August 4, 2021

Lean System in Lantech - 2004 Onwards

Case 67 of  Industrial Engineering ONLINE Course

Case 66   The Lean Revolution in Lantech - 1992-2003 - Womack and Jones

Industrial Engineering Case Studies Collection

The waste elimination and productivity improvement that made Toyota the most productive automobile plant in the world (with production being twice that of US plants per worker and at lower cost and at a higher quality) was made possible by further creative application of industrial engineering and scientific management. Both persons who improved Toyota Motors to world class production level have clearly stated this fact in their books (Taiichi Ohno & Shigeo Shingo).  

While Japanese called their system, JIT, MIT researchers gave the name "lean" signifying smaller batch quantities and small work-in-process inventories. All engineers and managers have to recognize the productivity, cost reduction and continuous improvement orientation and practice of industrial engineering.

Articles explaining the relation between industrial engineering and lean manufacturing.




But from a production system design perspective lean now became an alternative system. The earlier basic alternatives were job shop, batch production shop, mass production flow shop, group technology cell or cellular manufacturing cell. The two additional production systems are fixed layout production and continuous flow production. Lean production system having mixed model assembly, supplied through a component supermarket in which replenishment of parts occur based on the consumption during the previous period (may be hour, or day or multiples of day) has emerged as an alternative production system that can be installed right at the starting of the production of new product.  This is the natural progression of industrial engineering improvement. Improvements done by industrial engineers are communicated to designers and product designers and process designers capture these improvements in the subsequent designs.

The improvements done using industrial engineering in Toyota Motors are now captured by production system designers and production managers as lean production system or lean manufacturing system.



2018

Lantech Europe has developed thousands of variations of its products to guarantee that customers are always provided with the right machine at the right time

“Today, we follow all the best methods of lean production, such as one-piece flow, just-in-time, and make-to-order. We combine these with a modular machine build-up approach that enables us to apply a smart customisation process. .. This flexibility and modularity means that we can build lots of variations and, I believe, this is where we add real value, because we can offer customised machines and shorten lead times,”
http://www.manufacturing-today-europe.com/2018/05/21/lantech-europe/

Innovation at Lantech
May 2013
http://www.mbtmag.com/articles/2013/08/wrapped-around-innovation



Ron Hicks - The Man Who Implemented Lean in Lantech - Interview in 2013

Ron Hicks'  degree was in industrial engineering in 1972. He then went through the intensive three-year manufacturing management program at General Electric Co. He successfully understood  and implemented lean, the new industrial engineering - management paradigm, He recognized that the new system is a better paradigm for an effective and efficient production system. The old paradigms  production systems have to be replaced by the new paradigm. 

The old American  manufacturing model was  replaced by a leaner, more automated environment by the Japanese companies for more productivity. Many companies in America were switching to lean system, in which the global competition is the driving force. There are still many in America who do things the same way they always have, because it worked then and it still works now.

Lantech chooses lean approach


The goal of lean thinking is to identify what adds value to the product from a customer's perspective (painting a piece adds value; time spent looking for the right tool does not) and then to analyze current practices and cut out as much waste as possible. The work that has to be done then is designed to flow at a pace to create what the customer needs, when the customer needs it. Before switching to lean manufacturing, Lantech worked under the traditional batch-and-queue process in process layout.

Production scheduling was complicated, involving multiple departments and the entire process required space for huge inventories of material and finished products.

In the lean model a cell has all of the equipment it needs to build a certain type of machine. Lantech builds only to order, and a machine that used to take weeks now is completed in a single day, Problems are found immediately because inspection and verification are done at the site where the machine is built. In the lean system,  Lantech has seen "a quantum leap in quality." Now Lantech produces a broader range of product, three times the output, but still empty space in the plant and customers that are satisfied.
http://www.bizjournals.com/louisville/stories/2003/01/13/story3.html?page=all

Lean Lantech Vision - Jim Lancaster, President, Lantech
Pat Lancaster, Father of Jim Lancaster implemented Lean in Lantech in 1992 with Ron Hicks as VP, Operations
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How to Root Out Waste and Pursue Perfection 
by James P. Womack and Daniel T. Jones
From HBR (September–October 1996)
(Important issues covered: Principles of Lean Transformation: Good description. Lean transformation at Lantech. Kaikaku - transformative radical change)
(You can access two HBR articles free every month)

Work of Management - Book by CEO of Lantech



Updated on  5 August 2021,  22 July 2020, 4 January 2020,  20 May 2018, 23 February 2014

1 comment:

  1. Good to see the old lean success companies still using lean and getting benefits.

    ReplyDelete