The Hockey Stick Problem

The Hockey Stick Problem:

How Management Pressure Messes Up Lean Manufacturing!

Many manufacturers want to meet customer needs and deliver on time. So, they try using lean principles. But there's a common trap: the hockey stick effect. This happens when management pushes to hit production goals. At the end of each month, production suddenly spikes. This rush throws off all the good stuff from lean practices. It leads to waste, tired workers, and problems meeting customer needs over time.

What is the Hockey Stick Effect?

You can see the hockey stick pattern in production charts. For most of the month, the output line is flat or slowly rising. Then, right at the end, it shoots up sharply. This spike happens because management insists on hitting monthly goals, no matter what. The focus is on short-term numbers, ignoring long-term improvements.

Why the Hockey Stick Hurts Lean Manufacturing

Lean manufacturing is about always getting better, cutting waste, and focusing on what matters. The hockey stick pattern goes against this in a few big ways:

Interrupts Flow:

Lean wants a smooth flow of materials and information. The hockey stick messes this up, causing delays and extra lead times. Rushing to meet monthly goals means sourcing materials quickly and doing everything last minute. This unpredictability creates problems.

Causes More Waste:

When the end of the month rolls around, employees rush to get the numbers up. Quality takes a backseat. This leads to defects, rework, and waste. Producing too much becomes the norm, leading to extra inventory and storage issues. Plus, workers end up moving items around unnecessarily.

Harms Quality:

Rushing production leads to mistakes. Workers cut corners to meet deadlines, which hurts product quality. Instead of focusing on fixing problems, everyone is just trying to push products out the door. This drop in quality hits customer satisfaction hard.

Burns Out Employees:

The pressure to hit tough targets makes for a stressful work setting. Employees feel like they have to forget their lean training and just react to fires. This gets in the way of their motivation and sense of ownership. Flipping between slow and crazy production is exhausting.

Stops Continuous Improvement:

Lean is all about making small, steady changes. The hockey stick pattern pushes for quick wins instead of real improvement. Workers lose sight of solving root problems when they're constantly racing to meet targets.

Skews Demand Forecasting:

The hockey stick messes up real demand patterns. When production spikes at the month’s end, it creates a false sense of demand. This makes it hard to forecast correctly and manage inventory. As a result, planning future production becomes tricky, leading to more waste and stock issues.

The Management Misstep

The management team thinks that pushing for end-of-month goals will boost performance. But this idea is flawed. Sure, it might bump up numbers for a short time. In the long run, it harms sustainability and efficiency.

A Better Approach: Change the Focus

To really work well and meet what customers need, it’s time for your client to move away from short-term goals. Instead, the focus should be on long-term improvements. Here’s how:

Balance Production:

Set up a steady production schedule, which requires the implementation of an effective capacity and materials planning system. This will establish the capability to generate a consistent flow of work through all operations, all month long. It will require good forecasting skills to keep production throughout within the capacity limitations of each operation.

Cut Down Lead Time:

Find and fix bottlenecks in the process. This will speed things up. The company will then respond faster to what customers want and deliver on time.

Empower the Team:

Give employees the training and tools to use lean methods and make their processes better. Build a culture where everyone feels safe to speak up about problems.

Use Visual Tools:

Use a daily management system (DMS) with visual aids such as hour by hour boards, real-time performance metrics to monitor progress throughout the day. These tools help spot areas that need improvement.

Measure Real Performance:

Change the focus from monthly targets to key performance indicators (KPIs). These should reflect true efficiency and customer happiness. Look at lead times, on-time deliveries, and defect rates to gauge success. Also, check the reliability of the production system.

Train Managers:

Teach managers about lean principles and how to create a supportive work environment. They need to see how problems can happen with the current approach and be ready to back new changes.

By focusing on steady improvement and a consistent workflow, your company can drop the harmful spikes in production. This change will lead to better efficiency, happier customers, and a more motivated team.

Categories: : Training