Developing an integrated quality network for Lean operation systems Abstract: Most successful companies have adopted an improvement methodology to achieve optimum performance, high quality, lower costs and productivity. Some of the common structured methodologies employed are Total Quality Management, Quality Control, Agile, Lean and . Most of the quality tools associated with these methodologies have been applied individually with varied results. This study aims to understand the impact of blending quality and process improvement tools and methodologies to enhance outcomes. The basis of this study is ‘the power of Multiplicity’ through which a diverse collection of improvement paths are pooled into an integrated framework of quality tools for lean and efficient operations. Operations management involves the transformation process where inputs are converted into outputs. The key focus is developing a list of quality tools to match the input, transformation and output phases of operations management for or service ecosystems. Methodology/approach: An extensive literature review provided conceptual understanding of lean and core quality methodologies/tools employed by the manufacturing and service organizations. Interviewing domain experts from a series of manufacturing and service organizations provided clarity in the most common and effective tools, methodology and framework for lean implementation. The methodology was trailed through cooperative inquiry using a case study approach to design an integrated framework suited for specific phases of the operations management. Findings: This study proposes a practical application of theory and accessible list of tools matching diverse phases for successful lean operations in manufacturing and service ecosystems. Basic Operational system

Input Output Transformation process

Every Operational system involves the transformation process in which inputs are converted into outputs. There are numerous structured processes for acquiring inputs, converting or transforming the inputs into outputs and finally delivering outputs (products or services) to meet or exceed customer requirements. Productivity n Operations

Input Output Transformation process Quality Quality Quality Tools Tools

The goal of operations management is to efficiently transform inputs into outputs and is measured by productivity. Productivity measures how well resources are used and it is computed as a ratio of outputs (goods and services) to inputs (labor and materials). There are diverse structured methodologies/tools employed to achieve optimum performance, high quality, minimal waste and productivity. Lean Systems Lean system philosophy has been increasingly adopted in production and service transformations. A Lean system may be defined as an integrated socio-technical system whose main objective is to eliminate waste by concurrently minimising supplier, customer, and internal variability (Shah and Ward 2007). Most Lean production systems are assumed as simple, predictable systems involving integrated management of the social and technical systems within production or service environment. However the application of lean concepts for some domains like healthcare, construction, defence systems are highly complex. The complexity arises due to the large number of dynamically interacting elements, unanticipated variability and diversity of interactions. There is a growing need for having a resilient lean system with the ability to adjust their functioning prior to, during, or following changes and disturbances, so that the system can sustain required operations under both expected and unexpected conditions. Lean Systems Lean system encompasses organisation-wide lean practices applied to all organisational functions, including IT, HR, engineering, procurement, supply chain management, finance, accounting, sales and marketing.

Lean production techniques have contributed to a spectacular improvement in efficiency, speed of response and flexibility in production, through process-based management and highly flexible implementation of these processes (Cuatrecasas Arbós 2002).

Various lean methodologies like 1Just-in-time (JIT), 2Total productive maintenance (TPM), 3Autonomation (Jidoka), 4Value stream mapping (VSM) and 5Kaizen/continuous improvement (CI) are employed. Lean Systems Most commonly employed lean tools are: 1JIT tools includes one piece flow, pull system, , cell manufacturing, levelled production, , visual control, multifunctional employees and JIT purchasing. 2TPM tools includes overall equipment effectiveness (OEE), single minute exchange of die (SMED), , autonomous maintenance, quality maintenance, initial control before starting production, and a safety and hygiene environment. 3Autonomation tools includes mistake proofing devices (i.e. poka- yokes), visual control systems (i.e. andons) and a full working system (Shingo 1986). 4VSM includes visually identifying and measuring waste resulting from the inefficiencies, unreliability and/or incapability of information, time, money, space, people, machines, material and tools in transformation. 5Kaizen tools include 5S, brainstorming, continuous flow, Kanban's, data check sheet, five whys, run charts, Pareto chart, VSM, Gantt chart, mistake proofing and process maps. Lean System Tools

5 1 Just-in-time 3Autonomation continuous (JIT) tools improvement (CI)

2 Total 4 Value productive stream maintenance mapping (TPM) (VSM) Lean System Tools

5 Kaizen 3 1 Just-in-time Autonomation continuous (JIT) tools improvement (CI)

2 Total 4 Value productive stream maintenance mapping (TPM) (VSM) Integrative tools network for lean systems Integration of Quality tools for Lean Operations

INPUT PHASE TRANSFORMATION OUTPUT PHASE

Toyota Production System (TPS) Process Quality Total Quality Management (TQM) Lean – Process, Project or Event 1. DFM—Design for Manufacturability 2. TPM—Total Product Maintenance Lean – Rapid Improvement Event 3. Kanban Rolled Throughput Yield (RTY) 4. Jidoka 5. Fishbone Charting First Time Yield (FTY) 6. Eight-Step Problem Solving Plan, Do, Check, Act (PDCA) 7. SMED—Single Min Exchange of Die 8. Gemba Walk—Go and See Statistical Process Control (SPC) 9. VOC—Voice of the Customer A3 Problem Solving 10. Gap Analysis 11. Five Whys Statistical Quality Control (SQC) Value Stream Mapping 12. SIPOC or COPIS 13. Six Sigma Spaghetti Chart JIT—Just-in-Time Poka-Yoke

System Flow Chart Feedback Result Discussions

The lean study was facilitated by visiting production facility and service organizations employing lean, six sigma and continuous improvement strategies. The study methodology included interviewing the Lean leader of the organization and completing surveys.

The different practices and strategies employed were observed and their overall impacts was investigated. The key focus has been to highlight specific tools employed at the different stages of operation. The study revealed that not all tools maybe successfully applicable for the input, transformation and output stages. An integrated network of lean tools including 1JIT tools, 2TPM tools, 3Autonomation tools, 4VSM and 5Kaizen tools were employed as an integrated network.

The results of applying the integrated network ensured that the continuance and consistency of lean benefits from inputs to outputs stages of production or service operational systems. Practice Strategies Reducing activity duration Proprietary equipment development Balanced Scorecard (financial and operational) Pull production systems Quality management/ improvement Committed leadership Reduce production lot size Continuous/one piece flow Reducing setup time Cross-functional training Reduction of inventories Customer involvement Reduction of production lot sizes Cycle time reduction Reduction of setup times Managing scheduled adherence Remove bottlenecks Eliminating or minimizing waste Scheduling flexibility Employee engagement Setup time reduction Improving equipment layout Employee involvement in the problem solving Focus on single supplier Simplification of materials flow and handling Information and feedback Strategic planning JIT delivery of materials by suppliers Supplier development Enhancing supplier relationships Supplier feedback Adopting Kanban Supplier JIT Lot size reduction Technology emphasis Maintenance Use of error proofing techniques (Poka-yoke) Manufacturing strategy Use of new process technology Organisational characteristics Use of quick changeover techniques Prevention of defective products Using pull-based production system (Kanban) Preventive maintenance Waiting time Product design Workforce management Lean Benefits

Decreasing Cost Improving Inventory turnover Reducing customer lead time Increasing On time delivery Improving customer service Overall customer satisfaction increased Cycle time or lead time reduction Increasing Overall productivity Reducing defect rate Enhancing Product conformance Enhancing delivery dependability Product mix flexibility Improving effectiveness Increasing Productivity Increasing efficiency Improving Quality Fast delivery Quicker delivery compared to competitors Improving financial performance Reducing scrap and rework costs First pass yield Reducing Unit cost

Enhancing flexibility to change volume Increasing Value added time ratio

Inventory reduction Enhancing Volume flexibility Presented by: Dr. Ashish Thomas Bibliography 1. Shah, R., and P. Ward. 2007. “Defining and Developing Measures of Lean Production.” Journal of Operations Management 25: 785–805. 2. Cuatrecasas Arbós, Lluı́s. 2002. “Design of a Rapid Response and High Efficiency Service by Lean Production Principles: Methodology and Evaluation of Variability of Performance.” International Journal of Production Economics 80 (2): 169–183. 3. Marodin, G. A., & Saurin, T. A. (2013). Implementing lean production systems: research areas and opportunities for future studies. International Journal of Production Research, 51(22), 6663–6680. 4. Netland, T. H. (2016). Critical success factors for implementing lean production: the effect of contingencies. International Journal of Production Research, 54(8), 2433–2448. 5. Pakdil, F., & Leonard, K. M. (2014). Criteria for a lean organisation: development of a lean assessment tool. International Journal of Production Research, 52(15), 4587–4607. 6. Wickramasinghe, G. L. D., & Wickramasinghe, V. (2017). Implementation of lean production practices and manufacturing performance. Journal of Manufacturing Technology Management, 28(4), 531–550.