You Can be Great If You Really Want To

One of the biggest opportunities for improvement in ETO manufacturing is in the supply chain, where procuring the right materials more quickly and accurately has a direct effect on lead times. According to Stephen Parker, CEO of Datacraft Solutions: “The role of digital kanban in the ETO environment is critical because of the complex and time sensitive nature of engineer-to-order projects. Companies are battling rising costs, fluctuating exchange rates, and increased overseas competition. Customers expect and demand quality products, short on-time deliveries, and competitive prices. Only the most efficient and flexible survive. Digital kanban is a key component that provides companies with a tool to manage costs and shorten cycle times.” Because digital kanban offers realtime information, it allows a company to produce what customers require as they require it, which is exactly what engineer to order is all about.

According to leading manufacturing journalist, Thomas R. Cutler, in the May issue of Business Excellence in a feature article titled, An Order of One, much of the (manufacturing) waste is invisible to the naked eye, so identifying and eliminating it is not always easy. Lean manufacturing uses standardized processes to remove waste from repetitive tasks, but its main principles are still relevant to ETO (engineer-to-order) manufacturers, including:

• Pull scheduling (digital kanban) to reduce inventory and reduce cycle times

• Rapid setup – to reduce lot sizes and inventory

• Team development – to implement the new processes

• Value stream mapping – to identify value added and non-value-added activities

• Cellular and flow manufacturing – to reduce travel distance and simplify routings.

Dramatic improvements can be achieved from lean manufacturing implementations and continued process improvement, including 40-60 percent increases in productivity, inventory reductions in the region of 50-75 percent, lead times down by anything from 25-75 percent and quality improvements between 50-70 percent.

Datacraft Solutions (www.datacraftsolutions.com) delivers a revolutionary digital kanban process of automation solutions to lean manufacturers through a secure Internet gateway, eliminating the need to install and maintain a complex IT infrastructure. The company has experienced significant growth in the past twelve months by eliminating complicated, expensive, time-intensive software implementations as well as extensive training regiments and the need for internal support. The Datacraft Solutions’ demand driven supply chain digital kanban lean system allows customers access and fully utilize powerful lean benefits immediately for a low, predictable monthly fee. Services are scalable so manufacturers can design an appropriate digital kanban solution.

The Kaizen BlitzKaizen Event is a powerful tool in the lean manufacturing process. The blitz enables quick results to occur and often is one of the first things companies do to begin their process.
The Kaizen Blitz is a decisive, quick attack on a particular area or process in order to improve it. Kaizen means, in general terms, continuous improvement, and the blitz is a great way to get people’s attention and make something happen quickly. It also means that there is little time for resistance to form, or opposition to a new program to develop.
The advantages of a Kaizen Event
Immediate results. This is very helpful so that workers can see something positive happening. Since there is no time for them to object, their potential resistance is overcome by the nature of the blitz.
Good tool to use in the beginning. The dramatic and quick results help to shift the company paradigm.
When the company has put up posters, or informed the workforce of the coming program, the blitz is a good way to positively reinforce the good aspects of the new program.
Shows that this is a well thought out, integrated program that gets results.
The disadvantages of the Kaizen Blitz
The training is shallow. Because it is a blitz, there is simply no time to talk or train.
It does not allow the full overview of the lean manufacturing program to be understood. Since it is a one-time event, it may be seen as a disconnected part of a program.
The overall program might suffer as a result. People tend to like immediate results and can develop pockets of efficiency, while the entire operation is a wreck.
The blitz is no substitute for an overall strategy. There may be a tendency to see the blitz as the entire program, rather than the event that it is.
What kinds of Kaizen Blitz’s are there?
The blitz, or event, can be used for various aspects of the lean manufacturing process. This would include 5S implementation, work cell implementation, and setup reduction.
It is advisable to start out small in order to learn the process. Over time, a 5S blitz will yield dramatic results in almost any work area, including the office. A plastic injection molding company is a prime candidate for lean manufacturing, and a kaizen blitz does wonders in such a workplace.
It is a lot like the 15 minute clean up drills we sometimes have at home. Especially with children or teenagers, a lot can get done in a short amount of time by using the blitz idea. Yet, you can see at home as well, that this does not really instill good habits of putting things away or picking up after yourself.
ConclusionSummary
The Kaizen blitz is a powerful aspect of the lean manufacturing process. It should be used in the beginning to obtain dramatic results in order to break down resistance to the overall program.
The blitz should be seen as a part of the whole. It is not the end, but just a tool to get results and it should be used as such.

In the January 2008 issue of Business Excellence magazine, leading manufacturing journalist, Thomas R. Cutler, described the current nature of Demand Driven Supply Chain and the use of Electronic Kanban by one company. This detailed case study provides insight to the process and functionality of the most important lean tool.

Power Partners’ pole type distribution transformers are specifically designed to serve residential overhead distribution loads and are suitable for light commercial loads, industrial lighting, and diversified power applications. Several unsuccessful attempts at lean manufacturing and vendor managed inventory led to excess raw material and WIP (work-in-process.) Power Partners’ problems were compounded by inaccurate data in the ERP (enterprise resource planning) system and the inability to locate material within the plant. To address these problems, Power Partners developed a card-based kanban system to signal material replacement actions for many of its materials.

“We started out trying visual systems, such as a simple two-bin system that could be managed by the material handler,” explains Ben Ehmcke, director of Supply Chain for Power Partners, Inc. “This system involved marking off an area in receiving where wire baskets or boxes of material could be stored. The material handler on day shift was given a preprinted sheet for that supplier. He would take the sheet and place an ‘X’ in each box to show the inventory on hand, and then fax it to the supplier. The material would then be delivered at a predetermined time. The next step was to put up kanban boards for several commodities. As material was received, a recyclable card was placed on each standard package quantity. When material was moved from the staging area to WIP, the material handler removed the card and replaced it on the visual board. The board would also show what was on order and when it was received.”

The company’s manual kanban system was well documented, yet had two basic flaws. Firstly, the company considered material handling to be an entry-level position, and anyone who excelled at it was soon moved to a more skilled position.

It was difficult to maintain the system when there was a constant change of personnel and training was minimal and secondly, there were just too many people handling the material. “We were astounded to find out there were up to thirty-eight different people from just one department that touched the material,” notes Ehmcke.

Power Partners needed to find a system where the material handler could perform the basic job function, and still get the information into the ERP system and to the supplier. Power Partners did not have the resources to develop a demand driven supply chain solution internally, even though the company’s owners had a business associate that wanted to develop a system for small to medium-sized companies. They had the resources to write the software, but had no knowledge of kanban or lean. After several months of working together, it became evident that the project would take much longer than Power Partners wanted, and was much more complicated than the business associate anticipated. The company started looking for software solutions that could be integrated with their ERP system and grow accordingly. They selected Datacraft Solutions.

About Datacraft Solutions:

Datacraft Solutions (www.datacraftsolutions.com) delivers a revolutionary digital kanban process of automation solutions to lean manufacturers through a secure Internet gateway, eliminating the need to install and maintain a complex IT infrastructure. The company has experienced significant growth in the past twelve months by eliminating complicated, expensive, time-intensive software implementations as well as extensive training regiments and the need for internal support. The Datacraft Solutions’ replenishment supply chain digital kanban lean system allows customers access and fully utilize powerful lean benefits immediately for a low, predictable monthly fee; services are scalable so manufacturers can design an appropriate solution.