the state of lean manufacturing

The State of Lean Manufacturing

A discussion with David Viscoand Bruce Hamilton

©2021 David Visco All rights reserved.

Methodology

� Began as an effort to create some benchmarks around use of Lean

� Survey conducted of 142 companies around the globe, with

� Representative titles including� Production/Lean Manager� TMP/Lean Manager� Quality Manager� Director of Operational Excellence� CI Program Manager


Demographics


� A mix of public and private companies

� 73% private and 23% public, not enough responses to segment by government agency or non-profit.

� Nice spread across a variety of manufacturing and processing businesses.

� About 10% of respondents were big companies, with more than 10k employees; more than half fell into the 100-5000 range.

� We had a nice mix of size by revenue.

Lean in 2020

� The pandemic had an impact on Lean implementations.

� 61% reported being less focused on Lean or on hold with Lean.


� Has the pandemic affected your lean implantation in 2020?

Quotes

Lean initiatives have helped reduce the impact of pandemic on our business by increasing sales and reducing cost and waste.


“

”

Our 5S work has been very COVID-focused, but not so

much on broader 5s concepts. Lean & lean

initiatives have fallen way off & are rarely mentioned

by name Ironically, our quick pivot to source,

produce, & supply PPE has essentially saved the

company and opened new markets.”

“

Cultural ActivitiesWhich of the following activities are part of your implementation ?


Activity Percent

Team spirit 68.30%

Buy in 47.89%

Goal alignment 66.20%

Executive sponsorship 50%

None of these 5.63%

Audience Poll:Reason for Lean


AUDIENCE POLL:

For what primary reason does your organization employ Lean?

Reason for LeanFor what primary reason does your organization employ Lean?


More of half of respondents are more focused on cost cutting than they are on customer-driven change.

Where Lean is appliedCurrently, lean is being applied/pursued in which areas of the company? (please select all that apply)


Lean Tools UsedWhich of the following lean tools have you employed? (select all that apply)


Value streamWhich of the following best describes the methods you’ve used to visualize the path of the value stream you provide to the customer?


Waste


� 95% of respondents have taken steps to eliminate wait time in processes (machine assignments, preventative maintenance, parts shortages etc.)

� 17% are not using work in progress (WIP) limits to help identify inefficiency in a team's workflow. An additional 18% only do in some areas.

� Over 90% have addressed transportation waste.

� 88% have addressed overproduction issues.

14%

28%

5%25%

28%

Efforts to eliminate waiting

All of the above.

Inventory control to eliminate parts shortages.

None of the above.

Operator wait time has been mitigated by assigning them to multiple machines to allow one to be operated while the other is going through cycle time.

Preventative maintenance to reduce machine malfunctions and worker downtime.

(blank)

Quality controlTo what extent are you employing quality control measures?


� 93% of respondents have taken steps to employ quality control measures.

� But, 35% claim that they’re not addressing all defects and just over 5% say they’ve addressed none.

� Over 12% of respondents reported not using Kaizen.

7 Measures of PerformanceWhich of the following measures of performance do you employ? (check all that apply)

These Lean 7 measures of performance are not all used by all lean initiative companies


Not Right First Time (NRFT) = Quantity of defective units x 1,000,000 (parts per million) 30.00%

Delivery Schedule Achievement 61.43%

People Productivity = Number of good units made 55.71%

Stock Turns 30.71%

Overall Equipment Effectiveness (OEE) 47.14%

Value Added Per Person 38.57%

Floor Space Utilization 25.71%

QUESTIONS


Keep in Touch

� Book: 5S Made Easy

� Free online 5S best practices: 5S Blackboard

� Reach out to me:� David Visco� [email protected]� (978)842-4610

� 5S Supplies: www.the5sstore.com@The5SStore

@the_5s_store

@The5SStore

@dvisco@The-5s-store


mailto:[email protected]

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