4th Edition Spring 2010

The home of Lean Thinking

Is it the key enabler to sustainable
continuous improv...
The home of Lean Thinking

             In this edition…
          1        Welcome
                   from Robin Jaque...
The home of Lean Thinking

      to the home of Lean thinking.

      Welcome to Source, in which        ...
Lean Learning

       Lean Learning
                              – the Key Enabler for
Lean Learning

                      During the past                 On this journey, one major piece of              F...
Lean Learning

      Align Lean Learning to                          Concurrent Multi-level                        Deve...
Lean Learning

      Apply a Plan-Do-Check-Act                         Partner with Lean                               ...
Ready for the Upturn

      Ready for
      the Upturn?
       Now’s the time to think Lean
       By Simon Castleman a...
Ready for the Upturn

      Recent statistics appear to                     when the upturn eventually happens the     ...
Ready for the Upturn

      This will enable you to identify the key       The feedback was revealing in               ...
Online Lean Learning

      Partnership offers online
      Lean learning programmes
      S A Partners has announced  ...
Treating the root cause

     Treating the
     root cause
      Lean problem solving
      techniques have a
Treating the root cause

       Allergy Therapeutics develops, manufactures and sells a range of pharmaceutical
Treating the root cause

             Allergy’s Kelly Goss and Dick Knapp talk colleagues through the progress made on ...
Treating the root cause

                                                      Source interviewed Head of
Zero Defects

      A proactive approach to
      managing risk
      A retailer is losing marke...
Zero Defects

      Once problems have been discovered,             the headings of Severity, Occurrence and           ...
Information & Events

      & Events
      Useful Websites                                 Networking...
The home of Lean Thinking 17
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Source - the home of Lean Thinking


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New issue of Source magazine. Topics include Lean learning programmes, zero defects and a case study on Lean problem solving in Allergy Therapeutics.

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Source - the home of Lean Thinking

  1. 1. 4th Edition Spring 2010 The home of Lean Thinking Lean Learning Is it the key enabler to sustainable continuous improvement? Case study: What effect did treating the root cause have on Allergy Therapeutic’s bottom line? Managing risk proactively: How to implement a zero defects culture Ready for the upturn? Now’s the time to think Lean
  2. 2. The home of Lean Thinking In this edition… 1 Welcome from Robin Jaques 2 Lean Learning The key enabler to sustainable continuous improvement? 6 Ready for the Upturn? Now is the time to think Lean 9 Online Lean Learning A new alliance is formed 10 Case Study How have Lean problem solving techniques helped Allergy Therapeutics? 14 Zero Defects A proactive approach to managing risk 16 Information and Events Find useful events, websites and essential reading here The home of Lean Thinking
  3. 3. The home of Lean Thinking Welcome to the home of Lean thinking. Welcome to Source, in which We are also delighted to announce we strive to bring you the latest a partnership with Leading Edge Lean Thinking and examples of Group, to promote and develop successful Lean implementation to online learning solutions. help you with your own business In the case study, Allergy improvement journey. Therapeutics tell us how they Experience has taught us that the tackled the root causes of variability development of Lean skills and in their production process, with knowledge inside an organisation dramatic results. The adjacent is key to sustaining a culture of article describes the theory behind improvement and translating their approach and looks at the Lean results from a short lived tools available to help us to make programme to ‘a way of life’. ‘zero defects’ a reality whatever the environment. In this edition, Gary Griffiths shares what he has learned from planning, preparing, delivering Robin Jaques Managing Partner and measuring internal Lean education programmes. Robin Jaques The home of Lean Thinking 1
  4. 4. Lean Learning Lean Learning – the Key Enabler for Sustainable Continuous Improvement By Gary Griffiths 2 The home of Lean Thinking
  5. 5. Lean Learning During the past On this journey, one major piece of For any corporate learning programme to 15 years I have learning for me has been how corporate succeed, I believe you must: education, done well, not only helps a had the privilege business to move forward, but can be • Align and integrate your Lean learning of working with a the critical factor in creating and sustaining programme with the business strategy (note: REALLY align it for the skills number of leading a business wide culture of continuous of today and changing capabilities of organisations to improvement. tomorrow) develop a business that has The lessons I have learned have not come • Develop a programme of Lean learning both the process capability and from one single organisation in a single that concurrently meets the needs behavioural culture needed to sector and geographical region but have of the organisational levels (senior achieve that common “holy been compiled from working on a variety management, middle management, of Lean learning programmes, and these grail” of sustainable continuous team leaders and workers) lessons are summarised in figure 1. improvement. Having worked • Create a “Learning System” of in such diverse sectors as The Lean Education Model continuous development for health, automotive, defence, individuals and the business (it’s not Organisations are in business to make service, food processing and a profit and grow by offering better just about course content it’s about retail across the five continents workplace application) services to their clients, customers of the world I have experienced and stakeholders. Any Lean learning • Ensure that any Lean training courses a range of approaches to Lean programme therefore needs to give its are the start of the learning not the implementation, some inevitably employees and partners the capability end (you will need to apply the Plan- to support the business vision and goals. Do-Check-Act rigorously to your Lean more successful than others. Unfortunately, learning programmes often learning system) fall short of this purpose. • Recognise that you can’t do it all by Hopefully this article will give you some yourself (the business competence “food for thought” on how to develop a of most organisations is NOT always more meaningful and sustainable approach learning and development so use to Lean learning. partners to help). These critical factors are not exhaustive and are dependent on your situational needs and level of capability – more emphasis may be needed in one or more areas. Having said that, for the Lean learning programme to begin to make a difference, all of these factors need to be carefully considered and applied. To help us think this through I will briefly discuss the essential elements of each factor. Remember what we want is a Lean learning programme that ensures engagement and provides ongoing evidence of continuously improving business results whilst providing space for individual and team development. Figure 1 – Lessons learned from implementing Lean learning programmes The home of Lean Thinking 3
  6. 6. Lean Learning Align Lean Learning to Concurrent Multi-level Develop a Lean Business Strategy Lean Learning Learning System • Deploy Lean learning as part of your • Provide appropriate Lean learning for • Look at learning as a process. The most business strategy. In many organisations all levels. Learning is not a luxury or a successful organisations approach Lean training is treated as an optional activity reward for high achieving employees. learning as an integrated system, not as driven by the “nice-to-have” skills of Learning is crucial to the development a secondary or functional activity. Be today but not by the “must-have” and success of an organisation and clear on what you want the programme changing competencies of tomorrow. should be approached as a whole-of- to achieve and design a full end-to-end During the strategy formation and organisation experience involving all or life cycle learning framework with deployment cycles we can use tools employees in some form of structured appropriate systems to monitor and to envision what tomorrow’s business learning and development. While the manage successful fulfilment of the will look like and which new skills type of content and the level at which defined value criteria. and competencies will be needed to a programme is delivered may vary, • Share good practice across the business. achieve it. learning and development should be Different areas of organisations usually continuous and involve all levels in an • Link Lean learning to individual have certain training systems that are organisation, providing a common thread Performance Development tailored to suit their specific learning and via the Lean learning content. Programmes - what gets measured development requirements. Sharing what gets done, especially in large • Link Lean learning to roles and is working well can also help reinforce organisations. Therefore, the learning responsibilities. Learning needs to be the organisation’s core values. and development of employees needs tailored to the current and emerging • Translate Lean learning to added value to align with the organisation’s strategic skills necessary for employees to be competence. Corporate education goals and cascade to the individual effective in their roles. The learning needs to involve more than just passive performance development plans of should combine common skills and attendance at a course. The programme each employee. competencies required for specific should encourage participants to break- functions and responsibilities in • Continually question how Lean learning out into groups to discuss issues, interact the organisation as well as other enables performance. It is important with their co-learners, and have the competencies, such as situational to conduct periodic reviews to ensure opportunity to apply or experiment with leadership, coaching, facilitation and employee learning is adaptable and concepts and tools. Employees with a team-work skills. relevant to the organisation’s goals as proven track record for the successful well as the employees’ requirements. • Create mixed level networks. A and continued application of learned skills In addition, programme content progressive learning environment and competence need to be recognised needs to be kept up-to-date and should remove all forms of rank and and rewarded accordingly. relevant to the evolving strategic superiority so that employees interact, goals of the organisation. share experiences, ideas and learn from each other, regardless of position or status. Use the “Action-Learning set” methodology which encourages groups to examine real and personal issues they are faced with so that the group can work out some options for improvement but more importantly agree on a collaborative set of improvement actions. 4 The home of Lean Thinking
  7. 7. Lean Learning Apply a Plan-Do-Check-Act Partner with Lean As I mentioned at the start Methodology Learning Expertise of this brief insight into • Plan every programme thoroughly. • Consider partnering with external Lean learning, I have been The success of a good Lean education education and training providers, e.g. privileged to work with many programme starts with good planning. universities. These providers can bring great companies over the The planning phase needs to consider objectivity to programme design and the realistic learning goals, the current development and can often introduce the years. Each one has set out skills of the participants and their learning latest thinking, concepts and methods, to develop its people and styles. The planning process also needs which might not be accessible to processes to help continuous to define the content and structure and internal resources. Online Lean learning performance improvement and any support materials and teaching aids packages are also worth considering as that will be required. It is vital during part of a structured skills development each one has developed an the planning phase to clarify the desired programme. They are available for all approach of their own. Having (and measurable) outcomes and how levels, externally accredited in many cases experienced these different participants will demonstrate their level of and, while individuals participate online at approaches, I truly believe that understanding and competence gained. their own pace, the organisation retains the critical factors above are overall visibility of the progress that’s • Create a listening process. While an being made. what make the difference in organisation will have learning goals, it is the most successful cases. Any also important to listen to the views of • Join external Lean learning networks. stakeholders. Consult with stakeholders Interacting with like-minded people organisation that incorporates to explore topics and issues they would stimulates and challenges traditional these critical factors in its like to be addressed. All too often course thinking. By joining an external learning learning programme will find evaluation forms are left in the back of network, organisations can expand the that they move closer towards the HR information cabinet and are not perspective their employees have to a the “holy grail” of sustainable used to take the programme onto the greater extent than they would when next level, so please make sure you their reference circle is internal only. continuous improvement continuously and rigorously apply to in order to provide better • Look for help to develop learning the principle of P-D-C-A. frameworks. There is significant value in services and profitable growth. • Check learning is making a difference. having an external person as an adviser The most effective means to check the or to oversee the development of the value of a Lean education programme is programme. A person at arm’s length to the difference it makes on-the-job. Some an organisation can assist with developing training has an immediate impact, but a learning framework that, ideally, often the real difference in an employee’s incorporates formal programme content skills and competence becomes apparent as well as opportunities for employees over time. Therefore learning and to experiment and develop their level of development should be monitored over understanding further. time, perhaps three to six months after the event, to observe and measure the level of difference in the skills and performance of each employee and to ensure the application of the new skills is sustained. The home of Lean Thinking 5
  8. 8. Ready for the Upturn Ready for the Upturn? Now’s the time to think Lean By Simon Castleman and Robin Jaques 6 The home of Lean Thinking
  9. 9. Ready for the Upturn Recent statistics appear to when the upturn eventually happens the the boundaries of your business, making indicate that Britain has taken company will not be able to respond your supply chain responsive to demand to the new opportunities that present pull from your customer also reduces the the first step on the long road themselves. demand for cash. out of recession, although there What typically happens in this situation is remains the risk that we may that the non-value added activity, instead drop into “the second dip in a of being removed from the business, is W-shaped recession”. In this passed on to the remaining employees of period of uncertainty many the firm, burdening the retained workers companies face a dilemma – and undermining their productivity. whether to keep cutting back The other aspect of the business that has on costs and prepare for the been impacted by the recession is stocks worst, or to increase spending of raw materials, work in progress and on materials or manpower to finished goods. take advantage of the increase In a Lean world excess stock in economic activity. allows process inefficiency and However let me add a word of caution at this point; one of the problems with Whichever scenario finally emerges the so hides waste in a business. So many Lean implementations is that they one thing that most people agree on is that whilst reducing stock is a laudable find someone with knowledge of the Lean managing cash flow is of critical importance, activity this is only the case so toolbox and then set about applying those particularly since the banking system still long as it does not prevent the tools even if they are using the wrong tool appears to be reluctant to lend sufficient sums of money to sound companies. business taking advantage of in the wrong area. opportunities that an increase in In addition, without taking full account The general consensus appears to be that economic activity brings. of the complete value chain it is possible the level of “de-stocking” has reached to make one area more efficient to the its minimum and indeed there is some If we assume there is a sudden upturn detriment of the value chain as a whole – evidence that companies are rebuilding in demand for our goods or services creating islands of excellence in a sea their stock levels. On the other hand the natural reaction is take on more staff of waste! it seems likely that the levels of or purchase more stock to meet this redundancies and layoffs will continue demand. Unfortunately recruiting staff with Any improvement of a value chain for some time to come. the right skills and increasing stock levels should be grounded in understanding to meet the new demand levels both what the customer really values (and that The standard approach to this kind of require additional cash and therein lies the does not mean sending out a series of economic situation is to cut costs across problem, particularly if the company is not questionnaires to key customers), you can the board and although this might be a cash rich and relies upon the bank. then start to map the value stream starting short term expedient it rarely considers with the customer. how waste can be removed from the firm. By applying Lean Thinking, waste can be rapidly identified and steps taken to ensure Indeed in some situations the cuts have that those activities which are of no value been so deep that there is a risk of lasting to the customer are reduced and ideally damage to the body corporate such that eliminated and, although it impacts outside The home of Lean Thinking 7
  10. 10. Ready for the Upturn This will enable you to identify the key The feedback was revealing in This meant that they could not only grow areas to apply the appropriate tools from terms of how Cogent operated their business profitably going forward, the Lean toolbox to maximise customer but also shorten the supply chain to their value and benefit to the business. in the current market and customers whilst reducing the threat also insightful in terms of what from competition in what is traditionally a For example, Cogent Power (featured they could do differently to be mature, highly competitive, price sensitive in the Shingo-Prize winning book Staying Lean: Thriving not just Surviving) carried successful in tomorrow’s market. market place. out 130 face-to-face interviews with 17 At the beginning of this recession the key key customers of its Canadian plant. The Common themes were: imperative was to reduce costs and to “out process set out to understand what the survive” your competitors, the situation customer valued at different touch points • they were doing a lot of things is now changing to taking advantage of within the business and specifically what right, just needed to do more of the opportunities out there by generating good looked or felt like against each of the them – and release time from customer value whilst at the same time identified values. activities that were not adding value minimising the demand for cash. from their customers’ perspective One approach to doing this is to apply • despite having supplied customers Lean Thinking to your business not by just for several years, they were applying the tools but by looking at what mistaken in thinking that they knew your customers really value and maximising the real influencers the efficiency in that value stream so you • many of their customers wanted can deliver what the customer demands as to have a more proactive and well as what they value on time, on quality, advanced partnership with them in full every time. • there were many ‘quick win’ Engaging your workforce in this pursuit by improvements that they could using Lean Thinking as a foundation for their act upon quickly. development will not only help you create value for your customers and margin for your business but will also leave you with a The feedback indicated that there was a flexible customer centric workforce. real market opportunity for the business to grow into new but aligned market areas In any event a flexible workforce and a clear where they had expert knowledge. understanding of customer value, combined with a positive cash position, are amongst Traditionally the business had supplied the key attributes which will define those quality component parts to other companies who do not just survive the manufacturers but Cogent Powers end recession but are in a position to thrive in users indicated that there was now a real the new order that emerges, whatever that opportunity for the business to add value to turns out to be. their existing product offering by moving up the “value ladder” and developing a higher quality engineered product and service at a competitive price. 8 The home of Lean Thinking
  11. 11. Online Lean Learning Partnership offers online Lean learning programmes S A Partners has announced Leading Edge produces flexible online and S A Partners chairman Professor Peter a partnership with Leading Edge instructor-led training modules that help Hines commented: “When done organisations to manage the development successfully, Lean learning programmes Group, a Cork-based company of Lean skills within their workforce at transfer into an organisation the knowledge specialising in online Lean every level from basic awareness through and skill that was initially provided by learning solutions. The to practical application (see figure 1). external consultants. They therefore play alliance gives S A Partners Programmes are accredited externally by a vital role in the long term sustainability the opportunity to extend institutions such as University College Cork of continuous improvement, enabling its offering and to grow its and the Irish and American Institutes of businesses to retain and develop that Industrial Engineers. Leading Edge Group learning inhouse.” Lean consultancy business in has offices in Cork and Toronto and has Ireland, while Leading Edge worked with clients including Pfizer, Dell Leading Edge chief executive Joe Aherne added: “Our strength is in providing will be able to reach new and PepsiCo. learning for the entire workforce, customers in the UK and work S A Partners challenges and coaches whatever degree of involvement they will with S A Partners to develop businesses across all sectors to improve have in implementing Lean Thinking. We new learning material. their performance by applying Lean know that it is the combination of Lean Principles. It places significant emphasis tools and their systematic implementation on transferring knowledge and skills into that yields the best results, and this can client companies, to help them to sustain only be achieved through commitment improvements in the long term. In 2009 across all levels of the organisation. The a case study of the company’s work with online option also gives individuals the Cogent Power, entitled ‘Staying Lean: flexibility to study at their own pace, with Thriving not just Surviving’ was awarded a access to an experienced mentor.” Shingo Prize for Research. BLACK BELT 6 month online (l/r) Chris Butterworth, Managing Director, programme for career-minded Lean S A Partners Ireland; Professor Peter Hines, practitioners, Chairman, S A Partners; Steve Hardgrave, including leadership and project management skills. Strategy Consultant, Leading Edge Group and Joe Aherne, CEO, Leading Edge Group. GREEN BELT 13 week online or instructor led programme to achieve proficiency in understanding and applying Lean tools. Includes mentoring support. YELLOW BELT 2 day classroom overview for those likely to be involved in Lean projects - including a demonstration of Lean tools. A foundation for further Lean skills development. WHITE BELT For more information visit A 1 day classroom programme to introduce the workforce to the Lean philosophy, www.sapartners.com drivers for change, potential benefits and the role they play in ensuring success Figure 1 The home of Lean Thinking 9
  12. 12. Treating the root cause Treating the root cause Lean problem solving techniques have a positive impact on the bottom line at Allergy Therapeutics 10 The home of Lean Thinking
  13. 13. Treating the root cause Allergy Therapeutics develops, manufactures and sells a range of pharmaceutical products for the treatment and prevention of allergy. Their flagship product is Pollinex® Quattro which is transforming immunotherapy by vaccinating against allergy with only four injections. Allergy Therapeutics vaccines are “The focus was on the speed at Individuals were given the authority to prescribed only by medical practitioners which incidents were resolved, stop the production line if a fault occurred and are administered either by injection or and to call for help from relevant qualified placement under the tongue. not wholly on the quality of personnel before production resumed. the resolution.” In addition to branded products, ‘specifics’ “We used to get managers are developed to address unique In addition to the financial implications of this waste, the unpredictability of supply together in a meeting room to combinations of allergies for individual patients. Hundreds of products can threatened the company’s ability to resolve problems, now it’s the therefore be supplied in thousands penetrate new markets. The need people that are directly involved of combinations. to remake product had a negative in the process that solve the impact on capacity, staff morale and problems – on the shop floor customer satisfaction. as they occur.” Treating the cause Secondly, the teams examined the potential The solution was to engage the risks facing the business, to enable them to most appropriate resources from manage risk proactively. within the Allergy business, and deploy Teams of people attended more than a combination of Lean tools and techniques, 40 workshops working on a PFMEA – a to mount a two-pronged attack on Process Failure Mode and Effect Analysis process improvement. – that examined the potential risks in “At first I was sceptical that Lean producing a core product. Each risk was The £45m business is headquartered in tools that had been deployed given a score based on severity of impact, likely occurrence and ease of detection. Worthing, UK, with extensive sales and in environments such as marketing operations in several European Using these scores, the team could prioritise engineering could be applied to risks and consider countermeasures to countries. Patient safety is the company’s pharmaceuticals. My confidence reduce the chance of variability occurring priority and vaccines must comply with the strict pharmaceutical regulations that apply in in the methodology grew and and/or increase the likelihood of detection. each country in which its products are sold. now I know that the Lean Allergy Therapeutics are also collaborating principles work, whatever more closely with suppliers to help eradicate Drivers for change your business.” variability that may be caused by raw At the start of the ‘Odyssey’ journey, due materials, thereby extending Lean Thinking to the nature of biological pharmaceuticals, Firstly cross functional teams worked with up stream in the supply chain. variabilities resulted in defective product external Lean consultants to identify and having to be scrapped and remade. Incidents resolve the root causes of variability of variability in the production process were contributing to a more stable production a resource burden that was not sustainable process. This activity would also reduce and warranted action. waste, free up capacity and enhance durable sustainability. The home of Lean Thinking 11
  14. 14. Treating the root cause Allergy’s Kelly Goss and Dick Knapp talk colleagues through the progress made on their parts of the ’Odyssey’ project. Tracking progress The benefits achieved so far: Allergy appointed a full time manager to the Odyssey project and established a project room as a base. Senior managers were • Wasted product reduced in the first year of the programme given roles as project sponsors to reinforce • Financial savings above target the impact of the project in supporting the company’s overall strategy. • Personal skills development, e.g. 25% of the workforce trained in Lean problem solving techniques Weekly PDCA (plan, do, check, act) meetings are held, using a tracking • Involvement of staff at all levels and the building of teams working document to report on the progress made across functional boundaries of numerous smaller concurrent projects. • Improved staff morale After the first year a communication event was held, at which each of the teams could • Increased communication with staff regarding the programme’s explain to their colleagues what they had achievements – a ‘voice’ for all those that are contributing been doing and what had been achieved • Improved customer satisfaction so far. • A culture of interrogating and targeting root causes Allergy Therapeutics has achieved significant benefits in the first year of the Odyssey • A methodology for proactively managing risk through the PFMEA programme, some which have a monetary • Greater collaboration with suppliers value, and others that do not, but which are no less critical to the success of the business. • A more structured process for classifying and resolving incidents. 12 The home of Lean Thinking
  15. 15. Treating the root cause Source interviewed Head of Supply Operations, Ray Keeling, for his thoughts on the Odyssey project’s achievements. You are Head of Supply And that led to the start Were there any Operations, what does of the Odyssey project? turning points for you? that involve? I conceived a three year project to address There are two that stand out for me. Supply operations basically encompasses the challenges. In the business case that I We had an early breakthrough in the all the functions needed to bring a product presented to the board, I explained that production of the Tree product. We took to market, including: health and safety; we had to make an investment in skills great satisfaction from solving a validation of processes, facilities and development and diagnostic work and very complex problem with a new equipment; Information Technology; probably wouldn’t see tangible results in storage solution. planning; purchasing; manufacturing; the first six months, but the first year’s The second turning point was what we warehousing; packaging, and; distribution. results have exceeded our expectations. called our “Town Hall” event, held to What did you find when you Why did you seek communicate the progress of Odyssey took up the role in 2005? external help? to all our staff and our new shareholders. The feedback from the event was There was inherent variability in processes, The consultants challenged and overwhelmingly positive and I felt so resulting in waste. externalised us and this was what we proud of everyone’s contribution. needed. They brought a comprehensive What was your vision ‘Zero Defects’ approach that was closely Do you have any regrets? for change? aligned to our objectives and included skills Only that I wish I’d started Odyssey two I felt strongly that we should focus on transfer to ensure that in time we would years earlier! Times have changed since our core brand and put in place effective be able to continue the improvement the project began, but with what we’ve structured problem solving techniques on our own. achieved so far, the business is in a much based on fact and scientific based evidence. What do you think has stronger position to achieve a paradigm I wanted us to move to a culture of been the secret of the shift in our performance. transformational change to enhance success here? sustainable business performance. We’ve embedded and integrated the skills and problem solving processes into the compliance systems that govern our day to day work (so they aren’t perceived as an additional burden). We’ve also invested in skills development to ensure we can continue the improvement and sustain the benefits. The home of Lean Thinking 13
  16. 16. Zero Defects Zero Defects A proactive approach to managing risk A retailer is losing market A pharmaceutical company is unable to meet regulatory standards due to excessive Why would an organisation want to adopt these techniques? Often it is only after a share because the internal non-conformances. A braking problem has occurred that action is taken distribution warehouse systems manufacturer is concerned about its to compensate – the business reacts. For a product failing in the field. serious issue, such as a car parts recall, this supply chain is not is too late – it costs a great deal of money Each of these businesses has dramatically optimising performance. improved its business performance by to correct the fault and the manufacturer’s A flat screen TV implementing a Zero Defects approach. reputation is severely damaged in the market place. manufacturer is losing So what is it? It encompasses a number of tools and techniques which, if used together, Alternatively problems may be captured capacity and output due provide a powerful mechanism for tackling internally through an inspection process – in to quality issues on its deep seated business issues. this case market perception is not damaged but nevertheless there are significant costs of assembly line. inspection, scrap, rework and lost capacity. 14 The home of Lean Thinking
  17. 17. Zero Defects Once problems have been discovered, the headings of Severity, Occurrence and The PFMEA is entirely proactive. It forecasts the organisation needs to investigate Detection. The three ratings multiplied failures and stimulates preventative action the root causes and introduce effective together deliver the “Risk Priority Number.” before these failures occur. In the real countermeasures to ensure that it will The PFMEA is sorted by Risk Priority world, events may occur that are entirely never happen again. Anything less is an Number so that the highest numbers are unforeseen, or they are so far down the unsustainable workaround that has the at the top, thereby prioritising the projects PFMEA list that they are not scheduled to potential to fail once again. required to reduce risk. Preparation of this be looked at for some time. The urgent document requires a significant investment in need to react to these might outweigh the Implementing a Zero Defect time, but it becomes a live management tool proactive approach from the PFMEA. Whilst philosophy as part of a with a potential lifespan of many years. immediate action will have to be taken to continuous improvement culture, Having invested in diagnosing the process, protect the customer as the result of this providing a mechanism for what are the next steps? The only choices new occurrence, the PFMEA will need to be identifying issues and fixing root updated – certainly in terms of occurrence, are to reduce the level of occurrence or as it’s actually happened! This re-sorting may causes, can have a major impact increase the possibility of detection. Severity bring this new issue to the top of the list, on growth and profitability. will remain the same whether it happens requiring a team to investigate for root frequently or rarely. The tools and techniques that sit within the cause immediately. Zero Defects package include a daunting Multi-disciplinary teams are then In parallel with the PFMEA, it is frequently list of acronyms and Japanese buzzwords - set to work on the highest risks beneficial to use the techniques of Jidoka PFMEA, Jidoka, Genchi Genbutsu, 8D, using root cause problem solving (line stop) and Genchi Genbutsu (go, look, 5Y, process flow and variables, multi- disciplinary team work, poke yoke, 5W1H skills. Armed with a thorough see). If an issue has occurred, it is helpful understanding of a particular for staff to have the authority to stop the action planning, PDCA, 5 step checks, process and call in qualified people to the CI process. risk, they can design a counter investigate what has happened. By stopping It may not be necessary to deploy all of measure, the “poke yoke,” that the line, memories will be fresh regarding these, but it will certainly be necessary to will eliminate or dramatically what happened and the evidence will still be bring a number of them into play. The skill reduce the risk. there. If the issue is deep rooted, the learning lies in understanding fully the issues facing from this can be used to feed back into the The next stage is to implement the the business at the outset, and designing problem solving teams, which should speed counter measure. The team will need to the correct response. This response must up the whole process. demonstrate skills in project management include adequate resourcing of the project in terms of finance, time, commitment, and so and 5W1H (why, what, who, when, The Zero Defects approach is where, and how the new way of doing not a ‘one size fits all’ solution. on. Let’s look at the tools in more detail. things is going to be brought on stream). This is complemented by the discipline of The approach should be tailored PFMEA is “Process Failure Mode and Effect Analysis.” There is also a PDCA (plan, do, check, act) to ensure that to suit the business according Design FMEA equivalent. This approach is the new process is working, that we have to the issues that it is facing. proactive and examines in detail all aspects not incurred unintended consequences and Experience shows, however, of the process that expose a business that there is no way of slipping back to the that the application of the to risk. Many of the risks may not have old way of doing things. A 5 step process is correct tools and techniques, manifested themselves yet, but they could, designed as a final formalised sign off that the implementation was successful. Overall there fully supported by management and appropriate action should be taken to prevent the occurrence. are eight stages involved, and the process is commitment, will virtually commonly referred to as 8D. guarantee success. The PFMEA is essentially a detailed process flow chart, which an experienced team then On completion, the team can be disbanded, Each of the ZD mechanisms has been starts to challenge. The team brainstorms but not before the PFMEA has been updated proven and a continuous improvement all potential failure modes for each step with the new occurrence and detection process built upon root cause problem in the process and their effect on the ratings for that particular risk, which should solving should be an inherent part of all customer. Each of these is then rated under drop down the list of highest priority. management teams’ forward thinking. The home of Lean Thinking 15
  18. 18. Information & Events Information & Events Useful Websites Networking Events Lean Related Websites Lean Leadership: www.sapartners.com www.linkedin.com An interactive training event that looks at www.superfactory.com the skills needed to lead a sustainable Linkedin discussion groups: Lean deployment. www.improvementandinnovation.com Lean & Green 26 & 27 May 2010, Cork www.leanenterprise.org.uk Lean Enterprise Food & Drink 2 & 3 September 2010, Stockholm Lean Enterprise Retail Staying Lean: Thriving not just Surviving Lean Enterprise Asia Pacific A one day workshop that investigates Lean Enterprise Ireland what is needed to sustain Lean business Lean Enterprise Nordic improvement, featuring a Shingo Prize- winning case study. Lean Enterprise United Kingdom 28 May 2010, Ireland Lean Enterprise Benelux 3 June 2010, Toronto Lean Enterprise Central and Eastern Europe 16 June 2010, Netherlands Lean Enterprise Mediterranean Lean Enterprise Canada Further details on: www.sapartners.com Recommended Reading Lean Management Journal Staying Lean: Thriving not just Surviving by SayOne Media and the Lean Enterprise by Hines, Found, Griffiths and Harrison Research Centre The book Staying Lean: Thriving not The Lean Management Journal (LMJ) just Surviving tells the story of how a aims to bring to the forefront the diversity multinational organization implemented and of thinking around Lean concepts and to sustained Lean to turn around its financial showcase Lean excellence from around the performance. It is designed to be used as globe. It also aims to provide a platform for a practical workbook to guide others along Lean debate and continuous improvement their own journey to embed Lean in the through shared experience, interviews and organization and to sustain performance case studies. improvement over the long term. For more information and a free pilot copy Publisher: Lean Enterprise Research Centre visit www.leanmj.co.uk (1 Feb 2008) ISBN: 0953798291 16 The home of Lean Thinking
  19. 19. The home of Lean Thinking 17
  20. 20. Contact details www.sapartners.com