How the lean philosophy is transforming businesses

27 September, 2017

Lean manufacturing is currently a huge talking point for the manufacturing sector. While it is certainly not a new concept, in recent years more organisations have been employing lean thinking to streamline their processes. From increased performance and speed through to quality and customer satisfaction, the benefits are abundant. However, many manufacturers are still not taking full advantage of the concept – or have only scratched the surface.

 A look at lean

The concept of lean isn’t a new theory. The principle is inspired by ‘Kaizen’, the Japanese word for continuous improvement and it seeks to implement processes which achieve high-quality products while maintaining safe working conditions and heightening employee morale. Lean manufacturing goes one step further in the way it predominantly focuses on eliminating waste from all processes and improving customer satisfaction. The elimination of waste refers to the expenditure of resources which don’t add any value to the end customer experience and which could compromise the profitability of the business.

In lean manufacturing, the types of wastage can generally be allocated into the following seven categories: over production; unnecessary transportation; waste in production; excess stock of material; defects in quality; waiting times and over processing. Poke-yoke is another term widely used in lean production. It is a mechanism in the process which helps operators avoid mistakes, which in turn results in the elimination of product defects and helps identify human errors when they occur. The objective is to provide the customer with a high-quality product or service in the timescale and quantity required.

 Lean production

Central to the concept of lean is minimising wastage. Some organisations base production entirely on forecast, which often results in excess product and the requirement to keep units in stock until needed. In contrast, other organisations will wait to receive all orders before producing a product, which can lead to longer lead times and unhappy customers. The key is to strike a balance and ‘just in time’ (JIT) is a principle which means to build what is required, when it’s needed. This ensures components are not used in products which aren’t sold and labour and resources aren’t wasted either.

[subhead] Lean people

The majority of organisations will cite their people as their most important asset and this is certainly the case when it comes to successfully implementing lean production. In order for lean to be effective, there needs to be company-wide buy-in and the way of thinking embodied at every level, from the CEO right through to the operators. While salary is an important consideration, employees essentially want to develop a sense of worth and feel as though they have contributed to achieving the company goals. Promoting a philosophy which appreciates workers efforts and places them highly to ensure they feel involved and valued, will encourage a more productive team.

 Lean in practice

IMI Precision Engineering has always used lean principles in some guise, however in 2015, it pledged to formally introduce lean principles as a way of working across the organisation. Many members of the workforce had been with the company for years, so organisation-wide cultural buy-in and adoption were extremely important. The central factor in achieving success was to communicate the principles across each site, and part of the strategy saw the local ‘lean teams’. The investment in professional resources was the basis for rolling out a training programme for all 500 employees.

The initial phase of implementation saw all the underlying infrastructure prepared for the transition. Investment was made in equipment and new processes and systems were introduced to ensure each site was ready for the transition and initial waste removed. The lean journey started in parallel to educate the team and lay the foundations to ensure all new processes and equipment could be introduced correctly from the outset.

By utilising key lean resources across the organisation, which include education programmes and knowledge sharing sessions, early adoption of the initiative has also resulted in tangible benefits. There have been specific improvements in utilisation, productivity, mixed model lines and floor space, as well as visual management. Thanks to the culture of continuous improvement, new product lines have been introduced in facilities which were previously over capacity and underperforming.

With a focus on improved customer experience, the knowledge gained by the lean education programmes run across multiple sites has encouraged a new way of ‘lean thinking’, enhancing the way teams service their customers. Lean knowledge and principles have also been extended across the supply chain – longstanding customers have visited the sites to find out more about the process, essentially building on the customer experience.

IMI Precision Engineering’s Fradley facility is an outstanding example of the wider group’s efforts to implement lean manufacturing across all its processes. Take the Excelon Plus assembly which has been specifically developed to build in lean from the outset. Due to the new processes, it is agile enough to make any variant of filter regulator lubricator (FRL) in any order, at any time. Whether it’s a ¼” or ½”, the Excelon Plus FRL can be made on the same line in just 33 seconds. Once finished, IMI Precision Engineering offers fast and immediate delivery. This speed, accuracy and precision would simply not have been achievable had we not adopted the lean way of thinking.

The Alpen team in Germany was also put to the test when they were required to produce four times the volume of its ISO cylinder in a short turnaround time. Taking up the challenge, the team set up a Kaizen workshop which saw them modify the production line to manage the significant volume increase. One improvement was to place the assembly line close to the shop floor in line with Gemba. Gemba is another Japanese terminology which means the most important place for a team.

The team also divided assembly into five single steps, allowing the operators to pass products between each other, again improving efficiency. Based on reduced work in progress in the line, the Alpen team was able to offer a streamlined service whereby customers can order a non-standard stroke cylinder and get it shipped the same day.

The implementation of lean has by no means been an easy feat, but due to a robust strategy and introducing initially on one site, this has resulted in the first stage of successfully adopting the principles in our production lines. The focus moving forward will be to leverage the principles of lean and the company-wide understanding in order to enhance the service offered to customers. While it is often referred to as a lean journey, as the principal suggests it is all about continuous development and improvement, so effectively the process is ongoing.

For further information about IMI Precision Engineering’s lean transformation, visit the company’s website:

www.imi-precision.com