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260    Cha pte r  S i x tee n



                                 The Five Precursors                       Score
                                 High levels of stability and quality in both the   1.5
                                 product and the processes
                                 Excellent machine availability            2.0
                                 Talented problem solvers, with a deep     1.5
                                 understanding of variation
                                 Mature continuous improvement philosophy  1.0
                                 Strong proven techniques to standardize   1.5
                                 Total                                     7.5

                                TABLE 16-8  The Five Precursors, Summary Evaluation


                    the absolute lack of flow, and the very low levels of process stability. Luis was extremely
                    disappointed with the condition of the processes but agreed with the evaluation we had
                    jointly compiled. As I hoped, it was an eye-opener for him.
                    Ten Reasons for Failure
                    “The Ten Reasons Lean Initiatives Fail” was reviewed briefly and we found there were
                    issues that needed to be addressed later. We did have one issue with outages being
                    caused by poor raw materials supply on several parts, and during the management
                    presentation purchasing committed to working on those immediately.

                    Process Maturity
                    As for the specific assessment of process maturity, we did not do one. In this case, we
                    knew that by this point we were going to make major process changes, so we felt it
                    would be best to complete these changes first. However, after the project was com-
                    pleted, Luis had this document turned into a plant standard. On subsequent projects,
                    he later told me, all work stations needed to achieve level 3 status, by all measures,
                    before start of production.

                    Educational Evaluation
                    Luis and I performed an evaluation and, since they had done a great deal of training
                    earlier, we didn’t really need to do anything at the outset. The entire facility had a rea-
                    sonable grasp on what Lean was really supposed to be. Their problem was not under-
                    standing, it was application. However, as we got into the project, we needed to do some
                    education on quick changeovers, kanban calculations, inventory calculations, and heijunka
                    board design. When these issues surfaced, we trained only the necessary persons and
                    trained them just in time.

                    The Implementation of the Four Strategies at QED Motors

                    Synchronize the Supply to the Customer, Externally
                    This step has three processes. First is the takt calculation. Next, we must level produc-
                    tion, and since we have a make-to-stock system, we need to calculate the cycle, safety,
                    and buffer stock inventories.
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