Business Basics
Home Page


Who is Bill Gaw?
And why should we
listen to him?

 

lean manufacturing principles and techniques training

Bill Gaw's 3-Step, World Class
Manufacturing Training Program
World Class Manufacturing

Increase the effectiveness of your
Lean Manufacturing Program

Manufacturing Simulation Game 

Shop Floor Control
Part 1 of 5


privacy policy

Lean Manufacturing, Basics, Principles, Techniques

For my latest
Goggle.Knol article:
Click Here

 To review Bill's training
 programs, click on 
  the links below: 

Lean Manufacturing Solutions

Performance
Management Training

Production Quality

Supply Chain
Management
Training

Lean Six
Sigma Process

Strategic Planning
Training

World Class Manufacturing

Kaizen Training

     Other Options:   

Manufacturing Simulation Game

Thinking Outside the Box

Implementation, Methodology, and Excellence Improvement Training

Balanced Scorecard Training Program

Kaizen Blitz Event

Lean Manufacturing Operations 

Six Sigma Management

Manufacturing Supply Chain Management

Strategic Planning Management

Quality
M
anufacturing

Lean Management
Certification Program

Lean Manufacturing Seminar

Lean Manufacturing Jobs

Process Improvement Training

Best of Gaw Lean Management Articles

Management of manufacturing has three different phases:

      planning—assigning numbers to expected future events to deter­
mine resources needed to support the plans

      execution—converting plans and taking needed actions, applying
available resources to provide products and services when custom­
ers need them

      control—comparing execution to plans and initiating corrective ac­
tions promptly.

Powerful computer-based systems are available for planning and control; these have been in use for many years, tested widely, and gen­erally perform well. Execution is rarely as disciplined; its systems are often deficient and frequently mishandled. This is our focus.

IMPORTANCE OF RUNNING MANUFACTURING RIGHT

Real wealth is generated in three sources: agriculture—growing things and raising animals; extraction of minerals from earth and seas; and manufacturing. Other businesses simply redistribute wealth through services. For a balanced economy in any nation, it is important that manufacturing be run well.

Figure 1 shows the essential elements of manufacturing. Three par­ties are involved: plants producing goods, their suppliers of goods and services, and their customers. Materials flow from suppliers through plants to customers. Planning and control systems link them with data. Purchasing and delivery data flow between plants and suppliers. Plans conforming to management policies, procedures and judgment flow from systems to plants, and actions send data back to systems reflect­ing performance. People take corrective actions or revise plans when significant deviations are detected. Customers place orders on plants for products or services; these cause data to flow between their and plant systems. Practically every business is both a supplier and a cus­tomer and therefore is part of one or more supply chains.

With modern data processing and transmission, data and the infor­mation it contains flow at blinding speeds like the lightning in figure 2. Compared to this, materials flow at glacial speeds. It was recognized clearly in the 1970s that speeding up and smoothing out materials flows was essential to operating manufacturing plants well and to meeting all management goals.

Figure 3 compares important changes from old to new ways of think­ing and operating plants when the laws and basic principles of manufac­turing were learned and adequate modern systems became available to all firms. Order points once defined an amount of inventory determining when replenishment orders were placed for an economic order quantity; this was replaced by material requirements planning, which linked when and how much of a component was needed to produce its parent items. Instead of starting early to improve on-time deliveries, it became clear that waiting to release manufacturing orders at the last minute resulted in much less work-in-process with attendant benefits in lower capital in­vestment, faster response to customers needs, improved on-time deliver­ies, and lower costs. Traditional accounting practices could measure costs of idle direct labor and expensive machines, which were abhorrent to managers. It was not so easy to see the value of avoiding the waste and cost of committing valuable and scarce resources to items not needed now. Modern computer-based systems were first viewed as great aids to cope with myriad problems that couldn't be avoided. Common were beliefs that materials would be late, scrap and rework would be made, machinery would break down, and records would have errors. The Japa­nese, who focused on improving execution before adopting planning innovations, proved such problems could be eliminated, or at least mini­mized. As a result, systems could be simplified and still be more effec­tive. Once, top priority in running work orders was given to "hot" items missing or needed earlier than planned; schedules developed by formal planning were poor and ignored, thus perpetuating the hot-list. Inven­tory cushions were carried to help cope with insoluble problems; how much to add on each item was an unanswerable question. Trying to pl an the unplannable was futile. Just-in-Time proved to be the best answer.

To Be Continued

For balance of this article, click on the below link:

Lean Manufacturing Articles and go to Series 10


STAY CONNECTED

To stay current on Lean Management Basics and Best Practices, subscribe to our weekly MBBP Bulletin... and we'll send you our PowerPoint presentation, "Introduction to Kaizen Based Lean Manufacturing™." All at no cost of course. 

 

First Name:
Your E-Mail:

 Your personal information will never 
be disclosed to any third party.


privacy policy

Here's what one of our 13,000 plus subscribers
wrote about the MBBP Newsletter:

"Great manufacturing articles. Thanks for the insights. I often share portions of your articles with my staff and they too enjoy them and fine aspects where they can integrate points into their individual areas of responsibilities. Thanks again."

               Kerry B. Stephenson. President. KALCO Lighting, LLC


"Back to Basics" Training for anyone ... anywhere ... anytime

Business Basics, LLC
6003 Dassia Way, Oceanside, CA 92056
West Coast: 760-945-5596 

© 2001-2009 Business Basics, LLC