The Tool-First Transformation
Nordic Fastener, a 420-person tier-2 automotive supplier, launched its Lean journey after the CEO toured a benchmark plant. In six months the company deployed 5S in all departments, put in two-bin kanban for 1,800 SKUs, and installed andon cords on three assembly lines. Results are poor: on-time delivery fell from 94% to 88%, assembly WIP rose 22%, and the andon cords are pulled fewer than twice per shift, usually only for material shortages. Supervisors say 5S audits are a monthly photo exercise, and kanban cards are often lost or hoarded. The CEO wants a fourth wave: daily hoshin boards and a lean steering committee. The operations manager argues they should stop and fix basics first. You are brought in as an external lean coach. The plant has 11% absenteeism, changeover times averaging 48 minutes on the constraint press, and no documented standard work outside final inspection.
1. Diagnose why Nordic Fastener's tool-first rollout is producing weak results. Use TPS logic and the evidence in the case; avoid listing tools.
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Reasoning. TPS is a system, not a toolbox. JIT and jidoka depend on stability: standard work, leveled demand, reliable equipment, disciplined material replenishment, and a management response to abnormality. Nordic has installed the visible artefacts without those prerequisites.
- 5S without standard work or a daily audit routine has become housekeeping theatre; supervisors see it as a photo exercise, so it does not change how work is done.
- Kanban for 1,800 SKUs assumes reasonably stable consumption and disciplined card return. Cards are lost or hoarded, which means the signal is not trusted; planners and supervisors likely work around it, so WIP rises and shortages persist.
- Andon is pulled mainly for material shortages, not quality or process problems. That suggests operators do not believe pulling will produce a fast, constructive response. The system is being used as an alarm, not as jidoka.
- No standard work outside final inspection means the process has no defined baseline for improvement or training. Absenteeism at 11% and 48-minute changeovers on the constraint press further undermine flow.
The primary problem is sequence and management system, not tool selection.
2. Propose a 90-day sequence with no more than three priorities and state what you would explicitly defer. Justify the sequencing.
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Proposed sequence.
- Stabilize the constraint press. Run a focused SMED and basic TPM effort: observe changeovers, separate internal and external work, target under 20 minutes, and establish operator-owned daily checks. The constraint sets the pace; a 48-minute changeover encourages batch sizes that create WIP and delay.
- Establish standard work and leader standard work in assembly. Define the current best method, takt and cycle time, in-process checks, and a team-leader response routine. Without this, kanban and andon have no stable process to protect.
- Pilot disciplined pull on A-class items only. Choose high-runner parts with predictable usage, size a small supermarket with explicit card rules, and audit daily. Do not attempt two-bin kanban across all 1,800 SKUs.
Defer. Defer daily hoshin boards, a new lean steering committee, and plant-wide 5S expansion. Those add governance and visibility before the basics are reliable. Also defer andon expansion until a response protocol exists. A 90-day scorecard should track OTD, assembly WIP, press changeover time, and andon response time, not tool-count metrics.
3. The CEO is impatient and says 'we cannot slow down; our competitors are doing lean.' How do you frame the trade-off and what evidence would you show?
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Framing. Lean is not slower improvement; it is sequenced capability-building. Installing more tools while delivery is falling from 94% to 88% and WIP is rising 22% will amplify instability. The choice is not 'lean or speed'; it is 'build a stable system now or keep firefighting'.
Evidence. Show the CEO three linked facts: (1) the constraint press has 48-minute changeovers, which drives batch sizes and WIP; (2) assembly has no standard work, so kanban cards and andon calls cannot produce a reliable response; (3) andon is pulled fewer than twice per shift, which means problems are being hidden or worked around. Add the cost of poor delivery: expediting, overtime, and lost customer confidence. Then propose a visible 30-60-90 day pilot with a weekly gemba review, so impatience is channeled into observation rather than more tools.
Ask of the CEO. Sponsor gemba walks, stop rewarding 5S photo audits, and agree that no new tool is deployed until its prerequisite is stable. That protects credibility and respects the workforce.