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Using the Pr escription—Thr ee Case Studies     259


                    copy to the insertion cell and also the coil winding island. Several times each week the
                    production schedule would change. Local planning would send updates to all three
                    planning locations on the production line. Many of the required changes were due to
                    internal production or parts concerns. This changing of the schedule created huge vari-
                    ation in the process.

                    Some More Relevant Information
                    The production demand of the line was that shown in Table 16-7.



               Applying the Second Prescription at QED Motors—How to
               Implement Lean

                    The Three Fundamental Issues of Cultural Change

                    Leadership
                    Luis and I reviewed the level of leadership, for this short project. I was certain that with
                    both of us working together we could provide the necessary leadership.
                    Motivation
                    As for the motivation, the plant was very engaged. In spite of the problems, morale was
                    very high. In most activities, they just didn’t really know how to apply the Lean prin-
                    ciples in their situation. They knew what to do, just not how to do it. Motivation, which
                    is often a serious obstacle, was a strong asset at this company.

                    Problem Solvers
                    Regarding problem solvers, the company did not have enough, but with Luis and
                    I working full time on the effort, that temporarily met the requirements. With that in
                    mind, we put together a plan and felt that inside of three weeks we could increase the
                    production so a five-day workweek was practical, and we could get on-time delivery to
                    reach over 98 percent. We were uncomfortable about making scrap reduction projec-
                    tions. At least that was the plan we submitted to the management team.

                    The System Assessment

                    The Commitment Assessment
                    The commitment assessment was done by Luis and I (behind closed doors) and we
                    concluded that a few problems existed but nothing that we wanted to work on now.
                    We might do this more formally later. We were convinced that for the next two months
                    we had the necessary commitments.
                    The Five Precursors to Lean
                    Even though our mission was clear, Luis and I began an assessment of the precursors to
                    Lean. I wanted to get a clear picture of where the facility was on Lean, and I thought it
                    might be an eye opener for Luis. It was. The facility graded out as shown in Table 16-8.
                       They achieved a score of 7.5 out of a possible 25. Quite frankly, for a company that
                    is five years into a Lean initiative, that is not very impressive, even taking into account
                    the relative age of the facility. What was particularly disappointing was the poor layout,
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