The cost of complexity can significantly impact the bottom line of manufacturing companies. According to A. T. Kearney, the top 30 companies in Germany could earn €30 billion more if they would reduce complexity, increasing their EBIT by three to five percentage points. After discussing the cost of complexity in a previous post, using the Maybach as an example, this post describes the general levers influencing complexity cost.
Christoph Roser
The Problem of Losing Kanban – Different Kanban Types
Pull production using Kanban is one of the major achievements of the Toyota Production System and hence lean manufacturing. The work in progress is limited by the number of Kanban. Overproduction is avoided by producing only if a part is taken out of the supermarket and the Kanban card is returned to the start of production. However, this Kanban system works only if the Kanban returns to the start of production. Losing Kanban means not reproducing goods sold. In this post I would like to talk about different methods to prevent the loss of Kanban, including different Kanban types.
The Difference Between Lean and Six Sigma
Lean Six Sigma (also abbreviated as 6σ) seems to be everywhere in industry nowadays. There are tons of consultants, job offers, projects, and articles about Lean Six Sigma. In this post, I would like to talk about where Six Sigma comes from, its difference from lean manufacturing, the reason for its popularity, and its shortcomings.
A Lean Obituary for Maybach – A Cautionary Tale About Cost of Complexity
With the end of last year, Daimler stopped selling its flagship vehicle, Maybach. I would like to use this opportunity to talk about the danger and harm to your company by increasing the number of product types sold. As an illustrative (and expensive) example, I would like to split the total cost of the Maybach in its individual parts (as far as I can estimate them). My hope is that this motivates you to reduce, or at least no longer increase, the number of variants in your product portfolio.
How to Manage Your Lean Projects – Prioritize
In our first post of this series, we discussed how to avoid void work overload using a project management board. The key was to limit the number of active projects. Start a new project only when a previous one is completed. This second post now details which project to start next. Here I want to emphasize the importance of prioritization. I describe some simple tools on how to quickly determine the most important task at hand.
How to Manage Your Lean Projects – Number of Active Projects
Let’s face it – you have more things to do than you can reasonably do in the available time. A constant stream of tasks or problems are waiting for a lean solution. This two-post series wants to help you with that. In this first post, we will discuss how to avoid work overload using a simple project management board. A second post will tell you how to Manage Your Lean Projects – Prioritize.
How a Little Bit of Industrial Espionage Started the Industrial Revolution
The Industrial Revolution changed the lives of ordinary people faster and more radically than any other period in history before it. Within only a few decades, small artisan shops were replaced by large factories. The Industrial Revolution started with the mass processing of cotton. Yet, as we will see, this happened only due to significant industrial espionage across multiple countries.
SMED – Creative Quick Changeover Exercises and Training
One popular approach to battle waste is to streamline changeovers. Changing machines from one setup to another is often a time-consuming exercise. Hence, in lean manufacturing, reducing changeover times is a well-known method for improving efficiency. This post will show a number of examples where these quick changeovers (also known as SMED) can be practiced in an unusual environment.