TRANSFORMING TODAY’S FACTORY INTO

A LEAN ENTERPRISE

Michael A. Husar
Delphi Automotive Systems
Delphi Saginaw Site Operations
Director
3900 Holland Road
Saginaw, MI 48601-9494

SUMMARY
To provide managers and change agents with proven strategies for preparing the factory and the employees for
cultural changes that accompany the transition to a lean enterprise.

INTRODUCTION

Lean manufacturing is a critical element in a successful operation. It is the single most powerful strategy for
improving a production operation’s competitiveness. Yet, few businesses use the technique because they don’t fully
understand lean manufacturing in its entirety.
While the mechanics and approaches of Lean Manufacturing (LM) may not be crystal clear to everyone, there is
little doubt about the results that are possible. The evidence is everywhere. The following are a few representative
results as reported by Industry Week magazine’s “1999 Plant of the Year” contest:
1. Gain of 75,000 square feet of floor space by removing/relocating equipment transitioning from assembly
lines to manufacturing cells
2. 43.9% increase in parts per person per day
3. 58% reduction in in-plant defects
4. Suggestions up 60% and implemented suggestions up 120%
5. 95% of workforce empowered through natural work teams
6. Ergonomic stressors reduced on 450 jobs
7. 75% reduction in lost workday cases
8. 75% reduction in rework
9. Error-proofing initiatives yielded 1,156 items
10. Product cycle time cut 59%
11. Work-in-process inventory slashed 40%
An examination of each plant’s efforts shows, without exception, each aggressively implemented a broad array
of LM approaches. In fact, if a production operation is experiencing significant success, LM techniques are being
used; whether management realizes it or not. No matter what LM is called, the basics of sustainable excellence are
always the same.

WHAT IS LEAN MANUFACTURING?

The underlying mechanisms of LM are not complex. It is essential to realize that LM involves both a philosophy
and its accompanying approaches and tools. The philosophy and approaches are mutually supportive and interwoven.

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If an adequate number of the tools and approaches are aggressively implemented—and enthusiastically coached at the
microprocess level—the philosophy of LM springs to life.

RATIONALE: BUILT-IN QUALITY IS ESSENTIAL

TO THE APPLICATION OF LEAN
MANUFACTURING
What do we mean by “built-in quality”? It’s a simple concept with many variations in the application. “Built-in”
means that it was included as part of the original manufacture. “Quality” is a more difficult concept and generally
defined by the customer (i.e., “beauty is in the eye of the beholder”).
The principle of built-in quality is to stop work immediately whenever a problem occurs. The equipment is
designed to detect abnormalities and will stop automatically if they occur and methods (quality, Andon) are provided
for the operators to stop production when they suspect problems. This principle prevents defective items from pro-
gressing to later stages; prevents the waste of producing a series of defective items; illuminates the causes of prob-
lems by stopping during the problem; and removes the need for operators to watch the machines continuously.
There are various methods that contribute to built-in quality. Among them are: standardized work; standardized
in-process stock, Takt time, working sequence, visual controls which is a general name applied to a wide variety of
methods such as Andon boards; error-proofing devices which are specific devices to prevent assembly or manufac-
ture of defective parts; and “intelligent” automation or self-stopping machines.
There are also many sources of built-in quality, as Table 1 shows.
There are several reasons for discussing quality first, before talking about the basics needed to change a culture
to LM. First, quality is a key factor in customer satisfaction as well as in determining the perceived value of our prod-
uct. It is a must if we are to remain in business and everyone must be dedicated to not letting a single defect get past
them. Quality can be as simple as conformance to print specifications or as complex as a desired appearance/feel.
However, the ultimate goal is still zero non-conformances to the customer. A reminder here that “customer” is defined
as the next person in the process receiving your product/work output as well as the ultimate customer; the consumer.
Talking about zero defects won’t help you get there without tools/processes such as: customer focused organiza-
tion; problem solving including root cause analysis; design for assembly; design for manufacturing; point and touch;
and color coding. These tools must be in place to help the operator meet the goal of zero defects to the customer.
Quality starts during the design process. “Simple is better” should be the guiding rule. It continues into the pro-
cessing phase where the key question should be “how do I know the product is good when I get it and good when I
process it to the next operation”? It is expected that everyone will check their own work and the work of those pre-
ceding them. All inspection devices should be clearly labeled with written instructions as well as illustrations of the
procedure to be followed. Gages should be located as close to the process as possible and designed to be easy to use.
Inspections should be done regularly within each shift and “first piece” checks done when a part changeover occurs
or a new die is installed. Once again, the key here is to protect the customer from ever receiving a nonconforming
product. All nonconformances should be saved since these hold the key to future process/product improvements to
further protect the customer.

Table 1. Sources of built-in quality.

1. Features Design
2. Performance Design
3. Reliability Design/Manufacturing
4. Durability Design/Manufacturing
5. Conform to specifications Manufacturing
6. Aesthetics Design
7. Meeting expectations Design/Manufacturing/Sales
8. Service Design/Sales
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HOW DOES ALL THIS START?

It starts with education and communication. The first step is information; then understanding (linking personal
and organizational values); commitment (empowerment); and finally, action.
To be successful in implementing lean, there are some characteristics that each organization must possess. They
include:
1. Top leadership knowledge and involvement (sense of urgency/effective Sensei use)
2. Detailed value stream mapping (within and without the plant/comprehensive site plan development)
3. Action based on value stream analysis (process stability/inventory reduction/quick changeovers)
4. Maintain focus on all lean elements (good communication process)
5. Action oriented (make improvements/do again/drive knowledge through experience)
To get sustainable results from lean implementation, you need all the pieces in the lean manufacturing system
puzzle: process planning; information communication; employee involvement; problem management; quality system;
and JIT (Just-In-Time).

ESSENTIAL STARTING POINT: CREATE AN

OPERATING VISION OF THE FUTURE
The key components and principles of your vision should include:
1. Recognition that people are our most important asset (beliefs and values that incorporate safety first,
mutual trust and respect, fairness and equity, and teamwork).
2. Customer satisfaction (focus on the needs of the customer first while eliminating waste in quality, cost,
and service).
3. Quality (built in, stop the line if you see something wrong, no recriminations if you tell us about a mis-
take before it gets out).
4. Workplace organization (practice the 5 S’s, our image to the customer, workplace safety).
5. Work standardization (makes it easier to detect part problems).

HOW TO WIN AT “LEAN”

To win at lean is to focus on the task or goal and commit to reaching it. The teamwork and communication must
be clear, consistent, and concise. Problem solving on the floor must involve quick responses. You see, winning feels
good and is very habit forming.
Your lean team should consist of a group of experts in lean techniques whose focus is to educate existing man-
agers in lean manufacturing fundamentals. The team should put pilots in each plant to move quickly to lean manu-
facturing and at the same time, leave behind a core group to further spread the concepts and institutionalize them.
When the pilots in the plants are relatively self-sustaining, then the lean team needs to move into the support areas
(engineering, finance, marketing, sales, planning) and repeat the same process. The supply chain should also be edu-
cated in lean techniques.
Through this whole process, remember: Built-in quality isn’t everything, it’s the essential thing!