Sunday 13 August 2023

Simplifying to Soar Minimalism

 "Simplicity is the ultimate sophistication - the essence of 'Sort.'"


This Saying, often attributed to Leonardo da Vinci, Concludes a profound truth that impacts across various aspects of humans who try very hard. When applied with respect to Lean manufacturing and the 'Sort' principle, it holds a remarkable insight into the heart of efficiency and effectiveness.


At first glance, simplicity might be misunderstood as mere minimalism or reductionism. However, under this seemingly straightforward concept lies a depth of wisdom that aligns perfectly with the essence of 'Sort', one of the fundamental beliefs of Lean manufacturing.


In the context of 'Sort,' the act of simplification is transformative. It involves the deliberate removal of clutter, excess, and unnecessary elements from the workplace. This is not about mere tidying up, but a profound restructuring that reflects a fundamental truth – that efficiency improves exponentially in simplicity. When an environment is taken off of non-essential items, distractions, and complications, a path is cleared for optimised workflows, streamlined processes, and heightened focus.


Imagine a factory floor cluttered with tools, materials, and equipment. This chaotic landscape not only makes it difficult for productivity but also stops the potential for improvement. Every tool that's out of place, every unwanted material, and every unutilized machine forms a barrier to progress. 'Sort' is the solution to this chaos. It supports a thoughtful evaluation of each item's value and purpose. By retaining only what is truly necessary and eliminating what is not required, a transformation occurs.


In this context, 'Sort' becomes a method of achieving simplicity, not for its own sake, but as a means to sophistication in operations. The saying strongly believes that "simplicity is the ultimate sophistication" becomes clear. A simplified workspace is a sophisticated one, as it represents a carefully curated ecosystem where every tool serves a purpose, every material has a role, and every process contributes to the bigger picture.


Furthermore, 'Sort' is not just a one-time activity. It's an ongoing commitment to maintaining simplicity and preventing the re-accumulation of clutter. This echoes the saying's assertion of "the essence of 'Sort,'" reminding us that the core of 'Sort' is not a one time event but a continuous action of sophistication through simplicity.


The correlation between simplicity and effectiveness also extends to the psychology of the workforce. A simplified environment is not just aesthetically satisfying, it's mentally soothing. It reduces the unwanted  load on employees, allowing them to focus on their tasks with enhanced clarity. Simplicity improves a sense of order, control, and purpose. This psychological impact enhances deeply with the principles of Lean, which aim to empower and engage the workforce.


In conclusion, the saying "Simplicity is the ultimate sophistication - the essence of 'Sort'" beautifully explains the profound connection between the principle of 'Sort' in Lean manufacturing and the wisdom of simplicity. By sorting through the clutter and embracing simplicity, a sophisticated level of efficiency, focus, and organisation is attained. This philosophy reflects the heart of Lean thinking – that by improving operations to their essence, we understand a sophistication that propels us toward operational excellence.



For those who would like to implement 5'S 

Please click below Link.

Best Way To Implement 5S



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journey Continue ……………



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Saturday 5 August 2023

 Lean 5S journey a Practical Approach

 

Once Upon A Time In The developing city of Vadodara in Gujarat India. There was a factory that had been operating for generations. The factory was producing different types of plastic components of small and bigger sizes from the complex types of machinery. And this factory was Renowned for its quality and efficiency. Yet the factory owner Mr. Ram knew that he can do even better. He had heard about the philosophy of lean manufacturing and its potential to transform the way his factory operated through his business coach Mr.Raj. He was determined to embrace this new approach, so Mr. Ram ventured into the journey to discover the secrets of lean manufacturing, starting with its fundamental principle the 5’S to start his improvement journey under the guidance of his business coach Mr.Raj.

1.       The Awakening:- One morning while visiting the factory he observed the clutter, inefficiencies, and wasted time, he noticed that the operators are busy searching for tools tripping over materials, and struggling to maintain a clean and organized workplace. That's when he realized the need for change. He decided to discuss with the President and factory manager and shared his vision of becoming a lean Enterprise to be competitive in the marketplace.

2.       Sorting. :- The first "S" of Lean Manufacturing was sorting.  Mr. Ram knew that they had to eliminate anything that didn't add value to their production process. So the team started the Grand sorting process of a cell (One zone of the Factory), they precisely evaluated each item in the factory, deciding what was essential and what was not. The unused machines or parts were removed, obsolete tools were discarded, and excessive inventory was reduced the factory transformed into a well-organized clatter-free environment with more free space than the existing one.

3.       Set in Order: - Once the unnecessary items were removed then it was time for the second “S” Set in Order.  Mr. Ram and his team knew that an organized workplace would boost efficiency and productivity. They redesigned the factory layout, placing the most frequently used tools and equipment within its easy reach, color-coded labels for every item in the factory. Mr. Ram and his team marked the shining Pathways, and aisles and guided the operators to their workstations through the visual management tools.

This reduced confusion and saved time to perform the operations. Every item had a designated place, and each and every operator knew where to find what they needed.

4.       Shine: - The third “S” Shine stressed the importance of cleanliness and maintenance of the equipment. This team implemented a comprehensive cleaning routine. The operators started to take Pride and keep their workstations Spotless, which not only improved morale but also revealed potential defects or maintenance issues early on. Regular equipment maintenance reduced breakdowns of the tools and machines in the factory. The clean and well-organized machines lead to smoother operations and a safer working environment. This has attracted new Customers on board due to its visual appeal.

5.       Standardize: - As the factory begins to see significant improvements. Mr. Ram was eager to ensure that the changes would be sustained in the long run. Hence he has discussed this issue with his business coach Mr.Raj and made the plan accordingly. The 4th “S” Standardize was the key to achieving this. The standard operating procedure (SOPs) were made for each task, for creating a consistent approach to work. All the employees were trained to follow these procedures and work instructions diligently. It allowed for seamless collaboration between teams, as every employee knew what was expected from them, hence the process become more predictable to achieve the desired results.

6.       Sustain: - However Mr. Ram and his team knew that even the most remarkable changes could slowly fade away without the fifth “S” Sustain. The team had recognized that they need for continuous improvement. They established a culture of continuous learning, where employees were encouraged to share their ideas and suggestions freely at regular intervals. Daily work management meetings (DWM) and performance review meetings were held to identify areas of improvement. Now this factory become a place where innovation and improvement were celebrated, and everyone in the organization started taking ownership of making things better.


Success and beyond: - The time had passed and the factory underwent a complete transformation. The Productivity improved, Quality improved, defects decreased, Inventory reduced, lead time reduced significantly, and the news of the factory's success sprayed throughout the industrial area that got attention from other businesses and media houses. To adopt the lean principles.

 

Mr. Ram and his business coach Mr.Raj become a respected figure in the industrial area. They had started sharing their experience and insights with other industrial associations. And the ripple effect of Lean manufacturing extended beyond his factory transferring the entire City into a hub of efficiency and excellence.

In the end, the story of the factory in the industrial area became the testimonial (sample) to the power of Lean Manufacturing’s 5’S principles. By implementation of Sort, Set in Order, Shine, Standardization, and Sustenance. Mr. Ram and his team had demonstrated the true potential for the culture of continuous improvement in their factory, which would keep them driving for generations to come.

And so, the journey to Lean manufacturing continued, inspiring businesses far and wide to embark on their Quest for excellence.


 Journey Continue ……………

For those who would like to read my book on 5S.

Best Way to Implement 5S 



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Sunday 9 February 2020

Cost of Poor Quality




Let’s Discuss quality first before going for Cost of Poor quality.  

What are the advantages of superior quality?
·       Superior performance and competitive advantage.
·         Customer relations and delight
·         To avoid a decline in work ethics
·         Innovation in our products and services
·         Forever personal and spiritual well being
·         To increase our ability to manage change for energizing committed workforce
·         To expand boundaries of business


The following are the various dimensions of quality.

·         Performance
·         Features
·         Reliability
·         Serviceability
·         Durability
·         Appearance
·         Customer service
·          And safety

Quality definition and concept by the Quality Gurus.


W. Edwards Deming
Good quality means a predictable degree of uniformity and dependability with a quality standard suited to the customer.
Notable Book: Out of Crisis


Joseph M Juran
Fit for purpose. A quality process or product is fit for its purpose, if the purpose of an aircraft is to be fast, efficient, comfortable and safe then that's the definition of a quality aircraft.


Philip b Crosby
·         Conformance to requirements
·         Notable book: Quality is free
·         Working from requirements, it is easy to validate conformance and identify non-conformance.
·       The problem with this definition is that requirements may offer a Biased and subjective view of quality in many cases requirements represent little more than the ideas of business stakeholders. There’s often no objective validation that these ideas will be yield a quality result.



Kaoru Ishikawa
To practice quality control is to develop, design, produce and service a quality product which is most economical, most useful and always satisfactory to the consumer.
                                    

Armand V. Feigenbaum
·   Total quality control is an effective system for integrating the quality development, quality maintenance, and quality improvement efforts of the various groups in an organization.
·       “Hidden plant” or a Hidden Factory, so much extra work is performed in correcting mistakes.
·        Accountability for quality: because the quality is everybody’s job, it may become Nobody's job.
·       The concept of quality costs.

Genichi Taguchi

·       Deviation from the target is a loss.
·      Quality loss as: “The loss imparted to society from the time product is shipped’, and this related the loss to society as a whole.
·      It included both company costs such as reworking, scraping and maintenance, and any loss to the customer through poor product performance and lowered reliability.

American Society for Quality(ASQ)
Quality denotes excellence in goods and services, especially to the degree they conform to requirements and satisfy customers.

Three key elements of quality
(influence a product or service's ability to satisfy customer needs)

·      Quality of design: a product needs to be designed to satisfy customer needs.
·     Quality of conformance: closeness with which the finished product or supplied service matches the specification of the original design.
·   Quality of Reliability: the ability of the finished product to provide trouble-free performance field, over an acceptable time period.




Quality costs are divided into two categories.
A.  cost of conformance
·         prevention costs
·         appraisal cost

B cost of non-conformance
·         internal failure costs
·         external failure costs

Quality costs which are difficult to quantify
·         loss of customer goodwill
·         low company profile
·         reduction in market share
·         Low workplace/ employee morale


A.   cost of conformance
                                                    

Prevention costs
v  Job- related training for employees.
v  Customer interface to understand expectations.
v  Technical manuals
v  Early approval of product specifications
v  Computer-aided design CAD
v  Post-mortems
v  Modelling, simulation
v  Quality planning
v  Preventive maintenance of equipment
v  Quality systems, procedures, and Standards
v  Pilot production runs
v  Reviews- design, process, specifications, packaging, delivery schedules
v  Selection- right man- right job
v  Surveys to detect changes in customer expectations
v  Process /Machine Capability Studies
v  Budgeting
v  Job descriptions
v  Quality motivational programs



Appraisal costs

§  Incoming inspection
§  In-process inspection
§  Final inspection
§  Process control activities
§  Calibration of equipment to evaluate the quality
§  Quality systems audits
§  Product audits
§  Training of quality assurance personnel
§  Life testing, burn-in, stress analysis
§  Operating expenditure review
§  Verifying workmanship standards
§  Invoicing review
§  Accumulation of cost data
§  Production rate review
§  Personal appearance
§  Safety
                                        

B cost of non-conformance

Internal failure costs
·         Rejection of parts in the process
·         Sudden breakdowns
·         Oil spillage, parts dropping on the shop floor
·         Sorting activities
·         Rework
·         Over time because of problems
·         Scrap
·         Downgrading of a product
·         Inspection activities
·         Troubleshooting
·         Wrongly protest products
·         Products not delivered on an agreed time
·         Salvaging defective materials
·         Excess inventory
·         Line stopping due to parts shortage
·         Trips to suppliers to resolve problems
·         Accidents, injuries, fires, thefts
·         Unplanned absenteeism, late coming
·         Re-doing, retyping
·         Billing errors
·         Waiting costs (meetings not starting on time)
·         Personal turnover
·         Efforts to fix the blame
·        Time spent for follow up (missed schedule)
·         Disclosure of company secrets
·         Making reports which are not used
·         Unused floor space
·         Utilities not needed- lights, compressed air, Burners
·         Poor reports
·         Doing things that don't need to be done


External failure costs
     ·        Field repair center total expenses
  •    Products rejected and returned
  •    Field failures
  •    Field inventory
  •    Product liability suits
  •    Loss of customer goodwill
  •   Damage in transit theft
  •   Poor quality of the product, Re-inspection, retesting, repair
  •   Break down during the warranty
  •   Troubleshooting in the field
  •   Redesign
  •   Training of field personnel
  •   Corrective actions
  •   Travel problems in the field
  •   Warranty expenses




Example of Cost of Quality – Purchasing Function

          Cost of conformance
·         Proper specifications/ drawings to vendors
·         Vendor evaluation review and approval
·         Higher inventory due to difficulty in procurement
·         Incoming inspection
·         Educating vendors to put quality systems in place
·         Training's/ programs/ vendor meet etc.

Cost of non-conformance
·         Purchase order not proper/ rewrite/ amendments
·         Incoming material rejected
·         Excess inventory due to vendor not committed
·         Sorting- rework- Re-inspection
·         Material returns costs
·         Premium on freight
·         Visits to the supplier to solve problems



Our Quality and Profits are Linked?

Yes, 

There is evidence that high performing organizations enjoy both financial success and high ratings of customer satisfaction.


This has been verified by Consultancy surveys, benchmarking exercises, and increasingly, popular forms of self-assessment.


                  Action plans to reduce Cost of Poor Quality
·         Determination and commitment of the management
·         Quality first must be communicated to all employees
·         Quality management in three phases
1.       Quality planning like budgeting in finance
2.      Quality control keeping within budget
3.      Quality improvement make results better than forecast in budget
·         keep the process continual.

Commitments expected from the organizations.
To consistently produce conforming products and provide service at optimum costs.
Quality is conformance to requirements, not just good.
The requirements are often measurable.
The system of causing quality is prevention; no appraisal.
  

Two flavors of quality potential quality and actual quality

Potential quality is the known maximum possible value added per unit of input.
The actual quality is the current value-added per unit of input.


Quality is a multi-perspective dimension
Business perspective: focus on why, where, and to what extent the Organisation must invest in or exploit quality. Which strategies, products, and services, alliances, acquisitions, or divestments should be considered from a knowledge related point of view?

Management perspective: Focuses on determining, organizing, directing, and monitoring quality-related activities required to achieve the desired business Strategies and objectives.

Hands-on operational perspective: focuses on applying the quality tools/ expertise to two operating systems.


Business functions and Responsibility for Quality

Top management: Top-level support and encouragement of quality airport
quality control: quality assurance plus promotion, coordination, in control of entire quality effort.

Accounting: Measurement of quality costs in quality reports

Research: quality of research- proper design and analysis of experimental data.

Sales and marketing: selling a quality product and providing information on-field performance.

Design engineering: designing a quality product and changing the design to achieve optimum quality condition.

Tool engineering: providing quality tools, Jigs, and Fixtures.

Product engineering: providing a quality production process.

Purchasing: quality of conformance of purchased goods, feedback of quality information.

Manufacturing: quality conformance in manufacturing, semi-finished and finished goods, feedback of quality information.

What are the critical challenges for organizations?

1. Use statistical science in a teamwork environment on how to on Front actual problems.
2. Make product engineering or design engineering responsible for produced quality until production yields have reached an optimum level.
3. Discontinue the wasteful use of SPC free up people and resources to focus on the real problems.
4. Discontinue methods forecast solely on training and, instead, make problem-solving the center of attention.
5. Require a checklist for top management Review that enables though with profit and loss responsibility to correctly evaluate the effectiveness of product quality improvement methods.





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