The 10 components of an effective lean operation

By David McDonald • on July 29, 2009 • 2 Comments

In my opinion and experience, there are 10 components or definitions for an “effective” lean operation. These include:

  • Safety is not a slogan. It is acted upon and driven similar to quality and other key metrics.
  • Productivity is improving 10 percent or more per year, quality metrics are improving at 25 percent or more per year, and overall equipment effectiveness (OEE) measurements are utilized for continuous line improvements.
  • Visual controls are in place to help measure our Managing Daily Improvement (MDI)
    • Quality cost delivery and service (QCDS) boards are in place and acted on daily
    • Associates meet every day to review the previous day and current day
    • Statistical process control (SPC) tracking is in place on key processes
    • Andon lights and abnormality response systems are in place
  • Housekeeping is continuously improving, making sure there is a place for everything and ensuring everything is in its place with no useless clutter. Shadow boards are being used and lines are painted on the floor for safety and as a prerequisite for standard work.
  • Kaizen methodologies, the process of continuous process improvements, are linked to strategic objectives. Kaizen events are executed monthly to drive performance. Associates are involved and challenged. Resources are dedicated and the company is utilizing a strong continuous improvement office.
  • Raw and in-process inventories, which are the amount of materials the plant needs for orders within five days, are moving toward a build-to-order focus. In short, we are building only what we need to fill daily orders. Create the flexibility to create any product, any day.
  • Production schedule compliance, which is meeting the production schedule as planned, is at 95 percent or greater; and the Customer Service Index (CSI), which measures if orders are complete and on time, is at 90 percent or greater.
  • Associates are provided at least 20 hours or more per year of off-the-floor, or classroom, training.
  • A production process is established for daily, weekly and monthly accountability.
    • Daily meetings review the schedule, quality, cost and inventory
    • Weekly financial accountability meetings
    • Monthly scorecard reviews
    • Quarterly reviews
  • The plant is always moving toward the next record in safety, productivity, quality and inventory levels. Associates are excited about creating a positive environment where people hold themselves accountable.

How does your plant or company define an effective lean operation? Respond to this blog post with your questions, comments and stories related to this topic.

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Comments

(1)

By Robert Schindler on September 4th, 2009 at 5:17 pm

This is a great list to help you get focused. I have seen plants where safety is a way of life and it has resulted in improved quality plus better productivity. The plants with the clearly defined processes of reviewing their progress tend to achieve their goals. They have a target and everyone knows where to shoot. Thanks.

(2)

By Knowledge Process Outsourcing Philippines on March 2nd, 2010 at 7:38 pm

I think this post is brilliant. I came across your site while trying to find a source for business-related topics. This is valuable information presented in a clear, concise manner. Thank you for your thoughts; you bring up an interesting point!

Regards,
Yolanda

http://www.kpo.com

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