How LEAN Is QRM - Dirk Van Goubergen (Dirk@vangoubergen - Com) 2014 Van Goubergen P&M GCV - Lille Belgium

How LEAN is QRM ?
Dirk Van Goubergen

(dirk@vangoubergen.com)
© 2014 Van Goubergen P&M gcv - Lille Belgium 1 V1.0

Who am I ?
Dirk Van Goubergen
Lean : Studying, learning, researching, coaching implementations for more than 20 years
of which 8 years as professor of Industrial Engineering @ Ghent University (B)
In Manufacturing, Office, Service, Healthcare environments

In Belgium, Europe, North/South America, Asia
HAN University Jul 1 2014 – How Lean is QRM? © 2014 Van Goubergen P&M gcv - Lille Belgium (Photo2b y Rob Gieling)
V1.0
The ‘Bibles’ of QRM
As an IE I can say:
Great Books !
Great Results !
HAN University Jul 1 2014 – How Lean is QRM? © 2014 Van Goubergen P&M gcv - Lille Belgium 3 V1.0
What is QRM?
A company wide strategy that pursues the reduction of lead time in

all aspects of a company’s operations.
4 Key components
Some Quotes on Lean in QRM Literature
While LEAN Manufacturing methods have put a lot of emphasis on
elimination of waste, certain types of waste caused by long lead times
are ignored in these approaches (p165)
Manufacturing strategy today abounds with acronyms and techniques

just as JIT, Kaizen, SMED, Lean, Six Sigma, and many others….QRM
can help support and focus these methods so that they provide more
productive results (p188)
QRM does not undermine your Lean efforts, but rather it takes your
Lean strategy to the next level with an ability to tackle more difficult
customers and market opportunities (p189)
QRM is the only comprehensive, enterprise-wide strategy

that has the single-minded focus as well as the set of
tools to help you reduce time (p189)
Lean in QRM Literature
Lean in QRM Literature
(Rajan Suri, 2010)
Welcome to
the Wild West……
We call it ‘Lean’
(N. Modig, P. Ahlstrom)
What is Lean?
Elimination
of
Waste?
What is ‘Lean’ ?
A toolbox of techniques ? A Continuous Improvement program ?
A Cost Cutting approach ? A Strategy ?
What is Lean? – Back to the Roots
End of 19th Century 1910-20 1930-40 1950-…..
Static Assembly “Time is Money” Process Layout Mixed Model Flow

Flow Kaizen Culture
Universal
Principles
(1982) (1991) (1996)

The Essence of Lean Thinking
Lean is a business strategy for organizing and improving the operational activities of
companies in order to achieve business objectives in a more effective way.
1 Correctly specify
value for the customer
5 Managing 2 Identify the value

towards stream and remove
perfection the waste
4 Let the 3 Make value

customer
pull flow
(Lean Thinking - Womack, Jones)

Lean in 4 Principles
Value (for the Customer) vs. Waste Flow in Value Streams
(Typical) Resource View Product View
OR
Kaizen Culture - Learning Organisation
Visual Management
Striving towards Perfection
Wat is normal/abnormal?
(Workplace Organisation, Work Methods, Flow, Quality,…)
Flow in Value Streams Red/Green
or should it be
White/Gray?
Lean vs. Traditional Improvement
Typical
Company VA NVA
Traditional
Process VA NVA Minor
Improvements Improvement
Lean
Enterprise Major
VA NVA Improvement
Improvements
TIME
Lean is Value Stream Driven (Flow)
Main Contribution of
(IE) Tools for implementing Lean (principles) in an automotive
environment
Enablers
“All we are doing is looking at the time line, from the moment the customer gives
us an order to the point when we collect the cash. And we are reducing the time
line by reducing the non-value adding wastes.” - Taiichi Ohno
It’s all about
Toyota Production System Time ?
Best Quality - Lowest Cost - Shortest Lead Time

Through shortening the Production Flow by Eliminating Waste
Just in Time Jidoka

“The right part “Built in Quality”
at the right time
in the right amount”
• Manual / Automatic
Line Stop
• Labor-Machine
• Continuous Flow
Efficiency
• Pull System
• Error Proofing
• Level Production
– Poka Yoke
(Heijunka) Flexible, Capable, • Visual Control
Highly Motivated
People
Standardized Work Operational Robust Products & Processes

Total Productive Maintenance Stability Supplier Involvement
Flow must be Designed into our Value Streams
Manufacturing Office/Service
1. Takt Time 1. Takt Time
2. Finished Goods Strategy 2. Reorganize the work
3. Continuous Flow 3. Continuous Flow
4. FIFO connections 4. FIFO connections
5. Pull/Supermarket 5. Schedule one point
6. Schedule one point 6. Work Flow Cycle
7. EPEI – Interval 7. Heijunka – Pitch
8. Heijunka - Pitch 8. Changing Demand
Toyota was the first one
Outside Automotive…. to systematically implement
flow principles to reduce LT.
But they are NOT in the driver

seat to develop/adapt the tools
for other sectors……
CHALLENGE
Principles
Tools
Depend on:
- Level of analysis (Plant vs Supply Chain)
LEAN ? -
-
Manufacturing vs. Office/Service
Sector specific (product/process technologies,
Value for the customer,…..)
Lean (Flow) @ Supply Chain level
Design Flow into Supply Chain (Extended) Value Streams
QRM is the only

enterprise-wide
strategy
to reduce time ?
Lean (Flow) as an Enterprise-Wide Approach
QRM is the only

enterprise-wide
strategy
to reduce time ?
QRM Lean
While LEAN Manufacturing methods have put a lot of emphasis
on elimination of waste, certain types of waste caused by long
lead times are ignored in these approaches (Suri, 2010)
QRM Lean
Cell Design Value Stream Design
FTMS
Focused Target Market Segments
‘Who are we?’

Cross functional, philosophical discussion
Product/Process FamilyDefinition
Criteria
?
QRM Lean
MCT maps Value Stream Maps
Grey space Value Stream Lead Time

vs. vs.
White space Process Time
QRM Lean
Cells/Q-ROC Value Stream Design
Permanent
OR
VS Design VS Design
principle 3 principle 4
or Temporary
EPEI Scheduling (cell/shared resource)

(VS Design Principle 7)
“Time-Slicing “
Work Flow Cycles

Office/Service VS Design principle 6
QRM Lean
Variability - System Dynamics Value Stream Design
(Branch)
Exploit Variability Takt Time
VS Design Principle 1
Buffer Capacity
(Sir John Kingman, 1961)
Smaller Batches
EPEI Scheduling
(VS Design Principle 7)
QRM Lean
POLCA EPEI Scheduling
+ FIFO connections
FIFO FIFO FIFO
EPEI EPEI
FIFO
(Suri, 2003)
EPEI
Cards indicate free capacity FIFO connections limit WIP and

Buffers are controlled control the sequence
Sequenced based on HL/MRP EPEI gives Guaranteed
Turnaround Time
Conclusions
Lean
is a universal strategy, based on principles of Flow in Value
Streams
Many tools are available to implement these principles

• Historically most of these come from Toyota (furthest in the journey)
▫ Specific for their value streams, processes, products, value for the customer
• Other industry sectors and office/service environments have started

implementing Lean with great success
▫ By using or adapting or inventing the tools that are relevant for their
situation
Conclusions
QRM
Basic principles are part of the principles of Lean
=> QRM tools are in the JIT pillar of Lean/TPS

• One clearly NEW tool is POLCA – especially suitable for low vol/high
mix environments
QRM might be the next level IN Lean (for some people),

but not the next level OF Lean
• Focus on Flow vs only on Waste
• No NEW basic principle is added by QRM
Food for Thought……
Must there really be another name?
• Is this creating confusion ? Should we not be looking for synergy?
• On the other hand: Maybe ‘QUICK RESPONSE’ sounds more
appealing/positive than LEAN….??
• Lean/QRM ? – QRL (Quick Response Lean)?
Besides POLCA (as a tool), all others elements/principles of

QRM are universal (not even sector specific)
• Why focus so much on only low volume/high mix?
Should we even be asking/looking for the need for QRM outside

manufacturing?
• No one is nowadays doubting the relevance of Lean in non-manufacturing
environments…..
Final Conclusion
QRM
brings us back/closer
to the roots/essence of
Lean
(with thanks to Jannes Slomp for summarizing the message ☺)
Who am I? http://be.linkedin.com/in/dirkvangoubergen
Dirk Van Goubergen – Email: dirk@vangoubergen.com @DVGoubergen
Education:
* MS in Mechanical Engineering (1991) – Royal Military Academy, Brussels (B)
* MS in Industrial Management (1997) – Ghent University/Vlerick Management School (B)
* PhD in Industrial Engineering (2004) – Ghent University (B)
Professional experience:
1992-2004 Lecturer in Industrial Engineering at HORITO College Turnhout (B) (Photo by Rob Gieling)
1993-.. Founder and president of VAN GOUBERGEN P&M Productivity Improvement (www.vangoubergen.com)
* +20 years of international experience in the area of productivity improvement, Industrial Engineering, Lean/Operational Excellence and set-up reduction
in different manufacturing and service industries throughout Europe, North America and Asia (a.o. Volvo, Akzo, Atlas Copco, Daikin,
Masterfoods/Mars, Danone, Philips, Coca Cola, Parker Hannifin, GKN, Lays, Belgian Railways, KBC, USG/Start People, PostNL…)
2000-2004 Research Associate at Ghent University – Dept. of Industrial Management (B)
* Graduate classes on Design of Production Systems and Operations Management
2004-2012 Professor of Industrial Engineering at Ghent University – Dept. of Industrial Management (B)
* Grad. classes on Design of Manufacturing and Service Operations, Operations Management, Method Engineering and Work Measurement.
* Guest Lecturing at Vlerick Business School (B), Antwerp Management School (B), Virginia Tech (USA) Wroclaw Polytechnic University (Poland),
Polytechnic University Sofia (Bulgaria), King Mongkut University Bangkok (Thailand), Tel Aviv University (Israel), Rijksuniversiteit Groningen (NL)
2002 Examiner for the US Senate Productivity and Quality Award for the State of Virginia (USA)
2004-2010 Program Director ‘Fellow in Industrial Engineering’ program from the Flemish Engineers Chamber VIK (B)
2005-2012 Guest Professor at the Antwerp University (B)
* Grad. Class on Cost and Performance Benchmarking
2005-2010 Program Director of the “Master in Industrial Management” program at the Ghent University (B)
2005-….. Founder and Coordinator of the Van Goubergen Lean Academy ‘Green/Black Belt in Lean’ training/certification program
* until 2011 (6th edition) organized in collaboration with Ghent University (B)
2006-.. Founder and President of the CENTER FOR PRODUCTIVITY IMPROVEMENT ROMANIA (www.productivity.ro)
2010-…Member of the Advisory Board of the Institute of Industrial Engineers – Process Division (USA)
Senior Member of the Institute of Industrial Engineers (IIE)

Van Goubergen P&M Productivity Improvement
Training/Education (15%) - Implementation (85%)
Some of our references…
www.vangoubergen.com

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How LEAN is QRM ?

Dirk Van Goubergen

© 2014 Van Goubergen P&M gcv - Lille Belgium 1 V1.0

Dirk Van Goubergen

In Manufacturing, Office, Service, Healthcare environments

A company wide strategy that pursues the reduction of lead time in

Manufacturing strategy today abounds with acronyms and techniques

QRM is the only comprehensive, enterprise-wide strategy

(Rajan Suri, 2010)

A toolbox of techniques ? A Continuous Improvement program ?

A Cost Cutting approach ? A Strategy ?

Static Assembly “Time is Money” Process Layout Mixed Model Flow

(1982) (1991) (1996)

5 Managing 2 Identify the value

4 Let the 3 Make value

(Lean Thinking - Womack, Jones)

Best Quality - Lowest Cost - Shortest Lead Time

Just in Time Jidoka

Standardized Work Operational Robust Products & Processes

But they are NOT in the driver

QRM is the only

QRM is the only

‘Who are we?’

Grey space Value Stream Lead Time

EPEI Scheduling (cell/shared resource)

Work Flow Cycles

FIFO FIFO FIFO

Cards indicate free capacity FIFO connections limit WIP and

Many tools are available to implement these principles

• Other industry sectors and office/service environments have started

=> QRM tools are in the JIT pillar of Lean/TPS

QRM might be the next level IN Lean (for some people),

Besides POLCA (as a tool), all others elements/principles of

Should we even be asking/looking for the need for QRM outside

(with thanks to Jannes Slomp for summarizing the message ☺)

Senior Member of the Institute of Industrial Engineers (IIE)

Some of our references…

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