Liquid lean : developing lean culture in the process industries

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:

Business Results Consistent Lean Enterprise Culture Continuous Process Improvement 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.

Author Notes

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.

Foreword	p. xv
Acknowledgments	p. xix
Chapter 1 Business Results in Process Industries	p. 1
Introduction	p. 1
How This Book Is Organized: Shingo Prize Criteria	p. 2
Business Results: Improve Performance with Lean	p. 3
Beat the Competition with Very Flexible Manufacturing	p. 4
Improve Performance with Lean and an Engaged Workforce	p. 7
Gain First Mover Advantage	p. 10
Achieve Prompt Improvement	p. 13
All Companies Can Benefit from Lean, but Not All Do	p. 14
Disruptive Changes	p. 15
Why the Process Industry Needs Its Own Version of Lean	p. 16
Transforming the Raw Material	p. 17
Indirect Material Transformations	p. 18
Time as an Independent Element of Production	p. 19
Special Case: Continuous Processing	p. 21
Notes	p. 22
Chapter 2 Lean Enterprise Thinking	p. 23
Introduction	p. 23
Developing a Western Lean-Enabling Culture	p. 25
Historical Perspective	p. 27
Early View of Lean: Just-in-Time Manufacturing	p. 27
Early View of Engaged Employees: Quality Circles	p. 30
The Eight Sources of Waste	p. 32
The Relationship between Inventory and Operating Problems	p. 34
Value Streams and Support Processes	p. 36
Lean Values: Inventory Reductions Can Sustain Improvements	p. 39
Lean Values: Culture of Engagement	p. 40
Notes	p. 42
Chapter 3 Policy Deployment	p. 43
Introduction	p. 43
Large Events and Small Events	p. 44
A Strategic View of Manufacturing	p. 45
Strategic Alignment and Necessary Boundaries	p. 48
Prerequisites for Structured Autonomous Improvement	p. 50
Strategic Direction	p. 52
The Role of Communication in Achieving Strategic Alignment	p. 54
Limiting Opportunities for Improvement	p. 59
Deploying Strategic Intent	p. 60
Simple Statement of the Goal	p. 60
Prose Statement of Intended Future State	p. 61
Prose Statement of Current Reality	p. 61
Objective Measures of Progress	p. 61
Interim Performance Targets	p. 62
Formatting Goal Statement	p. 62
Translating Strategic Intent throughout the Organization	p. 63
Framework for Action	p. 69
How Quality Stations Work	p. 70
Display the Team Goals	p. 71
Display What the Team Has Completed	p. 73
Show the Work in Progress	p. 74
Provide Interactive Space	p. 74
Policy Deployment in Action: Conversations at a Quality Station	p. 75
Internal Team Conversations	p. 76
External Team Conversations	p. 79
Chapter 4 Improving Flexibility and Availability in Mechanical Equipment	p. 81
Introduction	p. 81
Single Minute Exchange of Dies System	p. 82
What We Can Learn from NASCAR	p. 84
Translating NASCAR Success to Our Plants	p. 85
Preparation	p. 85
Teamwork	p. 88
Equipment	p. 89
How to Use the SMED Concept	p. 91
The Five Key Components of SMED Practice	p. 92
Separation of Activities	p. 94
Modification of Rate-Limiting Internal Activities	p. 99
Modification of the Work Team	p. 102
Modification of the Equipment	p. 103
Modify Equipment to Maximize Efficiency	p. 104
Preparing for Events and Sustaining the Improvements	p. 109
Outcome of Improvements	p. 110
Chapter 5 Operational Planning to Improve Chemical Transitions	p. 113
Introduction	p. 113
The Causes of Chemical Inflexibility	p. 114
Chemical Contamination	p. 114
Unintended Conversions	p. 114
Fixed Sequence Variable Volume Production	p. 115
The Concept: A Comprehensive Approach to the Production Cycle	p. 116
What We Can Learn from the New York Subway System	p. 117
The Four Components of FSVV Practice	p. 119
Typical Operating Problems	p. 120
Changes in Process Conditions	p. 120
Additives and Modifiers	p. 120
Changes in Reactive Chemicals	p. 121
The Fixed Sequence	p. 121
Establishing a Fixed Sequence	p. 122
FSVV Inventory Policy	p. 126
Days of Demand in Inventory	p. 126
ABC Inventories	p. 127
FSVV Inventory Policy	p. 128
Wheels within Wheels	p. 130
Variable Volume Scheduling	p. 131
Continuous Improvement	p. 134
Sustainability over Time	p. 136
The "Exception" Problem	p. 136
Chapter 6 Assessment and Improvement of Other Accumulations	p. 139
Introduction	p. 139
Structural Differences between Process Industries and Mechanical Manufacturing	p. 140
Small Accumulations in Process Industries	p. 141
Chapter 7 Statistical Quality Improvement	p. 153
Introduction	p. 153
The Power of Statistical Quality Combined with Lean Manufacturing	p. 153
Statistical Methods in the Process Industries	p. 154
Basic Statistical Concepts	p. 156
Six Sigma	p. 157
Process Improvement before Statistical Analysis	p. 159
Process Improvement Using Statistical Analysis	p. 160
Operational Improvement with Statistical Analysis	p. 161
Statistical Models of Process Performance	p. 162
Using Statistical Analysis: The Process Capability Index	p. 163
Capable Processes	p. 164
Incapable Processes	p. 165
Using SPC at the Frontline in a Process Plant	p. 168
Using a Run Chart	p. 169
When the Run Chart Says the Process Is Operating Normally	p. 169
When the Run Chart Says the Process Is Producing an Unexpected Result	p. 171
When the Run Chart Says the Process Is "Nearly Normal," but Results Are Drifting	p. 172
Avoid the Waste of Excess Quality	p. 174
Notes	p. 175
Chapter 8 Mistake Proofing or Poka-Yoke	p. 177
Introduction	p. 177
Mistakes Come in Two Parts	p. 178
The Consequences of Mistakes	p. 179
Mistake Proofing: Preventing Consequences	p. 180
Mistake Proofing Is Common Knowledge	p. 180
Warning Systems	p. 181
Four Types of Warning Systems	p. 182
Poka-Yoke Practice 1: Physical Separation	p. 182
Poka-Yoke Practice 2: Visual Signals	p. 185
Poka-Yoke Practice 3: Pattern Recognition	p. 189
Poka-Yoke Practice 4: Simple Physical Devices and Other Minor Changes	p. 191
Approaching Perfect Production	p. 192
Chapter 9 Equipment Reliability and Operator Care	p. 195
Introduction	p. 195
Finding the Cause: Separating the Processes from the Equipment	p. 195
The Role of Equipment Reliability in Lean Practice	p. 196
Operator Care	p. 197
The Fundamentals of Operator Care	p. 199
Phase I: Basic Care	p. 199
Keep the Equipment Clean	p. 201
Keep the Equipment Cool	p. 216
Keep the Equipment Lubricated	p. 220
Phase II: Advanced Techniques	p. 221
Define Your Goals	p. 221
Change the Oil and the Filters	p. 222
Pay Attention	p. 223
Autonomous Maintenance as an Element in Improvement	p. 225
Autonomous Actions	p. 229
Chapter 10 Lean Leadership and Ethics: Creating an Engaged Workforce	p. 235
Introduction	p. 235
Improvement Experiences at the Frontline	p. 237
The Structure of Employee Engagement	p. 238
The Elements of Engagement	p. 238
Clear Goals	p. 239
Skills Necessary to Achieve the Goals	p. 240
Time to Make Improvements	p. 243
Access to the Resources That Cause Change	p. 244
Framework for Action	p. 246
Engage Frontline Teams	p. 247
What to Do When Teams Do Not Engage	p. 248
Refresh the Understanding of Small Event Improvement	p. 249
The Subjective Elements of Engagement	p. 250
Lack of Trust in Management	p. 251
Disruption by Team Members	p. 253
Intentional Disruption	p. 254
Unintentional Disruption	p. 256
Industrial Culture	p. 257
Notes	p. 258
Chapter 11 People Development	p. 259
Introduction	p. 259
Impact of Competent People on Organizational Performance	p. 260
Competence Defined	p. 261
Basic Competence	p. 262
Basic Competence Development	p. 264
Superior Performance	p. 264
Critical Positions	p. 266
Finding the Right Management Tool	p. 267
A Quick Description of Our Analysis	p. 267
The Influence of Critical Positions on Improvement	p. 267
Individual Contributors	p. 268
Subject Matter Experts or Mentors	p. 269
Leaders	p. 271
Identifying Critical Roles in Your Organization	p. 271
Common Misconceptions	p. 272
Developing Highly Competent People	p. 274
Beginning the Process	p. 275
Prompt Improvement	p. 277
Sustaining the Improvement	p. 278
Chapter 12 Leadership: Initiating and Sustaining Lean Operations	p. 281
Introduction	p. 281
Transforming an Organization and Sustaining the Change	p. 281
Sustaining Improvement	p. 284
Process Documentation	p. 285
The Role of Transformational Leadership	p. 286
Sustaining Leadership	p. 289
When the Leader Is Not the CEO	p. 290
Getting Started	p. 292
The Value of 6-Month Intervals	p. 292
Three Attributes of a Successful Beginning	p. 293
The Value of Shared Vision	p. 294
The Value of Immediate Pilot Projects	p. 294
The Value of New Tools	p. 298
Notes	p. 307
Index	p. 309
About the Author	p. 325

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