Standard Business Roadmap

Implementation Manual

                                                                                                                                                                 

                                                                                                                                                                                                                                                                     
  • STRATEGY

  

Create a factory vision and design future Operating Principles (See Future State Training Pack & Operating Principles facilitated workshop Trg Pack)

 

A clear factory vision acts as a roadmap for the lean manufacturing roll-out.  Recall that this methodology effectively integrates the previously independent quality, operating, and people systems.  The senior management must prescribe this future state of the lean manufacturing methodology.  The future quality and operating systems can be presented in a material and information flow diagram.  The future people systems must be specified through a cross-functional organisation structure.  Each function must provide adequate people, materials, methods and environment to support these goals.

 

Design the future state

 

The project team can then design the future state for the project area.  They should first create a future state material and information flow diagram.  The team can then break the future state into sizeable portions for implementation.  They must also specify improvement measures and targets for the project, based on data collected during the current state assessment.

 

 

Set realistic roll-out objectives

 

When the factory vision is defined, to is necessary to identify specific objectives in order to attain that vision.  A roll-out objective can be defined as a manageable portion of the overall factory vision.  For example, an objective may be to increase productivity by 10% by the end of the year.

 

It is vital that each objective is realistic to ensure a sustainable lean transformation.  A company cannot expect the change agents to run multiple projects with multiple trainees simultaneously in order to grow the organisational knowledge in the shortest time.  The expectation cannot be satisfied because the change agents have only gained a reasonable understanding of the approach while developing the model value stream.  They do not yet have the experience of implementing change on their own.  Overburden on the change agents can result in projects failing to meet their specified objectives.  The failed initiatives can then permeate a general attitude from company employees:  “Lean manufacturing –we tried that and it didn’t work!”

 

The organisation must recognise that it is investing for the long term when pursuing these objectives.  Persevering with a structured and well-planned approach in satisfying the objectives can reap huge business benefits.  But beware, most organisations that embark on lean transformation are greedy for results, which ultimately will result in failure.  The greediness comes from an organisation’s belief that it can become lean to a higher degree, faster and with less resource than anyone else.  There are no short cuts to the lean transformation.  World class lean manufacturing organisations have taken many years to establish their position today.  It takes time to catch up – so, please be patient.

 

The following analogy shows the importance of patience and developing a proper infrastructure to support the change.  Two gardeners each plant a seed in some fertile soil. After six months, each seed has sprouted above the ground to a length of only four inches.  One of the gardeners is concerned because the plant is not growing fast enough, so he removes the sprout along with its root and plants a new seed.  The other gardener is more patient and understands that the sprout is still developing its foundations and has great potential, even though the growth hasn’t been that great.  Another six months passes and the patient gardener now has a plant that the growth hasn’t been that great.  Another six months passes and the patient gardener now has a plant that sprouted to a height of two feet!  This flower was able to grow so rapidly because it was nurtured early on an allowed to develop at its own pace.  One the other hand, the new seed for the impatient gardener has only grown four inches again.

 

 

Effective Policy Deployment

 

The effectiveness of the lean transformation for the entire organisation should be measured continuously.  To enable this, the company’s measures must first be compatible with lean thinking.  Each level of management should have its own performance goals that directly relate to the organisation’s yearly objectives.  Effective policy deployment allows people at all levels to genuinely understand their role in achieving the organisation’s objectives.

 

An example of policy deployment can be seen in figure 13.  At the highest level, company goals are set on an annual basis.  From these goals, measurable should then be set for a factory.  These factory goals can be used to set goals for individual departments within the factory.

 

  

Text Box: ·        Profit
·        Quality
·        Market share
Text Box: ·        Profitability
·        Quality cost
·        Inventory
·        On-time, in full
(OTIF)
·         
Text Box: Company Goals
Text Box: Factory Goals

 

 

 

 

 

 

 

 

 

Text Box: ·        Rework goals
·        Productivity
·        Overall equipment effectiveness (OEE)
·        Lead time

 

Text Box: Department Goals

 

  

 

   

Figure 13 – Example of policy deployment

 

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