Quality Improvement – Besterfield Summary 2 Lean Enterprise OVERVIEW An organization that prioritizes eliminating waste at all levels is said to be lean. Any excess time, work, money, space, facilities, or material that doesn't improve the product or service for the client is referred to as waste. A value-added activity, on the other hand, is one that has to change the good or service; have a client who is prepared to pay for it in cash, kind, or other resources; and be done correctly the first time. This idea encompasses a collection of application techniques, tools, and ideas that give organizations a significant competitive edge in terms of development, cost, quality, and delivery performance. A REVIEW OF HISTORY The Ford Motor Company implemented the majority of lean techniques in the 1920s. At the time, Fredrick Taylor's scientific management concepts and the motion efficiency concept developed by Frank and Lillian Gilbreth were highly recognized. Taylor's work is cited as an inspiration by the renowned Japanese industrial engineering consultant Shigeo Shingo. Lean ideas including just-intime (JIT) inventory control, the power to halt the manufacturing line, time and motion studies, standardized work procedures, and waste removal were all included in Henry Ford's writings.1. Eiji Toyota paid a visit to the three major Detroit automakers in 1950 to get insight on American auto manufacturing. The daily production astounded him. Toyota was only making 40 cars a day at the time, and the Datson model was of very poor quality. A mechanism to decrease or remove non-value-added operations that the consumer was unwilling to pay for was devised with the help of Taichi Ohno and Shigeo Shingo in the end. The Toyota Production System (TPS) was the name given to this system. It was reintroduced and made popular as Lean Enterprise not too long ago.2. SLEAN PRINCIPLES Types and categories of waste, workplace organization, flow concept, inventory control, visual management, Kaizen, and value stream are the fundamentals of lean. Waste Types We must examine the many forms of garbage if we hope to eradicate or minimize it. The first kind is non-value added and required for the system to function; it was covered earlier. Activities that don't improve the product or service include administration, inspection, and reporting. The second kind is referred to as non-value added yet essential to the operation of the system. For instance, shipping oil across the ocean on a vessel does not add value to the product; in a similar vein, the expense of a lean consultant's trip to Uganda would not be considered value added. But in order for the activity to take place, there are two fees involved: transportation and travel. Unevenness or variance in pricing, delivery, or quality can result in a third category of waste. Taguchi's loss function provides a great illustration of this idea. The cost rises when the quality feature deviates from the desired value. A labor center that delivers between 35 and 65 units per hour on average, but on average just 50 units, serves as another example. Overstressing people, things, or systems results in the fourth kind of waste. If equipment is used without sufficient maintenance, it will eventually break down, and if overtime is often needed, it will result in lower performance and burnout. Improved quality, cycle time, cost, and—above all—customer pleasure are the results of waste elimination. types of waste There are seven categories of trash, according to the majority of practitioners. Below is a description of them: 1. Excessive output. Waste occurs when more is produced sooner or quicker than what the subsequent process requires. Transportation, labor, and inventory must increase to accommodate the excess. 2. Holding out. Waste is the idle time or delay that results from an operation waiting for supplies, data, equipment, and other things. One clear example of waste is idle resources. 3. Moving about. Any material movement within the plant is waste since it adds no value. There is a larger chance of injury and a bigger requirement for room the more stuff you transport. 4. Impurities. Wasteful products and services are those that don't live up to client expectations. They often require reprocessing and result in dissatisfied customers. Integrity is ingrained from the beginning. 5. Stock. Any inventory that is part of the value stream is waste since it does not create value. Inventory takes up room and covers up other wastes. 6. Action. Waste is any movement of the body that does not contribute to something. When retrieving materials that are not nearby, walking is necessary and takes time. 7. Additional Processing. Waste exists when more processing is applied to a product or service without adding value. The removal of a gate from a molded item is one example. From the perspective of the client, many of these classifications and criteria may appear excessive, yet they are really acceptable types of waste. Organization at Work To create a productive flow of goods or services, the work environment needs to be arranged according to the five S's: sort, straighten, shine, standardize, and sustain. 1. Classify. Sort all the items into three groups: return the items that belong to another customer or location; move the remaining items to a staging area and label them with the proper identifiers for disposal; and keep the items that are required for the activity to function and group them according to frequency of use. 2. Make straight. The remaining items are structured to minimize or completely remove unnecessary motion. 3. Glow. Make sure your workspace is clear of any debris, including liquids, dust, and grime. Maintaining proper housekeeping creates an atmosphere that makes it easier to identify equipment issues, boosts output, and lowers accident rates. 4. Establish standards. To make sure that everyone utilizing the workplace is carrying out the procedure in the same way, documentation is created. 5. Continue. Charts, checklists, and audits are utilized to sustain the gains achieved in the first four S's. Using the 5S's at a work center or department is one of the finest ways to start your lean journey. Observe that a lot of organizations include safety as a sixth. notion of flow The flow should be constant with little fluctuation from the start of the first activity until the good or service is received by the final consumer. It doesn't pause for inventory, delays, equipment failures, or other waste. One-piece flow—that is, the processing of one unit at a time as opposed to several units at once—is necessary for this ideal scenario to exist (Batch Processing). One-piece flow minimizes wait times and production delays, cuts down on labor and space needed to store and move batches, decreases damage that happens during batch processing, gives flexibility to produce a specific product, and exposes non-value activities. It also shortens the time between placing an order and when it is delivered. Employees are forced by one-piece flow to focus on the process rather than the low-value tasks of inventory management, delays, and other wasteful activities.3. For batch processing, separate equipment is required. Machines can be slower, smaller, and simpler. Automatic and semiautomatic equipment functions effectively as long as it doesn't decrease uptime or lengthen changeover times. Combining automation with manual work calls for a high degree of operator proficiency. Equipment must be nimble and adaptable. The machinery must have fast switching capabilities. The Single Minute Die Change system's narrative is as follows. Ohno informed Shingo one day that a punch press's setup time should be reduced from four hours to two hours. Shingo agreed, but shortly after Ohno remarked that two hours was insufficient and that ten minutes was required, Shingo also agreed. Shingo managed to cut the setup time to less than ten minutes, although it took some time. One-piece flows often require setup periods of one minute these days. Cell technology is another facet of one-piece flow. Different kinds of machines that carry out distinct tasks are arranged in a precise order to allow for both one-piece flow and flexible human resource deployment. People find their job more engaging and difficult when cells are designed properly.4 Volume and mix must be used to level production in order to prevent overstressing of workers, machinery, and the system.5 Inventory management The concept of just-in-time (JIT) inventory control is widely recognized. It denotes that the appropriate material is delivered in the necessary quantity to the workplace at the appropriate time—neither too early nor too late. This idea is facilitated by one-piece flow. The system pulls in products and services in response to actions taken by internal or external customers. The restocking of an item in a hardware shop serves as an illustration of a pull system. Each item in the store has a designated spot, or bin, with room for a certain quantity of things and a tag that identifies it. It is time to restock the item when the area is empty or almost empty. A computerized system connected to the bar code at the checkout counter can also produce the signal. A pull signal or kanban is used in a lean organization to start the replenishment process. A card, container, blank space, bar code, or other trigger can be used as a kanban. The product's specifications and the necessary quantity are listed on the kanban. The German term for "beat," takt time, is a statistic used in inventory control. It is the rate of production determined by the rate of demand from customers. For example, the takt time is 12.0 minutes ((11 3 60)/55) if the daily demand from customers for vehicle insurance is 55 and the processing time that is available is 15 hours. Take note that this assumes level production. From the raw material product to the customer purchase, the complete logistics process is managed by a computerized system. Graphic Administration A lean organization makes extensive use of the well-known proverb "a picture is worth a thousand words." Throughout the building, information regarding customers, projects, performance, goals, and other topics is displayed visually. Signals are often used to notify individuals of issues at a specific spot. Kaizen The Japanese term "kaizen" refers to a philosophy that describes management's ongoing encouragement and implementation of little changes that include everyone. The method that makes the process more effective, efficient, controllable, and adaptive is the process of constant improvement in tiny steps. Usually, improvements are made without the need for expensive equipment or complex methods, and at little to no cost. By dissecting intricate processes into their component parts and then refining them, kaizen focuses on simplicity. Kaizen is mostly dependent on an environment where operators are encouraged to make recommendations in order to continuously and incrementally improve their work or procedure. An illustration of a Kai-zen-style upgrade would be the conversion of a black welding cubicle to white. Weld quality is little improved as a result of this modification, but operator satisfaction is much increased. Any problem-solving technique, including the "Define, Measure, Analyze, Improve, and Control" (DMAIC) method, can be applied to assist in putting Kaizen principles into practice. Recreational vehicle maker Fleetwood has effectively incorporated Kaizen. Cycle durations were lowered by 22% and work-in-process was reduced by 65% overall in 1998.Six In the early 1990s, Copeland Corporation, a producer of reciprocating compressors for air conditioning and refrigeration, started implementing Kaizen and lean operations in one of its factories. Since then, floor area has decreased by 33% but production has doubled. Furthermore, a 35% decrease in time per unit has been achieved. A Kaizen Blitz is a three to five day improvement program that is extremely focused and actionoriented, where a team improves a particular process right away. The ultimate objective is to use the enhanced procedure and standardize it without requiring a sizable rise in capital costs. "Plan, Do, Study, Act" (PDSA) or any other problem-solving methodology is used in a successful blitz. Value stream mapping (VSM) and fundamental training are necessary, and they should be distributed throughout the blitz period according to need-to-know frequency. It is crucial to begin implementation as soon as it is practicable, instead than waiting to have the ideal plan for improvement. To shorten the time it takes to secure a coal mining permit, managers, operators, attorneys, regulators, technologists, and end users are gathered in one room for five days. Using colored sticky notes, the intended activity is carefully drawn out to show the points at which choices need to be taken, documentation needs to be submitted, sign-offs need to be acquired, and so on. Next, brainstorming takes place to enhance the procedure. LEAN ENTERPRISE BENEFITS One excellent illustration of the advantages of lean organization is the Tyco Flow Control factory in Chennai, India. Here are a few of the outcomes: 94% more deliveries were made on schedule; the lead time was cut from 150 days to 56 days; 68% less material was moved; the machining capacity was raised by 200%; the cycle time was balanced; and the incoming inspection took just one day instead of sixteen.8 Toyota's performance serves as clear proof that lean enterprise is a successful strategy for manufacturing quality improvement, waste elimination, lead time reduction, and overall cost reduction. Lean enterprise may also be advantageous for other kinds of businesses, including those in the building, education, and healthcare sectors. The following lean enterprise outcomes were reported by Madison, Wisconsin-based Veridan Homes: Defects were cut by more than 50%, drafting time was cut by more than an hour, inspection time was cut by 50%, and cycle time was cut from 32 to 15 days. The entire design time was reportedly cut from 20 days to 1.2 days, according to Tracer Industries Canada Ltd.9. Marketing students at the University of Scranton were able to decrease the amount of time the admissions staff had to respond to questions from thirteen days to less than a day, and do away with faculty participation. The processing period for new student applications was cut from 88 days to less than one day. The system was totally out of control, making it impossible for the pupils to map the procedure.10 Lean enterprise was employed by Marion, Illinois's Heartland Regional Medical Center to reduce costs, increase quality, and withstand an accreditation audit.