A large proportion of production costs are determined at a very early stage during product development and process design. There is great potential for savings here, which can be realized through a structured approach based on lean methods. However, the relevant lean knowledge in companies is incomplete and largely unstructured and there are no process models available. A new optimization concept is needed to accelerate the lean transformation and pave the way for effective and efficient processes in production and logistics supply. The original Toyota Production System (TPS) is designed to be constantly developed and adapted. A new, holistic reference model based on the TPS helps companies to continue to produce competitively in a high-wage country like Germany.

A new optimization concept needs a framework that expands the TPS house so that all relevant areas of knowledge are structured and integrated. This new concept serves as a reference model that, on the one hand, helps companies to reduce the effort required to develop the necessary lean knowledge and, on the other hand, brings together and harnesses all available lean knowledge in the form of principles, models, checklists, process models and collections of methods. In this way, the lean transformation can be accelerated. Of course, the building blocks must be individually adapted to the respective company, but the "wheel" does not have to be reinvented every time.

Start in the planning phase

The greatest scope for shaping production and logistics lies in the planning phase, i.e. before the start of production (SOP). However, most of the existing knowledge in the academic world relates to the customer order fulfillment process. However, as all resources have already been procured and positioned and all processes are already running, the scope for optimization is limited and associated with considerable implementation costs. This problem is addressed by the concept of Product Life Cycle Management (PLM). Around 70 to 80 percent of product costs are determined in the development phase, but only arise during the customer order fulfillment process. PLM provides companies with a comprehensive concept for optimizing product development, although the focus is clearly on the development of the product. The planning that accompanies the product development process and the organization of resources and processes for production and logistics are only considered marginally.

More structure!

In most companies, this planning process is largely unstructured, especially when different departments are involved. Planning usually takes a very long time because neither existing process models nor systematic preparatory work can be used. The extensive separation of the areas of production, logistics, factory planning and IT systems practiced today in companies as well as in the academic world considerably hinders the design of optimal processes. None of these disciplines alone can influence all the necessary parameters. The new optimization concept, however, focuses on the planning and design of factory structures, resources and processes before SOP, as 70 to 80 percent of the subsequent process costs are also determined in the process design phase, similar to product development.

Dr. Markus Schneider is Professor of Logistics, Materials and Manufacturing Management at Landshut University of Applied Sciences and Scientific Director of the PULS (Production and Logistics Systems) Technology Centre in Dingolfing as well as founder and Managing Director of PuLL Beratung. © PuLL Consulting

In addition, holistic and interdisciplinary process planning according to lean criteria is crucial. A process runs optimally when material and information flows are interlinked and when resources and technologies are selected and positioned in a process-oriented manner. An overall system that structures the individual elements and methods of planning increases the quality of the planning results and speeds up the planning process considerably. Factory planning is an important building block here because it determines the long-term plant structures, which have a decisive influence on the cost structures of the processes. Traditional factory planning models focus more on the planning of the buildings than the process flows within the buildings. The process planning methods used run counter to the lean concept, at least in part. One example of this is the functional determination phase and the focus on investment costs and the degree of resource utilization. These structures of thought, some of which are a hundred years old, systematically lead to workshop production. REFA, the Association for Work Design, Company Organization and Corporate Development, for example, uses the "structured parts list principle" to derive a production process. This leads to assembly structures that drastically increase the complexity of the overall system, the control effort and the throughput time of the end product. This is diametrically opposed to the goal of lean production. The new optimization concept must therefore include a lean-compatible factory planning model.

Good leadership is crucial

Last but not least, the aspect of leadership should be mentioned. This topic was completely ignored during the first lean waves. However, good leadership is a decisive factor in the success or failure of a company or a major project, such as a lean transformation. A comprehensive optimization concept must therefore necessarily include a compatible leadership system.

Both research and practical experience in planning thus show a considerable need for an interdisciplinary, holistic, lean-oriented optimization concept.

Prof. Dr. Markus Schneider, Managing Director of PuLL Beratung / ag