Lean Manufacturing and Industry 4.0 - Conversation with an Expert

Written by
Berenice Mengo
Online Marketing Specialist
VKS - Visual Knowledge Share Ltd
With
Simon Spencer, B. Eng.
Process / Solution Architect
VKS - Visual Knowledge Share Ltd
LEAN MANUFACTURING
& INDUSTRY 4.0
Conversation with an Expert
V I S U A L K N O W L E D G E S H A R E
DIGITAL WORK INSTRUCTIONS FOR SMART FACTORIES

Simon Spencer is an engineer at VKS - Visual Knowledge
Share Ltd., a software company that offers a digital SOP
solution to manufacturers worldwide. Before being a
Process and Solution Architect for VKS, Simon started
his career two decades ago in the UK at Toyota, the very
company that originally created the Lean Manufacturing
philosophy, which has since impacted the business world
to this very day. Moreover, he was there at the very
beginning of Industry 4.0. We thought he could give us a
few insights on how it all started.

A few definitions
Before digging into Simon’s experience in Lean
Manufacturing and Industry 4.0, let’s refresh by
defining the following concepts.
Lean Manufacturing
Industry 4.0
Kaizen
Yokoten

A few definitions
Lean Manufacturing
Management methodology inspired by the Toyota Production System (TPS) which
focuses on minimizing the resources used to produce large quantities of goods or
services of good quality and at a lower cost. Toyota’s engineers Taiichi Ohno,
Shigeo Shingo, and Eiji Toyoda developed the TPS from 1948 to 1975.
This Lean Manufacturing philosophy has 3 pillars which are the types of wastes to
eliminate as a lean factory. These principles are the Japanese words Muda
(uselessness), Muri (overburden), and Mura (unevenness). The Lean approach has
expanded from the manufacturing industry to many other business categories. It
has now become the most advanced way to run efficient companies.

A few definitions
Industry 4.0
Born from a German governmental project, the term Industry 4.0 is,
according to Forbes, introducing “what has been called the “smart factory,” in
which cyber-physical systems monitor the physical processes of the factory
and make decentralized decisions. The physical systems become Internet of
Things, communicating and cooperating both with each other and with
humans in real time via the wireless web.”

A few definitions
Technical assistance
This principle is made of 2 parts:
1. Assistance systems are able to support humans by regrouping and displaying
information understandably to help them make informed decisions and find a
solution to critical issues in a small amount of time.
2. Cyber physical systems are capable of physically support humans by
operating various tasks that are unenjoyable, overtiring, or dangerous for their
human teammates.

A few definitions
Decentralized decisions
Cyber physical systems are able to take
their own decisions. They can also execute
their tasks as independently as possible. In
case of exceptions, meddling, or
contradictory objectives, the identified
tasks are managed by a higher resource.

A few definitions
As Toyota has inspired the world with the Lean Manufacturing concept,
some Japanese words are used worldwide to describe key concepts of that
philosophy.
Kaizen
Kaizen is a Japanese word that
means “change for better”. The
term is used to name continuous
improvement.
Yokoten
This expression can be translated
into “best practices sharing”.

“Lean vs Misunderstood Lean”
According to Simon, our expert in Lean Manufacturing
and Industry 4.0, there is Lean and there is
Misunderstood Lean.
Lean Manufacturing to him is about minimizing
resources for quality results. In order to achieve that,
you’ll have to eliminate inefficient processes. It is also
about having a system that runs, rain, snow, or shine.
Random issues can stop the workflow, but equipping
your factory with tools such as andons can help keep
your process flowing smoothly without costly
interruptions.

“Lean vs Misunderstood Lean”
Misunderstood Lean
Many companies today are not lean. According to Simon, a few companies
outside Toyota actually practice proper lean. They are either under lean or beyond
lean. Being under lean means the company hasn’t reached the Lean
Manufacturing’s standards of optimum production. Being beyond lean is when the
system can’t handle a single issue without stopping the whole workflow. Little
problems don’t have to stop your production, except unpredictable force majeure
such as natural disasters. These remain exceptions. Your process needs to flow
99,99 % of the time.

“Don’t starve your
production line”
Your production line needs to be
nourished constantly. Feed it with
the resources it needs to stay in top
shape. Overfeeding it will make it
slow, and underfeeding it will make
it slow as well. Find the right
balance to keep your
production line healthy.
RESOURCES
RESOURCES

“Lean is continuous improvement”
Continuous improvement is a method where
companies work to continuously increase the
quality of their processes, products, and services.
Lean Manufacturing is just that. Never static,
always evolving for the better.
Every company makes mistakes! These are
excellent opportunities to acknowledge what went
wrong and to better equip the company so that the
same mistakes do not happen again.

“Risk analysis: set aside a small amount
of stock”
In theory, inventory is a waste. It is when you have to manage
unsold stock for a fair amount of time. Even if it is virtually
impossible to completely eliminate inventory, one can use a
small amount of stock to cover undesired issues. Setting aside
a tiny portion of the overall production can actually be
beneficial when unwanted problems occur. For example, risk
analysis for winter can advise to anticipate delivery issues
during snow storms, and split goods delivery before and after
an expected blizzard. This requires a small amount of inventory
and can save your customer’s day - as well as yours.

“Risk analysis: set aside a small amount of stock”
Inventory and in-process stock
You can create buffers in your process with 'in-process stock' so your production
line can continue to run when minor issues occur.
On the other hand, too much in-process stock can also hide problems which
means no one will take the time to fix them as they are not visible yet. That could
lead to bigger issues. It’s important to find the right balance with in-process
stock.

“Risk assessment -
Works for any company”
Risk assessment (or risk analysis) is a major part
of production planning. It helps predict risks and
the way to deal with them. There is more gain to
invest time in preparing a realistic and fully
comprehensive risk analysis than a quick scan that
might be useless when the real issues happen.
Being proactive rather than reactive includes being
prepared with a practical risk assessment. Any
company in any industry can benefit from risk
assessment.

“Industry 4.0 is not that new.
Companies are slow to pick up.”
Toyota has been practicing Industry 4.0 for quite some
time before it became a global trend. Since he started
his career at Toyota 2 decades ago, Simon recalls
seeing digital boards replacing white boards back in
the nineties. The leading car manufacturer was
already innovating with the latest technology available
at that time. The reason why Toyota originated the
Lean Manufacturing philosophy is because the
company has experienced ups and downs during its
80 years of history.
INDUSTRY
4.0

“IoT gives you the right
information at the right
time.”
When we hear Internet of Things (IoT), it
sounds a little futuristic, and somehow
frightening. We are actually living in an
era where our cellphone warns us about
traffic by the time we finish work, or can
even talk to us through a computerized
personal assistant. Technology is here to
make life easier, and IoT is a main part of
that evolution.

“IoT gives you the right
information at the right time.”
Connecting your factory to IoT helps get
real-time data for rapid, if not instant decision
making. Industry 4.0 is all about
communicating and sharing information
faster than ever. Live decisions, live actions.
It takes instant communication to be
competitive nowadays.

“Yokoten: best practices
sharing”
The A3 report has again been inspired by
Toyota. As a problem solving process, that
report has been used by the automotive
manufacturer for more than 20 years. Instead
of using paper, lean manufacturers use
technology to send those insightful reports
instantly around the world. This is Yokoten
made faster, sharing your best practices in all
your facilities wherever they are on the planet.

One final note...
To conclude, Simon tells us that every
company needs to adapt to change or
disappear. It is important for companies to
find the best practices for their activities and
improve. Continuous improvement and
knowledge sharing is the best way to
succeed in any business today.

Learn more about VKS, Lean
Manufacturing’s best tool!
Try one of these easy steps:
Book online: vksapp.com/services
Call us: 1-855-201-4656
Email us: info@vksapp.com
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FREE DEMO
TODAY!

Sources
- Simon Spencer, B. Eng. - VKS, Visual Knowledge Share Ltd.
- Wikipedia
- Le grand dictionnaire terminologique
- Forbes
- The Globe and Mail
- Kaizen Institute India
- Strategos

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Lean Manufacturing and Industry 4.0 - Conversation with an Expert

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