Table Of ContentLean Improvement / Business and Manufacturing
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“I urge all manufacturing managers and leaders to read this volume carefully
and to take Ray’s lessons to heart. They will be doing their organizations, their l
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shareholders, and their employees a great service.”
— Rick George, President and CEO, Suncor Energy Inc. y
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“If you truly want world-class performance, you will want a copy of this book on
your desk as a ready reference manual.”
—King Pouw, Executive Vice President, Kellogg Company
“This book is about ‘walking the talk.’ Ray provides uniquely valuable insight
from having personally led several organizations to achieve exceptional results
applying lean principles.”
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—H. Eugene McBrayer, former President, Exxon Chemical Company
All companies can benefit from lean, but not all do. i
While lean practices have been successfully implemented in the process industry with q
excellent results for over 20 years (including the author’s own award-winning example
at Exxon Chemical), that industry has been especially slow in adopting lean. Part of the
problem is that the process industry needs its own version of lean. The larger part of
the problem is resistance to transformational change, a barrier that can be overcome u
only with effective leadership and results-oriented planning that engages rather than
excludes all stakeholders.
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Written by Raymond Floyd, an unparalleled leader of lean transformations, Liquid
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Lean: Developing Lean Culture in the Process Industries provides potential process
industry change agents with the no-nonsense guide needed to eliminate waste and
achieve sustainable optimal efficiency. Presenting lessons in lean as they apply within
the liquid industries, the book focuses on developing the four measures of lean as
defined by the Shingo Award:
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• Business Results
• Consistent Lean Enterprise Culture e
• Continuous Process Improvement
• Cultural Enablers
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Illustrated with his own success stories, Floyd describes business results, lean enterprise
thinking, and policy deployment in process industry terms. He offers detailed theory,
practice, and examples of continuous process improvement, and describes the leadership n
and defines the ethics needed to evolve and sustain lean transformation. Floyd lays out the
specific steps needed during the first six months of transformation and the benchmarks
to be achieved during the first two years of implementation. All companies can benefit
from lean; this book makes sure that those who want it know how.
Raymond C. Floyd
PP8629
ISBN: 978-1-4200-8862-5
90000
www.crcpress.com
9 781420 088625
www.productivitypress.com
Liquid Lean
Developing Lean Culture
in the Process Industries
Liquid Lean
Developing Lean Culture
in the Process Industries
Raymond C. Floyd
CRC Press
Taylor & Francis Group
6000 Broken Sound Parkway NW, Suite 300
Boca Raton, FL 33487-2742
© 2010 by Taylor & Francis Group, LLC
CRC Press is an imprint of Taylor & Francis Group, an Informa business
No claim to original U.S. Government works
Version Date: 20140602
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I wrote this for my wife, Marsha, and my daughters, Erin and Allison.
They have been the best part of my life.
Contents
Foreword ...............................................................................................xv
Acknowledgments ...............................................................................xix
Chapter 1 Business Results in Process Industries .............................1
Introduction .................................................................................1
How This Book Is Organized: Shingo Prize Criteria .............2
Business Results: Improve Performance with Lean ...............3
Beat the Competition with Very Flexible Manufacturing .....4
Improve Performance with Lean and an Engaged
Workforce .....................................................................................7
Gain First Mover Advantage....................................................10
Achieve Prompt Improvement ................................................13
All Companies Can Benefit from Lean, but Not All Do ......14
Disruptive Changes ..............................................................15
Why the Process Industry Needs Its Own Version
of Lean .........................................................................................16
Transforming the Raw Material .........................................17
Indirect Material Transformations ....................................18
Time as an Independent Element of Production .............19
Special Case: Continuous Processing ................................21
Notes ............................................................................................22
Chapter 2 Lean Enterprise Thinking ...............................................23
Introduction ...............................................................................23
Developing a Western Lean-Enabling Culture .....................25
Historical Perspective ..........................................................27
Early View of Lean: Just-in-Time Manufacturing ...........27
Early View of Engaged Employees: Quality Circles ........30
The Eight Sources of Waste ......................................................32
The Relationship between Inventory and Operating
Problems ....................................................................................34
Value Streams and Support Processes ....................................36
Lean Values: Inventory Reductions Can Sustain
Improvements ............................................................................39
vii
viii • Contents
Lean Values: Culture of Engagement.....................................40
Notes ...........................................................................................42
Chapter 3 Policy Deployment ...........................................................43
Introduction ..............................................................................43
Large Events and Small Events ...............................................44
A Strategic View of Manufacturing ........................................45
Strategic Alignment and Necessary Boundaries .................48
Prerequisites for Structured Autonomous
Improvement ..............................................................................50
Strategic Direction ....................................................................52
The Role of Communication in Achieving Strategic
Alignment ..................................................................................54
Limiting Opportunities for Improvement ........................59
Deploying Strategic Intent ......................................................60
Simple Statement of the Goal .............................................60
Prose Statement of Intended Future State .........................61
Prose Statement of Current Reality ....................................61
Objective Measures of Progress ..........................................61
Interim Performance Targets ..............................................62
Formatting Goal Statement .................................................62
Translating Strategic Intent throughout the
Organization ..............................................................................63
Framework for Action ..............................................................69
How Quality Stations Work ................................................70
Display the Team Goals ..................................................71
Display What the Team Has Completed ......................73
Show the Work in Progress ............................................74
Provide Interactive Space ................................................74
Policy Deployment in Action: Conversations at a
Quality Station ......................................................................75
Internal Team Conversations .........................................76
External Team Conversations ........................................79
Chapter 4 Improving Flexibility and Availability in
Mechanical Equipment ....................................................81
Introduction ...............................................................................81
Contents • ix
Single Minute Exchange of Dies System ................................82
What We Can Learn from NASCAR ................................84
Translating NASCAR Success to Our Plants ....................85
Preparation .......................................................................85
Teamwork .........................................................................88
Equipment .........................................................................89
How to Use the SMED Concept ..............................................91
The Five Key Components of SMED Practice .......................92
Separation of Activities ........................................................94
Modification of Rate-Limiting Internal Activities ..........99
Modification of the Work Team .......................................102
Modification of the Equipment ........................................103
Modify Equipment to Maximize Efficiency ...............104
Preparing for Events and Sustaining the
Improvements .....................................................................109
Outcome of Improvements ...........................................110
Chapter 5 Operational Planning to Improve Chemical
Transitions ......................................................................113
Introduction .............................................................................113
The Causes of Chemical Inflexibility ....................................114
Chemical Contamination ..................................................114
Unintended Conversions ...................................................114
Fixed Sequence Variable Volume Production .....................115
The Concept: A Comprehensive Approach to the
Production Cycle ................................................................116
What We Can Learn from the New York Subway
System ...................................................................................117
The Four Components of FSVV Practice .............................119
Typical Operating Problems ............................................120
Changes in Process Conditions ..................................120
Additives and Modifiers...............................................120
Changes in Reactive Chemicals ...................................121
The Fixed Sequence ............................................................121
Establishing a Fixed Sequence ....................................122
FSVV Inventory Policy .....................................................126
Days of Demand in Inventory .....................................126
ABC Inventories .............................................................127
