The document outlines various production management strategies, including batch size, inventory management, and process optimization, focusing on methodologies like FIFO, visual management, and continuous improvement. It emphasizes the importance of aligning projects with business assessments and developing corrective action plans based on performance metrics. Additionally, it discusses change management principles aimed at enhancing productivity, reducing errors, and achieving better inventory and lead time management.

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Parts
•Batch Size
•Inventory Management
•Product Flow
•Work Flow Monitoring
•TAKT
•Pull System
Process
•5S
•Visual Management
•TPM
•Standard Operations
•Right First Time
•Line Stop Call
•Problem Solving
•Process Capability
Plant
•Man/Machine Separation
•Cell/Line Layout
•Process Flow
•Material Handling
•Material Storage
•Product Family
People
•Management Style
•Change Readiness
•Customer Focus
•Continuous Improvement
•Engagement
•Team Roles
•Skill Building
Performance
•Policy Deployment
•KPI Tracking
•Standardisation
•Behaviours
•Real Time Measure
Batch Size Score Inventory Management Score Product Flow Score Work Flow Monitoring Score
5
Batch size match minimum customer order
size. Stock management part of integrated
optimisation of stock along the supply
chain.
FIFO occurs within lots and no material is
found outside designated areas. Inventory
is stored in non-dedicated, flexible storage
locations.
Co-ordinated 1x1 production occurs for all
operations, as well as co-ordinated
shutdowns for planned downtime.
Traditional department processes (i.e.
fettling) have been “right-sized” throughout
the process.
Visual indication showing clearly a products
position against plan. In case of delay,
recovery action visible and managed by the
cell team.
4
Batch size and reorder frequency
determined by a formal capacity analysis -
based on setup time. Regular review of
parameters to set stock levels to achieve
required delivery performance.
FIFO system is “fail-safe” and inventory has
clear locations marked close to the point of
use. Inventory min/max levels are clearly
displayed.
Co-ordinated 1x1 production occurs for all
operations, as well as co-ordinated
shutdowns for planned downtime. Focus on
continuously improving set-up/changeover
efficiency.
Visual indication showing clearly a products
position against plan. In case of delay,
recovery action visible and managed by
supervision.
3
Batch size and reorder frequency
determined by a formal capacity analysis -
based on setup time. Stock levels
scientifically, but infrequently reviewed. No
corrective action after failure.
Formal system to support FIFO is in place,
but lapses occur due to lack of discipline
and/or weak design. Specific areas for
inventory are clearly labelled.
The majority (>75%) of the processes follow
1x1 production techniques and only
standard WIP is present between
processes. Mixed-model production is
utilised to reduce inventory levels &
changeovers are continuously improved.
Visual indication showing clearly a products
position against plan. No visible system to
manage and recover delays.
2
Batch size, reorder frequency and lead time
based on informal capacity analysis eg
shopfloor experience. High stock levels set
for total safety. Just in case mentality, high
obselescence.
x
Only isolated areas practice FIFO.
Designated areas for inventory may exist,
but it is not clear because there are no
labels and there is little discipline in place.
x
Production processes are located in the
same general area & some follow 1X1.
Large amounts of WIP still separate
operations & “batch” production still occurs.
Adhoc FIFO system applied, reprioritisation
of work performed regularly. x
1
Maximum batch sizes / reorder frequency
set to optimise utilisation of equipment
(based on economic batch quantity) Adhoc
stock management, emergency orders, late
deliveries.
FIFO is not practised and it is difficult to
identify locations and levels of inventory
(raw, WIP, F/G). Inventory is located away
from the point of need.
Production processes are isolated “islands”
with large amounts of WIP between
operations (i.e., departmentalised).
Products move through the production line
in large batches resulting in long throughput
times.
x No visible position of products position
against plan, products expidited
© The Manufacturing Institute 2008. All rights reserved.

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•Demand / Capacity
Management
•Scheduling
•Inventory
Management
•Logistics
•Process Foundations
•Process Stability

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 Take the Projects/Opportunities from the Business
Assessment
 Take the Projects/Kaizen Events from the VSM and
OSD
 Join them together through Strategy Management
and gain alignment within the Business.

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• A Bowling Chart is required for every ‘X’ Matrix
• The Bowling Chart tracks the Improvement
Targets
Quantifiable metrics –
tabular record of progress
Targets To Improve (TTI’s)
From – to driver measures• Bowling Charts are used to trend
variable metrics
• Every metric needs a plan and a goal.
• Track results weekly, monthly or
quarterly as appropriate
• Deviations from the plan should drive
a corrective countermeasure back to
the ‘X’ Matrix/Project tracker.
Strategy Management Example

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• Process
Capability
• Standard Work
• Key
Performance
Indicator/Driver
Measures
• Visual
Management
• 5S
• TPM (AM)
• Real Time
Resolution
• Single Piece /
Batch Flow
• Direct Line Feed
Delivery
• Line Balancing
• Skills Alignment
• Value stream
Mapping
• SIPS
• Linkage and
Flow
• Shift Pattern
Convergence
• SIPS
• Smoothed
Demand
Amplification
• Balancing Skills
Requirements
• SIPS
• Single Point
Scheduling
• Pulling Material
• SIPS
Stability
Synchronous
Production
Level
Production
Pull System
Continuous
Flow
C.I.
C.I. C.I.
C.I.
95%

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1. Identify a problem (your opportunity to get better)
2. Conduct research to understand the current situation
3. Develop a target or goals
4. Conduct root cause analysis
5. Devise countermeasures / recommendations to address root
causes
6. Create an implementation plan
7. Develop a follow-up plan
The results of steps 1-7 can be recorded & communicated on
an A3
9

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◦ Drives ownership, responsibility and accountability through A3
(one page plan).
◦ Covers Safety, Quality, Cost, Delivery, Productivity, Sales, People.
◦ Can be applied to all levels and functions of the business, Sales
and Marketing to Operations.
◦ Complete involvement of resources.
◦ The ability to see the abnormal from normal conditions.
◦ Embeds Coaching mentality. (Question & Challenge with dignity &
respect)

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 Help change leaders establish a clear direction and
cause for the change.
◦ Strategic Intent – Develop a clear strategy
◦ Effective group of leaders (assessment & training)
◦ Generate support from stakeholders
◦ Minimize resistance (understand threats & opportunities)
◦ Makes a Case for Change – Significant, compelling; threat or
opportunity
◦ Compelling Vision – Clear, realistic and inspiring
 Tools
◦ Stakeholder Engagement Strategy
◦ Elevator Speech
◦ Threats & Opportunities
◦ Performance Gap Analysis
CHANGE TRANSITION CURVE

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 Create mindset and behavior change through
effective communication, leadership and involvement.
◦ Create Literacy
◦ Help people understand the what, why, how and WIIFM
◦ Build capability through training
◦ Influence Mindsets
◦ Gain acceptance and involvement
 Tools
◦ Communication Strategy
◦ Control the Controllable(s)
CHANGE TRANSITION CURVE

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 Productivity increases by up to 50%
 Error Reduction 30%
 Space Reduction 20%
 Inventory Reduction >50%
 Leadtime reduction >50%
Execute & Drive the plan will deliver

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For Further Information please contact
TCMUK Limited
Call 0845 643 4094
www.totalchangemanagment.co.uk
enquiry@totalchangemanagement.co.uk