Managing Automation - February 2008 - (Page 18) [ COVER STORY ] checklist plant floor to document and standardize processes using lean techniques. “Our chalprocesses and work, reduce waste, implement lenge is: How do we make our processes more pull-oriented production, and level production efficient so that we don’t have to scale our orlines. Only 20%, however, said they have atganization’s headcount in order to absorb the tempted to achieve the same benefits by apadditional challenges of a more complex prodplying lean thinking outside of the plant floor. uct environment?” Ploudre says. As more manufacturers reap the benefits Many manufacturers also are realizing that, of lean on the plant floor, however, reluctance unless they remove waste and variation from to apply the same principles to non-producprocesses — such as engineering and detion processes and functions is fading. Informand planning — that feed critical services mation technology manufacturing giants IBM and “Lean breeds relatively well in the Intel, for example, have becaptivity of the plant floor. Outside gun applying lean princiof [that], it needs some retooling.” ples to supply chain management and planning — Manufacturing Insights’ Bob Parker processes. By removing waste from processes — for example, how the and information to the plant floor, the procompany places, traces, and resolves probduction efficiencies they hope to derive from lems with purchase orders — IBM expects to lean will remain beyond their reach. trim supply chain costs by $10 million in 2007, “Organizations that have been at lean for says Earl A. Smith, IBM’s director of strategy, some time are now starting to see a slowing architecture, and supply chain process. As a redown in the benefits on the plant floor, and sult, IBM has decided next year to triple its inthey realize they won’t be able to complete vestment in deploying lean outside the plant their efforts there unless they work on things floor and to begin to apply lean principles to its like leaning out the supply chain,” says Robert processes for provisioning integration and conMartichenko, president of LeanCor LLC, sulting services as well. which provides logistics and supply chain Other companies, such as Hayward Induslean training and consulting. tries Inc., are using lean methodologies to Some organizations have been inspired to eliminate waste and cut time and rework from expand their lean efforts beyond the plant the new product development process. And floor simply because lean results there have medical equipment provider Maquet is applybeen so impressive. At Intel, Ploudre says, ing lean thinking to sales and marketing supply planning executives launched their lean processes with the goal of making order effort after the Colorado Springs, CO, chip flows more manageable and predictable plant delivered eye-popping lean benefits. while also listening better to customers. For manufacturers looking to apply lean to non-production processes, it makes sense WHY ENTERPRISE LEAN? to start with the supply chain. Lean producTHE PRINCIPLES OF LEAN Why are manufacturers applying lean to tion processes are easily undermined by slow ● The reduction of cost by removing all processes beyond the plant’s four walls? or inaccurate order processes or out-of-sync organizational waste At many companies, the push is rooted in supplier collaboration that can inflate inven● Just-in-time production and the eliminaa need to cope with increasing complextories. According to the Aberdeen report, tion of waste from overproducing ity. As companies outsource production, manufacturers that have used lean principles ● Pull systems and the use of kanban techturn to globally disbursed suppliers, and to remove waste from the supply chain have niques to replace complicated materials attempt to satisfy customers with more reduced both complex order cycle times and planning systems product variety and innovation, they often manufacturing delivery times from several ● One-piece production and the use of find that their business processes are months to several days. reduced lot sizes buckling under the strain. Applying lean principles to the supply chain ● Level production and mixed-model At Intel, for example, increasingly adcan be much more challenging than doing so production lines vanced microprocessor products and in the plant, however. For one thing, while ● Jidoka or quality at the source soaring product variety are multiplying many shop floor workers and managers readcomplexity, so much so that workers in ily take to lean concepts because they can eas● Full utilization of workers’ capabilities and consideration of workers’ safety the company’s supply planning organiily visualize and understand the improvements zation are having trouble keeping up, that lean thinking brings, people involved in ● Visual management or self-display of workers’ progress says David Ploudre, a manager in Intel’s managing the supply chain often have a hardsupply planning organization. Intel’s aner time. Rather than building physical products ● Elimination of inventories in order to swer: Attempt to standardize, document, in a confined work cell, supply chain workers expose problems in production systems and remove waste from supply planning and managers are processing information. In February ma 18 2008 Photo courtesy: Manufacturing Insights
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