Implementing Lean manufacturing in our Organization – Part 3

This is the Part 3 of this series. If you have not read the Part 1 and Part 2 please read by clicking the links

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5) Bottleneck Management
To ensure the bottleneck process (define as any part of the enterprise that limits the throughput of the whole process) is not being affected by other variables, Bottleneck management process is crucial – this is done by ensuring continuous supply of materials, availability of skilled people, reliable machine and methods to ensure high machine uptime.

6) Small strategic buffers or Chokotei (see Figure 7) are placed at bottleneck processes, to maintain a steady flow throughout the process. These buffers cater for short but frequent interruptions such as machine jam, model changeover, material replenishment, protect bottleneck process etc. With this strategic buffer put in place, our system uptime increases.

Small buffer to ensure downstream process continue production when upstream process changes model.

7) Standardized work
Along with all the above initiatives, there is a need to develop Standardized work for all the processes including model changeover, part replenishment, equipment maintenance etc. Performing to standard work allows clear and visible operation. Any deviation from standard work would immediately surface abnormality. This will create an opportunity for improvements. Problems need to be resolved immediately using the 5 Whys or DMAIC techniques. The PDCA approach is adopted to ensure problem does not recur after countermeasure is taken.

8) Frequent Changeover through SMED
The daily planned schedule is to run every part, every day in small lot sizes. To do this, there must be available time leftover within a day after meeting customer demand. Figure 7 shows how to compute number of changeover allowable. The shorter the changeover time, the more changeovers can be done.


Small lot size run is made possible by frequent model changeover. The SMED technique (see Figure 8 & 9) is used to reduce set up time so that the manufacturing system is flexible and can quickly response to any sudden customer change. SMED (single minute exchange of die) together with quick changeover features incorporate into machine, tool and fixtures help to achieve our changeover target to less than one minute



9) Financial Impact and Results
Through a concerted team effort and with the implementation of the lean concepts, the organization has been able to exceed the original goal set. The daily volume increases by 50% from 18,000 to 27,000 within a month. There was a tremendous annual cost saving of US$600K and further cost avoidance cost saving (overtime) of at least US$200K.