Shipulski On Design

Archive for the ‘Lean’ Category

Many have achieved great success with lean – it’s all over the web. Companies have done 5S, standard work, value stream mapping, and flow-pull-perfection. Waste in value streams has reduced from 95% to 80%, which is magical; productivity gains have been excellent; and costs have dropped dramatically. But the question on everyone’s mind – what’s next? The blogs, articles, and papers are speculating on the question and proposing theories, all of which have merit. But I think we’re asking the wrong question.

Instead of looking forward for the next evolution of lean, we should look back. We must take a fundamental, base-level look at our factories, and ask what did we miss? We must de-evolve our thinking about our factories, and break down their DNA – like mapping the factory genome.

Though lean has achieved radical success, it has not achieved fundamental reduction in factory complexity. Heresy? Let me explain. Lean helped us migrate from batch building to single piece flow. With batch building, a group of parts are processed at machine A, then, when all are finished, the whole family moves to machine B. With single piece flow, a part is processed at machine A then she moves, without her sisters, directly to machine B, resulting in big savings. But in both cases, the fundamental part flow, a surrogate for factory complexity, remains unchanged – parts move from machine A to machine B. Lean did not change it. Lean has taken the bends out of our factory flow and squeezed machines together, but that’s continuous improvement. We’ve got good signals, we’ve got cell-based metrics, and 15 minute pitches. Again, continuous improvement. But what about discontinuous improvement? How can we fundamentally reduce factory complexity?

Factories are what they are because of the parts flowing through them.

Factory flow and complexity are governed by the genetics of the parts. In that way, parts are the building blocks of the factory genome. From the machines and tools to the people, handling equipment, and the incoming power – they’re all shaped by the parts’ genetics. Heavy parts, heavy duty cranes; complex parts, complex flows; big parts, big factories. When we want to make a fundamental change in bacteria to make a vaccine, we change the genetics. When we want to make a fruit immune to a natural enemy or resistant to cold of an unnatural habitat, we change the genetics. So, it follows, if fundamental change in factory complexity is the objective, the factory genome should change.

Don’t try to simplify the factory directly, change the parts to let the factory simplify itself.

Discontinuous reduction of factory complexity is the result of something – changing the products that flow through the factory. Only design engineers can do that. Only design engineers can eliminate features on the design so machine B is not required. Only design engineers can redesign the product to eliminate the part altogether – no more need for machine A or B. In both cases, the design engineer did what lean could not.

Lean is a powerful tool, and I’m an advocate. But we missed an important part of the lean family. We drove right by. We had the chance to engage the design community in lean, but we did not. Let’s get in the car, drive back to the design community, and pick them up. We’ll tell them anything they want to hear, just as long as they get in the car. Then, as fast as we can, we’ll drive them to the lean pool party. Because as Darwin knew, diversity is powerful, powerful enough to mutate lean into a strain that can help us survive in the future.

Lean is all about parts. Don’t think so? What do your manufacturing processes make? Parts. What do your suppliers ship you? Parts. What do you put into inventory? Parts. What do your shelves hold? Parts. What is your supply chain all about? Parts.

Still not convinced parts are the key? Take a look at the seven wastes and add “of parts” to the end of each one. Here is what it looks like: 

1. Waste of overproduction (of parts)
2. Waste of time on hand – waiting (for parts)
3. Waste in transportation (of parts)
4. Waste of processing itself (of parts)
5. Waste of stock on hand – inventory (of parts)
6. Waste of movement (from parts)
7. Waste of making defective products (made of parts)

And look at Suzaki’s cartoons. (Click them to enlarge.) What do you see? Parts.

Take out the parts and the waste is not reduced, it’s eliminated. Let’s do a thought experiment, and pretend your product had 50% fewer parts. (I know it’s a stretch.) What would your factory look like? How about your supply chain? There would be: fewer parts to ship, fewer to receive, fewer to move, fewer to store, fewer to handle, fewer opportunities to wait for late parts, and fewer opportunities for incorrect assembly. Loosen your thinking a bit more, and the benefits broaden: fewer suppliers, fewer supplier qualifications, fewer late payments; fewer supplier quality issues, and fewer expensive black belt projects. Most importantly, however, may be the reduction in the transactions, e.g., work in process tracking, labor reporting, material cost tracking, inventory control and valuation, BOMs, routings, backflushing, work orders, and engineering changes.

However, there is a big problem with the thought experiment — there is no one to design out the parts. Since company leadership does not thrust greatness on the design community, design engineers do not have to participate in lean. No one makes them do DFA-driven part count reduction to compliment lean. Don’t think you need the design community? Ask your best manufacturing engineer to write an engineering change to eliminates parts, and see where it goes — nowhere. No design engineer, no design change. No design change, no part elimination.

It’s staggering to think of the savings that would be achieved with the powerful pairing of DFA and lean. It would go like this: The design community would create a low waste design on which the lean community would squeeze out the remaining waste. It’s like the thought experiment; a new product with 50% fewer parts is given to the lean folks, and they lean out the low waste value stream from there. DFA and lean make such a powerful one-two punch because they hit both sides of the waste equation.

DFA eliminates parts, and lean reduces waste from the ones that remain.

There are no technical reasons that prevent DFA and lean from being done together, but there are real failure modes that get in the way. The failure modes are emotional, organizational, and cultural in nature, and are all about people. For example, shared responsibility for design and manufacturing typically resides in the organizational stratosphere – above the VP or Senior VP levels. And because of the failure modes’ nature (organizational, cultural), the countermeasures are largely company-specific.

What’s in the way of your company making the DFA/lean thought experiment a reality?

Lean has been beneficial for many companies, helping improve competitiveness and profitability. But, lean has not been nearly as effective as it can be because there is a missing ingredient – product design. Where lean can reduce the waste of making and moving parts, product design can eliminate the parts altogether; where lean can reduce setup times for big machines, product design can change the parts so they no longer need the big machines; where lean can reduce inventory, product design can eliminate it by designing out parts; where lean can make the supply chain more efficient, product design can radically shorten it by designing out the long lead time elements.

The power of product design is even more evident when considering the breakdown of product cost. Here is some data from Nick Dewhurst taken from multiple-hundred DFMA analyses showing the typical cost breakdown of products.

Of the three buckets of cost, material cost is by far the largest 74%, and this is where product development shines. Product design can eliminate 40 to 50% of material cost resulting in radical cost savings. Lean cannot. I will go a bit further and say that material cost reductions are largely off limits to the lean folks since it requires fundamental product changes.

Side note – Probably most surprising about cost breakdown data is labor cost is only 4%. Why we move our manufacturing to “low cost countires” to chase 50% labor reductions to net a whopping 2% cost reduction is beyond me, but that’s for a different post.

Let’s face it – material cost reduction is where it’s at, and lean does not have the toolbox to reduce material cost. There’s no mystery here. What is mysterious, however, is that companies looking to survive at all costs are not pulling the biggest lever at their disposal – product design. Here is a bit of old data from Ford showing that Product Design has the biggest lever on cost. We’ve know this for a long time, but we still don’t do it.

Clearly, the best approach of is to combine the power of product design with lean. It goes like this: the engineers design a low cost, low waste product that is introduced to the production line, and the lean folks improve efficiency and reduce cost from there. We’ve got the lean part down, but not the product design part.

There are two things in the way of designing low cost, low waste products in a way that helps take lean to the next level. First, product development teams don’t know how to do the work. To overcome this, train them in DFMA. Second, and most important, company leaders don’t give the product development teams the tools, time, and training to do the work. Company leaders won’t take the time to do the work because they think it will delay product launches. Also, they don’t want to invest in the tools and training because the cost is too high, even though a little math shows the investment is more than paid back with the first product launch. To fix that, educate them on the methods, the resource needs, and the savings.

Good luck.

John Teresco of Industry Week wrote a good article that shows how up upfront design enables the next level of improvments in Lean and Six Sigma.

Here are several excerpts:

At Hypertherm Inc., a manufacturer of plasma cutting systems, the DFMA software enabled a first pass part count reduction as high as 50%, says Mike Shipulski, Hypertherm’s director of engineering. About 500 parts were eliminated from the product, a main power supply sub-assembly that originally contained about 1,000 parts. Shipulski says the resulting reduction in assembly floor space requirements made it possible to satisfy a growing market demand within the existing building. “We didn’t have to add floor space.” Read the rest of this entry »

“Hyper” for Lean — Lean Directions, SME

Hypertherm’s lean journey began in 1997 as a natural and enthusiastic extension of its long history of continuous improvement. Founded in 1968, the company’s “lean vision” includes training, application of 5S components, visual factory audits, single and mixed-model flow lines and the engagement of its product design functions.

A recent Hypertherm success is found in the company’s HyPerformance series of plasma arc, metalcutting systems. The company’s product design community designed a product line with Read the rest of this entry »