How LEAN is QRM ?

How LEAN is QRM ?
Dirk Van Goubergen
([email protected])
© 2014 Van Goubergen P&M gcv - Lille Belgium
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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 Engineering @ Ghent University (B)
In Manufacturing, Office, Service, Healthcare environments
In Belgium, Europe, North/South America, Asia
HAN University Jul 1 2014 – How Lean is QRM?
© 2014 Van Goubergen P&M gcv - Lille Belgium (Photo2b y Rob Gieling)
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The ‘Bibles’ of QRM
As an IE I can say:
Great Books !
Great Results !
HAN University Jul 1 2014 – How Lean is QRM?
© 2014 Van Goubergen P&M gcv - Lille Belgium
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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
HAN University Jul 1 2014 – How Lean is QRM?
© 2014 Van Goubergen P&M gcv - Lille Belgium
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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)
HAN University Jul 1 2014 – How Lean is QRM?
© 2014 Van Goubergen P&M gcv - Lille Belgium
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Lean in QRM Literature
HAN University Jul 1 2014 – How Lean is QRM?
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Lean in QRM Literature
(Rajan Suri, 2010)
HAN University Jul 1 2014 – How Lean is QRM?
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HAN University Jul 1 2014 – How Lean is QRM?
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Welcome to
the Wild West……
We call it ‘Lean’
(N. Modig, P. Ahlstrom)
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What is Lean?
Elimination
of
Waste?
HAN University Jul 1 2014 – How Lean is QRM?
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What is ‘Lean’ ?
A toolbox of techniques ?
A Cost Cutting approach ?
HAN University Jul 1 2014 – How Lean is QRM?
A Continuous Improvement program ?
A Strategy ?
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What is Lean? – Back to the Roots
End of 19th Century
1910-20
1930-40
Static Assembly
“Time is Money”
Flow
Process Layout
1950-…..
Mixed Model Flow
Kaizen Culture
Universal
Principles
(1982)
HAN University Jul 1 2014 – How Lean is QRM?
(1991)
(1996)
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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
4 Let the
customer
pull
2 Identify the value
stream and remove
the waste
3 Make value
flow
(Lean Thinking - Womack, Jones)
HAN University Jul 1 2014 – How Lean is QRM?
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Lean in 4 Principles
Value (for the Customer) vs. Waste
(Typical) Resource View
Flow in Value Streams
Product View
OR
Visual Management
Kaizen Culture - Learning Organisation
Striving towards Perfection
Wat is normal/abnormal?
(Workplace Organisation, Work Methods, Flow, Quality,…)
HAN University Jul 1 2014 – How Lean is QRM?
© 2014 Van Goubergen P&M gcv - Lille Belgium
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Flow in Value Streams
Red/Green
or should it be
White/Gray?
Lean vs. Traditional Improvement
Typical
Company
Traditional
Process
Improvements
Lean
Enterprise
Improvements
VA
NVA
VA
VA
Minor
Improvement
NVA
NVA
Major
Improvement
TIME
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Lean is Value Stream Driven (Flow)
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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
HAN University Jul 1 2014 – How Lean is QRM?
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It’s all about
Time ?
Toyota Production System
Best Quality - Lowest Cost - Shortest Lead Time
Through shortening the Production Flow by Eliminating Waste
Just in Time
Jidoka
“The right part
at the right time
in the right amount”
• Continuous Flow
• Pull System
• Level Production
(Heijunka)
“Built in Quality”
Flexible, Capable,
Highly Motivated
People
• Manual / Automatic
Line Stop
• Labor-Machine
Efficiency
• Error Proofing
– Poka Yoke
• Visual Control
Operational Robust Products & Processes
Standardized Work
Total Productive Maintenance Stability
Supplier Involvement
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Flow must be Designed into our Value Streams
Manufacturing
1.
2.
3.
4.
5.
6.
7.
8.
HAN University Jul 1 2014 – How Lean is QRM?
Takt Time
Finished Goods Strategy
Continuous Flow
FIFO connections
Pull/Supermarket
Schedule one point
EPEI – Interval
Heijunka - Pitch
Office/Service
1.
2.
3.
4.
5.
6.
7.
8.
Takt Time
Reorganize the work
Continuous Flow
FIFO connections
Schedule one point
Work Flow Cycle
Heijunka – Pitch
Changing Demand
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Toyota was the first one
to systematically implement
flow principles to reduce LT.
Outside Automotive….
But they are NOT in the driver
seat to develop/adapt the tools
for other sectors……
CHALLENGE
Principles
Tools
LEAN ?
HAN University Jul 1 2014 – How Lean is QRM?
-
Depend on:
Level of analysis (Plant vs Supply Chain)
Manufacturing vs. Office/Service
Sector specific (product/process technologies,
Value for the customer,…..)
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Lean (Flow) @ Supply Chain level
Design Flow into Supply Chain (Extended) Value Streams
QRM is the only
enterprise-wide
strategy
to reduce time ?
HAN University Jul 1 2014 – How Lean is QRM?
© 2014 Van Goubergen P&M gcv - Lille Belgium
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Lean (Flow) as an Enterprise-Wide Approach
QRM is the only
enterprise-wide
strategy
to reduce time ?
HAN University Jul 1 2014 – How Lean is QRM?
© 2014 Van Goubergen P&M gcv - Lille Belgium
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Lean
QRM
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)
HAN University Jul 1 2014 – How Lean is QRM?
© 2014 Van Goubergen P&M gcv - Lille Belgium
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Lean
QRM
Value Stream Design
Cell Design
FTMS
Focused Target Market Segments
‘Who are we?’
Cross functional, philosophical discussion
Product/Process FamilyDefinition
Criteria
?
HAN University Jul 1 2014 – How Lean is QRM?
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QRM
Lean
MCT maps
Value Stream Maps
Grey space
vs.
White space
HAN University Jul 1 2014 – How Lean is QRM?
Value Stream Lead Time
vs.
Process Time
© 2014 Van Goubergen P&M gcv - Lille Belgium
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QRM
Lean
Cells/Q-ROC
Value Stream Design
Permanent
OR
VS Design
principle 3
VS Design
principle 4
or Temporary
EPEI Scheduling (cell/shared resource)
(VS Design Principle 7)
“Time-Slicing “
Work Flow Cycles
Office/Service VS Design principle 6
HAN University Jul 1 2014 – How Lean is QRM?
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QRM
Lean
Variability - System Dynamics
Value Stream Design
(Branch)
Takt Time
Exploit Variability
VS Design Principle 1
Buffer Capacity
(Sir John Kingman, 1961)
Smaller Batches
HAN University Jul 1 2014 – How Lean is QRM?
EPEI Scheduling
(VS Design Principle 7)
© 2014 Van Goubergen P&M gcv - Lille Belgium
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QRM
Lean
POLCA
EPEI Scheduling
+ FIFO connections
FIFO
FIFO
FIFO
EPEI
EPEI
FIFO
(Suri, 2003)
EPEI
Cards indicate free capacity
Buffers are controlled
Sequenced based on HL/MRP
HAN University Jul 1 2014 – How Lean is QRM?
FIFO connections limit WIP and
control the sequence
EPEI gives Guaranteed
Turnaround Time
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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
HAN University Jul 1 2014 – How Lean is QRM?
© 2014 Van Goubergen P&M gcv - Lille Belgium
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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
HAN University Jul 1 2014 – How Lean is QRM?
© 2014 Van Goubergen P&M gcv - Lille Belgium
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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…..
HAN University Jul 1 2014 – How Lean is QRM?
© 2014 Van Goubergen P&M gcv - Lille Belgium
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Final Conclusion
QRM
brings us back/closer
to the roots/essence of
Lean
(with thanks to Jannes Slomp for summarizing the message ☺)
HAN University Jul 1 2014 – How Lean is QRM?
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HAN University Jul 1 2014 – How Lean is QRM?
© 2014 Van Goubergen P&M gcv - Lille Belgium
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Who am I?
Dirk Van Goubergen – Email: [email protected]
http://be.linkedin.com/in/dirkvangoubergen
@DVGoubergen
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:
1992-2004 Lecturer in Industrial Engineering at HORITO College Turnhout (B)
1993-.. Founder and president of VAN GOUBERGEN P&M Productivity Improvement (www.vangoubergen.com)
(Photo by Rob Gieling)
* +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…)
2000-2004 Research Associate at Ghent University – Dept. of Industrial Management (B)
* Graduate classes on Design of Production Systems and Operations Management
2004-2012 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)
2002 Examiner for the US Senate Productivity and Quality Award for the State of Virginia (USA)
2004-2010 Program Director ‘Fellow in Industrial Engineering’ program from the Flemish Engineers Chamber VIK (B)
2005-2012 Guest Professor at the Antwerp University (B)
* Grad. Class on Cost and Performance Benchmarking
2005-2010 Program Director of the “Master in Industrial Management” program at the Ghent University (B)
2005-….. Founder and Coordinator of the Van Goubergen Lean Academy ‘Green/Black Belt in Lean’ training/certification program
* until 2011 (6th edition) organized in collaboration with Ghent University (B)
2006-.. Founder and President of the CENTER FOR PRODUCTIVITY IMPROVEMENT ROMANIA (www.productivity.ro)
2010-…Member of the Advisory Board of the Institute of Industrial Engineers – Process Division (USA)
Senior Member of the Institute of Industrial Engineers (IIE)
HAN University Jul 1 2014 – How Lean is QRM?
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Van Goubergen P&M Productivity Improvement
Training/Education (15%) - Implementation (85%)
Some of our references…
www.vangoubergen.com
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