AUTOMATION AND LEAN Saint Louis MO

In the June/July column we discussed advanced lean techniques, including applications of process technology that automate a work station machine cycle, thereby freeing an operator to do work at a different station. The Japanese call it "autonomation." If we can automate one or more work stations, we can run the same volume of work with fewer people and realize greater productivity levels. Figure 1 (also seen in previous columns) identifies automation as one of the 12 principal tools of lean.

This month we will explore an extreme version of this concept made possible by the advent of ever more powerful, commercially available automated process technology. In taking on this subject, we challenge some traditional lean thinking. Some lean purists will need to consider our suggestions with an open mind. It took an epiphany of sorts to bring me to the realization that technology is evolving so rapidly that, in some industries, the time-honored vision of a lean value stream may soon become obsolete. We will focus on the job shop, but the ideas presented have universal implications.

A GATHERING COMPETITIVE STORM

A good friend of mine runs a very successful CNC machine shop. He is a supplier to Boeing, Autoliv and other large OEM companies. Encouraged by his customers, and with their assistance, he launched a lean initiative several years ago. He has a willing and capable work force, and in time he organized the shop into a number of cells that were focused on fairly narrow part families. In most cells, they were capable of a one-piece flow. Lead time was short, inventory was low, quality was excellent and life was good—for a while.

Then two things happened at the same time. First, he began to lose work to competitors who had duplicated his lean capabilities; i.e., his competitive advantage had been wiped out. However, in spite of some erosion of work due to competition, an effective marketing strategy and a strong economy pushed his sales up, resulting in a severe strain on his capacity. With the need to invest in new equipment, space and people, he was compelled to consider all of his options. Should he duplicate his traditional lean cells "in kind," or was there a better way?

As he searched the market for state-of-the-art CNC machining technology, he found that high-speed, multitasking machines were available with quick-change tooling, pallet changers and other features that offered extraordinary performance. In short, this equipment could perform the same work as his traditional lean cells with equal flexibility, but with much lower labor content. In effect, a single piece of equipment is the cell, and it virtually runs itself. He bought several pieces of this equipment, dismantled his traditional lean cells, and was able to accommodate significant growth without adding space or people.

Two other examples will further illustrate the point. I recently visited another CNC machine shop that was set up in a traditional lean, cellular arrangement. The equipment was older CNC machines coupled with conventional machinery to create a number of focused cells. They too have experienced a lot of success. Lead time is short, inventory turns 20 times annually, and quality is good. The problem is that their costs are too high, and they struggle to fill their capacity at prices that ensure a profit. It appears that this is another case where the benefits of lean may have run their course. At my suggestion, they will be visiting my friend (mentioned above) to benchmark his approach.

Finally, I was in a sheet metal shop last month that has yet to begin a lean journey. The shop is messy, and for the most part it is organized in a process-functional arrangement. But to my astonishment, I found one island of excellence that I believe is a harbinger of things to come.

They have arranged two CNC combined punch-laser machines astride an automated material storage and retrieval system. Sitting in close proximity are enough press brakes to form the blanks coming off the twin punch-laser centers. This system provides the flexibility necessary to run very small lots in just about any mix. There is one programmer and a scheduler that work side-by-side, in full view of the equipment, to create and execute the schedule. A working lead person and the press-brake operators round out the work force. This small group of people runs thousands of high-quality parts every day, and they run them on demand. Certainly there is room for improvement through shop-wide lean practices, but this system offers a solid foundation for success.

What we learn from these examples is that process technology is evolving in direct response to lean objectives. We have been understandably opposed to the "monster machine," the automated behemoth through which all parts must run, in very large batches. But the problems are being addressed. Machine-tool builders live in the same world we do. They know our labor costs are too high and that we need to automate. They know that setup time is the enemy. They know that small lots and frequent deliveries are mandatory. And they are responding with lean-friendly automation. We will ignore these innovations at our peril. If your competitors get there first, you lose.

CONCLUSIONS

There is a wonderful opportunity to mesh lean capabilities and innovative process technology. If we monitor the state-of-the-art diligently, we will find many opportunities to create value streams around high-tech automated solutions. In this effort, we need to engage our machine-tool suppliers in a non-traditional way. Make them aware of your lean-driven requirements, and challenge them to demonstrate the contributions that they and their equipment can make. Have them demonstrate, absolutely, the technical feasibility of their proposed solutions, and require them to participate in the economic evaluation of alternatives.

To stay ahead in today's competitive world will certainly require an aggressive lean-implementation program. It will be important, however, that we include appropriate applications of automation—last, but not least, in the lean tool kit.

Editor's Note: David Dixon, president of Technical Change Associates, is a registered professional engineer with more than 35 years' experience in lean manufacturing, Six Sigma and other improvement initiatives. For more information, visit www.technicalchange.com, or call 801-621-8980. Figure is courtesy of Technical Change Associates.