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lean manufacturing

Four Ways Fabricators Can Encourage Lean Success

August 10, 2017 / , , , , , , , , ,

Continuous improvement and lean manufacturing are certainly not new concepts to today’s fabricators. The numerous benefits of “getting lean” have been widely accepted, which means that most shops have already undergone some type of improvement initiative. In many cases, understanding the benefits of lean manufacturing is not the challenge. The real challenge is making the initiative stick long enough to produce results.

Unfortunately, that is often not the case. Using a hypothetical example, an article from The Fabricator explains that it is not uncommon for a fabrication company to go through four or five different improvement initiatives, none of which end up successful. The problem, the article states, is that engineers and managers may make changes to the way employees do their work, but they really don’t spend enough time helping operators and other employees understand why or how to do it. Even if everyone is often willing to take on the lean transformation, managers need to teach everyone the “what, why, and how” behind the lean principles.

In addition, there are often employees that are hesitant to embrace improvement initiatives like lean manufacturing. Some may even actively fight against it, even while performing their assigned lean tasks.

The goal for any manager should be to not only get workers to adopt lean principles, but to fully embrace them. Getting everyone—from the top down—is the only way a shop will start seeing results. As explained in the eBook, Five Performance-Boost Best Practices for Your Industrial Metal-Cutting Organizations, for lean to be successful, “it must permeate the business silos and receive universal backing amongst senior management and employees.”

How can managers accomplish this? A recent article from IndustryWeek offers four ways fabricators can get even the toughest employees on board with lean initiatives:

  1. Don’t Gloss Over the Fact that Challenging Times Lie Ahead. Instead of minimizing potentially negative consequences of the looming change, state flat out that some individuals will face more adversity than others. Much of this has to start from the top. The unknown intimidates, frustrates, and creates emotional insecurity. If leadership communicates and exhibits its vision, then change becomes the catalyst for improvement.
  2. Evaluate Current Staffing. Lean management is not synonymous with layoffs. However, some team members are not open to working in a lean culture. They may not agree with lean philosophies, nor do they want to better understand these principles. If you retain these individuals as company culture evolves around them, you are not benefiting them by allowing them to continue working for a lean company. Consider respectfully transitioning recalcitrant team members out of their positions.
  3. Pre-plan Team Communications. Use rich communication mediums to announce change. Face-to-face communication cannot be overvalued as a means to convey positivity, commitment, and optimism. An “all hands” meeting is an appropriate venue for the initial announcement. Do not make a habit of distracting teams from their primary responsibilities with frequent updates.
  4. Highlight Empowerment Versus the Increase in Responsibilities. Team members accustomed to traditional workplace cultures will not readily evaluate their own actions and suggest process improvements. This type of self-evaluation may be completely foreign to them. Initially, many team members will find the concept of increased responsibility daunting rather than empowering. To teach lean thinking, strive to make lean ambassadors out of the organization’s influence drivers. Focus on those who can deliver change and who will become not only the informal leader on the floor, but also the industrial athlete of the cell.

While changing processes is certainly a huge part of any lean manufacturing journey, getting people to accept, embrace, and understand the changes is the first and most important step a shop can take. As many fabricators have discovered, missing this critical step could mean the difference between seeing results and hitting another dead end.

lean manufacturing

Achieving Operational Excellence in a High-Mix Industrial Metal-Cutting Operation

August 3, 2017 / , , , , , , ,

Over the last 20 years, lean manufacturing, Six Sigma, and other improvement techniques have changed the face of manufacturing. Kaizen programs, 5S, value-stream mapping, and other lean strategies have rendered impressive results in high-volume manufacturing plants around the world. However, not every lean principle is an off-the-shelf solution for operational efficiency. This is especially true for high-mix, low-volume manufacturing environments.

Industrial metal-cutting shops are often juggling multiple jobs—many of them custom and almost none of them the same. Production requirements, lead times, and due dates can vary, which makes forecasting and traditional lean concepts difficult to apply. In fact, according to the eBook, Five Performance-Boosting Best Practices for Your Industrial Metal-Cutting Organization, many small, high-mix operations don’t even attempt to implement traditional lean techniques because they are typically more successful in higher production environments.

The good news, however, is that lean manufacturing is evolving. “A growing number of high-mix, low-volume operations are tweaking traditional lean methodologies to their specific situation,” the eBook notes. “Lean manufacturing techniques can be modified to increase efficiency in even the most customized metal-cutting operations.”

For example, according to an article from Canadian Metalworking, one way to achieve operational excellence in a high-mix manufacturing environment is to create a mixed-model value stream. This begins by creating “product families” or groups of products that have similar process flow and work content. “The next step is to create one current-state map per product family and then a future-state design for that family that can achieve operational excellence,” the article states.

There is no question that this task can be complicated when dealing with a variable product mix. To help managers successfully achieve operational excellence in mixed model production, Canadian Metalworking offers the following 10 guidelines: (You can read the full article here.)

  1. Do you have the right product families? Create product families based on similar processing steps and work content, not brainstorming.
  2. What is the takt time at the pacemaker? Determine how often the pacemaker must produce a part to keep up with customer demand for the product family.
  3. Can the equipment support takt time? Determine if existing machine capacity can support the product family within the established takt time.
  4. What is the interval? Calculate how often the pacemaker will cycle through and produce all the parts in the product family.
  5. What are the balance charts for the products? Balance the work content, per operator, to takt time to create continuous flow through the pacemaker process. There will be different balance profiles for each product within the family.
  6. How will we balance flow for the mix? Determine how variation within customer demand and the product family will be handled, either by adjusting labor, sequencing, or work balancing.
  7. How will we create standard work for the mix? Standard work means establishing one standard way to build the products in the family, and then having everyone follow that method.
  8. How will we create pitch at the pacemaker? Pitch is a visual time frame that tells everyone in the value stream if they are on time to customer demand. The pitch created is tied to how often work is released to and taken away from the pacemaker.
  9. How will we schedule the mix at the pacemaker? Determine the mix that can be supported at the pacemaker, and schedule the pacemaker to handle variation within the product family.
  10. How do we deal with changes in customer demand? Customer demand can vary, and we need to pre-establish a Plan B to use when it does. Plan B might involve pulling a product or rebalancing the pacemaker.

Of course, this is just one example of how lean can be applied to smaller, variable manufacturing environments. For more strategies, check out the book Made to Order Lean by Greg Lane or these links of archived case studies published by Modern Machine Shop and The Fabricator.

While high-mix, low-volume operations certainly present a unique set of production challenges, there are several custom methods managers can put in place to reduce waste, optimize flow, and improve productivity. It may take a little research and some creativity, but leading-edge shops are finding that in today’s competitive market, the benefits are well worth the investment.

lean manufacturing

How Gemba Visits Can Benefit Your Metal Forge

July 20, 2017 / , , , , , , , ,

Like most industrial manufacturing segments, metal forges have embraced lean manufacturing and the benefits it can bring. Although not every operation has the resources to undergo a total lean transformation, industry leaders like Jorgensen Forge have adopted simple lean tools and practices to eliminate waste, lower costs, and improve customer responsiveness.

One lean manufacturing tool that continues to gain popularity among operations managers is “going to the Gemba” or taking a “Gemba walk.” This practical lean tool gives management a clear view of what is happening on the plant floor and, more importantly, reveals areas for possible improvement. As explained in the eBook, Five Performance-Boosting Best Practices for your Industrial Metal-Cutting Organization, “Gemba” is the Japanese term for “actual place,” but has been redefined by lean thinkers as the place where value-creating work actually occurs. In a manufacturing environment, this is typically the shop floor. Many lean experts advise manufacturing executives to make time to visit this place—known as taking a “Gemba walk”—so they can see their operation from the front lines.

There are several ways managers can “go to the Gemba.” According to a Target Online article from the Association of Manufacturing Excellence, there are three types of Gemba visits:

  1. Leadership Gemba Visits. In these visits, the focus is on the culture, developing trust, learning more about the operations, and finding ways to improve the working conditions of the team members. These Gemba visits are typically conducted by managers and executives (individually or in pairs). They don’t usually have an agenda or follow a prescribed process. The leader simply goes to the Gemba to engage with the team members in a meaningful way and searches for opportunities to make their work less frustrating and more fulfilling.
  2. Leader Standard Work Gemba Walks. These Gemba walks typically have an agenda or a theme and occur on a regular cadence. These are structured and can be done individually or in groups. Many management teams have standard processes for visiting team huddles, checking hour-by-hour charts, doing 5S audits, or doing safety observations. Others visit the Gemba with a specific theme in mind for the walk, such as reviewing autonomous maintenance practices, learning about kaizen activities, discussing safety procedures, reviewing visual management practices, etc.
  3. Problem-Solving Gemba Visits. Typically, the purpose of a problem-solving Gemba visit is to go to the source of a problem in order to observe it first-hand, talk to those closest to the problem, and determine if countermeasures are needed while working to determine the root cause of the problem. This is also a great opportunity for leaders to talk to team members about the problem-solving process and root cause analysis.

Why are Gemba visits so important? This article from The Leadership Network lists a few ways Gemba visits can be beneficial:

  1. First-hand knowledge is the highest form of information. A regular Gemba walk will give managers transparent and unmediated knowledge that is needed to challenge and validate assumptions made by data.
  2. Perspective is gained through experience. A regular Gemba walk allows managers to understand the challenges employees need to overcome on a daily basis to deliver the results that are being promised in the boardroom.
  3. Both people and process matter equally. A regular Gemba walk will help develop a culture that fixes the problems in a process and not one that blames the people performing the process.

If Gemba visits aren’t currently part of your management strategy, perhaps it is time to explore the ways in which it could improve your operation. To read more about this lean manufacturing tool, check out the slideshare presentation, Gemba 101, or read this overview article from iSixSigma.

lean manufacturing

Metal Forges Focus on Advancement in 2017

May 25, 2017 / , , , , , , , ,

 

Broad spectrum forecasts continue to look positive for manufacturers. As reported in our 2017 Industrial Metal-Cutting Outlook, experts believe that 2017 will be a year of growth for industrial manufacturing. Specifically, the latest outlook from MAPI says that industrial manufacturing growth should be 1.2% in 2017 and then accelerate to 2.6% in 2018.

Manufacturers are also optimistic. According to a May survey from the Institute for Supply Management, U.S. manufacturing and services executives expect to see increased revenue, hiring, and capital spending in 2017, reflecting confidence in the economy, reports IndustryWeek. Even after a short decrease in manufacturing orders in April, ISM’s gauge remains well above the average for all of 2016 and “indicates healthy optimism among factory managers,” according to Bloomberg.

A Focused Forecast

What does this mean for metal forges? From a big-picture standpoint, this is all good news. Economic health directly impacts automotive and other customer segments that carefully choose how they spend money with forges and other supply chain partners.

However, as stated in the article from Forging magazine, “Forgers are manufacturers, of course, but drawing their circumstances out of the mass of data represented by surveys like PMI or similar sources is futile.” In other words, it is more beneficial to look at segment forecasts than it is to look at broad manufacturing outlooks.

To give a more accurate outlook picture, Forging conducts its own annual survey with forging executives. Below are some results from its 2017 Forging Business Outlook:

Trends to Watch

Like most industrial manufacturers, forges remain committed to continuous improvement, regardless of market conditions. Because lean manufacturing is nothing new, today’s forges need to think outside the box—or beyond the shop floor—to find new improvement opportunities. As stated in the news brief, Resource Allocation Strategies for Leading Industrial Metal-Cutting Organizations, “managers focused on continuous improvement should explore all of the ways they can save their operation time and money.”

For example, Weber Metals of Paramount, CA and Ulven Forging of Hubbard, OR have taken their lean manufacturing and other continuous improvement activities “above the shop floor” and into the front office. According to Forge magazine, this has resulted in numerous benefits for the companies, including improvements in traceability, quoting, product flow, and scheduling.

Another big trend within the forging industry is a commitment to technological advancement. Last year, the Forging Foundation (FIERF) and Forging Industry Association revised the industry’s Forging Technology Roadmap to develop, support and fund technology and research to benefit the North American forging industry. In early 2017, The FIERF Board approved funding for five new technology projects. Below are three of those projects, as reported by Forging magazine:

1. Forging of Magnesium Alloys for Automotive Applications. Professor May Wells, University of Waterloo, Dept. of Mechanical and Mechatronics Engineering, and two graduate students, are engaged in the project that seeks “to design, build and validate an automotive, fatigue-critical component made of forged magnesium.” Ford Motor Co. is the industry partner to their research.

2. High-Strength, High-Toughness Microalloyed Steel Forgings Produced with Relaxed Forging Conditions and No Heat Treatment. Professor Anthony DeArdo, University of Pittsburgh, Dept. of Mechanical Engineering & Materials Science, and a graduate student, are seeking a “new composition and process route for making high-strength, high-toughness forging with minimum die wear, limited distortion and no heat treatment.”

3. Development of a Manufacturing Process for High-Power-Density Hollow Shafts. Professor Gracious Ngaile, North Carolina State University Dept. of Mechanical and Aerospace Engineering, with two student researchers will work to develop a cost-effective manufacturing process for high-power-density hollow shafts. The project’s industry partner is Mid-West Forge.

For a complete explanation of all five projects, you can read the entire article here.

Looking Ahead

Market forecasts aside, one thing is clear—today’s metal forging operations need to stay relevant and focused on the future. Improvement should continue to be the goal in 2017 and beyond, both in terms of process and technology. Forging may be a mature industry, but as the editors at Forge have stated over and over, with the efforts of industry leaders, it can still be advanced manufacturing.

In what areas can your forging operation advance in 2017?

 

 

 

lean manufacturing

The Importance of Ergonomics in Your Metal Forging Operation

March 25, 2017 / , , , , , , , , , , ,

For years, manufacturers have relied on lean processes to improve productivity and to reduce waste. This is certainly a good thing from an operations standpoint. However, from a safety and health perspective, lean manufacturing can have a few drawbacks.

For example, lean practices make jobs highly repetitive. As pointed out in this article from Industrial Engineer, repetitive jobs often eliminate critical rest time for employees. “The repetitive jobs take their toll on employees as stressful postures and high forces are repeated over and over throughout the day,” the article says. “In the long run, the financial savings from the productivity gains and quality improvements are used to pay for the higher cost of workers’ compensation claims.”

This is why many forges and other industrial metal-cutting organizations have incorporated ergonomics into their production processes. According to the U.S. Occupational Safety and Health Association (OSHA), ergonomics is defined as fitting a person to a job to help lessen muscle fatigue, increase productivity, and reduce the number and severity of work-related injuries. Strategic equipment placement and improved ergonomics not only keep employees safe and healthy, but they are key aspects of high productivity and optimized workflow. The fewer times an operator touches a material, the fewer chances for injury and human error, both of which contribute to productivity.

Not sure where to start? An article from IAC Industries describes possible workplace risk factors and suggested solutions. For example, there are at least six different types of musculoskeletal risk factors operators may face:

  1. Forceful exertions and motions.
  2. Extreme or repetitive exertions, postures and motions.
  3. Duration of exertions, postures, motions, vibration and cold.
  4. Insufficient rest or pauses.
  5. Work factors (for instance, close performance monitoring, wage incentives, machine-paced work).
  6. Environmental factors.

The article then goes on to describe an example of an ergonomic workstation design. According to IAC, incorrect working height is often responsible for extreme postures and motions at the workstation. Recommendations for the appropriate working height are as follows:

Of course, this is just one of the many ways a manufacturer can improve ergonomics within their operation. Another article from Ergonomics Plus, an Indianapolis, IN-based company, offers a 10-point checklist to help managers create a framework for building a successful ergonomics process. According to the company, a solid ergonomics process doesn’t have to be complicated to be successful, but it can be challenging to get all the right pieces in place and achieve sustainable results. You can review the entire checklist here.

If these suggestions feel overwhelming or you don’t quite know where to start, you may want to consider bringing in some professional help. Earle M. Jorgensen Company (EMJ), a metal service center featured here in a white paper from the LENOX Institute of Technology, decided to perform an in-depth ergonomic study at one of its metalworking facilities. With the help of a third-party resource and input from its shop floor employees, the company made several changes to the shop floor to eliminate unnecessary handling and transportation of material. Ergonomic improvements ranged from repositioning band irons to adjusting the height of staging tables. By optimizing the workflow, EMJ has seen a reduction in employee injuries, improvements in operator efficiency, and increased output. The service center has also seen an increase in shop floor morale, as operators feel they are playing a critical role in helping the facility succeed.

In what ways could you incorporate ergonomics into your forging operations?

lean manufacturing

Creating a Team Atmosphere in Your Forging Operation

January 25, 2017 / , , , , , , , , ,

Teamwork is essential to any manufacturing operation. Most experts agree that it is the cornerstone of any successful improvement initiative, and many of today’s industry leaders understand that collaboration and decision-making go hand in hand. From the shop floor to the executive office, everyone’s input carries value.

Unfortunately, building strong teams isn’t as easy as sitting a bunch of people in a room together once a week. As one article from IndustryWeek points out, just because a company works in teams doesn’t mean it is good at teamwork. Simply building a team isn’t enough. The goal has to be building an effective team.

What does this look like in a forging environment? For many companies, it starts with creating a sense of unity. According to an article from Reliable Plant, the goal is to remove the barriers that often exist between the departments by taking a one-plant, one-team approach. Specifically, the trade publication suggests removing any team or function name that directs the function of the team to one specific department or function. For example, change the name of total quality management to total quality manufacturing and then develop improvement teams consisting of personnel from each department within the plant. “This begins to create a common workplace interest and supports a one-plant, one-team environment,” the article states.

Another important step is for managers to consistently ask employees for input and, more importantly, to make some of their ideas a reality. According to the white paper, The Top Five Operational Challenges for Forges that Cut and Process Metal, communicating with shop floor employees and actively including them in operational decisions promotes a team atmosphere, and, therefore, motivates employees to achieve company goals. To see this principle in action, check out this video, which shows one manufacturing floor operator’s reaction to implementing a high-performance team culture in his organization.

An article appearing in the Harvard Business Review confirms that effective teams are hard to build, especially in today’s diverse, dispersed, and digital world. However, it is possible. Quoting research from J. Richard Hackman, a pioneer in the field of organizational behavior who began studying teams in 1970, HBR says there are three “enabling conditions” that lead to strong, thriving teams. The following is a quick summary of those conditions, as described by HBR (You can read the full article here.):

  1. Compelling direction. The foundation of every great team is a direction that energizes, orients, and engages its members. Teams cannot be inspired if they don’t know what they’re working toward and don’t have explicit goals. Goals should be challenging enough to motivate, and they also must be consequential: People have to care about achieving a goal, whether because they stand to gain extrinsic rewards, like recognition, pay, and promotions; or intrinsic rewards, such as satisfaction and a sense of meaning.
  2. Strong structure. Teams also need the right mix and number of members, optimally designed tasks and processes, and norms that discourage destructive behavior and promote positive dynamics. High-performing teams include members with a balance of skills. Every individual doesn’t have to possess superlative technical and social skills, but the team overall needs a healthy dose of both.
  3. Supportive context. Having the right support is the third condition that enables team effectiveness. This includes maintaining a reward system that reinforces good performance, an information system that provides access to the data needed for the work, and an educational system that offers training, and last—but not least—securing the material resources required to do the job, such as funding and technological assistance. While no team ever gets everything it wants, leaders can head off a lot of problems by taking the time to get the essential pieces in place from the start.

The HBR article goes on to describe a fourth condition—shared mindset—which is similar to Reliable Plant’s suggestions for creating a one-plant, one-team environment. This condition requires managers to facilitate shared information among departments and to be intentional about building bridges among team members.

Like any company-wide initiative, building an effective manufacturing team takes time, intention, and a little trial and error. By encouraging unity, fostering collaboration, and implementing strong foundational elements such as diversity and incentives, today’s forges can create a team-centered manufacturing environment that truly benefits everyone.

How are you creating a team environment in your forging operation? 

lean manufacturing

Is Your Forging Operation Ready for Next Generation Lean?

December 25, 2016 / , , , , , , ,

Lean manufacturing is nothing new. Principles based on continuous improvement, streamlining production, and machine efficiency have long changed the way manufacturers operate. Industry leaders like Jorgensen Forge have been using lean manufacturing tools like 5S and Total Productive Maintenance (TPM) for years to lower costs, improve responsiveness, and increase efficiency.

However, as stated in the eBook, Five Performance-Boosting Best Practices for Your Industrial Metal-Cutting Organization, lean manufacturing is evolving. “Companies that ‘got lean’ years ago are focusing on continuous improvement, and a growing number of high-mix, low-volume operations are tweaking traditional methods to fit their specific situation,” the eBook states.

A recent article series published by IndustryWeek takes this idea further, arguing that lean manufacturing should be evolving. “I am convinced that for Lean to remain relevant as a strategy for improving manufacturing effectiveness it needs to evolve to the point where expert practitioners are NOT needed for most typical Lean transformations,” consultant Paul Ericksen states here in the first article of the series. “Lean shouldn’t be a mystery or black art that is only successfully conducted by an elite group of practitioners. For this to happen, additional Lean concepts, strategies, metrics, processes, and tools need to be developed.”

Specifically, Ericksen argues that the lean evolution needs to go beyond simple “tweaks” and instead, should change its current emphasis on waste elimination to one of total business performance (i.e., revenue). He calls this Next Generation Lean.

You can read through the details of Ericksen’s entire theory here by accessing the full seven-part series, but below is a summary of some of his major points, as detailed in the fourth article:

While Ericksen’s theory may or may not make sense for your shop, one key point is worth noting: Your approach to lean manufacturing should be continuously improving and evolving right alongside your operation. If your forging operation has been using lean manufacturing tools for years, perhaps it’s time to re-evaluate and reconsider how those tools could better serve your company.

lean manufacturing

Machine Shops Benefit from Standardized Work Processes

December 20, 2016 / , , , , , , , ,

With a slew of improvement strategies, tools, and technologies available, many managers have lost sight of one of the simplest ways they can optimize the performance of their operations—standardized processes.

In fact, according to the Lean Enterprise Institute, standardized work is one of the most powerful, but least used lean manufacturing tools. “By documenting the current best practice, standardized work forms the baseline for kaizen or continuous improvement,” the organization explains here. “As the standard is improved, the new standard becomes the baseline for further improvements and so on. Improving standardized work is a never-ending process.”

As defined by iSixSigma, standardized work is the most efficient method to produce a product (or perform a service) at a balanced flow to achieve a desired output rate. It breaks down the work into elements, which are sequenced, organized, and repeatedly followed.

There are several benefits shops can gain from standardizing processes. The following are just a few:

Many shops are experiencing these and other benefits of standardized processes. Hard Milling Solutions (HMS), a shop featured here in Modern Machine Shop, standardized its parameters for specific material and cutting tool combinations to manage a highly varied workload with minimal labor. “Our primary goal with this system is to ensure every programmer cuts the same way, and gets the same results,” Corey Greenwald, owner of HMS, tells Modern Machine Shop. “We want customer needs to dictate what comes out of this company, not the experience and ability of any one individual.”

Quality Industries (QI), a metal fabricator based in La Vergne, TN, have seen the benefits of standardized work processes across several business areas. “For QI, the move to standardized work created positive scenarios and brought both obvious and underlying benefits to the business,” the fabricator says here on its website. Below are just a few of the ways QI has made standardization work in its operations:

  1. Process Documentation for All Shifts. Historically, many of QI’s productive processes were understood only inside the heads of experienced team members. Creating precise documentation to supplement and replace this “tribal knowledge” helps the fabricator to critically evaluate each manufacturing process to ensure that the most productive sequences and work practices were being documented. In addition, the documentation ensured that a given process could be duplicated on all shifts, and in all work cells and departments.
  2. Reductions in Variability. Once production processes were standardized, variability in product characteristics and quality was greatly reduced. While slight variations still existed due to different machine types, makes or models or tooling types, QI says most of these variations were eliminated because of the achieved consistency of steps and sequences in both material work and downstream activities. This aspect of Standardized Work also delivered tremendous value to the customer, who could rely on consistent finished goods.
  3. Easier Training for New Operators. In any manufacturing environment, bringing new personnel up to speed quickly is a challenge. For QI, standardized work and well-crafted documentation simplified the process. The best process documents not only spelled out steps in clear language, but were also highly visual—with images, charts, drawings and any other helpful illustrations. This training resource provided a continuous reference for the operators and enabled a new communication system for the team.  In the QI shop floor environment, team leaders and others from outside the department were able to determine the level at which each operator is qualified on machines, work cells, and specific operations.

In today’s fast-paced market, process control is essential for shops that want to stay competitive and maintain the high quality customers demand. As stated in the industry brief, “Strategies for Improving Workflow and Eliminating Bottlenecks in Industrial Metal-Cutting,” today’s industrial metal-cutting companies can’t afford costly mistakes that can slow down or stop production. By implementing standardized work processes, many shops are finding they can not only increase productivity, but reduce variable(s?) variable overhead? and improve several other business areas that contribute to the bottom line.

Are your shop’s metal-cutting work processes standardized? 

lean manufacturing

Keep Your Machine Shop Competitive with Value Steam Mapping

November 20, 2016 / , , , , , , , , ,

Research continues to show that leading industrial metal-cutting companies are focused on continuous improvement. For example, according to the latest Top Shop benchmarking survey from Modern Machine Shop magazine, “top shops” (defined as the top 20 percent of the 350 shops that were surveyed) are more likely to apply lean-manufacturing methodologies than other shops. They are also more likely to have cultures of continuous improvement. Specifically, the survey revealed that 62 percent of top shops have adopted formal continuous improvement programs compared to only 46 percent of other shops.

The survey also found that shops are implementing a variety of improvement tools to stay competitive. One tool in particular that is widely used is value-stream mapping (VSM). In fact, the survey found that almost 40 percent of top shops are using this lean methodology compared to only 20 percent of other shops.

As explained in the eBook, Five Performance-Boosting Best Practices for your Industrial Metal-Cutting Organization, VSM is a “paper and pencil” tool that helps managers visualize and understand the flow of material and information as a product makes its way through the value stream. The map is a representation of the flow of materials from supplier to customer through your organization, as well as the flow of information that support processes as well. According to iSixSigma, this can be especially helpful when working to reduce cycle time because managers gain insight into both the decision-making and the process flows.

Although it is easy to become overwhelmed by the terminology, an archived article from Ryder outlines VSM in five simple steps:

  1. Identify product. Determine what product or product groups you will follow. Focus on one product at a time and start with the highest volumes.
  2. Identify Current Flow. Once you’ve defined the scope, the next step is to create a “current state map,” or a visual representation of how the process (or processes) in the warehouse is operating at the present moment. Key data points such as units per month, shipping frequency/schedules, hours of operations (available time), number of shifts worked, or any pertinent information around customer demand should be gathered before beginning the current state.
  3. Observe. Get on the floor and walk the entire process through step-by-step. Take notes and compile data such as inventory, cycle times, and number of operators.
  4. Make the map. Literally map out the process you just witnessed by drawing it out on a board. Include the data you collected and place inventory numbers under each step in the process. This will identify your bottlenecks.
  5. Create (and implement) a plan. Now that you know what and where your process improvements are, choose one or two to focus and improve on in a set amount of time. Once those are complete, you can prioritize the other bottlenecks to improve lead times.

One of the biggest misconceptions about VSM is that it is only applicable to high-volume shops. Like many other lean tools, VSM can usually be adapted to fit high-mix, low-volume machine shops. In an interview with Fabtech, Mike Osterling, a senior consultant with Osterling Consulting, Inc., explains:

“Let’s begin by pointing out that the front office processes (order taking and management) for low-volume, high-mix production processes are much more complex than the front office processes for high-volume low-mix environments – thereby meaning those value streams are in much greater need of VSM alignment!  So we need to start those VSMs at the receipt of order (or at receipt of a request for quote), and we need to include leaders from those areas in the actual VSM activity.  In some cases we can identify VS product families if there are products that are different, but they go through common production processes. In those situations, there may be opportunities to create areas of flow (or mini-flow).” (You can read the rest of the interview here.)

In an industry driven on speed and schedules, taking a few days to complete VSM or other improvement exercises may seem like wasted time. However, managers need to consider the price of not taking the time to focus on continuous improvement. Investing in tools like VSM can help your shop operate more efficiently, reduce lead time, improve customer service, and as research suggests, help you keep up with your competitors.

If you want to learn more about value stream mapping, iSixSigma provides a wealth of information available here, and the Lean Manufacturing institute offers educational classes and webinars here.

lean manufacturing

Implement an Obeya for Your Industrial Metal-Cutting Organization

November 15, 2016 / , , , , , , , ,

The metals industry is constantly facing challenges—high inventory levels, fluctuating raw material costs, and declining shipments to name a few. To help offset the challenges and meet customer demands, industrial metal-cutting companies have long turned to continuous improvement practices to reduce downtime and boost productivity.

In fact, continuous improvement is an essential practice for today’s metal-cutting organizations. As stated in the eBook, Five Performance-Boosting Best Practices for Your Industrial Metal-Cutting Organization, the difference between a metal-cutting company that survives versus one that thrives is continuous improvement.

One continuous improvement tool executives are incorporating into their operations is “obeya.” As defined here in a blog from visual solutions provider Graphics Products, obeya (also spelled oobeya) is a Japanese term for “big room” or “great room.” In lean manufacturing, it is a dedicated room that is reserved for employees to meet and make decisions about any production challenges.

According to the blog, the idea behind obeya is for employees to collaborate easier and solve problems faster by having a central location to meet, share, and discuss key information. Benefits of using obeya include:

Like other lean practices, obeya is part of the Toyota Production System (TPS), which also includes 5S, Kaizen, and Total Productive Maintenance (TPM). According an article from IndustryWeek, obeya is also referred to as the “brain” of TPS and is often called the “Adrenaline Room” at Toyota.

“We call it the Adrenaline Room because we are trying to encourage our manager to address the day, every day, urgently, to improve the output to our customers, internal and external,” Scott Redelman, senior manager, production control and logistics at Toyota Industrial Equipment Manufacturing, told IndustryWeek. “So if we think about each process or each person—even within our four walls—as the customer, how do we aggressively have the adrenaline and the energy, the sense of urgency to quickly react and grow together to make that improvement for the customer? We have to have the adrenaline to do it.”

Industrial metal-cutting companies have also benefitted from obeya. As described in IndustryWeek, ball-bearing manufacturer Timken created an obeya at its Shiloh, N.C. plant four years ago to help meet sudden growth at the time. The company also added an obeya at its Honea Path, S.C. plant earlier this year. According to operations manager Robert Porter, the investment is paying off with productivity improvement year over year, even in down years.

Obeya, however, isn’t just placing your managers in a room and hanging charts on the wall. To ensure obeya is an effective tool, the Lean Enterprise Institute suggests managers focus on a few key issues:

While there are many continuous improvement tools available, obeya has proven itself valuable. In fact, Toyota considers it one of its lean pillars. Industrial metal-cutting companies that are looking to stay ahead of the competition in today’s challenging market can experience the benefits of obeya too.

What lean manufacturing tools are you using to improve your metal-cutting operation? Is obeya one of them?

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