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Welcome! If you are a first time visitor interested in getting started with Overall Equipment Effectiveness (OEE), click here to access our very first post “OEE – Overall Equipment Effectiveness“.

We have presented many articles featuring OEE (Overall Equipment Effectiveness), Lean Thinking, and related topics.  Our latest posts appear immediately following this welcome message.  You can also use the sidebar widgets to select from our top posts or posts by category.

Free Downloads

All downloads mentioned in our articles and feature posts are available from the FREE Downloads page and from the orange “FREE Downloads” box on the sidebar.  You are free to use and modify these files as required for your application.  We trust that our free templates will serve their intended purpose and be of value to your operation.

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Questions, Comments, Future Topics

Your comments and suggestions are appreciated.  Feel free to leave a comment or send us your feedback by e-mail to LeanExecution@gmail.com or VergenceAnalytics@gmail.com.  We respect your privacy and will not distribute, sell, or share your contact information to any third parties.  What you send to us stays with us.

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Until Next Time – STAY lean!

Vergence Analytics

Kaikaku – Radical Change

Lean has been around for a long time and the naming was not Toyota’s idea. The proof of wisdom is in the results. I don’t sell “lean” per se. I am a change agent with a proven track record that speaks for itself.

Taking a company out of the red and into the black in a matter of months can’t just be described as an exercise in “lean” or “lean thinking.” I’ve had some company presidents call the transformation a miracle.

It’s about radical change, quickly, and effectively. It’s not about consulting and advising. It’s about identifying the opportunities, identifying solutions, and executing changes – immediately! Kaikaku is the Japanese term for radical change.

There’s little time for discussion.  Just get it done, monitor results, and correct negative trends at the earliest possible moment. Achieving radical change requires all the sense of urgency a crisis deserves. When the business is back on the road to recovery, the time will come when those at the top want to know how “you” did it.

Unfortunately, without a pattern of successes that speak for themselves, we are simply looking for an opportunity to apply what we think know from someone else’s experiences.  There is no prescription for a “lean” turnaround though there are methods that are commonly known and easily deployed that can be used to formulate an effective strategy.

It’s not uncommon to hear, “We have exactly the same problem except …”, and therein lies the reason why we need to embrace lean thinking as opposed to “simply” attempting to copy another company’s solutions.  How likely is it that the circumstances your company now faces are exactly the same as those of another company to yield the requirement for their solution?

Use the tools to develop a solution that addresses YOUR problem, YOUR exceptions, and YOUR expectations.  The growth of your business depends more on what makes your company different from the competition … not your similarities.

Until Next Time – STAY lean!

Versalytics

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Timing is Everything – OEE

Flawless Execution – Performance to Plan

Overall Equipment Effectiveness, OEE, is as much about “when” as it is about “how”.  The objective of OEE is to identify opportunities that enable us to maximize the time available to produce quality parts at rate – the ideal cycle time.  This ultimately affects our ability to predict when production should start and finish in kind.

The Plan

Having a plan and executing a plan are far from being one and the same.  Having a plan suggests that we already understand where “losses” are expected to occur.  As such, our ability to execute according to plan is the difference between predictive performance expectations and actual performance results.

The variance between expected and actual results directly correlates to how well we understand our processes – regardless of outcome.  In this same context, the degree of variance observed should also be reflected in the results of our OEE.

This becomes relevant when we consider where we think improvements are required.  If we are unable to predict or anticipate the performance of our processes in their current state, how is it possible to truly identify the return on investment for incremental improvements in the future?

Statistical Process Control (SPC)

How much variance do you observe in the results of your OEE from one run to another?  I wrote a post several years ago titled “Variance, OEE’s Silent Partner (Killer)“, that discusses this concept in greater depth.

The key to improving OEE begins by eliminating the excess variance in the results.  In other words, to control OEE requires us to eliminate the sources of variation.  When the results become predictable, the opportunity to control OEE begins.

Availability is typically the greatest contributor to observed differences in OEE.  The primary reasons typically include unexpected machine faults and / or process failures.  An effective preventive maintenance program will minimize and eventually eliminate the effect of “unexpected” downtime events on your OEE results.

In Conclusion

There is more to process performance than monitoring downtime events, speed, and first time through quality levels.  Performance to plan extends the concept to include whether parts are running when they were actually scheduled to run.

Predictable processes provide for greater flexibility in scheduling as do efforts to reduce setup / change over times and increase throughput.  Toyota’s Heijunka box, a visual scheduling and optimization methodology, relies heavily on predictable process performance and short setup / change over times.

Just in time manufacturing demands unparalleled performance that can be enhanced by using OEE as a key indicator in your production operations.

Until Next Time – STAY lean!

Versalytics

Related Articles

  1. Variance – OEE’s Silent Partner (Killer)
  2. Heijunka: The Art of Leveling Production

Camtasia 9 – Screen Recording and Video Editing

I upgraded to TechSmith’s Camtasia version 9 today and note some very nice improvements that make producing videos with Camtasia so much faster and easier.  Recording, editing, and creating your video is a simple process, even for novice users.  You can save or share your videos by uploading them to Screencast.com, Vimeo, YouTube, Facebook, and more.

camtasia-9-installed

It is so much easier and more effective to create a quick video to demonstrate how to perform a task than it is to describe it in writing.  I couldn’t imagine having to write instructions explaining how to tie shoe laces especially when we consider that our student probably can’t read or write yet!

In this same regard, a video makes for a better coach than a set of written instructions and videos often capture unanticipated experiences or nuances in the process that you may fail to note in your written narrative.

Editing videos doesn’t get any easier or more versatile than with Camtasia.  Simply drag & drop features and effects into Camtasia’s multi-track timeline to place them precisely where you want them.  All of the video editing technologies you need are available using simple mouse clicks.

The tutorials for using Camtasia are professional, easy to follow, and explain how to use each of the features available.  The added benefit of course is to see how powerful videos can be for providing helpful instructions for teaching or using a new software product!

Camtasia can also be integrated into your Microsoft Office applications (Excel and PowerPoint).  Apps are available for both PC and Apple products.

TechSmith Fuse:  Flexibility and versatility are possible when you install this add on that can capture content where ever you are.  Adding content to Camtasia, SnagIt, or TechSmith Relay is simple as you can see from the picture below:

techsmith-fuse

If you’re looking for a screen capture recording and editing package for your computer, Camtasia by TechSmith is worthy of your consideration and the price is very affordable.

For an additional nominal fee, you can purchase a maintenance agreement that will ensure you receive the latest updates free of charge during the subscription period.

What does this have to do with lean?  Written instructions are great and often necessary.  However, there are times when videos are much better suited to explain a given concept or task and usually require less time to view than reading and understanding an equivalent set of written instructions.

If a picture is worth a thousand words, a video is at least that many and more.

Until Next Time – STAY lean!

Versalytics

 

The Point of No Return

The “Point of No Return” is a common expression that typically means you’ve reached an unrecoverable state if you continue to proceed with the current course of action.  When I clicked the “Publish” button for this post, I reached a point of no return (action).

From an accounting perspective, the term “Break Even” point is used to define the point where Total Costs equal Total Revenue.  The break even point translates to the quantity of parts that must be produced and sold to turn a profit.  Stock exchanges around the world serve as a constant reminder that investors are only concerned with PROFIT and return on investment (PROFIT).  In this context, a point of no return (profit) also exists.

Businesses exist for the customer or consumer.  Poor quality, missed delivery dates, short shipments, warranty returns, and poor customer service all lead to higher costs and may eventually cause customers to reach their “point of no return”.  Customers understand that the lowest price is not always the lowest cost option in the long run.  Business depends on repeat customers.

What’s the point?

In the simplest of terms, our actions must yield a return that is greater than the investment required to achieve it.  Delivering VALUE to the customer is one of the underlying principles of lean thinking and is measured by our ability to provide the highest quality products and services at the lowest possible cost, on time, delivered on time and in full.

This all sounds great on the surface but there will come a time where the cost to improve your systems and / or processes will exceed the return on investment – another point of no return.  Alternative, lower cost, solutions must be found to meet your continuous improvement objectives.

Where a significant capital investment is required, your company may require a payback period of one or two years.  A capital investment for a program that is soon to become obsolete is not a feasible option.  The point of no return (investment) is reached before any funding can even be considered.

The Bottom Line

Understandably, the team will become extremely frustrated when the very solution they proposed is rejected or declined.  While they may not doubt their own ability to provide viable solutions, they will doubt the company’s commitment to pursue excellence and continually improve.

For this reason, it is essential for the team to understand the reasons why.  It also underscores the need to identify and respond to improvement opportunities quickly and as early as possible during the launch cycle of any new system, process, or product.

Embrace Rejection

Rejection can sometimes be a gift.  As I have stated many times before, “There’s always a better way and more than one solution.”  Could it be that sometimes bad things happen for a good reason?

Rejection provides (forces) us with the opportunity to consider the present circumstances from a fresh perspective.  If the premise for the proposed solution was to “fix” the current system or process as it’s is now defined, perhaps a radically different and innovative system or process could better serve the company in the long term.

Is it possible that a new and lower cost alternative exists that could be at least as effective and perhaps even more efficient?  There are numerous examples of systems, processes, and technologies that exist today that were discovered by removing the limits that we unconsciously place on the scope of the problem that in turn limit the solutions we are able to develop.

The real problem with problem solving is the idea that the only solution is a “fix” to a system or process that is already be flawed from the onset.

Be Inspired

TED Talks are rife with examples of problem solving that yield radical and in some cases simple solutions.  The following TED Talks may serve to inspire you and your organization to look at problems and their solutions from a different perspective:

These TED Talks present problems on a different scope and scale than we may be accustomed to, however, the very discussion of alternatives alone should serve to inspire radical thinking that in turn inspires radical change.

You may have noticed from these TED Talks that some of the solutions presented were found outside of the context or circumstances from which the problem originated.  Is it possible that a “surrogate” solution exists elsewhere?

“Problems cannot be solved by the same level of thinking that created them.”

The point of no return is significant and literally requires “out of the box” thinking.  Many companies no longer grace our communities or employ our neighbours, losing business and opportunities for growth to lower cost manufacturers and distributors to continually emerging global economy.  The difference could very well be how we embrace the point of no return.

Consider that Toyota, as a new company to the North American automotive market, implemented innovative supply chain,  inventory management, and production techniques to remain competitive.  Radical change and innovation does not imply higher cost or investment.  At best it should simply imply “different”.

Other companies like Apple and GE managed to change their futures under the leadership of Steve Jobs and Jack Welch respectively.  Was it always pretty? Likely not from the books I’ve read.  However, the outcomes are undeniable.

The courage of Steve Jobs to solicit support from Microsoft’s Bill Gates was an extremely radical decision at the time.  This video, “Steve Jobs, Bill Gates and Microsoft – It’s Complicated“, clearly demonstrates the challenges faced in the relationship between Apple and Microsoft.  As for GE, I highly recommend reading “Straight From the Gut” by Jack Welch to best understand the radical changes in business and company culture during his tenure there.

Asking the right questions, open minds, radical thinking, and strong leadership coupled with a commitment to pursue excellence, continually improve, and solve problems may help everyone realize that the point of no return can be one of the greatest gifts you’ll ever receive.

To quote Albert Einstein, “A clever person solves a problem.  A wise person avoids it.” and so we … “look before we leap.”

Your feedback matters

If you have any comments, questions, or topics you would like us to address, please feel free to leave your comment in the space below or email us at feedback@leanexecution.ca or feedback@versalytics.com.  We look forward to hearing from you and thank you for visiting.

Until Next Time – STAY lean

Versalytics Analytics

Pro SQL Server Relational Database Design and Implementation

My copy of the book “ProSQL Server Relational Database Design and Implementation , 5th Edition” by Louis Davidson with Jessica Moss arrived this week.  I’m excited to work my way through it.

A well designed database will significantly increase the performance of your database and greatly improve your ability to write efficient and effective SQL queries.  From a lean perspective, an effective database design is equivalent to “quality at the source”.  Your ability to work with your data is inextricably intertwined with the design of the database itself.

Improving a car’s performance begins with the very engine that drives it.  The same is true for your database.  At 14 chapters and 791 pages, the content of the book is thorough and logical, covering the latest features and enhancements to SQL Server 2016.

Although many developers are inclined to control database activities from the client side “front end”, greater performance can be achieved on the server side.  SQL Server 2016 is a powerful relational database management system where the greatest benefits are reaped by implementing a well designed relational database.

For more information or to purchase your copy, just click on the link below!

Pro SQL Server Relational Database Design and Implementation – Fifth Edition – Louis Davidson with Jessica Moss, Apress

OEE in Isolation

OEE or Overall Equipment Effectiveness continues to pervade the world of manufacturing as evidenced by the number of OEE templates that are downloaded each and every day from our downloads page.  In this regard, it is interesting to note the number of OEE solutions that operate in complete isolation.

A medium to large sized company typically deploys some form of ERP (Enterprise Resource Planning) system to manage almost all facets of day to day operations.  Ideally, an integrated OEE solution could take advantage of the existing data streams.

The argument against integration is the lack of “granularity” in the current ERP database system.  Some databases simply do not accommodate the detailed reporting of downtime events such as set up, material changes, process faults, or other lost time events.  Another related factor is whether these data elements can be reported in real time.

In reality, the requirements to support OEE data collection were simply not considered in the original database design and, as a result, two independent systems co-exist.  An opportunity exists for software developers to expand the capabilities of their ERP solutions.

At a minimum, it is possible to bridge two or more independent databases to create a single report using a third party software provider such as Crystal Reports.  Unfortunately, true integration requires more than simply generating a report to better manage and improve your enterprise.

This is a topic that warrants further review.  If we’re writing about it, someone is either working on it or has already done it.

Questions, Comments, Future Topics

Your comments and suggestions are appreciated.  Feel free to leave a comment or send us your feedback by e-mail to LeanExecution@gmail.com or VergenceAnalytics@gmail.com.  We respect your privacy and will not distribute, sell, or share your contact information to any third parties.  What you send to us stays with us.

Subscribe to our blog and receive notifications of our latest posts and updates.  Simply complete the e-mail subscription in the sidebar.  Thank you for visiting.

Until Next Time – STAY lean!

Versalytics

 

The Problem with Solutions

The value of a solution is a problem not worth repeating.

~Versalytics.org

The 5 Why process is one of the many tools that serve to help us to state a given problem, identify a root cause, and ultimately derive a solution to resolve the concern.

One of the caveats that potentially undermines the effectiveness of the 5 Why process is repeatability.  The probability of arriving at a given solution is as varied as the participants in the 5 Why process itself.

The scope and description of the problem become the framework on which the solution is formed.  The questions that evolve through the 5 WHY process depend on the skills and expertise of the participants.  An effective means of deriving an effective solution is explained in our post “How to use the 5-Why approach.”

The problem with the solutions that evolve from the 5-Why process is the limited scope from which they were derived.  In other words, the application of a given solution is constrained by the very problem it is intended to solve.

We can’t solve problems by using the same kind of thinking we used when we created them.

~ Albert Einstein

The ideal solution will resolve the immediate problem and will also yield broader “best practices” at the system and process levels to prevent recurrence in other/different applications.

The knowledge and lessons learned throughout the problem-solving process should also cascade into the systems, processes, and methods that affect future successes and outcomes.  A problem solved is not repeated.

TRIZ is another creative problem-solving technique used to view problems and solutions from different perspectives.  TIPS, the Theory of Inventive Problem Solving,  is another acronym that may be used to describe TRIZ.  The following websites offer more insight into TRIZ:

The above sites offer insights into TRIZ and how it can influence our thinking to solve problems from new and different perspectives.  Learn more about “Resolving Contradictions” at opensourcetriz.com.

Until Next Time – STAY lean!

Versalytics