Table Of ContentThe Myths and Truths of Lean
Transformations
How to Successfully Make the Transition
from Theory to Effective Deployment
The Myths and Truths of Lean
Transformations
How to Successfully Make the Transition
from Theory to Effective Deployment
By
Raymond Kelly
A PRODUCTIVITY PRESS BOOK
First edition published in 2019
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Library of Congress Cataloging‑ in‑ Publication Data
Names: Kelly, Raymond, 1952- author.
Title: The myths and truths of lean transformations : how to successfully
make the transition from theory to effective deployment / Raymond Kelly.
Description: New York : Taylor & Francis, [2019] | Includes bibliographical
references and index.
Identifiers: LCCN 2018020478 (print) | LCCN 2018034176 (ebook) | ISBN
9781315100067 (e-Book) | ISBN 9781138296381 (pbk. : alk. paper) | ISBN
9781138296398 (hardback : alk. paper)
Subjects: LCSH: Organizational effectiveness. | Quality control.
Classification: LCC HD58.9 (ebook) | LCC HD58.9 .K434 2019 (print) | DDC
658.4/013--dc23
LC record available at https://lccn.loc.gov/2018020478
Visit the Taylor & Francis Web site at
http://www.taylorandfrancis.com
Contents
About the Author ............................................................................. vii
Introduction ..............................................................................................ix
1 Enterprise Lean Transformation Introduction ............................1
Lean Transformations: Creating & Maximizing Customer Value ...............1
Change Readiness, i.e. Appetite for Change ..............................................3
What Comprises an Enterprise Lean Transformation Model?....................5
How to Get Started with Your Enterprise Lean Transformation
Initiative? ....................................................................................................17
Assessment Tools and Methodologies ......................................................22
Routing by Walking Around (RBWA) ...................................................23
Value Stream Mapping ..............................................................................30
2 Lean – The Relentless Pursuit to Eliminate Waste ....................51
Muda, Muri, & Mura ..................................................................................51
Value Added vs. Non-Value Added ..........................................................55
Waste – Any Amount that’s More than the Minimum Required .............57
TIMWOOD (Figure 2.3) ............................................................................59
TIMWOOD: Transportation ..................................................................59
TIMWOOD: Inventory ..........................................................................65
TIMWOOD: Motion ..............................................................................69
TIMWOOD: Waiting ..............................................................................72
TIMWOOD: Overproduction ................................................................75
TIMWOOD: Over-Processing ...............................................................77
TIMWOOD: Defects ..............................................................................79
3 Lean – Lean Building Blocks – How To .....................................85
Flow ...........................................................................................................85
Pull and Kanbans ......................................................................................91
v
vi ◾ Contents
Leveled Production .................................................................................101
Rhythm Wheel (a.k.a. Product or Production Wheel) ...........................105
Cellular Manufacturing ..........................................................................108
Single-Minute Exchange of Dies (SMED) ...............................................111
Standardized Work (a.k.a. Standard Work) ............................................118
Routing by Walking Around (RBWA) .................................................120
Time Observation Sheet ......................................................................120
Standard Work Combination Sheet ....................................................122
Process Capacity Chart ........................................................................123
Yamazumi Chart ..................................................................................124
Standard Work Sheet ...........................................................................127
Job Element Breakdown Sheet (JEBS) ...............................................128
Visual Aids ...........................................................................................131
Standard Work … ...................................................................................132
Leader Standard Work ...........................................................................133
Visual Management .................................................................................134
Total Productive Maintenance (TPM) .....................................................138
Overall Equipment Effectiveness (OEE) .................................................140
Total Quality Management ....................................................................148
TQM’s Seven (7) Basic Quality Tools .....................................................149
5-Whys .....................................................................................................153
Failure Mode and Effect Analysis (FMEA) .............................................158
Workplace Organization (5S + Safety) ...................................................162
4 Selective Lean Transformation Case‑in‑Point Examples ..........169
Index ..............................................................................................181
About the Author
Raymond (Ray) Kelly is the proud recipient of a BS in Engineering
Operations from North Carolina State University.
Ray is a seasoned Lean Six Sigma practitioner with over 25 years’
experience as a hands-on industry practitioner holding senior manage-
ment positions in the USA and Asia. His manufacturing employers have
been Eaton Corporation (automotive), Telex Terminal Communications
(computer peripherals), Northern Telecom (telecommunications), Cardinal
Health (medical devices), and Littelfuse (electronics components). Ray first
became involved in just-in-time (Lean) manufacturing in the early 1980s
and holds several patents for pioneering work in developing manufactur-
ing processes.
Additionally, Ray has over 15 years of experience in management con-
sultancy whilst developing subject matter expertise in Lean manufactur-
ing, Six Sigma deployment and supply chain optimization. He has been
employed by several of the big consultancy firms; Coopers & Lybrand,
PricewaterhouseCoopers, and Deloitte Consultancy. He’s also owned a
consultancy business and worked as a freelance consultant. Ray has pro-
vided consultancy expertise to an extensive and diversified range of cli-
ents in more than 20 countries. His client list includes Hewlett-Packard,
Texas Instruments, Manitowoc / Frymaster, Abbott Laboratories, Panasonic,
Toshiba, Suzuki, Siemens, Infineon Technologies, Unilever, Mead–Johnson
Nutrition, Royal Dutch Shell, and British Petroleum.
Ray is a certified Lean Six Sigma Master Black Belt.
Ray has a passion for leading companies in substantial business trans-
formation initiatives. He has led over 100 initiatives, resulting in annualized
cost savings of over $200 million.
vii
viii ◾ About the Author
Some of the quantitative results that Ray has successfully facilitated
include:
◾ 40~67% reduction overall process lead time;
◾ 35~90% reduction in cycle times;
◾ 33~65% reduction in raw material inventories;
◾ 25~70% reduction in finished goods inventories;
◾ 50~72% reduction in work-in-process inventories;
◾ 24~50% reduction in late deliveries;
◾ 30~50% reduction in labor hours/unit;
◾ 20~58% reduction in scrap rates;
◾ 25~71% reduction in customer complaints;
◾ 30~60% reduction in floor space;
◾ 60~80% improvement in overall quality;
◾ 30~97% reduction in set-ups/changeovers.
The case-in-point examples (over 60) in this book reflect Ray’s hands-on
experience leading Lean Transformation initiatives. He is very proud of his
accomplishments in the deployment of Lean Six Sigma Tools and method-
ologies within a very diversified business landscape. The goal of this book is
to share his successes, as well as a couple of failures, with you.
Introduction
Been There, Done That …
… now, let me share my experiences and, hopefully, make your
Lean journey less turbulent.
I am writing this book as I want to share my real-life experience as a Lean
Implementer. I hope that I can inspire some of you to relentlessly pursue
operational perfection within your organizations, and at the same time take
some of the apprehension away by showing you that while the deployment
of Lean has substantial underlying scientific and mathematical merit that
a lot of success can come from common sense applications. I’ ve heard it
said many times that Lean is a combination of science and art; that’ s very
true, but a good dose of common sense and humility doesn’ t hurt, either.
Although, you can be an expert in the deployment and application of Lean
tools and methodologies; you’ll be most successful by engaging and respect-
ing all levels of your organization. And, also, exhibiting humility is benefi-
cial to each of us; I have over 40 years of operational experience, but I am a
lifelong learner and always try to keep an open mind and learn from every-
one that I encounter (sometimes learning what not to do ☺).
I probably have as diversified a Lean background as anyone. I have been
an engineer, a manager, a director, a consultant, an entrepreneur, and a
CEO / president. I have led more than 100 Lean / Lean Six Sigma projects in
23 countries. I have been employed by American Fortune 1000 companies;
and have consulted American and foreign multinationals, and national &
regional companies alike.
The projects that I have led have resulted in annualized savings of greater
than $200 million, while training and mentoring over a thousand partici-
pants in Lean tools and methodologies.
ix
