This inevitably results in a different set of operating rules at each unit. One unit wants to run by "grade," another "thick to thin," "wide to narrow," "light to dark," etc. The easiest way to accomplish these conflicting objectives is to keep a huge pile of inventory in front of every unit so that they can put together an optimal run schedule. Note that this "optimal" schedule can, and often does, lose sight of the customer promise date. Also note that these queues extend lead times, hide defects, increase handling damage, add difficulty to the scheduling process, tie up cash and space, cause excessive expediting, etc.
We began the Lean Transition with an education session for top management. Luckily, one gutsy division VP agreed to be the guinea pig. Inventory reduction and on-time delivery goals were set, and commitment attained. Brief overview education/introduction classes were provided for all employees. Then scheduling rules were attacked, blitzes were held to resolve obstacles, internal teams were formed to propagate the process, kanban controls were initiated, etc.
Inventory reduction goals were pushed down through the organization. These were readily understood at the unit level: Kanban limits, i.e. the number of coils allowed in front of an operating unit, were to be reduced an agreed amount over a specific period of time. Another key factor in achieving World Class operating performance is to control the order book. Strict capacity loading rules were put in place to assure that we did not overload the mill.
