1st Edition

Liquid Lean Developing Lean Culture in the Process Industries

By Raymond C. Floyd Copyright 2010
    346 Pages 24 B/W Illustrations
    by Productivity Press

    While Lean practices have been successfully implemented into the process industry with excellent results for over 20 years (including the author’s own award winning example at Exxon Chemical), that industry has been especially slow in adopting Lean. Part of the problem is that the process industry needs its own version of Lean. The larger part of the problem is resistance to transformational change, a barrier that can only be overcome with effective leadership and results-oriented planning that engages rather than excludes all stakeholders.

    Winner of a 2012 Shingo Prize!

    Written by Raymond Floyd, an unparalleled leader of Lean transformations, Liquid Lean: Developing Lean Culture in the Process Industries provides potential process industry change agents with the no-nonsense guide needed to eliminate waste and achieve sustainable optimal efficiency. Presenting lessons in lean as they apply within the liquid industries, the book focuses on developing the four measures of Lean as defined by the Shingo Award:

    1. Business Results
    2. Consistent Lean Enterprise Culture
    3. Continuous Process Improvement
    4. Cultural Enablers

    Illustrated with his own success stories, Floyd describes business results, Lean enterprise thinking, and policy deployment in process industry terms. He offers detailed theory, practice, and examples of continuous process improvement, and describes the leadership and defines the ethics needed to evolve and sustain Lean transformation. Floyd lays out the specific steps needed during the first six months of transformation and the benchmarks to be achieved during the first two years of implementation. All companies can benefit from Lean; this book makes sure that those who want it, know how.

    Chapter 1 Business Results in Process Industries
    Introduction
    How This Book Is Organized: Shingo Prize Criteria
    Business Results: Improve Performance with Lean
    Beat the Competition with Very Flexible Manufacturing
    Improve Performance with Lean and an Engaged Workforce
    Gain First Mover Advantage
    Achieve Prompt Improvement
    All Companies Can Benefit from Lean, but Not All Do
    Disruptive Changes
    Why the Process Industry Needs Its Own Version of Lean
    Transforming the Raw Material
    Indirect Material Transformations
    Time as an Independent Element of Production
    Special Case: Continuous Processing
    Notes
    Chapter 2 Lean Enterprise Thinking
    Introduction
    Developing a Western Lean-Enabling Culture
    Historical Perspective
    Early View of Lean: Just-in-Time Manufacturing
    Early View of Engaged Employees: Quality Circles
    The Eight Sources of Waste
    The Relationship between Inventory and Operating Problems
    Value Streams and Support Processes
    Lean Values: Inventory Reductions Can Sustain Improvements
    Lean Values: Culture of Engagement
    Notes
    Chapter 3 Policy Deployment
    Introduction
    Large Events and Small Events
    A Strategic View of Manufacturing
    Strategic Alignment and Necessary Boundaries
    Prerequisites for Structured Autonomous Improvement
    Strategic Direction
    The Role of Communication in Achieving Strategic Alignment
    Limiting Opportunities for Improvement
    Deploying Strategic Intent
    Simple Statement of the Goal
    Prose Statement of Intended Future State
    Prose Statement of Current Reality
    Objective Measures of Progress
    Interim Performance Targets
    Formatting Goal Statement
    Translating Strategic Intent throughout the Organization
    Framework for Action
    How Quality Stations Work
    Display the Team Goals
    Display What the Team Has Completed
    Show the Work in Progress
    Provide Interactive Space
    Policy Deployment in Action: Conversations at a Quality Station
    Internal Team Conversations
    External Team Conversations
    Chapter 4 Improving Flexibility and Availability in Mechanical Equipment
    Introduction
    Single Minute Exchange of Dies System
    What We Can Learn from NASCAR..4
    Translating NASCAR Success to Our Plants
    Preparation
    Teamwork
    Equipment
    How to Use the SMED Concept
    The Five Key Components of SMED Practice
    Separation of Activities
    Modification of Rate-Limiting Internal Activities
    Modification of the Work Team
    Modification of the Equipment
    Modify Equipment to Maximize Efficiency
    Preparing for Events and Sustaining the Improvements
    Outcome of Improvements
    Chapter 5 Operational Planning to Improve ChemicalTransitions
    Introduction
    The Causes of Chemical Inflexibility
    Chemical Contamination
    Unintended Conversions
    Fixed Sequence Variable Volume Production
    The Concept: A Comprehensive Approach to the Production Cycle
    What We Can Learn from the New York Subway System
    The Four Components of FSVV Practice
    Typical Operating Problems
    Changes in Process Conditions
    Additives and Modifiers
    Changes in Reactive Chemicals
    The Fixed Sequence
    Establishing a Fixed Sequence
    FSVV Inventory Policy
    Days of Demand in Inventory
    ABC Inventories
    FSVV Inventory Policy
    Wheels within Wheels
    Variable Volume Scheduling
    Continuous Improvement
    Sustainability over Time
    The “Exception” Problem
    Chapter 6 Assessment and Improvement of Other Accumulations
    Introduction
    Structural Differences between Process Industries and Mechanical Manufacturing
    Small Accumulations in Process Industries
    Chapter 7 Statistical Quality Improvement
    Introduction
    The Power of Statistical Quality Combined with Lean Manufacturing
    Statistical Methods in the Process Industries
    Basic Statistical Concepts
    Six Sigma
    Process Improvement before Statistical Analysis
    Process Improvement Using Statistical Analysis
    Operational Improvement with Statistical Analysis
    Statistical Models of Process Performance
    Using Statistical Analysis: The Process Capability
    Index
    Capable Processes
    Incapable Processes
    Using SPC at the Frontline in a Process Plant
    Using a Run Chart
    When the Run Chart Says the Process Is Operating Normally
    When the Run Chart Says the Process Is Producing an Unexpected Result
    When the Run Chart Says the Process Is “Nearly Normal,” but Results Are Drifting Avoid the Waste of Excess Quality Notes
    Chapter 8 Mistake Proofing or Poka-Yoke
    Introduction
    Mistakes Come in Two Parts
    The Consequences of Mistakes
    Mistake Proofing: Preventing Consequences
    Mistake Proofing Is Common Knowledge
    Warning Systems
    Four Types of Warning Systems
    Poka-Yoke Practice 1: Physical Separation
    Poka-Yoke Practice 2: Visual Signals
    Poka-Yoke Practice 3: Pattern Recognition
    Poka-Yoke Practice 4: Simple Physical Devices and Other Minor Changes
    Approaching Perfect Production
    Chapter 9 Equipment Reliability and Operator Care
    Introduction
    Finding the Cause: Separating the Processes from the Equipment
    The Role of Equipment Reliability in Lean Practice
    Operator Care
    The Fundamentals of Operator Care
    Phase I: Basic Care
    Keep the Equipment Clean
    Keep the Equipment Cool
    Keep the Equipment Lubricated
    Phase II: Advanced Techniques
    Define Your Goals
    Change the Oil and the Filters
    Pay Attention
    Autonomous Maintenance as an Element in Improvement
    Autonomous Actions
    Chapter 10 Lean Leadership and Ethics: Creating an Engaged Workforce
    Introduction
    Improvement Experiences at the Frontline
    The Structure of Employee Engagement
    The Elements of Engagement
    Clear Goals
    Skills Necessary to Achieve the Goals
    Time to Make Improvements
    Access to the Resources That Cause Change
    Framework for Action
    Engage Frontline Teams
    What to Do When Teams Do Not Engage
    Refresh the Understanding of Small Event Improvement
    The Subjective Elements of Engagement
    Lack of Trust in Management
    Disruption by Team Members
    Intentional Disruption
    Unintentional Disruption
    Industrial Culture
    Notes
    Chapter 11People Development
    Introduction
    Impact of Competent People on Organizational Performance
    Competence Defined
    Basic Competence
    Basic Competence Development
    Superior Performance
    Critical Positions
    Finding the Right Management Tool
    A Quick Description of Our Analysis
    The Influence of Critical Positions on Improvement
    Individual Contributors
    Subject Matter Experts or Mentors
    Leaders
    Identifying Critical Roles in Your Organization
    Common Misconceptions
    Developing Highly Competent People
    Beginning the Process
    Prompt Improvement
    Sustaining the Improvement
    Chapter 12 Leadership: Initiating and Sustaining Lean Operations
    Introduction
    Transforming an Organization and Sustaining the Change
    Sustaining Improvement
    Process Documentation
    The Role of Transformational Leadership
    Sustaining Leadership
    When the Leader Is Not the CEO
    Getting Started
    The Value of 6-Month Intervals
    Three Attributes of a Successful Beginning
    The Value of Shared Vision
    The Value of Immediate Pilot Projects
    The Value of New Tools
    Notes
    Index
    About the Author

    Biography

    Raymond C. Floyd is senior vice president of Suncor Energy. Prior to joining Suncor, Ray retired from Exxon Mobil, where he spent more than 20 years and where he most recently served as global manager of manufacturing services. Previously, he was with General Motors for more than 10 years. Ray is generally recognized as one of North America’s “early adopters” of lean manufacturing and is among the very first worldwide to adapt lean technologies for use in the chemical and process industries.

    Following the practices described in this book, Ray led the first chemical business to receive the Shingo Prize and has led two separate businesses that have been designated as one of “America’s ten best plants” by IndustryWeek magazine. Ray is the only person to lead businesses in both chemical and mechanical manufacturing to receive that designation. As site manager for Exxon’s massive Baytown chemical plant, Ray led the team that was designated as “best maintenance organization in large industry” by Maintenance Technology magazine. Ray received the Andersen Consulting award for “excellence in managing the human side of change.”

    Ray has degrees in chemical engineering, business administration, and law. He is professionally licensed as an engineer, attorney-at-law, and patent attorney. He has also received international senior executive development at the Institute for International Studies and Training in Japan and the Institute for Management Development in Switzerland. Ray was appointed by President Reagan to represent the United States at the Japan Business Study Program as a guest of Japan’s Ministry of International Trade and Industry. Ray’s wife, Marsha, is also an attorney-at-law. Ray and Marsha have two daughters, who are both physicians, and five grandchildren.

    I urge all manufacturing managers and leaders to read this volume carefully and to take Ray’s lessons to heart. They will be doing their organizations, their shareholders, and their employees, a great service.                
                             — Rick George, President and CEO, Suncor Energy Inc.

    If you truly want world-class performance, you will want a copy of this book on your desk as a ready reference manual.
                            — King Pouw, Executive Vice President, Kellogg Company

    This book is about ‘walking the talk.’ Ray provides uniquely valuable insight from having personally led several organizations to achieve exceptional results applying lean principles.
                            — H. Eugene McBrayer. Former President, Exxon Chemical Company