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7 HBL Sutra’s
Sutra # 1: Do not begin production before it is necessary, which means “Delivery date – Lead time”
Sutra # 2: Plan to buy in small lots subject to economic quantity for transport. Target is to receive from vendors twice a week. Ideally, try for Vendor Managed Inventory.
7 HBL Sutra’s
Sutra # 3: Reduce set up time (SMED concept) at every work station to the minimum by serious and concerted application of mind. So that, we can move from one product to another very quickly to reduce WIP and wastage.
Sutra # 4: Enforce a PULL system as compared to the current PUSH system in the factory. [How to do this needs to be creatively developed ?]
7 HBL Sutra’s
Sutra # 5: Do not Line Balance capacity, Balance Flow.
Sutra # 6: Focus on one constraint at a time and apply all resources to that constraint. Do not attempt to bring about many changes concurrently.
Sutra # 7: Raw material inventory may be unavoidable and just in time may be infeasible in India. But, this is no excuse for WIP inventory after material has been taken from the stores.
Combining Best Approach
Theory Of Constraints (TOC )Focus on improving the system constraints that determine overall performance……and in this way significantly boost the return on investment and success of Lean & Six Sigma programsIncrease profits by increasing sales rather than by cutting costs and hence avoid headcount reductions
Lean Manufacturing / Toyota WayBy far the most widespread approach in industry throughout the worldA focus on eliminating all forms of wasteA multi-dimensional approach: management, Just-In-Time, 5S, Lean Engineering, …
Five Focusing Steps
Fitting Lean to Current Manufacturing Strategy
Lean strategy – highest quality at lowest cost in shortest amount of time.
Manufacturing strategy – a pervasive theme or mission that guides decision making, establishes direction and determines what competencies the factory (or manufacturing business) will develop
Fitting Lean to Current Manufacturing Strategy
What fits a lean strategy:1.Six sigma.2.Kaizen.3.Pull system.4.Value analysis.5.Short/fast changeovers.6.Never pass a defect.7.Attention to detail culture.8.Teamwork.
Focus and Leverage
Concentrate on the 1% of the system that determines 99% of its performance
By focusing Lean and Six Sigma activities on the constraints that directly impact global performance, the return on investment for these efforts is necessarily higher.
This method avoids the discouragement that arises when non-constraints are improved without significant impact on global performance.
Toc + Lean provides results that are not only significant, visible in bottom line results, but also very rapidly attained.
Thinking Processes
The “Thinking Processes” of TOC help to:
Make the logic of the solution clear and to get buy in for the solution. For example see the “ Intermediate Objectives Map ” opposite.
Clarify situations in which the constraint is not a physical
bottleneck but rather a policy constraint that can be eliminated by changing the rules or behaviors.
An Action Plan
Getting Started. Change Agent – Find someone (it may be you!) with
the lean knowledge, energy, and courage to see the change implemented.
Get lean knowledge Find a lever – seize an opportunity to implement lean
principles Map value streams – Look for ways to eliminate muda
and implement flow
Action Plan
Getting started continued. Begin Kaikaiku – look for radical improvements and
then kaizen and re-kaizen. Expand your scope – move quickly from one activity to
the next
