 5S is the name of a workplace organization methodology that uses a list of five Japanese words which are seiri, seiton, seiso, seiketsu and shitsuke. Transliterated or translated into English, they all start with the letter "S". The list describes how to organize a work space for efficiency and effectiveness by identifying and storing the items used, maintaining the area and items, and sustaining the new order. The decision-making process usually comes from a dialogue about standardization which builds a clear understanding among employees of how work should be done. It also instills ownership of the process in each employee.

Some companies will tell you that they implement 6S; 6S being 5S plus the added step of safety. The 6th “S”; Safety, concentrates on safety aspects of our processes, reviewing every action and each area to ensure that we have not overlooked any potential hazards.

The following presentation introduces the 6S (5S plus Safety) methodology:

The principles underlying a 5S program at first appear to be simple, obvious common sense. And they are for the most part. But many businesses have ignored these basic principles when improving their business.  5S should not be overlooked and is widely used by successful manufacturers.



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Sunday, September 11, 2011

Remembering September 11th Ten Years Later

Ten years ago on September 11th The United States of America was attacked by a terrorist organization (al-Qaeda) led by Osama bin Laden. On September 11, 2001 on American soil, terrorist hijacked four planes. Two of them planes purposely crashed into the World Trades Center towers. The third struck the Pentagon and the last, Flight United 93 crashed into a PA field in Shanksville.

Ten years later, the mastermind behind the attacks was killed by our Special Forces (our unknown heroes) on May 2, 2011 after storming his compound in Pakistan. Although, as of right now the "War" in the Middle-East regions continue to rage on.

September 11th will remain a day that we will never forget!

"You can break the foundation of a building, but you can't break the foundation of our freedom!"





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Friday, September 9, 2011

Lean Quote: Gang up on the Problem, Not Each Other

On Fridays I will post a Lean related Quote. Throughout our lifetimes many people touch our lives and leave us with words of wisdom. These can both be a source of new learning and also a point to pause and reflect upon lessons we have learned. Within Lean active learning is an important aspect on this journey because without learning we can not improve.

"The secret is to gang up on the problem, rather than each other." — Thomas Stallkamp

Collaboration provides the cornerstone for engaging others to come to a consensus around critical decisions and problem solving.  Most organizations benefit enormously from transforming their basis for leading and managing to a collaborative workplace. The results from companies that have a collaborative workplace include:

  • Organizations collaborate internally to compete externally.
  • Decisions are faster, of higher quality, and customer-driven.
  • Decisions are made on the basis of principle rather than power or personality, resulting in greater buy-in and impact.
  • The energy of the workplace is focused on the customer rather than on internal conflicts.
  • Cycle time is substantially reduced and non-value adding work eliminated.
  • The productive capacity of the workplace increases.
  • Strategic alliances that might have failed not only succeed, but build trust and produce extraordinary results.
  • Return on investment increases dramatically.
  • Span of control increases substantially.
  • The workplace takes on full responsibility and accountability for the success of the enterprise, to the point where some teams have themselves.
  • Conflict is reduced as work relationships open up and  build trust.
  • The fear is gone - change is seen as a positive opportunity.
  • The organization is self-sufficient in sustaining the ongoing development of the company.

Creating a collaborative workplace means making a commitment to a new way of working together.  It is not a quick fix.  It is an ongoing process.



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Thursday, September 8, 2011

Guest Post: Reduce, Reuse, Recycle...

Today's post is by Rich Hoover, the Director of Sustainability for Libbey Glass, global manufacturers of drinking glasses and other glass tableware. Libbey has been working at integrating Lean into their global operations since 2004 and have recognized sustainability as a business imperative since early 2010. In this post Rich explains the important hierarchy of the three R's and the most effective way to eliminate waste.


We typically see or hear these words in this order for a reason. This hierarchy encourages us to reduce consumption first, which is the most effective way to eliminate waste. The least costly resource or material is that which is never used. Reuse is next in line, which is simply using an item over again for the same or different purpose than originally intended. Finally, recycle, which means to make new products from used or old materials. Let’s look at each of these landfill alternatives in more detail…

Reduce
The place to begin is to use less. Consumption reduction decreases the amount of natural resources used throughout the life cycle of a product, from extraction of raw materials, to several layers of transportation, to manufacturing or processing, to use by consumers. Reduction isn’t easy. Most consumers think “bigger is better”, “new beats used” and “convenience is key”. When you shop, look for things that will last…things that are not just durable and well-made, but useful and attractive. The extra money you spend will be offset by the money you don’t spend replacing them. Maintain and repair items to keep them working and looking good. Other ways to reduce include: buy products made from post-consumer recycled materials, especially paper products; choose energy-efficient electronics, appliances and vehicles; buy local when possible (less transportation = less energy used); look for items with minimal packaging; cut back on water use; and turn off electronics and lights when not needed.

Reuse
Before you recycle or dispose of an item, consider whether it has some life left in it. Reusing items keeps new resources from being used for a while longer and old resources from entering the waste stream. Reuse can take many forms. Find alternate uses for items such as plastic shopping bags or packaging from new item purchases. Have a garage sale or list items on internet commerce sights to turn used items into cash. Donate reusable items to charity. Books, magazines and dvd’s can be shared or traded. Use your creativity to find endless reuse opportunities!

Recycle
Due to the continued proliferation of curbside recycling programs, it is fairly easy to recycle a number of common household materials…plastic containers, metal cans, newspapers and magazines, and corrugated containers. While recycling is a much-preferred alternative to landfill, recycling has its shortcomings. Recycling rules vary by municipality and the rules are not always straightforward. Also, recycling is beneficial as long as there is demand for the different recycled materials. Finally, resources are needed to sort, transport and reprocess recycled materials into new products. Even with these blemishes, recycling still reduces waste. Recycling ties in to all 3 pillars of sustainability…conserving resources for future generations (people); keeping waste and toxins out of landfills and reduced manufacturing intensity from recycled input materials (planet) and; generating cost savings, job creation and revenue (profit).





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Wednesday, September 7, 2011

Daily Lean Tips Edition #19

For my Facebook fans you already know about this great feature. But for those of you that are not connected to A Lean Journey on Facebook or Twitter I post daily a feature I call Lean Tips.  It is meant to be advice, things I learned from experience, and some knowledge tidbits about Lean to help you along your journey.  Another great reason to like A Lean Journey on Facebook.

Here is the next addition of tips from the Facebook page:

Lean Tip #271 – Determine the pacemaker point of your process.

A pacemaker is any process along the value stream that sets the pace for the entire stream. It should not be confused with a bottleneck process, which unintentionally constrains downstream process due to a lack of capacity. The challenge is to decide where the pacemaker should be located.

Lean Tip #272 – Milk runs can increase the velocity of your supply chain.

A milk run is a multiple-stop transportation route. The same vehicle will pick up at multiple stops or deliver to multiple stops. The milk run is an excellent tool to manage transportation costs while reducing lot sizes and increasing delivering frequency.

Lean Tip #273 – The 8 Guiding Principles of a Lean Fulfillment Stream.

1. Eliminate all the waste in the fulfillment stream so that only value remains.
2. Make customer consumption visible to all members of the fulfillment stream.
3. Reduce lead time.
4. Create level flow.
5. Use pull systems.
6. Increase velocity and reduce variation.
7. Collaborate and use process discipline.
8. Focus on total cost of fulfillment.

Lean Tip #274 – Reduce shipping and receiving costs by focusing precise planning.

The biggest costs in shipping and receiving are equipment and people. Excessive amounts of waste (in the form of waiting, inactivity, and unused inventory) are created when trailers full of materials and finished goods come and go or sit idle without precise planning. Identifying waste in shipping, receiving, and yard-management activities require an understanding of the flow of materials and movement of people.

Lean Tip #275 – Reduce inspection processes to create uninterrupted flow of materials.

Material (and information) should flow uninterrupted from suppliers to customers in a Lean fulfillment stream. Shipping and receiving inspections are non-value added processes and should be eliminated. To do this will require quality-at-the-source and poka yoke (or mistake proofing).

Lean Tip #276 - Make sure you're focusing on things with strong connections to overall objectives.

One of the biggest metrics mistakes is random selection. The best metrics start with the big picture. Identify the overall objective of your company or initiative. State it quantitatively. It should answer the question: "We'll know this is successful when we see _____ happen."

Lean Tip #277 - Select strongly connected success measures that allow you to control outcomes.

Metrics at the lowest layer of an initiative or organization have the highest actionability. A focus on the most actionable metrics is essential for 'moving the needle' of big‐picture metrics. When you identify a problem or opportunity that needs to be addressed, this is the symptom that you will explore for root cause analysis. Start with the observable problem or opportunity, not with possible solutions.

Lean Tip # 278 - Your metrics should be right-sized to your strategy.

Too many metrics create chaos and unnecessary work. Too few metrics will not provide enough measurement to ensure you’re your strategies are supported. Your metrics should provide insights into the progress your agency is making.

Lean Tip #279 - Metrics should be clear and not open to interpretation.

Organizations should figure out the story the metrics are supposed to tell and then stick with that outline. The metrics should describe the extent to which your organization is performing its mission. Metrics should explain your intentions and objectives.

Lean Tip #280 – Start with external metrics that assess your overall performance.

Metrics generally fall into two categories:

Performance Metrics are high-level measures what you are doing; that is, they assess your overall performance in the areas you are measuring. They are external in nature and are most closely tied to outputs, customer requirements, and business needs for the process.

Diagnostic Metrics are measures that ascertain why a process is not performing up to expectations. They tend to be internally focused and are usually associated with internal process steps and inputs received from suppliers.

A common mistake is to start first with your diagnostic measures - measuring yourself internally, rather than beginning with an external focus, namely your customer.

Lean Tip #281 - Expect the best and your employees will rise to that level.

How do you do this? You do it with the words you use. Are you expressing positive expectations, or are you using words (kind of, sort of, we’ll try, we have to, we haven’t done that before, and that will never work) that communicate negative expectations? What does your body language say about you? Does it say, “I’m ready to take on any challenge, and I expect you can also;” or does your body language say “Please don’t give me another problem. I can’t handle it.”

Lean Tip #282 - Take time to show sincere interest in your employees as people.

Understand what your employees are passionate about in their lives. What are their special passions? What are their personal needs? What brings them joy or pain? What are their short-range and long-range goals? Once you understand the answers to these questions, you can move them to a new level of motivation, because you cared enough to ask the questions and show interest in their success. Once you understand your employee’s needs and goals, they will take more interest in understanding and achieving your goals.

Lean Tip #283 – Walk the Talk, they are watching and learning.

Our employees model our behavior. If we are confident about a major change in the organization, our employees will follow our behavior. If we come in late and leave early, guess what will happen? Remember, even when you don’t think someone is watching…they are always watching. Set the example for others to follow.

Lean Tip #284 - Provide Meaningful and Challenging Work to Motivate.

When people feel that the work they are doing is meaningful - makes a difference in some way - and provides them with challenges that stretch them (but also mesh with their ability to achieve them) they become internally motivated. In other words they don't need anyone standing around coercing them into higher levels of performance.

Even the most mundane of work can be motivating if the leader helps the team member put into context the value their work brings either to the consumer or to the organization.

Lean Tip #285 - Design People's Roles So They Can Use Their Strengths

Assigning people to specific tasks and duties that play to their strengths is one of the best employee motivation techniques. Research has shown, more than anything, people who are able to make use of their strengths on a regular basis while at work are more likely to work in teams that perform at higher levels.

When people are playing to their strengths on a regular basis - they feel effective, focused and fulfilled ... a win for them and for their organization. The person becomes more internally motivated ... feeling upbeat and enthused by what they are doing ... and will feel inspired to continue more.


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