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LEAN Process Innovation & Sustainable Continuous Improvement… Our Most Formidable Competitive Weapons

Brought to you by:

Volume 01, Issue 08 June 02, 2014

CONTENT

The Lean exchange: heLp To acceLeraTe To your Leading edge

3What Began as

Henry Ford’s CANDO is now Today’s 5S

4Helpful Tips

4Building capability

25S: It’s NOT

Housekeeping! It’s NOT about a

Pretty Plant!

Most would agree that workplace organization, or 5S as it is known

today, is the place to start the journey to world class

Produced by:� Dave HoggTelephone:� 519-741-9732

Email:� dhogg@rogers.com

Thank you to our partner:

The ATJTake…

According to Lao-Tzu who died in 604 BC, “a journey of a thousand miles begins with a single step.” Many North Americans begin their journey toward world class competitiveness with the best of intentions by taking that single step only to later neglect the remaining 999 steps. As you visit customers, suppliers and facilities, it won’t be long before you come across these folks. Many LEAN failures begin right here, in the beginnings, when people realize how unprepared they are for the journey

This issue focuses on one LEAN foundation that if taken seriously will provide many significant competitive

advantages. We stand in the midst of an increasingly competitive world, one that will get a lot more competitive as the EU CETA

trade deal comes into existence in 2016/17. It’s not that we lack the ability to compete — we just have to figure out how the new game will be played. Those involved in Consortia are already on the right path, but read on for more information anyhow.

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Brought to you by:Volume 01, Issue 08

June 02, 2014

The Lean exchange: heLp To acceLeraTe To your Leading edge

>> LEI Post:� Ask Art:� How Much Lean Training Should We Be Doing?

Most would agree that workplace organization, or 5S as it is known today, is the place to start the

journey to world class. But old habits and paradigms, such as past disdain for housework, have stopped more than one company’s journey to LEAN on their very first step. Other nations chuckled at us for having to take training in 5S to learn how to organize our work places — honest.

5S is about Workplace Organization. However, having proficiency in 5S does not signify complete readiness for the full journey ahead. In reality 5S is only the journey’s beginning, because it forms the

foundation for much of the LEAN struc-ture to come. Yet in the US and Canada, it is still not hard to find companies who believe that once 5S is in place that’s just about all they need to do to be able to claim, “yup, we do LEAN here.”

Winning companies, Consortium members and those already on the path to LEAN and world class performance, are becoming visible but are still a very small minority of the 400,000 plus manufacturers in North America today. In recent visits, we met staff that believe 5S is just housekeeping; they were quite unaware of how critical 5S is to the LEAN steps that follow it.

Have a look at the well-used training slide below and think carefully about what it recommends. Then take a critical walk, either in your own facility, or on the floor of one of your customers’ or suppliers’ facilities and see if you can sense what progress they’ve made on their journey to World Class. The more you walk through such facilities, the easier it is to sense what needs to be done to improve. The benefit from such walks can be spectacular; they can help transform facilities into more productive and profitable operations.

But let’s get back to the notion that 5S is only a foundation for what is to come.

5S: It’s NOT Housekeeping! It’s NOT about a Pretty Plant!

Quotes to learn from Art Byrne

“Most companies devote far too much time to off-site, formal programs that tell you ‘about’ Lean yet leave you with little to do.”

Now that Mike Rother, a manufacturing researcher and co-author of Learning to See, has captured the unseen elements of the Toyota Production System in his book Toyota KATA, the playing field will become a little more level as we begin to implement the routines and thinking he has exposed

5S: Sort; Set-in-order; Shine; Standarize; Sustain

A D

C

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This slide indicates the critical importance of 5S to the building of the right foundation to engage people in an envelope of trust, openness, learning and a clear perspective ofthe customer.

83% of what we know today has come from our eyes.

Focusing on a visual workplace enables more people to participate — faster — with better results for the customer.

The High Velocity Manufacturing EdgeManaging at the speed of sight & thought

5S WorkplaceOrganization Process Thinking

Everywhere

StandardWork

ContinuousImprovement

Visual Factory

World Class productivityManufacturing Velocity

& Competitiveness

Visual Management— Real Time

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Brought to you by:Volume 01, Issue 08

June 02, 2014

The Lean exchange: heLp To acceLeraTe To your Leading edge

What began as Henry Ford’s CANDO is now today’s 5SThe genesis of 5S can be traced to North America

It all started in Michigan with Henry Ford — not in Toyota City. It began with the need to reduce defects and problems

when assembling interchangeable parts into automobiles. Two of Ford’s mantras were: we cannot afford to have dirt around, it is too expensive and your wastebasket is your friend. But for Ford, making it all work required understanding the environment of his time and the military culture that existed.

Part of the culture of the time in-cluded the unquestioned discipline that stemmed from the need to keep your rifle just so, and Ford capitalized on it. In the late 1800s and early 1900s rifles

5S is all about Workplace OrganizationThe job of 5S is to impart a fundamental discipline of order — A place for everything and putting everything in its place. Done right, it teaches respect for tools, respect for equipment, respect for processes and respect for people. All the while it schools you in the professional need to have the right tool, in the right place, at the right time as surgeons do if the patient is to survive. The acquisition of workplace organization prepares us for the next discipline of standardized work.

Standard WorkHenry Ford required each production team to find the best way to execute a given process in their cell, and then to classify it as Standard Work to eliminate further variation in how to complete the task. When the team discovered a better way to handle the task, it was their responsibility to immediately establish the new Standard Work for the new way to run the process. The application of this

discipline prepares us for the discipline of continuous improvement.

Continuous Improvement (CI) Over the last 30 years, the discipline of continuous improvement has been deemed the most formidable competitive weapon any organization could acquire. Acquiring Continuous Improvement requires a little risk and experimentation once you have confirmed: 1) the process is reliable, 2) the skill and discipline to implement it is available, and 3) the standards to measure improvement accurately can be applied. Acquisition of this discipline prepares us for the discipline of the visual factory.

Visual FactoryMaking things visual forces order and clarity as it eliminates the waste of ambiguity and confusion. It enables us to quickly recognize when things are normal, which means any abnormalities stick out like a sore thumb. Applying visual thinking accelerates the

transmission of information resulting in faster decision-making. Some have classified these the tools that enable managing-at-a-glance. Acquisition of this discipline prepares us for the discipline of visual management.

Visual Management This dramatically increases the velocity of decision-making. On a personal note, I remember my president pointing out to me emphatically that “the value of information is geometrically proportional to its velocity; if it is not moving, it’s Muda.”

Mastering this disipline enables rapid responses. And why wouldn’t it? Human beings obtain 83 per cent of what they know through sight. What we see has high credibility and yet, so often, we stand toe-to-toe and throw words at each other. The acquisition of this discipline enables us to mobilize others, and to make decisions faster which acceler-ates the horizontal balue stream flow to the customer.

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Brought to you by:Volume 01, Issue 08

June 02, 2014

The Lean exchange: heLp To acceLeraTe To your Leading edge

could be just as finicky as the powder used to fire them. Ford put this militia thinking to work as he implemented standard work around how you kept your place of work — because dirt and early interchangeable parts did not mix. And if you did not take care of your rifle it would not take care of you.

In the mid 1920s — long before the Toyota Production System — Ford was installing his CANDO easy-to-remember discipline for workplace organization, complete with visual tools. In 1931 there was no 5S, but there was a 3S which stood for eliminating the wastes caused by smoke, soot, and smudge. Though CANDO was in place from that time, it became neglected and was eventually lost at Ford. 5S as we know it, did not come along until the 1950s.The Japanese first saw its predecessor, CANDO, in action in the 1920s and got to work on it after the 1950s as they clawed their way out of bankruptcy.

So just what was CANDO in Ford’s world?To Henry Ford, CANDO was workplace organization, just as 5S is today. It was renamed by the Japanese, who used five near-equivalent Japanese words that were easier for their employees to remember. North Americans, knowing nothing about CANDO, spotted 5S in Japan, brought it back to North America

and then agonized over what five English words would equate to the actions associated with the Japanese 5S words. Here are the five practices that so many attribute to a land far away, when they really came from Michigan.

C = Clearing-up… The objective is to have nothing in the workplace that is not needed. In fact, the workplace should be kept as naked as possible so it is easier to see where, and how, improvements can be made. An appropriate rule of thumb from the past is, ‘When in doubt throw it out’. The rule included red tagging anything that should not be there, which became the signal for clearing away what was not needed. Ford often reminded people “your best friend includes your waste basket.”

A = Arranging… The objective of this practice is to have a place for everything and everything in its place. If done with discipline, waste associated with looking for tools during normal hours or during the chaos associated with unscheduled shutdowns is eliminated.

N = Neatness… This has far more value than providing eye candy. Besides the influence cleanliness has on pride and professionalism, keeping everything clean

makes finding things that are out of place or leaking much faster. One company’s approach was to paint all machines white. Besides pouring more light into every nook and cranny, leaks and colour changes from elevated temperature problems became visible quickly against all the white machinery.

D = Discipline… “Mind you keep your rifle an’ yourself jus’ so.” Taken from its military roots of the time its intent was to make preventative maintenance and cleaning routine habits, while incorporating discipline into work instructions, operational leadership and more..

O = Ongoing Improvement… Root out additional forms of waste and inefficiency. Strive for continuous improvement and the deployment of best practices across the organization that are continuously improving processes – and then standardize it. As mentioned earlier, Ford’s clear expectation was that the processes in a given manufacturing cell were to be the best that the workers in that area could achieve and we to be made standard. But, when an improvement came along it was understood that everyone’s responsibility was to adapt the existing process to the new and establish this new standard work immediately.

Quote of the day…So many names for the same thing

CANDO – Henry Ford 5S Meaning Popular Lean Enterprise Institute

1. Clearing Up Seiri Clearing Up Sort Separate needed/unneeded

2. Arranging Seitori Organizing Set in Order Neatly Arrange

3. Neatness Seiso Cleaning Shine Clean and Wash

4. Discipline Seiketsu Discipline Standardize Cleanliness via S1–S3

5. Ongoing Improvement Shitsuke Sustain Sustain Discipline to do S1–S4

What’s critical? To select the words/definitions and that everyone inside your world will use!

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Check out Mike (KATA) Rother’s personal website for excellent detail at: http://www-personal.umich.edu/~mrother/Homepage.html

Brought to you by:Volume 01, Issue 08

June 02, 2014

The Lean exchange: heLp To acceLeraTe To your Leading edge

Why not apply KATA thinking to a key routine you do every day?It could be a sequence of any kind but pick one that would really make a difference were you to get very good at it

A KATA is a routine of sequenced steps repeated until they become a habit. It is best known in families with a member who practices martial arts; their KATA may be

a striking or blocking motion practiced to smooth perfection. Keeping the definition simple and picking key routines in your world can make a difference. But you must be prepared to identify the steps and then practice them relentlessly to burn new neural pathways into your brain until the sequence becomes a reflexive routine. When you’ve achieved this, pick the next key routine to master.

One simple KATA example in LEAN is plan-do-check-act (PDCA). If you are prepared to make it so. It is practiced

infrequently by most people. But if you were to apply the same sequence to solving problems every day, its frequency of use, and your fluidity of application would become increasingly faster and more effective.

Others would see it as your immediate and fluid response to solving problems. You can apply this to just about any series of sequential steps — that is, if you are prepared to commit to it fully until it becomes a reflexive habit. Remember the 10,000 practice hours from Malcolm Gladwell’s book Outliers? That was a form of KATA thinking in play. There is no end of opportunities to apply it at home or Define-Measure-Analyze-Improve-&Control (DMAIC), to Gemba Walk processes, to Harada and more.

Building CapaBility

Books ........................ Creating a Lean Culture —Tools to sustain lean conversions. Shingo Prize for Excellence. David Mann, Still the top text on Leader Standard Work. www.ocapt.com — Recommended by: Dan McDonnell, Ingersoll Rand, and Brad Robertson, ESCO The Visual Workplace — Visual Thinking – Creating enterprise excellence through the technologies of the visual workplace. Shingo Prize Winner for Excellence. Gwendolyn Galsworth, Excellent material on the visual workplace. www.ocapt.com Lean Production Simplified — A plain-language guide to the world’s most powerful production system. Pascal Dennis, One of clearest plain-English overviews of the TPS by a Toyota graduate www.ocapt.com

Beginning LEAN? ...... All I need to know about Manufacturing I learned in Joe’s Garage — 92 pgs. William Miller & Vicki Schenk — World Class Made Simple. The tag line says it well Everything I know about Lean I Learned in First Grade – 105 pgs. Robert Martichenko, Given out to all attendees, 2012 LEI Collaborative Learning Summit. A great book for passing on to family and colleagues unsure of what LEAN is

New:�………. ............. We’re looking for shared resources that helped build your capability•  We will post them here•  Include one line describing the value•  Must have a link, email or source

e-mail dhogg@rogers.com