Page 192 - How To Implement Lean Manufacturing

170 Cha pte r T e n

A Story within the Story
Within this story of production improvements through improved transparency are
numerous stories, one of which we will elaborate on. It is the story of engaged workers
and a dedicated, motivated management team that was hampered by a certain type of
blindness. A type of blindness we all share—to some degree.
In this case, this product was not profitable at all. After 18 months of production, the
company was losing 30 percent on this product! The primary problem was the insuffi-
cient production rates. Under design conditions, this product needed to produce 330,000
units per month to meet the business plan. The management was absolutely frustrated
because, as they said, “We have done everything we can to improve the production.”
They then listed the things they had done to get to the 6.65-second cycle time. The list
was long and impressive. It included a great deal of training and efforts to motivate the
workers, as well as a long list of changes made to the equipment.
Although they were both sincere and passionate about the statement: “We have
done everything we can to improve the production”—they were very wrong. They had
not done everything they were able to do, as you will “see” in this story.
Specifically, when we measured and posted the cycle time, it dropped from
6.65 seconds to 5.5 seconds, with no other process improvements. Two conclusions are
inescapable.
• Once the workers “knew” what management wanted and once the management
allowed them to “see” what was really happening, the rate improved by more
than 18 percent. In rough terms, that meant we could now produce the same
volume in one day per week less. Our fixed costs had now just dropped
18 percent per unit. Isn’t that incredible? Consequently, we could conclude,
with certainty, that the workers were both capable and motivated to improve
the production.
• The second conclusion is a bit more uncomfortable
to those in management. That is, the management
“Tell me how a man is
had not “done all they could do,” actually they had
measured and I will tell you done all they knew how to do, but still, they were
” the obstacle that prevented the improvements.
how he will behave.
Unknown
(from Chap. 9) Let me refresh your memory of some informa-
tion contained in other chapters. A review and
deeper understanding of these comments may assist
some managers in their efforts to remove roadblocks
“I often say that when you
that are hindering the ability of others to perform.
can measure what you are
Now let me put these two quotes into context
speaking about, and express
with this story.
it in numbers, you know some- First, the problem of low production could only
thing about it; but when you be measured in a meaningful way, after a full day of
cannot express it in numbers, production—a full 24 hours late. Then, they could
your knowledge is of a meager discern, as was normally the case, that the produc-
and unsatisfactory kind … ” tion rate was low. But how did they numerically
Lord Kelvin describe the problem of low production. They could
(from Chap. 5) not tell if the losses were from quality problems,
materials delivery problems, machine availability