How LEAN is QRM? Dirk Van Goubergen 2014 Van Goubergen P&M gcv - Lille Belgium
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1 How LEAN is QRM? Dirk Van Goubergen 1 V1.0
2 Who am I? Dirk Van Goubergen Lean : Studying, learning, researching, coaching implementations for more than 20 years of which 8 years as professor of Industrial Ghent University (B) In Manufacturing, Office, Service, Healthcare environments In Belgium, Europe, North/South America, Asia (Photo 2by Rob Gieling) V1.0
3 The Bibles of QRM As an IE I can say: Great Books! Great Results! 3 V1.0
4 What is QRM? A company wide strategy that pursues the reduction of lead time in all aspects of a company s operations. 4 Key components 4 V1.0
5 Some Quotes on Lean in QRM Literature While LEAN Manufacturing methods have put a lot of emphasis on elimination of waste, certain types of waste caused by long lead times are ignored in these approaches (p165) Manufacturing strategy today abounds with acronyms and techniques just as JIT, Kaizen, SMED, Lean, Six Sigma, and many others.qrm can help support and focus these methods so that they provide more productive results (p188) QRM does not undermine your Lean efforts, but rather it takes your Lean strategy to the next level with an ability to tackle more difficult customers and market opportunities (p189) QRM is the only comprehensive, enterprise-wide strategy that has the single-minded focus as well as the set of tools to help you reduce time (p189) 5 V1.0
6 Lean in QRM Literature 6 V1.0
7 Lean in QRM Literature (Rajan Suri, 2010) 7 V1.0
8 8 V1.0
9 Welcome to the Wild West We call it Lean (N. Modig, P. Ahlstrom) 9 V1.0
10 What is Lean? Elimination of Waste? 10 V1.0
11 What is Lean? A toolbox of techniques? A Continuous Improvement program? A Cost Cutting approach? A Strategy? 11 V1.0
12 What is Lean? Back to the Roots End of 19th Century Static Assembly Time is Money Flow Process Layout Mixed Model Flow Kaizen Culture Universal Principles (1982) (1991) (1996) 12 V1.0
13 The Essence of Lean Thinking Lean is a business strategy for organizing and improving the operational activities of companies in order to achieve business objectives in a more effective way. 1 Correctly specify value for the customer 5 Managing towards perfection 2 Identify the value stream and remove the waste 4 Let the customer pull 3 Make value flow (Lean Thinking - Womack, Jones) 13 V1.0
14 Lean in 4 Principles Value (for the Customer) vs. Waste Flow in Value Streams (Typical) Resource View Product View Visual Management Wat is normal/abnormal? (Workplace Organisation, Work Methods, Flow, Quality, ) OR Kaizen Culture - Learning Organisation Striving towards Perfection 14 V1.0
15 Flow in Value Streams Lean vs. Traditional Improvement Red/Green or should it be White/Gray? Typical Company VA NVA Traditional Process Improvements VA NVA Minor Improvement Lean Enterprise Improvements VA NVA Major Improvement TIME 15 V1.0
16 Lean is Value Stream Driven (Flow) 16 V1.0
17 Main Contribution of (IE) Tools for implementing Lean (principles) in an automotive environment Enablers All we are doing is looking at the time line, from the moment the customer gives us an order to the point when we collect the cash. And we are reducing the time line by reducing the non-value adding wastes. - Taiichi Ohno 17 V1.0
18 Toyota Production System It s all about Time? Best Quality - Lowest Cost - Shortest Lead Time Through shortening the Production Flow by Eliminating Waste Just in Time The right part at the right time in the right amount Continuous Flow Pull System Level Production (Heijunka) Flexible, Capable, Highly Motivated People Jidoka Built in Quality Manual / Automatic Line Stop Labor-Machine Efficiency Error Proofing PokaYoke Visual Control Standardized Work Total Productive Maintenance Operational Stability Robust Products & Processes Supplier Involvement 18 V1.0
19 Flow must be Designed into our Value Streams Manufacturing Office/Service 1. Takt Time 2. Finished Goods Strategy 3. Continuous Flow 4. FIFO connections 5. Pull/Supermarket 6. Schedule one point 7. EPEI Interval 8. Heijunka - Pitch 1. Takt Time 2. Reorganize the work 3. Continuous Flow 4. FIFO connections 5. Schedule one point 6. Work Flow Cycle 7. Heijunka Pitch 8. Changing Demand 19 V1.0
20 Outside Automotive. Toyota was the first one to systematically implement flow principles to reduce LT. But they are NOT in the driver seat to develop/adapt the tools for other sectors CHALLENGE Principles Tools LEAN? Depend on: - Level of analysis (Plant vs Supply Chain) - Manufacturing vs. Office/Service - Sector specific (product/process technologies, Value for the customer,..) 20 V1.0
21 Lean Supply Chain level Design Flow into Supply Chain (Extended) Value Streams QRM is the only enterprise-wide strategy to reduce time? 21 V1.0
22 Lean (Flow) as an Enterprise-Wide Approach QRM is the only enterprise-wide strategy to reduce time? 22 V1.0
23 QRM Lean While LEAN Manufacturing methods have put a lot of emphasis on elimination of waste, certain types of waste caused by long lead times are ignored in these approaches (Suri, 2010) 23 V1.0
24 QRM Cell Design Lean Value Stream Design FTMS Focused Target Market Segments Who are we? Cross functional, philosophical discussion Product/Process FamilyDefinition Criteria? 24 V1.0
25 QRM MCT maps Lean Value Stream Maps Grey space vs. White space Value Stream Lead Time vs. Process Time 25 V1.0
26 QRM Cells/Q-ROC Lean Value Stream Design Permanent OR VS Design principle 3 VS Design principle 4 or Temporary Time-Slicing EPEI Scheduling (cell/shared resource) (VS Design Principle 7) Work Flow Cycles Office/Service VS Design principle 6 26 V1.0
27 QRM Variability - System Dynamics Lean Value Stream Design Exploit Variability (Branch) Takt Time VS Design Principle 1 Buffer Capacity (Sir John Kingman, 1961) Smaller Batches EPEI Scheduling (VS Design Principle 7) 27 V1.0
28 QRM POLCA Lean EPEI Scheduling + FIFO connections FIFO FIFO FIFO EPEI EPEI FIFO Cards indicate free capacity Buffers are controlled Sequenced based on HL/MRP (Suri, 2003) EPEI FIFO connections limit WIP and control the sequence EPEI gives Guaranteed Turnaround Time 28 V1.0
29 Conclusions Lean is a universal strategy, based on principles of Flow in Value Streams Many tools are available to implement these principles Historically most of these come from Toyota (furthest in the journey) Specific for their value streams, processes, products, value for the customer Other industry sectors and office/service environments have started implementing Lean with great success By using or adapting or inventing the tools that are relevant for their situation 29 V1.0
30 Conclusions QRM Basic principles are part of the principles of Lean => QRM tools are in the JIT pillar of Lean/TPS One clearly NEW tool is POLCA especially suitable for low vol/high mix environments QRM might be the next level IN Lean (for some people), but not the next level OF Lean Focus on Flow vs only on Waste No NEW basic principle is added by QRM 30 V1.0
31 Food for Thought Must there really be another name? Is this creating confusion? Should we not be looking for synergy? On the other hand: Maybe QUICK RESPONSE sounds more appealing/positive than LEAN.?? Lean/QRM? QRL (Quick Response Lean)? Besides POLCA (as a tool), all others elements/principles of QRM are universal (not even sector specific) Why focus so much on only low volume/high mix? Should we even be asking/looking for the need for QRM outside manufacturing? No one is nowadays doubting the relevance of Lean in non-manufacturing environments.. 31 V1.0
32 Final Conclusion QRM brings us back/closer to the roots/essence of Lean (with thanks to Jannes Slomp for summarizing the message ) 32 V1.0
33 33 V1.0
34 Who am I? Dirk Van Goubergen Education: * MS in Mechanical Engineering (1991) Royal Military Academy, Brussels (B) * MS in Industrial Management (1997) Ghent University/Vlerick Management School (B) * PhD in Industrial Engineering (2004) Ghent University (B) Professional experience: Lecturer in Industrial Engineering at HORITO College Turnhout (B) Founder and president of VAN GOUBERGEN P&M Productivity Improvement ( * +20 years of international experience in the area of productivity improvement, Industrial Engineering, Lean/Operational Excellence and set-up reduction in different manufacturing and service industries throughout Europe, North America and Asia (a.o. Volvo, Akzo, Atlas Copco, Daikin, Masterfoods/Mars, Danone, Philips, Coca Cola, Parker Hannifin, GKN, Lays, Belgian Railways, KBC, USG/Start People, PostNL ) Research Associate at Ghent University Dept. of Industrial Management (B) * Graduate classes on Design of Production Systems and Operations Management Professor of Industrial Engineering at Ghent University Dept. of Industrial Management (B) * Grad. classes on Design of Manufacturing and Service Operations, Operations Management, Method Engineering and Work Measurement. * Guest Lecturing at Vlerick Business School (B), Antwerp Management School (B), Virginia Tech (USA) Wroclaw Polytechnic University (Poland), Polytechnic University Sofia (Bulgaria), King Mongkut University Bangkok (Thailand), Tel Aviv University (Israel), Rijksuniversiteit Groningen (NL) (Photo by Rob Gieling) 2002 Examiner for the US Senate Productivity and Quality Award for the State of Virginia (USA) Program Director Fellow in Industrial Engineering program from the Flemish Engineers Chamber VIK (B) Guest Professor at the Antwerp University (B) * Grad. Class on Cost and Performance Benchmarking Program Director of the Master in Industrial Management program at the Ghent University (B) Founder and Coordinator of the Van Goubergen Lean Academy Green/Black Belt in Lean training/certification program * until 2011 (6 th edition) organized in collaboration with Ghent University (B) Founder and President of the CENTER FOR PRODUCTIVITY IMPROVEMENT ROMANIA ( Member of the Advisory Board of the Institute of Industrial Engineers Process Division (USA) Senior Member of the Institute of Industrial Engineers (IIE) 34 V1.0
35 Van Goubergen P&M Productivity Improvement Training/Education (15%) - Implementation (85%) Some of our references 35 V1.0
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