The Quality Cycle

We’ve been away from the blog for a while but still working away on the lean projects discussed last time. Our designers have been very busy with production design project work and we’ve had some growth in the last months adding new staff and projects.

We’ve added another initiative to our lean work that ties together existing lean projects and complements our human resources plan.

The Quality Cycle Project, which I’m leading, links standard operating procedures, employee expectations, quality checks, error tracking, employee communication, training and development, and performance management.

The current state of quality control is not clearly defined and checking of work before release to clients is performed but not to any particular set of standards. Reliance on the expertise of project managers and senior designers is now the cornerstone of the quality process. It works but project managers needed a way to ensure consistency in the process and streamline it to reduce rework and ensure errors are not missed during our period of business and employee growth.

We met with project managers and decided that the whole cycle needed to be addressed and not just the quality check piece. There needed to be standard operating procedure for design and quality checks, error tracking for improvement purposes, an understanding by employees of what was being checked, and a feedback loop including, training and best practices. All of this is linked then to human performance management, which includes the training and development piece, coaching, and performance improvement.

It’s important to note that all of this is to be achieved with the lean principles in mind. Foremost in these principles is that the view of this process is from the customer’s perspective. The quality cycle objective is to deliver quicker with higher quality. It’s also about improving the performance of the value stream and that can only be achieved with employee involvement and participation in the process. The quality cycle is not about individualizing and tracking employee performance. It is designed to improve overall company performance.

It is about individual accountability though. Managers will review through feedback, coaching, and documented training objectives how employees develop skills to improve performance. If a skill deficiency exists, a training plan is established and employees are accountable to improve the skill. In relation to what is measured, the process is very open and employees will be provided the list of deliverables that will be reviewed during the quality check process.

We are now at the check stage where we will run a trial of the future state starting the end of this month and then review and adapt before implementation company wide.

Go Montreal!!

Ken Hogan
Lean Guy at Genoa

Five Lean Projects Underway

In a recent blog I discussed Lean Level 1 Certification through CME. Since then, the classroom portion of the training is complete and we’ve selected three projects for these teams.

In addition, two other lean teams are up and running and we've made significant progress.

In each case, project charters including scope, deliverables, and milestones have been established.

Team projects are summarized as follows:

1. Training and Development Team

This team was established in November to assess current skill levels and create a means to improve performance and develop employees. Led by Senior Designer Brian Newhook, the team has completed a skill assessment of all employees, established company skill level requirements, identified areas of risk, and put together the plan for improvement.
They are presently focusing on minimizing the risks identified in specific areas through a mentoring program to ensure expert level capability exists in all areas, with a minimum of three employees meeting the expert criteria. They also have an excellent plan that will be launched this week to all employees that will see individual skills improved using training plans to close skill gaps.
Employees will submit their individual training plans to the team who will approve training plans to raise the overall skill level at Genoa.

2. Total Productive Maintenance Team

Led by Gus Slaney, IT Support Specialist, the team will review the current maintenance requirements for all of our computer equipment. The objective is to provide solutions that will remove the need for individuals to run the various programs that scan for viruses and clean up hard drives. Ideally, automation of these functions will free up systems and operators to concentrate on design work. Presently, relying on manual interventions increases risk of infection and slows operations.
A cost / benefit analysis completed as part of the project will allow Genoa to decide which solution options are practical.

3. Cut the Waiting Team

One of three projects undertaken by the leaders trained by CME, this project is looking at sources of waiting that impact production, and cause delivery delays. The team, led by Project Manager, Chad Mercer has identified many sources of waiting and divided the list into two categories. External waiting includes all issues outside the direct control of Genoa. Studying these issues will identify issues in which Genoa can influence outcomes and improve lead times as a result. Internal waiting is directly within the control of Genoa and with corrective actions can greatly impact lead time. Both categories have been assessed and assigned to a priority matrix. Impact on operations, and ease of correction are criteria used to determine areas to work on.
Next, the team will meet with senior managers selecting items to work on.

4. Value Stream Mapping - Modeling

Led by Project Manager, Kyran Pennell, value stream mapping techiques will be used to analyze the modelling process. The objective is to identify waste, create flow, and introduce lisp routines minimizing designer effort. A training and best practices component of this project will allow designers to share knowledge and create learning opportunities improving performance. Of the projects ongoing, this one will identify and eliminate the waste within the work. In all other projects, waste identified could be considered as external to the design process.
Experienced designers on this team have their work cut out as the nature of the work lends itself to creativity and operator-unique approaches to completing tasks. The challenge will be in finding methods of improvement without removing the creative aspect from designers.

5. Standard Operating Procedures, Checklists, and Tools

Senior Designer, Angela Porter leads this team to formally identify, document and/or establish standard procedures and tools for the performance of all tasks. The goals and objectives of the SOP Project include standardization of procedures, work instructions, checklists and other tools relating to Genoa's operations and project deliverables.
It includes items such as, consistency in standards related to Genoa deliverables, assisting new employees with clearly defined procedures and documentation, assist training and development, and creation of an environment promoting employee involvement.The team will compile and index existing procedures, review them for relevance, opportunity for improvement, standardize a format, and identify needs for new procedures. It will develop a mechanism for continuous review and renewal. A communication component ensures awareness of procedures.


This is great progress and many thanks to team members for remaining focused and to employees for contributing to the results.



Ken Hogan

Lean Guy at Genoa

Data Analysis Term Paper

In our search for takt time, Allison Kennedy, a Memorial University Naval Architecture student, wrote a final work term paper on, "Lean Principles in a Marine and Shipbuilding Engineering Environment."

This detailed analysis used data collected from past projects at Genoa and tested theories of production rates existing in the marine engineering design field. This is something we've been working on as a R&D project and I've referred to it in past blog postings.

While the entire paper most accurately describes the process and findings, the following is a summary of Allison's conclusions and next steps.

It doesn't read like a John Grisham novel but contains some valuable information.

Ken Hogan
Lean Guy at Genoa

"Lean Principles in a Marine and Shipbuilding Engineering Environment"

Conclusions
Implementing lean into a virtual marine and Shipbuilding Company is not a straightforward process. There are no physical objects to count or measure in order to determine the production rate. It is still unknown if a valid production rate can be determined by analyzing accumulated data from past projects. This may be an aspect contributing to the fact that there are hardly any similar companies worldwide that have attempted to implement lean. Since there are no guidelines to follow, the process is deemed as research and development and this adds to the level of difficulty of the problem.
There were a total of six tests completed using the accumulated data from past projects in an attempt to determine a valid production rate. Five of these tests were based on the same idea, which is to use the collected data to find parts per volume and parts per hour value. These general values were used to determine the number of completion hours required to complete future projects. The first step taken was to determine the calculated number of parts by multiplying the calculated parts per hour value by the known volume. Next, the number of completion hours could be found by dividing the calculated number of parts by the calculated parts per hour value.
Tests one through five grew increasingly more detailed in attempt to determine a smaller completion hour variance. The first test was general and determined ppv and pph values from analyzing the entire data set. The second test divided the data based on ship type assuming that similar ship types would have similar ppv and pph values. Test five was the most detailed test in which the data was split into ship type, ship section and ship length. The outliers were also removed in this test. The results prove that as the testing process moves forward, the completion time variance between actual and calculated values becomes smaller. Test five provides the best results having a variance of approximately 23 percent. This variance is still high and therefore the production rate calculated would not provide beneficial results. However, one must note that the results are continually improving as testing continues. This is a positive factor, which gives hope that an accurate production rate can be achieved.
Test six was based on the determination of a volume per hour value from the analysis of vessels of similar types. The idea for this test was sprung from the thought that additional inaccuracies are introduced from the calculation of a number of parts and that this uncertainty was introduced into the calculated number of completion hours. The method used in test six is more direct than that of tests one through five because the completion hours are calculated in a single step. The results of test six are poorer than that of test five. The barge results of test six are compared to the results of test five since test five was completed only on barges. It can be seen that test six produces a variance that is higher by approximately ten percent. This was the first test completed using the volume per hour method, further testing will undoubtedly determine a closer approximation.

Recommendations
There are a number of recommendations which should be taken in order to develop the most efficient and effective method of completion time determination. These are all outlined below for review and consideration:
1. The validity of data should be studies to determine usefulness. As discussed, old data is less valid than newer data for various reasons. A study could be completed to test variations in new and old data and remove any old data which falls out of a certain range.
2. Data capture process should be more accurate. A process should be put in place so that employee time recording must be done at the end of each day. This will decrease the chance that time is allotted to the wrong task and increase the validity of the collected data.
3. There should be consideration put into performing an analysis based on the input of design drawings received from the client. Some details contain less detail causing more PM, set up, modeling etc.
4. An analysis should be done in which the actual hours worked are compared to bid hours. This will give an idea of the variations in bid and actual hours.
5. Additional columns should be added to the ‘Time Estimation’ spreadsheet to ensure the user compares the vessels, which are indeed the most similar. For example the overall length, draft and hull form coefficients should be displayed for each of the completing vessels so that they can be compared with the proposed vessel.Research and development should continue in this area so that an efficient and effective method of determining completion time can be found.

New Year's Resolutions

It's a new year, and the air is full of resolutions.

I just received Jim Womack's latest e-newsletter concerning cadence, and the fact that he has resolved to write one e-newsletter per month.

Personally I have set goals that may very well exceed my capabilities in 2008. Writing this blog once per month may be an example...or may not.

Already, my to-list list is far too long to see an end.

How to prioritize? How to start the lengthy task that we know will take 2 days to complete, when there are other tasks of similar priority that only take one hour and can be easily stricken off the list? How on earth does one organize such a mess? Throw on top of this a Lean Project that will occupy the Lean focus within our company for the next 5 years? With so many items that need attention, focus, teamwork and research, how to pick which Lean project or task to accomplish first?

Cadence mixed with prioritization mixed with low-hanging fruit dangling around our heads...

I believe that this is why we have a tidy little tool we call the Lean Diagnostic. This handy-dandy tool enables us to self-evaluate in an organized fashion, within a variety of topics that span the complete spectrum of running a business.

So as we analyze, it becomes obvious through the low scores, where the weaknesses are, and where the priorities lie.

So as we analyze, we create pull.

Isn't that what a good to-do list should do? It should pull our efforts from us. But the to-do list must be developed intelligently enough that it pulls from us as the customer demands, not in an arbitrary fashion that depends on our moods, or our likes or dislikes. One can compare this to brain "setup" and batching in our brain according to our likes of the day. Every good Lean practishioner knows that batching ain;t good.

Back to cadence. Introduce cadence into the customer pull, and you come up with a way of setting daily goals to strike to-do items off your list. But how do you know how many to accomplish per day if you have not levelled the individual tasks? How about conducting a Value-stream mapping exercise on a to-do list to see which items are wasteful? How about levelling the tasks into equal efforts so that we can set a cadence for ourselves? Not quite Takt, but the cadence that Jim refers to.

So...with these things in mind, I should be able to insert this blog-writing task, which is of equal effort to other items, into my to-do list, set the day, accomplish the task, and strike it off my list once per month. Thus, I too have cadence, and the blog gets done regularly.

This is not the final frontier, but when we can start using Lean lessons and tools to change the workings of our brain, we start making some tremendous hits. To 5S the brain is like finally letting the 5S team enter your office to mess with your drawers. After all...we all know that 5S is good for the other people, but will never work for us.

I think this year I have made some resolutions:
1. Let the 5S team into my drawers.
2. Set a cadence for my to-do list.
3. Get the blog out once per month.

A couple of fun resolutions:
4. Change my voice mail daily, so people know they are leaving messages on a dynamic system, not a useless tool.
5. Run a road race.

Leonard

Genoa Lean Update

A lot has happened since the last blog post way back in October, so here are brief updates on some of the things that have been going on:

International Trade Shows - We've attended both the Society of Naval Architects and Marine Engineers (SNAME) Maritime Technology Concference and Expo in Fort Lauderdale and the International Work Boat Show in New Orleans. Leonard and I presented at both shows innovation sessions on how a company can get lean started. Both sessions were well attended. We also had a lot of interest at our booth in what we were doing in lean and how our pursuit of lean is helping clients success. Besides rising our lean profile, the new business from the shows is impressive and will keep us busy back at the shop for a while, OK maybe a little longer than a while.

Congratulations to Genoa's employees on the excellent reputation you've established in the industry as evidenced by feedback we were getting at the booth. Also, the Kirby 90ft Towboat won a "Boat of the Year Award"...production lofting work done here.


Training and Development Team - I discussed this a few blogs back and I'm pleased to report that we are moving ahead most excellently. Brian Newhook, Chad Mercer, Angela Porter, and Dimitry Kapiturov are the team members focused on improving the skill level of employees at Genoa and have already begun the work by completing the scope and identifying the year 1 milestones of the initiative. This is in keeping with our five year plan of sorting out the skills of our people and improving our production processes through training and development. They've been meeting regularly and right now are in the process of verifying the information we've collected and determining skill level requirements.


Lean Level 1 Certification - Six employees have been selected to complete the Lean certification program offered by the Canadian Manufacturers and Exporters. In addition to Brian, Chad, and Dimitry; Penny George, Kyran Pennell, and Dean Noseworthy will attend six days of training and complete three lean projects over four months to attain certification Level 1.


Search for Takt Time - Allison Kennedy is heading into the final term of her Bachelor of Naval Architecture program at Memorial University and is writing her workterm paper on Lean Principles in a Marine Engineering Environment. She's done a fabulous job of analyzing and summarizing the data that's been collected. So much so that we will be using it to bid some potential projects (we'll test it the old way of course). If you want to learn more on our search for takt time read blogs of May 10, June 14, and Sept 5.

On a related topic, Angela Porter has been assigned some responsibility for the bid process so she'll be working with Allison and Leonard over the next weeks to understand the data and use it to work up the bids. When Allison leaves we'll be looking for a "champion of the data"!! Angela???

Lean and Project Visuals - Cheri-Lynn Chafe is back with us and has been assigned the new role of Planner and Projects Administrator. She is currently completing the Project Management Masters Certificate at Memorial University's Center for Management Development and learning Microsoft Project. We want to get better at managing projects and this role at Genoa will accelerate that process. Picture every ongoing project accurately set up, updated, and visually displayed using Microsoft Project. We'll visually represent project completion status, deliverables, milestones at risk, etc.. We will eventually set-up projects using our production rate data to set the pace. "Big job" Cheri Lynn....good luck with it.

First Christmas gift arrives at Genoa - As I write here, several employees are playing with the new toy that arrived today. Genoa's gift to employees. Nintendo Wii, 32 inch flat screen, and leather couch. Nice!!

Ken Hogan

Lean Guy at Genoa

So you want to be LEAN when you grow up?

I wrote a draft of this blog last week but didn't post it because I wanted to give more thought to getting my message across to those who may be thinking about, or have begun, implementing lean. I have to admit that upon reviewing my draft from last week, I framed the prospect of going lean as a rather frightening proposition. Even the title, "So you want to be LEAN when you grow up?" is, I admit, a little daunting.



Since last week I attended a presentation delivered by Dave Hogg of High Performance Solutions on World Class Fundamentals. His presentation focused on what it takes to become a world class organization and how companies can get there.



So here's what I wrote last week:


When you explain the merits of lean to companies who are considering implementation it's an easy sell on the benefits of reduced lead times, improved work in process(WIP), adding value for customers and the obvious benefits of continuous improvement.




What's most difficult to impress upon company leaders is the level of leadership required to move away from the status quo and take on a different approach to business. In particular a change from traditional production methods to lean systems that create flow and value from the customers perspective.




The Canadian Manufacturers and Exporters surveyed companies implementing lean, asking them to name the obstacles to lean implementation. Amongst the leading obstacles is middle managements inability to sustain lean systems.




Of course this is not unique to lean as it applies to all types of business initiatives, but this is a lean blog so I'll focus there.




This blog's title, "So you want to be LEAN when you grow up?" is a serious question to senior leaders in companies about what it is you're really in for when you say you want to be a lean company. More so; do you really know what it will look like when you get to what you said you wanted?




When people ask what I do, I ask if they know what lean is. Almost all the time they say they do not. Two types of people ask the question. Those who are being polite and really could not care less what I do and those I meet through business networking who might be interested. For the first group I tell them it's process improvement stuff; for the latter group I try to simplify what it is by what it looks like in my mind. Here's what I say: "Did you ever see a bucket brigade in action? (everyone says yes)...... well, it's creating that kind of materials flow in a production environment and I help companies do that."




Lean is a bucket brigade in a production environment. It's about level production and reducing lead time. That's a simplified version but it is the true essence of lean on the floor and every lean effort must be about getting there. I will say that you can make tremendous operational improvements by focusing on lean without ever building the operation to takt time but, in my view, it's the pursuit of operating to takt time and getting there that defines the true lean companies.




So, that's what I wrote last week. Having spent the day with Dave Hogg I realize I missed one very important point that I sort of made, but didn't stress enough. His main point throughout the day; "Lean is a people system". It was a recurring theme during the day and he's 100% right. So, back to the question, "So you want to be LEAN when you grow up?" If you do it most importantly means operating a system that relies heavily on the involvement of people and committment of leaders in the company to achieve a world class status. It also means pursuit of operating to takt time with production steps operating at the same rate, continually removing waste and adjusting the process to maintain flow.



So, is starting with lean frightening? It doesn't have to be at all. Learn as much as you can by reading first, talk to those who have started, seek advice, join a consortium of lean companies, and when you start....begin with the end in mind.


For more on Dave Hogg and High Performance Solutions go to http://www.hpsic.ca/.


Ken Hogan

Lean Guy at Genoa

Genoa Skills Assessment

One of objectives in the first year of our lean plan is to sort out (from 5S) where we are with lean, sort data we've collected, and among other things sort our people. By this I mean assessing where we stand from a skill perspective across the company.


This assessment tool is used in various formats and is generally formatted to fit the needs of the company. However, the intention is to assess skill level, identify training needs, set priorities, and track progress. It will also identify operational risk by highlighting areas where few employees are proficient in critical tasks.


So far, we have the major task required to assess the skill level completed. We recently sent to every employee a categorized list of skill requirements for the fields of design, human resources, lean, and software. We used excel and inserted a comment with a detailed description of each skill requirement and employees assessed themselves on a scale of 1 - 5, with 1 being completely unaware and 5 being at a proficiency level where the employee could train others in the particular skill.


Additionally, each employee identified their interest level in upgrading skills or the need for skill in each particular category. For example: administrative assistants would have no requirement to train in design work and, structural designers expressed interest in piping design. Employees indicated their interest or need with a simple A B C scale with A representing high priority, proficiency essential. Simple colour coding gives a visual representation of the results for both skill level and training requirements. There is also an area to capture employee comments.


Now that we have all of this information, what do we do with it and how can it improve our company?

1.) Time has to be taken by management to review each of the completed assessments for accuracy and ensure management is aware of the actual skill level within the company. It is often different from their perception, both from an individual perspective and overall.
2.) Each skill needs analysis to determine the overall company proficiency level, and a determination of whether or not it's satisfactory is required.
3.) From this analysis, deficiencies need to be prioritized and an overall plan to improve proficiency developed through training, workshops, or mentoring.
4.) Employees who have expressed interest in achieving proficiency in areas outside their normal work need to be identified and development decisions and plans undertaken.

In any case, once the assessment is analyzed and the plans are set in motion, the company begins to improve, remove waste, and offer value to the customer.

Every company can obviously benefit from this type of analysis and it is not difficult to achieve. The key though is actually setting out to get it done. Assign a champion, and begin. The results can be astounding.

Ken Hogan
Lean Guy at Genoa