Lean in Six Steps

8/19/2019 Lean in Six Steps

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FIGURE 1FIGURE 1

Lean in six stepsThe right best practices can drive

a company’s complete transformation

By Walter Garvin

Keeplean

managementseparate from

the lineof business

Adopta standardized

approach

Involveeveryone;

be sure theyknow the score

Promoteproject

replicationthrough ashared

repositoryRecognizeand reward

success

Benchmarkagainst

world-class leanpractitioners



May 2015 | Industrial Engineer43

As a management philoso-phy, lean manufacturing hasbeen adopted by thousandsof organizations to reducewaste, increase efciencyand provide a framework for

continuous improvement.Although lean principles originated

decades ago, primarily at Ford and Toy-ota, and have been rened over time byresearchers and practitioners, there is nosingle blueprint for implementing a leanprogram. In fact, practical applicationvaries widely because the lean manufac-turing “umbrella” encompasses dozensof different systems, although most sharethe same fundamentals.

The variation among these systems

shows that lean is not a one-size-ts-allapproach. The Toyota Production Sys-tem, one of the earliest and most success-ful modern iterations of lean, is designedfor high-volume, low-mix productionenvironments.

However, lean principles also can beapplied successfully in a wide spectrumof other organizations, including low-volume, high-mix enterprises. The keyis to understand fundamental lean prac-

tices and thinking and make thought-ful choices and adaptations to meet thespecic requirements and goals of theorganization.

Many lean experts agree that a suc-cessful implementation is far from easy.It requires extensive planning, analysis,training, communication and, perhapsmost importantly, ongoing vigilanceto sustain benets and advance the pro-gram.

Although each organization must fol-low its own journey, sharing experiencescan help avoid pitfalls and wrong turns.So let us examine the following six bestpractices that could benet manufactur-ers that plan to implement or rene alean program.

1. Keep lean managementseparate from the lineof businessAchieving success with a new lean pro-

gram depends on many factors. One ofthe most important elements is the waythe internal lean infrastructure is de-signed. Lean is a major undertaking forany organization, requiring strong com-mitment from the executive level downto the production oor.

To avoid conicting priorities that candelay or derail the initiative, it is best tocreate a separate organization whose solefocus is successful lean program imple-mentation and operation. For instance,

Jabil Circuit Inc., a global manufactur-ing services company, began by usingan integrated program for several years.However, the impact was not as great ascompany ofcials had hoped.

Therefore, in 2008, senior manage-

ment made the commitment to replacethe ad hoc function with a new and sep-arate lean organization. The initiativereceived additional impetus from execu-tives in 2010, marking the true start ofthe current program.

Here are ways to enhance your inter-nal lean infrastructure in any organiza-tion:

• Assign a lean manager to each man-

ufacturing facility. This individualacts as the sensei, or master teacherof lean techniques. Make the posi-tion prominent and important inthe organization, reporting directlyto the facility’s top person.

• Form a lean council to act as thesteering committee for lean projectsand activities at each location. Givethis group responsibility for turningstrategy into action and ensuringthat lean closely aligns with busi-ness goals and requirements. Thecouncil also should be charged withdriving a lean culture throughoutthe facility.

2. Adopt a standardizedapproachWhether an organization is global orregionalized, standardization is a criti-cal tool for root cause analysis, outcomemeasurement and project replication,

which can expand lean benets expo-nentially.

Standardization is especially impor-tant in problem-solving. Lean focuseson nding the root cause of an issue,not simply targeting the symptoms. Tosolve a problem permanently, the rootcause and all contributing factors mustbe eliminated from the system, processor infrastructure.

There are many lean problem-solvingtools available in the public domain, in-cluding plan, do, check, act (PDCA);5-why analysis; Ishakawa (shbone) di-agram; the Six Sigma process of dene,measure, analyze, improve and control(DMAIC); dene, measure, analyze,design and verify (DMADV); and fail-

ure modes and effects analysis (FMEA).The key to achieving lean success

lies not in what tools the organizationadopts. Rather, success is embodied bythe consistent use of the chosen toolsacross all functional areas and locations.

Further, standardization enables youto replicate projects at other sites in theorganization. Duplication or adaptationof an existing lean project is easier wheneveryone is familiar with the method-

ology and format of a project. Finally,reporting of results is more meaningfulwith apples-to-apples comparisons.

Reporting is particularly important inthe early stages of lean, when manage-ment tends to focus on hard numberssuch as cost reduction and efciencyimprovements. Meeting executive ex-pectations by providing regular, detailedmetrics can help ensure continuing sup-port for lean. On the other hand, lean’svalue extends beyond these areas to en-compass “soft” benets of customer sat-isfaction and loyalty over the long term.Reporting can capture these gains aswell.

Jabil’s lean team developed a frame-work for reporting on lean projects thatprovides standardization yet allows ex-ibility to choose the appropriate format.Reports range from a one-page sum-mary document that simply presents theproblem and solution to a more in-depth

A



44 Industrial Engineer | www.iienet.org/IEmagazine

version of the problem-resolution ap-proach to a comprehensive, highly de-tailed and illustrated document that maytake six to eight weeks to prepare.

3. Involve everyone;be sure they know the scoreLean success has broad and deep aspects.Methodology and reporting shouldbe consistent horizontally across everymanufacturing unit; employee involve-ment should be vertical, extendingthrough all layers of the organization.

Employee understanding of and en-gagement in lean, whether identifyingareas for improvement, leading projectsor simply helping to carr y out objectives,are the foundations for a lean culture of

proactive problem solvers. Jabil providestraining for employees, such as a one-week course for shop oor workers tohelp them identify and eliminate wasteand three levels of certication modeledafter the Shingo, AME, SME and ASQlean certication program, plus a blackbelt in advanced problem-solving usingSix Sigma.

Just as important as employee educa-tion and training is day-to-day aware-

ness of the status of lean initiatives. Likea basketball scoreboard, prominent, vi-sual updates keep employees informedand motivated and promote team spirit.A visibility wall in each manufacturingfacility is an important best practice forongoing engagement and adherence tolean goals.

These walls should show the desiredresult, illustrate the gap between thatresult and the current situation, de-scribe specic roadblocks and identifyactions being taken to overcome them.For maximum impact, these conceptsshould be presented graphically and inclear language.

Each Jabil facility has a prominent andeasily viewed “blue wall” that is updateddaily to keep project status top-of-mindand align performance with businessobjectives. These blue walls are not justfor visibility, as they are designed to berelevant to the employees at the facility.

4. Promote project replicationthrough a shared repositoryAlthough a great deal of lean activity fo-cuses on the individual manufacturingfacility, a typical corporate goal for theprogram is to share lessons learned withother sites in the organization. Replica-tion of a successful project or its com-ponents drives standardization, avoidscostly duplication of effort and acceler-ates process improvement.

However, in a large, global companysuch as Jabil, replication can present abig challenge. For example, a facilityin Memphis, Tennessee, was setting upa new production line and had no ideathat a similar line producing the sameproduct had been established recently

at another plant in Suzhou, China. Itwas understandable: These two facili-ties are halfway around the world fromeach other and do not share a commonlanguage.

Luckily, someone was able to connectthe two facilities, or the Memphis facil-ity would have spent a lot of time andeffort repeating the work already doneat the Suzhou plant.

Since word of mouth is a hit-or-miss

approach to sharing information, Jabil’slean team developed eKaizen, a compa-nywide system that enables knowledgesharing, aggregates and displays deploy-ment metrics, tracks lean certicationsand powers a best practice competition.This in-house-developed electronic re-pository stores information on the com-pany’s many lean projects worldwide.

The employees designed eKaizen toreplace a mix of previous methods, suchas spreadsheets and local database tools,with a single online system. It is easy tosubmit a project, search for informationon projects that have been done by otherplants and pull metrics for trending. Fea-tures include ease of use, an attractiveinterface and social media functionality.A dedicated team manages and updatesthis tool, which currently contains morethan 120,000 projects. From October2013 to 2014, more than 90,000 projectswere submitted.

The next phase of eKaizen is ePro-mote, a system currently in developmentfor sharing and showcasing best practicesacross the company. Any employee willbe able to submit a best practice for re-view by the plant lean manager. If ap-proved, the best practice write-up, vid-eo and photo will be displayed by thesearch engine.

5. Recognizeand reward successA corporate recognition program is an-other great way to drive project replica-tion and increase employee involvementand enthusiasm. Showcasing notewor-thy lean projects through a competi-tion or similar type of awards program

can raise awareness of successes and bestpractices. Further, the chance to shine inthe eyes of peers and senior executivescan inspire facilities and individual em-ployees to increase their lean efforts.

The Deliver Best Practices programat Jabil is an annual competition thatalways attracts tremendous interestfrom employees worldwide and strongsupport from the executive team. Thiscompetition goes through ve elimina-

tion rounds to identify the best projectin each of four categories: operationalexcellence, customer satisfaction, hu-man development and social and envi-ronmental responsibility. Deliver BestPractices culminates in high-visibilitypresentations by the nalists to seniorleaders and the board of directors at Jabilheadquarters. Winners receive prizesand global publicity.

The 2013 winner for operational ex-cellence, Jabil Shanghai, addressed cost,space, waste and customer response chal-lenges posed by the production of smallquantities of many different, specializedproducts (low-volume, high-mix).

The 16-month, cross-functional man-ufacturing process optimization pro-gram transformed a traditional “push”approach with a new “pull” systembased on the just-in-time model. Thissystem uses automated vehicles thatmove around the warehouse to collect



May 2015 | Industrial Engineer45

From Down Under to up topA lean manufacturing initiative at a New Zealand wood-burning stove company freed enoughmoney to start exporting home heaters to the United Kingdom.

Firenzo now has 48 British retail outlets serviced by a full-time manager, according to

Hawke’s Bay Today . The company is a member of the Hawke’s Bay lean cluster set up throughNew Zealand Trade & Enterprise. Going lean gave company ofcials a better understanding ofworkow, the impact of stock turnover and inventory control.

Nowadays, instead of storing inventory in a separate building, parts needed for productionare within reach of workers, as Firenzo is housed in one building instead of three. Althoughfactory output increased without adding staff, the team will grow to fulll Firenzo’s ve-yearplan for the UK market, Firenzo director Gary Edwards told the newspaper.

Production manager Simon Thacker said the days of “busy fools” making stock itemsirrespective of need are gone. One stove component had a decade’s worth of inventory on theshelf,Hawke’s Bay Today reported.

“I’ve told them that if anyone makes another one I’ll beat them with it,” Thacker joked.

materials, and a new kitting process thatreplaced nine steps with six. It is sup-ported by a data management systemthat automatically triggers material pull-ing and avoids errors and inefcienciesthat occurred with the previous methodof manual data entry.

Importantly, the new system has beenreplicated at other lines in the Shanghai

facility, as well as at two other sites inChina and one in Malaysia.

6.Benchmark againstworld-class lean practitionersPerhaps the most fundamental lean prin-ciple is continuous improvement, or kai-zen. An important aspect of continuousimprovement is benchmarking againstthe methods and accomplishments ofrecognized leaders in lean.

Comparisons need not involve directcompetitors or even other companies inthe same industry sector. The idea is tond organizations in any area that havemastered lean manufacturing and learnfrom them on an ongoing basis.

Visiting the facilities of other compa-nies, whether through a reciprocal rela-tionship or as part of a plant tour offeredby a conference or professional organi-zation, is the best way to benchmark andidentify continuous improvement areas.

Other avenues include education andbest practice sharing offered by chaptersof the Institute of Industrial Engineers,SME and ASQ.

Another aspect of benchmarking isshowing customers a manufacturer’slean program in action so they can con-tribute insight and ideas and take away abetter understanding of challenges and

solutions. After all, one of the goals oflean is raising customer satisfaction.Bringing customers into the facility al-lows them to explore lean programs andreplicate them at their own plants. Thisvisibility can add tremendous value tothe customer relationship and increasetransparency and trust.

Adapt and choose your recipeLean has been used by manufacturingcompanies since the 1900s, but there isno single “recipe” for success. In fact,there are many different approaches andmethodologies. An organization mustselect, adapt or create program com-ponents that meet its requirements andapply them consistently throughout allfacilities.

Sharing best practices and success-es internally and with customers andlearning from the example of lean lead-ers outside the organization are funda-

mental to continuous improvement. It isequally important to engage employeesat all levels and keep them motivated tosolve problems on an ongoing basis.

At the highest level, however, leanfullls a larger purpose. Beyond stream-lining processes, reducing waste andsaving money to improve the bottomline for company investors, lean contrib-

utes value to society. Lean creates newopportunities within and outside theorganization.

Employees who participate in leanprojects gain satisfaction from pleasingcustomers, increase their sense of self-worth and forge stronger bonds of loy-alty to the company. In turn, this posi-tive spirit is reected in the communitieswhere they work.

Walter Garvin is vice president, lean SixSigma for Jabil Circuit. The industrialengineer leads diverse teams of professionalsin various countries, including the UnitedStates, Hungary, Poland, France, Italy,Brazil, China, India, Malaysia, Belgium,Netherlands, Mexico and Great Britain.Garvin has experience in new product and

process development, lean, Six Sigma andquality engineering. He has an M.S. inindustrial and systems engineering and anMBA from the University of Florida.



C o p y r i g h t o f I n d u s t r i a l E n g i n e e r : I E i s t h e p r o p e r t y o f I n s c o n t e n t m a y n o t b e c o p i e d o r e m a i l e d t o m u l t i p l e s i t e s o r p c o p y r i g h t h o l d e r ' s e x p r e s s w r i t t e n p e r m i s s i o n . H o w e v e r , a r t i c l e s f o r i n d i v i d u a l u s e .

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Lean in Six Steps