Productivity and LEAN development programs
Productivity can be considered as the profound profile of Archamonde Group.
Productivity as such can be defined in every business environment as a certain output / input ratio, thus it is needless to state that in every industry (including service providers) there is a productivity dimension to take care of.
Though, it is important to declare that when we mention productivity we does not mean to better resource’s price (e.g. cost efficiency) but to improve the resource utilization ratio measured in natural units (kg, pieces, hours, etc.) through better resource control. The most known resource control concept of recent days is LEAN without any doubt (just think about the real meaning of the word LEAN which means a kind of slimness: to be slim in resource consumption). The resource control concept of LEAN is based on the universal unit of measurement: lost time. Measuring every waste (Muda) in time dimensions provides the basic mentality of seeking always the lack (from perfection), thus keeping the people busy to continuously improve everything. As a consequence, LEAD time is always in LEAN improvement’s focus because it incorporates every waste types. The shorter the LEAD time the better the resource utilization – says the LEAN.
The LEAN (productivity) system
The essence of LEAN management systems is to enhance the ratio of value added time within operational LEAD time through CIP culture which is about to gradually eliminate or transform every non-value added activities into value-added ones. LEAN is being applied nowadays in every possible business industries even in banks, in insurance, in retail or in healthcare institutions. LEAN can mean a considerable important competitive advantage due to its always thriving problem solving attitude to improve every business process of the organization.
LEAN = CHANGE MANAGEMENT
LEAN implementation is obviously means a relevant change management program could be lasting for years or even decades. Most of the companies worldwide have already started the LEAN adventure, but could not pass over some LEAN elements’ technical implementation. There are even such organizations which are implemented every LEAN system elements but still do not get the expected results. Why is that?
What is behind the LEAN failure? – The problem of dehumanized systems
What is the root cause behind many unsuccessful LEAN implementation? What is the reason of even good technical application of LEAN systems do not end in financial results. The answer lies in the so called dehumanized system problem which means LEAN are usually considered as an engineering challenge and do not take into consideration the human side of a change. The original fundament of LEAN is forgotten: that LEAN is basically human faced.
Archamonde’s answer: the human faced LEAN management system
Implementing humanized managements system means in 80% of tactical work and only in 20% of technical task. This implies to the fact that systems have to be understood by the people who actually operate those systems. These peoples must cooperate and must be well trained form the system. In accordance with system utilization good metrics has to be worked out where the associates can embrace the goals, which thus become collective goals. Based on that the System of Mutual Responsibility can be established which then can be manifested in an inspirative working environment.
LEAN matrix of Archamonde:
The LEAN implementation of Archamonde may include any of elements of the matrix, based on the Client’s demand. We are able to get involve into the process at any phase of the three-phase LEAN implementation that is even into the development of the system elements, or into the deepening of the result oriented system utilization. The bases of the LEAN is the full control of the value stream, and Archamonde – if we are from the beginning of development process there – combine the LEAN system elements with comprehensive tracking roll of management system. We form of the element of the system audit, and the system utilization audit, through them we start to measure the usefulness of the systems and the connecting processes.
Tree phased approach:
You can see, that one of the biggest challenge of the human faced LEAN is, how is possible to make “optimal” “Trade-off” solution to achieve a kind of balance in a very contradictory target system, namely inside of the delivery, quality, and cost targets which one should be choose for optimization. The problem is, that the restricted quality can cause productivity losses, but at the same time, the high delivery accuracy causes a too strong voice of the Client, etc.
Why is not enough an internal LEAN Engineer or Engineering group?
Based on our experiences for ages, the technological engineering dimension itself is not enough for a whole LEAN system implementation, since such a huge system implementation requires behavior changes of many people as well. As it was mentioned already, the LEAN implementation is a change management, where only 20% of the work is technical, but 80% is poor tactical issues. So even if there is a very precise planned system, the results are not generating automatically. Our opinion is, in addition to the engineering work, the utilization level of the system should grow up to complexity of the system. To this, should a human behavior change happen, which together with the system can result a high level system utilization. If this takes place disproportionately, even if there is a well thought out tool, it is useless if the use is not correct, and that’s why, the results will not show up in the system.
What can do for a successful LEAN implementation?
The utilization of the system should train to the people by who understand and comprehend the wholeness of the system, and its connection with other systems and who can see the internal relationships within LEAN and technically perfectly able to explain all the reason of the system elements. Many times neither a training company nor an internal training department is not enough for this, due to their lack of understanding of the system. This kind of training needs to be done by LEAN Productivity specialists, who experienced in the required management behavior changing methods.
Based on the goals, there need to create an “expectation vacuum,” and to this, the right level executives have to roll down the goals, make a harmony between the goals, develop the motivation for the project, and develop a review and workshop system based on the goals. There is absolutely necessary an inner hardihood in the management.
There has develop system utilization check lists to measure the level of the system utilization, should evaluate the results frequently.
Based on the “PULL” method, there need to build an evolution and problem escalation system. The old style meetings are not inappropriate to evaluate the performances, so should change them.
Archamonde has all the necessary organizational development tools, and widespread LEAN knowledge for the right way implementation.
A very serious obstacle of the right utilization of the LEAN system is an uncontrolled factor, namely the LEAN is always look for the missing performance, and the reason of it, and push to assign a responsible for the minimization or the elimination of this variances. The fact, that the LEAN system is always looking for reason of the losses, and continually develops new standards to eliminate this, can raise a resistant in the organization, because the permanent loss evaluation can cause a feeling of failure to the people.
To manage this needs experience, and Archamonde uses organizational development tools, trainings, and integral workshops for the preparation of the system’s users to raise above the mentioned problem.
The human resources, the technology and the system itself are in a harmonic flow with each other in a right way implemented LEAN system. The key words of the system are: standardization, continuous improvement, and a very loss minimization. The standardization should working in the process development and the consistent system element utilization.
LEAN development in autonomous working team:
Nowadays the highest level of the LEAN system development method is, working in an autonomous working team. The involved people in the working team have a very wide independency. There is lot of challenges in front of the system of working group, expect a very high level awareness of the whole organization and the management. In many cases such a project may fail.
This is the real challenge of the LEAN: a development based on the self-critique and self-knowledge.
The type of the LEAN business services of Archamonde:
- LEAN training program: this is a general basic or advanced training about LEAN management system for supervisors, mid and upper management. This program lasts for couple of days, which can be either contiguous or on weekly bases, 2-3 hours per week. Prior to the planning of the training program, there is a need analysis to make sure that the training materials will be tailor made for the organization.
- LEAN Champion training: this is a very practical program, the final result is, a real case study, and the participants develop and present an implementation plan for the upper management. This program lasts for 3-5 days – depends on the size of the case study – with a very intensive work by the participants, 6-8 hours per day.
- Targeted themed workshops, Kaizen events on the shop floor with the involvement of the workers and the supervisors (for example 5S). There is always a very concrete target of the workshop or the events, and the affected area is very well defined. (For example production line, or assembly cell) Such an event usually takes 3-6 hours
- Rapid LEAN analysis and consultancy: this is a 2-3 days long, technical based system analysis. The target of the analysis is to make a diagnosis about the system, to uncover the problems of the system, and this analysis can be the base of future LEAN implementation. After the analysis there will submit a project proposal by Archamonde.
- Full LEAN analysis and consultancy: this is a complex, comprehensive management system and company culture analysis. The target of the analysis is to make a detailed and full diagnoses about the organization. This is not just a technical system analysis (KPI’s, material management, production and other processes, etc.) but it includes a comprehensive cultural study. This is a complex approach including all organizational dimensions. After the analysis there will submit a project proposal by Archamonde.
- LEAN performance management program: this is a special cooperation focus on the improvement of a given KPI (For example: OTD, OEE, scrap, PPM, cycle time, etc.). Such a project is relating to a very concrete problem of the organization, assigned by the Client. The improvement is always measurable. The project proposal is very tailor made for the Client.
- LEAN development in autonomous working group: This is a special program focus on the establishment of the problem solving culture, put effort onto the development of the people. There are establish working groups for the main topics have an affect to the performance of the organization, such as 5S, planning, OEE, productivity, etc.) This is a long term cooperation between the Client and Archamonde, support by a continuous training and coaching.
- Full range LEAN implementation project: This is a complex change management program, based on a very detailed analysis, and the target of the project is, an comprehensive implementation of the LEAN management system. This is a very intensive cooperation, our consultants are deeply involving into the process. Prior to such a project proposal is always a full LEAN analysis.
Let’s build up together a well-developed and understood LEAN system for increasing the profitability level.