BLOG
BLOG
Mar 22, 2022 | Time to read: 6 min
Every business searches for systems to make its people more productive and efficient. As a business grows, so does the demand for efficiency — tribal knowledge is replaced by mature systems and processes. In manufacturing particularly, as production volume increases, so does the pressure to make things faster, better and cheaper, stretching resources to their maximum.
Business leaders seek to find the best way to meet their demands within the boundaries of their limitations (this is the theory of constraints at its core). Henry Ford had the goal of making his Model T in such an efficient manner that his automobile was affordable for the average family. Ford used Frederick Taylor’s principles of scientific management to create the first true assembly line, and therefore the first modern mass production system. Every contemporary manufacturing system is deeply rooted in Taylor’s and Ford’s contributions.
Since Ford’s assembly line, manufacturing systems have developed further. The goal for the modern mass producer evolves from simply being able to meet demand, with a pre-established acceptable number of defects, problems, downtime, etc., to seeking perfection through continuous improvement of all processes. I have seen companies use different methods of project management and hybrid efficiency models in order to rein in their costs and quality.
It’s not uncommon for larger manufacturers to have entire corporate sections devoted to implementing efficiency systems throughout their organizations in all aspects of the business. Indeed, aside from a company’s annual quality audits (internal and external, depending on regulatory requirements), many companies will also have audits from their efficiency department to ensure that the standards are being met.
A breakdown of modern improvement method systems
No matter what models and systems your company has chosen to use, I’m willing to bet their basis is rooted in one or several of these modern methodologies (which all build on and steal from each other):
Six Sigma
Six Sigma was originally a method for quality control, developed around 1986 at Motorola by Bill Smith. It was developed mainly as a quality system in which statistical analysis is used to reduce variation in a process. To do this, a rubric was created in which problems were framed in one of two ways:
DMAIC (Define—Measure—Analyze—Improve—Control), for improving existing processes
DMADV (Define—Measure—Analyze—Design—Verify), for improving new products and processes
The framework had the goal of quickly and predictably defining a path for improvement by establishing a statistical bell curve for a given process and then removing the reasons for standard statistical deviations.
The Lean Method (Toyota Production System)
The term “lean” was first introduced in the 1980s and was used to describe Toyota’s business model, or what is popularly known as the Toyota Production System (TPS). This system is all encompassing within manufacturing, focusing on maximizing efficiency and throughput. It sees the whole of the organization as a house built on specific principles and tracking the smooth flow of resources throughout (Figure 1). Some of the key tools in TPS include:
5S – Cleaning up to make problems visible and getting organized
Kaizen – Continuous improvements through acting on suggestions
Kanban – Demand pulls products through the production process, resulting in a just-in-time system of inventory and production
Poka-Yoke – Mistake proofing
5 Whys – Root cause analysis
Genba – Going to the place where value is (leadership walks)
TPM (Total Productive Maintenance) – Proactive and preventative maintenance done in a way that maximizes the productive operation of machines and equipment
Visual Management – Using visual labels, signs, tags, and other cues to improve communication
These all sit on top of the principle of standardized work, where a process is dependably done the same way, with the same resources, repeatedly, no matter who is doing the work.
Lean Six Sigma
Lean Six Sigma was the next evolution of Six Sigma building off of principles of TPS. It was developed with the idea that it is not enough to focus on just efficiency or purely reducing variability. It takes the tenets of the other systems and introduces a focus on reducing waste. Waste is defined as anything that does not add value. Specifically, Lean Six Sigma defines eight kinds of waste:
Defects – Products that don’t meet quality standards
Overproduction – Exceeding demand or producing more than was ordered
Waiting – Process bottle-necks and downtime
Non-Utilized Talent – Ineffectively using or misallocating human resources
Transportation – Inefficient shipping methods
Inventory – Holding on to a surplus of product or raw material
Motion – Unnecessary moving of product, material, or people
Extra Processing – Doing more work than is needed
Lean Six Sigma combines TPS methods with the DMAIC model to powerful effect. It has also popularized its certifications within industry. You’ve all seen the martial arts-like ranking system for Lean Six Sigma certifications (Figure 2):
Incidentally, the Lean Six Sigma ranking system is also analogous to modern ways of defining lean maturity within an organization. The lean maturity curve represents the extent to which the principles of lean are incorporated into an organization (Figure 3).
Proprietary Company Methods
Many companies have tried their hand at developing their own system. They use many of the tenets of the above methods and add or subtract to them in a modular way, creating a fit for the culture and requirements of the organization.
In this way, the Danaher Production System (DPS) evolved. DPS takes the systems above and charts their course in a high level strategy process called policy deployment. Policy deployment is a method by which companies can predetermine which areas for improvement they would like to focus on in a more predetermined and strategic way, ultimately linking back to specific KPIs and utilizing the methods of the other systems to achieve them. Danaher also made it a point to bring in other pillars to their TPS house (Figure 1), and incorporated the TPS principles into areas such as sales, finance, human resources, engineering, etc.
The Danaher Production System is very popular and likely the most well-known named system (outside of Toyota), but ultimately builds on the principles of the other methodologies. This is true of any company with its own defined system.
Many methods all aiming at improvement
These systems have been put into use over the years to great effect. Some companies, like Toyota, are near peak maturity and have fully implemented these systems into all aspects of their organizations. Some are taking a more modular approach and gradually implementing one or many of these philosophies to improve their business in some way. Businesses make the choice to implement these systems by necessity when problems arise from either demand growth or an increase in apparent problems (quality, waste, productivity, etc.).
Drishti is the perfect supplement to any lean manufacturing system, increasing the benefit exponentially of mature systems and helping establish systems like standardized work in organizations seeking to implement lean manufacturing methodologies. In our next post, we’ll discuss how to determine which lean methodology is the best choice for your organization.
