Lean Management System LMS:2012: A Framework for Continual Lean Improv

Description

The success of a Lean manufacturing program depends far more on organization-wide leverage of Lean manufacturing tools than it does on the tools themselves. To this the organization must add the human relations aspects that earn buy-in and engagement by all members of the workforce, to the extent that workers will react immediately and decisively to the presence of waste. The synergy... Read more

The success of a Lean manufacturing program depends far more on organization-wide leverage of Lean manufacturing tools than it does on the tools themselves. To this the organization must add the human relations aspects that earn buy-in and engagement by all members of the workforce, to the extent that workers will react immediately and decisively to the presence of waste.

The synergy of the human and technological aspects of Lean form what Henry Ford called a universal code for the achievement of world-class results in any enterprise, and which he put into practice to deliver unprecedented bottom line results. This book expands upon and systemizes this universal code into a structure or framework that promotes organizational self-audits and continuous improvement.

The book's first section offers a foundation of four simple but comprehensive Lean key performance indicators (KPIs): waste of the time of things (as in cycle time), waste of the time of people, waste of energy, and waste of materials. The Toyota Production System's seven wastes are all measurable in terms of these four KPIs, which also cover the key metrics of Eliyahu Goldratt's theory of constraints: throughput, inventory, and operating expense.

The first section then adds a proactive improvement cycle that sets out to look for trouble by isolating processes for analytical purposes and measuring and then balancing inputs and outputs to force all wastes to become visible. It is in fact technically impossible for any waste of material or energy to hide from what chemical engineers call a material and energy balance. Application of this book's content should therefore satisfy most provisions of the ISO 14001 environmental management system standard and the new ISO 50001 energy management system standard.

The second section consists of an unofficial (and therefore customizable) standard against which the organization can audit its Lean management system. The unofficial standard is designed to be compatible with ISO 9001:2008 so internal auditors can assess both systems simultaneously. Each provision includes numerous examples of questions that promote audits in a narrative form as opposed to yes/no checklists or Likert scale ratings. The unofficial standard can also be downloaded (without the assessment questions) from the publisher's Web site. The third section elaborates in detail on the second and provides numerous real-world examples of applications.

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The Need for a Lean Management Standard
The Serpent in the Industrial Garden of Eden
Lean, Six Sigma, or Both?
Critical to Quality versus Critical to Lean
LMS:2012 Development Considerations
Organization and Implementation of LMS:2012
     LMS:2012 Section I: Foundation of a Comprehensive Lean Management System
     LMS:2012 Section II: Voluntary and Customizable Lean Management System Standard
     LMS:2012 Section III: Supplementary Detail

Lean Key Performance Indicators
Waste of the Time of Things
     Waste of the Time of Things: Cycle Time Accounting
     Division of Labor and Variation Reduction
Waste of the Time of People
     Waste of the Time of People in Service Activities
Waste of Materials
Waste of Energy
     Energy Efficiency Gap Analysis: Thought Process
The Material and Energy Balance
     Steady State Assumption and Control Surface
     Application to Painting and Coating Operations
     Application to Steel and Aluminum Manufacture
     Application to Machining Operations
     Application to Power Generation
     Material and Energy Balance, Summary
Do Not Use Carbon Emission Metrics
     Is Climate Change a Problem?
     Special Interests and the Climate Agenda
     The Cap-and-Trade Community Doesn’t Walk its Talk
The Recommended KPIs Identify All Operating Wastes
     Lean KPIs and Goldratt’s Theory of Constraints
     Lean KPIs and the Toyota Production System
     Lean KPIs and Lean Manufacturing Techniques
Waste of Capital Investment
     Non-Operating Processes and White Elephants
     Waste of Capital Assets in Operating Processes
Summary: Lean Key Performance Indicators

Integrated Lean Assessment
Why IMAIS?
Isolate
     Isolate versus Supply Chain Perspective
Measure
Assess
     Time of People versus Time of Things
     Energy versus Time of People and Time of Things
     Materials versus Time of People
Improve
Standardize
Summary: IMAIS

LMS:2012

Lean Management System Requirements
Provision 4.1: General Requirements
Provision 4.2: Lean System Documentation
Provision 4.2.1: General Documentation Requirements
Provision 4.2.2: Lean Manual
Provision 4.2.3: Control and Retention of Documents and Records

Organizational Responsibility
Provision 5.1: Organizational Commitment
Provision 5.2: Customer Focus
Provision 5.3: Lean Management Policy
Provision 5.4: Planning for Lean Operation
     Provision 5.4.1: Lean Objectives
     Provision 5.4.2: Lean System Planning
Provision 5.5: Supply Chain Responsibility
     Provision 5.5.1: Responsibility
     Provision 5.5.2: Management Representative
     Provision 5.5.3: Supply Chain Communication
Provision 5.6: Lean System Review
     Provision 5.6.1: General Requirements
     Provision 5.6.2: Review Input
     Provision 5.6.3: Review Output

Lean System Infrastructure and Resources
Provision 6.1: Resource Availability
Provision 6.2: Workforce Training and Empowerment
Provision 6.3: Facilities, Layout, and Supporting Services
Provision 6.4: Work Environment, Ergonomics, and Motion

Product or Service Realization
Provision 7.1: Planning
Provision 7.2: Customer Lean Operation Requirements
Provision 7.3: Product, Process, and Service Design for Lean
Provision 7.4: Purchasing: Lean Supply Chain Practices
Provision 7.4.1: Deployment of Lean Requirements to Suppliers
Provision 7.5: Lean Production and Service
Provision 7.5.1: Lean Process Control
Provision 7.6: Control of Gages and Instruments
Provision 7.7: Supply Chain Management
Provision 7.7.1: Customer–Supplier Relations
Provision 7.7.2: Transportation

Measurement and Continuous Improvement
Provision 8.1: Measurement and Analysis for Continuous Improvement
Provision 8.2: Monitoring and Audit
     Provision 8.2.1: Satisfaction of Customer Lean Requirements
     Provision 8.2.2: Internal Audit
     Provision 8.2.3: Measurement and Monitoring of Process or Service
Provision 8.3: Containment of Nonconforming Product or Service
Provision 8.4: Data Analysis
Provision 8.5: System, Process, and Service Improvement
     Provision 8.5.1: Continuous Improvement
     Provision 8.5.2: Proactive Action
     Provision 8.5.3: Preventive Action

DETAILS AND EXPANDED EXPLANATION

Lean Management System: Details
Process Perspective
The Need for Documentation
Lean Manual
Control and Retention of Documents and Records

Organizational Responsibility: Details
The Need for Organizational Commitment
     Management Commitment Loses the Luddites
     Management and Workforce Commitment: Workforce Flexibility
     Management Commitment and Training
Lean Management Policy
Supply Chain Responsibility
     State of Self-Control
Supply Chain Communications
     The Need for Internal and External Porosity
Lean System Review

Infrastructure and Resources: Details
Workforce Training and Empowerment
Facilities, Layout, and Supporting Services
Work Environment, Ergonomics, and Motion Efficiency

Product or Service Realization: Details
Planning
Design and Development for Lean
Purchasing and Lean Supply Chain Practices
Purchasing Process
Lean Production and Service
Lean Process Control
Supply Chain Management
Customer-Supplier Relations
Transportation

Measurement and Continuous Improvement: Details
Measurement and Analysis for Continuous Improvement
Proactive Action

Additional Lean Environmental and Energy Practices
Identification of Material and Energy Wastes
Reduction of Material and Energy Wastes
     Supercritical Solvents
     Counterflow Rinse Systems in Semiconductor Processing and Metal Plating
     Get a Sail!
     Don’t Ship Air (or Water)
     Innovative Use of Mechanical Energy
     Economy of Scale in Renewable Energy
     Application to Agriculture
     Innovative Thinking in Transportation
     4 Rs: Refuse, Reduce, Reuse, Recycle

Conclusion
Lean KPIs and CTL Characteristics
IMAIS Improvement Cycle
LMS:2012

Bibliography

Index