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What it means to be a Setpoint Strategic Partner

Thursday, August 12th, 2010 by Setpoint

By John Lennox-Gentle – L-GA

For many years we at Lennox-Gentle Automation in Golden, Colorado, have held a special relationship with Setpoint Systems of Ogden, Utah, we are a proud Setpoint Systems Strategic Partner.

In our Strategic Partner role we assist Setpoint during their “capacity shortage” periods by providing the Lennox-Gentle Automation teams engineering and manufacturing expertise at special “trade” rates.  This synergistic relationship has certainly profited Lennox-Gentle Automation, and we hope it has also profited Setpoint.

From our first meeting with Setpoint, many years ago we have been impressed with the Setpoint Systems philosophy.  This philosophy sprang from a vision laid out by the Setpoint founding partners.  It is a simple yet profoundly effective outlook.  They just maintain an “open and honest” relationship with their employees, associates, vendors and most important, their customers.   I hail from the “old school” of management which taught us “tell your people (staff and customers) nothing but good news or you will loose them” so the first “open” step I took was more of a “leap of faith” for me.   I threw all cares aside and engaged the Lennox-Gentle Automation team in the Setpoint “open” policy.

My first cautious step was made easier by my main contact with Setpoint, my “Project Manager”, my “Mentor”, and now my dear friend, Roger Thomas.  Roger, with his avuncular attitude, genial manner and inherent wit, places his personal stamp on the relationships he develops with his people, his vendors and his customers.  Rogers’ honesty is contagious, and each member of his team has the same “tell me the full scoop, no filters, no holding back” attitude.  Roger is the epitome of “open”.  Not just by his “open” policy, but also by his “full frontal”, “show it how it is”, “open toga” policy of true, honest project reporting, “pimples, warts and all”.

Working with Roger, Clark, Bob, Ken, John, Scott, Steve, Joe and the rest of the Setpoint team is a joy for us.  Each of their attitudes naturally promotes the entire team to get involved, and this combined energy is focused on the fight with the delinquent project issues, rather than in, the other company, who lull each other into a false sense of accomplishment or security.

I know that Roger and the Setpoint team has our six, they have proved it time and again, and I am sure they know that we have theirs.  We hold no project “secrets”, we share all the project problems, as well as the project progress with the entire Project Team.  (The “Project Team” being the L-GA and Setpoint project staff, company staff, vendors and most important, project customers).

I have now modeled my company on the Setpoint, “open” policy.  I recently remodeled my engineering offices by knocking down all the office physical and psychological walls and was pleasantly surprised how this has positively affected the Lennox-Gentle Automation team morale.

The team members can hear each of the other members’ project interaction with vendors, other team players and customers.  Now there is no need for any “pat each other on the back” meetings, and the progress and “status” meetings have shortened from hours to minutes because of this “open office” and “open policy”.  Team communication is almost subliminal.  We inherently know each others problems so we can be immediately ready to assist with their resolution.

Being a Setpoint Strategic partner means much more to us than sharing a mountain range, albeit when visiting us the Setpoint team retains an odd sense of “direction” as their mountains are in the East.  It is sharing the project responsibilities, sharing the project pains and project glories with a trusted companion who is as eager as you are in bringing it to a successful conclusion.

An Industry Stuck in the Past

Thursday, July 29th, 2010 by Clark

Over the past two years I’ve had the opportunity to visit an industry that has some of the largest manufacturing facilities in the United States. There were five distinct things about each one of the facilities that I noticed the second I walked out onto the manufacturing floor:

  1. The equipment was very old, typically 1940’s vintage
  2. The equipment was very dirty and well worn
  3. The air smelled of machine lubrication
  4. The sound level in each facility was very loud and the floor shook as the machines processed their components
  5. There were massive amounts of inventory everywhere representing the many different stages of the process

With my background in manufacturing and lean automated equipment, I was overwhelmed at the opportunity for improvement and waste elimination associated with this industry.

In many of the facilities, I noticed lots of manual labor sorting components.  After asking why, the pat answer was, “This is how we ensure a quality part makes it to our customers.”  My immediate thought was, “ARE YOU SERIOUS?”  After probing a bit I found that there were very few, if any, in-process inspections to ensure quality product was coming off the end of the manufacturing line.

The level of NCM (Non Compliant Material) throughout the plants was out of control.  I found bins of parts with NCM tags as old as 2 years in one facility.  Again, “ARE YOU SERIOUS?” popped into my mind.

I’ve spent much of my past 20 years in the Aerospace, Automotive and Medical device industries.  In each of these industries, modern equipment and processes as well as lean manufacturing techniques were employed to ensure the products being produced were of the most high quality and reliability.

So what has kept this industry from stepping up and joining the ranks of world class manufacturers and what can be done to break this cycle of inefficient manufacturing?  I don’t know but am confident that someday, some company will break the mold and embrace lean thinking.  When that happens all the other companies in this industry will have no choice but to follow or be left behind.

Continually Implementing the 5 S System

Thursday, June 3rd, 2010 by ksmith

After working for Setpoint for almost 4 years now I have come to expect the continual 5 S clean up around the office and the shop floor.  This year I was tasked with cleaning up our internal Company Intranet site and no sooner had I started that when I was tasked with going through the 5 S’s of sort, straighten, shine, standardize and sustain of our website.  After we found so much unneeded stuff on our Intranet we wanted to make sure our website wasn’t filled with a bunch of old or outdated information.

Sorting though and looking at what you have on a website seems to take a while because not only are you cataloging what is there, you’re making decisions on its importance.  Working at a custom automation company there have been many projects that we have done over the years, and from a marketing standpoint I wanted to emphasize all the capabilities that we possess.  However, from a company standpoint I had to consider which capability was a critical core competence that we wanted our potential customers to understand vs. a capability that is more of a commodity that most automation companies possess.

Straightening up the site required that I carefully go though the website and make sure everything had a consistent look, feel, and were in the same places.  For instance the lead generation form was important.  I know that I don’t like it when I go to websites and struggle to find the lead generation form or even to find my way back to where I came from so in straightening the information I have tried to make sure everything is set up the same.  I also felt that it makes it easier to go to various web pages if there is some similarity in where to go to find certain things.  For instance, under the about section there better be information about the company like their history, management, and press releases.  That’s what I have come to expect on other sites so I made sure it was the same for mine.

Shine is a little different on a website since you don’t have floors to sweep and polish, but it is no less important.  In shining the site I looked at the feeling or look of each page.  Does it have a clean look to it?  Is it really crowded or is it empty?  Shining for the website became the overall look and feel.  It’s hard to find your way around a site that is crowded and has a lot of extra stuff shoved into every corner.

Standardize came easily after sorting and straightening.  Once the importance of items had been established, the standardization of placing the content onto the website in a consistent way leads to a standard look and feel on each page.  Because each item had been sorted and straightened and the website “shined” the standardization fell easily into place.

Now comes the time of sustaining the changes made as well as sustaining the standardized process of placing new items onto the website.  It would be all too easy to just say whew we made it through that, but that’s not what the Toyota Production System (TPS) is all about.  TPS is all about continual change, making changes all the time to add value, continue to learn, grow and get better at what you’re doing.  That’s why continually running through the 5 S’s of sort, straighten, shine, standardize & sustain is so important.  Each time you go through the steps there will be new items to look at and work on.

5 S Lean Intranet Cleanup

Thursday, April 15th, 2010 by ksmith

As a follow up to our 5 S Lean of the Intranet following the Toyota Production System’s lean philosophy, I finished cleaning up and redesigning our Intranet here at Setpoint.  We replaced the old Intranet with the new design a few weeks ago and so far it’s running smoothly.  After sorting through the more than 500 items we ended up with only 75 that we actually needed to keep.  Of those 30 are sales training audio files.  We found that in all there were 10 documents that were used the most and decided that we wanted to group them all together.

Figuring out the right headings took a few iterations.  For those 10 documents we started with Commonly Used but then when testing it no one thought it was a link to the documents they wanted, they thought it was some type of header above the other categories.  So I changed it to Frequently Used and still it was seen as a header when I presented it to everyone.  During that meeting they said why don’t you call it Stuff You Actually Care About, so we did.  Now all documents are only 2 clicks away, a far cry from the previous version.

Now comes the sustaining.  Every time we add a document we are going to verify if we really need it on the Intranet or if another location is the right place for it.

Discovering and Resolving Problems

Thursday, April 1st, 2010 by Setpoint

In any organization that intends to exist for an extended time period, learning is critical. Not repeating mistake allows a business increased profitability. Someone once said (I can’t remember who) something like - “the school of hard knocks is a hard school to go through, but only fools return”.

Over the years Setpoint has been, is, and will continue to be an engineering centric business. Most of the projects we build have never been built before; most are completely clean sheet designs, meaning that no one is quite sure what this machine will end up looking like. This means that there will be multiple iterations as we develop the machine. It is critical to our success that we discover our mistakes as soon as possible to reduce our costs. The table below illustrates how critical it is to discover the problems as soon as possible.

When Mistake is Discovered and Fixed

Relative Cost to Fix

Designing at the white board $1.00
Designing in CAD system $10.00
During build of machine $100.00
During debug phase $1,000.00
After installing at customer site $10,000.00

Over time we have developed some unwritten rules that we use to help us down the development path. For this blog we sat down and wrote down the ones that matter to Setpoint.  These are in no particular order:

  • Right to left thinking - What are we really trying to solve here?  What must be solved, what would be nice to solve, what doesn’t matter if it is solved? What happens if we just leave it alone?  Is it really a problem?

  • Stop to think and drive towards root cause or what really needs to be solved, it is too easy to get caught up in ‘noise’.  Always ask the five whys

  • Evaluate and Prioritize: does this need to be resolved this instant, don’t get caught up in minor issues and miss a fundamental problem - (forest for the trees). Most problems don’t have to be solved this instant – a little time and thought usually pays big dividends

  • Take a system view of problem, don’t resolve one problem and create 3 others because you isolated the problem and disconnected it from how it has to interact with the rest the system

  • Don’t get designed into a corner, you may need Plan B – in fact it usually helps to have more than one legitimate idea as you move forward. This helps avoid sticking with a solution too long that should be discarded.

  • You can’t ‘will it to work’. And ”it might work” generally means it won’t work

  • Document all important work in a simple manner…your memory’s not that great and often results in faulty assumptions that somehow get turned into facts. Always pull the data to see what is really going on. Many so called facts are generally assumptions…if in doubt, treat it as an assumption and react accordingly

  • Turn the problem objective into a math problem if possible. Typically the guy with the equation wins.  It is easy to argue about subjective ideas like – that’ll never last, that’s not strong enough, or that’ll never make cycle time. Facts should rule in those kinds of discussions

  • When debugging, only change one thing at a time if possible…seems slow but it’s much faster long term. That way you know what worked and what didn’t.

  • When debugging, document a known ‘baseline’ that can be returned to when you’ve tried 4 things & you can’t get anything to work anymore, if in doubt go back to the baseline.

  • Sometimes the best way to improve the Design Factor of a system is not by increasing the capability of the system but reducing the requirement…sounds obvious but it’s not.

  • When working on timing issues never forget parallel operations are your friend…once again, not always obvious

  • Watch for unaccounted moment loading in a design.  Forces are rarely overlooked; however, moments are commonly ignored

  • Is the process defined?  Because a process has been duplicated twice in a lab doesn’t mean it can be automated

  • What’s the simplest thing that could work?

  • Given enough time and money you can solve anything, is regularly heard on the engineering and assembly floors, and it is the enemy of profitability.

  • If you had to contribute your paycheck towards it would you still solve it that way?

  • And finally - What would Steve do?

Our Annual 5 S Lean Cleanup

Thursday, February 18th, 2010 by ksmith

Each year at Setpoint as we begin the New Year we go through the 5 S process in our office.  We sort through everything at our desks, the shop, closets, and in the office in general to clear out those things that we no longer need or use.  Then we straighten everything up and rearrange stuff to clean things out and make it easier to find items that we use. 

This year as I was preparing to lead the 5 S cleanup the decision was made to cleanup our Intranet instead.  We got rid of so much over the last few years and hadn’t really accumulated much since our last cleanup.  However, our Intranet is about 5 or 6 years old and instead of cleaning old files off as they were no longer needed and keeping the architecture up to date as we went along, new links and pages were added instead.

If you ask the CEO to find a document on the Intranet he won’t be able to.  He tells me all the time that it’s confusing and that it takes too many clicks to find anything.  How in the world do you start sorting through the Intranet?  I started by making a list of every page and document that we had on there.  We have over 500 items on our Intranet, I had no idea.  Some of those items were duplicates where the same document was added into two different sections.  At least I knew what I needed to sort through.  It just goes to show that when you don’t pay attention to something, it can get totally out of hand as everyone keeps adding things that are not necessary.

The next thing I did was to ask everyone what documents they actually use from our Intranet.  For the most part, there were four documents that most people use.  The rest are either once in a while or they are not used at all.  That was an eye opener, why do we have so many documents available if no one ever even looks at them. 

Now it is time to straighten everything up.  Those items that are used will need to be grouped with like items so that within three clicks you can find any document on our Intranet.  I also need to come up with better category names so that by looking at it you will know what is included, rather than generic terms like “Forms”.

So I’m off to get these items straightened up.  Hopefully the next stage in this process will be easy.

Implementing Lean Manufacturing

Thursday, January 21st, 2010 by Clark

How far can you take lean manufacturing practices before you cross the line of what makes sense economically versus doing what a pure lean implementation tells you that you should be doing?

We have all heard the statement, “You were too close to the forest to see the trees.”  I think at times, in our eagerness to adopt lean manufacturing principles and practices we find ourselves “Too close to lean that we sometimes can’t see what makes sense.”

To illustrate this situation let me tell you about a company that was faced with a similar situation.

The company was a major player in the medical products/device manufacturing industry.  They had adopted a lean philosophy plant wide and had been following lean practices for about 5 years.  They had seen fantastic results as they broke down traditional methods and practices and followed the lean manufacturing principles to a “tee”.

They had done a superb job of connecting their processes in their various value streams and had managers of each area that believed in lean but were having a difficult time understanding how to decide what was right for their next efforts along the path of continuous improvement and lean implementation.

They were trying to achieve a single part flow into a low volume, high variety type of job shop assembly area.  They had established supermarkets for each the components that were required by each value stream.  In their hopes to fully connect the component manufacturing with the component demand in the value stream cells they were contemplating bringing some fabrication equipment into several of the value stream cells to reduce supermarket inventories of certain critical parts and to perhaps better connect the process.

The fabricated parts required multiple machine center resources to complete.  Many issues related to safety, cleanliness and process flow also needed to be considered.  The existing fabrication center was set up in a “U” shaped cell and actually ran very well.   Additionally, the existing fabrication cell supplied component and services to several other value streams within the plant.  After much contemplation and study, the group agreed that bringing the fabrication cell into the assembly areas would be a big mistake.

What came out of this study is that you can actually find better ways of fully connecting the processes in the overall manufacturing operations without actually having to physically locate all associated production tasks in the same cell.  With a little work and thought, the supermarket inventory levels were dropped, the communication of TAKT time demands were better established across the lines of fabrication and assembly, and the customer began to realize immediate benefits of better connecting their processes.

5 S Process in an Assembly Shop

Thursday, December 10th, 2009 by ksmith

Recently we talked about the 5 S process developed from the Toyota Production System.  Some believe that the 5 S process can only be implemented in a manufacturing environment and do not see the benefits of using this process to improve their work environment.  Here at Setpoint we have our design engineers in an office environment and our assembly technicians in a shop environment with both areas using the 5 S process. 

We made a video and put it out on YouTube to walk through our shop and show how the 5 S Process can be implemented in an assembly environment where we build one machine and ship it, then build a completely different machine.

Sustain - the Fifth “S” of the 5 S System

Thursday, November 12th, 2009 by Ken

After the first four S’s from the Toyota Production Systems improvement process have been implemented, the most important work begins.  If you have gone to all the work of setting up the system you must sustain or even improve on it to keep the system working properly.  Things change and you need to be flexible.  If something is not working the way you would like change it and keep changing it until you are satisfied. 

For instance, you should be able to tell at a glance if all the tools are in they place or if your hardware is running low, you may have to walk around and check some key spots each night to make sure the system is being used properly.

We are all very quick to form habits and by repeating these steps over and over it will be no time at all and your employees will be telling you when parts are low or things are not where they belong.

The 5 S System may seem like a lot of work at first and it is, but the benefits far out weigh your initial investment.

Standardize- The Fourth “S” of the 5 S System

Thursday, November 5th, 2009 by Malorie

Now that the first three 5S’s (Sort, Straighten, and Shine) have been implemented, the next step is to concentrate on standardizing best practices in your work environment, also known as the Japanese term Seiketsu. This involves creating a consistent approach for carrying out tasks and procedures amongst all employees and departments. Orderliness is the core of standardization.

If the first three steps have been followed correctly then standardization should fall right into place with the help of all involved.  Standardization receives the most success when everyone knows their role and rules of their area and therefore can be involved in the development of these standardized rules because they are valuable for the information they deal with on a day to day basis. In the end, everyone should know exactly what their job responsibilities are and they should know exactly how to perform as well.

This process works very well at Setpoint because we work in a very fast paced and schedule driven environment where we usually can’t afford to lose a day when someone has an unforeseen absence. Therefore by following the 5 S system there is usually someone able to step in and pick up right where the last person left off without having to ask a thousand questions and wasting time looking for parts or tools.