Lean Approaches in SMEs by David Coombes

Lean Approaches in SMEs

David Coombes A575990

Supervisor â&#x20AC;&#x201C; Dr S C Morton 2nd Reader â&#x20AC;&#x201C; Dr R Bhamra

Final Submission 2008-09

Manufacturing Engineering and Management 08MMC500

Wolfson School of Mechanical and Manufacturing Engineering

David Coombes A575990

Part C Project

Abstract There has been a huge amount of research into lean implementation, completed by large, multinational organisations. This research is specifically geared towards use within large organisations and does not consider the problems which smaller organisations face. This project aims to give specific information tailored towards the small and medium enterprises (SMEs), without needing to relinquish a large amount of their budget on research. This information will be presented in the form of a viable implementation guide and accompanying managerâ&#x20AC;&#x;s guidelines. The information regarding tools available and problems which SMEs face were established, initially, by the study of existing literature, and subsequent visits to organisations currently using lean tools. From this, a list of appropriate tools were gathered, methods of implementation and additional actions that need to be considered by SMEs on their lean journey, have been developed. The practical guide provided, enabling SMEs to implement lean manufacturing, provides; information regarding simple initial lean assessment, the use of simple tools, and an innovative and reiterative approach to continuous improvement.

Lean Approaches in SMEs

David Coombes A575990

Part C Project

Statement Originality

“This is to certify that I am responsible for the work submitted in this report, that the original work is my own except when specified in acknowledgements or in the footnotes”.

Signed…………………………………………………………………………………… (David Coombes)

Date; 13/05/2009

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Lean Approaches in SMEs

David Coombes A575990

Part C Project

Acknowledgements Firstly I would like to thank my supervisor Dr Sue Morton for, primarily allowing me to complete the project, and also for all her advice, guidance and enthusiasm throughout. I would also like to thank Matt Cox and Mark Coombes for allowing me visit their respective organizations and help throughout the visits. This gave me a vital insight into lean within an organization. On a personal note I would like to thanks my parents for their continued support throughout and my girlfriend for keeping my spirits up on the long working days. Finally I would like to thank my housemates for all the healthy distractions they provided.

Lean Approaches in SMEs

David Coombes A575990

Part C Project

Contents Abstract ............................................................................................................................................. ii Statement Originality ...................................................................................................................... iii Acknowledgements ........................................................................................................................ iv 1.0 Literature Review ...................................................................................................................... 1 1.1 Introduction ............................................................................................................................ 1 1.2 What is Lean Manufacturing? ............................................................................................. 1 1.3 Lean Tools Available ............................................................................................................ 3 1.3.1 5S ..................................................................................................................................... 3 1.3.2 Value Stream Mapping ................................................................................................. 4 1.3.3 Kanban ............................................................................................................................ 4 1.3.4 One Piece Flow.............................................................................................................. 5 1.3.5 Poka-Yoke ...................................................................................................................... 5 1.3.6 Visual Management....................................................................................................... 5 1.3.7 SMED .............................................................................................................................. 5 1.3.8 Standardized Work ........................................................................................................ 5 1.4 What are SMEâ&#x20AC;&#x;s? .................................................................................................................. 6 1.5 Problems face by SMEs....................................................................................................... 6 1.6 SMEs with Lean .................................................................................................................... 7 1.7 Existing Work ......................................................................................................................... 8 2.0 Initial Implementation Guide.................................................................................................. 15 2.1 Guide .................................................................................................................................... 16 2.2 Guide Description ............................................................................................................... 17 3.0 Visits.......................................................................................................................................... 18 3.1 GKN ...................................................................................................................................... 18 2.2 Extec Screens and Crushers ............................................................................................ 20 3.3 Conclusion ........................................................................................................................... 22 4.0 Further Research .................................................................................................................... 23 4.1Value Stream Mapping........................................................................................................ 23 4.2 Implementation Plan ........................................................................................................... 24 4.3 SMEs Problems .................................................................................................................. 25 4.4 Conclusion ........................................................................................................................... 26 5.0 Lean Implementation for SMEs ............................................................................................ 28 5.1 Sequential Function Chart ................................................................................................. 28 v

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5.2 Implementation Guide ........................................................................................................ 28 5.3 Stages of Guide with Guidelines ...................................................................................... 30 5.3.1 Initial Start Conditions ................................................................................................. 30 5.3.2 Step 1 – Talk to Workforce. ....................................................................................... 30 5.3.3 Condition 1.................................................................................................................... 31 5.3.4 Step 2 – Training. ........................................................................................................ 32 5.3.5 Condition 2.................................................................................................................... 33 5.3.6 Step 3 – Value Stream Mapping. .............................................................................. 33 5.3.7 Condition 3.................................................................................................................... 35 5.3.6 Step 4 – 5S (3S). ......................................................................................................... 35 5.3.7 Step 5 – Cell Layout. ................................................................................................... 36 5.3.8 Condition 4.................................................................................................................... 37 5.3.9 Step 6 – Visual Management. ................................................................................... 38 5.3.10 Condition 5 ................................................................................................................. 39 5.3.11 Step 7 – KanBan. ...................................................................................................... 40 5.3.12 Condition 6 ................................................................................................................. 41 5.3.12 Step 8 – Value Stream Mapping. ............................................................................ 42 5.3.13 Further actions ........................................................................................................... 42 5.4 Improvements from previous guide .................................................................................. 44 5.5 Summary .............................................................................................................................. 45 6.0 Testing ...................................................................................................................................... 46 6.1 Extec Considerations ......................................................................................................... 46 7.0 Conclusion ............................................................................................................................... 47 8.0 Project Management .............................................................................................................. 48 9.0 Further Work and Limitations ................................................................................................ 50 10.0 References ............................................................................................................................ 52 Books........................................................................................................................................... 52 Web-pages ................................................................................................................................. 52 Appendix 1 ...................................................................................................................................... 56 Gantt Chart ................................................................................................................................. 57 Objectives Form ......................................................................................................................... 58 Appendix 2 ...................................................................................................................................... 59 GKN Notes.................................................................................................................................. 60 Extec Notes ................................................................................................................................ 62 vi

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Part C Project

GKN Images ............................................................................................................................... 63 5S cleaning station ................................................................................................................ 63 Visual Display Location......................................................................................................... 64 Autonomous Maintenance Checklist .................................................................................. 65 Visual Management............................................................................................................... 66 Extec Images.............................................................................................................................. 67 Power Pack Bay – Before .................................................................................................... 67 Power pack bay – After......................................................................................................... 68 Designated Stock Locations ................................................................................................ 69 KanBan System ..................................................................................................................... 70

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1.0 Literature Review 1.1 Introduction Lean manufacturing provides an initiative to reduce waste through continuous improvement, and thus achieve more with fewer resources. It can, however, be a difficult process to begin without sufficient resources and expertise. This task is made even more difficult as the majority of the research has been completed by large companies who do not face the financial and personnel limitations that smaller enterprises do. Such is the case within micro, small and medium enterprises, which make up the majority of European manufacturing. 1.2 What is Lean Manufacturing? Lean manufacturing can essentially be described by definition of its two individual components; As stated in Collins English Dictionary (2003) “lean adj thin but healthy looking.” and “manufacture verb process or make (goods) on a large scale using machinery.” Using these two definitions we can determine that lean manufacturing is the initiative of creating processes or products without any excess, or waste. Lean should be envisaged as „thin and healthy‟, rather than simply „thin‟. The idea of lean is to improve the efficiency of the process, rather than to reduce it in size. When defining lean manufacturing, it forces the description of “lean” here to be inherently linked to the principles of manufacturing. However, this is not the case. As John Bicheno (2004) says “the word lean is an unfortunate one, due to its connotations to manufacturing, in which it is not only confided. Also it implies lean to be thin and anorexic; it should be applied as fit for new activities.” Lean Manufacturing, as we know it today, was first established by Taiichi Ohno when he started the Toyota Production System in 1950. There are many events prior to this date which have affected the route taken, and improved the manufacturing process to make it more efficient. This dates back to 1810 when Henry Maudslay and Marc Brunel set up one of the first mechanised production lines, producing 160,000 pulleys per year with 10 men, for the Royal Navy. There is a “Lean Chronology” which is the new lean toolbox by John Bicheno, which begins in 1797 when Henry Maudslay built the world‟s first metal precision screw 1

David Coombes A575990

Part C Project

cutting machine. It finishes in 2003 with large scale trials of RFID (radio frequency inventory identification) with over 80 events between the two extreme dates. Some of the dates in the chronology include: The Ford Model T which was first produced in 1908, development of many lean tools, development of the “Just-In-Time” system, the advances made by Toyota Production System and many books published on the subject of lean. Most lean Manufacturing approaches come from the Toyota Production System. This was a system created by Taiichi Ohno to improve the production of Toyota. “The basis of the Toyota Production system is the absolute elimination of waste, the two pillars needed to support the system are; Just in Time and autonomation (automation with a human touch).” “Just-in-Time” is the principle in a flow process where the parts required are delivered just when they are needed, and in exactly the right quantity. If this is undertaken correctly, the result can be that of approaching zero stock. As defined by Gembutsu‟s website (2006), Autonomation is “Transferring human intelligence to automated or semi-automated machinery so that machines and not people are able to detect production defects and immediately stop themselves.” Following this, Taiichi Ohno creates methods and tools to “increase production efficiency by consistently and thoroughly eliminating waste.”

Ohno

(1988)

identified

seven

„wastes‟

(or

„muda‟)

these

are;

Overproduction, Waiting, Transporting, Inappropriate Processing, Unnecessary Inventory, Excessive Motion and Defects. Expanding on the work by Ohno, Womack and Jones (2003) coined 5 lean principles; Value, Value Stream, Flow, Pull and Perfection. These should be implemented with the idea of reducing the seven „wastes‟ mentioned above. The first principle of value is from the standpoint of the customer; this is sometimes quite difficult to define, due to the needs of the shareholders, or the senior management‟s financial mind-set getting in the way. The value should be based solely around the customer and their needs, “It is only meaningful when expressed in terms of a specific product (a good or a service, and often both at once), which meets the customers‟ needs at a specific price at a specific time.” (Womack & Jones, 2003). Second is value stream; this should involve the company identifying the value stream for each product family and eliminate everything that does not add value – every step, every action and every practice. Next principle is flow, 2

Lean Approaches in SMEs

David Coombes A575990

Part C Project

after identifying the value stream, the remaining steps in this process should “occur in a tight integrated sequence so the product will flow smoothly towards the customer.” (Womack & Jones, 2003). Following this, is the principle of pull; instead of scheduling production to a sales forecast, the enterprise can simply make what the customer requires them to. This is a direct result of the previous three principles having been implemented well. “You can let the customer pull the product from you as needed rather than pushing products, often unwanted, onto the customer.” (Little & McKinna, 2005) Finally there is perfection, this is based around the idea of continuous improvement. With continuous improvement a further reduction in all types of waste can be achieved. 1.3 Lean Tools Available With the principles of Lean stated above, there are a number of tools available to aid the implementation of a lean philosophy. Most of the techniques originate from Japan, and from the Toyota Production System but “many of these techniques are in fact common sense applied in a structured way” (Little & McKinna, 2005) With this in mind, there can be the problem of lean seen as a selection of possible solutions to be chosen from; this is not the case. The individual tools can be used to help the enterprise move forward and become more involved in the lean system. The single tools themselves can give good results and can improve the enterprise, but its success is limited. “The point is that it is an end-to-end value stream that adds competitiveness” (Bicheno, J., 2004). Some of the tools available (with a brief description) are; 1.3.1 5S – Also called “5S Visual Workplace” (ThroughPut Solutions, 2007) 5S relates to five words beginning with “S” that will lead to a cleaner and more efficient work place. “5S Visual workplace creates a work environment that is clean, well organised and efficient” (ThroughPut Solutions, 2007).The five words are; Sort, Set, Shine, Standardise and Sustain. Each „S‟ is described below: “Sort” involves a cleanup, getting rid of any clutter and rubbish. Any tools that are never used are removed from the work area. This can be applied to an office environment where the removal of unwanted files and papers would come under the “Sort” heading. If an enterprise is unsure of what to remove, it can be 3

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Part C Project

monitored for a period of time and if the item is still not used, then it can be disposed of. Second is “Set”, this is also known as “Set in Order”. This is about keeping the tools in their rightful place; all tools and equipment have their own dedicated place. This makes the company a lot more efficient and cuts out the time taken to locate the correct tool or equipment. Next is “Shine”. This stage ensures everything is swept and kept clean. With no clutter or rubbish on the floor, it is easier for the workforce to move around and get from place to place. This should be maintained throughout the whole process, and the workspace should consistently be clean. If the workspace is always clean, it can eliminate the need for a “spring clean” and thus save time. The penultimate principle is “Standardise”. This involves carrying out tasks so that the consistent approach for returning tools and cleaning up is met. This involves using signs and colour coding to ensure it is easy to complete the previous principles. Finally there is “Sustain”. This is to ensure that the workplace continues to follow the 5S principles and not revert to the old “cluttered and chaotic” workplace it was before. This is probably the most important of the five stages; by incorporating continuous improvement, the workplace can become ever more efficient. 1.3.2 Value Stream Mapping – This is “one of, if not the single most powerful lean tool available” (LSS Academy 2008). A value stream is all the steps; both value-adding and non value, taking the product from raw material all the way to the customer. Once completed, this will provide the company with a visual representation of the material flow throughout its production cycle; this will be the current state map. After studying the current map, a future state map can be developed, providing the enterprise with a representation of where the enterprise envisages itself after the implementation of lean. This future state map will become the blueprint for lean implementation. 1.3.3 Kanban – This tool relates the pull of material through the production process. Kanbans are signboards that aid communication and display the need for a new product or service. Kanbans give visual indicators of productivity and 4

Lean Approaches in SMEs

David Coombes A575990

Part C Project

constraints. Using this tool, defects can be reduced and allow for job sharing. It can also show the most time consuming processes that will delay the whole production. 1.3.4 One Piece Flow – The next step after Kanban is one piece flow; this is often referred to as continuous flow or known as “make one, move one”.(lean Advisors Inc, 2008) This is where parts are passed from one station to the next and therefore gives no wait time in-between processes. Each process step requires the next product just as the previous process finishes with the item. One piece flow is an advanced stage of lean manufacturing; it “helps to maximise utilisation of resources, shorten lead times, identify problems and communications between operations.” (Shop Werks, 2008) 1.3.5 Poka-Yoke – This is Japanese for “mistake-proofing”, meaning a device or procedure to prevent defects in the process. This saves time by not having to reproduce the item, and money by not having to scrap the material. 1.3.6 Visual Management – This is a very simple procedure that enables workforces to see the processes and workflow more clearly. This is conducted by use of information boards, checklists and signage. This tool is simple yet very effective. 1.3.7 SMED – This is an acronym for “single minute exchange of die”. This concentrates on reducing the changeover of machines; the faster the changeover, the more products that can be produced. The time taken needs to be fewer than ten minutes (hence “single minute”) between the last good part of product A, to the first good part of product B. 1.3.8 Standardized Work – Also known as “Standardized Work Instructions”. These are “specific instructions that allow processes to be completed in a consistent, timely and repeatable manner” (ThroughPut Solutions, 2007) This makes the work environment safer and more predictable, it also will increase production and improve quality. With knowledge of exactly what has been done, it is much easier to track errors that may occur in the process. There are more tools to aid the lean implementation than this; it is a question of selecting the appropriate tool for the enterprises‟ situation. 5

Lean Approaches in SMEs

David Coombes A575990

Part C Project

1.4 What are SME’s? Micro, small and medium enterprises (SMEs) are defined by, “a company which employ fewer than 250 and which have an annual turnover not exceeding 50 million euro, and/or an annual balance sheet not exceeding 43 million euro” (European Commission, 2008)The SMEs are in the centre of the European economy; SMEs make up 99% of all enterprises within the enlarged European union of 25 countries (European Commission, 2008). With such a vast number of people employed in SMEs all over Europe, and such a large percentage of the total number of enterprises being made up by SMEs, there are a large number of innovative and entrepreneurial skills within these enterprises. It is often difficult for SMEs to receive the required funding in the early stages of the business; this can result in restricted access to new technologies. 1.5 Problems face by SMEs As briefly touched upon in Section 1.4, there are many problems that can arise in the running of an SME. These are not solely restricted to financial issues when setting up the business, but problems can also arise with human resource and management once the business is fully developed. There are a large number of problems that do not arise in large companies and multi nationals; the most obvious of these being financial implications. As SMEs earn only a small percentage of large multinational profits, they have severely restricted spending in comparison to the larger organisations. This restriction can often encourage the company to look for a quick and cheap solution to a problem; this cheaper alternative can show hidden costs during implementation, which weren‟t seen when the decision was made. The poor decision in choice of solution can result in the operation being completely re-thought or even aborted. This will have more financial implications and can force the company into deeper financial problems. Another problem for SMEs can be the workforce. Sometimes, with the budget being tight, SMEs will look within the company for employees to take on new roles, rather than employ a new member to the workforce from outside. This results in very little being spent in search of a new employee, and will also reduce salary costs. The problems that may arise can potentially outweigh the benefits. The employee can be promoted to a role above their capabilities and result in slowing the company down when it comes to moving forward. This may lead to 6

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David Coombes A575990

Part C Project

employment of a new member of staff anyway, doubling the salary costs. This type of promotion can result in a lack of knowledge and skill at the management end of the company. With this constant promotion of employees within the company, it can leave the company resistant to change. When the management have been in the company for a substantial period of time, and set in their way of work, it can be difficult to implement change. In the book “Small Business Survival” Roger Bennett(1989) says “Frequently, low profit firms are not inefficient or prone to extravagant spending, nor do they offer inferior or unwanted goods; it is just that they are not capable of accommodating change” . This unwillingness to change means the business fails to realise the changing market, new patterns of competition and new methods of doing business. This, along with basic information, is needed in the competitive environment all businesses are in. 1.6 SMEs with Lean More and more SMEs are beginning to execute a lean way of manufacturing, in order to remain competitive in the market, and to potentially gain a beneficial advantage over competitors. The progression in the market means that many SMEs need to be as efficient as possible just to stay profitable. With the problems that SMEs have in mind, they sometimes find it difficult to implement lean manufacturing effectively. This is not only due to resources available but also the insufficient expertise can hinder the implementation process. Without the correct expertise it can be difficult to know where to begin when it comes to lean manufacturing. If lean is implemented incorrectly, it can make the manufacturing process less efficient and more costly. This is more than feasible when the enterprise is lacking in expertise; implementation can be successively introduced with no financial investment. Some of the initiatives and tools are simple common sense and organisation. However, there is only so far an enterprise can progress without financial backing; this can be what separates SME‟s lean process from that of a larger organisation. Alongside these problems, the variety of products that SMEs manufacture can be a major hindrance. Because SMEs produce such a wide variety of different products, or provide a variety of different of services, any lean approach must be 7

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David Coombes A575990

Part C Project

individually tailored to the company. This makes the implementation process a lot harder to initiate. It is a lot more complex and potentially, without the expertise and resources, this can be a major problem. Many SMEs struggle to stay profitable, therefore, quick results are needed. SMEs need tools that are easy to implement to begin with, and produce good results to get the enterprises backing. Then they must increase the complexity of the tools and further the lean process within the company. This process of beginning small, but achieving big results, gets the enterprise on side. Later, larger tasks can begin to make the process even more efficient. Despite all the problems mentioned above, the major problem regards change. Many of the workforces in SMEs are made up of employees who have many years of experience. With this experience comes stubbornness; these employees are set in their way of how things have been done for many years, and feel that itâ&#x20AC;&#x;s the right way. One of the first tasks is to get the workforce to support lean, and try and show them that the processes in place will improve their standard of work, and not make life difficult for them. 1.7 Existing Work There are many case studies and examples of people carrying out similar work, mostly within larger organisations. This previous work will be studied within this project, and used to inform further research completed within this area. Alongside these case studies, there have been research projects completed and published online. A number of case studies can be found at tpslean.com (2007). Here, the problem, solution and impact/results are commented on. Many of these cases are not specifically aimed at SMEs, but the lessons learnt and tools used, again, can frequently be adjusted to work for the SME. The website does not give specific details regarding the enterprise, but gives information on the type of manufacturing that takes place. One of the case studies regards the plant layout for a successful foundry. The problem occurred when it was found out that many employees were walking between four and eight blocks to get certain products non-destructively tested. â&#x20AC;&#x153;Parts were being processed in the building several blocks away then transported 8

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by carts, trucks or forklifts to NDT for further processing” (ThroughPut Solutions, 2007). This waste of transportation could be repeated multiple times within the manufacture of the products. An obvious solution was to bring the NDT area closer to the production of the products. This would significantly reduce 2 of the 7 wastes; “Transporting” and “Excessive motion”. Space was found centrally located and sufficient enough in size to house the NDT area. After redesigning the NDT area, the size needed was reduced to one third of the space used in the previous layout. In the extra space they “incorporated a lab area that was previously located adjacent to the old NDT facility, and a shipping function for immediate packing and shipping of completed products” (ThroughPut Solutions, 2007). This resulted in dozens of productions hours saved on a daily basis. Time spent previously transporting the goods is now spent producing them, and defects caused by packaging and transportation were almost completely eliminated. The old facility that used to house the old NDT area is now leased out for further revenue. “Very conservative estimates value this improvement and $2 million annually” (ThroughPut Solutions, 2007). Even though this is not directly completed within a small to medium enterprise, a lot still can be learnt with the savings from small changes. In this case study, there was very little done in the way of spending; redesign of the plant layout and good utilization of the space saved, led to a large annual saving. This saving will be in relation to the annual income of the enterprise and the savings may not be large, but will appear large for the smaller income gained by SMEs. This lean implementation was very cheap to complete, reducing one of the major problems encountered by SMEs. By identifying the process flow, the layout of the plant can be altered to reduce the wastes identified by Taiichi Ohno - for transporting, excessive motion and defects. Within Feld‟s (2001) book on Lean Manufacturing, there are many case studies. These case studies look at how “different companies deploy lean manufacturing within their facilities. Each case addresses a different level or aspect of a lean implementation” (Feld, W., 2001). These case studies are all completed for relatively large enterprises and do not fit within the SME boundaries. This work will still be studied, but more research will go into how the implementation took place, and how the lessons learned can be applied to a smaller enterprise. 9

Lean Approaches in SMEs

David Coombes A575990

Part C Project

A study completed by Feld (2001) involved a relatively large organisation with about 850 employees. The enterprise decided it needed a change after poor delivery performances, excessively large inventory and being classed as one of the worst suppliers by the enterprise (which gave the organisation 50% of its business). It was decided that a complete operations redesign was needed. The objectives of the operation redesign was intended to affect; “customer requested ship

date,

customer

promise

date

deviation,

manufacturing

delivery,

manufacturing lead-time, supplier performance and inventory levels and turns” (Feld, W., 2001). The project was managed by completing a number of individual projects which included; “Process layout, material planning and control, organisation design, facilities, tactical procurement and total acquisition cost” (Feld, W.,2001). Each individual project had its own set of objectives and assigned deliverables. Even though each project was independent, they all had to follow the same seven steps. These steps interlink with the “lean road map” mentioned by Feld (2001) earlier in the book. These seven steps are; baseline, desired state, gap analysis, concept design, detailed design, implementation plan and execution. Once the operations redesign was complete there were a number of benefits that could be seen. Productivity had increased from 67% to 77% and was well on the way to the target set of 84%. The lead-time on all the products was halved amongst all products, and the Inventory was reduced from 180 to 106. There were many lessons learnt and mentioned at the end of this case study. There are a few which are not applicable to an SME but many that are. Initially Feld (2001) believes it is vitally important to constantly monitor meeting times and project deliverables, and not to lack in communication. If deliverables are going to be missed, a valid reason should be supplied and contingency plan should be made. If there is a lack of communication, understanding can be lost, making it very difficult for the project to move forward. It is important to also recognise individual capabilities and limitations; it can hinder the implementation if an employee is tasked with a job beyond their level of work. It is also integral to enlist full-time members to the teams; Feld (2001) believes part-time teams will produce only part-time results. Finally all employees who will be involved within the project should be trained, not solely the design team. This will ensure the whole company is working together and will make it a smoother operation. 10

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This case study was quite a large operation that took many months to implement, and is probably too big for a smaller enterprise to undertake. Although the whole operation was a lot larger than an SME could handle, there were many lessons learnt that could be applied to a smaller operation. These lessons seem quite general and could be applied to even larger programs or to even smaller ones. These lessons will be taken into consideration throughout the project. There is a further case study within the 1000 ventures website (2001) which focuses on implementing lean within an SME. The case study is based around the implementation of lean for a metal stamping company, with only 23 employees and $1 million turnover. The case study only focuses on the implementation and the impacts. The whole of the implementation process is completed without any capital investment. The tools applied were “single minute exchange of die (SMED), 5S activities, variations on the kanban systems” (1000 Ventures, 2001). A number of resulting improvements were seen. Initially, the SMED method significantly reduced changeover times. This was done by “breaking down the entire changeover process into small activities in order to determine the time wasted in adjustments and readjustments” (1000 Ventures, 2001). As a result, the changeover times were reduced by 80%; this saved the enterprise forty nine minutes per changeover. This saved production time can significantly increase the production levels. As machine breakdowns were a major problem, a maintenance worker was recruited; this reduced the time lost due to broken machines. Because of the introduction of 5S and error proofing, the quality of the products increased by 50%. Other gains included; turnover increased by 36%, machine downtime and lead time reduced by 100% and 50% respectively, production space increased by 43% and productivity and quality awareness increased dramatically. This shows that gains can be made by SMEs by implementing lean manufacture well. This case study was completed without any financial backing, something that SMEs struggle with. There are significant gains to be made without financial backing, to support a change to lean manufacturing. The tools that were applied were simple and effective, required little work to begin and implement, but that showed results fast. Changeover time reduction was effected using a simple assessment and implementation. The changeover process was assessed to determine where most time was lost, and then processes were put in place to 11

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reduce this. This is a process of assessing something first, determining where the most savings can be made, and implementing changes with relation to the findings. It is a common process when it comes to initiating lean manufacturing. Finally there is also a piece of work completed by, Prof. David Little and Alistair McKinna (2005) for Huddersfield University. The work, entitled “A lean manufacturing assessment tool for use in SMEs” looks specifically at a case study for an SME, but also touches on work completed in the past for SMEs. This work will be very relevant to the project title and a good source of information to base the work around. The case study initially touches on the amount of small and medium enterprises in the UK and how they are moving towards lean manufacturing, to continue to be competitive. Following that, are the problems SMEs face, specifically the problem of change. Within smaller companies it is traditional to do things the way they are currently being completed, and are against change, even if it may lead to an improvement in efficiency and working environment. Little and McKinna (2005) have completed a number of lean implementation tasks in the past, all for smaller enterprises. The majority of the enterprises employed less than 50 and only two had more than 100 employees. As shown, the majority of the projects are 5S but there are instances where continuous improvement has been introduced, and shop floor layout has been improved. The report also touches on the savings that could be made by SMEs in certain areas, with the implementation of lean. The same information exists for larger organisations, but from Little and McKinna‟s (2005) study they found that; “Inventory – 15-30% reduction, Lean Times – 3060% savings, Set Up Time – 20-50% reduction, Space Utilization – 15-50% improvement and Quality – 50-75% improvement”. Little and McKinna (2005) then continue into their methodology when it comes to lean approaches within SMEs; “We have found that the best way to commence a „lean journey‟ is to carry out a Lean Assessment”. Little and McKinna (2005) have developed their own lean assessment tool which fulfils four main requirements. These requirements have been developed with company feedback; they are straightforward in use, not draining on resources, to the point and deliver results in a short pace of time. A four stage plan is then introduced. Firstly the lean assessment tool is applied; this gives an idea of where the enterprise is currently at. Then the area of weakness is 12

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defined; the area that can see the most improvements and can be completed easily. Thirdly the workforce is introduced to lean; here the workforce is given an understanding on what is taking place. Finally the teams apply the lean tools to improve the manufacturing within the enterprise. There is a case study that follows an SME when applying the 5S tool and attempting to improve set-up time. Applying the 5S tool gave multiple benefits including; “more efficient space utilization (20%), quality improvements, increased productivity and improved teamwork, morale and motivation” (Little, D. & McKinna, A., 2005). After applying 5S, set up time was projected to improve; this improved morale and team work further, but also produced saving of £30,000 over a quarter. The improvement of set-up time was achieved by using a simple spreadsheet and brainstormed ideas, from the whole workforce, of how to improve the process. The previous report is very similar to the project undertaken here, and has a lot of good points to consider when completing the project. Initially it deals with problems that are encountered by SMEs; these problems all have solutions, and can be overcome. This project shows the problems and solutions which will be taken into consideration. It gives a good indication on what lean tools work well for the smaller enterprises, and why. When it comes to implementing lean, the four stage plan is very similar to one by William Feld (2001); he uses a “lean road map” which has similar points. The final two case studies are very useful when considering this project. Both detail actions that can be undertaken when applying lean manufacturing to an SME; the differences arise in what information is portrayed. The case study from the 1000ventures website (2001) concentrates on publishing the gains made by implementing certain tools and very little on why these tools were implemented, instead of numerous alternatives. A brief description of the way in which the tools were implemented is publicised but it does not probe far into details of the problems faced, and the actual action taken place within the implementation. Whereas the final report from Little and McKinna (2005) goes into detail about the actual assessment and implementation and, although it gives results, they are not as comprehensive as in the 1000ventures (2001) work. Following the research, 13

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small amounts of information gathered, plus any information gathered by the researcher, will be used to provide a complete lean assessment and implementation guide for SMEs.

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2.0 Initial Implementation Guide After completing the literature review (above), a rough implementation guide has been produced on the following page (page 16); this guide will not give guidelines, but will outline the tools to be used and the progression through the guide.

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2.1 Guide

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2.2 Guide Description The guide previously detailed (page 16) is a simple design of the lean assessment guide that will be produced by the end of the project. It is a simple implementation guide for SMEs, and has been formed around what has been found in the initial research. The initial stage is based around some sort of lean assessment. This could be done in a value stream mapping event or using a specific lean assessment tool, designed by the organisation themselves. This will give the enterprise an idea of the current situation they are in and how to progress along the lean implementation after this initial step. The next three tools are very simple tools, and relatively cheap, making them ideal for use within SMEs. The simplicity means that the lack of expertise that SMEs possess, in comparison to larger multinationals, will not hinder their process. Also the lower turnover for SMEs will also provide no hindrance to their progress. The majority of the costs for implementing these tools would be set-up costs. These would include producing signs, shadow boards and purchasing paints for walkways.

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3.0 Visits As part of the research, the investigator carried out two visits to: see lean in operation and to gather information regarding the company itself and how they relate to SMEs, how the departments interact, advantages or disadvantages seen by using lean, and the problems that occurred during implantation. During these visits, detailed notes were taken and these can be seen in Appendices 2 (Appendix 2.2 and 2.2) 3.1 GKN The first company visited was an organisation in which the researcher had completed a two-week work placement before beginning his university studies. GKN Driveline is a large company, the Walsall plant that was visited was no exception to this. The company has invested a large amount of time and money into implementing lean, and into continuously improving their manufacturing process The Walsall plant employs around 300 people. The European Commission‟s (2008) definition for a medium sized enterprise is that it must have a head count of fewer than 250. The plant alone is regarded as too big to comply with the SME definition; this is without considering the size and turnover from the rest of GKN Driveline. Although this company is too big to be regarded as an SME, the findings can still be applied to smaller enterprises. Before implementing any lean tools and undergoing any changes, the company invested in a lean training course. This consisted of occasional training days and events, which extended over 48 weeks. The course was not without cost; the entire 48 weeks cost £2,000 per person. This was undertaken by 7 people throughout the whole plant. Once the course had been completed, the employees that participated in the program were known as “Continuous Improvement Leaders”. After this point, the employees were able to implement any changes that would improve the manufacturing process. This meant an initial outlay of £14,000, and no results were seen for almost a year. Because SMEs require fast results at a fraction of the cost, this may not be the right direction for them. On the other hand, poor training and thus poor implementation can lead to an increase in time and cost, with time and money spent correcting the errors previously made. Poor 18

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training will be cheap and fast but will also give poor results; good training will be costly and time consuming but will give good results. SMEs need to try and find a cheap and fast way of training their employees that will give good results. After all the training, the lean tools could be implemented. GKN Walsall currently uses numerous tools to improve the manufacturing process. These tools include; 5S, Visual Management, Lost Time Analysis, Autonomous Maintenance, Standardized Work and Value Stream Mapping. Each tool provides savings in their own individual way. 5S provides massive time savings; there are no instances where time should be lost searching for tools if 5S is implemented correctly. Autonomous Maintenance provides great cost savings, when the operatives carry out simple maintenance on the machines, such as oil levels and coolant levels, it leaves the maintenance employees to complete the more difficult tasks. All of the tools are implemented using a Kaizen event. In this event, production within one cell is purposely run fast, so that it can become between one and three days ahead of schedule. This then gives the lean trained staff and the operatives within the cell one to three days to implement any changes. This process is relatively fast but implications can be encountered when trying to get production days ahead of schedule. With SMEs producing such a variety of products the changeover of tools and change between products may mean this is not possible. While on the two day visit to GKN, the researcher participated in a value stream mapping session (VSM). This was completed to aid management from another GKN plant and to give them an idea of how to implement VSM within their plant. This was very informative and showed how effective the VSM tool can be, and how it can be used. During the VSM event, the full product lifecycle for one product group was considered, from customer to supplier. This gave a value stream map of the product selected and indicated where, within the production of this product, the problem lay. This was then investigated and ways to remove this problem were drawn up. This tool was relatively simple to use, gave a very large amount of information for one product group and indicated the problem areas within its production.

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This was the third time that a VSM event had been completed for this product group and there were still problems found nor improvements to be made.

seemed that GKN were using GKN not only as an initial assessment tool but also by repeating the event once changes had been made, it became a method of continuous improvement. This could be of great benefit to SMEs; it would mean that the numbers of tools that needed to be used would be restricted, thus reducing the training. It would mean that SMEsâ&#x20AC;&#x; initial assessment and continuous improvement could be completed using the same tool. research will be conducted into the validity of this idea, but it could be a vital part within SMEs implementation guide. The visit to GKN was very informative and gave a crucial insight into lean within an organisation, even though this organisation was too large for an SME. The VSM event attended gave a great insight into this tool and the versatility of its uses. It proved to be an essential part of the lean guide provided at the end of this project. 2.2 Extec Screens and Crushers The second company visited was where the researcher had completed his placement during his DIS (Diploma in Industrial Studies) year. Extec Screens and Crushers are a relatively small company but one of the worldâ&#x20AC;&#x;s leading providers of screens and crushers. Extec are very new to the idea of lean manufacturing and are still in the early stages. Extec currently employeeâ&#x20AC;&#x;s a total of 500 people, with 300 located at the plant visited. This means that the enterprise does not classify as a SME, but with its size considerably smaller than GKN, the results are potentially more useful. It was less than a year ago that Extec started to try and become more efficient, and implement some of the lean ways of thinking. The starting point for Extec was also training. This was completed in a completely different way to GKN; for around six days a month, a consultant was employed by Extec to come in and train the workforce, and start implementing changes straight away. This can aid SMEs as the changes are seen immediately. The problem is that the cost to employ a specialised consultant, even on a one day week, is a lot greater than to send a number of people on a numerous week training course.

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Two members of management were given the lean mantle, alongside their current job. Their role extended from their current production position to one including all lean activities. Alongside the two management position, two members on the shop floor were required to deal with the lean aspect on the shop floor. Again, this role was undertaken alongside their current role. As Extec had already completed the training, were ready to implement lean tools and get lean up and running within the organisation, it was the ideal opportunity to test the researcher‟s implementation guide. This was the plan, but the current economic downturn meant it was not viable for the company to wait and it was decided that they should go ahead without the researcher‟s input. The one major difference between GKN and Extec in the implementation was due to the current economic climate. With the sales of Extec machines dwindling, the decision was made to halt production for a number of months. The decision was made, that while production was not running, it would be ideal to time to try and implement a number of lean initiatives. For Extec, it meant that that there were no issues encountered regarding how and when to implement any tools. This would not be common scenario for most SMEs trying to implement lean, and usually with many SMEs running to almost full production, a way of implementing any tools would need to be thought out thoroughly. With no production, Extec were free to implement any tool of their choosing. The first step Extec took was to clean up everything on the production line. This consisted of implementing part of a 5S. Sort, Simplify and Shine were completed; this included removing the £700,000 of obsolete stock on the shop floor. This was then sold to gain some extra income for the company. Another aspect of the implantation included shadow boards for tools, locations identified of stock in the bay and the whole factory was cleaned and painted. Only three of the five initiatives were implemented due to the difficulty of the second two. Extec were in the process of providing standard work documents, and once completed, a way of sustaining this tool will be considered. While sorting through a lot of excess of stock, it was decided that a simple Kanban system was needed. Extec started with a system linking stores to production, this included space for three full kits to be supplied straight from stores. So once one 21

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was empty, it was sign for stores to pick a new kit and provide it for the production line. Extec also had a contingency plan in place here; if for any reason stores were running behind, there was plenty of time between one kit being used, and all three kits being used. This meant that even if stores were running slow, it would not affect production. Extec had already decided what their next steps were going to be. To avoid confusion, it was decided that they would not implement any more tools until these two tools were running almost to their full potential. Extec were in the process of providing standard work procedures, and once completed, were considering Sustain as the final part of 5S. With the Kanban system currently only running between stores and production, the next step was to increase the Kanban system and get links between fabrication and production and attempt to extend it to suppliers also. These were the only two tools currently being exploited by Extec, and with the lack of production, it was impossible to tell how effective they had been. This visit was valuable in seeing lean applied on a smaller scale to GKN, and see how smaller organisations deal with the problems that they face. The major points of information that would be useful were the implementation of 3S initially and also the ways that Extec introduced a safety factor for their visual management and kanban system. 3.3 Conclusion These visits were very informative and highlighted numerous ideas to carry forward through the rest of the project. The flexibility of VSM was of most interest and further research will validate the flexibility of this tool. The idea of a contingency plan for SMEs is also a good idea, with so much importance placed upon the production line not stopping, plans to ensure this doesnâ&#x20AC;&#x;t happen are worth considering. Finally, making the tool used simpler is something that could be considered. Extec reduced 5S to 3S to make it simpler to implement, and especially early on in the implementation this could be a vital alteration to help SMEs.

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4.0 Further Research Upon completion of the two visits, and after seeing lean tools in a working environment, more research was needed. This research would be more specific, validate any ideas considered after the visits and also provide more information on lean implementation for SMEs. 4.1Value Stream Mapping Value stream mapping is “an improvement strategy that links the needs of top management with the needs of the operations group” (Tapping, D., 2002). The value stream is a tool used to “Create a picture of the complete material and information flow from customer request through order fulfilment for an operation” (Gemba Research, 2007). This tool can be used to map the whole process flow and determine any wastes throughout the whole process, from supplier to customer. The initial step is to identify the value stream or product family. With many SMEs providing a large variety of products it is vital that a good selection is made, multiple value streams will need to be made, one for each product family. “There are many value streams within an organization, just as there are many rivers flowing into an ocean. Value Stream Management helps you systematically identify and eliminate the non-value adding elements from your value stream” (Tapping, D., 2002). Once the value stream is completed, it will provide a visual representation of the process flow.

The goal here is to gather accurate, real-time data related to

product family. This will provide the current state map and show where wastes are accumulating, and what problems within production need addressing. This will then lead to a future state map and give a blueprint for the organization to work towards. Don Tapping (2002) provides an eight step guide to implementing the value stream process. These are: 1. Commit to Lean 2. Choose the Value Stream 3. Learn about Lean 23

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4. Map the Current State 5. Determine the Lean Metrics 6. Map the Future State 7. Create Kaizen Plans 8. Implement Kaizen Plans At GKN they used a four stage plan. These were: 1. Establish Product Group 2. Map the Current State 3. Map the Future State 4. Action Planning to Bridge the Gap. These plans are very similar, as GKN have already participated in training and have all the required information about lean, steps one and three have already been completed. Steps seven and eight in the Don Tapping guide are combined into one step within the guide found at GKN. The simpler 4 stage plan would be good to use within SMEs, making the VSM event process simpler and easier to complete. Bizbodz.com (2009) indicates that value stream mapping can be used in continuous improvement and is commonly used in this context. The use of one major tool throughout the guide would be beneficial to the organisation using it. After viewing this tool having been used successfully in this context, and seeing how powerful it could be, VSM will become an integral part of the implementation guide published at the end of this project. 4.2 Implementation Plan The steps for implementing VSM coincide with what was shown by William Feld (2001) in lean manufacturing; tools, techniques and how to use them. He published a lean road map which consisted of four stages. These stages were: 1. Lean Assessment 2. Current State Gap 3. Future State Design 4. Implementation 24

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All three guides seem to work on a similar process. This included: initially defining the area in which the lean improvement will take place, secondly the job is to identify the current situation, and from this, define the future state situation in which the organization hopes to be in. The final stage is the implement methods of bridging the gap between the current and future state. This four stage guide simplifies the lean implementation process, ideal for anyone using this process. It can be adjusted and applied to numerous stages within any implementation and would aid all organisations using it. Relating it to SMEs, the ease of its application and the repetitive nature in which it can be applied, is very advantageous. The simplicity will mean that any lack of expertise will be no problem and will mean fewer problems occur. The way it can be used numerous times means that the workforce, within the SMEs, does not need learn how to use numerous different implementation methods. 4.3 SMEs Problems SMEs face numerous problems within all aspects of the organization, aside from implementing new ideas and initiatives. All of these will need to be considered when creating an implementation guide for SMEs. These include: 

Lack of Financial Resources



Relatively Small Workforce

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Minimal Formal Procedure and Discipline

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Lack IT Skills

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Lack of Experience Using Consultants (Hutex, 2008)



Resistant to Change (Bennett, R., 1989)

The needs of SMEs are very different to the needs of multinationals. With this in mind, the lean implementation will be different for both organisations. Smaller organisations use lean to become more efficient and ultimately more competitive. With the competitive advantage being the main reason to implement lean, as long as this is achieved the manufacturing process, doesn‟t need to be the most efficient it can be. By implementing a small amount of lean, efficiency will improve, costs will reduce and the organisation will become more competitive.

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The production processes within SMEs are vital to their survival. If, for any reason, production is stopped, the turnover of the organisation is reduced significantly. Considering this, the implementation for SMEs needs to disrupt production as little as possible. This means that the implementation of any tools needs to be effected without halting production and also once the tool is up and running, plans need to be in place to keep production running if any problems occur. These contingency plans will help keep production going if any unexpected problems occur, this was seen at Extec with the Kanban system. 4.4 Conclusion After completing visits and completing this small amount of addition research, there are numerous considerations that need to be thought through when designing the lean implementation guide for SMEs. Due to SMEsâ&#x20AC;&#x; lack of expertise and lack of funds, the ideal tools to use for SMEs are simple and cost effect tools. These tools will enable SMEs to implement lean easily and hopefully encounter minimal problems whilst doing so. If these problems are reduced then there will be no need to correct these problems at a later date, incurring more costs for the organisation. The use of simple tools will mean that there will no need for excessive training in the use of the tools and the low cost means that the financial advantages gained through the implementation of lean are seen sooner. These simple tools will also provide quick results, vital for SMEs. After compiling the information after the visits, it was seen that value stream mapping is very powerful tool, and with its relatively simplistic nature and minimal cost to implement, it could be ideal for SMEs. This along with the four stage implementation guide will form the basis of the implementation guide for SMEs. Within this guide, all the problems that SMEs face will be considered. The lean road map seen in operation at GKN, and found in numerous publications, seems like a simple way of implementing any lean process. This simple guide will make the implementation easier and therefore more suitable for SMEs. The four stage guide can be slightly adjusted and applied to any stage of the implementation. This simple way of looking at the implementation will no doubt aid the organisation in using it. 26

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After this further research, the results highlighted numerous ideas to be included in the final implementation guide. The considerations are:  VSM uses, used as an initial assessment and also as a method of continuous improvement.  The use of simple and cheap tools, and the advantages these give.  A contingency plan, to ensure production is not disrupted.  Lean road map and guidelines to help the implementation.

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5.0 Lean Implementation for SMEs This section will include the implementation guide for SMEs to use. It will provide a guide for all SMEs, regardless of how much lean manufacturing has already been implemented. For all SMEs to use this guide there will need to be conditions between steps that need to be met before the next stage could be completed. This would aid organizations which have already implemented some lean tools, but need more guidance. It will also prevent organizations from poor implementation and ensure any tool used, is used correctly and not going to cause any problems. 5.1 Sequential Function Chart This guide will need both actions and conditions; this can be completed by using a programming language used for PLCâ&#x20AC;&#x;s. This language consists of steps with associated actions, transitions between stages that need to be met and direct links between the steps and the transitions. The steps will include the guide for implementing the lean tools, the transitions consists of conditions which need to be satisfied before continuing on with the guide. These transitions will also aid organizations who have already implemented some lean tools, and will show them at which point to start on the guide. 5.2 Implementation Guide The implementation guide below shows a direction in which lean implementation can be completed for SMEs. This is only a guide and can be adjusted as enterprises feel fit. With every SME unique, ideally an individual guide would need to be produced for each SME embarking on the lean journey. The guide provided is an overall guide and tries to overcome the major problems SMEs face, and gives a good basic guide for SMEs to loosely follow.

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Implementation Guide

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5.3 Stages of Guide with Guidelines 5.3.1 Initial Start Conditions SMEs and company managers using this guide, need to ensure their enterprise fulfils certain criteria before starting at the beginning of this guide. The idea of the guide is that any SME can use it, regardless of what stage of lean implementation they are at. To start at the beginning the organization needs no knowledge of lean and has never implemented any lean tools. Organisations who have participated in some lean activities need to decide, using the stages and conditions, at which point to start. The best place to start for these enterprises is at the lowest stage that hasn‟t been fully completed. This ensures that everything that has been completed before has been done successfully and won‟t cause the organization any problems in the future. For organizations starting at the beginning of the guide, a lean team needs to be decided upon. This should constitute of around 5% of the workforce and the roles should be taken on alongside their current roles within the enterprise. This will mean the enterprise doesn‟t have to spend money on recruiting new employees. This will work providing the employees who take on the new roles can continue to do both roles. The lean role will be a secondary role and lean tasks can be carried out around and alongside current roles. With SMEs having such a broad product base, production is invariably running quite near full capacity. This means full day Kaizen events would not be suitable. Where possible it would be better for organizations to stick to little and often implementation. This way of implementing lean tools will mean that disruption to production will be kept to a minimum. 5.3.2 Step 1 – Talk to Workforce. With so many enterprises consisting of a workforce who are used to working under the same conditions for numerous years, they are resistant to change. The first step is to inform the workforce of the changes that are going to take place over the coming months. The main idea of this is to inform the workforce that the changes that will be made are going to help them, and improve their production and working conditions, and not make things worse for them. 30

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Looking at the whole implementation guide, this initial stage should not take very long at all. A week should be a suitable amount of time between first informing the workforce and the initial training taking place. There are numerous ways of communicating with the workforce, and numerous ways should be used to inform the workforce. Initially a general form of communication should be used, for example a memorandum to the entire workforce should be sent out from upper management informing the workforce that changes will be taking place to improve production, and improve their working conditions. This initial memo should emphasize that it is an attempt to improve their working conditions and make production easier for everyone. It should also inform everyone who will be taking on lean roles and what those roles will be. After the workforce is initially informed of the changes, the members of the workforce who have taken on lean roles should go to the shop floor and talk to the workforce about the changes. They should answer any questions, whilst reenforcing the fact the changes will make their job easier. This coincides with the gemba attitude of â&#x20AC;&#x153;Go see; go to the real place and see what is actually happeningâ&#x20AC;? (Lean Pathways, 2009). This is also sometimes called Genchi Genbutsu, and is a good way to deal with any problems within the lean implementation. It may not be possible to get the entire workforce on the side of lean implementation. Numerous workers or even groups of workers will be very resistant to change. There are still ways of implementing lean with some of the workforce against the change. Small things can be implemented within a smaller group of workers who are willing to embrace the change. Once these small changes have been implemented, the rest of the workforce will see the changes and realize that it is improving working conditions, and come round to the idea of implementing lean manufacturing. 5.3.3 Condition 1 Before implementing any of the lean ideas or tools, it is imperative that the workforce is willing to embrace the change. Ideally the entire workforce should be willing to change and ready to accept any changes.

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Sometimes this might be possible, due to the workforce being resistant to change. In this scenario any initial changes would need to be concentrated on a cell that is willing to change. Once the first small changes have been made, the rest of the workforce will see that the changes are improving working conditions and will be more susceptible to future changes. 5.3.4 Step 2 â&#x20AC;&#x201C; Training. This is step is crucial in any implementation guide; inadequate training could be the downfall for any organization trying to achieve lean manufacturing. Within SMEs the initial stages are the most crucial and poor initial planning leads to problems further down the line, and will force the organization to invest more money to correct the problem or to stop the whole idea all together. If adequate training is undertaken then there should be no problems once the lean manufacturing is initiated. There are numerous ways to perform training, each has its own advantages and disadvantages. The way GKN performed the training, by sending a small number of the middle management on an extend course, is a comprehensive and relatively cheap way of performing this initial training. GKN conducted a 48-week training period; this meant that there was a long period between initially informing the workforce and implementing any changes. Even though this training period can be reduced, the problem still lies with the amount of time before any changes are seen within the organization. Extec completed the training through a consultant; he trained the people required through implemented small changes. SMEsâ&#x20AC;&#x; main problem with this is the lack of knowledge they have when it comes to using consultants, but will provide quick results - which is what SMEs require. Even though one of the problems SMEs face is dealing with consultants, the best way to perform training is through a consultant. This is a relatively cheap way of performing the training and gives instant results, a major bonus for SMEs. It also means the workforce is not over trained, with the organization being small, there are numerous tools that are too complex to be used within an SME; learning about these tools would be time wasted.

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As mentioned before, the people who will be working directly with the consultant will be the members of the middle management who are undertaking a lean role. This will consist of around 5% of the workforce and the role will be taken on alongside their current job. SMEs potentially cannot afford to employ numerous people to solely work on lean. Also using people that are already known within the organization, it makes this step easier and the workforce will be more responsive when talking to a colleague of numerous years, rather than someone completely new. By using a consultant it adds expertise to an organization which may not have much in the way of expertise within any field. This expertise means that the guide can be adjusted by an expert to fit the needs of the individual organization. 5.3.5 Condition 2 The first thing that needs to be completed is that a suitable consultant is found. The consult needs to have very good knowledge within lean and ideally knowledge of the needs of SMEs. Before the consultant starts, there will be a need for them to get a grasp of the organisation and how it works. Alongside this, there will be a learning process for the consultant to understand what the organisation wants. The consultant will need to get a grasp of the problem and take some time in understanding the production and the procedures in place. Simple training should be completed to get the lean team to understand the basics behind lean and some of the basic principles. Only once good understanding of the principles behind lean manufacturing have been gained can the lean team go forward and implement any changes. This initial understanding may take a little bit of time; this time should still be a considerable amount less than any training program would have taken. 5.3.6 Step 3 â&#x20AC;&#x201C; Value Stream Mapping. Value stream mapping uses a simple four stage process. The first step is to select the product group, for SMEs this may mean one of numerous product groups, as SMEs usually have a broad range of products. After the product group has been defined, the next step is to map the current state. This gives a visual 33

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representation of the whole process from customer to supplier and shows where the main problem areas within the production are. Once this current state map has been produced, it is easy to see where the problems are and from the problems a future state map can be created. This future state map will give a visual representation of the process once it has been improved. Finally actions are taken to bridge the gap between the current and future state maps. These four stages coincide with Feldâ&#x20AC;&#x;s (2001) lean road map accurately, and can form the basis of all lean implementation actions. By selecting an appropriate part of production, gaining an idea of where the process is currently at is an ideal start. This then can be brought forward and create a future state map, then the implementation occurs in bridging the gap between these two states. This is the single most important tool within the full guide. This is due to it being used in the initial assessment and in the continuous improvement at the end of the guide. An in depth understanding of how the tool works and a deep knowledge of how the tool can be used needs to be gained. Once this is gained, VSM events can run as frequently as the organisation requires and ways of improving the manufacturing process can be gained after every event. This event will be run by the consultant, along with the middle management who have taken on lean roles. It is vitally important that someone from each department is in attendance; this means that each department will have an input in to what is found. Also, within SMEs, a lot of procedures are not standardized and are completed from memory by the workforce. This means that input from the workforce is needed to get an accurate map of the current procedures. With SMEs having a broad product group, multiple value stream mapping event may be needed to gain an overall view for the organization. A problem may arise when more than one product is being produced in a single cell, this would mean that any changes would be implemented twice, once for each product group. In this scenario it may be beneficial to complete the VSM for both product groups or complete two VSM events before implementing any changes within these cells. This would mean more time is spent in the planning stage, due to completing multiple VSM events before any implementation occurs. Savings would be made

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in the implementation, due to all improvements happening in one go rather than in intervals. Once the VSM event has been completed, there should be two maps, one showing the current state, the other showing the future state. With the aid of the consultant and input from all people present, actions should be drawn up giving ways to bridge the gap between these two states. 5.3.7 Condition 3 The VSM needs to be completed for one product group; this includes the current state map all the way from customer to supplier. It also includes the future state map and a list of actions that will be carried out to bridge the gap between the two states. In certain circumstances there may need to be multiple VSM events completed before any changes are implemented. This would take longer in the preparation but would save more time in the implementation. 5.3.6 Step 4 – 5S (3S). The next lean tools are tools that are generally good for SMEs and should be implemented if possible. The VSM may indicate problems which need fixing more urgently and actions could be put in place while initiating these tools. 5S related to a set of five words which all begin with “S” and are designed to make the workplace cleaner and more efficient. These are; sort, set, shine, standardize and sustain as detailed in Section 1.3.1. With this being one of the first tools implemented within the enterprise, it is imperative that it not too complex and means the lean initiative gets off on the wrong foot. With this in mind, reducing 5S to 3S initially makes it easier to implement. As most SMEs don‟t have procedures in place, it is difficult to produce the standard work documents to achieve the standardize point, and sustain is the final step and provides methods of keeping the tool working efficiently. With this in mind, the other three points would be easier to implement and the greatest results will be seen in the shortest time. Sort includes cleaning up the entire process, included unwanted parts and tools. This should be also applied to office space; it would make the office work more efficiently and also show the workforce that the changes are being applied 35

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throughout the enterprise and not just in production. Savings can be made here by selling any unwanted parts and tools to gain some extra income from the enterprise. Set is sometimes called set in order, this means that tools are given their own rightful place and parts are also given a specific area. This makes the production a lot smoother and time is saved by not looking for parts or tools. This can include creating shadow boards for tools; these give a visual aid for the workforce when it comes to finding and replacing tools. Shine means to keep the work area clean. This will aid the movement of people and parts, and will make the process overall more efficient. This should be maintained and would eliminate the need for a spring clean and thus save time. There are numerous ways to implement a lean tool, each with its own advantages and disadvantages. With SMEs usually running to almost full capacity, it is difficult to get production a number of days ahead of schedule, and pause for a Kaizen event. With this in mind, the best way would be to implement with a little and often mentality. This could be done by a small amount of time at the end of each shift dedicated to lean implementation and to taking to enterprise forward on a lean front. Once the tool is fully operational, a small amount of time at the end of each shift could be used to keep the tool maintained, and ensure that it continues working to fully capability. The time at the end of each shift to keep the tool maintained would be considerably shorter than that needed to get the tool up and running. 5.3.7 Step 5 â&#x20AC;&#x201C; Cell Layout. Once VSM is completed there will be some excessive movements identified. These could be reduced if the cell layout was improved or the positions of the cells were moved in relation to each other. These cell layout changes could be implemented alongside any 5S changes, this would minimize disruption time. One of the seven wastes, identified by Ohno, is â&#x20AC;&#x153;Motionâ&#x20AC;?. It is vital to reduce this aspect of manufacturing, a simple and effective way of reducing this waste is to 36

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improve cell layout. This means that layout within the cell reduces movement, but also the position of the cell in relation other cells and stores can reduce movement of parts and assemblies between them. Following the VSM event, it should be easy to identify where the excessive motion occurs and where the most savings could be made. The main saving would be time within this tool, as with 5S. There would be a large amount time saved if parts and assemblies only had to be moved a short distance. Alongside these time savings, there would be financial savings when it comes to the transport of the goods. There would also be a saving on petrol for the forklift trucks used to transport heavy items. This should be implemented, where possible, alongside the 5S changes. This would mean that both tools use the information found from the VSM event and implement them using a â&#x20AC;&#x153;little and oftenâ&#x20AC;? technique. Some changes within cell layout may take more than the small amount of time allotted at the end of each shift. For example, it may not be possible to re-locate a whole cell to other side of the shop floor in half an hour. When this is the case, a Kaizen event would be needed. The cell in question can continue with production while the other cells take the small amount of time to implement 5S. This would give the workforce in the cell a little bit more time to get ahead of schedule and give time for a Kaizen event. 5.3.8 Condition 4 The main objective that needs to be achieved before moving onto the next stage would be to complete all the changes identified in the VSM event. This consists of all the cells having improved their layout and improve their cleanliness and efficiency. As mentioned before, this may be after numerous VSM events, depending on product groups. As SMEs have a large product base, there may be numerous cells which deal with more than one product group. This would need to be considered before any implementation happens within these cells.

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5.3.9 Step 6 â&#x20AC;&#x201C; Visual Management. Once the workforce is operating in a cleaner and more efficient environment and the movement within the enterprise is down to a minimum. The implementation of lean ideas can continue. Visual management is used to aid people who are moving through the workplace and to give them signs showing where items and places are. After the cell layout has been completed, visual management can be started. Ensuring that the tools are completed in this order; would mean that there would be no need for implementing visual management twice. Visual management consists of sign boards and displays for the location of numerous places, such as: each cell, fire exits, first aid equipment and the location of parts within stores. This will save time going round the shop floor looking for the location of required items or cells. This would also aid the gemba attitude. As mentioned before the gemba attitude is â&#x20AC;&#x17E;go and seeâ&#x20AC;&#x;. With all the shop floor locations clearly identified, it becomes easier for members of the workforce who are not based on the shop floor to go down and rectify any problems quickly. These members of the workforce will also be more willing to go down to the shop floor if the location is clearly identified. Visual management also consists of painted walkways on the floor. Aisles are painted to improve the safety of the workforce walking around, and also to improve the movement of parts and assemblies around the shop floor. Areas for parts being delivered to the line are marked out, which acts as a simple stock replenishment system. If numerous areas for parts have been marked out, once the parts are used, it gives a visual representation that new parts are needed. The information regarding these designated areas for stock will also be covered and completed within the implementation on the Kanban system. There will probably be more information about the space required when organising the Kanban system and it should be executed there. This should be considered and areas should be set aside for this implementation in the next stage. Visual aids could be added to certain dials and gauges that help the workers to know when it comes to refilling fluid levels and performing general maintenance. 38

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This will save money for the enterprise as there should be less need for a maintenance employee to perform simple tasks. This gives them more time to participate and complete more complex tasks. Visual management will cost more than all previous tools, but will mean less time is expended on implementing it. Savings made will mainly consist of time, these savings are for both members finding information who are not familiar with the shop floor and also for maintenance employees not completing simple maintenance tasks. 5.3.10 Condition 5 Before continuing onto any more lean tools, visual management should be completely implemented. An adequate amount of visual management on all issues below needs to be completed. This consists of sign boards showing the location of; each cell and first aid and fire safety equipment. Alongside this, shadow boards previously produced within 5S could be improved within this stage also. Aisles should be painted on the floor aid movement around the factory. Even though movement around the factory floor should have been reduced, these walkways will increase safety around the shop floor, increase efficiency when moving around and also aid the movement towards the gemba attitude. Displays around dials and gauges should be in place to help the workforce know when consumables within machines, such as oil and coolant, are fully expended. This will give more time to maintenance employees to complete more complex and time-consuming tasks. Finally visual management consists of marking out areas on the floor within cells for the replenishment of stock. This consists of numerous areas within each cell for parts and assemblies to be delivered to. Once the part or assembly has been used, the empty space will show when new stock is needed. Information will be needed from the VSM event to give details on the number of areas marked out, which will relate to the speed in which parts go through the operations within each cell.

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5.3.11 Step 7 â&#x20AC;&#x201C; KanBan. Finally, with the information found from the VSM event, a simple Kanban system should be put in place. This simple Kanban system will pull the material through the production process. These signboards show when there is a need for a replenishment of products. The required information should be gathered from the VSM event; the information gathered should give details regarding the quantity of parts needed, the amount supplied per batch and therefore the required frequency of stock replenishments. From this, information for a simple Kanban system can be calculated. This would consist of every batch that is delivered to the production line arrives with a card; once the batch is completed the cards are then replaced into a signboard. This signboard gives representation of the parts that have been used and what areas within the production are in need for a new delivery of parts. For SMEs it is easier to implement a simple Kanban system for internal movements of parts, this would consist of movements from stores to production, and if any parts are built on site then the movement of these to production also could be controlled. By concentrating on internal movements initially, there are no external factors to influence the system, making this initial implementation easier. If the 5S stage has be completed well before-hand there should be no obsolete stock to confuse the implementation of this stage. This should also reduce the quantity of parts in stock over a period of time. Alongside these signboards there should be designated areas within work space, where stock gets delivered to. This acts as a reminder for the work force that new parts are required. This will be considered in the previous stage and areas should be allotted from this stage. By marking out space for numerous parts, this adds a safety factor. It will reduce the efficiency of the process, meaning that parts will be waiting on the line for a short period of time but it will also mean that the process is not waiting for parts if replacement from stores is slow in coming. Providing there is space, a contingency plan should be scheduled in. This would mean that the replenishment of stock is not instantaneous, and a small period of time is allocated between the 40

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first amounts of stock being used and there being no stock available, and thus stopping production. Once the Kanban system is in place, it will give the enterprise information and knowledge required to organize deliveries from outside sources more efficiently. This will mean that deliveries are only made when they are required, and will reduce the build up of stock levels and also reduce the number of unwanted deliveries. When organizing the Kanban system for external suppliers, the best place to start is with consumables; such as nuts and bolts. These can work on a similar system to the internal Kanban system, when stock levels reach a certain level, a trigger is activated which initiates the ordering of new parts. A problem may occur when the enterprises are requiring smaller more frequent deliveries. Suppliers may not want to make multiple smaller deliveries in comparison to less frequent larger deliveries. If there is a major problem for suppliers to change the delivery to a more lean friendly way, there will be numerous other suppliers who would be willing to. Research has been completed by Yen Chun Wu (2003) which shows that lean minded suppliers do gain numerous advantages over suppliers that do not embrace the lean manufacturing way of thinking. 5.3.12 Condition 6 This is the final tool to be used within the enterprise, after this stage it is a case of continuous improvement and ensuring the current tools are working to full capabilities. With this in mind, it is imperative that all tools used up to this point are fully functional and running with no problems. As far as having the Kanban fully functional, this should initially be for all internal movements only. Even though the information gained from the VSM event runs from supplier to customer, the opportunity for the enterprise to introduce a Kanban system for suppliers is available (but should only be implemented once the internal system is in place). This splitting of the implementation of the Kanban system makes it easier to get started and therefore produces less problems further down the line. Any problems found in the implementation of the internal Kanban system can be learned from, 41

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and during the second, more difficult implementation, these problems can be minimized or even reduced. 5.3.12 Step 8 â&#x20AC;&#x201C; Value Stream Mapping. As seen at GKN, value stream mapping is a very powerful tool, and can be used for numerous purposes. This guide repeats the use of VSM and uses it as its main tool for continuous improvement. The same steps are taken concurrent with the first time as it was implemented: choose the product group, map current state, map future state and then decide upon ways of how to bridge the gap. The second time this implemented, the new current state should be the old future state. This is obviously not going to be the case but there should be similarities between the two states. This current state map will give a visual representation of how the enterprise is currently working and indicate where problems are still occurring. Even after the implementation of the simple lean tools mentioned above, there will still be areas which need work. This may be in an area that has already been changed after the previous VSM event, or may be in a completely different area within the enterprise. This method of continuous improvement coincides with the road map used to implement all changes, the four stage road map continues throughout the implementation process. This leads to less ambiguity within the guide and reduces the training needed for the workforce within the enterprise. 5.3.13 Further actions The obvious next step to take is to fully execute 5S, and increase it from 3S to 5S. The last two stages to implement are Standardize and Sustain. This would include producing standardized work documents for all operations, and also producing some method of keeping the tool working to full capability. There should be standardized work documents for all operations within the enterprise. These documents should be drawn up with the input from the members of the workforce that would be using them, taking this approach will mean that there will be no disagreements in what is being asked from them. These should be adhered to at all times, where possible. If any problems do occur, the problem 42

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should be brought up with higher management before any alternative actions are taken. This will ensure that quality is sustained throughout the process. Sustain should be a set of guidelines to ensure that the 5S tool continues working to full capabilities. Many workforces complete a Kaizen event to ensure this, as mentioned before, SMEs are working to almost full capacity, therefore it is difficult to find time for a Kaizen event. A small amount of time each day or week should be set aside to ensure that the work area is clean and used efficiently. The reiterative nature of the guide means that the next steps come in the form of repeating the VSM events and implementing changes, to reduce problems found. This means that the majority of the further actions will consist of repeating the VSM event and implementing changes decided upon after the event. The main tool used in this guide is value stream mapping, and should be repeated on a regular basis. This will give a visual representation of where the enterprise is at that moment in time, and also an idea of where the enterprise is heading in the future. By using these two representations, it is relatively easy to make plans and progress from current state to future state. This can be completed at any point in the lean manufacturing journey, and makes it the ideal tool for initial implementation and for continuous improvement. Due to the lack of expertise within most SMEs, lean approaches need to be kept simple. This will enable the SMEs to implement lean changes with minimal problems. Using one main tool makes it relatively simple for SMEs to implement lean. The enterprise can become accustom to the VSM events while an expert is present, then once adequate training has been completed the workforce can run their own VSM events. Further actions for organisations that do not start at the beginning of the guide will be the same as those who start at the beginning. When any organisation finishes the guide, they should be at the same point along the lean implementation; this should be ensured by completing the conditions. Providing the organisations initiate the lean journey at the lowest complete stage, it ensures no poor implementation occurs.

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As mentioned earlier, this guide is not a fully inclusive guide. It should cover most aspects and be very comprehensive, but all SMEs are unique and all have different needs. Small adjustments to this guide should be adequate for most SMEs. 5.4 Improvements from previous guide There are numerous changes made from the first guide, this second and final guide is much more comprehensive. From findings after visits and the small amount of research post-visits, gave a good insight into lean and gave numerous ideas of ways to improve the guide. On the whole, they layout was improved. The addition of conditions between each action makes it easier for SMEs who have already completed some lean actions to join the guide part way through. It also ensures good implementation is occurring throughout. The first change came in including the first step of talking to the workforce; this was covered in the initial research but never included in the guide. The importance of this stage was shown during the visits, and after these visits its importance was realised and therefore included as the first stage in the final guide. Second was training. This wasnâ&#x20AC;&#x;t considered until the visits and its importance was only realised once a few questions were asked during the trips. There are numerous ways for this to be completed, for a SME, it was decided that the best would be consultant, when considering all the needs and problems SMEs face. VSM was the finalised tool to complete the lean assessment; this was decided once the VSM event was completed at GKN. This tool is very powerful and relatively simple to run, making it ideal for use with lean implementation within SMEs. The next step was 5S. There a few smaller changes within this tool. It was decided to initially make the tool easier to use and thus, it was simplified from 5 points down to 3. As it was the first tool to be used, simplicity would be paramount. Alongside this tool, cell layout is also scheduled to be improved. This would use the results found from the VSM event and minimize disruption by implementing two tools simultaneously. 44

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After the 5S and cell layout were implemented, visual management and Kanban were next to be implemented. The only difference between this and the previous guide is that the order in which they were implemented was changed. It was decided that visual management would flow better after 5S and cell layout. This was then followed by potentially the hardest tool, a Kanban system which would make more sense. Again the process was repeated as before, and completed using a method of assessing the situation then formulating a plan of how to improve it. This, in the second guide, consisted of repeating the VSM event. The use of the same tool over and over again means that the SMEs can reduce training time and also reduce the chance of making errors in using the tool and causing problems in the future. All of the changes have been made after the visits and the further research. The changes have been made by considering the findings from the earlier research. This includes: the needs of SMEs, the problems SMEs face, the difficulty in using the tools and the results they show. 5.5 Summary This improved guide uses the information found in the initial research, information found on visits and the further research, to validate the ideas after these visits. This is to be used as a basis for any enterpriseâ&#x20AC;&#x;s lean implementation journey and should be an aid to any SME trying to implement lean. This guide will help SMEs overcome common problems and implement tools that will be effective for them to improve their production.

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6.0 Testing Once the project was agreed, Extec was contacted where a visit took place (see Section 2.2). It was decided, once the guide had been completed, it would be tested at Extec. Due to Extec already having completed the training with a consultant, it would be ideal to implement the VSM event and changes that followed. The time consuming process of searching for, and selecting, the workforce to make up the lean manufacturing team, finding the consultant and performing the correct training had already been completed. This would mean that it would only be possible to test the tool selection and implementation method of the guide. Due to the current economic climate, Extec had no need to run production for numerous months around the Christmas period. This time of no production was an ideal time for Extec to go ahead and make numerous lean changes. This was too early for the investigator to create his implementation guide and for them to use that, so it was decided Extec would go ahead without his input. 6.1 Extec Considerations Having spoken to Extec after their initial implementation, it was agreed that the researcher

would provide recommendations for future changes to be

implemented once the project was completed, and aid them further down their lean journey. The recommendations include: 

Complete VSM event for all product groups, this should lead to more ways of improving the manufacturing process.



Implement the final 2 points of the 5S.



Extend the Kanban system throughout the factory and out to suppliers.



Implement visual management throughout the factory; get the workforce embracing the Gemba attitude.



Schedule future VSM events to provide further improvements

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7.0 Conclusion The aim of this project was to produce a method of lean assessment for SMEs. This would be completed with accompanying guidelines for managers, regarding how to implement the selected tools. These tools have been selected from all research and information found. The aims of the project were completed by producing a lean guide, to be used by SMEs as a basis for lean implementation. This guide is in a flow diagram format, illustrating the progression through the lean journey. The decisions regarding what to be included were made after compiling a literature review, participating in company visits and validating ideas any ideas theorised. This research could become a vital tool within the implementation of lean within smaller organisations. With the budget in smaller organisations being a lot smaller, the funding is not available to research into appropriate lean approaches. This project can help SMEs implement correct tools and use the correct method without spending excessive money on researching the information. Accompanying the guide are guidelines, giving information regarding how to complete the implementation, where problems may arise, and how to overcome them.

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8.0 Project Management The project, in the most can be considered a success. I have managed to produce an implementation guide for SMEs with guidelines and considerations to accompany the guide. This has been completed through research into existing literature and by visiting organizations that had lean manufacturing already up and running. The original objectives of this project were to develop a simple lean assessment tool for SMEs and provide industry managers with guidelines on how to use this assessment tool. This has been achieved by producing the guide (figureâ&#x20AC;Ś) with the accompanying guidelines. With respect to time management, the project in the most has been a success as there was plenty of time to complete the research, visits and complete the project. The only problem, related to time, that did occur was the lack of testing. The current economic climate meant that the proposed plan of implementing my guide within the enterprise was redundant. The largest problem I had regarding time management was in the scheduling of visits. It was difficult to find a time suitable for both me and for the members of the organizations who had kindly agreed to help me. Whilst I tried to find time around lectures, these were not suitable for the people I would visit. Eventually an agreement was made and the meetings took place over the Christmas break, in the period between the organizations and university starting again the New Year. The schedule of work did not change excessively. Apart from re-visiting certain aspects numerous times, something I had not anticipated, the whole project ran relatively smoothly. Throughout the project weekly meetings were held with my project supervisor. These meetings allowed the project direction to be maintained through the setting and fulfilling of short term objectives. The meetings also acted as a useful time to gain feedback and obtain advice, which stopped the project from stalling. The structure of the project was covered by my gantt chart (appendixâ&#x20AC;Ś). The first semester was easier to plan for as it mostly consisted of forming a literature review and researching relevant areas of the project. Although I managed to complete both visits in the first semester, this was slightly ahead of schedule. Semester 2 was a little more difficult to plan for, firstly because it was so much 48

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further ahead than semester 1, but secondly there was the need for additional visits I had not planned for. These secondary visits meant that time I had planned doing other tasks was taken up by re-visiting sources I had first consulted in semester 1.

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9.0 Further Work and Limitations There is massive potential for further work within the field of this project. As mentioned before (number of SMEs) and the lack of research that has gone into providing a lean service for these small enterprises. The objective of this project was to produce a simple lean assessment tool for SMEs, with accompanying guidelines. This project has only looked at the tools available and how they relate to SMEs, when considering the differences between SMEs and large multinational organizations. There are numerous more aspects of the lean journey, which all manufacturing enterprises will need to participate in if implementing lean, which could be looked at. The work completed is completed after I made informed decisions about aspect of the lean within SMEs, these decision may be different for other people when looking at the same information. The obvious progression for this piece of work is to continue the implementation guide further than this project takes it. This would include ways of improving the current tools being used, ensuring the current tools continue to work effectively and also new tools which could be a benefit to SMEs. Further progressions in this way would provide SMEs with a more complete guide to lean implementation. As stated earlier, this guide is not the perfect guide for all SMEs and should be classed as the only way of going about implemented lean. With this in mind, alternative guides could be produced. This could give SMEs a choice of tools to use as well as different ways of implementing them. A set of guides could be provided to SMEs, along with the guidelines to accompany them, and the organization themselves could decide on what direction to go and how to implement lean. This would give the SMEs more freedom and independence, this additional flexibility in the end could lead to them being more competitive. The limitations within this project leave a large range of work for further projects to use. The major limitation within this project was the lack of testing. If I was able to complete testing, there would of have been an additional refinement of the guide using the feedback from this initial testing. Further work could be completed by 50

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participating in some form of testing and using the feedback provided to improve the guide. Another limitation was related to small number of visits. I only had contacts for two organisations, and this was all I managed to visit. I found the information gathered from the visits more useful than the research completed before completing the visits. Seeing the tools in use in a working environment was a more informative experience than all the research completed prior. If the number of organisations visited could be improved, I would have gained numerous more ideas that could have been imparted into the guide. Alongside this, it would have been greatly beneficial I could have visited some more SMEs, especially some on the lower end of the scale. This would of given me an insight into the problems they face, rather than relying solely on research. Even thought there was a suitable amount of information found, my knowledge would have been vastly improved if I could have seen the problems first hand. This project has been quite comprehensive, this shows by the main points of further work originating from the limitations found. This area of work is something that has scope for a lot more further work, due to the lack of research completed in the area before this project.

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10.0 References Books Bennett, Roger. Small Business Survival. Pitman Publishing, London, UK, 1989 Bicheno, John. The New Lean Toolbox. PICSIE Books, 2004 Caley, Kevin., Elizabeth Chell, Francis Chittenden and Colin Mason. Small Enterprise Development. Paul Chapman Publishing Ltd, London, UK, 1992 Collins English Dictionary. Collins, 2003 Conner, Gary. Lean Manufacturing for the Small Shop, SME, 2001 Dennis, Pascal. Lean Production simplified. Productivity Press, NY, 2002 Duggan, Kevin J. Creating Mixed Model Value Streams. Productivity Press, NY, 2002 Feld, William M. Lean Manufacturing. Tools, Techniques and How To Use Them. St. Lucie Press, 2001 Jones, Dan., James P Womack and Jim Womack. Seeing the Whole: Mapping the Extended Value Stream, Lean Enterprise Inst, 2002 Liker, Jeffery K. The Toyota Way. McGraw Hill, 2004 Ohno, Taiichi, Toyota Production System, Beyond Large-Scale Production. Productivity Press, Portland Oregon, 1988 Tapping, Dan., Tom Shuker and Tom Luyster. Value Stream Management, Productivity Press Inc, 2002 Womack, James P., Daniel T. Jones. Lean Thinking. Simon & Schuster, 2003 Wu, Yen Chun. International Journal of Operations and Production Management (Volume 23 Issue 11) MCB UP Ltd, 2003. Web-pages Prof David Little, Alistair McKinna. 2005. Lean assessment tool for use with SMEs [Online]

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http://www.manufacturing-awareness.com/Adobe%20Documents/Thinklean%20Assessment%20(new).pdf [Accessed 10 November 2008] European Commission. 2008. The new SME definition [Online] Available at; http://ec.europa.eu/enterprise/enterprise_policy/sme_definition/sme_user_guide.p df [Accessed 10 November 2008]

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ThroughPut Solutions. 2007. Case Studies / Results [Online] Available at; http://www.tpslean.com/results.htm [Accessed 10 November 2008] Gemba Research. 2007.Kaizen and Lean Manufacturing Glossary [Online] Available

at:

http://www.gemba.com/resources.cfm?id=320

[Accessed

February 2009] Bizbodz.com. 2009. Step by Step to Value Stream Mapping [Online] Available at: http://www.bizbodz.com/Business-Improvement/Lean/Value-Stream-MappingHow-to-Guide-Part-1.asp [Accessed 11 February 2009] Hutex.

2008.

SME

Problems

[Online]

Available

at;

http://www.hutex.com/Problems.htm [Accessed 11 February 2009] Lean

Pathways.

2009.

Glossary

[Online]

Available

at;

http://www.leansystems.org/glossary.html [Accessed 13 February 2009]

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Appendix 1 1.1 Gantt Chart 1.2 Objectives Form

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Gantt Chart

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SEMESTER 2 1 2 3 4 5 6 7 HOL 8 9 10 11 12 13 14 15

Viva, Poster, Portfolio, Exhibition

12 13 14 15

Final Report - Hand In

SEMESTER 1 HOL

Interim Presentation

WEEK 1 2 3 4 5 6 7 8 9 10 11

Lecture, Part C Project. Visiting Supervisors Allocated Project Objectives Form Research Existing Literature Write Literature Review Proof-Read Visit Companies Report on Findings Prepare for Presentation Research Lean Approaches to use Decide on Lean Approach/Tools Model Lean Assessment Tool Produce Guidelines Estimate Results Complete Write Up Proof Read Viva, Poster etc Continuous Write-up Interim Report - Hand In

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Objectives Form

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Appendix 2 2.1 Notes from GKN 2.2 Notes from Extec 2.3 Images from GKN 2.4 Images from Extec

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GKN Notes Training 1.

Initial step was completing one-day workshops for middle management to get an insight into lean.

Secondly, upper management participated in a 3 day leadership course for lean.

Finally the selected lean team completed a 48-week lean training course, at a cost of ÂŁ2,000 per person. At GKN 7 people finished this course.

Little steps were taken when involving the workforce they were initially against the idea of lean. Decision was made to start with a ell who supported lean and the rest of the workforce followed. 5S Before each event, the cell in question gets 3 days ahead of the production schedule. The people involved in the three day event are; cell leader, lean management, leadership team, operators, maintenance and employees for training. The employees trained in this event will run the next event with only the help of management. The cost of this varies per cell. Savings made are mainly made in time savings. Visual Management These events are completed at the same time as the 5S events. This simultaneous implementation reduces disruption. This involves very little resource cost, and savings again evolve around time savings. Autonomous Maintenance This is linked to visual management. The visual displays aid the operator to perform simple maintenance on machinery. This is completed over one-day. The 60

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cell does not increase production prior to this event but catches up over a short period of time after the event. The implementation cost is minimal but the savings cost are vast. This is due having less breakdowns and therefore a higher productivity. Standard Work This coincides with 5S but is implemented separately. Initially a lost time analysis tool is used; this consists of reviewing the amount of production time lost over the last period time. The information from 10 weeks lost time analysis is used to formulate standardised work documents. The operators create the lists with the guidance from the lean management. This increases productivity and a review is called every three months.

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Extec Notes Due to the downturn, there has been zero production for two months. This is when lean was implemented. This meant there was no need for kaizen events. The small amount that was implemented before the downturn was done using the little and often attitude. Training For about 8months a consultant was employed to work around 6 days a month. This was the only real source of expertise. The trial bay consisted of a group of employees who were willing the embrace the lean changes and the rest of the workforce followed once the advantages were seen. One person per line was given lean duties, alongside their current role. The work undertaken by them consists of half a day a week on lean. 5S Three of the five points were implemented, making it easier initially. ÂŁ700,000 of obsolete stock was sorted and sold, which gave an additional source of income. Simplify was completed by using shadow boards for tools. Also her, cell layout was considered to make production run smoother. Finally and good clean and painting ensured shine was competed. KanBan Three spaces were marked out on the shop floor for kits, this was done so if the replenishment was instant, productions wouldnâ&#x20AC;&#x;t stop. Due to machine variables, this needs to be slightly intelligent to ensure the different kits for different variables came to line in the correct order. A KanBan was set-up for nuts and bolts, and between stores and the line. The next step is to increase the KanBan so it can be used for items coming from fabrications an eventually for suppliers also.

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GKN Images 5S cleaning station

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Visual Display Location

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Autonomous Maintenance Checklist

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Visual Management

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Extec Images Power Pack Bay â&#x20AC;&#x201C; Before

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Power pack bay â&#x20AC;&#x201C; After

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Designated Stock Locations

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KanBan System

Lean Approaches in SMEs