Table of 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
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
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
FSVV Inventory Policy 128
Wheels within Wheels 130
Variable Volume Scheduling 131
Continuous Improvement 134
Sustainability over Time 136
The “Exception” Problem 136
Chapter 6 Assessment and Improvement of Other Accumulations 139
Introduction 139
Structural Differences between Process Industries and Mechanical Manufacturing 140
Small Accumulations in Process Industries 141
Chapter 7 Statistical Quality Improvement 153
Introduction 153
The Power of Statistical Quality Combined with Lean Manufacturing 153
Statistical Methods in the Process Industries 154
Basic Statistical Concepts 156
Six Sigma 157
Process Improvement before Statistical Analysis 159
Process Improvement Using Statistical Analysis 160
Operational Improvement with Statistical Analysis 161
Statistical Models of Process Performance 162
Using Statistical Analysis: The Process Capability Index 163
Capable Processes 164
Incapable Processes 165
Using SPC at the Frontline in a Process Plant 168
Using a Run Chart 169
When the Run Chart Says the Process Is Operating Normally 169
When the Run Chart Says the Process Is Producing an Unexpected Result 171
When the Run Chart Says the Process Is “Nearly Normal,” but Results Are Drifting 172
Avoid the Waste of Excess Quality 174
Notes 175
Chapter 8 Mistake Proofing or Poka-Yoke 177
Introduction 177
Mistakes Come in Two Parts 178
The Consequences of Mistakes 179
Mistake Proofing: Preventing Consequences 180
Mistake Proofing Is Common Knowledge 180
Warning Systems 181
Four Types of Warning Systems 182
Poka-Yoke Practice 1: Physical Separation 182
Poka-Yoke Practice 2: Visual Signals 185
Poka-Yoke Practice 3: Pattern Recognition 189
Poka-Yoke Practice 4: Simple Physical Devices and Other Minor Changes 191
Approaching Perfect Production 192
Chapter 9 Equipment Reliability and Operator Care 195
Introduction 195
Finding the Cause: Separating the Processes from the Equipment 195
The Role of Equipment Reliability in Lean Practice 196
Operator Care 197
The Fundamentals of Operator Care 199
Phase I: Basic Care 199
Keep the Equipment Clean 201
Keep the Equipment Cool 216
Keep the Equipment Lubricated 220
Phase II: Advanced Techniques 221
Define Your Goals 221
Change the Oil and the Filters 222
Pay Attention 223
Autonomous Maintenance as an Element in Improvement 225
Autonomous Actions 229
Chapter 10 Lean Leadership and Ethics: Creating an Engaged Workforce 235
Introduction 235
Improvement Experiences at the Frontline 237
The Structure of Employee Engagement 238
The Elements of Engagement 238
Clear Goals 239
Skills Necessary to Achieve the Goals 240
Time to Make Improvements 243
Access to the Resources That Cause Change 244
Framework for Action 246
Engage Frontline Teams 247
What to Do When Teams Do Not Engage 248
Refresh the Understanding of Small Event Improvement 249
The Subjective Elements of Engagement 250
Lack of Trust in Management 251
Disruption by Team Members 253
Intentional Disruption 254
Unintentional Disruption 256
Industrial Culture 257
Notes 258
Chapter 11 People Development 259
Introduction 259
Impact of Competent People on Organizational Performance 260
Competence Defined 261
Basic Competence 262
Basic Competence Development 264
Superior Performance 264
Critical Positions 266
Finding the Right Management Tool 267
A Quick Description of Our Analysis 267
The Influence of Critical Positions on Improvement 267
Individual Contributors 268
Subject Matter Experts or Mentors 269
Leaders 271
Identifying Critical Roles in Your Organization 271
Common Misconceptions 272
Developing Highly Competent People 274
Beginning the Process 275
Prompt Improvement 277
Sustaining the Improvement 278
Chapter 12 Leadership: Initiating and Sustaining Lean Operations 281
Introduction 281
Transforming an Organization and Sustaining the Change 281
Sustaining Improvement 284
Process Documentation 285
The Role of Transformational Leadership 286
Sustaining Leadership 289
When the Leader Is Not the CEO 290
Getting Started 292
The Value of 6-Month Intervals 292
Three Attributes of a Successful Beginning 293
The Value of Shared Vision 294
The Value of Immediate Pilot Projects 294
The Value of New Tools 298
Notes 307
Index 309
About the Author 325