lean manufacturing

The Power of Lean: How Leadership Transformation Elevates Company Performance

Posted on by Adam Payne

By now, you’ve probably heard about Lean. It’s a powerful approach to management, which has its roots in manufacturing, but is used by many companies large and small to improve their processes and products.

As its name suggests, Lean is about eliminating waste — anything that doesn’t directly add value to the customer. This includes waste in time (waiting), materials (overproduction), money (overhead) and energy (people working on the wrong things).

Lean is a journey — not just a set of tools or tactics — and it takes time to become effective. But it can transform how you manage your people — giving you more time for important activities like coaching and developing your people so they can do their jobs better.

The Lean Leadership Journey

The journey to a Lean organisation is not an easy one. It requires a holistic approach and a complete mindset change. It takes time, effort and dedication to make the transformation successful. And it’s never over!

The following are some of the steps that you can take to start your journey toward becoming a Lean organisation:

Get everyone involved in the process. The Lean Transformation cannot be achieved through top-down management alone. The leader must work closely with employees at all levels to implement changes that will make the organisation more effective and efficient. Employees need to understand how they fit into this process, so that they can contribute effectively.

Set goals for improvement and measure progress toward those goals regularly. One of the primary reasons for implementing Lean practices is to improve business performance and increase efficiency, but measuring results will tell us if we’re moving in the right direction or not. We need to be measuring against specific goals set out at the beginning of the process (or before it began). This also helps us identify areas which need improvement as well as areas where we’re excelling.

The Lean Leaders Standard Work

Lean leadership Standard Work is a system that encourages continuous improvement and provides a framework for facilitating change. It requires leaders to focus on their actions, behaviours, and tools in order to drive continuous improvement in their organisation. This Lean Leadership Standard Work can be applied to managers, supervisors, directors, and executives alike.

Lean Leadership Standard Work encourages and promotes employees in organisations to reduce variation and improve performance. It also develops team members by demonstrating how to make smart changes and support people by defining what they should do when they take action.

Lean Leadership Standard Work can include:

  • Develop process standards alongside the process operators
  • Observing processes in action (Gemba Walks)
  • Asking 5 Why questions
  • Identifying gaps between standard & actual work (Audit)
  • Supporting process improvement
  • Coach and Mentoring Employees
  • Empowering Accountability and Responsibility
  • Deploying strategy

Lean Thinking as Leader

Lean Thinking as a Leader is about management that encourages you to make the most of your team and organisation. It is about creating an environment where people feel comfortable thinking “outside the box,” and where ideas can be considered, implemented, and monitored so that adjustments can be made quickly.

It requires leaders to be open-minded and encourages them to listen carefully to their team members’ ideas and suggestions. It also encourages leaders to collaborate with their teams in order to come up with better solutions for problems or issues. When everyone feels like they’re part of something bigger than themselves, they’ll be more likely to work hard toward achieving success in whatever it is they’ve been tasked with accomplishing.

The Lean Leader as a Teacher

A key concept in Lean is that people learn best by doing. Leaders must therefore create an environment where learning can happen, by encouraging employees to take on projects and responsibilities that stretch them, while also providing coaching and feedback along the way. The goal, according to Masaaki Imai (the author of Kaizen), is to help each employee become “Kaizen conscious, developing skills and tools for problem solving” — and this requires a great deal of effort on the part of managers in order to ensure that all employees are given opportunities to learn, grow and improve within their roles at work.

Eliminating waste is a key Lean Leadership Principle

Waste can be defined as anything that does not add value to the product or service being created. Waste occurs in all processes and can be categorised into three types of wasteful actions that negatively impact workflow, productivity and ultimately, customer satisfaction.

  1. Muda (or non-value-added work). These are activities that do not add any value to the end product or service, such as, Overproduction, Inventory, Defects, Motion, Over-processing, Waiting, Transportation.
  2. Muri (or overburden). This is when workers are asked to do more than they can handle efficiently, safely, or ethically.
  3. Mura (or unevenness). This occurs when there are unexpected fluctuations in demand for products or services due to things like seasonal change or competitor activity.

Waste takes time and resources to create, so eliminating it saves time and money.

Lean Leaders Put Customers First

Lean leaders are customer focused. They don’t waste time or money on anything that doesn’t directly improve the customer experience, and they know that this is the best way to grow their business.

This means that lean leaders put their customers’ needs first by:

  1. Listening to their customers and understanding their challenges and needs.
  2. Paying attention to what customers think about the product or service, and how they use it.
  3. Identifying areas where they can improve the products or services based on what customers say.

Takeaway: Lean leadership is about learning and improving.

A company benefits from having the right leadership in place, which ultimately helps a business to grow. They’ll learn from your customers, try new things, and challenge you in new ways. They’ll collaborate with others and actively seek outside support. Without good leaders, or without lean principles guiding those leaders, you’re going to get the same results: no learning and therefore no improvement.

Boost your team’s performance and your leadership potential with New Way Growth’s personalised Helping Managers to Succeed and Lead Programme. Let’s shape your leadership success story today!

Mastering Lean Manufacturing: A Guide to Elevating Your Organisation’s Efficiency and Performance

Posted on by Adam Payne

Imagine yourself at the helm of your organisation, ready to take the plunge into the world of Lean Manufacturing. You’ve heard about the benefits and the success stories, and now you’re eager to make it a reality for your company. But where do you begin? Fear not, as you’re about to embark on a transformative journey that will elevate your organisation’s efficiency, productivity, and overall performance.

Here are our thoughts to help you navigate the implementation of Lean Manufacturing within your organisation.

Start with a clear vision: Clearly define your goals and objectives for implementing Lean Manufacturing. Establish a shared understanding among your team members to ensure everyone is working towards the same targets.

Involve your employees: Engage your employees in the process from the beginning. Encourage open communication, listen to their ideas, and empower them to take ownership of the changes. This will foster a sense of commitment and enhance the success of the implementation.

Provide training: Equip your employees with the necessary skills and knowledge to understand and apply Lean Manufacturing principles effectively. Provide ongoing training and support to ensure they are comfortable with the new systems and processes.

Prioritise small, incremental improvements: Focus on making small, incremental changes rather than attempting a complete overhaul of your operations. This will allow you to see immediate results, build momentum, and minimise disruptions to your daily operations.

Monitor and measure progress: Establish key performance indicators (KPIs) to track the success of your Lean Manufacturing implementation. Regularly review and analyse these metrics to identify areas for further improvement and celebrate successes.

Be consistent and persistent: Lean Manufacturing is a long-term commitment. Stay consistent in your efforts and maintain a persistent focus on continuous improvement. This will ensure your organisation reaps the benefits of Lean Manufacturing over time.

Learn from others: Network with other SME manufacturers who have successfully implemented Lean Manufacturing principles. Gain insights, share experiences, and learn from their successes and challenges.

Stay flexible and adaptable: As you implement Lean Manufacturing, be prepared to adapt and modify your approach based on your organisation’s unique needs and circumstances. Stay open to new ideas and be willing to adjust your strategies as needed.

Now, pause for a moment to consider the strides you’ve taken in incorporating Lean Manufacturing into your organisation. Keep in mind that the road to success isn’t linear; rather, it’s an ongoing process of refinement, education, and adaptability.

Face the obstacles head-on, rejoice in your triumphs, and always stay focused on your end goal: to build a streamlined, highly efficient, and thriving organisation. Persistently forge ahead, and you’ll soon discover that the advantages of Lean Manufacturing surpass any challenges encountered on this transformative journey.

If you’re looking for support in taking your organisations efficiency and performance to the next level don’t hesitate to get in touch with us – 0330 311 2820 or email info@tcmuklimited.co.uk

The Role of Innovation in Driving Growth for UK Manufacturers

Posted on by Adam Payne

Small and medium-sized enterprises (SMEs) make up a significant portion of the manufacturing sector in the UK, and they play a crucial role in driving economic growth and job creation. However, with increasing competition and rapidly evolving technologies, it’s becoming more important than ever for SME manufacturers to innovate in order to stay competitive and achieve long-term growth.

Innovation can take many forms, from developing new products and processes to improving existing ones. By embracing innovation, SME manufacturers can unlock new markets, enhance their production capabilities, and create more value for their customers. Here are some key ways in which innovation can help drive growth in SME manufacturers with two approaches discussed in each section:

Product Innovation

Product innovation is a key way for SME manufacturers to differentiate themselves from competitors and capture new markets. This involves developing new products or improving existing ones in response to changing customer needs, market trends, or technological advancements. Product innovation can take many forms, such as improving product performance, adding new features, or developing new product lines.

One approach to product innovation is to engage with customers to understand their needs and pain points. This can involve conducting market research, surveys, or focus groups to identify gaps in the market and areas where innovation is needed. SMEs can also leverage social media and online platforms to gather customer feedback and insights.

Another approach is to invest in research and development (R&D) to develop new technologies or materials that can be used to create innovative products. This can involve collaborating with universities, research institutions, or other companies to access new knowledge and expertise. SMEs can also explore government funding and grants to support their R&D efforts.

Process Innovation

Process innovation involves improving manufacturing processes to increase efficiency, reduce costs, and improve quality. This can be achieved through the adoption of new technologies, automation of processes, or the streamlining of workflows. By implementing process innovation, SMEs can become more agile and responsive to market demands and achieve higher levels of productivity and profitability. (For further reading on process innovation or improvement – click here)

One approach to process innovation is to leverage digital technologies such as artificial intelligence, machine learning, or the internet of things (IoT) to automate processes and enhance decision-making. This can involve implementing smart sensors and devices that can collect and analyse data in real-time, enabling SMEs to optimise their processes and identify opportunities for improvement. (For further information about Digital Technologies check-out 7 Digital Technologies that will Transform Your Factory)

Another approach is to adopt lean manufacturing principles, which refers to eliminating waste from the production process. One way to do this is through continuous improvement programs like Six Sigma or Kaizen. These programs enable you to systematically identify areas for improvement and implement changes.

Business Model Innovation

Business model innovation involves developing new revenue streams or business models that can drive growth and increase profitability. This can involve exploring new markets, developing new distribution channels, or offering new value-added services.

One approach to business model innovation is to develop a subscription-based service that offers customers ongoing value and generates recurring revenue for SMEs. This can involve offering a service that complements existing products or developing a new product that is sold on a subscription basis.

Another approach is to explore online marketplaces or e-commerce platforms to reach new customers and expand the SME’s reach. SMEs can also leverage social media and other digital marketing channels to build brand awareness and generate leads.

Collaborative Innovation

Collaborative innovation involves partnering with other companies, universities, or research institutions to access new ideas, technologies, and resources. This can help SMEs develop breakthrough products or processes that would be difficult to achieve on their own.

One approach to collaborative innovation is to engage in open innovation, which involves collaborating with external partners and crowdsourcing ideas. This can involve setting up innovation challenges or hackathons to encourage the development of new ideas or products.

Another approach is to develop strategic partnerships with other companies or research institutions to access new knowledge or resources. This can involve forming joint ventures or licensing agreements to share expertise and resources.

Open Innovation

Open innovation involves collaborating with external partners and crowdsourcing ideas to accelerate innovation efforts. This can involve engaging with customers, suppliers, or other stakeholders to tap into a broader pool of knowledge and expertise.

One approach to open innovation is to engage in co-creation, which involves collaborating with customers to develop new products or services. This can involve setting up user communities or customer advisory boards to gather feedback and insights.

Another approach is to leverage open innovation platforms or networks to access a wider pool of ideas and resources. SMEs can also participate in industry events or conferences to network with other professionals and share best practices for innovation.

In order to successfully implement open innovation, SMEs should create a culture that values and encourages innovation. This can involve setting up an innovation team or department, providing training and resources for employees to develop their innovation skills, and incentivising and rewarding innovation efforts.

Conclusion

In conclusion, innovation is a critical driver of growth for SME manufacturing businesses in the UK. By adopting an innovation mindset, SMEs can stay ahead of the competition, create more value for their customers, and achieve long-term success. Whether through product innovation, process innovation, business model innovation, collaborative innovation, or open innovation, SMEs have many options to explore and unlock their full potential.

How Can Operations System Design Help Manufacturers?

Posted on by Adam Payne

Operations system design for manufacturers has become a key issue in the manufacturing industry. This is because manufacturers are facing a lot of challenges such as increased competition, decreasing market share, supply chain issues, cost reduction and more.

Operations system design is a process or methodology that can help companies to improve their performance and achieve their objectives by implementing new strategies and processes on how they operate their business. It involves analysing the current performance of your company, identifying areas where improvement could be made and then developing solutions that will increase efficiency and profitability.

Some of the important concepts used in operations system design are the following:

Demand and Capacity Management

The demand and capacity management system are the main engine driving operations. It works by matching product demand with production capacity, which includes both production equipment and labour. The most important aspect of demand and capacity management is how it deals with shortages or excesses.

In a manufacturing environment, demand is often very unpredictable. This means that there are times when the factory needs more workers than normal, but also times when it has an excess of workers on its hands. Demand can also fluctuate depending on seasonality and other factors outside of your control as well as within your control (such as sales promotions).

The first step in creating a robust demand and capacity management system is to understand what drives your business and how this affects your supply chain requirements. For example:

If you’re making products on a seasonal basis, then you need to know when those seasons occur so that you can plan ahead for them.

If you’re planning sales promotions or other marketing initiatives, then you’ll need to know how many people will be needed to support these activities so that they don’t negatively impact production schedules or increase costs unnecessarily.

Planning and Scheduling

Planning and scheduling are the process of determining the activities or tasks to be performed, the sequence or order in which they are to be carried out, and the resources and time required for each.

Scheduling can be done manually or automatically. Scheduling systems can be used in manufacturing, warehousing, distribution, and other areas where work must be performed on a sequence of tasks that must be completed in a specific order. Manufacturing scheduling processes may include:

Multi-process workflow management — Scheduling of multiple processes to optimize resource utilisation and minimise total cost of operation.

Workload forecasting — Forecasting the amount of work that will need to be performed over time, so that sufficient resources can be allocated for production. (See our blog on Sales, Inventory and Operation Planning.)

Shop floor control — Monitoring the actual performance of each machine in the shop floor so that any bottlenecks or other problems can be identified quickly.

Scheduling optimisation — Using mathematical algorithms to find the best possible schedule for a given set of requirements.

(for automation visit FactoryIQ: What is a Manufacturing Execution System)

Operational Excellence in Logistics

Logistics is the management of the flow of goods between the point of origin and the point of consumption in order to meet customer needs. In terms of logistics, a product is a good or service with some utility to the customer. The term logistics comes from the Greek word logistikos, which means “skilled in calculating.”

Logistics involves the integration and synchronisation of all aspects of supply chain management. It includes planning, procurement, inventory control, production planning and control, distribution, packaging, order processing and shipping as well as associated financial services such as bill payment and revenue management.

Logistics is important because it is often an overlooked aspect in a company’s overall success, but it can also be an important part of any business model. A company that has effective logistics operations will be able to provide customers with products that they want at a price they are willing to pay while still making a profit. This allows a company to compete with other companies that may have lower prices or higher quality products but less efficient logistics operations.

Inventory Management

Inventory management is a system of control that determines the optimal location and quantity of inventory needed to minimise the cost of carrying that inventory. Inventory management is often used in conjunction with a Just-In-Time (JIT) or lean manufacturing system, which relies on careful monitoring of inventory levels to ensure that production lines are never interrupted by parts shortages.

Inventory management is usually accomplished through a computerised system, typically using barcode scanning technology to track individual items as they are received from suppliers and shipped out to customers. Inventory management also typically includes some form of point-of-sale (POS) software or hardware, which allows retailers to track sales and determine when sales goals have been met for each item sold.

The goal of inventory management is to reduce excess inventory while still meeting customer demand. These include:

Reducing Inventory Costs: Excess inventory can tie up valuable capital resources and increase carrying costs (i.e., storage space, insurance).

Minimising Out-of-Stock Situations: If a company has too little inventory on hand, it may not be able to meet customer needs. In addition, customers may perceive this as poor service or lack of concern for their needs.

Maximising Profitability: By keeping optimal levels of inventory on hand at all times, companies can reduce costly markdowns or write-offs due to excess stock in slow-moving items.

Process Stability

Process stability is the ability of a process to produce consistent product quality and quantity, on a day-to-day basis. It is a measure of how well the process delivers on its promise to produce the same product each time it is run. A stable process is one that can be relied upon to consistently provide high-quality, low-cost products.

Process stability is important because it affects both customer satisfaction and profitability. If customers are not satisfied with their product or service, they may find another supplier or stop buying altogether. If production costs increase unpredictably, profits will suffer as well.

Process stability also affects productivity levels and capacity planning, making it an important consideration for any manufacturing operation. Lean and Six Sigma methodologies say a big part here.

Process Foundations

A manufacturing operation is a system that transforms the materials and energy resources of the environment into finished goods and services. Manufacturing operations are divided into three main areas: processes, support functions and information technology (IT). Each of these areas has an impact on how efficient and effective your production system can be.

Processes

Processes include all activities that transform raw materials into finished goods or services. The processes themselves may be physical or organizational in nature. Physical processes include material handling, assembly, machining, painting, testing, and packaging. Organisational processes include planning, scheduling, forecasting, and controlling.

Support Functions

Support functions provide products or services to internal or external customers but do not directly produce finished goods or services. They include purchasing; quality; maintenance; engineering; human resources; finance/accounting; EH&S; supply chain management/logistics; information technology (IT); marketing, sales and many more (the complete value chain!).

Information Technology (IT)

Information technology is required to support many of these activities including: process control systems for manufacturing operations such as machine tool controls and robotics; ERP / MRP.

Takeaway: Operations Systems Design enables organisations to optimize the alignment of their processes, resources, people, and information systems.

PS: If you need support with Operations Systems Design or Lean Implementation please do get in contact.

Seven Tips For Being An Effective Lean Leader

Posted on by Adam Payne

Lean Leadership

Lean is about creating a culture of continuous improvement, where everyone—from the CEO to the cleaner—is working together to eliminate waste, cut costs, and improve quality.

Lean is based on a number principles that can be applied at every level. These principles include:

  • Eliminate waste through value stream mapping, one-piece flow and standardised work
  • Reduce cycle time by visualising how things are currently done
  • Standardize everything possible, from processes to parts and equipment used
  • Create pull systems to avoid overproduction (Make-to-Stock vs Make-to-Order)
  • Build Quality In by eliminating defects through prevention instead of inspection (Poka Yoke)
  • Sustain Kaizen (Continuous Improvement)

Focusing on value is your first priority.

The Kaizen Mindset

A kaizen mindset is the basis for lean leadership and practice, which doesn’t always mean continuous improvement.

The idea of continuous improvement is a common misconception. Continuous improvement means that you are constantly trying to improve your processes and products, but it doesn’t mean that you are always making an improvement.

Some people think that they need to be perfect before they can consider themselves “lean” or “continuous improvement leaders.” In reality, lean leadership is about being better than yesterday—and that requires a kaizen mindset.

When you have a kaizen mindset, you’re constantly scanning what’s going on around you, looking for ways to improve: “What can I do right now? What can I do better tomorrow?” It’s not just about coming up with new ideas or projects; it’s also about recognising when something isn’t working as well as it could be and taking steps to get to the root cause and fix it, not just putting a plaster over it!

Leading From The Front, Not The Rear

The traditional command-and-control method of management does not fit within the lean philosophy, but some leaders still struggle to let go of traditional power structures and control mechanisms that don’t serve their people or the organisation very well in today’s working environment.

Some leaders are so accustomed to being the only ones who have access to all the information, they find it difficult to accept that there are times when they need to consult others.

Other leaders are not used to being challenged, so when someone does challenge them, they feel threatened and react poorly, which creates conflict instead of innovation.

Lean leaders know that the only way to truly achieve what they want is by empowering their employees—and by extension, their customers. This also means that you have to empower yourself so that you can lead others effectively.

Identifying Customer Needs For Improved Lean Leadership

Identifying who your customers are and what they value is necessary when you engage in lean and continuous improvement activities.

A good place to start is with a customer-value analysis or voice-of-the-customer. This will help you identify the features and functions that customers truly value, as well as the characteristics that differentiate your product from competitors. In addition to evaluating the needs of current customers, identify potential new customer segments by identifying needs not currently being met by competitors.

Once you have identified certain key features of your product or service, list them in priority order for each of these segments. Then prioritize these features across all segments and compare results—this will allow you to identify potential opportunities for improvement and make sure nothing is left out of your plan.

If possible, involve others from different departments in this process so they can also provide input on how they would rank these factors.

Critical Thinking: Learn To Eliminate Your Problems Forever

It’s easy to get bogged down in the day-to-day grind, and it’s tempting to just focus on what’s right in front of you—especially when there are so many other pressing matters that need attention.

The biggest difference between lean leadership and traditional management is that lean leadership is focused on long-term solutions, while traditional management is focused on short-term results. This means that lean leaders don’t just focus on solving a problem temporarily, but rather they seek out ways to prevent the problem from ever coming up again. This is done by finding the root causes of problems and eliminating them permanently.

It may sound simple, but truly engaging in kaizen requires critical thinking and effort to see past the obvious problems, and focus on the root causes to find long-term solutions that eliminate waste forever.

Kaizen is about eliminating waste wherever it exists, not only in physical processes but also in organisational culture and structure. This means that leaders need to create an environment where employees feel safe expressing themselves freely without fear of reprisal or judgment from management (even if those judgments are well-intentioned).

How The Kaizen Mindset Helps With Business Collaboration

The kaizen mindset is centred on solving problems collaboratively as needed, so no single individual or team plays a more prominent role than others do in generating ideas for improvements.

The Lean Leadership approach is based on the principle that everyone has the ability to improve their own work processes and contribute to business success. This means that leaders at all levels need to be ready to take responsibility for their roles in improving business performance while also encouraging employees to take ownership of their own areas of focus.

Leaders need to realise that by creating an environment where everyone feels comfortable contributing ideas, everyone shares in the responsibility of being able to improve business performance. A key component of this process is creating a culture where employees feel safe sharing their thoughts and ideas without fear of reprisal or negative consequences.

The kaizen mindset is centred on solving problems collaboratively as needed, so no single individual or team plays a more prominent role than others do in generating ideas for improvements that are then implemented for better performance.

How Self-Aware Lean Leaders Succeed

The most effective lean leaders are those who understand themselves exceptionally well. They know their strengths, weaknesses and passions, and they use that knowledge to their advantage.

When you’re a leader, it’s important to be able to balance your own personal needs with the needs of your team. The best lean leaders do this by taking time to reflect on how they personally feel about a particular issue before acting on it.

In addition, they work hard to understand each individual member of their team so they can provide them with an environment that is conducive to success.

Additionally, check out our sister company New Way Growth and their ‘Helping Managers to Lead and Succeed‘ programme.

How To Cut Waste And Increase Productivity By Implementing Lean Manufacturing

Posted on by Adam Payne

Lean Manufacturing is a culture and a strategy. It’s a way of doing things that helps companies improve efficiency, quality, and flexibility. It’s not just about tools and processes—it’s about people, too.

Lean Manufacturing is all about making things more efficient. It focuses on eliminating waste and finding ways to streamline workflows so that the company can produce more with less time and money.

Create a Lean Manufacturing culture

A Lean Manufacturing culture is an environment where people are taking responsibility for their own improvement, the improvement of processes and products, and the overall improvement of the company. It’s a culture built on trust, accountability, and continuous improvement.

In order to create this culture, it’s important to give employees the freedom to make decisions about how they do their job and then hold them accountable for those decisions. This can be tricky if you’re not sure what your employees’ strengths are or how they work best. But one way to develop this understanding is by asking questions like: “What’s been most helpful in improving your efficiency?” or “What practices have helped you achieve your goals?”

Once you’ve identified some of these practices, try them out on other employees! Make sure they’re working before adopting them as official company policy though—you don’t want anyone feeling like they’re being punished just because they weren’t included in testing new ideas before implementation!

Have the Upper Management Lead by Example

Lean is a powerful strategy, but it’s not something that can be implemented overnight. In order to make the most of your Lean efforts and get the most out of your employees, it’s important to have upper management lead by example.

Upper management should be actively engaged in the process of implementing Lean, from the beginning to end. They should also be involved in training new employees on Lean’s principles and ensuring that everyone is working together toward common goals. This will help employees understand how important their role is in helping you achieve those goals, which will increase their sense of ownership over their work.

Upper management should also be willing to let go of their preconceived notions about how things should be done in favour of allowing employees more freedom when it comes time to make decisions about how tasks should be completed.

Train your Team on Lean Basics

One of the best ways to get your team on board with Lean is to train them on the basics.

The Lean principles are not complicated, but they can be difficult to understand if you’re new to the concept. You should prepare your team by giving them a solid understanding of what Lean is and why it’s important before you start putting it into practice.

If your team doesn’t have a clear understanding of the principles, they will have trouble implementing them into their day-to-day work. If, for example, if you try to reduce waste without first explaining what waste is and why it needs to be reduced, then you’ll find that the effort isn’t effective or sustainable.

This is especially true when it comes to engaging your employees in Lean initiatives: if they don’t understand why they should participate in these efforts and how they’ll benefit from doing so, then they won’t be motivated enough to participate fully or consistently.

Value Stream Map – Study the Current Process

The first step in implementing Lean is to study the current process. This will help you identify areas of improvement and determine whether or not you are ready for the changes that will be necessary to make this happen. You can do this by performing a value stream map, which is a visual representation of your workflow.

The process should be broken down into steps. You want to look at each step and ask yourself what can be done to improve it, and how this change might affect other parts of the process as well. It is important to consider how each step impacts other steps, so you can look at all aspects of your operations and make sure that they are working together effectively.

Look for Waste and Remove It (Muda – Waste, Mura – Unevenness, Muri – Overburden)

You can define waste as anything that detracts from the value of a product or service you’re producing from your customers’ point of view. Waste can take many forms, such as overproduction, unnecessary resources, and more. These things need to be eliminated so that organisations aren’t creating products or services that don’t add value.

Muda is any kind of wasted motion, such as unnecessary steps in a process or unnecessary travel between locations. Mura refers to unevenness in the production line—it means one part of the process might be operating at peak efficiency while another part is idle or struggling just to keep up. Muri refers to overburdening people with too much work—this is often seen when you have an employee working alone on a task that should be split between two or more people to match customer demand (TAKT).

Map out the Main Bottlenecks

The main bottlenecks in a process are the aspects of the system that are limiting its throughput.

In order to identify these, you’ll need to first look at or build your Value Stream Map or Process Map and identify where there are bottlenecks. Then, you can work on fixing them by identifying what’s causing the bottleneck and finding ways to remove it. This may involve making changes like adjusting how people work together, reducing change-over times, increasing the Overall Equipment Effectiveness or changing how tasks are assigned (e.g., having workers perform different parts of a task).

Once you’ve identified where your bottlenecks are, you can start working on removing them.

Standardise Everything

This means that you need to define what “standard” means, and then make sure all employees are aware of it and trained to it. Standardising your processes gives consistency in how your team members perform their tasks. 

For example, if you’re a software company and you’re trying to improve efficiency by standardising on coding practices, then every employee should know which practices are allowed and which are not allowed.

You should also standardise your equipment and tools. If multiple employees use the same equipment or tool, everyone should use it in the same way every time.

If your company has multiple locations, then standardising everything is even more important because it helps create consistency between locations. If everyone knows what standards they need to meet at each location, then they’ll be able to work together better across locations knowing the desired quality will always be met.

Develop a Continuous Improvement Mentality

Implementing lean means shifting your focus from your business’s outputs to its inputs. But if you’re going to do that, you need to first develop a continuous improvement mentality.

To do this, you have to be willing to adopt an attitude of continuous improvement and continuous learning. You need to be constantly looking for ways that you can improve how things are done in your office or factory and how they contribute to the overall success of your business.

You also need to be willing to consider new ideas, because one of the main tenets of lean is that there are no bad ideas—only challenges in implementation. If someone suggests something new or comes up with a way of doing something differently, try it out! Even if it doesn’t work right away, you may learn something valuable about how something works or doesn’t work within your organisation.

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Continuous Improvement: The Simple Philosophy That Can Help Your Business Thrive

Posted on by Adam Payne

Continuous Improvement, The 1% rule, or Marginal Gains, whatever terminology you want to call it, they are all similar in philosophy and application. It is the idea of focusing on small incremental improvements to grow your business easily. The most successful businesses are always striving to improve to stay ahead of their competition.

In this blog I’ll explain how the philosophy of small incremental improvements can improve your business. This is a technique that many successful companies use in addition to Lean Thinking – a company’s philosophy of eliminating waste. It has been used for decades and can be found in micro businesses right through to corporate business models across industry and service sectors.

I’ve been a lean Sensei for 25+ years and implemented these small incremental changes in Hairdressers to Big Corporate Manufacturers. By implementing these marginal gains, it’s possible to make a huge impact on the performance of your company in a relatively short period of time. It’s Simple! and the data has proven time and time again that this method works!

You CAN NOT ignore the role of Continuous Improvement in business – and here’s why.

What is Continuous Improvement?

“Be Better Today Than You Were Yesterday, Plan To Be Better Tomorrow Than You Are Today” is a quote I have lived by for 25+ years of my working career.

The 1% Rule is a relatively new contender but has now become a business management philosophy that states that you should focus on improving your product or service by at least 1% every day. It was developed by Sir Dave Brailsford, former performance director of British Cycling, and used as a means to achieve micro improvement in the British Cycling Team. The concept behind the 1% rule is simple: if you focus on small improvements, you can achieve significant results over time.

The concept of the 1% rule in my opinion is based on Kaizen, which is Japanese for “continuous improvement.” Kaizen was first introduced to the Western World in the 1970s by Toyota, who taught that companies should embrace a culture of continuous improvement rather than trying to maximise efficiency one big hit at a time. Kaizen aims to reduce inefficiency in its 3 major forms. These are muda (waste), muri (overburdening work), and mura (inconsistency of work).

When we look at these strategies, we can see how the power of tiny gains really makes a difference.

1% Improvement Every Day 1.01365 = 37.78%

1% Decline Every Day 0.99365 = 0.03%

How does the Continuous Improvement work in business?

The PDCA Cycle, also known as the Plan-Do-Check-Act Cycle, is a model for continuous improvement that uses four phases to drive process changes through the organisation. This linked to the 3 forms of in-efficiency, muda (waste), muri (overburdening work), and mura (inconsistency of work) gives a superb structure and focus for all employees.

The PDCA Cycle Explained:

Plan: In this phase, you identify a problem or opportunity for improvement. You also create a plan for how to solve the problem or capitalise on the opportunity.

Do: In this phase, you carry out your plan and implement your solution.

Check: In this phase, you review your work to see if it was successful in achieving its objectives and if there are any unintended consequences of your actions.

Act: In this phase, you make adjustments based on what you learned in the check phase and continue with another iteration of the cycle to drive continuous improvement.

By continuously improving your processes, your organisation can achieve higher levels of performance at lower cost. This not only improves customer satisfaction but also helps an organisation achieve its goals faster.

The key to this and building on the marginal gains is to empower everyone to make these short, sharp improvement cycles small enough to be managed at a local level. This will enable them to use their creativity and judgment to find the most effective solution for their teams and customers.

The second aspect of this is that the improvements have to be visible and celebrated. This is not just about being proud of what you have achieved, but also about helping others see what you have done. This creates an environment where people are constantly looking for new ways to improve, which in turn leads to innovation.

The third aspect is that it has to be built into every process in a business. You cannot expect people just to do it because you asked them to – they need processes that encourage continuous improvement across everything they do from how they order stock through the distribution system all the way through customer support.

Why use the Continuous Improvement?

Continuous improvement is a process that can be used in every business setting of all sizes and all sectors, from small businesses to large corporations.

It’s Good for Business

The benefits of continuous improvement can be seen throughout the business world. By using this approach, companies are able to stay competitive while providing better quality products and services at lower prices. This helps them grow their customer base while increasing their profit margin through increased sales volume.

It’s Good for Employees

Continuous improvement is also good for employees because it provides them with job security. If you have implemented a continuous improvement program in your company, then you have created an environment where everyone is constantly making improvements which makes your company more competitive in the marketplace and less likely to be outsourced in favour of cheaper labour costs elsewhere.

  • People feel empowered because they have more opportunities for growth and development.
  • Employees feel more engaged because they feel like their work matters and makes a difference.
  • The company attracts better talent because employees want to work for companies that are doing great things for their customers.

Does Continuous Improvement really work?

Yes! Continuous Improvement absolutely works!

I’ve implemented and completed Lean Thinking and Continuous Improvement Projects in 100+ businesses over my career and have no doubt on the impact it can make.

On my very first project back in the 1990’s we took a machine change over from 480 mins to sub 20 mins, saving a £250K capital expenditure. As Senior Exec I’ve saved £10m+ year on year through the implementation of Continuous Improvement. I’ve seen every employee within a business take pride in completing numerous small incremental changes that compound in delivering a huge result.

In order to achieve these results, you need to be prepared to put in the work. It’s not an overnight process—it takes patience as well as an unwavering commitment to creating positive change at every level of your organisation. But once you’ve seen the first results, you’ll find it’s worth every minute invested!

You’ve only got to read some of our Case Studies to realise the potential.

Takeaway: Challenging yourself and your employees to make small improvements every day can have a dramatic effect on your overall business growth.

Manufacturing and The Internet of Things

Posted on by Adam Payne

The Internet of Things – IoT (Wikipedia) is the network of physical objects or “things” embedded with electronics, software, sensors, and network connectivity, which enables these objects to collect and exchange data.

The IoT has created a lot of conversations, some stating it’s all hype, some questioning it’s benefits more of something for the future and obviously the ones in support.

Now let’s not pretend here, the IoT is already here, we have smart houses, apps for lights, heating, music, etc. Recently, my neighbours installed a security system which allowed them to view, check, and switch their alarm on and off accessed from internet, this also alerted him to security issues around the property (the most important aspect). So we can’t say it’s not here already.

Now put this into the manufacturing environment.

Some renowned manufacturers have already started investing in hardware, software, and networking systems. Build the IoT infrastructure now to capitalise on its benefits.

I read in an article recently that GE anticipates $19 trillion in profits and cost savings projected over the next decade.

One major area I can see the benefit is Energy Efficiency. To be able to track all facilities, machines energy consumption on a granular level, this visibility will give feedback on a machines abnormal to normal status, something that we can action, countermeasure, control. It will highlight our waste, our areas for improvement, and better understanding of our costs and how to control them. And as stated this has to be a major benefit for manufacturing, something I certainly wanted as an Exec.

The ability to benchmark similar machines/resources, predict maintenance issues with surges in unusual energy consumption, highlighting the out of hours energy waste and being able to control and manage this. All of these will have a direct impact on the bottom line and this is just scratching the service.

The connectivity within production processes is another example, let’s say a machine is not running at optimal performance, this machine would send an alarm highlighting it’s situation to the production team, it could then slow itself down (as not to self-destruct) communicate with its upstream and downstream processes and slow them down limiting the amount of lost production and or downtime and controlling the standard in process stock.

Bosch’s Stefan Ferber stated “The Internet of Things allows for a new way of organising industry production: by connecting machines, warehousing systems and goods, we can create smart production systems that basically control each other without requiring any manual intervention.”

I will always remember the saying “ the Data will set you free” by allowing you to make “Informed Decisions”, can’t get much better than real time data, and that’s the possibility with IoT.

The Internet of Things global economic impact is massive. Approx. 25% of Global Manufacturers are already using IoT technology, this is expected to grow to 80% by 2025. In reading different articles/surveys most cannot put a definitive figure on the potential impact but the range is between $1.9 to $14.4 trillion dollars on the global economy.

Digital Manufacturing Stats from ASQ:

The American Society for Quality (ASQ) surveyed manufacturing companies that have digitised their processes and found astounding results:

  • 82% increased efficiency
  • 49% experienced fewer product defects
  • 45% increased customer satisfaction

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Why you should do this when looking at Business Performance

Posted on by Adam Payne

Raising Performance is always a challenge (many a sleepless night) but it’s not just about getting it right in your manufacturing processes, it’s about looking at your business as a whole.

Recently, we were asked to support a £40m turnover company with an objective to reduce costs.

Now, although Reducing Costs (and in particular eliminating waste) is an excellent focus, you can sometime lose sight of what other advantages/opportunities there may be, new market opportunities, sales optimisation, finance, etc.

During our detailed business diagnostic, it became apparent that there were some fantastic opportunities to be realised with particular projects on Increasing Growth and Efficiency Savings.

With TCMUK’s Business Practitioners coaching and mentoring our customers internal team, a total of £700K+ efficiency savings, £1M in cash flow improvement and a 17% growth opportunity have been realised so far within the business, with further projects being highlighted for implementation over the next 2/3 years.

So remember, step back and look at the whole business not just the usual suspects (this goes for any size organisation) and you’ll be confident (and hopefully sleeping) knowing you are focused on the right things.

And don’t forget, if getting results like this is on your agenda and you’re looking for some sector expertise, call on 0330 311 2820

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The new ISO9001:2015 standard has arrived.

Posted on by Adam Payne

It focuses on a process-based approach with the aim to produce a desired outcome. Several changes have occurred from the 9001:2008 version: The process approach strongly emphasises that the Quality Management System has to be woven into and fully aligned with an organisation’s strategic direction.

The PDCA (plan-do-check-act) methodology is overlaid on the system of processes, which apply both to individual processes as well as the Quality Management System as a whole. A strong focus on risk-based thinking is required now! It is aimed at “preventing unfavourable outcomes,” such as non-conforming products and services.

The standard has now been published and there is a transition period of 3 years to make the necessary changes, so do you have a plan on how you will tackle it?

Quoting BSI, with more than a million organisations certified to ISO 9001, it’s the most widely recognised standard in the world. ISO 9001:2015 sets out requirements for quality management systems, and is suitable for all types of organisations.

It….

Enables you to better align and integrate multiple management standards

Takes a risk-based approach, becoming a tool for preventive action

Moves away from prescriptive paperwork

The standard is currently being rolled out, so if you are looking for a competitive edge within Production and Service areas, ISO9001:2015 maybe it.

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