Would you like a 25% cost savings while becoming greener?

In 2006 during the ASME Congress and Exposition in Chicago, I presented a white paper about my personal hands-on experience of the great benefits in delivery, productivity and environment impact by using slipsheets instead of pallets.
In a first glance, it is surprising to realize that the use of slipsheets is still insignificantly used despite of the benefits. In fact, with global supply operations increasing in volume and cost, one could imagine companies would like to realize savings 25%-level savings. Here is what I think is happening:
1. The old "Silo" organization still king in the supply chain operations. To see the benefits of using slipsheets, one requires to see the complete value stream of moving a product from China to Mexico and from Mexico to the US. Supply chain operations are still organized in "silos"  where different departments have a slide of the value stream and their performance is measured for their individual performance under their direct control. Similar to silo manufacturing organizations. the  "divide and conquer" principal behind Taylor's approach. With this level of specialization and ownership collaboration is difficult as incentives are on sub-optimization regardless of the whole. What would be the benefits of all the expenses and hassles of becoming slipsheet-ready for the plant manager shipping the products out? None. His time and of his team would be better used in many other projects impacting his "numbers". So the solution is to involve the highest level of the organization to see the whole picture. Yes, but it is not that easy as it sounds. Even at the highest level, ins some organizations, operation responsibilities may be even keep in silos.
2 - Social and Economic Inertia. As in physics, a body requires an initial burst of momentum to break free and to move forward in a different direction, in our organizations, current conditions are prefer due to physiological and economical inertial. In addition to fair to change and preference to stay in our conform zones, economic and personal relationships and interest built and maintained for years will be required to break on this change. The closer we look into the past, the farther we are from a future.
For sure, there are more reasons...let me know.

kaizen approach

I. Basic Principles
1. Focus on:
(1) Produce what is needed now (orders received)

(2) Produce in the quantity needed now (orders received)
(3) Sell Just-in-time
Implement in this order and aim for cost reduction through the relentless elimination of waste: implementing Kaizen.


2. Cost reduction as the main driver:
(1) Cost reduction, not cost accumulation
(2) Profit and cost
(3) Production methods alter costs


3. The notion of waste(Muda)
(1) Definition of waste
(2) Types of waste
(3) The evil of "overproduction"
(4) The concept of efficiency
(5) Operation availability and rate of operation


II. The two pillars of production
1. Just-in-time-production
1.1. Continuous process flow
(1) MAN - multiple process handling, standing "operation" -> walking "operation"
(2) MATERIALS - one piece flow, synchronization, elimination of isolated "job shops"
(3) MACHINES - realize the 1:1 relationship among processes, operations and equipment
                            - equipment that can rectify flow
(4) CUT LOT SIZES - reduce set-up times


1.2. Output requirements  determine TAKT time
(1) Takt times and standard operations
(2) Flexible manpower line (minimal manpower)



1.3. The pull system
(1) The pull system & fill-up system
(2) KANBAN

2. Autonomation (Jidoka)
2.1. Movement vs. work

2.2. Quality is built in to process
(1) difference between machine autonomation & automation
(2) autonomation of manual lines - Fixed stops

2.3. Flexible manpower line
(1) separating the work of machines and humans
(2) eliminating "superfluous viewers" through autonomation
(3) Preventing the recurrence of abnormal situations

2.4 Shop mgmt is the mgmt of abnormalities
(1) Visual control
 - Give people standard operations, fixed-position stops and pacemakers
 - Give objects KANBAN, standard work-in-process and production control boards
 - Give machines ANDON signal lamps
(2) No work/full work control
(3) ANDON
(4) POKAYOKE
(5) Autonomation (JIDOKA) continuously

BMW plant visit - SC

BMW runs only one line for the X5 & X6.
Every 2 hours people rotate workstations. This help cross-training and health factors for repetitive motion.

Creating Flow in a Mixed Model Manufacturing

1. Flow Manufacturing
Flow manufacturing is the best way to manufacture with the least amount of wasteFlow manufacturing is building the product in a continuous manner w/o any stoppages or bracktracking.
We should always try to create continuous one-piece flow first and when we can't flow, we should pull through a signaling method (e.g. kanban.) 
     Kanban should be seem as a temporary countermeasure to our inability to create flow  
Flow manufacturing is not a new concept. E.g. Henry Ford's 1913 factory in Highland Park with one product: Model T and no product variation at all (...any color you as long as it was black!) 
Variation killed Ford's flow concept. Customers wanted more options.
2. Flow in a complex product mix
Creating flow is not new; however, many companies struggle with implementing flow. Many lean initiatives stall after mapping. They look at the complexity of their environment. They are overwhelmed and they do not know where to begin, and too many questions are left unanswered:
- Product variety and mix
- Demand changes
I hear often, Toyota can achieve flow in a complex environment because it can level the demand for months to create stable mix for their factories. They say they can't apply lean tools of flow and pull in their dynamic environments
3. Challenges of the real factory
Very few plants can afford to purchase and dedicate equipment to each product.
Share equipment for build multiple products is common. With more new products and demand variation, complexity sets in. Better scheduling systems are added which in turn adds more to the complexity. Where is complexity?
- High product mix: products with many options, variation in lead time and cycle time.
- Shared resources: equipment. Capital intensive monuments with focus on max utilization
- Information flows: scheduling is difficult and change by the minute. constant review of inventory and priorities to adjust schedule. MRP.
4. Using Value Stream Mapping
Value stream mapping is great tool perform as follow:
Step1 - Select a product family
Step2 - Create a current-state map
Step3 - Create a future-state map using lean principles
Step4 - Implement the future state through structured continuous improvement activities
5. It looks very straight forward so why many lean initiatives stall after creating?
The difficulty lies in applying these steps in factories that have a high mix of products that must travel through the same value stream.
6. Mixed model production plant
Mixed model production means producing a large variety of mix of products or products variation through the same value stream at the pull of the customer.
Mix model is really a countermeasure to variability. We applied mixed model techniques where variability is high. Therefore, lean principles apply in a non consistent and level schedule. 
7. Product family
A product family is a determined group of products that are treated as one:
- We use the total demand of the product family rather than the individual volume for each product.
     A product family is different to a product type: wrenches and clamps can be one product family. Processes define a product family not functionality of the product.  
- Flexibility is built-in to produce the right product at the right time by increasing the number of products types in the mix and increasing the total volume: when demand is down on one product, we can build another product whose demand has increased. This eliminates overproduction & inventory while increasing delivery
     Once again, a product family is defined by the processes - common operations and their respective work content
- Any mix of products for a product family can be produced, as long as the total volume does not exceed total family volume.
The key for creating a mixed model factory is selecting the right product family, understanding the total demand for the product and treating it as one product for scheduling.
8. Creating product families
Product family is a grid that contains a list of processes (columns) and a list of products (rows.) Tips:
- When products flow from one process to the next and then back to the first process: List the process as many times as this action takes in order to show product flow
- when product must require a specific equipment. break process by equipment
- When alternative machines (could run but are not the primary choice) use "A". If there are multiple alternate processes, use A1, A2, A3, and so on.
- If product variation does not affect manufacturing processes (e.g. packaging, graphics,different languages, etc,) it may be easier to place only the base model number.
Creating family products:
- sort by similar downstream processes. Downstream, starting with the customer, the point when continuous flow must end and pull begins.
- Products in a product family share about 80% of the same downstream processes.
- the total work content of downstream process steps for each part in the product family should be within 30% of each other. Use the range of work content:
(Highest value - lowest value) / Highest value x 100

Lean and flow manufacturing

Lean is about eliminating waste and flow manufacturing  is the best way to manufacture with the least amount of waste
- Waste is any activity that does not add value. 
- Value is any activity that transforms the product in a way the customer is willing to pay for. customers typically don'r want to pay for:
  • Overproduction
  • Material handling
  • Waiting
  • Scrap
  • Rework
  • Inventory
  • Overprocessing or even inspection 
- Before we can eliminate waste, we must be able to see it. If we can identify waste, we can target it for elimination. if we can't see it, it will remain.
- The lean steps:
1. Specify value - from the customer, as the customer always defines value
2. Identify the value stream - map all the current steps needed, including value-added and non-value-added, of the product and its components (material flow) and the instructions among all steps (information flow)
3. Create stability - get processes on control: equipment, people and material
4. Make value flow - develop and implement a future state maps where we processes are linked
5. Let customer pull - link customer demand: mix and volume.
6. Pursue perfection - repeat all over again.


This principles help us identify waste and provide ways to help us to reduce it.
w manufacturing is building the product in a continuous manner w/o any stoppages or bracktracking.
We should always try to create continuous one-piece flow first and when we can't flow, we should pull through a signaling method (e.g. kanban)