lean methodology Archives - 6sigma https://6sigma.com/tag/lean-methodology/ Six Sigma Certification and Training Fri, 28 Feb 2025 12:38:18 +0000 en-US hourly 1 https://6sigma.com/wp-content/uploads/2021/03/cropped-favicon-blue-68x68.png lean methodology Archives - 6sigma https://6sigma.com/tag/lean-methodology/ 32 32 Kanban – Boards and Cards Go Digital as a Viral App https://6sigma.com/kanban-boards-and-cards-go-digital-as-a-viral-app/ https://6sigma.com/kanban-boards-and-cards-go-digital-as-a-viral-app/#respond Fri, 28 Feb 2025 06:07:36 +0000 https://opexlearning.com/resources/?p=24230 kanban, Kansan cards, lean thinking

Kanban is an approach to process change for organizations, which uses visualization with a Kanban board. It allows a better understanding of work and workflow. Kanban practice limits work in progress, which reduces waste from multitasking and context switching, exposes […]

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kanban, Kansan cards, lean thinking

Kanban is an approach to process change for organizations, which uses visualization with a Kanban board. It allows a better understanding of work and workflow. Kanban practice limits work in progress, which reduces waste from multitasking and context switching, exposes operational problems and encourages collaboration to improve the system. It is rooted in two sets of principles, for change management and service delivery, which emphasize evolutionary change and customer focus. Kanban practice does not prescribe a specific set of steps, but starts from existing context and encourages continuous and incremental changes to the system. It minimizes resistance to change to facilitate it. The Kanban process focuses on the customer and work, which meets their needs, rather than an individual’s activities.

Kanban boards are perceived as a variation on traditional Kanban cards. Instead of the signal cards that represent demand or capacity, the board utilizes magnets, plastic chips, colored washers or sticky notes to represent work items. Each of these objects represents an item in a production process as it moves around the board. Its movement corresponds with a knowledge work or manufacturing process. The most basic board can be divided into three sections: “waiting,” “work in progress,” and “completed work.” Complex Kanban boards can be created that visualize the flow of work across a value stream map.

For individuals and organizations using Kanban boards, a new app is making waves across the business community. Trello is an app that has exceeded 25 million users and is considered a viral runaway success. It uses the Kanban principles for managing projects, originally popularized by Toyota in the 1980s for supply chain management. Projects are represented by boards, which contain lists (corresponding to task lists). Lists contain cards (corresponding to tasks). Cards are supposed to progress from one list to the next (via drag-and-drop), for instance mirroring the flow of a feature from idea to implementation. Users can be assigned to cards. Users and boards can be grouped into organizations.

It supports iPhone, Android and Windows 8 mobile platforms, along with Mac and PC desktop platforms. It is also supported on various tablet and iPad platforms. Another key feature is integration. These API integrations allow users to access features such as Google Drive, Slack and Salesforce directly from Trello.

(This is not an endorsement of a product or its developer)

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How Can You be a Lean Startup: Things to Remember https://6sigma.com/how-can-you-be-a-lean-startup/ Mon, 15 Aug 2022 16:39:00 +0000 https://6sigma.com/?p=100234 Companies usually create the perfect business plan to launch new products and services which are then introduced into the market. They often fail to incorporate the voice of the customer into the early design phases, which can lead to catastrophic failures later. 

The concept of lean startups places importance on delivering the greatest possible customer […]

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Companies usually create the perfect business plan to launch new products and services which are then introduced into the market. They often fail to incorporate the voice of the customer into the early design phases, which can lead to catastrophic failures later. 

The concept of lean startups places importance on delivering the greatest possible customer value without engaging in elaborate planning. While several businesses face challenges and fail, lean startups are more resilient and more flexible, as they’re not restricted by a rigid business plan. 

Businesses of any scale can embrace lean startup principles to create products that are actually needed by customers, as the latter will be willing to pay a price for something they really need. This also helps establish brand loyalty in the long term which contributes to greater customer lifetime value.

What is Lean Methodology?

Lean is a process improvement methodology that aims to fix waste in production to improve efficiency, productivity, and customer satisfaction. Waste is anything that doesn’t contribute any value to customers and includes delays, waiting times, switching times, defects, production issues, etc

Lean traces its roots to the 1960s when it originated in the manufacturing sector. The approach puts all emphasis on processes and focuses on continuous improvement. It is highly customer-centric.

When wastes are removed from processes, what remains are value-adding processes. Lean minimizes inventory management costs with a pull system, where goods are only created when there’s a demand for them. This helps manage overproduction.

How Startups Can Become Lean?

Startups that aim to embrace lean should focus on continuous improvement. It is crucial to create ways to obtain continuous feedback from your customers and use it to shape your goods and services in a way that adds more value to customers.

It’s a great idea to involve customers in product design cycles so that the final product already has an established demand in the market. Constant product improvement helps startups differentiate themselves from their competitors as well while enjoying greater business efficiency at reduced costs.

Since customer needs are incorporated into the product at early stages, products are much more likely to succeed.

The Era of Lean Startups

Lean startup is actually an innovative methodology that emphasizes experimentation to create minimum viable products. Lean startups use the lean methodology to create rapid product delivery cycles for customers. This helps reduce market risks and immediately cuts down on overproduction and inventory management losses. 

Companies should strive to cut down on waste, which are process inefficiencies that don’t address customer pain points. 

Since customers are involved from the beginning itself, lean startups will address customer requirements in a better way and face fewer losses. 

Brands that attempt to launch new products and services should use the lean startup approach to increase their chances of success.

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Why Performance Reporting is Essential to Lean https://6sigma.com/why-performance-reporting-is-essential-to-lean/ https://6sigma.com/why-performance-reporting-is-essential-to-lean/#respond Fri, 02 Nov 2018 15:00:29 +0000 https://opexlearning.com/resources/?p=27399

Performance reporting is an essential part of the lean strategy. Businesses need to understand their performance levels by assessing and reporting their goals, targets, and objectives continuously. Following these measurements and reports, adjustments and decisions can be made in accordance with the lean methodology.

Establishing […]

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Performance reporting is an essential part of the lean strategy. Businesses need to understand their performance levels by assessing and reporting their goals, targets, and objectives continuously. Following these measurements and reports, adjustments and decisions can be made in accordance with the lean methodology.

Establishing Benchmarks

Performance reporting can help establish benchmarks that can be used as baselines for further performance results and measurements. Benchmarking practices help businesses open up to new innovations and methods to improve efficiency while increasing the level of customer satisfaction.

Benchmarking is a great tool to identify the specific challenges that the business faces and takes out guesswork from the equation. It is also a powerful way to prioritize the opportunities for improvement.

Measuring and Monitoring the Workforce

It is essential for businesses to use KPIs (Key Performance Indicators) for continuous improvement.  This is a great way to control the behavior of the workers and their actions.

Employees, too, can use this method to exactly find out where it is that they are failing and the ways to correct the errors. This ultimately helps improve performance and strengthens cohesion between the employer, the management, and the subordinates.

Lean Performance Reporting

Conventional operational reporting involves the use of dashboards to allow managers to make trade-offs, examine circumstances, and respond to specific business issues.

However, reporting lean’ can be a challenge. This involves highlighting the information that is most critical to operational performance management. Performance reporting should also simplify and eliminate any processes that do not create any added value.

A lean reporting tool focuses on what happened during the quarter/month and also explains how and why the said event occurred.

  • It is important to map the existing reporting and circumstances.
  •  Helps analyze the gaps between the existing production levels and the actual business needs.
  •  Enables use of business intelligence tools if needed.

Improved Communication

Performance reporting will help improve communication between the managers, investors, customers, and subordinates. It helps improve customer insights and allows key stakeholders to focus on the best sales opportunities.

It makes business partner activities more visible and allows senior managers to understand the needs of the employees. Consequently, workplace conflicts are reduced. It also helps increase customer confidence and the clientele base.

The Ideal Performance Report

The ideal performance report should consider and include several factors:

  • Analysis of the business’s past performance
  • An assessment of the current status of risks
  • Summary of the changes approved during the reporting period
  • Projects completed during the reporting period
  • Current project completion forecasts
  • Variance analysis results

The business report is an extremely important document that presents valuable information about the business. The report is particularly written to attract investors to the business. The other purpose of the report is to keep the workforce aware of the main achievements and objectives of the company.

During the performance reporting process, the results of the various processes are analyzed and then combined into performance reports. These are presented in tabular and graphical formats that are either based on text, visuals (charts, tables, and graphs) or a combination of them all.

Performance reporting and measurement together include several different phases, namely, information collection, analysis, and reporting.

Conclusion

Performance reporting is an essential component of the lean methodology. It allows businesses to collect and disseminate project information and communicate project progress as well as predict future routes.

Lean process reporting techniques focus on removing processes that can be best done away with. Reporting also assumes prime importance in project communication management. Businesses should rely on measuring the Key Performance Indicators (KPIs) for evaluations in an objective manner.

Performance reporting also helps improve communication between team members and helps drive increased customer satisfaction levels. The report is basically aimed at the investor, seeking his participation and support in the business endeavors. Secondly, the report helps keep all employees aware of the current business status and the roadmap ahead.

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Getting Lean: 7 Types of Waste in the Education Process https://6sigma.com/getting-lean-7-types-of-waste-in-the-education-process/ https://6sigma.com/getting-lean-7-types-of-waste-in-the-education-process/#respond Sun, 23 Sep 2018 15:00:38 +0000 https://opexlearning.com/resources/?p=27068 lean

The concept of the seven deadly wastes’ is one of the cornerstones of the lean methodology, and forms a part of a vital toolkit which every professional should be familiar with. If you are able to identify the impact that the seven wastes have on […]

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lean

The concept of the seven deadly wastes’ is one of the cornerstones of the lean methodology, and forms a part of a vital toolkit which every professional should be familiar with. If you are able to identify the impact that the seven wastes have on your workplace, then you can start to take the initial steps toward working more efficiently and productively.

Unfortunately one of the hangovers from lean’s inception in the manufacturing industry is that a large number of lean tools are focused on wastes within factories, making it challenging to adapt to non-manufacturing settings. This article seeks to change this viewpoint, so that education professionals can take a fresh look at how the methodology applies to them and their institutions.

  1. Defects / Rework

In the same way that there are defective products in manufacturing, defects in education can take the form of systems that fail to transmit information as required, resulting in loss of time, communication and human energy. Examples include inability of institutions to complete admissions due to missing or incorrect student information, or failure to inform staff of new or recently changed policies in good time, leading to non-compliance.

  1. Overproduction

More often than not, this is an issue that tends to slip under the radar in service industries like education. However, overproduction is a unique category of waste in the sense that it inevitably gives rise to other forms of waste if it is not checked. Examples of overproduction include having all the students in an institution enrolling concurrently, resulting in long queues, delays and errors, or expecting all members of faculty to adhere to standard teaching, research and service workload expectations, whether the extra work is required from everyone or not.

  1. Waiting

This is idle time within a process before moving to the next step, and is generally caused by shortages in inventory or poor balancing of work across shifts and among employees. Some examples of this type of waste are: waiting for students to submit assignments or attend lectures, awaiting approval for critical decisions or waiting for people so that a meeting can begin.

  1. Overprocessing

This is the performance of activities which provide no value to the service from the point of view of the students. It is manipulation of the service offered by an educational institution and its staff to levels beyond what students expect and are willing to pay for. For instance, it makes little sense and adds no value for handouts or notes to be packaged in envelopes that students will immediately discard.

  1. Transportation

This involves the unnecessary movement of people or materials from one point to another. While some types of movement may be necessary for the provision of a service, they may not necessarily be of concern to the customer. Examples include faculty having to carry coursework home to grade it, or students ferrying assignments home on removable media and then back to class again every day.

  1. Inventory

Inventory waste occurs when more supplies are ordered than are actually necessary, resulting in a glut, or when improper tracking of inventory causes shortages of essential supplies. For instance, a school library that has a limited number of a highly in-demand book will mean that students will struggle to complete their assignments. Another form of inventory waste is printing of new prospectuses every year and discarding those from the previous year, despite both having similar information.

  1. Underutilized Employees

Having staff with good ideas is an invaluable resource, so the worst thing that leaders in educational institutions can do is to ignore them completely. The people actually working with the customers and processes directly are in a good position to identify areas where things go wrong and can suggest solutions.

Conclusion

Many people still think of lean and business improvement as they relate to manufacturing, especially since the concepts were first introduced by companies like General Electric, Motorola and Toyota. However, businesses and organizations in the service sector, including in education, are starting to consider how process improvement can transform how much value they offer to the customer.

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Using the 5S Tool to Organize the School Workplace https://6sigma.com/using-the-5s-tool-to-organize-the-school-workplace/ https://6sigma.com/using-the-5s-tool-to-organize-the-school-workplace/#respond Sun, 16 Sep 2018 15:30:00 +0000 https://opexlearning.com/resources/?p=27078

Teaching is one of the most important professions in the world. This is why, as a teacher, you should have a classroom which is a reflection of the highest teaching standards as well as the embodiment of a hard-working, safe and comfortable environment for your […]

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Teaching is one of the most important professions in the world. This is why, as a teacher, you should have a classroom which is a reflection of the highest teaching standards as well as the embodiment of a hard-working, safe and comfortable environment for your students to receive knowledge. How do I get there? you may ask.

5S is a tried and tested tool and part of the lean method that has been used throughout the world in a variety of process improvement settings. There are five key phases in 5S, namely sort, set in order, systematic cleaning, standardize and sustain. Here, we examine each of these phases and some examples of each within an elementary school setting.

Sort (Seiri)

Sorting is differentiation of what is necessary and what is unnecessary in order to discard anything unnecessary. In the context of lean, it requires the elimination of all unnecessary materials, tools, work in progress, machinery, documents and papers. In this case, a teacher examines their workplace to find out the essentials that are worth keeping, discarding the rest.

In our example, we look at a classroom with more desks and chairs than students as well as cluttered boards and work tables. Sort dictates that we remove any extra furniture and store or dispose of old artwork and unnecessary paperwork.

Set in Order (Seiton)

Ideally, everything in the workplace should be in its rightful place and there should be a place for everything. Each item’s place needs to be clearly demarcated and labeled, with the items then arranged in a way that encourages efficient workflow. All equipment, parts and tools should be stored close to where it will be used, so that the flow path is straightened.

After the additional chairs have been removed from our classroom, it is now possible to arrange the tables and set them in order so that spaces are allocated for different types of lessons. Setting things in order creates independence in the students by giving them a sense of space and ownership.

Systematic Cleaning (Seiso)

It is important that the workplace stays organized and tidy. As each shift ends, the work area should be cleaned and everything that has been in use returned to its allocated place. Not only does it make it easy for people to know what goes where, it also ensures that every piece of equipment is exactly where it belongs. It should be noted that maintaining cleanliness needs to be part of daily work, and not performed occasionally when the workplace gets too messy.

At the end of the school day, the tables, desks and other workspaces within the classroom are wiped and shined, boards are properly cleaned and the whole space is returned to a pristine state, ready for classes the next day.

Standardize (Seiketsu)

Work practices need to be standard and consistent. This allows everyone to focus on their individual responsibilities in the achievement of the previous three S’s.

In Seiketsu, we lay out our labeled class information, schedule, reminders, calendar and upcoming menus. We use different colors to ensure that we differentiate the different topics in order to visually manage each process.

Sustain (Shitsuke)

Once the first four S’s are established, they need to be entrenched as the new way that the classroom operates. You should keep your focus on this new way in order to avoid slipping back into the old ways. You may also think about how the new ways can be further improved.

In our classroom, weekly checks and regular updates allow us to sustain our new, well maintained workplace. Not only does this make it a wonderfully pleasant place to learn, but it also sends out a powerful message to students, faculty and parents.

Conclusion

5S is a discipline within the lean methodology which helps organizations to maintain well-organized, visual workplaces. When the learning environment is well organized, children become more independent and teachers can spend time concentrating on students instead of wasting it trying to find teaching materials.

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Why is Lean Six Sigma Important to the Environment? https://6sigma.com/why-is-lean-six-sigma-important-to-the-environment/ https://6sigma.com/why-is-lean-six-sigma-important-to-the-environment/#respond Thu, 30 Aug 2018 13:30:44 +0000 https://opexlearning.com/resources/?p=27039

Lean and Six Sigma are among the most powerful and popular business process improvement methodologies which are being rapidly deployed by a variety of service and manufacturing organizations across the world. The guide below investigates the relation of Lean and Six Sigma with the environment, […]

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Lean and Six Sigma are among the most powerful and popular business process improvement methodologies which are being rapidly deployed by a variety of service and manufacturing organizations across the world. The guide below investigates the relation of Lean and Six Sigma with the environment, offering advice on how environmental conservation professionals can use the principles of Lean Six Sigma in order to obtain improved operational and environmental outcomes.

Defining Lean and Six Sigma

Normally referred to as Lean manufacturing, the lean methodology refers to business methods and principles which were initially developed as the Toyota Production system by the Japanese car manufacturer. The lean methodology focuses on systematically identifying and eliminating waste or non-value adding activities that consume capital or resource time.

At many organizations, Six Sigma refers to a measure of process and production qualities that strive to achieve near perfection. It is a data-driven, disciplined approach to production that aims to eliminate process defects in a variety of fields that range from transactions and manufacture to service and product provision.

The Importance of Connecting Lean Six Sigma to Corporate Environmental Efforts

Both Lean and Six Sigma are heavily reliant on a culture of continuous improvement which is perfectly aligned with the environmental goals of sustainability and prevention of pollution. There are a number of compelling reasons why Lean Six Sigma methodologies should form a major part of corporate environmental improvement and sustainability efforts. Some of these are:

  • Quick and Dramatic Outcomes: One thing that Lean does is produce quick results. This is because many lean events last only 2-5 days and, in this period, teams will enjoy dramatic reductions in cost and lead times, as well as corresponding improvements in customer satisfaction and product quality. Use of lean methodologies in resolving environmental issues can offer impressive and dramatic results as well.
  • Continual Improvement Culture: Lean Six Sigma tools can be used to engage all employees at each level of the organization in efforts to identify and eliminate waste from processes. If environmental waste is included in these improvement efforts, Lean Six Sigma becomes one of the most powerful ways to develop a culture of continuous improvement and sustainability. Sustainability and environmental stewardship is becoming more valued in the new generation of workers.
  • Avoiding Pitfalls: Integration of Lean Six Sigma in environmental improvement efforts is one way to minimize an organization’s environmental impact and risks, while navigating regulatory issues and avoiding penalties for non-compliance.

How Lean Six Sigma Implementation Provides Environmental Improvement Results

There is a whole host of ways through which environmental protection professionals and organizations can leverage the power of Lean Six Sigma to improve results. Lean approaches to the environment are strategies that incorporate environmental improvement efforts with the principles of the methodology. Some examples of such implementations include:

  • Connecting of Lean Six Sigma and Environmental Improvement Efforts at Facilities: Safety and environmental health professionals can offer support for operations-driven Lean Six Sigma implementations, helping them to expand their scope, expose hidden sources of waste, reduce time to implement when permits and legal paperwork might be involved, and improve operational and environmental results.
  • Delivery of Lean Six Sigma and Environmental Technical Assistance: By partnering with Lean Six Sigma experts, environmental technical assistance personnel can deliver environmental protection services more effectively, and better quantify those results for regulatory agencies.
  • Using Lean to Boost Effectiveness Of Environmental Programs: The visual controls used in lean and other concepts that form part of the methodology can boost the effectiveness of environmental compliance efforts, and reduce the chance of mistakes, near misses and environmental disasters. In addition, environmental agencies can use lean to help reduce waste produced by various business processes. The State of Iowa launched a lean program in order to speed up the time it took to issue new air permits, in order to allow businesses to expand and grow.

It is essential that environmental professionals understand how to interface with Lean Six Sigma experts so as to develop successful and effective partnerships. Lean Six Sigma experts can also learn from environmental consultants and professionals, to better identify opportunities and capture cost benefits within the work processes they improve.

Did you know that environmental benefits can be achieved by accident?

The US EPA published a table showing the connection between reducing the lean wastes and the impact on the environment

Source: Lean Manufacturing and the Environment, EPA100-R-03-005, United States Environmental Protection Agency, October 2003.

By applying Lean and Six Sigma to their organization, companies can reduce their environmental impact without even trying. They probably already have, and not realized it, or captured the benefits. Learn more about Lean and the EPA at their website.

Conclusion

There is no single cookie-cutter approach to integrating lean efforts and the environment the only way to succeed is by trying it out. As Lean and Six Sigma implementations continue to increase alongside the growing realization among organizations of the importance of environmental sustainability in their operations, there is an exciting opportunity to use these methodologies to reduce waste and improve the environment.

If you like this topic, check out the website LeanSixSigmaEnvironment.org for more examples and free online training.

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3 Best Practices to Improving the Lean Supply Chain https://6sigma.com/3-best-practices-to-improving-the-lean-supply-chain/ https://6sigma.com/3-best-practices-to-improving-the-lean-supply-chain/#respond Sun, 26 Aug 2018 14:30:50 +0000 https://opexlearning.com/resources/?p=27076

The Lean methodology is unique in the sense that it is a concept, philosophy, practice and set of business tools all rolled into one neat package. Its focus is maximization of quality, reduction of unnecessary processing and optimization of value to customers by offering them […]

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The Lean methodology is unique in the sense that it is a concept, philosophy, practice and set of business tools all rolled into one neat package. Its focus is maximization of quality, reduction of unnecessary processing and optimization of value to customers by offering them what they need when they need it. This idea is encompassed in the twin pillars of lean thinking: Just-in-Time and Jidoka.

Every lean organization strives to provide its customers with the best quality it can within the shortest lead time possible by minimizing waste and unnecessary processes. At first, most people think of waste in terms of inventory, but lean also looks at proper utilization of time, effort and human resources. By using the practices below, lean can fit in nicely with supply chain planning, whose main objectives are to lower costs while improving customer satisfaction.

  1. Streamline Procurement Procedures

Many businesses build up complex purchasing operations due to the belief that they have complex purchasing needs, but this is not necessarily the case. For large firms, there are often corporate purchasing groups operating parallel to local purchasing, resulting in a purchasing department at the headquarters which dictates company policy to the local groups. In many cases, resources are wasted when the lower level duplicates the purchasing functions carried out at headquarters.

Because there are two purchasing departments, it is easy for vendors to receive conflicting information. They may receive multiple contracts one central and various local resulting in a variation of pricing. When this varying information is stored as multiple records within the company’s computer system, it can lead to confusion as employees will be unsure of which vendor to contact.

If a company practices Lean supply chain management, they reduce their procurement functions to a single point of contact for all vendors so that there is only one contract and a single price applicable to all its locations.

  1. Improve Manufacturing Processes

Lean supply chain management first gained popularity in the field of manufacturing, thanks to the quick and significant improvements it can achieve. Through this methodology, it is possible for manufacturing processes to be improved for purposes of reducing the resources needed and eliminating waste, while ensuring optimal operational performance.

Quality is an essential part of lean thinking. When there are no defects in the process, wate is reduced and the organization’s efficiency increases. Better quality also means that there will be fewer customers returning goods, thus reducing the resources required for quality control, repairs and returns.

Organizations which adopt Lean manufacturing practices improve their supply chain by examining their routings, equipment and bill of materials to find where they can make further improvements.

  1. Eliminate Waste In Warehousing And Transportation

Warehouse processes need to be carefully examined in order to identify areas where resource wastage and non-value adding processes can be eliminated. Among the areas companies should keep working on is the elimination of unnecessary inventory. Accumulation of inventory requires the company to spend money and other resources on storage and maintenance. Getting rid of unnecessary inventory helps to streamline the supply chain and minimize warehousing space.

Businesses looking to improve their Lean supply chain will often look at ways to streamline their transportation procedures. There are many instances where a company’s efforts to satisfy its customers results in making poor shipping decisions. For instance, instead of combining multiple orders for cheaper shipping, they are sent out individually, which is more expensive. A business could also find itself dealing with multiple shipping companies instead of reducing their transportation options to a few affordable choices.

Conclusion

When an organization takes advantage of the power of lean to make its supply chain operate in a more efficient way, then it will be easier for it to offer a consistent level of service to customers. Reliable service results in satisfied customers, increased pricing power and higher revenues.

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Controlling WIP in the Automotive Industry https://6sigma.com/controlling-wip-in-the-automotive-industry/ https://6sigma.com/controlling-wip-in-the-automotive-industry/#respond Thu, 02 Aug 2018 14:00:36 +0000 https://opexlearning.com/resources/?p=26651

In the current economic climate, many manufacturers are coming under continuous pressure to cut down on their costs from both the market and shareholders. In particular, shareholders expect them to maximize revenues at an absolute minimum of cost. Besides this, consumers (the market) expect to […]

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In the current economic climate, many manufacturers are coming under continuous pressure to cut down on their costs from both the market and shareholders. In particular, shareholders expect them to maximize revenues at an absolute minimum of cost. Besides this, consumers (the market) expect to receive the best products with regard to quality, timely delivery and price.

All of these requirements then lead to several questions, particularly in the automotive manufacturing industry: How can car makers improve the efficiency of their operations and provide high quality products while optimizing their capital? How do they offer the maximum value possible to customers at a lower cost? How do they optimize cash flow while at the same time, continuing to pursue the objective of cost reduction?

Breaking Down WIP Inventory in the Automotive Industry

Management of inventory is one of the key areas that contribute to the enhancement of any manufacturer’s results. As a matter of fact, inventory levels are so essential to financial results in manufacturing that they are often quoted as a percentage of sales. If a manufacturing plant reports a high percentage of inventory when compared to sales, it is operating at low efficiency.

Within the automotive manufacturing sector, Work In Process (WIP) is one of the key inventory categories that affect efficiency. In this context, WIP refers to any materials, assemblies or partially completed automotive parts which are not yet considered finished goods, but no longer count as part of the raw materials inventory.

In the West, Lean manufacturing is a methodology that has become synonymous with efficient production. Toyota, which is arguably the most efficient car manufacturer today, is one of the best illustrations of the application of the Lean methodology used to improve the manufacturing process. The company strives to WIP in two major ways:

  1. Just-In-Time Production

Efficient production based on lean processes stresses on suppliers to manufacture just enough parts that will enable every order from customers to be put on the assembly line when needed, hence the concept of Just-In-Time. It requires intense effort from Toyota and its major suppliers that they only manufacture what is needed at the same or lower cost than in mass production.

The prerequisites to achieving this goal are attention to detail when designing the processes required as well as the development of a collaborative environment with the company’s suppliers. The partnerships are not by accident they are necessary aspect of the idea of Just-In-Time manufacturing.

A JIT system of inventory control is popular with both smaller manufacturers and major players in the automotive industry as it lets them make more efficient use of capital while enhancing cash flow. Particularly in the case of smaller businesses which are just starting out in the automotive industry, this model not only reduces the amount of startup capital required, but helps them to avoid tying up resources in large amounts of unneeded WIP inventory.

  1. Flexible, Reusable Processes

Before Toyota pioneered Lean manufacturing, traditional automotive manufacturing plants that produced body parts were dedicated to pressing one part for very long periods, since it could take several hours or even days to switch the tooling within the press to press a different part. In this case, changeovers were often resulted in extended periods where continuous production was interrupted.

To avoid this, each press had to produce massive quantities of each part at a time parts which then had to be stored until they were needed. As a result, capital needed to pay for steel, operator wages, and the storage space were tied up until the entire process of manufacturing a finished product was complete.

Toyota decided to manufacture vehicles in batches of one, where a press only needed to press a few copies of each part. This was made possible by clever design that meant the parts were shared across models. This also meant that, when building cars in batches of one, it was not necessary to make one pressing of each part at a time.

Conclusion

Once manufacturers visualize their work through the lens of Lean manufacturing processes, they can then take steps to optimize workflows and deliver value. As shown in the example of Toyota, an effective way to do this is limiting and controlling Work in Process in the automotive industry. Control of WIP lets teams work faster, deliver higher quality and enjoy a healthier work environment.

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Implementing Kanban Boards as Part of the Lean Methodology https://6sigma.com/implementing-kanban-boards-as-part-of-the-lean-methodology/ https://6sigma.com/implementing-kanban-boards-as-part-of-the-lean-methodology/#respond Mon, 06 Mar 2017 01:32:01 +0000 https://opexlearning.com/resources/?p=22351 kanban boardImplementing Kanban Boards as Part of the Lean Methodology

When looking at a methodology like Lean, there is philosophy and values that describe the methodology as a whole, and there are a number of tools that help with more practical issues.

One of the central tools that are […]

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kanban boardImplementing Kanban Boards as Part of the Lean Methodology

When looking at a methodology like Lean, there is philosophy and values that describe the methodology as a whole, and there are a number of tools that help with more practical issues.

One of the central tools that are used as part of the Lean methodology that can be particularly effective is Kanban, and more specifically Kanban boards.

What are Kanban boards?

Kanban boards are a visualization tool that deals with work that needs to be done within a workflow, which helps with flow optimization. A Kanban board is an interactive table where each column represents a step in the workflow, where the tasks start on the left and gradually progress through to the right until it is complete.

A physical implementation of a Kanban board is usually a whiteboard with the columns written permanently and the tasks written on sticky notes, so it’s easy to move from column to column, so the progress is visually clear and tangible. Most of the time, sticky notes of multiple colors are used, with each color signifying a different type of task. The most basic example of a Kanban board is a simple three-step workflow with the columns being To do’, Doing’ and Done’. In such an implementation, often the number of tasks allowed in the Doing’ section is limited (usually 3) which helps with prioritization, minimizes the number of tasks at a time (inventory), and helps with proper allocation of resources.

Courtesy of Marketergizmo.com
Courtesy of Marketergizmo.com

Additionally, besides physical whiteboards, an organization might also use software to make the boards virtual. This allows for larger teams to share the board more efficiently, and for workers or teams that are not at the same physical location to collaborate and coordinate their efforts. Most of the time, Kanban boards are more complex than the basic three-step example given above, and the specialized software allows for a higher level of complexity (without making things too messy), while keeping the visual effectiveness of the tool.

A Kanban board is a tool based on a very simple concept, which makes it both easy to understand, and easy to get started. Despite its simplicity, it can be difficult to maintain the board over time, which is where things break down. If you are just starting out, use the physical kanban board before moving to the electronic version, so that you really learn the methodology and discipline.

Benefits of using Kanban boards

Effective visualization

Clear project visualization helps team members be more effective. As humans are creatures that favor visual stimuli, a Kanban boards makes all the project vital data instantly accessible to everyone, and a lot of information can be understood in a single glance. This means that everybody involved in a task can clearly see the context of their own work, and this helps people to strive towards goals that would be beneficial to the project as a whole (not just individual workers completing their own tasks). One of the most common questions the board answers is whether anyone is working on a given task right now, and who is assigned to that task.

Impediments and waste become easier to identify

When the whole process is visualized and the progress of each task can be clearly understood and visualized at any given moment, anything that is not on track is easy to identify. This allows the management and other team members to help out the individual who is behind, so that the project or workflow can move forward. Usually another team member can offload a task from another person who is behind, or can assist the individual with that task, to help them get unstuck. It drives a collaborative environment, where the customer is the focus.

When tasks are completed, there is an opportunity to reflect on how well the task was completed (speed and quality), and identify opportunities to improve the process for next time.

Communication is facilitated

As Kanban boards are very easy to understand and implement, they are an effective tool for bolstering the communication and collaboration in any team. Kanban boards present a lot of information in a very clear way, which allows information about the project to flow freely inside the organization. This eliminates a lot of the most tedious type of communication which allows team member to direct their communication efforts towards more meaningful issues. Kanban boards also free up a lot of time for the managers, because they don’t need to constantly ask for status updates.

Increased productivity

Due to all the benefits of implementing Kanban boards listed above, they allow for the team to reach higher productivity with less waste, which is the main goal of the Lean methodology.

Have you used a kanban board within your organization, or do you have a personal kanban board for your work? Leave a comment below…

Looking for info about Kanban cards? Download a free kanban card template >>>

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