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Toyota Production System (TPS) - How it Influences Design

Thursday, August 27th, 2009 by Nate

You have probably heard a lot about Lean Manufacturing systems like the Toyota Production System and how it can transform a manufacturing plant by eliminating waste, but you may not know that the principals of the Toyota Production System can also apply to the design process.

One of the first steps in the Toyota Production System is to define what adds value for the customer. During the design we try to completely define what the customer wants. What problems are they trying to solve? What needs are they looking for the machine or product to fulfil? By fully defining the scope of the project, you will end up with a set of expectations that are agreed upon so you know what to design and the customer knows what they can expect to receive. This will help eliminate the “Takes What It Takes” (TWIT) attitude that can lead to overages on time and materials.

The next step is to design for manufacturing. Here at Setpoint, we are always looking for ways to make our machines better, faster, stronger, and less expensive both for us and for our customers. We do this by trying to eliminate complicated parts and assemblies, incorporating features like Poke-Yokes (error proofing) and Single Minute Exchange of Dies tooling, and learning from the best practices from past projects.

One of the final steps in the design process is the Post Project Review. This meeting brings together all of the parties involved with the project to reflect upon the things that went right and the things that didn’t go exactly to plan. It includes the design team, project management, purchasing/receiving, electrical and mechanical assembly, the programmers, accounting, and the CEO. These meetings help us to capture all of the “lessons learned” from the project and use that knowledge on the next projects. Reflecting on past projects is a core value of the Toyota Production System and allows Setpoint to build on our successes and prevent us from repeating our mistakes.

At the heart of it, the Toyota Production System is a method to speed up processes, reduce waste, and improve quality. Applying these principles to the design process, allows you to improve quality, become more efficient and provide exactly what the customer is looking for. Happy Designing!

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Posted in Lean Systems, Project Management | 2 Comments »

Deciding on the Direction for your Company

Thursday, August 6th, 2009 by Brad

Companies that remain static and don’t evolve will eventually lose their profit margins and sink into oblivion. At Setpoint, as we try and adapt to the changing landscape I have noticed several things in dealing with deciding our company’s direction.

First, change is hard. It is much easier to continue doing what has been done in the past, even if it is not getting the results it used to, and rarely have I seen an idea that just works right out of the gate.

You can’t do everything, and if you try to, it will result in spreading your resources (money, time, people) so thin that you cannot be successful at anything. One of the hardest things is, deciding what not to do. It is difficult because you tend think that you are potentially leaving money on the table, and you may be – but you are doing it to pursue a better idea with more potential.

We have found that some feel more passionately about an idea than others, so we have developed a rule that is simply “whoever has passion about an idea gets less than 50% of the vote”. This helps us make more objective decisions. Key message is, don’t be so in love with a strategy or idea that you can’t dispose of it when all the facts point that way.

You never have perfect information before a decision needs to be made. As a result, assumptions are made in order to make progress. The problem is, unless those assumptions are tracked and noted they tend to become facts over time, and often those assumptions are wrong. You have to revisit assumptions to validate, modify, or eliminate them to reflect new information you now have. Not doing so can lead to less than desirable outcomes.

At Setpoint we try and follow the philosophy of “fail faster”. In other words, if something is not going to work the sooner you identify it the cheaper it is for the company in terms of money, time, and people. Most ideas can be validated or eliminated without much cost or time if the key issues have been correctly identified. The few key remaining ideas can then claim your valuable resources.

The shorter iteration cycles the better; the clearer the objectives, the easier it will be to identify the key issues that need to be proved out in order to validate the direction.

These are some of the techniques we are using at Setpoint to decide our companies direction.

This process is an ongoing part of a healthy company’s life. So get on with it.

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Posted in Creative Thinking, Process Improvement | No Comments »

Machine Assembly - What Works Best

Thursday, July 30th, 2009 by Ken

After working in a shop for over 30 years, I have found that following a process when it comes to assembling a machine works the best. 

First, it always helps to sit down with the designer and find out what kind of things to watch for, such as customer constraints or hazardous locations etc.  It is a must to have a complete print package before you start to assemble.  You need to look it over to find the best place to start. 

Subassemblies can be built and then installed on the machine later when the longer lead time items come in.  Most of the time the parts that come in first will be electrical and small parts for subassemblies; this allows you to assemble and wire without having the rest of the machine.

Next, look for assembles that can be built that won’t have to be disassembled in order to install on the machine.  This will help cut down on the time spent on assembly.  I also recommend you build the subassemblies with wire labels and air lines marked for faster install.  You can adjust slides and set sensors on the bench to save even more time.

Once you have the machine base and table top, look for the best way to route the wires and air-lines and drill holes for tie wrap bases or other mounting plates.  Then start installing the subassemblies at the center and work your way out, be sure to tighten all fasteners and check the fit of moving parts.

When all the subassemblies are installed with sensors and air lines ran, it’s time to do the I.O. check out manually then check them through the P.L.C.  Once I.O. is complete you can start to de-bug and run the machine.

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Posted in Lean Systems, Process Improvement | No Comments »

Lean Manufacturing and the 5 M’s

Thursday, July 23rd, 2009 by Clark

There has been a lot of discussion about the Toyota Production System, and Lean Manufacturing but I haven’t seen a whole lot about Lean that specifically points to your factory automation and how it can be developed with Lean in mind.

To put it simply, Lean is an all encompassing philosophy that takes the 5M’s (Man, Material, Machines, Methods and Money), and harmonizes or helps orchestrates them together for the best possible outcome in your manufacturing operations. For those of you who may not have been introduced to the 5M’s I’ll give you a brief overview of how I think the 5M’s can be related to Lean Automation.

  1. Man: You have labor that is required to perform certain tasks to produce your products. If your labor force is not happy you may find your operations struggling. When a direct employee (The ones actually making your company money) interfaces with a piece of equipment they must be comfortable working at a specific station for extended periods of time. Thus, making the factory automation equipment ergonomically compliant will help ensure a safe and productive environment for your direct labor force.
  2. Methods: Every product has a process or multiple processes that it must go through before it is ready to be delivered as a final product to a customer. The methods used to perform value added work to the product must be consistent and controlled. The machine should verify that each process took place properly and that each part or assembly being processed is correct or meets the quality specifications of the part.
  3. Machines: Each machine used in a process must be able to perform its intended function or task with precision and reliability. Making machines that are robust, flexible and scale-able are key to following the Toyota Production System mentality. Machines can also include in process inspections, self diagnostics and mistake proofing features that only allow perfect parts to be passed down stream to subsequent process.
  4. Materials: Every process has materials coming into the work area to be processed or assembled. Making equipment that facilitates easy material flow can pay huge dividends to those who understand that minimizing material movements is vital to being a successful implementer of lean. In-coming and outgoing material flows should be heavily considered when developing an automated solution for use on the shop floor.
  5. Money: When you invest in a piece of automation/equipment, you must be certain, before purchasing, that it will pay for itself. If the machine solves issues and helps you realize the results you are hoping for in your business, you should see a great payback and realize immediate positive impacts on your bottom line

 

So the next time you’re looking for some automation, make sure it addresses the 5M’s and you can’t go wrong.

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Posted in Lean Automation, Lean Systems | 1 Comment »

Outsourcing IT Management

Thursday, June 25th, 2009 by Setpoint

Information Technology (IT) has become a necessary component of today’s business culture.  If you own a business with more than 5 employees, it almost becomes a necessity.   In some form or fashion, you’re going to have to come up with a game plan to maintain and replace your current systems.  What works best?  Let’s talk about that.

If you’re a business with less than 100 computer using employees, you may find a lean philosophy will maximize IT efficiency as well as effectiveness.   Why?  Here are several reasons.

  1. Computer usage has become a common part of American culture.  Almost all sectors of professional life involve the use of a computer. When it comes to small IT tasks, just about any computer hobbyist at a company could manage and maintain software and hardware inventory, the ability to change a forgotten password, and add a printer to a workstation.  Depending on time availability of that employee, he or she could also handle email accounts and basic web site changes.
  2. Microsoft Windows is very stable.  I know, I know… you’ll always have a small percentage of PCs that will tend to crash.   This is more about the law of averages than the quality of Windows.  Generally speaking, a well made, properly installed Windows XP or Vista (and soon to be Windows 7) PC with up to date antivirus and antispyware software will be very solid.  The small stuff is usually easy to fix but what happens when you get a virus or spyware on your computer?  That’s when you need an IT professional.
  3. Difficult server, router, and security tasks are infrequent.   Don’t get me wrong, the need for expert IT professionals is still necessary and vital to the health of any business, but in order for an IT person to be proficient and up to date requires both constant training as well as exposure to these types of problems.
  4. Attrition of employees.  Generally speaking, good employees tend to be here today, gone tomorrow.  Just about every employee is looking to increase his or her leverage in the current job market.   Hey, if you could get a better paying job, with more benefits, and a better boss – wouldn’t you leave?  Of course you would.   Well paid professionals that outsource (in my experience) tend to stick around for much longer periods of time.
  5. The high cost of professional training and equipment.  Training and professional trouble shooting equipment range in the thousands.
  6. Managing and providing HR benefits.

 

What then do businesses need to outsource?

  1. File, print, email, web, and SQL server installation and maintenance
  2. Routers and firewalls
  3. Security implementation policies and procedures
  4. Remote computing access
  5. Budget planning and new business solutions
  6. Workstation hardware and software policies

 

After owning my own IT Company for 11+ years now, I have found that companies that outsource their top level IT needs save money.

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Posted in Creative Thinking, Finances, Human Resources, Lean Systems, Process Improvement | No Comments »

10 Ways to Creativity

Thursday, June 18th, 2009 by Mark

The Mechanical Engineer’s Perspective

  1. Music:  Certain types of music may be used to create a desired mood such as hard rock in a fabrication shop, jazz in the elevator, Kenny G at the grocery store, or Vivaldi playing low in a restaurant.  If there is a genre of music that provokes your spontaneous side, getting into that mood might help boost your creativity.
  2. Change of view:  When we have become numb to our daily routine and surroundings our senses tend to be in a lesser state of awareness.  Changing the physical location of your work space can be an effective way to awaken the sleeping sense of creativity.
  3. Strange Things:  Ambiance, tone, mood, and setting all play a role in your creativity.  Is there something that you can place in your work space that will help heighten your senses and capture your interest?  A Venus Fly Trap?  A clay sculpture?  A 1969 Camaro?  Make your work space someplace that calls to your creative side and beckons for the genius and artist in you to step forward.
  4. Retreat:  If you have been concentrating intently on one issue for too long and keep hitting dead ends, break away from it and “sharpen your blade”.   Is there grass outside that might allow you a brief escape and feel sunshine while you clear your head?  Investing 5 minutes in clearing your head and taking a step back to re-evaluate the problem will be more productive than 30 minutes of spinning your wheels without progress.
  5. On Your Feet:  At Setpoint we have a saying: “To the Whiteboard!!” We find it most effective to communicate our design ideas to each other by gathering around a whiteboard and letting these ideas come to life in sketches, diagrams, and pictures.  While we’re on our feet gathered around a whiteboard ideas are communicated effectively and develop quickly.  This is a great way to help others “see what you are thinking.”  Thinking on your feet in front of a whiteboard can be engaging and allows you to focus your thoughts in a visual and creative way.
  6. Confidence Builders:   It may sound cliché, but there is profound truth in accomplishing something because you “think you can.”  Sometimes when we’re up against a mental block, we just need something to push us forward.  Accomplishing a small task that you know you can do well is one way to achieve that needed boost.  Maybe it’s repairing an engine, fixing something around the house, or building something out of wood.  When you have completed this task - revel in the accomplishment.  Indulge in the reward of knowing you finished this task with perfection, review how you thought of every angle and went the extra mile.
  7. Good Meeting Management:  In the context of a brainstorm meeting, inspiring creativity can depend on the meeting manager among other things.  A good manager can keep a meeting focused on the subject.  A better manager can maintain meeting direction in a manner that the discussion flows freely while generating ideas from the team.  The best manager is decisive and can lead the team into creativity by giving clear guidelines and hearing ALL ideas, allowing expansion on different perspectives, encouraging positive objectivity, does not allow negative commentary on any idea, all while holding the meeting focus and reading the body language of participants to know when it’s time to “move on.”  A productive meeting has a clearly defined objective and end result.
  8. Dealing with Stress:  Stress chokes creativity unless it can be compartmentalized and channeled.  Defining the problem and knowing what the next step is to solving it will give you instant results for reducing your stress level and allowing your creative side to flourish.  Try the following exercise:  Take two minutes to write down all the tasks you are keeping a mental list of, beginning with those that cause you the most stress.  Completely drain onto paper that mental list you are packing around, exhaust every last item.  Including work related items, things from home, and anything else that’s on your mind - one big list.  This should be fast and informal, just find a pencil & paper and start scrawling away.  Next, categorize the items into two separate lists, either “Work” related, or “Personal.”  Finally, prioritize each item in each list in numerical order of what needs to be finished immediately and what can wait.  Having this list in front of you is very empowering, it will help you compare importance of all your tasks and will cause you to re-evaluate your stress level.  All you need to determine is what the next step is for each item.  Don’t solve the entire issue – ONLY THE NEXT STEP. Be realistic, maybe it’s a phone call, a trip to the store, or composing an email.  In some cases you may be able to completely eliminate tasks altogether.  Knowing you have a plan to take action on these items will tremendously relieve your burden.
  9. Use the “Other side”:  Do you dominantly use the right side of your brain or the left?  We tend to approach problem solving in the same way every time.  What if you could teach yourself to approach a problem from a different angle?  There is rarely only one perfect solution for a problem.  Then it follows there are endless ways to arrive at one of the many solutions that will work.  Try some exercises that will get the other half of your brain involved.  The left side of the brain is used for thinking analytically and logically.  We also use it for reading, writing, arithmetic, and understanding symbolism.  The right side of the brain is used for spatial reasoning, visual thinking, and intuition. The right side can deal with complexity, ambiguity, and paradox while the left side looks at sequences, patterns, and lists.  The left side of the brain looks at parts while the right side looks at the whole.  Sometimes, we use the excuse: “My mind doesn’t work that way.”  Therein lies the problem.  Why not train it to work that way and see what you are capable of when you tap into that reservoir of creativity hidden in “the other side.”  (Reference:     http://www.funderstanding.com/content/right-brain-vs-left-brain)
  10. Defining the Problem:  Moving forward with an idea without stopping to question all of the underlying assumptions can be risky.  Understanding the problem from multiple perspectives sheds new light on the solution.  For example, if I were redesigning a dishwasher I would want the insights of several disciplines including: Electrician who has to wire it, maintenance guy who has to install it, maybe even the teenager who would use it.  I would also seek out the Chemical engineer’s input on corrosion resistance, the mechanical engineer’s input on motors and wear.  I would also consider the programmer’s input on failure modes and troubleshooting. What about a blind person’s perspective?  A really short or tall person?    The point is – by thoroughly identifying all of the key issues surrounding a problem you have already developed a significant portion of the solution.

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Virtual Companies

Monday, May 11th, 2009 by Brad

You read and hear a lot about virtual companies these days. What does it take to actually try and make one work?

At Setpoint, we are in a highly cyclical business.  We used to size our business based on the busy times and then try and tough it out during the slow times with out having to lay people off.  Every time you have to lay people off, it is very painful – not only for the people you have to let go, but it is difficult for those that remain. A couple of years ago we made a strategic decision to size our company for the lean times and use outsourcing techniques to handle the busy times, we decided to try and become a small base of key people that can wear many hats and outsource some functions that we believed could be more generic with proper management.

I had read many articles about the virtualization of the work force. One book that gives great insight is The Future of Work by Thomas W. Malone.

It is hard to make a virtual company work. Reading about it is one thing, putting it into action profitably has been much more difficult.

We used www.dice.com to help us filter and identify technical people that fit our needs.  We then used our best mentoring VP to sort through the resumes and set up discussions to find those that might match with our culture.

One thing we did instead of flying them out to meet with us was, we set up a 20 hour project they had to complete (we paid them for this) to see how they would do. We found out a lot by seeing how they solved that project. Like all people that work for a company – not all will be a fit for you or them, the sooner you find out the better for everyone involved.

We have needed many tools to help us make this concept work. One of the main tools we use many times a day is from www.37signals.com – it is called Basecamp. This is our main communication and file tool, it is a diary of all that is taking place and assignments given. We use concurrent licenses for our engineering software programs to give us flexibility to share licenses. www.twiddla.com helps in our concepting phase. Every engineer has a unique color they use so we can recognize who has done what. www.gotomeeting.com is used to host virtual meetings and share information. You will need a conferencing program so that many can join the daily conversations. Setpoint is considering IP phones so we can send phones to our virtual employees and have them just a local extension away.

As you start out with new people give them clear short work assignments to make sure you and they are a good fit with your culture. The key roles of some of your employees will have to change. They have to over communicate and not be afraid to call up and see how their distant team member is doing. One of worst things is to assume everything is going fine if you don’t hear from a virtual team member.

More than anything it is important to have frequent (at least daily) contact with your virtual people. We have done things to connect with our offsite members so they feel like they are working for a real company that cares for them. In Basecamp we have a picture of our facility. As we send messages back and forth through Basecamp we have our own pictures on the message to reinforce that there is a real person behind all of this action.

Your face to the customer has to remain with your employees. We have found that customers have to connect with employees – not virtual team members. It has to appear seamless to them.

We feel that we are making progress but it is a continual battle.  Is it better than carrying too many employees through a downtime in the cyclical nature of this business? For us, the answer is a definite yes.

We are still growing at being a company that has virtual team members and believe we still have many lessons to learn as we go down this path. We’d love to hear from any of you out there that can help Setpoint get there faster.

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Posted in Creative Thinking, Human Resources, Lean Systems, Process Improvement, Project Management | 1 Comment »

Manpower Planning

Monday, April 27th, 2009 by Roger

Science Meets Voodoo

One of the most daunting tasks that I’m regularly faced with is Manpower forecasting and planning for all of our various project efforts.  It seems like everyone always needs to know the facts relating to our human resources…”Do we have enough staff available to take on this new project?”  “How many calendar weeks will this project require?”  “What’s the estimated labor cost?”  “How long will this project take if we put a small team on it?”  “What kind of labor budget do we need to include in this new proposal?”  These are just a few of the staffing-related questions that tend to bubble up around here on a regular basis.  And we are not unique in that aspect.  These questions really apply to EVERY business at some point or another.  And make no mistake about this:  If you are not able to consistently answer these questions for your business within a very small margin of error, you are in big trouble!  Bids will be incorrect, projects will be late and/or over budget, personnel will be overworked, and most importantly, your company’s financial picture will quickly head to the red-ink zone.

First, let’s look at the science involved in the manpower planning process…

There are a couple of scientific tools that I use that I have found invaluable for manpower forecasting. First and most important is the use of reports from historical data. If you have access to data from previous similar jobs, it’s very easy to utilize as a guide for your current efforts. This data includes hours charged to previous jobs sorted by sub categories, calendars days required to complete tasks, as well as individual skill sets applied to the work. If you have this sort of data and can assemble it in a report format, you will find it invaluable to apply to current projects. The second tool that you must have is some sort of manpower modeling device to layout the requirements of your project. There are a number of different ways that you can model human resource requirements. One of the simplest and an old favorite of mine is a spread sheet with resource requirements and availabilities cross-linked. Microsoft Project also has the ability to load and model your resources within a project schedule. It’s a little complicated, but it does the job if you take the time to learn the software. There are also a number of other commercial software products out there that do the same thing.

And then we have the Voodoo…

While there is a large amount of science that you can apply to manpower-planning in today’s working world, the black-magic or gut-feel factor will always be present. This less-scientific side of the game often includes a project manager’s intuition, experience, instinct and occasional dumb-luck. The guys that are good at manpower-planning manage the Voodoo side of the process as well as they do the scientific side. Just don’t ask them to teach it to you, because they probably cannot. It’s just too opaque.

Adaptability is another key part of being able to accurately forecast and deliver the appropriate number of personnel to make-up a successful project team. Once things start to fall away from the plan (and it WILL fall away from the plan sooner or later) the trick is how you adjust. Some tricky projects may require adjustments every day, so a Project Manager has to literally keep a pulse on things every day. Anything less will come back to haunt you before you’re through….trust me on that one!

So if you’ve chosen Project Management as your career path (or if it chose you), then you’d better figure out a way to forecast, plan and track your manpower resources on every job, every day. And you better have a scientific process that covers all of your bases, as well as an open mind for the Voodoo side of things….Stick with this gig long enough and you’ll develop your own manpower planning process to get you through your projects. And if you don’t develop something that works, chances are you’ll be doing something else real soon!

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Posted in Human Resources, Lean Systems, Project Management | 1 Comment »

A Day in Purchasing

Thursday, March 26th, 2009 by Malorie

A normal day in the purchasing department consists of many different tasks and in order to maintain accuracy they all must be followed.  From getting quotes to the actual order process there are many steps involved which seem to all be equally important.  It is so easy for me to skip some of the steps if I’m in a hurry or get interrupted.  When these crucial steps are overlooked I always regret it later because I can’t retrace my steps when an error or question arises.

One of our main focuses at Setpoint has been to make the Lean transformation and cut out as much waste as possible in our daily tasks and ongoing projects.  Purchasing is a huge part of Setpoint’s business so to cut out wastes is a huge deal and any savings that I can generate automatically goes to the bottom line as profit.  It’s a huge task that I want to achieve success at;  therefore I’m always thinking and looking at ways to change what I do to make it more efficient and achieve the same, if not better, results with myself, Setpoint, the vendor, and my customers being satisfied.

In the past five years that I have been in this department I have seen some dramatic changes for the better but I know it can still be better and leaner.  Success has yet to be achieved and that is my ongoing ultimate goal.

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Posted in Creative Thinking, Industrial Automation, Lean Automation, Lean Systems, Process Improvement | No Comments »

What Does the Customer Really Want?

Thursday, March 12th, 2009 by Clark

At Setpoint we follow the Mahan (Mahan Khalsa) culture of selling.  Following are some high level points we closely follow and practice in our daily business relationships with our clients.

Mahan selling is not a technique but rather a culture that establishes a partnership between Consultant and Client.  Too many times sales professionals spend an inappropriate amount of time advocating their products or service before even understanding what the client’s needs, issues and opportunities are.

Mahan selling focuses on understanding completely every aspect of the customer’s needs before trying to pitch a solution that may not be even close to what is needed.  By focusing efforts on the customers issues and opportunities, a sales professional can bring far more “value add” to the table and in the long run provide the solutions that exactly meet the customer’s needs.  Not kind of, or sort of…exactly.

The goal is to be in tune with the customer’s business issues and opportunities.  This can only be achieved by allowing the customer to express what these issues and opportunities are.  Too many times customers just want to know a number or be given a solution to what they perceive as “The” issue.

At closer examination, and with some sincere questioning by the sales professional, a complete, prioritized list of these issues and opportunities can be compiled.  The way to get to a solution that exactly meets your client’s needs is by a “No Guessing” approach to finding out what issues and opportunities your solution will solve or help the client take advantage of.

stoplight

Any time you feel the conversation or sales cycle may not be going in the right direction, Mahan calls this a yellow light.  Our typical reaction to yellow lights in sales is similar to how we drive on the road.  Most people speed up and zoom right through the yellow caution lights.  In the Mahan culture we are encouraged to slow down for these yellow lights and express your concerns to the customer.

If we let the customer turn the so called yellow lights to green, rather than trying to hurry through the issues and do it ourselves, we will be more successful in finding a way to serve their needs.  In fact, if done correctly, having the customer solve the issues or yellow lights can usually create a more positive impression of you and your company’s ability to serve their needs.

 One of the main reasons we try to get an upfront list of issues and opportunities is because there is always a direct correlation between the customers likelihood of buying our solutions at a certain price and the number of issues and or opportunities we and the clients feel our solutions can solve or capitalize on.

So remember, never guess what the client’s needs are.  Ask clarifying questions on what their needs are.  Get out all the issues and opportunities they hope your solution will solve.  And always slow down for yellow lights in the sales cycle and allow the customer to turn any yellow lights to green.

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Posted in Creative Thinking, Lean Automation, Lean Systems, Marketing, Process Improvement | No Comments »

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