Point Kaizen

Point Kaizen describes improvement actions concentrated on one workstation = on the spot.

In general, all lean activities are striving to increase the output of your processes by simultaneously increasing the level of quality by shorten lead times and using less resources. But not all lean initiatives are reaching these targets. Typically the cause lies in the lack of clear targets by the management combined with a misinterpretation of kaizen activities and organizational change.

Kaizen is the Japanese term for “change for the better” on a continuous matter. Point Kaizen refers to a compressed focus on one workstation and improvement actions during a few days, where e.g. in the end the station is no more the bottleneck of the line/cell. For many people this is considered as “Lean”, but it is only a small part of the journey to real operational excellence.

As mentioned Point Kaizen is a scheduled event. When you have an own Lean Management Team or Kaizen Manager these are the guys who are in charge for the upcoming days. Once the team is gathered the action starts.

5S all over: Yes! Let’s start! Use the euphoria and sort out, get rid of all unwanted objects. Clean-up and proper arrange tools needed. Install e.g. flow racks following the 2 bin principle to ensure straight material flow. The Kanban System and FIFO can’t be skipped. Once the workstation is transformed - everybody is proud to have been part this lean activity and communicates the success story.

If you continue with Point Kaizen activities you will reach a better performance on each isolated workstation and probably everybody thinks that you have a great lean initiative. But the real long term results are missing out. So why to continue with lean activities?

Take a step back and see what you have so far. With the improvement actions on each workstation you have raised the efficiency of all single steps but didn’t consider the flow of material in between. It might be tiring to put all this effort in and then the management comes along and sees no obvious progress. This is the point when you move from Point Kaizen action to a systematical organizational change. This process is focusing on the underlying targets of the organization, such as raising performance, decreasing lead times, improving quality and making more profit.

The A3 format comes back in the game. Not only the A3-report and A3 problem solving but more the target setting on an A3 format that tells the story of how the targets can be reached by preset measures. Combined with the future state Value Stream Map showing all Kaizen Bursts each representing a Point Kaizen activity. All those measures lead to a future state of material and information flow that drives your organization into new spheres. In the future with the new Value Stream your bottlenecks will shift along this stream and always creating new point kaizen starting points. Bottlenecks by this can be either stocks of material, high process times or a lack of information. All Kaizen activities, no matter concerning material or information flow, are implemented following a prioritized list. You not only will have to reallocate resources, but also actively participate on the process of organizational change. You and your mid-management are in the driving seat, you have to know where your organization is heading, so make sure that you and your management are participating on Kaizen activities.

Point Kaizen is the first brick of the foundation for organizational change. With the systematic identification of bottlenecks, Point Kaizen activities can be planned and conducted. To have quick changes but is still able to deliver, one bottleneck after the other is worked on. Each Point Kaizen delivers one piece of improvement for the overall improvement needed. These superordinate targets are an increased output, reduction of lead times by simultaneously achieving Zero Defects Policy and all this combined with lower labor costs.

The Osborn List

Brainstorming with the the Osborn Checklist:

When it comes to getting new ideas - the so called Osborn List is a great method to steer the process. This creative idea generation technique is named after its inventor, Alex Faickney Osborn. Osborn is also regarded as the father of brainstorming.

The Osborn List is a simple method to support the process for concept creation, it thereby is a comprehensive list of questions about ideas and problems which can be used either individually or in groups. The main goal is to encourage creativity and divergence in concept generation.

The series of simple questions need a point of focus, which can either be an existing solution or a proposed concept to a designated problem. During the brainstorming session writing each statement on a card will help you to structure the approach itself. Randomly take a card while discussing alternative solutions.

When you have your topic, product or process you want to discuss, go through the checklist. The Points are:

• What else can it be used for?

  • New ways of using it? Other use when modified?

• Can it be adapted?

  • Is there anything out there similar to this? What other idea does this suggest? Was there anything similar in the past? What could you copy? Who could you emulate?

• How can it be modified?

  • New direction? Change in color, design, motion, form of shape...? Any other changes?

• Can it be magnified?

  • What can be added? More time? Greater frequency? Stronger? Higher? Larger? Longer? Thicker? Heavier? What value can be added? Duplication? Multiplication? Exaggerate?

• Can it be minified?

  • What can be taken away? Can it be smaller? Condensed? Miniature? Lower? Shorter? Narrower? Lighter? Streamline? Split up? Less frequent? Understate?

• Can it be substituted?

  • Can it be replaced? Who else could do it? Other components? Other material? Other process? Other power? Other place? Other approach? Other time?

• Can it be rearranged?

  • Carry over parts? Interchange components? Other pattern? Different layout? Different sequence? Change cause and effect? Different place? Change schedule? Earlier? Later?

• Can it be reversed?

  • Change positive and negative? What about the opposite? Turn it backward, upside down, inside out? Reverse roles? Turn tables? Turn other cheek? Change shoes?

• Can it be combined?

  • What about a blend, an alloy, an assortment, an ensemble? Can units be combined?

Often the Osborn List is remembered with the mnemonic aid of "SCAMPER" which thereby stands for - Substitute, Combine, Adapt, Modify/Magnify/Minify, Put it to different use, eliminate, reverse/rearrange.

The Osborn List will support you to gain a new perspective on existing ideas, products and processes. Please be aware that the list helps you for improvement sessions but shouldn't be used in the beginning of an innovation process itself.

Lighthouse Project

When talking about Light House Projects this means nothing less than that a small sector of your organization e.g a department is already turned around. By that we are talking about living already the ideal state, that you defined for the complete organization.

Processes and structures can be seen as guidance for your organizations’ lean journey. It provides directions, shows what is possible and therefore is the kickstarter for a successful roll-out as people can convince themselves with their own eyes.

Just keep in mind that the lean journey with its process of continuous improvement is never over. The pioneer has to lead the way.

Target Agreement

A Target Agreement is a management technique where employees and management together reach an agreement on how to achieve the organization’s targets. It thereby consists of two key elements:

1. The TARGET

2. and the ACTIONS

Targeted state including the measures taken to achieve the set targets. Think about KPIs - a combination of quantitative measurable targets and an action plan following the PDCA.

Key Performance Indicator

Key Performance Indicators are measurements utilized to indicate the performance level or progress with regard to important objectives or defined success factors within your organization. To make it short KPIs are used to track or monitor the progress of your existing daily management system.

So how do measure our progress of our organization? How can we define what type of indicators we should use and what they tell us about the current state of our processes? And so on…

These are just some questions that might rise when thinking about implementing KPIs in order to better understand your organization and define a path to go for improvements. What processes are truly adding value to the final product or service the customer is willing to pay for and what is just waste?

Before you start implementing KPIs in your organization a helpful way is to categorize KPIs in two ways: leading and lagging indicators.

Leading Indicators
Leading Indicators are Performance Indicators that are tracking your process. So these are real time figures showing you deviation to given standard or if there is something missing in order to produce your goods or services. They have a real time effect on your delivery performance. The fun part with leading indicators is that you have real time results why it can also take months for a report showing how your organization is doing in general.
For example, talking about injuries, when an operator is involved in an accident during a process step. This incident will be documented on an incident rate report of the organization, for e.g. factory. So when you think about it you recorded an incident after it happened. This is a necessary process in the majority of organizations due to governmental regulations and safety laws. The question to ask is now what do you do with this information? Do you really know what caused it? The information is quite old. This is why the incident report is not a leading indicator but a lagging indicator.

Lagging Indicators

As just mentioned Lagging Indicators are result-oriented, because of this they are shown after something happened. With lagging indicators you react after an amount of time as you are reacting on something that is already in the past. Coming from automotive this is typically a customer claim in the field, you will have a lot of work to do to find out what actually caused the failure, if no proper traceability is installed. Attention: With those failures it is often miss leading that through assumptions symptoms are fight that are not real. Everybody from Task Force Managers to shop floor firefighters knows that. In this case you are not adding any value nor do you implement a sustainable solution.

Having this two categories in mind we can say that the majority of KPIs are lagging indicators. This is not only in the field of manufacturing. The most miss leading assumption thereby is that with Lagging Indicators we get the most information.
But openly asking - isn’t it better to prevent the accident before it happens? This is absolutely speaking for Leading Indicators - and by focusing on Leading Indicators your focus in daily operation will shift to your process and not the overall outcome. In fact: when focusing on improving your process as a side effect the overall outcome will increase automatically.

Where to start with KPIs?

First things first - don’t overdo it!

Start to ask yourself what is your daily business? What processes are constantly and repetitive in use? The same principle with Gemba Walks go to your employees and talk to them - ask what is doing well and what not. What can improve their work?

The situation can be daily checked with line reviews or the so called meeting cascade. Where on the lowest level with the shift hand over performance KPIs are reported and issues during the shift are addressed. This figures are then visualized on the e.g. “Cell Board” near the outline of the cell itself. Typically if you have an U-Shape Layout at the spot of raw material and finished goods.

If something goes wrong latest after one shift the focus will be on this process. This automatically prevents new incidents from having a threatening impact. This is the advantage from getting things done right away or afterwards when the game is already over.

Finally to bring it in a nutshell, try to bring your KPIs from lagging into leading. This will shift the focus on the whole organization towards daily processes and improving them with the help of daily Kaizen activities. Measuring the process constantly in real time gives you the opportunity analyze trends and adjust processes to be ahead of the game instead of being surprised by the market.
Analyze your data existing decide what to go for. Implement your KPIs and make sure they go hand in hand with a meeting cascade. This ensures the consistency of data used and that they are actually used to trigger actions. Based on the KPIs you will be able to drive focused improvement actions through shop floor management, visual management, standardized work and structured problem solving.

DMAIC

Define, Measure, Analyze, Improve, Control. Incremental process improvement using Six Sigma methodology.

DMAIC can bee seen as a data-driven improvement strategy and for sure is part, or will be a part, of your organizations SIX SIGMA quality initiative. DMAIC is an acronym for: Define, Measure, Analyze, Improve, and Control.

DMAIC is a cyclical process such as the PDCA is. The reason to go for the DMAIC is to strive for the best result possible with a structured approach.

These process steps are:

DEFINE: the customers and their CTQ (Critical to Quality) and the core process involved.

• Who are your customers?

  • What are their requirements for products or services?

  • What are their expectations?

• Go for a value stream and map the process flow through the complete business process

MEASURE:

• Define a plan on how to collect data from your core process

• Go for different sources of data in order to be as specific as possible on defects and metrics

ANALYZE:

• While analyzing the data along the process map make sure to identify the real root cause of defects and

• point out opportunities for improvement

• Compare shortfalls with the results of customer surveys

• Determine gaps between targeted performance and current performance

• Prioritize potential improvement measures

• Identify variation and their source

IMPROVE:

• Gemba Walks

• Improvement Kata

• Kaizen Workshops

• Target is to improve the current process in a simple and effective way

• Develop a prioritized action plan

• Do it!

If you want a structured approach, just read our PDCA article.

CONTROL:

• Stay tuned on your process improvement measures

• Make sure that they stay on track

• Prevent falling back to the “old way”

In the end, when you are in charge, require the full documentation. Make sure that everything implemented is well documented and a clear monitoring is installed that deviation can be fast identified.

Having or installing a sustainable problem solving culture in your organization will be key for the future. Make sure to institutionalize problem solving or a kaizen culture through training, training and more training.

Turtle Analysis

Turtle Diagrams are an effective method to understand the processes from both a managerial and workforce perspective. These diagrams can also be used to identify gaps in the organizations structure and further develop organizational procedures. From these activities further measures can also be developed for efficiency improvement.

How to use Turtle Diagrams
We will go through the diagram step by step:

INPUT:
Enter details of actual process inputs such as raw material, requirements, information, documents, etc.

PROCESS:
Enter your management process.

OUTPUTS:
Enter your expected or defined output of your process. This can be finished goods, products, records, documentation, etc.

CONGARTS you already described your main process. Now we will complete it with details.

WITH WHAT:
This is asking for materials and equipment. Enter details of materials, components, machinery, test equipment, software, etc. all you use in the process.

WITH WHO:
Resources and competencies. Enter human resources requirements, including qualification, competencies and training requirements or restrictions.

HOW:
The how goes for the supportive processes, procedures and methods. Write down linked processes, pre-processes, supportive processes, instructions, procedures, standard work described, etc.

WHAT FOR:
Key Performance Indicators. Enter the targets, KPIs, performance measures, etc. to measure effectiveness and efficiencies.

Example of a Turtle Diagram

How to use the Turtle Diagram for auditing
When running an internal audit, you can use the Turtle Diagram to understand the relation between input and output for the audited process or activity. In order to get full advantage of the audit, the auditor needs to assess not only the process itself but also the complete surrounding such as the process owner, stakeholders of the process, standard work procedures, training and qualification matrix of persons involved, as well as linked processes. Based on the Turtle Diagram Layout the auditor has a guide to follow through the process audit.

Running the Turtle Analysis
When talking about quality management, process analysis is a key part of daily business. With the Turtle Analysis and the resulting Turtle Diagram you will have the chance to describe processes in a simple and clear one pager. The summary of this one pager is the description of the most important process characteristics. This overview can then be taken to identify risks and weaknesses of the process and build the framework for upcoming quality audits.

The Turtle Diagram gives a clear picture of the links between two process steps or different processes. As usual in manufacturing environment the output of one process step is the input of the other. This can be made visible with the the Turtle Analysis. You starting point is then when interfaces do not run smooth or e.g. important information is lost during hand over phase.

In addition after a Turtle Analysis or audit with the diagram and identified risks and weaknesses you can define specific objectives to be addressed. As mentioned above you can steer and control your improvement actions with pre-defined KPIs, this helps you to visualize deviations from the set course easier.

If you think you need a deep dive on one specific topic found during the Turtle Analysis, we recommend the ISHIKAWA or the 5Why methodology.

Waste

Waste (MUDA)

Waste or MUDA is the opposite of value creation. Waste describes all non-value-adding activities the customers are not willing to pay for. The two main categories are obvious and hidden waste. While obvious waste can be eliminated, hidden waste can only be minimized.

When talking about waste there is no way around the 7 kinds of waste according to Taiichi Ohno most known in the lean world as TIMWOOD. Feel free to read the complete article on TIMWOOD(S) - yes you are right - where is this S coming from… keep on reading and you will see.

The 7(8) kinds of waste:

1. T = Transportation

2. I = Inventory

3. M = Motion

4. W = Waiting

5. O = Overproduction

6. O = Overprocessing or - engineering

7. D = Defects

8. S = Unutilized stuff

It is important to be aware of these kinds of waste in the list. But overproduction is the worst and typically initiates the other types of waste.

To read more in detail about TIMWOOD go here.

Pareto Principle

The Pareto Principle describes that 80% of problems can be closed with 20% of the causes. This principle is named after Vilfredo Pareto who found out that 80% of Italy’s wealth belonged to 20% of the population.

With this in mind it is worth to have a look at it.

Let us start with an assumption, according to the Pareto Principle it allows us to assume that

• 20% of input creates 80% of the output

• 20% of customers create 80% of your revenue

• 20% of causes create 80% of failures

• 20% of your employees create 80% of sales

• and so on…

But before you run away now and think you have the answer hold a second. With the 80/20 rule you might tend to say that it always have to be 100 - it’s not. Make a deep analysis before making such statements! 20% of your employees can also make only 20% of sales or 60%. So before you fire 80% of your employees keep in mind that the Pareto Principle only gives you an idea on the distribution.

The whole idea behind it is that most things in life are not distributed evenly!

When we talk about value adding activities and the final product is 100% What is with all the necessary tasks, that are not adding any value to the final product but have to be done to run the company.

Or think about failures and finding the root cause, where to start to take actions? This is great when you think about a Failure Pareto and you want to satisfy your customer as quick as possible. Of course you are focusing first on the most failures and most of the time - not always - the other failures will disappear as well.

But most important of all, your customer gains trust in you that you have the competencies to do the job.

The key point is that most things are not in a 1/1 actio = reactio relationship.

So what can we use it for this 80/20 rule?
The Pareto Principle in first place supports you on realizing that most of the outcome are based on a minority of inputs. This means:

• 20% of input creates 80% of the output > try to reduce those non value adding activities

• 20% of customers create 80% of your revenue > install a key account manager that the customers knows he/she is important to your company > your customers success is your companies success

• 20% of causes create 80% of failures > Focus on fixing those failures first

• 20% of your employees create 80% of sales > get those employees a reward

We could continue on and on. To bring it to the point > focus on the 20% and not on everything at the same time.

Some examples that might help you for a better understanding:

• Instead of spending a whole night to prepare a presentation and thinking about where to start > focus on one topic and do it. You will get a feedback anyway during the pitch. This feedback gives you the chance to take it and improve it.

• Instead of focusing on one solution that might be the best and go through all the details. Make a list of three and go through the pros and cons with your colleagues that probably know the topic better anyway and based on their opinion make a decision with what to go on.

Maybe this examples are nuts for you but we want to emphasize that you should focus only on the important 20% and forget - for the moment - the other 80.

Last but not least - the Pareto Principle is not a law of nature it is a guideline to steer your focus and to save time on problem solving or simply getting your job done faster.

FMEA

Failure Mode Effects Analysis - FMEA

The method of the FMEA - Failure Mode and Effect Analysis has been used for years in the automotive and manufacturing industry.

The risk analysis framework has been applied in a wide range of industrial sectors. The first areas of application were traditionally in product development. Based on this the integration of the production process planning and the production. In the automotive industry, the joint creation of FMEA for products and processes by Today customer, supplier and subcontractor are a natural part of a cooperation. 

The user is guided through the "10 Steps to Creation of the FMEA".

Step 1 - Review the process

• Use a process flow chart or an already existing value stream map to identify each part of a process

• List all process steps in a FMEA table

• If you think the list gets too long it might is. Use this chance to split up the process and cut the elephant. It makes more sense to work on smaller parts of the process instead of getting lost in the woods.

Step 2 - List potential failures

• Review all existing data and documents that can give you a hint about each component that can lead to a failure

• After having a complete list try to cut it down and to combine the parts of the initial list

• The chances are high that you will identify several potential risks of failures for each component

Step 3 - List potential effects of failures

• The effect is the outcome of a failure on the finished good or a process step

• It is common that not only one effect will occur for a single failure, don’t be suprised

Step 4 - Assign the level of failure to risks

• This is based on the consequences for each failure

• Think about the ranking as the worst impact that it can have

Step 5 - Assign the possibility of occurrence

• How high is the possibility of occurrence

• What impact will it have if occur

Step 6 - How can it be detected

• What are the chances that you will detect the failure before occurring

Step 7 - Calculate the RPN (Risk Priority Number)

• Severity (S)

• Severity x Occurence (S x O) = criticality

• Severity x Occurence x Detection (S x O x D) = RPN

Step 8 - Define the action plan

• With the decision making process followed by the prioritization from the RPN (Step 7) focus on the topics with the highest RPNs

• Follow a classic action plan by defining who will be doing what till when

Step 9 - Take action

• Get things done!

• Implement the defined improvement actions

• Follow the PDCA principle

  • Plan - done

  • Do - right now

  • Check - Step 10

  • Act - loop starts over

Step 10 - Re-evaluate the RPN

• Time to check on the impact of your actions

• Re-evaluate each potential failure identified and determine if the improvement measures have an effect or not

• If not follow the PDCA and start over with step 8

The FMEA is linked to all CIP and Kaizen activities - there is always something to improve.

Ergonomic Workplace

An ergonomic workplace is a work system that considers the ergonomic aspects of an operation and the operator such as the operator’s hight, range and reach with the goal that the operator does not need to bend or turn.

The ergonomic workplace goes hand in hand with the work improvement.

Definition and purpose

1. Reveal waste increasing cost and not adding value.

2. Find waste in the movement of workers, eliminate/improve, pursue net work adding value.

Worker Movement

Lean Manufacturing and Ergonomics may have different roots and directions but together they can complement each other and define a more efficient and safer workplace.

One of the best person known for focusing on productivity and efficiency in manufacturing processes was Henry Ford with the invention of the modern assembly line. Ford really was focusing on eliminating waste and to cut down unnecessary costs in relation to the manufacturing of his cars.

Toyota is one of the best known companies that has stretched to the maximum the idea of Lean Manufacturing and is now holding the pole position when it comes to the reputation according the elimination of “waste”.

By looking at the Lean Model as well as Work Ergonomics, you clearly see the necessity of both practices in the industrial workplace, as well as observe that both can complement each other. 

The 7 types of waste to eliminate include:

• Transport

• Inventory

• Motion/Movement

• Waiting

• Overproduction

• Overprocessing

• Defects

The list of TIMWOOD is what Toyota has defined as the seven major types of wastes or non-value-adding activities. The seven wastes do not add any value to the product and the customer in the end is not willing to pay for it. Therefore it is essential to remove as much waste as possible which will have also an effect on the ergonomic workplace and furthermore on the health of the operators.

Some of these things like transport, waiting or unnecessary movement can be reduced to a limit what the operator still needs because as human being the operator is limited by his body.

The Lean Manufacturing initiatives and workplace ergonomics stepped into the manufacturing world at different times and therefore are not fully integrated. But you are perfectly advised by combining the principles of Workplace Ergonomics with Lean Manufacturing initiatives. Through a cooperative assessment and teamwork you have the chance to complement each other in making the workplace more efficient and a safer place.

Blue Ocean Strategy

Innovation for New Markets

The blue ocean strategy leads out of the shark tank: instead of copying the competition, companies find new markets.

Blue Ocean strategy: Off to new markets

Which company does not dream of an untouched market? And how many companies are stuck in the constant, sometimes ruinous competition and are treading on the spot? In order to escape this fierce struggle for survival, a rethink is necessary: If your own market or the market you are aiming for is too fiercely contested, you create a new one.

Opening up new markets is the core idea behind the so called Blue Ocean Strategy. To explain it simple the Red Ocean stands for existing markets where the sea is full of blood and therefore red, the Blue Ocean is the untouched, sweet spot of sea where nobody was before you.

I think we don’t have to discuss the obvious advantages of an untouched market. At least in the beginning you won’t have any competition. Your organization can act instead of react which automatically gives you higher turnovers and returns. But it is for sure not risk free, failure can get you everywhere. And even worse you will swim all by yourself not finding any customer and starve to death or die of thirst.

Customer Centric Focus

The Blue Ocean Strategy comes with several tools with which your organization can create new business cases. What they all have in common, is the focus on the customer benefit, regardless on the how to sail the blue ocean. Just think about technological innovation.. typically driven by making the customer lives more comfy.

Analyze and reposition your offer

The Blue Ocean Strategy first starts by analyzing your existing offer, which has to be done from the customer perspective. This is followed by the competitors analysis, what do they have that customers buy their products instead of ours, what is the extra value? The outcome is then recorded in a so called value curve.

The next step is the usage of the so called ERIC square. A typical tool to redesign service offers of drive product developments. The Blue Ocean gets a shape.

The E stands for Eliminate: What existing features are obsolete for the new use case?

The R means Reduction: What is important for the customer but can be reduced to an absolute minimum without being kicked out?

I for increase: What product features should be raised above the existing standard?

And finally C for Creativity: What awesome features does the customers want but don’t know yet?

A slightly different approach can also be the use of the Osborn Checklist, but won’t be covered in this article.

Creating Blue Oceans

Let’s face it, you can have the best product in the world, but without a market it is worthless. This already indicates the crucial factor of success of a blue ocean strategy, e.g. creating new markets or at least expand the existing one. To help you getting to new markets six paths can be taken:

Are there existing strategic groups in the industry?

Are alternative fields of operation possible - and if so, which ones?

Is there a potential target group that has been ignored so far?

What are the new mega trends that others haven’t recognized yet?

Are there complementary services or goods that nobody has on the radar?

What functional or emotional motives would customers want to buy the new product from?

Following these questions already shows you that the Blue Ocean Strategy rarely ends up in a completely new and disruptive product. The reality is that different product features are combined and given out to the market as new release. That is for sure not the idea behind the Blue Ocean Strategy, but used for it. The benefit of the Blue Ocean Strategy is to turn non-customers into customers. These folks are your blue ocean.

Have a look on Show Stoppers
Like with all theories, the Blue Ocean Strategy seams quite simple. But no matter what and how you do it, make sure to have a clear and transparent communication throughout your organization. Everybody has to be on board and support the planned journey, otherwise chances of getting stuck at the harbor and not setting sail are quite high.

And finally, when set goals or targets think about SMART, most important > it has to be realistic - can’t say this often enough.

Checklist: Blue Ocean Strategy

In summary, the following aspects must be taken into account in the Blue Ocean Strategy:

1. A saturated market with predatory competition does not permit growth.

2. A new, unrivaled market is created through beneficial innovation.

3. The existing offer is analyzed from the customer's point of view.

4. A new range of services or features is created.

5. Employees in the own company are involved in the implementation.

SMART - OBJECTIVES

Goals are helpful both in our daily work and in our personal lives, as they give us something to work for. 

SMART - Objectives drive us forward and continually remind us of what we want to achieve. They help us to set priorities more clearly, to focus better and give us the strength to continue.

HOW TO DEFINE GOALS 

Objectives can be manifold, but one of the best known methods to describe goals is the S.M.A.R.T. methodology. The 5 steps can be used to clearly describe a goal and make it "tangible".

The acronym SMART stands for the following 5 steps:

S - specific | Clearly defined goals

M - measurable | The target should be measurable (has a KPI)

A - accepted | The accessibility of the goal should be accepted by all stakeholders (alternative: ambitious/attractive)

R - realistic | The attainability of the goal within the set framework should be realistic,

T - terminated | The time of target achievement is clearly defined.

FURTHER DEVELOPMENT, SMART BECOMES SMARTER

Some of the terms have changed over time. So the A at the beginning stood for agreed upon. This is from the thinking that the term is used within a company. In this respect, it was important that a goal was accepted by all involved. Over time "agreed upon" often became "achievable" or "attainable".

Not only the terms themselves have changed. The acronym itself has often changed recently. Many authors have switched to making SMART - SMARTER.

The E stands for "evaluated".

The R stands for "reviewed."

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In my opinion, the popularity of SMART goals stems from the simplicity of the method and the higher probability of success. Why should it be higher? Now the SMART method requires from the person or department that set the goals a certain time and focus on those goals. When one is so intensively involved with defining goals, one inevitably thinks of ways in which the goal could be achieved. Furthermore, one has already taken the first step and is now more motivated to take the next necessary steps.

Of course these steps must not be missing. Action plans must be derived from the goals, whose degree of goal achievement should be regularly reviewed. Regular monitoring of progress enables me to adjust my next actions to the achievement of my goals. 

Doctor Nurse Principle

In the Doctor Nurse principle, the operator creating value is considered as the doctor, he receives tools and goods he needs to do his job from the nurse in this case logistics. For this reason, the doctor can’t do his job without the support of the nurse.

What can we learn from hospitals and how can we adapt it to the lean world.

In hospitals it is crucial that the doctor can fully concentrate on a surgery, the doctor is the single point of contact towards the patient using his tools combined with his training. Everything distracting him from being focused has to be eliminated. In order to give him this capability he needs assistant right next to him. The nurse’s job is to support the doctor and provide him with all equipment, tools and material he needs just in time.

Applying this principle to production is not that hard. To use the doctor nurse principle on the shop floor some requirements have to be met. As mentioned think about the operators as the doctor, they have to concentrate on production. As they are the once generating value for the whole organization by assembling the components which customer are willing to pay for – they need to be placed in the center of all activities – the rest is supportive.

In lean manufacturing this is called the line-back approach. Primary processes are the once that add value so focus on the operation and prepare everything that supports it. The nurse takes care of all other activities, most of the time non-value adding activities but necessary.

Doctor Nurse Principle

Arrange the work station in a way that gives the nurse free accessibility to the work area without disturbing the doctor, i.e. filling up kanban shelfs with new material while simultaneously removing empty boxes.

With the approach of separation of primary and secondary processes in two physical areas none of the process will be interrupted by the other.

In addition, this principle is driving the mindset of the organization to focus on a lean production process and how best it can be supported. If you do so, you will also have the advantage by separating value-adding and non-value-adding activities to find you approaches to minimize the non-value adding activities.

Another way of calling the nurse a nurse is a water spider or in lean terms a Mizusumashi – the inbound material supplier.

Shojinka

Constantly improving the amount of workers in a production cell to match the volume of demand and type which has been given to the unit requires that training is provided to every worker in various process steps. The layout of the work cell is done in a circular or U-shaped layout, where the number of operators performing can vary and be adjusted. The capacity and ability to have an adjustable manufacturing process is relevant to meet the demand profile and have a sustainable growth.

Ever thought if there was a particular way through which you can use less manpower but produce more? Needless to say, there is a way through which you can do this: Maximizing the output while simultaneously minimizing the input is a business 101 idea and theory that we carry with us since inception, and strive hard to completely tackle for the whole of our careers.

There certainly is a way through where you can do more with less, and that way is known as Shojinka. It is also referred to as "flexible staffing" or "flexible manufacturing." Shojinka is again a Japanese term, and it was born from the lean manufacturing principles of Toyota. There is no denying that the idea of "flexible staffing" has proven to be the best performer in lean theory.

So what can be understood as Shojinka

Primarily, Shojinka is defined by two elements. The first one is the operators are trained on several workstations and following a qualification matrix. The second one is the layout for the work cell, of cause preferable in a U-Shape layout rather than a straight old fashioned line, but this has to be discussed in all cases separately.

Let’S have a look on the Pros and Cons of Shojinka

Pros

Flexible staffing, as its name suggests, has the biggest advantage in that the staff is flexible. This means that the operators have been provided with training in almost every part of the production following the qualification matrix.

This will enable them to work in areas of production where there is more demand or will allow them to switch quickly as the demand changes. Unlike a highly specialized working environment or fixed linear manufacturing, flexible staffing allows you to keep your efficiency high under every type of manufacturing demand, rather than an ideal pre-determined set. In addition to this, Shojinka also provides an opportunity for operators to work on improving products or on the various side whenever the demand falls all across the board. It will not only enable your staff or the operators to become more effective and efficient at changing levels of demand, but it will also allow them to swap between these specific levels on a shop floor that has been properly and correctly set up.

The inputs and the final outcomes are kept on the identical and corresponding sides of the work cell due to the U-shaped manufacturing line, which ultimately helps your organization of logistics and transportation. Furthermore, it also enables the operators to move conveniently between the first process step and the final process step on an assembly line without the need to walk its whole or complete length.

Cons

As soon as it has been implemented and applied, there are almost no cons to the Shojinka assembly line.

But to start off implementing flexible staffing you need to clear of some major obstacles to get started. If not already implement you have to install a training matrix and train your operators accordingly, to get them qualified to handle all aspects of your operation. Undoubtedly, it may require you to make some investment upfront.

Simultaneously with the training of your operators you will need to standardize every process step in your production. By doing so you will reduce the amount of training and therefore qualification needed in order to fulfill the requirements for the single process steps, as they are broken down to the simplest operation.

Clear and simple “Standard Operation Instructions“ (SOI) will be required to explain the operation and guide operators through the qualification and later performing the process step. By this due to variation of operators in a assembly cell they can get fast into new work requirements. In addition the supervisor can always react faster as the standard process is always described and if deviation occurs the cause is faster detected and eliminated.

So the cons can be wrapped up as investments upfront. Paying all of the expenses at the initial stages for the purpose of integrating and incorporating Shojinka will prove to be worthwhile in the end. There is no denying that your workforce will ultimately become significantly streamlined and that Takt Time of goods will be flexible to the max.

Kamishibai Board

The Kamishibai Board is part of the visual management in Lean Management that supports you on managing recurring tasks in a way that the status of each task is clearly recognizable by everyone in your organization.

The tasks are listed by their frequency and the responsible persons. The design of the cards can vary, but typically T-Cards are used as the handling is quite easy. These cards contain on both sides the information of each task. One side of the card is red the other one green. RED: to do, GREEN: done. So the color is indicating the status of each task.

By using these two color coded cards everybody in the organization will recognize if all activities are on track or if there is a backlog ahead on performing daily, weekly or monthly activities.

Example Kamishibai Board - weekly tasks with assigned persons

Kamishibai is a Japanese term, to bring it in operations terms it can be understood as mini-audits. The Kamishibai is a great starting point for Gemba Walks mainly in the admin area of your organization but can also be utilized in the service and maintenance department. It also supports 5S activities and assists in checking the continuous improvement actions on checking on standards and improvements during regular meet ups.

The Kamishibai approach has different sections. E.g. a simple planning board with T-cards with a red and a green side, a list of person in charge and a 3C list. The 3C list thereby describes the Concern, defines the Cause and lists the Countermeasures, find a free template (in flip chart format) here.

The planning section has the tasks tank, on the far left side all tasks are stored in holders (T-Cards) or e.g. magnetic cards that are also green on the one and red on the other side. One section further to the right you can implement a matrix with responsible person for each row and all weekdays as column. By this you can easily assign tasks.

Between the organizational and the problem solving part there should be space for the escalation or support needed tasks. It might happen that an assignee is not able to fulfill a task as he/she is in the need of information or active support from a different level or department.

To sum it up. The benefits of the Kamishibai methodology is mainly the visualization part. It gives clear structure and is understandable at first sight. With the Kamishibai you are able to perform so called “mini-audits” on a regular basis that helps you driving the continuous improvement process in your organization and supports you on performing effective Gemba Walks. Instead of heaving some chit chats you can bring information straight to the point and address any issues fast.

You can use the Kamishibai methodology for all kinds of work areas in your organization, e.g. you have control indicators for methods, processes, documents, standards and much more. In the end the Kamishibai helps you to keep the routine of defined standard work procedures as results of KAIZEN activities. If it works congrats, if not congrats - you found something that can be improved.

Kaizen Manager

Kaizen Manager (Change Agents)

Kaizen Mangers are the people in your organization who initiate changes within your organization or support departments on the path along the continuous improvement process (CIP).

Change Agents are the key players in your organization to integrate new processes or improvement actions and simultaneously stabilize departments throughout a change or transformation process.

When talking about a Kaizen Manager or Change Agent he/she has the following duties with the support of the Change Leader:

• Support the change process by defining the program, participants, selecting suitable processes and defining the targeted state

• Set individual targets for responsible/affected persons

• Support responsible persons for each individual improvement process through coaching or scheduling exchange rounds with other key players. (To stay on track)

• Support the onboarding process for new people to the program

• Support on the transformation process from learning to actually doing

• Coordinate and support further expansion within departments

• Support on the transformation process of organizational culture

• Challenge status quo with fundamental questions on existing procedures

• Work closely with the heads of departments to anchor the new improvement culture across the complete organization

What ever it takes, it has to be clear that a sustainable change culture can only be established if all of your mid and top mgmt. themselves drive the integration of all their direct reports. The Kaizen Manager is the pure supportive function in the role of an internal consultant to guide the process.

Makigami

The Japanese term Makigami is developed out of two. First the MAKI (yeah like the Sushi) meaning roll or rolled and KAMI meaning paper. Before you go wild, in the word combination you write kami with “g”. So the question that rises is: What you do with a rolled paper? You use the Makigami to draw and redesign administrative processes. Like with all Lean or Opex activities, once the process is visualized with the help of a Makigami “value-adding” and “non-value adding” activities are marked. On the bottom of the Makigami you will find a time axis which shows the operating time and the pure value adding time.

With the help of the Makigami process analysis, the process is always viewed from the perspective of the process itself, never from the perspective of the employees. This has to be clear also for the waste attack activities in the process. With the Mantra of OPEX: the central question that must be brutaly honest answered: Is the customer willing to pay for this process step/activity? Is this what you are doing adding value to the final product or service?

After you recorded the current state of your process you start to redesign it by asking yourself permanent the following question:

What should the ideal process look like?

Take your planned future development and corporate vision into account to make sure you are not running in the wrong direction.

OCT

The Operator Cycle Time is the time an operator needs to fulfill a dedicated process step, including loading and unloading but excluding waiting time.

The Operator Cycle Time is measured from when the operator starts his/her process and is stopped when he/she is ready for the next workpiece (no matter if it’s there or not). Yes I said that the OCT is exclusive waiting time, but not exclusive the waiting time within the process itself. That means if the operator is waiting for a machine, he/she loaded, to finish the operation and unload the workpiece, this waiting time will be included in the OCT.

Most of the time OCT can be seen as the same as “cycle time”. The main difference comes from the waiting time an operator has, while a machine is running a process and the operator him-/herself would be ready for the next piece. This means in the end the OCT is always shorter as the CT. Going even further this means that the OCT can be shortened when installing a HANEDASHI device that autounloads the workpiece after the operation.

As with all lean management activities and targeted increase on productivity and flexibility time is on focus. But make sure to understand the process first, before running improvement actions you have to know what to improve.

A3 Report

The term A3 report comes simply from the size of paper which is used for the documentation of the report. The structure itself follows the PDCA methodology.

In the lean manufacturing world the best known use case of the A3 report is the problem solving report. In this case the responsible person from the quality department takes the A3 report, starts the problem solving actions and follows a systematic structure that makes it possible to describe the effects that are currently leading to a deviation from the standard. Using the A3 only makes sense when you don’t know the root cause yet. If you already know the root cause don’t waste your time. Fix it and go back to normal.

Schematic structure of an A3 report

Let us go through the different stages of an A3:

Describe the problem:
The A3 gives you the chance to initially describe the problem or symptoms - this can be done verbally or as a sketch. Don’t forget to mention when it was and under what circumstances. No matter what it must be easy to understand.

Keep in mind that the target in Lean Mgt. is always to train the people to improve their problem solving skills. Therefore if you are a quality representative try to coach the operators in this process or make a team work out of it.

The result of the description of the problem is the delta from the target state.

Root Cause Analysis:
Please be aware that your paper is only and A3 format. So either you go with an Ishikawa or a 5 Why. But not more. If you can’t conduct a root cause analysis with either on of these methods, the A3 is probably the wrong approach at all.

Counter Measures:
Following the PDCA plan your counter measures what you and your team or operators found out or might think have the most effect.

Lessons Learned:
Great you have done the job, you followed the PDCA and the root cause was found, defined measures helped and the problem is solved. No finalize the A3 report on where to find the documentation and what impact will it have on other operations as lessons learned.

When you are a quality representative using the A3 method ensure that the A3 report is also used for long term development of employees and quality standards.

With the help of the A3 report and a clear coaching through the quality department, all employees learn to recognize, evaluate and solve problems on their own. This is serving the general rule of continuous improvement (CIP)

Therefore the A3 systematic increases the problem solving competencies of your whole organization. And as already said, a problem is only the missing of an idea.

If you want to go deeper on the A3 report itself or the problem solving with the help of A3, we recommend our reading pick “Understanding A3 thinking” this book goes in the details and gives you great insights. Read our summary here. Or you can’t wait? Here is the link straight to the book:

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