SAIMAS CONFERENCE 2014 GLENBURN LODGE, MULDERSDRIFT 23 OCTOBER 2014
SAIMAS CONFERENCE 2014
GLENBURN LODGE, MULDERSDRIFT
23 OCTOBER 2014
CREATING A LEAN MANUFACTURING
STRUCTURE IN A SOUTH AFRICAN
ORGANISATION/A SERVICE ENVIRONMENT
DAVID KRUGER
WHAT IS LEAN MANUFACTURING?
OVERVIEW
• INTRODUCTION
• BACKGROUND
• METHODOLOGY
• LITERATURE REVIEW
Workforce support
Communication
Lean Manufacturing Methodology
Lean Manufacturing Passion
Gainful LM Execution
• RESULTS AND CONCLUSIONS
KNOW WHAT TO DO
INTRODUCTION
• Regardless business sphere, concentrate on
speed, efficiency and the customer
• Organisations want to be prosperous and
therefore seen LM as a magic bullet
• In some instances it was successful
• Proven benefits through research identified as
increased yield per employee, increased
productivity and decline in WIP
• Originally propagated in the motor industry
INTRODUCTION (CONT)
• Other sectors of manufacturing and service industry seen
advantages
• Increase value added actions and elimination of non value adding
actions
• Achieved through the elimination of seven wastes
• Similar to other improvement methodologies, LM did not succeed
universally
• Many reasons can be put forward for failures
• Various and varied variables influence success of LM
• Most common identified as executive backing, unambiguous
communication links and deficiencies in LM execution
INTRODUCTION (CONT)
• Before LM execution following questions need to be
answered:
What are the fundamental actions obligatory to be
concluded prior to execution of specific LM basics?
What is the gradual modus operandi of LM execution?
What is the order of executing numerous doctrines,
procedures, tools and practices also called basics of
LM?
Various reasons for failure such as exploiting incorrect LM
tools, exploiting a single tool only, exploiting every known
LM tool for every single problem area
INTRODUCTION (CONT)
• The above actions leads to mistrust of LM methodology
by staff members
• Leads to squandering of vital scares resources
• It become imperative to have a well thought through LM
schema in execution of LM
• Above found through interviews at the researched
organisation
• Paper investigates how the LM execution in researched
organisation were influenced by communication or lack
thereof
• Study empirically confirmed necessity of proper
procedures
BACKGROUND
• Researched organisation a large manufacturing concern
• Situated in Johannesburg in Gauteng Province of South
Africa
• The organisation came into being through an
amalgamation of three competitive organisations
• Each had their own unique operating methods
• Shortly after amalgamation bought by overseas
organisation
• Parent organisation compelled the new organisation to
perform to the rigorous standards set by the parent
• Top executives obsessed about number of lean actions
BACKGROUND (CONT)
• Seen execution as a short term process instead of long
term as it should be
• Senior management unwavering in believe LM is a
single response to cure all their current problems
experienced
• Workforce were negative towards LM in the extreme
• Seen it before and it did not work then and why should it
work this time around.
• Labour sees it a highly intrusive methodology
• Seen as a tool to be utilised in downsizing the workforce
METHODOLOGY
• Case studies or Action research ideally suited to investigate real life
impasses
• Five themes documented endorsing this type of research:
Acquaintance contradictions is exhibited in recent LM research
Lucid rationale as to the significance of the research must be
existent
The classification of ontological and epistemological topics
Reflect on punctilious systems and approaches for evidence
compilation and scrutinising is essential. Through contemplation vis-
a-vis the subject matter soundness, trustworthiness and
triangulation in addition to the veracity of the research and
theoretical conviction in theory must exist
Clarify whether methodology utilised is appropriate
LITERATURE REVIEW
A - WORKFORCE SUPPORT:
• Include both senior management and labour
• Research concur that a dedicated workforce
prerequisite for successful LM execution
• Diversity of LM execution allow workforce to exploit their
competences.
• If not dedicated will sabotage the LM execution effort
• Therefore lip service to LM execution effort not enough
• If of opinion their effort not appreciated, will become
negative toward the LM execution
LITERATURE REVIEW (CONT)
B – COMMUNICATION:
• Labour’s concerns must be taken cognisance of
• Senior management must understand how it would affect
the LM execution
• Clear communication that LM results is more than
monetary gains – can be less quantifiable
• Without proper communication results might decrease
• Aversion to LM execution will result if neglected
• Successful LM execution demands well-defined
communications up and down the value chain
• Effective and efficient channels must be established
LITERATURE REVIEW (CONT)
C – LEAN MANUFACTURING METHODOLOGY:
• Array of mechanisms and practices facilitating reduction
and eradication of waste wherever it is found
• TPS advanced as one such system utilised for LM
execution – identify three types of waste:
a. Muda- signifying non value adding work
b. Muri – signifying an overburdened production system
c. Mura – Signifying unevenness in production system
• A scientific method of LM execution
• This method is exploited to expose those operations that
cannot meet the production standards
LITERATURE REVIEW (CONT)
• Judged to be a synergetic collection of techniques to
facilitate LM execution grouped under JIT, TQM and
TPM
• Exploited in a combination with an assortment of
effective HR management procedures such as teamwork
and employee empowerment
• Research of opinion that both internal and external
progress must be realised to be successful
• Exploit the tools to identify processes to be improved
• Improvement team may propagate use of a certain tool
that might be wholly inappropriate under circumstances
LITERATURE REVIEW (CONT)
• Regardless of execution technique, the business should
be proficient in:
a. Appreciate what the execution demand from labour
b. Conveying the transformation expected from labour
c. Overseeing its consequences on labour
d. Endure essential transformation in the managerial
configuration and beliefs
• The above can be top up and top down processes – not
suitable for all LM executions
• Most efficient execution system is the top down/bottom
up approach
LITERATURE REVIEW (CONT)
• LM execution may not be achieved if there is:
a. Unsuitable instruction techniques and skill transfers
b. Erroneous focus
c. Deficiency in participation of labour
d. Inappropriate planning
• Short range commitment to the project
• Often labours commitment to the LM execution project is
fragmented
• Lacking appropriate strategic preparation for LM
execution, an emergency may result due to poor
planning of the LM execution
LITERATURE REVIEW (CONT)
D – LEAN MANUFACTURING PASSION:
• Winning LM execution must have effective dimension for
processing of requirements during implementation
• This can be portrayed as a passion for the LM project
• Implementation must be undertaken by a specialist
demonstrating the require passion for the project
• Specialist will constantly speak the vocabulary of LM
particularly wastes transpiring in the system
• Specialists labour on the shop floor to propel the
execution in the right direction
• As a result a seamless equilibrium should be achieved
LITERATURE REVIEW (CONT)
E – GAINFUL LM EXECUTION:
i. Questioning and Problem-Solving:
• Most important step is genchi genbutsu or visit the shop
floor
• Observe what is happening – unlike most managerial
practices, LM happens at shop floor level
• Most work takes place on the shop floor – biased
towards practical solutions
• Requires ongoing drive and leadership – take executives
from office to shop floor to experience situation
• Critical to constantly question current practices
LITERATURE REVIEW (CONT)
• Implementation team should ask following questions:
a. Why did we not go further down this line of thinking?
b. Where are we going to duplicate these findings?
c. When are we coming back to this area to further
improve it?
• Understanding reasons for not accepting anything other
than 100% implementation is important
• LM leaders far more focussed on problem solving than
average employees
• LM execution requires rapid action to improve ailing
processes
LITERATURE REVIEW (CONT)
ii Rigorous Problem-Solving and Hypothesis Testing:
• Forms nucleus of the LM methodology
• Implementer challenges with realistic application, he/she
should not accept first available solution
Iii Mind-set change:
• Many failed implementations occur due to
misinterpretation of expectations
• Many times no prolonged shop floor gains achieved
• Achievable gains only from insight into problems
• Therefore implementer should not be from executives
• Should be seen as guiding principles not a course
RESULTS AND CONCLUSIONS
• Paper advocating an execution strategy or roadmap for
an effective LM execution at a South African concern.
• Primary concern of the LM execution archetype is
elimination of improvident activities and establishing
customer value.
• An exemplar or roadmap is indispensable to afford
sequencing for altering a concern from not being lean to
realizing a position of lean
• The advocated roadmap governs the methods and
procedures to be exploited in attaining lean status. It is
established from the existing status incorporating the
category of industry of the researched concern
RESULTS AND CONCLUSIONS (CONT)
• The significance of communications vis-à-vis the objectives and
accomplishments realized was investigated too
• The paper ascertained social and procedural fundamentals affecting
a LM execution plan. It comprised fundamentals such as workforce
devotion, communications, executive devotion and mind-set change
• The bulk of the evidence associated with the adverse effect of
executive devotion, encompasses the implementation process
• Complications ensued since the executives did not expect labour
involvement
• The perception persevered that the LM execution endeavour was a
subterfuge in finalizing workforce lay-off
• The executives were ineffective in affording reliable training
programmes accessible to all staff members
RESULTS AND CONCLUSIONS (CONT)
• Executive contribution regarding LM execution assisted in freeing up
communication channels with the workforce
• The research suggested the inadequate communications were not
eliminated entirely
• Corroboration of inadequate communication was accredited to
inadequacies of executive patronage
• The methodology would reinforce the fundamental relationships
amongst the variables and LM execution
• Regrettably, executives do not appreciate that numerous variables
impact on a successful or failed LM execution
• Senior executives judges LM to be a knowledge base executable
everywhere and on every occasion
• Regrettably, that is not true
RESULTS AND CONCLUSIONS (CONT)
• The LM execution journey is frequently demanding and
fraught with difficulties
• It nonetheless affords numerous demonstrated gains,
substantial and unquantifiable
• The results and conclusions in the paper are centres on
an empirical examination of a South African
manufacturing organisation’s fabrication plant
• The projected aspiration of the schema is guaranteeing
the organisation develop into a principal exponent in
provisos of efficiency, problem solving, continuous
improvement and flexible production
RESULTS AND CONCLUSIONS (CONT)
• The schema compels the endeavour in the direction
which the concern refers to as performance ascendancy
in the course of lean execution
• The schema directed by the beliefs of continuous
improvement and standardized work methods
• The beliefs have its foundation in the principal processes
to be enhanced
• It illustrates the commitment of the senior executive team
to lean and a successful execution of lean projects
• The schema is exploited as an suggestion of the
departure point for each individual execution project