Introduction
We have emphasized that lean transformation is a political process,
one that requires committed, informed leadership. A great example
of this was a case David Ostreicher experienced as a student intern
working for Acme Systems—one of the world’s largest and most
diversified suppliers of automotive components. David was assigned
to work with a retired Toyota engineering manager who was a leading
expert on TPS applied to machining. Employed, at high daily rates, as
a lean expert based on his 30 years at Toyota in production engineering,
Yoshina was particularly familiar with plant launches of machining
technologies. He had extensive experience with equipment installation
throughout Asia during his career with Toyota, but this was his first
attempt to apply Toyota methods in the United States. David was
excited to further his TPS education by learning from Yoshina, and
excited about the company. Acme was committed from the CEO
level on down to building a lean enterprise, and had nearly a decade
of experience. Yoshina was hired to launch several new product lines
in what was to be a showcase for TPS applied to machining.
Two separate machining lines that made different versions of com-
pressors were being installed in the same plant—the A1 and the X10
lines. Each had a different project engineer. As it turned out, the A1
project engineer embraced Yoshina’s advice, following it to the letter
with great results, while the other X10 project engineer tried to cut
corners for the sake of short-term cost reduction and expediency,
with poor results. Interestingly, both had the same ambitious goals
and access to the same world-class lean expert.
“First Time Quality” was defined as the percentage of manufactured
parts that passed all quality inspections the first time they were tested.
The current First Time Quality levels were stagnant at about 85 percent,
while the target called for greater than 98 percent. “Operational
Availability” referred to the percentage of time equipment was available
to produce parts when that equipment was required to produce parts.
Machining operations at Acme typically had Operational Availability
in the 60 to 70 percent range, and the team was being asked to bring
this to over 85 percent. The business returns that were targeted (min-
imum net income, operating return, and return on net assets) were
aggressive but attainable. It was obvious that there were high hopes
for this new lean showcase.
The A1 project engineer was responsible for transitioning the older A1
family from an existing plant to the newer plant with completely new
equipment. Simultaneously, the X10 project engineer was responsible
for coming up with the best X10 line concept possible to be added to
the two other X10 modules already operating in the newer plant.
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