Lean Tools for Manufacturing Management

Lean production has changed the world and lean tools can be applied effectively in many workplaces. Six Sigma analysis, via the classic DMAIC approach (Define, Measure, Analyse, Improve, Control) often makes effective use of lean ideas to maximise project results. This hub explains some of the most powerful lean tools that can be used to improve any business. These tools are not just applicable to industrial environments. They can be used in call centers, professional offices and retail environments to deliver massive and sustained business change. Every office can aspire to the discipline and effectiveness of a modern lean factory.

Six Sigma Yellow Belts and Green Belts should be adept in all of these techniques and able to apply them in their workplaces as part of normal business. There is nothing magical about any of these lean tools; none are "rocket science". Rather, they tend towards simplicity, for as medieval philosopher William of Ockham realises, the simplest and most elegant solution is always the best. Simplicity can provide both beauty and power.

One of the most effective and perennially popular lean tools in commercial use is "Pareto Analysis" that uses the celebrated 80/20 principle.

The nineteenth century Italian economist Vilfredo Pareto made the startling discovery that 80% of land in England was owned by just 20% of the population. Even more remarkably,this extraordinary skewness seemed constant across different countries and historical epochs. The 80/20 relationship was replicated in all kinds of economic, commercial and social processes. In many cases just the "vital few" 20% of inputs are responsible for delivering 80% of outputs.

The influential American quality expert Joseph Juran developed the concept of "Pareto analysis" in post-war Europe. Business processes could be analysed using a cumulative percentage bar chart to identify the key drivers of any business process. Many businesses make the astonishing discovery that a tiny minority of products or customers may account for the lion's share of their profits. The 80/20 analysis can also be used to identify errors that drive a Y=f(x) relationships. Which are the key errors that account for the majority of the process variation or non-conformance in a commercial process?

Some experts such as Richard Koch have applied 80/20 analysis more widely. They argue that 80% of the productive value in any enterprise is delivered by a tiny minority of the workforce. In more fluid markets, such as competitive sports, this discrepancy is rewarded by the market in the form of a steep pyramid of rewards, with lucrative pay checks for the elite and minimum age for the mass. In a large multi-divisional corporation, the value provided by each individual may be much harder to calculate. Nonetheless it is important for any business to accurately assess and effectively deploy the human resources at its disposal and 80/20 analysis can play a key role in identifying the real "rain makers" in any office.

The 5S system can be applied not just in Japanese factories but in the typically cluttered Western workplace. There is great fluidity and benefit from precision and order in any workspace and the tenets of 5S offer a powerful framework for efficient work flow management.

The first phase of "5S lean" is Sorting, which involves separating the wheat from the chaff and eliminating all unnecessary items. This is followed by Simplifying, where all items should be placed in a discrete home that maximises work flow. This phase is often summarised by the mantra "A place for everything and everything in its place". Lean thinking focuses on the totality of the process flow and the elimination of bottlenecks, and optimising the physical placement of resources helps achieve this.

Next, the work area should be kept clean through Sweeping. Perhaps the best example in a modern office environment is a "clean desk policy" that must be applied at the end of the working day. Each workplace should be given standard written operating procedures and finally the gain must be sustained. A short burst of enthusiasm for 5S lean thinking during an annual tidying exercise is of no use if the discipline is not consistently maintained on a daily basis. Any Six Sigma yellow belt program needs perseverance and determination to succeed.

This is where lean tools and ideas have to make the conceptual leap from practical methods that people use, to being part of a deep underlying culture of quality. This can be assisted by integrating a "visual factory" into the workplace, so that Yamazumi Boards and Kanban signals are a permanent and inescapable visual reminder of quality. Yet cultural change, as Deming and so many other quality experts realised, is of course the hardest form of change to realise.

Many other lean tools can be easily applied in any workplace, from process analysis and value chain mapping to the use of Ishikawa or "fishbone" diagrams for root cause analysis. Most businesses would benefit from a Failure Modes and Effect Analysis, or FMEA. This should not be the province of aerospace engineers! Equally the "theory of constraints" (Goldratt) should have a much wider application than the factory floor. Effective time management is of course essential to make all of these ideas work. Some of these lean tools will be explained more fully in future hubs.

All trademarks are acknowledged.

The information contained in this website is for entertainment purposes only. While we endeavour to keep the information correct at the time of writing, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.

In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.

(c) This hubpage and its content is copyright of Daniel Belize © 2011 Daniel Belize All rights reserved.