Raymond Lean Management
Over ten years ago, Raymond embarked on a journey to implement the Toyota Production System on its manufacturing floor. This has led to a culture of Continuous Improvement that has solidified Raymond’s reputation for quality and innovation in the marketplace.
Through Raymond’s success in implementing TPS they set out and began a dealer initiative to help dealers learn and implement the same principles and philosophies of Toyota Production Systems (TPS/5S). Presently 20+ Dealers in North America are participating in TPS.
Lean methodology has its roots in manufacturing and particularly the automotive sector through the Toyota Production System. Over the last decade, Lean has expanded beyond manufacturing to become a methodology for all value streams looking to improve efficiency and customer value.
A foundational level of understanding of Lean principles can have a significant effect on a business by:
• Removing non-value added business steps that does not transform the product and/or service
• Identifying and eliminating waste
• Kaizen (“Kai” = Change + “Zen” = For the better) small incremental improvements lead by employee’s
• Improving external partnerships
• Heightening communication and collaboration
• Increasing employee morale and job satisfaction
- • Removing non-value added business steps that does not transform the product and/or service
The fundamental principles of Lean are based on eliminating all forms of MUDA (Waste). Understanding Waste is a key component to analyzing and breaking out “Value Add” vs "Non-Value Add” steps within processes and services.
Taiichi Ohno, considered to be the father of the Toyota Production System referred to MUDA as, “Waste is anything other than the minimum amount of equipment, materials, parts and working time which is absolutely essential to add value to the product or service”
Johnston Equipment has begun the TPS journey of implementing Raymond Lean Management. Our aim is to optimize and manage the flow of materials through our shops, distribution and warehousing networks. The Toyota Production System encourages the participation of all employees, so improvements are made across the organization. We know that a journey of Continuous Improvement never ends. There are always improvements that can be made to improve our processes and the customer experience.
The Lean Change Process
Johnston has been using 5S Methodology, the lean tool that facilitates teamwork to continuously improve by standardizing work and eliminating wastes to make problems visible. The steps within the 5S Methodology are listed below.
• Sort – sort and remove all unnecessary items
• Set in Order – arrange items so that they are in the optimal place for their function
• Shine – clean, inspect, and maintain on a regular basis
• Standardize – photos and visual controls to keep everything as it should be
• Sustain – perform regular audits and implement continuous improvements
Standardized tasks are the foundation for Continuous Improvement. When everyone is completing the task the same way, it leads to faster identification of areas causing defects and empowers the team to problem solve by increasing visibility to waste. The 7 types of waste can be summarized with the acronym TIMWOOD – Transportation, Inventory, Motion, Waiting, Over-production, Over-processing, and Defects.
Implementing Raymond Lean Management led to the following achievements at Johnston Equipment within the first 12 months:
• Reduced 80% of the items in the Shop area through the Sort and Set in Order (2S).
• 1,400+ parts have been sorted and returned into stock for re-distribution ($40K)
• A portion of the savings was reinvested into new mobile work benches for all shop technicians
• Reduced sq. ft. in each Shop workbench area by 64 sq. ft. (16% recovery/256 sq. ft.)
• Eliminated lift truck overflow WIP area in shop recovering 800 sq. ft.
• Increased lighting to 145 Lux (+87%) (Industry std. range 100-300 Lux)
• Made room for 4 new technician work benches within current footprint
See below for examples of lean change initiatives led by Johnston Equipment employees:
Office Support Function
Sales Coordination – Quality
- • Sort – sort and remove all unnecessary items
- [Environment] Recycled 4 cubic feet of stationary equipment
- [Morale] Cleared 2 shelves (4 linear feet) & 3 closed cabinets (8 linear feet)
- [Morale] Opened 3 linear feet of desk surface space
- Implemented tools; 5S tape markings, lables/drawer pics
- [Quality] Improved productivity with wip trolly (New/OA > Blog > Shop > Invoice)
- [Quality] Clearly marked defect zone
- [Safety] Reduced daily bends by 56%
Work bench - Space
- Reduced sq. ft. in each workbench area by 64 sq. ft. (16% recovery)
- Eliminated lift truck overflow area recovering 800 sq. ft.
- Increased lighting to 145 Lux (+87%) (Industry std. range 100-300 Lux)
- Increased capacity of available technicians (4 new Tech's)
- 2 point entry allows for continuous flow
Battery Area – Ergonomics, Safety, Quality
- Reduced the amount of bends by 92%
- Reduced total time of testing by 50% (total 12 minutes per battery)
- (Safety) no water/acid cleanup was required
- 66% less acid/water was required to test the cells
GEMBA WALKS - On-going Quality
GNJ's monthly Gemba walk is an approach from a place of mutual respect to identify opportunities for improvements making processes more efficient, safer and easier.
The aim is to better understand the value stream and its challenges.