This document outlines an agenda for a presentation on applying Lean principles and assessing manufacturing plants. The presentation covers Lean implementation, Lean principles like focusing on customer value, and conducting a Rapid Plant Assessment (RPA) using a 20 question questionnaire and rating sheet to evaluate a plant's "leanness". The RPA involves observing all aspects of plant operations, including safety, organization, visual management systems, and empowered employee teams.

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Professional and Executive Programmes
Smart Manufacturing
Applying Lean
and
Assessing Plants
Julian Amey
24 February 2016

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Agenda
1. Lean implementation
2. Some Lean Principles
3. Plant Assessment

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• Who has implemented LEAN?
• What problems have occurred with Implementation?
• Is your LEAN implementation sustainable?
Lean implementation

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So what is LEAN?
Maybe there’s a question we should
have asked first?

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What Lean is not ….
Possible focus areas
• Primarily about Waste
• About 5S
• About SMED (Single Minute
Exchange of Die)
• About (improvement) Tools
Response
• Focus on the Customer
– Prevent or reduce rather than
eliminate
• Ways of improving
consistency or quality
• A way of improving
response time and service
• The overall system delivers
value to the Customer

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Lean thinking
1. The definition of Value from the Customer perspective.
2. Integrated management of the entire Value Stream.
3. Design of production systems that ensure materials Flow.
4. Pull production systems that support customer demand.
5. Continuous improvement of all business activities to
achieve Perfection.
Source: Derived from ‘Lean thinking’ by Womack & Jones

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Some Lean characteristics
• Customer (paying)
• Time
• Simplicity
• Waste
• Process
• Visibility
• Regularity
• Flow
• Pull
• Postponement
• Gemba
• Participation
• Partnership
• Prevention
• Improvement
• Value networks
• Variation reduction
• Thinking small
• Trust
• Knowledge

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Some Basics
• Humility
• Willingness to learn
• Listening
• Respect
• Contribution
People and Sustainability
What are the implications?

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So what is LEAN?
Maybe there’s a question we should
have asked first?

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What Lean is not ….
Possible focus areas
• Primarily about Waste
• About 5S
• About SMED (Single Minute
Exchange of Die)
• About (improvement) Tools
Response
• Focus on the Customer
– Prevent or reduce rather than
eliminate
• Ways of improving
consistency or quality
• A way of improving
response time and service
• The overall system delivers
value to the Customer

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STRETCH
SUPPORT
DISCIPLINE
TRUST
CommitmentCommitment
InitiativeInitiative
CollaborationCollaboration
DeliveryDelivery ConfidenceConfidence
LearningLearning
From Organizational Context to
Individual Behaviours
Source: Sumantra Goshel, AZ Conference Cannes (2001)

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• The Visible and the Invisible
• How we behave
• The systems and processes
• The formal Organisation
– Flatter – reduced levels
– More consistent benefits
• The informal networks
What are the signs of a Lean operation

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3. Assessing a Factory

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Rapid Plant Assessment (RPA)
• RPA Questionnaire
– 20 questions
– Determines if Plant uses Best Practices
• RPA Rating Sheet
– Assesses the ‘leanness’ of the Plant
N.B.
• Observe all aspects of operation
• Talk to workforce (if possible)
• Try to understand how work flows through the plant
• No notes during tour
Source: “Read a Plant – Fast”, HBR May 2002
3. Assessing a Factory

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RPA Questionnaire (1)
1. Are Visitors welcomed and given information about plant layout,
workforce, customers, and products
2. Are ratings for Customer Satisfaction and Product Quality displayed?
3. Is the facility safe, clean, orderly and well lit? Is the air good quality,
and are noise levels low?
4. Does a visual Labelling System identify and locate Inventory, Tools,
Processes, and Flow?
5. Does everything have its own place, and is everything stored in its
place?
6. Are up-to-date Operational Goals and KPIs for those goals prominently
displayed?
7. Are production materials brought and stored at line side rather than in
separate inventory storage areas?
8. Are Work Instructions and Product Quality Specifications visible at all
work areas?
Yes No
o o
o o
o o
o o
o o
o o
o o
o o
Source: “Read a Plant – Fast”, HBR May 2002
3. Assessing a Factory

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RPA Questionnaire (2)
9. Are updated Charts on Productivity, Quality, Safety, and problem
solving visible to all teams?
10. Can the current state of the operation be viewed from a central control
room, on a status board, or on a computer display?
11. Are production lines scheduled off a single pacing process, with
appropriate Inventory levels at each stage?
12. Is Material moved only once and as short a distance as possible? Is
Material moved efficiently in appropriate containers?
13. Is the Plant laid out in continuous Product Line flows rather than in
“shops”?
14. Are work Teams trained, empowered, and involved in problem solving
and ongoing improvements?
15. Do Employees appear committed to continuous improvement
16. Is a timetable posted for equipment Preventative Maintenance and
ongoing improvement of tools and processes?
Yes No
o o
o o
o o
o o
o o
o o
o o
o o
Source: “Read a Plant – Fast”, HBR May 2002
3. Assessing a Factory

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RPA Questionnaire (3)
17. Is there an effective Project Management process with cost and timing
goals: for new product start-ups, for capital projects?
18. Is a Supplier Certification process – with measures for Quality,
Delivery, and Cost performance – displayed?
19. Have key product characteristics been identified, and fail-safe methods
used to forestall propagation of defects?
20. Would you buy the products this operation produces?
Yes No
o o
o o
o o
o o
Source: “Read a Plant – Fast”, HBR May 2002
3. Assessing a Factory

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• Level of Automation
• Innovation
• Use of Statistical Process Control
• The applicability to a Jobbing Shop environment rather than
mass production?
• Excess costs
• Succession planning
• Use of daily meetings : PDR or PDCA
• Vision of the Business : its mission and purpose
• Freeze framing
Feedback on RPA: Possible missing
areas