The Foundations of a Sustainable Business

The ABCs of Structured Maintenance, a recent post to this blog, emphasized the importance of maintenance as a foundation for viable manufacturing operations. The following updated version of Cultivating Disciplined Operations, a post from October 2015, expands on the necessity for structure and discipline. — C.H.


Cultivating Disciplined Operations

In order for an organization to function effectively in a competitive world, a culture of disciplined operations is necessary. This does not mean the imposed discipline of a military boot camp. Rather, it means a voluntary coordination of efforts among all involved. As an ideal, consider a symphony orchestra, where a group of highly skilled musicians coordinate their personal talents to a mutually understood and desired end. Yes, a conductor does arrange the music and does direct the tempo. But it is the blended performances of the musicians that work the magic.

Cultivate Text Box“Cultivating” is the right word here. A voluntary coordination of efforts comes about through a culture of mutual respect, directed toward a mutually desired end. It is that culture that needs to be cultivated. Here, “mutual respect” means a sincere regard for the interests and aspirations of everyone involved, diverse though those interests and aspirations may be. “Mutually desired end” refers to a condition in which everyone involved can prosper indefinitely.

An initial assessment of how closely a given organization’s culture approaches one of mutual respect, directed toward a mutually desired end is pretty easy. Employee turnover rates, absentee rates, equipment downtime rates and OSHA recordable safety incidents can readily be compared with relevant norms. Apply Pareto’s rule: if your organization isn’t comfortably in the top 20% for each of these, your competitive posture is at risk. [1] Even if your numbers are all in the top 20% — or even the top 1% — remember that everything and everyone can always improve. Including your competitors, today and tomorrow.

Here are some areas that require constant cultivation:

>> Safety: In manufacturing, a top notch safety program is essential. The benefits of a pain free working environment are immediately clear to everyone. Cultivation of safe operating practices is fundamental to the cultivation of mutual respect. [2]

>> Maintenance: Equipment and facilities need be designed for operability as well as for throughput. Poor working conditions and dysfunctional equipment are antithetical to the cultivation of mutual respect.

>> Training: It is not reasonable to ask anyone to participate in manufacturing operations absent a clear understanding of what that individual is to do and how to do it safely and effectively. My personal preference is that written work instructions be used as a basis for training materials. Trainers should be trained in how to train others. Understanding should be confirmed by demonstration.

>> ISO 9001: The ISO 9001 Standard for Quality Management Systems provides a systematic framework for disciplined operations. It is worth studying, even in part. Implementing systems compliant with the ISO 9001 Standard is a substantial undertaking. However, the cultivation of disciplined operations that occurs while doing so is a substantial reward for everyone and a substantial step toward an organization that can prosper indefinitely. [3]


Chuck in FranceThoughtful comments and experience reports are always appreciated.

…  Chuck Harrington (Chuck@JeraSustainableDevelopment.com)

 

This blog and associated website (www.JeraSustainableDevelopment.com) are intended as a resource for smaller manufacturers in the pursuit of Sustainability. While editorial focus is on smaller manufacturers, all interested readers are welcome.


[1] For more on Pareto and operating performance, see Operational Excellence – The Performance Curve, this blog, http://jerasustainabledevelopment.com/2012/05/24/operational-excellence-the-performance-curve/

[2] For more on safety and its importance, see On Safety and Sustainability, this blog, http://jerasustainabledevelopment.com/2013/10/24/on-safety-and-sustainability/

[3] For more on the ISO 9001 Standard and its application, see What’s Wrong With ISO?, this blog,  http://jerasustainabledevelopment.com/2012/07/05/whats-wrong-with-iso/  and Keeping Up With ISO, this blog, http://jerasustainabledevelopment.com/2014/08/28/keeping-up-with-iso/

The ABCs of Structured Maintenance

Order In – Order Out, Order In – Order Out, Order In – Order Out… is the life breath of a manufacturing business. And the effective maintenance of the equipment, processes and systems that convert Orders In to Orders Out are foundational to the success of that business. This post is an update to a post from five years ago that focuses on the critical importance of structure in keeping maintenance effective. – C.H.


Structured Maintenance (From 1/12/2012)

Sustainability goes far beyond concern for the environment. Adam Werbach* says that “being a sustainable business means thriving in perpetuity”. To thrive in perpetuity requires constant attention to the present and the future on the factory floor, within the business as an organization, within the industry in which the business operates, within global economic and social realities, and within the natural world we all rely on.

For manufacturers, that begins with efficient production and timely delivery of high quality products — all the time. And that requires production equipment that reliably performs as intended. It is the function of the maintenance program to assure that the equipment performs reliably. As extreme examples, think about what “reliably performs” means to passengers in jet aircraft or to sailors in nuclear submarines, not to mention astronauts. The sign on the shop wall that said “If It Ain’t Broke, Don’t Fix It” was retired some time ago.

To be clear on terms, that which is to be maintained, I refer to as a “maintained item”, or, more simply, “item”. An item may be a machine (such as a lathe), a system (e.g. electrical power distribution) or anything else that you may want to declare as a unit for the purposes of maintenance and performance records keeping.

ABC BlocksIt is convenient and useful to divide maintained items into three classes:

Class A Items – The failure of a Class A item can shut down or significantly impair production, or create a serious safety condition, in the entire facility. Most Class A items are utilities or similar services, such as a main power transformer, a boiler, materials conveying system or critical ventilation unit.

Each of these critical items needs both a plan to keep it performing reliably and a plan for its rapid repair or replacement, in case it does fail. The “keep it performing” plan might include a scheduled inspect / clean / service routine, pre-emptive parts replacement based on service hours or proactive parts replacement based on throughput or on monitored machine condition (for example, vibrations analysis).

The corresponding rapid repair / replacement plan might involve in-line spare capacity, critical spare parts inventory, rental equipment (for example, an air compressor) and/or fast response third party service (examples: digital control systems or boilers). Since parts for critical items are often quite expensive, spare parts inventory costs must be weighed appropriately during the planning process.

For critical items, Failure Mode and Effects Analysis (FMEA) may be of significant use in formulating both plans. FMEA is a technique for evaluating the probable occurrence of various failure modes and the likely effects of such failures. FMEA is widely used in the automotive, aerospace and other industries for product and process design and improvement. It works well for critical item maintenance planning too. If you aren’t familiar with FMEA, start with a free power point presentation from Purdue University at www.stat.purdue.edu/~kuczek/stat513/IT 381_Chap_7.ppt. There is a lot more on FMEA on the web. Don’t confuse FMEA with FEMA, the federal agency that is supposed to respond to natural disasters.

Class B Items – Class B includes most primary production equipment, failure of which can shut down or significantly impair operation of a single production line, or create a localized safety concern.

The “keep it performing” plan for each of these less critical items might, as with Class A items, include a scheduled inspect / clean / service routine, pre-emptive parts replacement based on service hours or proactive parts replacement based on throughput or on monitored machine condition.

Appropriate repair / replacement plans might include common spare parts, reconditioned parts (e.g. gear boxes or rewound motors), prearranged “order as needed” parts from reliable suppliers or specialized third – party service calls (preferably with pre-arranged vendors).

Class C Items – Repairs or replacement of Class C items, taken individually or in small groups, are less urgent. Scheduled inspect / clean /service routines are often appropriate. For some high wear parts or for items that require other items to be down while maintenance to be performed, scheduled preventative maintenance may be the best route. Run to failure is an acceptable strategy for some Class C items.

The real point to this post is that effective and cost efficient equipment maintenance requires item–by–item planning, to keep the equipment performing reliably and to correct failures when they do occur. Grouping items by criticality helps make maintenance planning easier.

There is a lot more to maintenance planning than any one post can even hope to cover – look for more on maintenance in future posts.

Chuck at ReneThoughtful comments and experience reports are always appreciated.

…  Chuck Harrington (Chuck@JeraSustainableDevelopment.com)

This blog and associated website (www.JeraSustainableDevelopment.com) are intended as a resource for smaller manufacturers in the pursuit of Sustainability. While editorial focus is on smaller manufacturers, all interested readers are welcome.

* Werbach, Adam, Strategy for Sustainability, Harvard Business Press, Boston (2009), page 9.

Cultivating Disciplined Operations

In order for an organization to function effectively in a competitive world, a culture of disciplined operations is necessary. This does not mean the imposed discipline of a military boot camp. Rather, it means a voluntary coordination of efforts among all involved. As an ideal, consider a symphony orchestra, where a group of highly skilled musicians coordinate their personal talents to a mutually understood and desired end. Yes, a conductor does arrange the music and does direct the tempo. But it is the blended performances of the musicians that work the magic. — C.H.

Cultivating Disciplined Operations

Cultivate Text Box“Cultivating” is the right word here. A voluntary coordination of efforts comes about through a culture of mutual respect, directed toward a mutually desired end. It is that culture that needs to be cultivated. Here, “mutual respect” means a sincere regard for the interests and aspirations of everyone involved, diverse though those interests and aspirations may be. “Mutually desired end” refers to a condition in which everyone involved can prosper indefinitely.

An initial assessment of how closely a given organization’s culture approaches one of mutual respect, directed toward a mutually desired end is pretty easy. Employee turnover rates, absentee rates, equipment downtime rates and OSHA recordable safety incidents can readily be compared with relevant norms. Apply Pareto’s rule: if your organization isn’t comfortably in the top 20% for each of these, your competitive posture is at risk. [1] Even if your numbers are all in the top 20% — or even the top 1% — remember that everything and everyone can always improve. Including your competitors, today and tomorrow.

Here are some areas that require constant cultivation:

>> Safety: In manufacturing, a top notch safety program is essential. The benefits of a pain free working environment are immediately clear to everyone. Cultivation of safe operating practices is fundamental to the cultivation of mutual respect. [2]

>> Maintenance: Equipment and facilities need be designed for operability as well as for throughput. Poor working conditions and dysfunctional equipment are antithetical to the cultivation of mutual respect.

>> Training: It is not reasonable to ask anyone to participate in manufacturing operations absent a clear understanding of what that individual is to do and how to do it safely and effectively. My personal preference is that written work instructions be used as a basis for training materials. Trainers should be trained in how to train others. Understanding should be confirmed by demonstration.

>> ISO 9001: The ISO 9001 Standard for Quality Management Systems provides a systematic framework for disciplined operations. It is worth studying, even in part. Implementing systems compliant with the ISO 9001 Standard is a substantial undertaking. However, the cultivation of disciplined operations that occurs while doing so is a substantial reward for everyone and a substantial step toward an organization that can prosper indefinitely. [3]


Chuck in FranceThoughtful comments and experience reports are always appreciated.

…  Chuck Harrington (Chuck@JeraSustainableDevelopment.com)

 

P.S: Contact me when your organization is serious about prospering in the globalized 21st century … CH

This blog and associated website (www.JeraSustainableDevelopment.com) are intended as a resource for smaller manufacturers in the pursuit of Sustainability. While editorial focus is on smaller manufacturers, all interested readers are welcome. New blog posts are published weekly.


[1] For more on Pareto and operating performance, see Operational Excellence – The Performance Curve, this blog, http://jerasustainabledevelopment.com/2012/05/24/operational-excellence-the-performance-curve/

[2] For more on safety and its importance, see On Safety and Sustainability, this blog, http://jerasustainabledevelopment.com/2013/10/24/on-safety-and-sustainability/

[3] For more on the ISO 9001 Standard and its application, see What’s Wrong With ISO?, this blog,  http://jerasustainabledevelopment.com/2012/07/05/whats-wrong-with-iso/  and Keeping Up With ISO, this blog, http://jerasustainabledevelopment.com/2014/08/28/keeping-up-with-iso/