Lean Management System LMS:2012: A Framework for Continual Lean Improvement

202 Pages·2012·4.39 MB·English

by  William A. Levinson

Business & Management / Lean Methods & Implementation / Leadership Strategy L
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The synergy of the human and technological aspects of Lean forms what Henry in
s
Ford called a universal code for the achievement of world-class results in any
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enterprise, and which he put into practice to deliver unprecedented bottom-line n
results. Lean Management System LMS:2012: A Framework for Continual Lean
Lean Improvement expands upon and systemizes this universal code into a
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framework that promotes organizational self-audits and continuous improvement. E
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The book’s first section offers a foundation of four simple but comprehensive
N Management
Lean key performance indicators (KPIs): waste of the time of things (as in cycle

time), waste of the time of people, waste of energy, and waste of materials. The
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Toyota Production System’s seven wastes are all measurable in terms of these four
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KPIs, which also cover the key metrics of Eliyahu Goldratt’s theory of constraints:
throughput, inventory, and operating expense. N System LMS:2012
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The first section then adds a proactive improvement cycle that sets out to look
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for trouble by isolating processes for analytical purposes and measuring and
then balancing inputs and outputs to force all wastes to become visible. It is, in E
fact, technically impossible for any waste of material or energy to hide from what M
chemical engineers call a material and energy balance. Application of this book’s
E
content should therefore satisfy most provisions of the ISO 14001 environmental
N
management system standard and the new ISO 50001 energy management
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system standard. A Framework for Continual

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The second section consists of an unofficial (and therefore customizable) Y
standard against which the organization can audit its Lean management system. S Lean Improvement
This unofficial standard is designed to be compatible with ISO 9001:2008 so T
internal auditors can assess both systems simultaneously. Each provision E
includes numerous examples of questions that promote audits in a narrative M
form as opposed to yes/no checklists or Likert scale ratings. The third section

elaborates in detail on the second and provides numerous real-world examples L
of applications. M
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William A. Levinson
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K14563
ISBN: 978-1-4665-0537-7
90000
www.crcpress.com
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K14563 cvr mech.indd 1 6/28/12 9:35 AM
Lean
Management
System LMS:2012
A Framework for Continual
Lean Improvement

Lean
Management
System LMS:2012
A Framework for Continual
Lean Improvement
William A. Levinson
CRC Press
Taylor & Francis Group
6000 Broken Sound Parkway NW, Suite 300
Boca Raton, FL 33487-2742
© 2013 by Taylor & Francis Group, LLC
CRC Press is an imprint of Taylor & Francis Group, an Informa business
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Version Date: 20120518
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Contents
Preface............................................................................................... xi
SeCtion i oVeRVieW
1 The.Need.for.a.Lean.Management.Standard.................................3
The Serpent in the Industrial Garden of Eden ..........................................6
Lean, Six Sigma, or Both? .........................................................................11
Critical to Quality versus Critical to Lean ................................................13
LMS:2012 Development Considerations ...................................................14
Organization and Implementation of LMS:2012 .......................................16
LMS:2012 Section I: Foundation of a Comprehensive Lean
Management System ..........................................................................17
LMS:2012 Section II: Voluntary and Customizable Lean
Management System Standard ..........................................................17
LMS:2012 Section III: Supplementary Detail ....................................18
2 Lean.Key.Performance.Indicators..............................................21
Waste of the Time of Things ....................................................................22
Waste of the Time of Things: Cycle Time Accounting ....................25
Division of Labor and Variation Reduction ......................................33
Waste of the Time of People ....................................................................36
Waste of the Time of People in Service Activities ...........................38
Waste of Materials .....................................................................................39
Waste of Energy ........................................................................................40
Energy Efficiency Gap Analysis: Thought Process...........................41
Material and Energy Balance ....................................................................43
Steady-State Assumption and Control Surface ..................................43
Application to Painting and Coating Operations .............................44
Application to Steel and Aluminum Manufacture ............................45
Application to Machining Operations...............................................46
v
vi  ◾  Contents
Application to Power Generation .....................................................48
Material and Energy Balance, Summary ..........................................49
Do Not Use Carbon Emission Metrics ......................................................50
Is Climate Change a Problem? ..........................................................53
Special Interests and the Climate Agenda ........................................56
Cap-and-Trade Community Doesn’t Walk Its Talk ...........................58
Recommended KPIs Identify All Operating Wastes ................................59
Lean KPIs and Goldratt’s Theory of Constraints..............................61
Lean KPIs and the Toyota Production System .................................62
Lean KPIs and Lean Manufacturing Techniques ..............................63
Waste of Capital Investment .....................................................................63
Non-Operating Processes and White Elephants ..............................64
Waste of Capital Assets in Operating Processes ..............................65
Summary: Lean Key Performance Indicators ...........................................66
3 Integrated.Lean.Assessment.......................................................67
Why IMAIS? ...............................................................................................67
Isolate ........................................................................................................70
Isolate versus Supply Chain Perspective ..........................................74
Measure .....................................................................................................75
Assess ........................................................................................................77
Time of People versus Time of Things ............................................77
Energy versus Time of People and Time of Things ........................78
Materials versus Time of People .......................................................79
Improve .....................................................................................................79
Standardize ................................................................................................79
Summary: IMAIS .......................................................................................80
SeCtion ii LMS:2012
4 Lean.Management.System.Requirements...................................85
Provision 4.1: General Requirements .......................................................85
Explanation ........................................................................................86
Provision 4.2: Lean System Documentation .............................................86
Provision 4.2.1: General Documentation Requirements ..........................87
Provision 4.2.2: Lean Manual ....................................................................88
Provision 4.2.3: Control and Retention of Documents and Records .......89
5 Organizational.Responsibility....................................................91
Provision 5.1: Organizational Commitment ..............................................91
Contents  ◾  vii
Provision 5.2: Customer Focus .................................................................93
Provision 5.3: Lean Management Policy ...................................................93
Sample Lean Policy (Not Part of Provision 5.3) ................................94
Provision 5.4: Planning for Lean Operation .............................................94
Provision 5.4.1: Lean Objectives ........................................................94
Provision 5.4.2: Lean System Planning .............................................95
Provision 5.5: Supply Chain Responsibility ..............................................96
Provision 5.5.1: Responsibility ...........................................................96
Provision 5.5.2: Management Representative ....................................96
Provision 5.5.3: Supply Chain Communication .................................97
Provision 5.6: Lean System Review ..........................................................98
Provision 5.6.1: General Requirements .............................................98
Provision 5.6.2: Review Input ...........................................................98
Provision 5.6.3: Review Output .........................................................99
6 Lean.System.Infrastructure.and.Resources..............................101
Provision 6.1: Resource Availability ........................................................101
Provision 6.2: Workforce Training and Empowerment ..........................101
Provision 6.3: Facilities, Layout, and Supporting Services .....................102
Provision 6.4: Work Environment, Ergonomics, and Motion
Efficiency ............................................................................................103
7 Product.or.Service.Realization.................................................105
Provision 7.1: Planning ............................................................................105
Provision 7.2: Customer Lean Operation Requirements ........................106
Provision 7.3: Product, Process, and Service Design for Lean ...............106
Provision 7.4: Purchasing: Lean Supply Chain Practices ........................107
Provision 7.4.1: Deployment of Lean Requirements to Suppliers ..........108
Provision 7.5: Lean Production and Service ...........................................109
Provision 7.5.1: Lean Process Control .....................................................113
Provision 7.6: Control of Gages and Instruments ..................................114
Provision 7.7: Supply Chain Management ..............................................114
Provision 7.7.1: Customer–Supplier Relations ..................................114
Provision 7.7.2: Transportation ........................................................115
8 Measurement.and.Continuous.Improvement............................117
Provision 8.1: Measurement and Analysis for Continuous
Improvement ...........................................................................................117
Provision 8.2: Monitoring and Audit .......................................................117
Provision 8.2.1: Satisfaction of Customer Lean Requirements .......117
viii  ◾  Contents
Provision 8.2.2: Internal Audit ........................................................117
Provision 8.2.3: Measurement and Monitoring of Process or
Service .............................................................................................118
Provision 8.3: Containment of Nonconforming Product or Service ......119
Provision 8.4: Data Analysis ...................................................................119
Provision 8.5: System, Process, and Service Improvement ....................120
Provision 8.5.1: Continuous Improvement ......................................120
Provision 8.5.2: Proactive Action .....................................................120
Provision 8.5.3: Preventive Action ...................................................121
SeCtion iii DetAiLS AnD eXPAnDeD eXPLAnAtion
9 Lean.Management.System:.Details...........................................125
Process Perspective .................................................................................127
Need for Documentation ........................................................................128
Lean Manual ............................................................................................131
Control and Retention of Documents and Records ...............................132
10 Organizational.Responsibility:.Details.....................................133
Need for Organizational Commitment ...................................................133
Management Commitment Loses the Luddites ..............................135
Management and Workforce Commitment: Workforce Flexibility 138
Management Commitment and Training ........................................138
Lean Management Policy ........................................................................140
Supply Chain Responsibility ...................................................................140
State of Self-Control .........................................................................141
Supply Chain Communications ..............................................................142
Need for Internal and External Porosity.........................................143
Lean System Review ................................................................................143
11 Infrastructure.and.Resources:.Details......................................145
Workforce Training and Empowerment .................................................145
Facilities, Layout, and Supporting Services ............................................147
Work Environment, Ergonomics, and Motion Efficiency.......................147
12 Product.or.Service.Realization:.Details....................................149
Planning ..................................................................................................149
Design and Development for Lean .........................................................149
Purchasing and Lean Supply Chain Practices ........................................150
Purchasing Process ..........................................................................151
Lean Production and Service ..................................................................151
Contents  ◾  ix
Lean Process Control .......................................................................152
Supply Chain Management .....................................................................154
Customer–Supplier Relations...........................................................155
Transportation .................................................................................155
13 Measurement.and.Continuous.Improvement:.Details...............159
Measurement and Analysis for Continuous Improvement ....................159
Proactive Action ......................................................................................160
14 Additional.Lean.Environmental.and.Energy.Practices.............163
Identification of Material and Energy Wastes ........................................164
Reduction of Material and Energy Wastes .............................................165
Supercritical Solvents .......................................................................166
Counterflow Rinse Systems in Semiconductor Processing and
Metal Plating ....................................................................................166
Get a Sail!.........................................................................................168
Don’t Ship Air (or Water) ................................................................169
Innovative Use of Mechanical Energy ............................................171
Economy of Scale in Renewable Energy ........................................171
Application to Agriculture ...............................................................172
Innovative Thinking in Transportation ..........................................174
4 Rs: Refuse, Reduce, Reuse, Recycle .............................................176
15 Conclusion................................................................................179
Lean KPIs and CTL Characteristics ........................................................179
IMAIS Improvement Cycle ......................................................................180
LMS:2012 ..................................................................................................181
Bibliography....................................................................................183