Theory and Practice on FiFo Lanes – How Does FiFo Work in Lean Manufacturing?

FiFo LaneFiFo lanes are an important part of any lean material flow. They are a very simple way to define both the material flow and the information flow. In this post I want to tell you why to use FiFo, how to use FiFo, and the advantages of FiFo, as well as show you a few examples of FiFo lanes.

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The Bottleneck Walk – Practical Bottleneck Detection Part 2

Six empty green wine bottlesThe bottleneck walk is far and wide my most favorite method to detect bottlenecks on the shop floor (not only because it was developed by me, but also because it is really good!). You can detect shifting bottlenecks, using no math whatsoever and no time measurements, simply by walking along the production line and observing the line. It’s almost too easy to believe, but it works like a charm! Due to the length of this topic, I have broken the article into two posts. The first post “The Bottleneck Walk – Practical Bottleneck Detection Part 1” details how to find the current temporary bottleneck. This second post details how to determine the big picture regarding the bottlenecks. See below for a complete list of posts on this series on bottlenecks. 

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The Bottleneck Walk – Practical Bottleneck Detection Part 1

Five empty green wine bottlesThe bottleneck walk is far and wide my most favorite method to detect bottlenecks on the shop floor (not only because it was developed by me, but also because it is really good!). You can detect shifting bottlenecks, using no math whatsoever and no time measurements, simply by walking along the production line and observing the line. It’s almost too easy to believe, but it works like a charm! Due to the length of this topic, I have broken the article into two posts. This first post details how to find the current temporary bottleneck. The second post details how to determine the big picture regarding the bottlenecks. See below for a complete list of posts on this series on bottlenecks. 

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Cost of Complexity

Array of carsThe 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.

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The Problem of Losing Kanban – Different Kanban Types

Kanban cardPull 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.

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A Lean Obituary for Maybach – A Cautionary Tale About Cost of Complexity

$439,000 gift with every car purchased
$439,000 gift with every car purchased

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.

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How to Manage Your Lean Projects – Prioritize

Impact Effort MatrixIn 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.

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How to Manage Your Lean Projects – Number of Active Projects

Project management boardLet’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.

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