The Importance of Lean in A Quality Environment

Quality and Lean

Lean production is an assembly-line manufacturing methodology developed originally for

Toyota and the manufacture of automobiles. It is also known as the Toyota Production
System. The goal of lean production is described as "to get the right things to the right
place at the right time, the first time, while minimizing waste and being open to change".
Engineer Ohno, who is credited with developing the principles of lean production,
discovered that in addition to eliminating waste, his methodology led to improved product
flow and better quality.

Instead of devoting resources to planning what would be required for future

manufacturing, Toyota focused on reducing system response time so that the production
system was capable of immediately changing and adapting to market demands. In effect,
their automobiles became made-to-order. The principles of lean production enabled the
company to deliver on demand, minimize inventory, maximize the use of multi-skilled
employees, flatten the management structure, and focus resources where they were
needed.

During the 1980s, the set of practices summarized in the ten rules of lean production were
adopted by many manufacturing plants in the U.S. and Europe. The management style
was tried out with varying degrees of success by service organizations, logistics
organizations and supply chains. Since the demise of many dot.coms, there has been a
renewed interest in the principles of lean production, particularly since the philosophy
encourages the reduction of inventory. Dell Computers and Boeing Aircraft have
embraced the philosophy of lean production with great success.

The ten rules of lean production can be summarized:

1.Eliminate waste
2. Minimize inventory
3. Maximize flow
4. Pull production from customer demand
5. Meet customer requirements
6. Do it right the first time
7. Empower workers
8. Design for rapid changeover
9. Partner with suppliers
10. Create a culture of continuous improvement

1. Often organizations think that it’s a matter of one or the other: quality or Lean.
Sometimes Quality initiatives take a back seat when Lean activities get going. In fact
they need to work together.

Lean methodologies give Quality an effective roadmap. Both look at the idea of
waste removal. When it’s just a Quality initiative, there’s a more narrow definition
of waste. Companies become more focused on point improvement, working on a
specific element of the end-to-end process. Six Sigma activities are good
examples of this narrow focus on specific elements.

The Lean roadmap keeps you on target, saves you from costly detours or dead
ends. You apply Quality techniques where they will best improve the end-to-end
process. Lean keeps you firmly in touch with the big picture and the customer.
Otherwise, you’ll save here and there but ultimately fail to have impact of the
production process as a whole and your customer may see very little
improvement. That’s critical in achieving significant and sustainable
improvements to your bottom line.

A lot of companies or consultants focus on one activity to improve. Whether it’s

TQM, SPC (Statistical Process Control) or 5S – they see an issue and grab the
tools one at a time. That’s point improvement.

I’m a believer that Quality and Lean fit well together. Both emerged from the
thinking of W. Edwards Deming. Product quality, considering the entire supply
chain and an emphasis on the customer are fundamental for Lean. (In fact,
Deming may have been the first person to draw a Value Stream Map as we know
it today)

Starting at the end of the 90’s, companies began to see the incredible success
that came with Lean Practice. They often looked at it as a program rather than a
philosophy and leaped to implement its tools on the job. Sometimes the Lean
advocates, in trying to lead the way seemed to be selling the program concept
rather than showing how Lean practice fits and integrates with other company
initiatives such as Quality (and Six Sigma).

If you create that kind of situation, people in the company can’t help but feel that
this is the new ‘flavour of the month’. They’ll tend to sit and ride it out. It becomes
the plan, in effect, and the whole initiative starts to make sense. People see it as
an important method to integrate activities, select which tools to use where, and
to keep the improvements tightly focused on the overall bottom line. You don’t
drop other things to do Lean, you use Lean as your thought process to run your
company. It helps you make sure the things you and your group are doing are
consistently focused on the customer. You eliminate all those activities, which
are waste. This is the only way companies will survive in the future.

Lean Advocates
Companies that succeed in Lean inevitably have Lean advocates. This can be
both a formal and an informal role or roles (depending on company size). Often
this role is that of persuader, reporter, trainer and coach all in one. Being an
advocate or coach usually means you have to depend on influence rather than
power or line authority to bring people along in the ideas and approaches.

Building a critical mass of support and effort is crucial. Without that, you can
become a lone doer, and your Lean initiative will fail. Part of that critical mass of
support also has to be from senior management. You have to get a high enough
level to say ‘yes’. They’re the ones who let you and your teams go in and begin
to improve processes.

Having an advocate doesn’t necessarily mean you’ll be successful, but without

an advocate you will fail. Your advocate needs to be passionate about the
benefits of Lean. You can’t just take someone ready to retire and make him or
her the Lean advocate because they don’t have anywhere else to go. You need
someone with a track record, someone who has already shown a passion for
reduction of waste, for process improvement.
Your advocates ‘see’ the promised land, they know and believe that there will be
significant and lasting improvements. These are the people who will show others
who have done it the old way and convert them to Lean practice.

Sometimes Lean advocates just appear in an organization. Sometimes you have

to find them. If you’re recruiting someone, there are some skills and attributes
you should look for. They need the passion for improvement. They need some
skills at influencing and to be able to make presentations to various groups. It’s
critical that they have solid credibility within the company and at many levels.
They also need a successful track record, perhaps in industrial engineering or
quality control.

Most of all, your advocates need patience. They have to keep at it and get the
message out. Other companies that have gone Lean have often had major
success. The metrics are incredible and sometimes colleagues and managers
will look at you like you’re making it up. You have to be dogged and work away at
the disbelief.

Your advocates have to be fairly sensitive to the issues facing senior executives.
They have to convince executives who often face tight resources, constrained
expenditures, pressure for short-term results, and a perennial shortage of time,
that this initiative needs more of the same. The advocates have to be somewhat
‘hard sell’ but they also have to remember the needs facing executives. Don’t put
them in a position where there’s no way out, don’t force them into a corner.
Resource allocation has to be negotiated and sometimes phased. Advocates
need to learn this and make it work for the initiative rather than against it.

Lean advocates have to be ‘doers’, especially at the beginning. They have to be

able to roll up their sleeves and work at it, particularly in the first few years. They
can’t just be someone who talks about ‘doing’, they have to have a track record
in the company for getting things done, for getting their hands dirty. It’s part of
their credibility.

Working in Committees
A committee is not necessarily a team and a team is not necessarily a
committee. This is important.

Teams have a common problem to solve. You bring together people involved in
the problem from various roles. Similarly, you would put a team in place to
improve a particular process as part of your overall Lean strategy.

Committees in Lean practice often take the form of a steering group. They give
direction and oversee what’s happening on all fronts. They have the big picture,
end to end while a team tends to focus on one element.

Cross-functional teams are very important. Sometimes people interpret Lean

solely as an engineering or senior management function. To be successful you
have to broaden the levels of involvement and you can’t forget employees on the
shop floor. They need to be part of the process. You have to communicate what
you’re doing and why. Involving shop floor employees on your Lean teams is a
critical step for sustainable success.
There is another type of group you may want to put together. This is half way
between a committee and a team. If you have Lean advocates distributed
throughout your organization, you may want to bring them together on a regular
basis. This becomes a forum to share their experiences and to come up with new
ideas for people to try. The members must avoid trying to convince the other
members to follow their way, they must be open minded and look for
opportunities to learn from each others experiences.

Business Transformation and Change

Lean activities should bring change, otherwise you’re not really embracing it. This
will be fast change, Lean improvements don’t happen at turtle speed. As a result,
you need to expect change that will happen quickly. Prepare for it.

Lots of ideas will tumble out as people start to understand Lean. Don’t kill the
ideas until you’ve had folks kick them around a bit. Use brainstorming
techniques. You’ll find that thinking and talking about ideas often makes them
better. Ideas must fit your Future State Implementation plan.

When someone asks me how you should manage change, I respond that
communication is key. Communicate the goals, what you’re trying to do and how
you’re going to do it. Let people know at the beginning, help them grab onto it as
it goes by. You need people to be on board, following the plan, not just cheery
picking issues. Once your teams are up and running, let them lead the change.
You have to have faith. They’re going to move things around, but you’ll see the
improvement in a couple of days.

Measurement
Measurement of results is critical and needs careful management. You have to
measure the right things to get the right behaviours, and to drive the consistent
direction for the company. Old styles of measurement may not be right for a Lean
environment. Appropriate measurements have to be in place so that you can
report on the changes and improvements. Senior management has to rely on
their Lean teams not only to make the changes but also to be able to measure
the effects of those changes both operationally and on the bottom line.
Measurements should also take into consideration the needs of the customer as
well as customer satisfaction. They shouldn’t be restricted to internal use or
needs.

Role of Training
Lean advocates in most companies can’t make the improvements without relying
on others. That’s where training comes in to focus. You will need more Lean
advocates and skilled Lean practitioners to get the work done. As well, you’ll
have to train some people, in depth, on specific Lean tools such as Value Stream
Mapping and problem solving techniques.

Training and communication are closely linked. You communicate what’s going
on and the training helps people understand why. The LEAD hands-on approach
to Lean training is very important. You combine theory, shop floor practice and
awareness in the sessions. As the individuals learn, operational improvement
results happen simultaneously. The theory is proven right there and then.

Lean and Different Industries

Some organizations get caught up spending big dollars on automation. It
becomes the solution to improving profit. Automation is usually about moving
pieces through areas of the shop floor at high speeds (point velocities). It’s also
about batches and inventories. What has to be remembered is that Lean practice
is about eliminating waste and producing to a customer demand. One piece flow
is a very important concept. It saves money and improves performance and there
are no large capital costs.

Importance of Lean
There’s more and more competition worldwide. It’s not a level playing field. For
anyone to keep a high standard of living, processes will have to improve. We
have to cut the waste to be more competitive. That’s the way to cut the expense
of producing goods or services. It doesn’t matter what the business is, Lean
practice can cut waste and improve performance.

Key Lean “DO”

“Do’ get people from various levels involved in Lean implementation.

Communicate and remove their fear. Tell them what to expect. Jobs will stay
although they may change. Remember the two key ingredients: participation from
the shop floor and active support from senior management. You need both to be
successful. Follow your Future State plan and don’t focus on ‘point’
improvements.

Key Lean ‘DON”T”

‘Don’t’ confuse the implementation of Lean with downsizing. You have to

separate these activities; if they are tied together you will do irreparable damage
to Lean efforts. Don’t start Lean if you’re in the middle of a downsize. People will
rebel. The organization’s nay Sayers will focus on downsize as the hidden
agenda for Lean. It’s not

Introduction
Many organizations can see the fruits of LEAN implementation reflected in
ongoing improvements to their balance sheets and increased customer
satisfaction. Yet, even as these improvements are being made, we discover that
full potential can only be reached when critical human elements are addressed at
the same time.

Impact of systemic change on human dynamics

The impact of systemic change on human dynamics, if not considered and
properly managed at the outset, can potentially jeopardize the success of your
Lean implementation. If you adopt a model or approach that is specifically
intended to harmonize change with organizational culture, you will:

 Help avoid or solve a myriad of problems, challenges and conflicts;

 Ensure that everyone involved in, and affected by, systemic change will be
better able to implement the concepts fully; and,

 Everyone will understand his or her role in attaining and supporting the new
focus of the company.
Resistance to change
Lean creates an overall positive outcome within the organization. However, most
organizations, regardless of their size and population base, will experience
reluctance or strong resistance to a change at some point in its implementation.
Successful Lean companies recognize the benefits of educating their people and
encouraging them to become involved with this new direction.

Sustaining change
Sustainability of these changes will become a reality when employees reach
comfort levels with the Lean process and the new state of the organization.
These comfort levels vary for different people or different parts of the
organization. Comfort grows with the use of Lean tools and procedures and,
importantly, with work on the human dynamics of the organization. It’s the human
side of the implementation that brings necessary ownership of the processes and
changes.

Decision-making and ‘silos’

At the value-stream mapping stage, our experience has shown us that
organizations with inefficiencies in their decision-making usually operate in ‘silos’.
For those organizations to succeed, they will have to transform to a culture of
trust and effective communication. Lean and cultural change are interwoven and
complementary when managed with skills that can be learned.

“Building Business Maturity”

The best way to achieve sustainable Lean transformation is by acknowledging
and implementing needed cultural shifts. We call this “Building Business Maturity”
and we work with LEAD in enabling organizations to tackle the human side of
change.

See how prepared your organization is for change. Look over this list and check
off the things that you currently do well. Are there areas where you want
improvement? How will you go about making those improvements?

Success ‘to do’ list

Companies who are successful at change must do the following:

 Articulate compelling vision, mission, core values and strategic objectives for
their organization;
 Build a strong organizational commitment and plan for achieving this vision;
 Communicate and understand the concepts of a new leadership model for
teams and individuals; a model that encourages organization-wide responsibility
and accountability by building trust and ‘can-do’ attitudes;
 Develop in-house mastery of the roles of coach and mentor for individuals
and teams in support of organizational maturity, individual success and increased
productivity;
 Assess, evaluate and know how to respond where needed to ensure strategic
alignment to the vision, mission, values, and goals;
 Increase productivity and decrease conflict by developing the ‘emotional
intelligence’ capabilities of employees so they understand better:

• How they see and manage themselves;

• How they see and manage organizational relationships; and
• How others see and react to them;
 Foster relationships and partnerships between teams, departments, and
individuals in the organization;
 Develop employee understanding of the important relationship between
corporate strategy, customer satisfaction, employee performance, the
organization and its culture;
 Develop high levels of proficiency in communication across the organization
(use powerful tools such as inquiry, dialogue, deep listening, and effective
feedback);
 Help employees to use ‘self’ as the pivotal lever for organizational, cultural,
and behavioral change, creating new levels of responsibility and accountability;
 Build high performance and self-management in work groups and teams as
well as individual mastery in employees to create an empowered, highly
motivated work environment.

Establishing a strong organizational commitment

I call these steps the Business Maturity Competencies for the New Leadership
Model. The model is designed to establish strong organizational commitment to a
strategic vision and the plan for realizing it. Employees share a common picture
or story about the future of the organization and communicate that vision with a
common language. The organization acknowledges agreed-upon values that
influence organizational behaviour in delivering the operational plan for achieving
its vision.

Educate and communicate

In summary, experience has shown us that an organization that has the ability to
operate in a common language with all stakeholders and has a common
understanding of the benefits of their new system will continue to thrive.
Educating the employees with effective and proper behavioural strategies results
in buy-in or ownership of any new changes.

Interdependence of systems, processes, and people

Systems, processes, and people are interdependent. Their synergy can actively
sustain Lean success when one doesn’t override the other and where there is
mutual respect for the needs of each. The whole organization needs to be on
side – human change is critical to making this happen.

Kim Salvatore is the founder and President of GAPP Management Development

Inc., a firm celebrating its third year of success supporting organization change
through consulting and training. Kim is an Organizational Development and
Project Management specialist who has extensive experience in both the public
and private sectors.

GAPP has developed a unique approach to identifying clients’ needs, providing

the program and facilitators best suited to respond to them and then conducting
follow-up using traditional methodologies and progressive Internet technologies.

Lean in Different Industries

Sometimes you hear people say at the beginning, “Lean doesn’t apply to us”.
Wrong. Lean is a way of thinking, a philosophy. It can apply to any industry. It’s
not a set of tools; it’s not a Kaizen event. There are many tools that work well
with Lean and some will fit your situation better than others. Lean planning helps
you decide which to use, when and where.
No matter what your business is, you will want to add value for the customer,
eliminate waste and reduce lead-time. Whether you apply Lean in manufacturing
or in a service industry, the principles stay the same although the tools you select
may be different.

Customer Focus is Essential

In Lean practice, the customer is your number one boss. You have to give them
what they want or you lose business. If people at your company think customers
don’t know what they want, there’s probably not enough communication going
on. Your customers may not fully understand your operation’s capabilities.

Ultimately it’s the customer who defines what value they want from a product.
Your responsibility is to deliver this value on time and at the lowest possible
price. Lean helps you do that. It’s a simple equation. Eliminate the activities that
add no customer value and you will be more competitive on price. That means
more business to you.

Getting people to focus on the customer takes persistence. Communication and

training are key tools to get this going. Many organizations bring customers right
into the plant. The employees begin to know who the customer is and what they
want. When management keeps talking about the customer, employees think:
“This must be important”.

Many companies send out surveys to determine customer needs. Circulating the
results or pinning them up on bulletin boards helps get the message out. This
shows which features add value for the customer. That’s what the customer will
pay for.

The Value Stream Map (VSM) you develop in Lean starts with the customer and
works back through the production process. VSM is all about identifying value
added and non-value added steps and activities. Your Future State Map should
plan production process around only those activities that lead to what the
customer will pay for.

Change Management
Communication is key in managing the change process. You’ll find a lot of fear in
the plant. People will be worried about losing their jobs. It’s like one of those
‘urban myths’. They’ve heard of the one in a hundred company that used Lean as
an excuse to downsize rather than the ninety-nine others who were successful
and grew. Any company that takes that shortsighted approach and cuts jobs
doesn’t get it. Their benefits won’t be sustained – they’re not thinking about
growth.

Most successful Lean organizations actually announce that people won’t lose
their jobs through continuous improvement – jobs may change but growth is the
goal. If an organization feels that it has to lay off employees because customer
demand has eroded or the company has failed to be competitive, it should do the
layoff before starting Lean implementation. Use Lean to get the plant back into
competitive shape afterwards.
The key is to dissociate Lean from any downsize activity. People have to be
onside, working together to make improvements and move forward. Fear
destroys that momentum.

People fear what they don’t understand. Understanding comes through training
and then seeing the results right away. The key is to learn by doing, whether it’s
Value Stream Mapping or Continuous Flow, for shop floor or office. Encourage
them to roll up their sleeves and get into it.

The best tool for change management is involvement. You need people from all
areas and from all levels of the organization working together to eliminate waste
and identify true value-added activities. It means working more productively, not
necessarily harder.

The Role of Lean Advocates within the Organization

Lean Advocates need to be energetic and optimistic. They’re selling something
new to the company even though Lean itself isn’t new. It’s been proven effective
over and over in organizations across North America and worldwide. However it
may be new to your company, and the advocate will be challenged by senior
management to ‘sell’ the benefits of going Lean.

You’ve heard it many times, but it’s important to remember that Lean requires a
different mindset. The advocate for Lean has to be prepared for questions, be
patient and willing to explain the concepts more than once to senior managers.
They will want solid answers. The advocate has to be more than an enthusiast;
he or she has to be extremely knowledgeable about the subject.

A Lean advocate also has to provide motivation. It’s important to keep reminding
senior management of the long-term benefits of Lean practice. Traditional
manufacturing culture is most comfortable in fire fighting mode. When a big ‘fire’
breaks out, it can push other initiatives, even Lean, to the back burner. It’s critical
to keep people motivated and stay on track in order to achieve sustainable and
permanent improvements.

Determination is a big part of the advocate’s make up. You will always hit
obstacles when you introduce something different. People will say things like:
“That won’t work here”, “Our workforce is different”, “Our labour requirements are
different”, or “That only works for the XYZ type of industry”. You have to be
determined and well prepared in answering these objections with the facts.

A Lean advocate could come from almost any department in an organization.

Common choices are often operations, quality, engineering or finance. The
advocate will recruit others to the team who complement his or her experience
and skills. I’ve seen successful Lean advocates come from shop floor operations,
maintenance, engineering, quality and finance. In fact you need to build Lean
teams from all these areas. A broad range of expertise is critical for the Lean
problem solving you do.

As I said earlier, Lean requires a different mindset. Your advocate needs to be a

learning kind of person, open minded to possibilities and opportunities. He or she
has to help people look at value from the customer’s point of view. How often do
you hear people in the plant say “We could do so much better if it weren’t for the
customer, if we didn’t have to do ‘x’ or ‘y”? Once the organization starts Lean
implementation, people start asking questions like “Is this what the customer
wants?” or “Will the customer think this has value? Will they pay for it?”

Training to Become Lean

Training leads to involvement and increases communication. It helps people
understand ‘why’ and helps them acquire Lean skills. Most importantly, it’s about
learning on the job. You learn it and do it at the same time. That’s crucial for
success.

The important thing is to train only when you need to, when it’s time for people to
actually use the tools on the job. There should be no lag at all between learning
and application.

At LEAD we teach you how to do the training yourself, in your plant. Our
workshops lead to results. Our goal is to teach people how to get those results
themselves. We’re not consultants telling companies what to do.

Most people at the beginning aren’t sure what tools to use or how to use them.
That’s what the workshops teach – how to make those decisions for yourselves.

After two LEAD Continuous Flow workshops at the Hermes plant, we went on to
do ten of our own and it’s still ongoing. You get top grade training for your people
so they in turn can train others in your plant. Your only cost is time and you get
home grown trainers who are an integral part of your organization.

On Joining LEAD
What I liked so much about LEAD is that they were totally focused on getting the
knowledge out there. They don’t hoard the information; they’re interested in
seeing companies succeed by their own efforts. LEAD training makes sure they
know how to do it right.

LEAD isn’t trying to create dependencies. They’re there if you need some advice
or more training but their whole focus is to enable you to do it yourself.

The other thing that impressed me was their incredible knowledge of the field.
These guys have been there and done it. I can’t overemphasize how important
that is.

Lean in Atlantic Canada

The interesting thing about Atlantic Canada is the high level of education in the
workforce. There are a proportionately high number of post-graduates in Halifax
compared with any other city in North America. This highly educated workforce is
a tremendous advantage.

We also have excellent trade access to the United States and overseas. All of
the ingredients are here for great business success. Yet people often think that
Atlantic Canada is disadvantaged compared to the rest of Canada. It doesn’t
have to be that way.

However, one key issue is that many companies here don’t have the right
thinking for success. Manufacturing is still doing batch and queue processing
rather than one-piece flow. The critical customer focus isn’t in place. Lean can
help change and improve the way we work, make us more competitive, more
successful.

Partnerships for initiatives are part of our culture here in Atlantic Canada.
Working together we can be more powerful, get more things done.

Saint Mary’s University has just put together an exciting Lean partnership to
introduce Lean to companies here. ACOA, APICS, Industry Canada and LEAD
are all involved (read Connie Bean’s interview on the project here on this web
site). That’s a great way to bring new ideas and training to a region.

Another wonderful advantage here in the east is that we have so many non-
competing industries. That provides a real opportunity to work together and to
share ideas. It will make Lean much more successful and in a shorter period of
time.

Kaizen

Masaaki Imai, 75, is the father of Gemba Kaizen, or the concept of

continuous
improvement at the work place. He is also chairman of the Kaizen
Institute, established in 1986 as a
global management consultancy company to help Western companies
implement Gemba Kaizen. Imai's
client list includes big names like Renault, Bosch, GM (USA and Europe),
Siemens and Philips. In
India, the Kaizen Institute of India has a list of 11 clients including the Taj
Group of Hotels, Milton
Plastics Ltd, Liberty Shoes and Hi-Tech Gears Ltd.
Imai has authored several books including Gemba Kaizen - a common
sense, low-cost approach to
management, which won the Shingo Prize and Kaizen-the key to Japan's
competitive success.
In the Capital this week to address a seminar for CEOs and senior
managers on `JIT through Gemba
Kaizen approach', and a series of meetings with leaders of business houses
and bodies like PHD
Chambers of Commerce and Industry, NPC and ACMA, Imai took time
off to chat with The Financial
Express. His most important message to Indian managers: Get close to the
realities of the shop floor,
where all the action is. Excerpts from the interview:
What exactly does Gemba Kaizen mean?
Gemba means `real place' meaning the area where value is actually added,
while Kaizen means continuous
improvement. In a manufacturing company, Gemba would be the shop
floor, whereas in a service
company it would be the area where there is direct interaction with the
customer. So Gemba Kaizen means improvements in the work place to
reduce costs, cut out waste, improve quality and productivity without
using expensive technologies. Gemba Kaizen is a roadmap to global class
standards.
How relevant is Gemba Kaizen in the Indian context?
Very relevant. In fact, I would like to put across this message to Indian
managers: Maintain close contact with the reality of the gemba or shop
floor. The Indian manager is very intelligent and well informed on matters
concerning technology and management practices. But what he lacks is
actual practical knowledge. Managers need to be more hands-on, they
need to step into that imaginary circle on the shop floor and silently
observe the functioning to identify the area that needs improvement,
before proceeding to rectify matters.
What are the impediments to implementing Gemba Kaizen?
The greatest impediments are the misconceptions regarding the theory,
primarily that it needs to be done by workers, not managers, whose job is
to `supervise'. Typically, management of shop floors has been left to
middle managers and supervisors and very few senior managers are aware
of all the changes and problems in this area. The late Taiichi Ohno, VP of
Toyota and father of the Toyota Production System, made it a practice to
visit the shop floor 30 times a day.
What is your recipe for its successful implementation in India?
No company can afford to undermine the importance of kaizen. In most
Indian companies, top management is upbeat on management and quality
concepts. The commitment is clearly there, but unfortunately it usually
gets limited to `poster management', with a plethora of `dos and don'ts'
posters plastered all over the factories. They need to be more in touch with
reality and be ready to dirty their hands. If Gemba Kaizen is implemented
properly, Indian companies can attain world class status in 3-5 years.
How different is the theory in actual practice in Japan, the West and
India?
Companies are the same everywhere. They are usually not in touch with
reality. What differs is really the time it takes for effective translation of
the concept to the shop floor. Times of crisis are usually the best time to
implement kaizen. That explains its success in Japan, where there has been
no dearth of crises. In the modern world, with obsolescence levels
increasing and the demands of the modern consumer getting more
stringent and impatient, Gemba Kaizen is becoming all the more relevant.
 Up front planning is essential to success with 5S

5S remains the most popular improvement program out of all the Lean
Manufacturing Toolbox. This is quite understandable, because it is simple,
effective, and relatively quick to implement. But many implementations run into
trouble, typically producing results that are less than anticipated, or even being
abandoned.

One of the main reasons for program failure is poor planning. Perhaps because
of the apparent simplicity of 5S, managers fail to plan properly, and simply launch
the program. But without an adequate vision of how the 5S program will function
within the company, without specific, measurable goals, and without adequate
resources to support 5S needs and ideas, the implementation usually gets lost in
minor details, and 5S, rather than helping people do a better job, degenerates
into a welter of rules, policies, and procedures that actually interfere with people’s
jobs.

Planning for 5S implementation should follow good project management

procedures. As with all significant programs a company launches, there must be
both a complete understanding of it, as well as commitment to seeing it succeed,
at the top. This is because, to succeed, a program must be completely
integrated into the overall strategy of the company. In line with this strategy, a
vision for what needs to be accomplished, and most importantly, how the
company will benefit, must be developed. The vision must be strong, and
through good communication, shared by the whole company. A strong vision will
answer the question “what should we do now?” whenever a new stage in the
program is reached, and keeps implementers and users focused on the benefits
even when trouble occurs. Secondly, the program must have goals. Poor
implementations take the approach that you get what you get. This results in
everyone going in different directions, and accepting a wide variety of results as
satisfactory. With clear goals, resources and time can be allocated, and it is
possible to measure progress, and direct efforts efficiently. Correspondingly,
ideas for improvement can be presented, along with the time and resource
requirements for implementation, knowing that they will be approved. Nothing
kills enthusiasm and progress faster than when implementation teams second
guess management as to what they will approve, and how quickly they will act.
In fact, providing implementation teams with their own budgets, which they can
spend as they see fit, is a strong way to show commitment and trust in the
shared vision, and to get fast results.

The second most common mistake of 5S implementation is the failure to train

adequately at the outset. Upper management and other members of the steering
group must understand 5S, not only in a theoretical way, but from practicing 5S.
This starts with a thorough review of the 5S program, implementation methods,
team concepts, and the role of management. Practical exercises, or a real world
pilot project, should follow. Since most steering group members work in the
office, they should also apply 5S to their own office or work area. These
activities not only provide a practical understanding of 5S and the kinds of issues
that will need to be addressed throughout the implementation, but also
communicates the commitment of upper management to 5S to the entire
company. The next group to be trained is the implementation team members.
They will be supervisors and team leaders, typically. They require the same
training as upper management, as well as additional training in leading teams.
They will need extensive practical training, through pilot projects. A good
approach is to carry out one pilot program under the leadership of the 5S advisor
(a consultant or internal resource fully experienced in all aspects of 5S), and then
to carry out a second one on their own. When the results are satisfactory, the
program can then be launched company wide. Again, all team members whether
they participate in the implementation, or simply sustain the system once it has
been put in place, must understand the vision and goals, and how the 5S system
will work in their work area. The pilot projects are key in this regard, as they
provide an example of what 5S is, as well as having served as the proving
ground for the standards and auditing process that will ultimately ensure the long
term success of 5S.

5S-CANDO
Clearing up, Arranging, Neatness, Discipline,
Ongoing improvement
The basic concept, per Rudyard Kipling's The
'Eathen

The 'eathen in 'is blindness bows down
to wood an' stone;
'E don't obey no orders unless they is 'is
own;
'E keeps 'is side-arms awful: 'e leaves
'em all about,
An' then comes up the regiment an'
pokes the 'eathen out.
Gettin' clear o' dirtiness, gettin'
done with mess,
Gettin' shut o' doin' things
rather-more-or-less;
Not so fond of abby-nay, kul,
nor hazar-ho,
Learns to keep 'is rifle an'
'isself jus' so!

All along o' dirtiness, all along o' mess, ...Keep away from dirtiness --
keep away from mess.
All along o' doin' things rather-more-or- Don't get into doin' things
less, rather-more-or-less!
All along of abby-nay, kul, an' hazar- Let's ha' done with abby-nay,
ho, kul, an' hazar-ho;
Mind you keep your rifle an' yourself Mind you keep your rifle an'
jus' so! yourself jus' so!

abby-nay = "Not now." kul =

"Tomorrow." hazar-ho = "Wait a bit."

5S-CANDO

1. Seiri (clearing up)

o Your wastebasket is your friend.
 Disney theme parks have
plenty of waste receptacles.
 At Ford's River Rouge plant,
a waste container was within six
steps of any position (Norwood,
1931).
o E-bay also is your friend
 Serviceable but unwanted
equipment (even forklifts and
machine tools) can be auctioned off.
o Three-tier classification
 Frequently-used items at
workstation
 Regular use: near workstation
  Rare use: keep outside the
work area
2. Seitori (arranging)
o Every tool should have a place.
 Socket wrench boxes have
specific niches for each socket
 Draw outlines on the wall for
each tool
3. Seiso (neatness)
o Keeping everything clean makes it
easier to locate leaks and dropped parts. It
also keeps dirt out of the equipment and the
product.
o Cleaning was continuous at Ford's
River Rouge plant.
 This was where the long-
handled window cleaning sponge,
which has a channel through its
handle, was invented.
 Air suction systems provided
"scores upon scores of invisible
brooms that not only keep air and
lungs clean, but greatly reduce the
task delegated to [brooms] of corn
and fibre" (Norwood, 1931. Ford:
Men and Methods).
4. Shitsuke (discipline)
o Per Kipling, "Mind you keep your
rifle and yourself just so."
o Preventive maintenance as well as
cleaning must be routine. Build them into
the work instructions.
 Maintenance logs show that
cleaning and preventive maintenance
were performed to schedule.
 ISO 9000 prescribes a strict
interaction between work
instructions (procedures or 3rd tier
documents) and logs (quality
records)
o Frederick Winslow Taylor's Shop
Management (1911) called specifically for
scheduled preventive maintenance.
5. Seiketsu (ongoing
improvement)
 o Ongoing improvement is, as we have
seen, driven by standardization and best
practice deployment.
o Do not let friction or waste remain
part of any job by "working around" the
problem.

Seitori (arranging)

Plate VII says, "A section of the reverse tool room in a plant under
scientific management. At the right, notice that the
mnemonic symbol for each tool is on a little card above it."
The benefits of "seitori" were well known to American
manufacturers:

In the average shop, these bolts [for

clamping work to machines] lie around on
the floor: rarely is there a full assortment
accessible. Needing four-inch [102mm]
bolts, say, the mechanic looks around for
them, fails to find a full set, and concludes to
use six-inch [152 mm] bolts. Blocking up is
necessary and he probably has to screw the
nut down an extra inch. Because of the rough
care the bolts get, the thread may be
damaged, and he has trouble in getting the
nut down. In many cases, as motion studies
and observations have shown, he consumes
from ten to twenty times as many minutes as
the clamping ought to take.

Now, each instructions card specifies, in

hundredths of an hour, the time allowed for
setting the work in the machine. Such
specification would be useless, of course,
unless the proper blocks and bolts were
provided for the workman's use. So the planning
department sees that a full supply of blocks and bolts of
varying lengths are kept in the tool racks. With each job,
the mechanic receives the particular size of bolt best suited
to the task, just as though these were standard machine
tools instead of accessories usually neglected. Furthermore,
before they are restored to the rack after use, every thread
and nut is inspected to make sure they are still in perfect
 condition. Try any bolt in the tool room and the nut turns
easily under your fingers.

Except by comparison of the time consumed in certain

operations before and after the reorganization, no
conception can be gained of the unbelievable wastes
attending some of the less common processes. …Now
every part has its symbol and its place in the stores room;
every operation in assembling has been standardized (The
System Company. 1911. How Scientific Management is
Applied. London: A. W. Shaw Company, Ltd.).

Seiso (neatness) at the Ford Motor Company and its

subsidiaries

The first job was to clean up— that is always the first thing
to do in order to find out what you are about. … There is a
tradition that all kinds of mining have to be dirty. We
cannot afford to have dirt around— it is too expensive.
This [mining] camp looks like a suburban colony—
everything is painted and kept painted a light color, so the
least bit of dirt will show. We do not paint to cover up dirt
— we paint white or light gray in order that cleanliness
may be the order of things and not the exception (Henry
Ford, 1926, Today and Tomorrow, 48).

Put all machinery in the best possible condition, keep it that

way, and insist on absolute cleanliness everywhere in order
that a man may learn to respect his tools, his surroundings,
and himself.
...Give a man a good tool— a fancy polished tool— and he
will learn to take care of it. Good work is difficult
excepting with good tools used in clean surroundings.
(Today and Tomorrow re: the Detroit, Toledo, & Ironton
Railroad)

Shitsuke (discipline)

Preventive maintenance at the Ford Motor Company:

"…machines do not often break down, for there is

continuous cleaning and repair work on every bit of
machinery in the place."

The gangs of mills are on individual arbors, so as to be

removed from the machine and replaced as unit assemblies.
 Five tool-grinders are constantly employed in keeping up
these gang-mill assemblies, several complete sets of which
are used, so there is no delay in changing.
The regular practice is to change these gang-mill
assemblies once in four hours, removing them from the
milling machine before the work shows any sign of not
being within gauge limits (Arnold, Horace Lucien, and
Faurote, Fay Leone. 1915. Ford Methods and the Ford
Shops. New York: The Engineering Magazine. Reprinted
1998, North Stratford, NH: Ayer Company Publishers,
Inc.)

Frederick Winslow Taylor on scheduled preventive maintenance

Notices "…come out at proper intervals throughout the

year for inspection of each element of the system and the
inspection and overhauling of all standards as well as the
examination and repairs at stated intervals of parts of
machines, boilers, engines, belts, etc., likely to wear out or
give trouble, thus preventing breakdowns and delays"
(Taylor, Frederick Winslow. 1911. Shop Management.
New York: Harper & Brothers Publishers)

The machines of the country are still driven by belting. The

motor drive, while it is coming, is still in the future. There
is not one establishment in one hundred that does not leave
the care and tightening of the belts to the judgment of the
individual who runs the machine, although it is well known
to all who have given any study to the subject that the most
skilled machinist cannot properly tighten a belt without the
use of belt clamps fitted with spring balances to properly
register the tension. And the writer showed …that belts
properly cared for according to a standard method by a
trained laborer would average twice the pulling power and
only a fraction of the interruptions to manufacture
[downtime] of those tightened according to the usual
methods. The loss now going on throughout the country
from failure to adopt and maintain standards for all small
details is simply enormous (Taylor, Frederick Winslow.
1911. Shop Management. New York: Harper & Brothers
Publishers).

Under ISO 9000,

• Work instructions should specify scheduled preventive

maintenance. ("Say what you do.")
 • Maintenance logs (quality records) must show that it has been done
according to the schedule. ("Do what you say.")

WHAT IS 5S, AND WHY DO WE WANT TO DO IT?

5S represents 5 disciplines for maintaining a visual workplace. These are

foundational to Kaizen and a manufacturing strategy based "Lean
Manufacturing" concepts. 5S is the starting point for improvement
activities that ensure our company’s survival.

The 5 disciplines are:

1. SORT - Remove all items from the workplace that are not needed for
current operations. Leave only the bare essentials.

• Targets excess inventory, obsolete items, quality defects, unneeded

tools/equipment
• Will use red tags, local and central red tag holding areas; Account
for discarded items
• Take before and after pictures

2. SET IN ORDER – Arrange needed items so that they are easy to find,
use and put away.

• Consider motion economy

• Use painting, outlining and signboard strategies, Visual 5S

3. SHINE – Sweeping, wiping-off equipment, painting and assuring

everything stays clean.

• Create 5S schedules for painting

• Must create cleaning inspection checklists
• Create current and future shine targets

4. STANDARDIZE – Method to maintain the first 3 disciplines (sort, set-

in-order, shine)

• Prevention steps for clutter-suspension, incorporation, elimination

• Integrate 3S duties into regular work with 5S job cycle charts, 5
minute 5S, visual 5S activities

5. SUSTAIN – A top-down support of the ongoing 5S process.

 • Must create the conditions to support 5S
• Allocate time
• Create awareness
• Provide a structure
• Show support
• Offer rewards and recognition
• Encourage training/participation

The First Discipline

SORT
Sort: This means that you remove all items from the workplace that are
not needed for current production. You must first ask, "what job is
performed here?" Leave only the bare essentials for the job. When in
doubt, toss it out!

Why?... When the sort discipline is well implemented:

• problems in the work "flow" are reduced / throughput is

increased
• communication between workers is improved
• product quality is increased
• wasted space is reduced
• wasted time looking for parts or tools is reduced
• overstocking is avoided
•

The Red-Tag Strategy:

This is simply a method for identifying potentially unneeded items in the

factory or warehouse, evaluating whether they are needed, and dealing
with them appropriately. As implied, red tags are used to identify items
removed from the work area for evaluation.

In order to implement red-tagging effectively, a red-tag holding area must

be created. People tend to be more ready to let go of questionable items if
they are not needed after a given time of review. A red-tag holding area is
an area set aside for use in storing red-tagged items that need further
evaluation. Each department or production area that participates in red-
tagging should create a local red-tag holding area to manage the flow of
red-tagged items within the department or local production area. If items
are not needed in the area, they can be reviewed in a central red-tag
holding area, created to manage the flow of items that cannot be disposed
of by individual departments.

There are seven steps in the red tag process:

1. Launch the red tagging project

2. Identify red tagging targets (specify the types of items and the
physical work areas to be evaluated)
3. Set red-tagging criteria. Ask three questions:
o Is it needed?
o In what quantity?
o Where does it need to be located?
4. Make red-tags (note: these are already made; see Administrative
Assistant)
5. Attach the tags
6. Evaluate the tags
7. Document results of red-tagging

What is my job function(s)?

Think of an item in your workspace that is not needed.

The Second Discipline

Set-In-Order
Set-in-Order: Once Sort has occurred, this step ensures tools needed for a
job are in place and arranged so that they are easy to find, use, and put
back.

Why? It eliminates many types of waste in production and clerical

activities. Examples are waist of looking for a tool and motion waste.
Another important reason to Set-in-Order is that orderliness is the core of
standardization. The workplace must be orderly before standardization can
be implemented effectively.

Visual controls: Devices used as you Set-in-Order to communicate the

standards for how work should be done. Make it obvious at a glance!

Implementing:

1. Decide on appropriate locations

 • Consider how to store tools and jigs
• Consider principles of motion waste.
o Motion waste is any motion in a process that does not add
value. Look for wasted motion and analyze carefully why
this motion waste has occurred. This analysis can help us to
discover methods of manufacturing that approach the zero-
waste mark.
o The 5S Map is a map of the work area used to evaluate
current locations of parts, jigs, tools, equipment, and
machinery, and to decide best locations for these items
based on these two sets of principles.

2. Identify best locations once they have been decided.

(A place for everything, everything in its place!)

• Signboard and Painting Strategies – Identify: What? Where? How

many?

• 5S Map – Map out locations of equipment in the work area

• Color-Coding Strategy - Distinguish use of tools, parts, etc. by

color

• Outlining Strategy – Draw outlines of tool/jig storage locations

Can I think of an example of how to use color-coding?

An example of signs is tool rack labels. Think of any more?

The Third Discipline

Shine
SHINE: Keeping everything clean and readily usable.

Why? One of the key purposes of cleaning is to keep all equipment in top
condition so that it is always ready to be used. When the third pillar is not
well implemented, the problems that arise include: poor employee morale,
safety hazards, equipment breakdowns, and an increased number of
product defects.

Implementing: (5 Steps)
1. Determine Shine targets – What is to be shined?
2. Determine Shine assignments – Who is responsible?
3. Determine Shine methods – How will it be shined?
4. Prepare Shine tools – What is needed to shine?
5. Implement Shine (everyone’s responsibility in a work area)
1. 5S Schedules – Have a plan…
2. 5 Minute Shine – Quick & easy!

Make it a habit! Once daily cleaning and periodic major cleanups

are a habit, inspection is incorporated into the Shine procedures.
This turns "cleaning" into…

"Cleaning/ Inspection."- Places a greater emphasis on the

maintenance of machines and equipment.

Implementation Steps:

2. Determine cleaning/inspection targets

3. Assign cleaning/inspection jobs
4. Determine cleaning/inspection methods
5. Implement cleaning/inspection, using all your senses to
detect abnormalities (unusual vibrations, odors, etc.)
6. Correct equipment problems by repairing all defects
immediately or (if your team can’t repair) making a formal
request to the maintenance team to schedule the repair.

Implementation Tools:

Cleaning/Inspection Checklists

Checklists of maintenance activities needed.

How can using all my senses find problems when I

clean/inspect?

The Fourth Discipline

Standardize
 STANDARDIZE: This means creating a consistent way to carry
out tasks and procedures. Everyone does it the same (documented)
way. Make it a habit!

Why?: Without Standardize, improvements made with the first

three disciplines would soon be lost as new employees are hired,
people forget, etc. Standardize ensures sort, set-in-order, and shine
are maintained in their fully implemented state.

Implementing: Done in two steps: Making It A Habit and

Prevention

Making it a habit:

7. Assigning three discipline job responsibilities

8. Integrating three pillar duties into regular work duties
9. Checking on the maintenance of the three pillars

Everyone must know exactly what they are responsible for doing
and exactly when, where, and how to do it. The five disciplines
must become part of the normal work. 5S work must be brief,
efficient, and habitual. ( K.I.S.S.)

Tools

o 5S Job Cycle Charts (known responsibilities)

o Visual 5S (makes status of 5S obvious at a glance)
o Five-Minute 5S (brief, efficient, habitual)
o Standardization Level Checklist (evaluation; tours)
o 5S Checklists for Factories.

Prevention: (Taking it to the next level)

Unbreakable standardization means making Sort, Set in Order,

and Shine procedures "unbreakable", where it’s difficult or
impossible to do a task wrong. The three aspects of unbreakable
standardization are:

Preventive Sort procedures - find ways to prevent unneeded items from

accumulation in a workplace by keeping them from entering it!

Preventive Set in Order procedures – Keep Set-in-Order from breaking

down by making it difficult or impossible to put things in the wrong place.

1. Use the 5 "Why", 1 "How" approach (5W1H)

2. Suspension
 3. Incorporation
4. Elimination

(3) Preventive Shine procedures - Treat problems at the source.

Get as close as you can to the problem.

How can the 5W1H tool be used to keep an area from getting
dirty?

How can visual 5S be used to help distinguish normal vs.

abnormal?

The Fifth Discipline

Sustain
The fifth pillar, Sustain, means to make a habit of properly maintaining
correct procedures over time. No matter how well implemented the first
four disciplines are, improvement gains will be lost and 5S doomed to
failure without a commitment to sustain it! 5S does not end at the
conclusion of the 5S event. We must make 5S part of our work "culture"
and a thorough habit.

Why? Ask yourself, "In your life in general, "why do I commit to

sustain a particular course of action?" Usually, your decision is
based on greater rewards for doing something than not doing it.
Similarly, the rewards of implementing the five pillars are greater
for you than the rewards if they are not!

The last discipline is unique in that it cannot be implemented by a

set of techniques. Neither can Sustain be measured. However,
conditions and structures can be created to help Sustain the
commitment to 5S activities.

Tools to help Sustain:

o 5S Slogans
o 5S Posters
o 5S Photo Exhibits
o Story boards
o 5S Newsletters
o 5S Pocket Manuals
o 5S Department Tours
o 5S Months
o Success Stories
 o Etc. (What motivates? Be creative!)

You may be able to think of a few you’ve already seen used!

Why is this discipline important?

Am I willing to commit to 5S in order to reap the benefits?

How can I influence the culture of my work environment to help

"make it a habit"?

5S PROJECTS AGENDA
5. What is 5S, and why do we want to do it?

6. Define the target of our 5S project:

7. Define the schedule for performing our 5S project:

8. A meeting will be held prior to each day’s activities to plan

and schedule what will be done (daily). The conclusions of
chapters 3-7 in 5S for Operators handbook &/or the
training summary pages will be used to structure each day’s
activities.

9. Overview training of project members in 5S (Day 1 only).

10. A wrap-up meeting will be held to review what was

accomplished (daily).

11. Review and document results (at conclusion of 5S project)

Note: "Before" pictures should be taken on day 1

12. Celebrate conclusion of 5-s effort and results!

Note: This usually includes a picture board and a tour

 Another version
There is another version of 5S that is in circulation.
There the list goes as follows.

1. Sort: Decide which things you need to accomplish your work.

2. Straighten: Decide what are the things you do not need. You should get
what you need in 30 seconds.

3. Sweep: perform maintenance regularly.

4. Standardise: Standardise the procedures. Anybody should be able to

follow them.

5.Self Discipline: Make the employees a party to the whole programme.

Educate them.

Results can be
Reduced accidents because of cleaner environs.
Improvement in the morale of the workers due to the elegance of the
place.
Reduced lead time and enhancement in production.
Better inventory management.
Improved discipline at work.
Better impression on the visitors. And better business.

And also
If not understood properly it can boil down to periodical cleaning only!

Events in the activity.

Decide upon the teams in each of the units.

Get all the individuals trained.
Give them reading material and also the control boards.
Variation in each place to be made clear.
Safe working environment. Material under protection.
Apply your health and safety standards to those of 5S. Synergise.
Appoint responsible people as leaders.
Apply the methods to individual work place.
Keep reviewing occasionally.

Be careful that the following does not happen.

5S is a program that is not separate from the value stream plan. The 5S
program gets intermingled with all of the other programs that the company
is currently implementing. It should be treated as something that will
improve and add to all the other programmes.

 As a program, 5S enthusiasm peters out after awhile and it disappears.

Not too many have been able to truly 'sustain' it.
 Making it a plant-wide program draws huge resources that could have
been used to improve the value streams according to the value stream
plan.
 You could be conducting 5S routines on areas that will radically
change or disappear according to the value stream plan. (Wasted effort).
 Many 5S programs don't consider ergonomic analysis which is an
integral part of having things in the right place.
 Massive training is conducted, but the skills not immediately used by
everyone, causing waste and low knowledge retention.

5S Is Not Really Bad

 Primarily, 5S attacks the wastes of motion, and transportation. It does
this by removing items that are in the way, and placing needed items in the
right place to reduce motion and transport.

 It helps remove variability (allowing production to takt) by

standardizing where things can be found, and making everything visual.
 As a by-product it improves working conditions by making things
cleaner, brighter, and safer.

Having said all this, the most effective way to implement 5S for your
money is to implement it as value stream improvements are being made.
Not try to do it as a program. Each time a cell is created, or a pull system
implemented, the team should use 5S principles to eliminate more waste.
They should combine this with some sound ergonomic analysis too. This
way you eat the elephant a bite at a time, rather than trying to swallow it
at once.

The role of a 5S Program Leader becomes one of being the expert advisor
to the implementation teams and the value stream managers, rather than
trying to manage a large 5S program. As the teams do a kaizen, you are in
there teaching them about 5S in a just-in-time manner. They then
immediately practice what you taught, and thereby retain it.

Case Study
An executive at a company recently told that their 5S program did not
yield the results that they had expected. Instead of implementing it as part
of a value stream plan, 5S was implemented as a program. Things got
brighter and cleaner - and the employees were happy with the better
environment - but there was little actual return on the investment of time
and money on the bottom line. In hindsight, the executive wished that 5S
could be implemented as part of the value stream plans.