Key to Lean Transformation – Plan For Every Part

Managers in several organizations are constantly looking for ways and means of not only improving efficiency of the work force, but also the ways in which production cost and other expenses can be reduced. The basic premise of lean transformation is improved efficiency and intelligent reduction of expenses. But this transformation cannot be done achieved if the managers focus only on the macro aspects of production. Rather what is required is taking consideration of each and every micro aspects of the organization through PFEP – Plan for Every Part.

PFEP is essentially an electronic spreadsheet or database, which promotes precise, accurate, and controlled inventory reduction, and at the same time serves as the foundation for the continuous improvement of a plant's material-handling system. It contains all the critical information about parts being used in the production process. Managers can use this information to manage the material-handling system, size markets and storage racks containing purchased parts, as well as design timed delivery routes etc. This way not only do they keep the delivery system in a perfect condition, but they also see to it that each resource is used to its maximum benefit and there is avoidance of wastage. Thus PFEP facilitates lean management.

A usual PFEP contains data about each part like how each part is purchased, received, packaged, stored, and delivered to its point of use. Though much of this information exists in your organization, it is stored in so many different places under the control of several managers and is mostly invisible. This is why a PFEP is of great use. What makes PFEP so important is that it needs to be maintained in a flexible manner, so that continuous change can be accommodated in it.

How is PFEP developed?

First you need to gather essential information on every part number entering the plant, such as the part's specifications, supplier, location of supplier, rate of usage, storage locations, point of use, container size, as well as other key data. Once this is done the next step is to build the purchased-parts market. For this you need to establish rules for operating the market, such as an address system, process of addressing over shipments from suppliers, methods of addressing issues like the minimum inventory levels, and procedures for loading and picking parts to maintain a first-in, first-out sequence. 

The next step is to design a delivery route. An important part of a lean material-handling system is to deliver materials from the purchased parts market to the door step of the operators. Here you need to identify delivery aisles, select the right conveyance method, determine the stops and delivery points for the route, and create correctly sized point-of-use gravity racks at delivery points. Now that delivery route has been taken care of you need to implement ‘pull signals’ like the kanban cards, to control the precise times and quantities of parts delivered to cells.

The most important aspect of lean management is to continuously improve the system.  This can be done by daily monitoring of key performance metrics like delivery, productivity and safety. One of the best ways to implement PFEP is to start with one cell/ department at a time. This is how managers can systematically transform the organization into a lean one. Implement the PFEP method and see a positive change in the quality and performance of your services.