Time studies and continuous improvement

time studies and continuous improvement

From everything I learned while studying industrial engineering, time study is what I have to use the most.  Time studies and continuous improvement have always been part of my job. Early in my career, I use time studies to establish or update time standards.    Later on, when I started to learn and practice CI, time studies were part of the data collection process.  This time, the time study was a component of the process to define the problem under analysis.  

Numerous times in my career, I found well-intended people trying to do formal time studies as part of kaizen or continuous improvement activity.  There is no need to complicate your life.  Nevertheless, it is necessary to follow some basic rules to ensure satisfactory data collection.

Time studies and time standards

Time study or work measurement is a method to establish an allowed time to perform a given task.  Frederick Taylor envisioned industrial engineers using time and motion studies to determine the best way to do the job.  Standardized work and cycle time reduction are two more of Taylor’s innovations.  

While establishing a time standard, industrial engineers would use a detailed process to observe and analyze the method and measure time.  The standard calculation includes rating the operator’s performance and applying for allowances.   This type of time study seeks to establish a standard used for manufacturing cost and wage calculations.  They need to be specific and accurate.  The focus is on the process, looking to reduce the cycle and make it more efficient.

Time studies and continuous improvement

On the other hand, when using time studies in continuous improvement, you don’t need to rate performance or use allowances.  You are not trying to create a time standard.  The purpose is to see if the changes are moving the needle in the right direction.  The focus is on the operator and how to reduce his/her pain points.  How can you make the work easier and safer?  While doing that, you will reduce the cycle time, but that is not the priority.  

Although you won’t need to calculate a standard time at this point, you need good data.  For that, there are a few steps that you need to follow.  Talk with the operator who is completing the process.  Explain why you are there and clarify that you will measure the process, not the person.  Observe the process and ask questions to understand what he or she is doing.  Also, look at the flow of materials and/or the information and learned about the pain points. Your objective is to eliminate waste.

This preliminary work will help you to get familiar with the process.  Once you are familiar with it, you can divide it into general steps for further time measurement.  You to measure how long it takes to complete a process, before and after the improvements. 

Keep it simple

Learning is always better when you keep things simple.  Concepts that are too complicated may distract you from the real purpose of the exercise.  All you want to accomplish is to get data to compare if the proposed improvements reduce the cycle.  

There are many other ways to improve a process besides cycle reduction.  Focus on finding the waste within the process.  Then look for ways to eliminate or reduce it.  Waste reduction will reduce the cycle time while making the process easier, minimize errors, eliminate waiting times, and others. There are two key things for sustainable improvements.  First, you need participation from the team doing the work.  Nobody knows the process better than them.  Second, the focus of the improvement efforts is always the customers, internal and external.

What is knowledge waste? One of the 8 Wastes of Lean.

In my previous post, I mentioned that the heart of the lean system is people’s involvement, a highly motivated team continuously seeking the best way.  I learn this idea from Pascal Dennis on his book Lean Production Simplified, which is one of my favorite lean books.  It was in the same book, where for the first time, I learned about the nine wastes of knowledge.

Value-added activities add something, change, or transform material or information into what the customer is willing to pay for, everything else is non-value-added or waste.  Although at the beginning was seven deadly wastes, now we include the waste of knowledge to have eight categories of waste.  

Knowledge waste has different names, unused or non-utilized talent, non-utilized potential or skills, and neglect of human talent.  Regardless of what name you use, this type of waste is one of the reasons why so many companies have huge turnover rates.   In traditional management, leadership dictates orders expecting people to follow them without even questioning.  Doing that is disrespectful, it is treating people like commodities, the same way machines are treated.  

There is no surprise that for Toyota, respect is one of its core values.  Self-esteem is one of Maslow’s psychological needs, the feeling of achieving things, confidence, and respect is important to have the right level of self-esteem.  As leaders, we are responsible for actively listening, understand, motivate, teach, and influence our team.  If we fail, we are stopping the flow of knowledge, ideas, and creativity.  In other words, we are failing our team and creating a waste of knowledge.

The nine types of knowledge waste are the following.

  1. Hand-off – a separation of knowledge, responsibility, action, and feedback.
  2. Useless information – false or incorrect information
  3. Discarded knowledge – acquired knowledge or information that no longer serves the original purpose
  4. Wishful thinking – making decisions without adequate information
  5. Waiting – for information, comments, authorization
  6. Misalignment – disconnects in information or time, between departments, or within departments. 
  7. Communication barriers – culture, language and organizational culture
  8. Inadequate checking – constant follow-up, check, and balances, lack of trust
  9. Wrong tool – poor communication tools, narrow information channels

Many leaders still think that to be the boss, they need to have all the information, and hold it for themselves because the information is power. There is a lot of hidden talent in our organizations, and it is our responsibility to motivate, develop, teach, communicate, and influence our team. If we are not doing this, then we are guilty of creating a waste of knowledge. 

How can you identify the 7 types of waste?

how can you identify waste?
Waste can be deceiving, learn how to identify waste in Lean

Value-added means those activities that change raw material or information into value for the customer. Any step that does not serve the purpose of providing value for the customer is non-value-added or waste. This type of activity adds cost or time but does not add value. One way to identify what areas of your business need change is by identifying waste. How can you identify waste?

Use the back-door method to identify waste

For people with continuous improvement experience, it is easier to identify waste. They will see waste jumping out in front of them. For most people, finding waste is not an easy task. If you are one of those people, use the back-door method.

Waste is everywhere, and probably things that you see now as part of the process, are waste. With the back-door approach, you look for the opposite of waste, work. Work is the value-added activity in the area. When you cannot see waste, find the work, and everything else is waste!

How to identify waste

Follow the following five points or steps while focusing on one process.

  1. Look at the three real things, the functional area, the facts, and work-in-process. Do not guess or let the emotions or company culture drive the way, use data-driven thinking. Be in the look-out for excess inventory.  
  2. Ask what the operation is about, what is the purpose of the process?
  3. Ask why the operation is necessary? Is there a better way to accomplish that purpose?
  4. Everything that is not Work is waste. Draw the process steps, and everything that does not execute the function is waste. 
  5. Ask why at least five times to find the root cause or reason for each step to exist. Ask how you can change the process. Create an improvement plan with the information gathered and execute it as soon as possible.

If you follow these steps every time, soon you will grasp the concept. It is important to understand the purpose of the area. Why the process exists and what is the value for the customer are important pieces of information for effective waste identification.

What are your business goals?

you can achieve your business goals with continuous improvement

I bet that one of your business goals is to deliver high-quality products to the customer at the lowest cost. The goal of lean or continuous improvement is to provide the customer with the highest quality, at the lowest cost, in a shorter time. It sounds to me that both goals are the same, what do you think?  

Business goals and continuous improvement

Continuous improvement achieves the goal by continuously eliminating waste. To achieve your business goals, you need to learn what it is and eliminate it. Your customers don’t have problems paying for activities that transform materials into finished goods or processed information. We call those activities value-added.  However, they are not willing to pay for the waste in your process.

The customer should not pay for the cost of fixing errors, waiting time, or excess inventory. These activities are non-value-added or waste. Therefore, the target of continuous improvement is to eliminate them.

What is waste? The seven types of waste in continuous improvement

Waste has seven categories: transportation, inventory, motion, waiting, over-production, over-processing, and defects. There is another category added later, which is the underutilization of people’s talents.

  • Transportation is an essential part of operations, but it does not add value from the customer perspective. The goal of CI is to minimize transportation to the minimum necessary.
  • Inventory of raw materials is also a necessary evil, but you do not want to have excess inventory. Excess inventory is at risk of being damaged or become obsolete.  
  • Any motion of a person’s body that is not related to adding value is a waste. Poor ergonomic designs make people move their bodies more than necessary, causing safety and productivity issues. 
  • Waiting for materials, for approvals, for a phone call, or for shared equipment to become available are all examples of waste.  
  • Over-production is when we make too much because we are producing ahead of the real demand. Over-production creates more waste in the form of inventory, motion, waiting, and others.
  • Over-processing is doing more than what the customer requires. For example, when you receive items in a box that is three times the appropriate size.
  • defect is when we make a mistake or produce defective items. Fix defective products comprise time, material, and other resources.  
  • Underutilization of people’s talents is not letting people work at their full capacity. Examples are lack of training, not trusting in their capacity to improve processes, and siloed thinking.

Achieve your business goals with continuous improvement

What are your business goals? Is one of them to deliver a high-quality product at a low cost? Are you targeting to increase your business profitability? Do you want to grow your business? If you answer yes to any of the last three questions, then continuous improvement is the business strategy you are looking for. Contact us, and we will work together to improve your business processes from the customer’s perspective.