Lean manufacturing, sản xuất
Trang 1LEAN MANUFACTURING PRINCIPLES AND THEIR APPLICATION
Mehmet C Kocakiilah; Jason F Brown; Joshua W Thomson
Cost Management; May/Jun 2008; 22, 3; ABI/INFORM Global
pg 16
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LEAN MANUFACTURING
PRINCIPLES This articts presenta a brief history of lean manufacturing and then discusses the
different facets or tools that are components of an effective lean culture and program
AND THEIR APPLICATION
MEHMET C KOCAKULAH, JASON F BROWN, AND JOSHUA W THOMSON
ufacturing program are value focused on supplying exactly what the cus- stream mapping, 55, total pro- tomer wants,in the form they want it in,
single minute exchange of they want it, with minimal waste in the
dies (SMED) and Six Sigma There are also
lesser-used tools, or subsets of the major
tools, such as a Kaizen improvement cul- ture, Hoshin Planning, mistake proof- ing, Jidoka, standardized work, and
process The following principles are
identified by the Lean Enterprise Insti-
tute as characteristics that identify a lean business:'
1 Specify value from the standpoint of just-in-time inventories Each of these tools
focuses on certain aspects and areas of 2
the manufacturing process in order to
help improve costs and efficiencies in a
company
Before looking at the historical origins
answer the important question: What is
lean? Stated in the most basic form, lean manufacturing and a lean enterprise or
the end customer by product family
Identify all of the steps in the value stream for each product family,
eliminating every step, every action,
and every practice that does not create value
Make the remaining value-creating
steps occur in a tight and integrated sequence so the product will flow
smoothly toward the customer
MEHMET C, KOCAKOLAH, Ph.D is professor of accounting at the University of Southern Indiana, Evansville, Indiana He can be reached by e-mail at mkocakul@usi.edu
JASON F BROWN is currently working as a Plant Engineering and Maintenance Manager in the plastics packag-
ing industry He received a Bachelor's degree in Mechanical Engineering from Rose-Hulman Institute of Technot- ogy in i993 and a Master’s degree in Business Administration from the University of Southern Indiana in 2008
JOSHUA W THOMSON is working as an Environmental, Health, and Safety professional, sharing responsibilities asa Continuous Improvement coordinater for Lean Enterprise Josh's degree in Mechanical Engineering from Ten- nessee Tech provides a structured and expansive skill set as @ champion for continuous change
COST MANAGEMENT MAY/JUNE 2008
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4 As flow is introduced, let customers
pull value from the next upstream
activity
5 As these steps lead to greater trans-
parency enabling managers and
teams to eliminate further waste,
managers pursue perfection through continuous improvement
A top-to-bottom lean enterprise works towards these characteristics by being
comprised of five elements:?
« A product development process
- A supplier management process
- A customer management process
- An overarching enterprise manage-
ment process
- A production process from order to
fulfillment
Each of these lean processes has been proven superior to processes employed
for the same tasks in a mass production
type of environment
The objective of this article is to pre- sent a brief history of lean manufactur-
ing and then discuss the different facets
or tools that are components of an effec-
tive lean culture and programs This dis-
cussion examines the specific impact of
each of the lean manufacturing tools on
the bottom line and performance of a
company
Lean manufacturing
The origins of lean date back to Henry Ford
and his first production line in Highland
Park, Michigan in 1913.* Ford was the first
person to consider the flow of produc-
tion His assembly line created the flow
or sequence in which interchangeable
parts were assembled with standardized
work to create Model Ts In terms of cur-
rent lean thinking, Ford’s first assembly
line is generally used as an example of
mass production that goes contrary to
many lean principles The inconsisten-
cies with lean are not about flow or inven-
tories (he was able to turn entire inventories
every few days) The problem was his abil-
ity to make only one variety of cars
As consumers began to demand more
variety, Ford and other producers began
adding larger and faster machines to
reduce process time but at the same time
adding complex routings, process step sep-
LEAN MANUFACTURING
aration, and inventory points Today’s computerized materials requirements planning (MRP) systems are evidence of :
this increased complexity through time
In 1902, slightly before Ford’s assem-
bly line, Sakichi Toyoda, the founder of :
the Toyota Group, invented a loom that would automatically stop if any threads
snapped.‘ This was an important inno-
vation and even today an important :
aspect of lean This invention reduced
scrap, raised yield, and allowed for mul- tiple automated looms to be run by one
operator This process of stopping pro- duction to prevent defects is called Jidoka :
and is used in Toyota facilities today
In the 1930s and especially immedi-
ately after World War II, the Toyoda fam-
ily became fascinated with the Ford
automobile production line and decided :
to go into automobile production them-
selves.® In doing so, Kiichiro Toyoda, Taiichi Ohno, Shigeo Shingo, and others
thought that some simple innovations could make it possible to maintain a ; process flow and make operations flex-
ible enough to offer some variety in prod- uct offerings.® The innovations resulted
in an assembly line where parts and sup-
plies were only produced or purchased and brought to the line in the quantities
needed exactly when they were needed
The purpose was to match production requirements as closely as possible to customer demand Out of these innova- tions single minute exchange of dies (SMED) and just-in-time inventories were created This was the birth of the
Toyota Production System
The Toyota Production System is the starting point and basis for much of : today’s lean teachings and practice Toy- ota is considered the leading lean exam- ple worldwide It has become the world’s most profitable automaker and will soon
be its biggest As of March 2007, they :
had a fifteen percent market share in the United States, are poised to pass Ford :
this year, and will most likely pass GM
as well.’ This is all a strong indication that lean principles work in application
There has been so much focus on lean
manufacturing in recent years that some
additional facets, tools, or methodologies
have been pulled under the lean umbrella
MAY/JUNE 2008 COST MANAGEMENT
THE TOYOTA PRODUCTION SYSTEM IS THE STARTING POINT : AND BASIS FOR MUCH OF TODAY'S LEAN TEACHINGS AND PRACTICE
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VSM IS THE BASIS FOR
PRIORITIZING LEAN
ACTIONS
18
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with the Toyota Production System based
on how each company takes the lessons
and applies them One example is Six
Sigma It was pioneered by Motorola
in the 1980s and General Electric was one of the first companies to begin
to blend and combine the two method-
ologies.°
Regardless of the name or the origins
of the methodology, lean enterprise is all about serving the customer more efficiently and effectively Impacts on the bottom line are in elimination of wastes and
growth of customer base
Value stream mapping
Value stream mapping (VSM) isa visual
way of representing the flow of infor-
mation and materials in the production
of products This creates a simple way for
managers to see flow of value Value is
being defined as those things done to transform a product into the form the cus- tomer wants and for which the customer
is willing to pay
Value stream mapping helps manage-
ment to visualize information and prod- uct flow, waste, the relationship between
information and material flow VSM is the basis for prioritizing lean actions It helps managers identify the classic seven
wastes in processes in lean manufactur-
ing principles:
1 Over production-Producing more than what is needed for the cus- tomer or the next process step
2 Transportation-Moving product between process steps, from pro- duction to the warehouse, from the warehouse to shipping, or any other
form of movement that is not part
of product transformation
3 Inventory-Includes both work in
process inventories and finish goods inventories,
4 Motion-Unnecessary motion ina process For example, poor work
station design causing an employee
to reach for needed items resulting
in time losses or wasted motion in
the pattern of a robot
5 Waiting-Machines or process steps waiting for work-in-process or component parts to arrive
COST MANAGEMENT MAY/JUNE 2008
6 Defects~Any undesired characteris-
tic that affects product fit, form,
function, or appearance
7 Over processing-An example would
be slowing down a machining oper- ation to obtain a finer surface finish than required
These wastes are readily apparent in every manufacturing facility in the world,
even in Toyota manufacturing facilities
Some of them are unavoidable It is those
companies who identify, manage, and
minimize these wastes that are able to suc- ceed the best in this very competitive
marketplace
The first step in creating a value stream map is to group and identify product
families These are groups of products,
which proceed through the same basic steps and equipment within the company Sec- ondly, the flow of information to and
from the customer to the company and
to and from the company to suppliers is
mapped from right to left across the top
of a sheet, board, or easel This should include a calculation of takt time Takt time is defined as the effective working time per shift divided by the customer
requirements per shift The calculation
of takt times gives manager their goal or
target in order to synchronize the pace
of production to match the pace of sales
The next step is to walk the process and
document inventory levels and process cycle times along with changeover times
These are documented from left to right
across the bottom of the sheet It is impor- tant to use actual inventory levels and times
as they are recorded on the floor, not
standards The flow of information from
support areas to production is added and determinations are made as to what process steps are truly value added The final step is the calculation of lead times and what ratios of the lead time are value
added and nonvalue added activities
The map that results from these steps
is called a current state map utilized to
focus improvement efforts All of the nonvalue added times are wastes and are
potential areas for improvement As opportunities for improvement are iden- tified, a new map can be created show- ing all potential improvements It is referred to as a future state map and iden-
LEAN MANUFACTURING
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tifies the target for the process to look
like in the future
VSM in itself does not have a direct
effect on the bottom line of a company,
but it is a method of visually represent-
ing where wastes occur in manufactur-
ing or service processes The map points
to the places where the utilization of
lean tools can directly affect the bottom
line by eliminating waste
5S
While value stream mapping is consid-
ered by many to be the basic tool for
management to start towards a lean oper-
ation, a 5S methodology is absolutely
necessary on the plant floor as a foun-
dation for later improvements 5S was
originally started by Toyota to describe
the proper methods of housekeeping
The 5Ss refer to the words used to describe
the steps in each process in both Japan-
ese and their English translations:
> Seiri Separate
+ Seiketsu Standardize
-Ổ Shitsuke Sustain
Some lean companies refer to their 65
program, adding safety into the mix
55 is usually performed in what are called Kaizen events These events include
a cross section of management and pro-
duction people who are taken from their
daily routines and asked to focus on a lim-
ited specific area The first step, separate,
is an evaluation and removal of anything
that is not needed for the tasks performed
in any given area Some companies use
a “red tag” process for these unneeded
items The items are identified with a
red tag giving the information as to what
it is and from where it was taken The items
are then placed in a designated area for
one week This week allows all in the
plant to review the item and to insure that
the team did not remove something that
was actually needed
The next step, sort, involves defining
a specific place or area for the remain-
ing items that are required to perform the
task in the area They are located in an
optimum fashion for ergonomics and to
minimize motion, one of the seven wastes
LEAN MANUFACTURING
mentioned earlier The locations are labeled and marked with visual aids so
that missing items can be easily identi-
fied This can include tape around loca- tions on the floor, labels on drawers or bins, or things such as shadow boards for tools
The third step in the 5S methodology,
sweep, is self-explanatory Everything must be kept clean and free of debris In
a lean company with a good 5S program the equipment is painted in light colors
This helps to show the dirt and oil because
these things can be symptoms of the
machine not performing correctly
The fourth step, standardize, means keeping things consistent from area to area Multiple workstations for the same
process are all to be set up identically
This leads to standardized work, every-
one performing tasks the same way, and also supports flexibility for employees
across workstations The final step, sus-
tain, is maintaining the discipline to keep the area clean and in order day in
and day out This is more a cultural
change than anything else
The greatest benefit from a 5S pro-
gram is discipline, but there are others
as well Standardization of work areas
and documentation can lead to reduced cycle times, greater cost efficiency, and
reduced motion, which directly affect the wastes of transportation and inven- tory An ideal plant layout is raw mate-
rial in one side and finished goods out the other with one piece pull flow through
the plant in between Disconnected processes tend to have more inventories
building up between them
5S is the first lean perspective on flow and layout This affects the bottom line through greater efficiency Eliminating wasted movement means the same amount
of work can be done with a smaller more
efficient work force Less money is tied
up in inventories Fewer defects are pro- duced because everyone performs activ- ities in the same way
Total productive maintenance
As a company begins working towards
a lean enterprise and synchronous flow
of batches of parts across machines,
MAY/JUNE 2008 COST MANAGEMENT
ASS METHODOLOGY
IS ABSOLUTELY NECESSARY ON THE PLANT FLOOR AS A FOUNDATION FOR LATER
IMPROVEMENTS
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FY
(Exhibit 1 OEE-A Key Metric
OEE = Availability x Performance Efficiency x Rate of Quality Products
(Total Available Time — Downtime)
(Total Available Time) x 100
° Performance Efficiency _ (Ideal Cycle Time x Processed Amount) = x
(Operating Time) (Processed Amount — Defect Amount)
100
¢ Rate of Quality Products =
—
:_ machine availability, and uptime becomes : a major issue It is estimated that the : cost of unscheduled equipment down-
: time in lean manufacturing environ- : ments without excessive inventory buffers
: is five to thirty times what it is in other
: manufacturing environments.’ It results : directly and immediately in lost oppor-
: tunity, failed shipping schedules, and : lost sales Total productive maintenance,
: or TPM, is the methodology used to
: attack issues with machine uptime The : main metric of a TPM program is over- : all equipment effectiveness (OEE) as : illustrated in Exhibit 1
: Availability measures if the machine
is down and cannot run Performance : measures if the machine is running at : its optimal speed Rate of quality mea-
> sures how many defective parts a machine : produces World-class OEE is generally : considered to be eighty-five percent
: Six factors cause OEE numbers to drop:
1) machine breakdown; 2) machine set- :_ up; 3) slowdown or stoppage of machine;
- 4) slow cycle time; 5) start-ups; 6) defects
- and rework These losses are the focus : of what TPM is used to minimize OEE
: and evaluation of these six losses are
: calculated and compiled in the first phase
: of TPM, the measurement cycle
: The second phase, the condition cycle,
: involves evaluation of data and formu-
- lation of an improvement plan for the
- machine (as well as an initial cleanup of
COST MANAGEMENT MAY/JUNE 2008
a,
(Processed Amount)
x 100
cai
the machine) The cleanup of the machine and the discipline to keep it clean is very important based on the 5S principles
Dirt, excess grease, and grime cover up
and hide important signs that can indi-
cate issues with equipment
The third phase of TPM is the prob- lem prevention cycle In this phase
employees complete the planned im- provements and then take TPM a step fur- ther by developing best practice rou- tines and standards, which they then apply to all similar machines in opera- tion This helps to insure that things are being performed in the same manner
on all machines The goals of TPM efforts
are shown in Exhibit 2
Once the problem prevention cycle is reached, continuous ongoing monitor-
ing and improvement are an important part of TPM This is also the point at
which a good predictive maintenance program also aids in detecting issues so that they can be addressed before they become unscheduled downtime Ongo-
ing monitoring of measures such as “mean time to repair, “costs of maintenance,”
“cost and rationalization of spare parts,”
“compliance to preventive maintenance schedules,” and “mean time between fail- ures” all feed into reduced machine prob- lems and greater OEE numbers
Another aspect of TPM is called autonomous maintenance This is where responsibility for many of the basic
LEAN MANUFACTURING
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Exhibit2 What We Want to Achieve >)
Reliability Does not need constant * Low failure rate
adjustment or attention for ¢ Low rate of minor stops minor stoppages + Low quality defect rate
* Needs little adjustment
* Reliable control system General Deterioration is easily measured | * Mechanical or electrical failure is easily detected and Maintainability and corrected located
Parts are easily replaced
* Easy to inspect
* Readily accessible for maintenance Operator Operators can easily perform ¢ Easy to clean
Maintainability maintenance tasks such as ° Easy to carry out checks on
oe lubricating, and * Waste is easy to collect ening * Inspection of machine operation is easily carried out Operability Can be set up and operated * Easy to set up and adjust
easily + Easy to use with simple contro! buttons
* All measurement indicators are accessible and easily read
Safety and Does not constitute a risk to * All moving parts are securely guarded Environment health or safety + Dust/Vapor extraction is more than adequate
* No unnecessary projections or sharp corners
equipment maintenance functions is
transferred from maintenance mechan-
ics or technicians to the operators who
run the machines on a day-to-day basis
These operators are the people who are
most familiar with the equipment and
how it runs They are best positioned
to detect abnormalities, correct small
ones, continue operation, and set and
maintain optimal conditions The goal
is not to eliminate the need for main-
tenance personnel, but to have people
most intimately familiar with the equip-
ment to be the first line of defense
against problems
The entire focus of a TPM program is
to keep equipment effectiveness on lev-
els that allow for smooth flow with min-
imal inventories through production
Waiting or downtime on machines is
much more costly ina lean environment
TPM rolls predictive maintenance, pre-
ventive maintenance, and autonomous
maintenance (operators being responsible
for basic maintenance activities on their
machines) into one program focusing
on having no unplanned downtime This
creates well-defined capacity numbers for
planners and schedulers Machine reli-
LEAN MANUFACTURING
ability allows management to remain aware of capacity levels and more accu- rately plan and react to variations in sales Improved impacts on the bottom line come from on-time deliveries to
customers, reduced inventory costs, and
lower scrap numbers
Single minute exchange of dies
Single minute exchange of dies (SMED) was developed by Shigeo Shingo in 1950s Japan in response to the emerging needs
of increasingly smaller production lot sizes required to meet the needed flex-
ibility for customer demand It was orig- inally developed through the study of a die change process The die changeover was monitored and evaluated to deter- mine what could be done to increase the
speed and accuracy of the changeover
SMED more generally seeks to stan-
dardize and simplify so that the need for
specially skilled workers is minimized
SMED has now been expanded to vir- tually any changeover of equipment
The definition of a changeover on a process is the amount of time from the
last good piece of production of item A,
MAY/JUNE 2008 COST MANAGEMENT 21
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( Exhibit 3 Shingo’s Three-Stage Concept
Convert internal steps into external and
Stage 3:
Shorten the internal steps Improve the external steps Standardize the new changeover procedure
Ko
to the first good piece of production of
item B Today’s SMED practices target
changeovers of ten minutes or less Some
companies that have fully embraced lean
teachings are targeting “zero changeover,”
which is considered three minutes or
less As suggested in the TPM section, if
a machine is not producing product dur-
ing changeover it affects the flow of prod-
uct through the plant As a company
becomes more sensitive to customers’
needs and more flexible, the need for an
effective SMED program increases due
to smaller and smaller production lot
sizes VSM helps to point the way to areas
in the plant where SMED needs to be
applied for increased overall throughput
Shingo’s plan for improvement involved
three stages, illustrated in Exhibit 3
It is important to define the differ-
ences between internal and external
steps of a changeover The easiest way
to do this is with an analogy In any form, automobile racing pit crews are
often tasked with changing tires on a race- car as fast as possible When a car comes
into the pits for tires, the crew removes
the wheels with the old tires from the
car They then mount another set of
wheels with new tires already mounted
and pressurized onto the car They do not take the time to remove the worn tires
Before/After During Machine
Measure the total changeover time hanøs6ø68685660656660060081ã60600666666666600S06B/)
|
move external steps outside of the changeover
L1 External
a2
from the wheel, put a new tire onto the
same wheel, air it, and balance it before
then remounting it back onto the race car What they have done is to convert
the process of mounting the new tire
from an internal step to an external step,
by having it already done on another wheel This is an example of a practice
that takes place in stage two of the SMED
process
Continuing the pit stop analogy, con- sider the air guns used to remove and
tighten the lug nuts of the wheel and the
lug nuts themselves NASCAR teams use glue to mate new lug nuts onto the
wheels that will be going onto the car
This way they do not have to place new
lug nuts onto each stud by hand They are already there and only have to be tight- ened with the air gun Similarly, crews
do not use one air gun to perform the work on all four wheels Each tire changer has its own air gun Both of these instances are examples of short-
ening or improving internal steps that
take place in stage three of the SMED process There is no practical way to eliminate something, lug nuts or in some series a single lug nut, that hold the
wheel on the car There is also no way
to eliminate the need for a tool to per- form the change They therefore remain
LEAN MANUFACTURING
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internal to the changeover, but are short-
ened as much as possible
An example of improving an external step in our analogy would be having the
four wheels with new tires clearly marked
so that the people performing the
changeover know exactly where they are
to be used This also takes place in stage
three of SMED Finally, the changeover
procedure must be documented and stan-
dardized so that it takes place the same
way every time no matter who performs
it A baseline should be taken before any
SMED activities so that a benchmark for
measuring improvement can be estab-
lished Pit crews constantly make video
recordings of pit stops and measure their
times, looking for additional opportu-
nities for improvement
The benefits to the bottom line of SMED are similar to that of TPM: im-
proved flow, lower inventories, and bet-
ter quality Whereas TPM focuses on
reducing unplanned downtime, SMED
focuses on reducing planned downtime
due to changeovers The less time that it
takes to change a machine from one prod-
uct to another, the more time there is
for production, resulting in greater capac-
ity for throughput
Six Sigma
At its core, the objective of Six Sigma is
zero defect processes The Six Sigma
name refers to the shape of a normally
distributed bell curve in statistics The
goal of Six Sigma is to design and develop
products and processes that produce 100
percent of parts within this Six Sigma dis-
tribution
Every process has variation in it Six
Sigma helps to define those character-
istics that are most critical to not only
the function of the part, but the run-
ability of the part in subsequent
processes The peak of the normal dis-
tribution is the optimum desired mea-
surement of the characteristic The
distribution of measurements from that
optimum will then fall within three sigma
deviation to either side of the optimum,
thus the name Six Sigma The tools used
to accomplish this are evaluation of
gauging methods including repeatabil-
LEAN MANUFACTURING
ity and reproducibility studies, design
of experiments practices, and statisti- cal process control
Many companies have started to blend their Six Sigma programs into their lean manufacturing programs The impact of
Six Sigma on lean is the production of : fewer defects with less stoppage and
adjustment of machines due to varia-
tions in the incoming parts Six Sigma focuses on reducing over-processing, overproducing, and defects Having
processes that are in control statistically and produce products exactly as they
are needed increases productivity
Kaizen culture
Another tool of a lean enterprise is the cultural tool of Kaizen It is the ongo- ing attitude that continuous improve- ment can be made The history of Kaizen again comes from Japan, but this time it was planted there by General Douglas
MacArthur following World War II Dur- ing the war, factories in the United States did not have extensive amounts of time
to shut down, retool, and rework plant layouts to produce war materials They :
had to begin production as best they could Out of necessity U.S manufac- turing created the attitude of always
making small incremental improvements
After WWII, MacArthur promoted this
philosophy in rebuilding Japanese fac-
tories The Japanese took the philosophy,
refined it, and made it their own The
Kaizen culture is based on the five ele- ments shown in Exhibit 4
Kaizen is more an attitude of the work force than it is a specific tool of lean manufacturing However, it is
an absolutely necessary shift from traditional Western attitudes that lead
us to “If it ain't broke, don’t fix it.”
A strong Kaizen culture must be in
place for all aspects of a lean enter-
prise to succeed Some of the prob-
lem solving tools utilized in an effective Kaizen culture are: fishbone diagrams,
five why analysis, Pareto charts, and fail-
ure mode and effects analysis (FMEA)
The benefits of a Kaizen culture to a
company’s bottom line are clear When
a workforce is focused and thinking of ;
MAY/JUNE 2008 COST MANAGEMENT
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: (Exhibit 4 Kaizen is Based on Five Elements
aspects of a company’s running
: improvement opportunities every day,
: the problem is not initiating continu-
: ous improvement, but prioritizing and
: allocating resources to effect the most : important improvements Reduction of : costs is an area hugely affected by a
: Kaizen culture In fact, Kaizen improve- : ments have been proven to have such a
: profound affect on costs that some domes-
- tic companies have been able to avoid
- outsourcing or relocating overseas to
: low-cost labor regions such as China and : Mexico and remain competitive."
Again, like VSM, Kaizen culture does : not have a direct effect on the bottom
: line of a company It is more the culture : of training everyone to continuously
: look for small incremental improve- : ments The collection of these improve-
> ments will affect every waste and
: therefore affect throughput, efficiency,
- and costs
: Hoshin Kanri planning
: Another tool made use of by a lean enter-
: prise is Hoshin Kanri planning, or Hoshin
: for short Kaizen is more of a cultural atti-
: tude and methodology for plant opera-
: tions; Hoshin planning is more a me-
: thodology for management to set forth
- a plan for the future Like Kaizen, it too
COST MANAGEMENT MAY/JUNE 2008
Quality Circles: Groups that meet to discuss quality levels concerning all
Improved Morale: Strong morale in the workforce is a crucial step to achieving long-term efficiency and productivity, and kaizen sets it as a foundational task to keep constant contact with employee morale
Teamwork: Kaizen aims to help employees and management look at themselves as members of a team, rather than competitors
Personal Discipline: A team cannot succeed without each member of the team being strong in themselves A commitment to personal discipline by each employee ensures that the team will remain strong
Suggestions for Improvement: By requesting feedback from each member
of the team, the management ensures that all problems are looked at and addressed before they become significant
`
was originally presented to the Japanese through an American after World War
II Hoshin is a more formalized version
of Edward Demming’s plan-do-check- act methodology It is the tool with which management communicates goals all the
way down through the different levels
of management
With Hoshin each staff member with responsibilities in every plant has annual goals Each of these goals can be tied directly to the goals of the superior to whom
he or she reports, and the same holds
true for the level above that This is the
case all the way through the chain of command All goals should directly sup- port the company’s vision as set forth by
the CEO The process of developing these goals, communicating them, and mea- suring status is Hoshin planning Exhibit
5 shows how Deming’s plan-do-check-act
is applied in the Hoshin planning process
Another distinction between Kaizen
and Hoshin is the size of the improve-
ments or gains Kaizen focuses on small
incremental improvements that can be
made every day While these are a vital
part of the overall improvement plan of
a company and add up to be very sig-
nificant, they are not necessarily the
focus of Hoshin Hoshin is more focused
on the larger gains or step improvements
LEAN MANUFACTURING
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( Exhibit 5 Process of Developing and Managing a Plan >
External Data Internal Data Customers Corporate goals |g
nè Ỷ
identify key Issues, develop objectives, goals, and implementation plans
2 Ỷ
lẽ
| Analysis of deviation | | Analysis of results |
eat
=
that require more planning and resources
Items that would typically fall into cap-
ital budget planning are ideal Hoshin
items That being said, the benefits of
Hoshin to a company’s bottom line are
similar to that of a Kaizen culture with
cost reduction being the largest area
impacted It helps to focus efforts of
resources to areas that are directly tied
to overall business objectives It also
helps to drive step improvements or
“breakthrough” improvements as opposed
to continuous incremental improvements
of Kaizen
Mistake proofing, standardized work,
d[T/Kanban/Heijunka
Another tool used within a lean enter-
prise is that of mistake proofing, some-
times called poka yoke, which means
error avoidance in Japanese It means
that quality is designed into the process
or product It guarantees the product
that goes to the consumer will be 100
percent defect free The truest form of
LEAN MANUFACTURING
sử
mistake proofing is done in product design If products are designed in such
a way that assembly processes cannot be done incorrectly, then true mistake proof- ing has taken place If, on the other hand, mistake proofing cannot be built into
the product, it is still beneficial to build
it into the process Automatic in-line quality checks are an example Sensors
checking part orientation in feed lines
are another example The benefit of uti- lizing mistake proofing in product or
process design is getting as close to zero
defects as possible, which is practically : perfect quality This pretty clearly reduces possibilities for scrap and thus reduces
costs and improves efficiencies directly :
impacting the bottom line
Standardized work is the tool that
helps to maintain lean achievements and
set the stage for continued improvement
It is what enforces and documents the results of the application of VSM, 5S, TPM, and SMED to increase flow By : having all who perform a job function
do it the same way every time, managers
MAY/JUNE 2008 COST MANAGEMENT
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