Lean Implementation Strategies and Tactics 423

Chapter 19. Lean Implementation Strategies and Tactics 423

with the production kanban, and creates the next 10 minutes worth of production. This paces the one-piece flow assembly line. 5

When this heijunka process is applied throughout the plant (using the visual management boards known as heijunka posts), it’s possible to see the state of the whole process for a whole day in one place. It is natural within the Toyota philosophy to use the material handler—or “water spider,” as they are sometimes called—in this capacity, since they can see the entire material and information flow in their route. By creating this leveled condition throughout the plant, all forms of work can be standardized based on the 10-minute interval. This sim- plifies each operation, and it becomes immediately apparent at a glance if the standard is being followed. Once this condition is met, highly capable individuals who can carefully observe, understand, and think can understand the condition of the entire plant.

The heijunka post levels production across many part numbers. To achieve this, changeovers (fixture changes on the assembly line) were reduced to less than the takt time (takt time equals available work time divided by customer demand). A two-shift assembly line is changed from 90 to 125 times per day. The takt level is achieved through conveyor line spacing and the rebalancing of work elements for the team of associates on the assembly line. Internally there is a two-way kanban to an intermediate parts store (withdrawal) and then to a manufacturing process (production) for the parts pulled for use by the final assembly area. Kanban are brought to the store 88 times per day. Achieving these kinds of pickup and delivery frequencies requires a fine-tuned process that is highly stable. Even small problems will disrupt production and show up almost immediately. For this reason, for a company to be successful with these interruptions it must be committed to fixing problems immediately and then following up with permanent countermeasures. In terms of the continuous improvement spiral in Figure 3-4 (Chapter 3), the plant is several iterations down the spiral of stability, flow, standardization, and advanced production leveling.

Performance results on the model lines have been impressive. Product cost has been greatly reduced, while quality and delivery have risen to noteworthy levels. Most important, DMMI can utilize the success of this activity on other existing assembly lines. DMMI team associates have been directly involved and are transitioning to a new level of “kaizen mind.” This allows the company to foster a new culture where associates’ kaizen power can be tapped and implemented quickly.

5 In fact, the process is similar to that shown in Figure 19-5, though the assembly is a true one-piece flow, and there are no FIFO lanes in the process.

T HE T OYOTA W AY F IELDBOOK

Lean implementation is a learning journey, even in advanced stages. Every experience is an opportunity to learn and grow. But you have to take the time to check and then think about what actions will improve on what you’ve already done. We’ve heard statements like the following when preaching this learning perspective: “But we are in business to make money. This is the real world.”

Toyota is making lots of money. But it took decades of work to get to the point where they benefited from early investments in learning. When we give this advice—to make the necessary investment—it’s obvious to us that there’s waste everywhere and the company can benefit from better quality, shorter lead times, more flexibility to respond to change, and increased productivity. Making some up-front investments in learning will greatly multiply long-term savings. Remember in the 4P pyramid, the base is “thinking long term, even at the expense of short-term financial considerations.” Organizations that view lean as a short-term cost-cutting program are never going to achieve what is possible. They will never become high-performing organizations.

Many companies are anxious to spread lean quickly to the enterprise and extended enterprise levels. Simple analysis will show that most of the costs are typically in supplied parts. And it is well known that the impact of upstream processes like product development have multiplier effects on manufacturing that are far greater than the investment in product development. So why not start in those areas right away? Our experience is that starting enterprisewide and extra-enterprise level programs prematurely does more harm than good. There are a number of reasons for this:

1. Lean is easier to see in physical operations. Remember that much of the early stages of lean are about learning. It is also, unfortunately, about politics—selling the decision makers who hold the purse strings by getting visible, measurable results. This is easiest to do in routine physical processes. In pure service organizations it’s easiest in the most routine parts of the business, for example, order entry, or the test labs in a hospital.

2. There is a risk of overtaxing resources. Management is likely to assign only so many people to lean. Focus on those from whom you’ll get the best results and learning. Even if a separate staff is assigned to a “lean office,” they’re better off first spending some time in the trenches work- ing on the core value-adding operation. They will start to understand lean at a deeper level, and much of that learning will transfer to the office environment.