People treat them as seven independent tools — pick one, make a chart, conduct a meeting and they move on.

The real power of the 7 QC Tools comes from using them as a problem-solving sequence / System.

Each QC tool has a purpose which addresses the different stages in the Problem Solving. Knowing how to use these QC tools will help in taking Permanent Action for your Defects.

Consider a welding line where rejection is increasing.

1. Start with facts — Check Sheet (Tool No 1)

Before asking why, first understand what is happening.

Create a simple check sheet and record every rejection during the shift — crack, porosity, undercut, misalignment and so on.

No opinions.

No assumptions.

Just facts.

Good problem solving starts with good data.

2. Find the vital few — Pareto Chart (Tool No 2)

Now arrange the defects from highest to lowest.

You may find that cracks and porosity alone account for nearly 80% of the total rejection.

Now the team knows where to focus.

Instead of trying to solve ten problems at the same time, attack the two that matter most.

3. Understand the variation — Histogram (Tool No 3)

Suppose weld penetration is also being measured.

A histogram helps you see the distribution.

Is the process centred around the target?

Is the variation too high?

Is it skewed towards one side?

This is important because a process that is consistently off-target needs a different solution from a process that is highly variable.

4. Identify possible causes — Fishbone Diagram (Tool No 4)

Now bring the people who actually run the process into the discussion.

Why are cracks occurring?

Look at Man, Machine, Method, Material, Measurement and Environment.

Perhaps the welding current is changing.

Perhaps a particular material batch is creating problems.

Perhaps the method differs between operators.

The Fishbone helps the team organise these possibilities.

But remember:

A Fishbone gives you possible causes. It does not give you the answer.

5. Test the causes — Scatter Diagram (Tool No 5)

This is where data becomes more important than opinions.

Take one suspected cause and test it.

For example, plot welding current against crack frequency.

Is there a relationship?

If higher current consistently results in more cracks, you have evidence.

If there is no relationship, eliminate that hypothesis.

The objective is not to prove that our favourite theory is correct.

The objective is to find the Real cause.

6. Locate the source — Stratification / Flow Chart (Tool No 6)

Sometimes the problem is hidden inside the averages.

Break the data down.

By machine.

By shift.

By operator.

By product.

By material batch.

You may discover that 70% of the defects are coming from one machine or one shift.

A combined number can hide the problem.

Stratification helps you see it.

A Flow Chart can also help when the problem is related to the process itself — missing checks, unnecessary steps, poor handoffs or unclear responsibilities.

7. Sustain the improvement — Control Chart (Tool No 7)

Finally, fix the cause.

But don’t stop there.

Monitor the process.

A control chart helps you see whether the process remains stable or starts drifting back towards the old condition.

Because an improvement that lasts for two weeks is not yet an improvement.

Sustained improvement is the real objective.

The 7 QC Tools are not seven random tools.

They form a way of thinking:

Collect → Prioritize → Understand → Identify → Test → Locate → Sustain.

The next time a quality problem comes to your desk, don’t immediately ask:

“Which tool should I use?”

Ask:

“Where am I in the problem-solving journey?”

The right tool usually becomes obvious.

And the best way to learn these tools is not another classroom exercise.

Take one real problem from your shop floor.

Run the complete sequence.

Share your thoughts and results with us. In case of any doubts, feel free to contact us.

2 Questions for you?

1. Can you clearly understand how to use the 7QC tools in your company?

2. Can you implement this in your company and share the results with us?

One Poll for the Week:

Share your comments in the reply and we’ll feature one subscriber in our next newsletter.

1. Using Both hands to start / Stop the machines - when a manual activity requires the use of both hands, they should move in unison. Keep Arm Movements simultaneous and symmetrical

2. Reduce / Eliminate Operator walking during work - how to create a workplace where the operator does not need to move / walk during the operation. Everything he/she needs should be in the workplace

3. Minimize Leg and Torso movements - keep the parts nearer to the usage. Operators should not turn around for picking / placing. Operators should only move their Arms, wrists and fingers. Follow Golden Zone while setting the workplace

   

4. Use Gravity instead of Muscle Power - using the muscles to perform the unloading and loading, creates tiredness..use gravity wherever possible

5. Avoid Zig Zag Motions and Sharp Turns in the layout - this may cause fatigue and may lead to accidents

6. Easy Posture and Easy Motion - No Bending over a worktable to pick a material. Do not place materials in the floor that requires bending and lifting.

7. Use the feet - Feet can be used to perform a few activities like pressing a foot-switch

8. Materials and tools in front and close to the operator - All tools and materials to be kept in the front and close to the operators. Golden Zone to be followed

9. Arrange the tools and materials in the order of use in the workplace. Check the sequence of use of the tools and materials and arrange them accordingly

10. Integrate Tool Functions to minimize tool variety - combine different nut sizes / screw sizes, so that only a few tools are required in the workplace

11. Use inexpensive types of power - can we use simple mechanical / hydraulic / pneumatic systems for the work, rather than high investment machines

12. Keep the worktables and equipments matched to the operator’s height

13. Lighting, Temperature and Ventilation to keep the employee comfortable so that the productivity is high

14. All handles and Knobs in convenient places and easy to use shape - recently I saw a trolley where the handle is made of a RTS rod. The ribs are cutting the operator who is using the trolley.

15. Ensure there is No Oil/Water spillage in the workplace - this may lead to accidents

These points will help you design a workplace that reduces Motion waste in the shopfloor.

What are the points you could identify in your workplace? Share it in the comments.

2 Questions to you:

1. What are the Motion Wastes that you could identify in the workplace?

2. List down at least 3 points that can be acted upon in the coming week and try them.

1 Poll for the week:

Thank You Victor Manuel Garcia Barco (https://substack.com/@vgarciabarco) for participating and sharing your thoughts on the previous week’s newsletter.

Thank you.

Regards,

P. Ananth

Every small factory owner wants better margins. Almost none look in the right place.

Here’s the usual story. Margins are thin. To fix this, you think you need more output. To get more output, you think you need more people or more machines.

But most MSMEs — in India, the Middle East, or Southeast Asia — are always short on cash. Customers pay late. Suppliers want payment on time, sometimes in advance. So there’s no cash left to add manpower or machines.

The owner is stuck. They want to grow. They can’t afford to grow the usual way.

Here’s what most owners miss: you don’t need more resources. You need less waste.

Every factory has waste hiding in plain sight. Nobody sees it because nobody is trained to look for it.

We recently worked with a Paper Mill. Their delivery lead time was 30 days. Not because they lacked machines or manpower. Because the material was waiting, the process was waiting, the approvals were waiting. Waste, at every step.

We didn’t add a single machine. We didn’t hire a single person. We just removed the waste — the waiting, the unnecessary movement, the batches sitting idle between steps.

Lead time today: 6 days.

Same plant. Same people. Same machines. 5x faster.

This is what Lean Manufacturing does. It’s not about working harder. It’s about removing the waste that’s quietly eating your capacity — so what you already have produces more.

When cash is tight, waste elimination is the only kind of growth you can afford. It costs attention, not capital.

What’s the one waste on your shop floor that nobody is looking at right now?

2 Questions to kindle your thoughts:

1. What are the wastes that you can identify in your company / Operations?

2. What is the financial impact of these wastes?

1 Quiz for the week:

Of course not.

You may feel motivated.

You may learn the right exercises.

You may even complete every workout for a week.

But if you stop after that, your body gradually returns to its old state.

A toned body is not created by a week of effort.

It is created by consistent habits, discipline, and regular review over months.

The same principle applies to organizational culture.

Many companies conduct Lean training, 5S workshops, or Kaizen events and expect a culture of continuous improvement to emerge immediately.

It doesn’t.

People return to their daily firefighting.

Standards begin to slip.

Improvement meetings become irregular.

Kaizen suggestions reduce.

Within a few months, the organization is back to where it started.

The problem isn’t the training.

The problem is the lack of a system to sustain the change.

We expect visible results almost immediately.

It typically takes six months or more of sustained effort before the transformation becomes obvious.

Real change happens when people practice the right habits every day, receive regular feedback, and stay accountable over time.

That’s why sustainable improvement is never an event.

It’s a Habit.

2 Quotes from Ananth:

1. Improvement begins with subtraction.

2. Flow creates Value. Stagnation destroys it.

1 Poll for the Week:

Answer the question and get featured in the Next week’s Newsletter, circulated to 5500 professionals in Mfg Sector.

1 Video for the week:

90 Day - Waste Elimination Challenge:

Most Waste Elimination initiatives start with enthusiasm but fade away within a few weeks. The challenge is rarely identifying waste—it is sustaining the improvements.

Our 90-Day Waste Elimination Program bridges this gap by combining Gamification, Habit Formation, Kaizen, and Weekly Review Meetings to ensure that improvement becomes part of the organization’s daily culture. Rather than conducting a one-time training program, we help teams implement, measure, and sustain waste elimination initiatives that deliver measurable cost savings and long-term operational excellence.

This program is conducted through Online in the form of a Game / Competition - only 20 companies participate in the program.

Target: Rs. 5 Lakhs of Cost Savings / Productivity Improvements. What’s cool? Creating habits that sustains the initiatives. Real Transformation in the shopfloor.

Ideal for Medium Size manufacturing companies who struggle to sustain Lean and Continual Improvement initiatives.

Interested? Fill the form to get more details / enrol.

Enrol Now

“How do we compare with the best in our industry?”

This is where benchmarking becomes indispensable.

Benchmarking is the systematic process of comparing an organization’s performance with industry peers and market leaders to identify performance gaps, uncover best practices, and set realistic improvement targets. It moves discussions from assumptions to facts and provides senior management with an external perspective on operational performance.

Financial performance is the outcome of operational excellence. Metrics such as productivity, inventory turns, capacity utilization, quality, supply chain efficiency, and working capital determine how effectively a business converts its resources into profits. By benchmarking these operational indicators, leadership can identify where the organization is leading, where it is falling behind, and where strategic investments will create the greatest impact.

We did a benchmarking study of Operational Efficiency for Indian FMCG Sector and here are the results:

1. Plant and Maintenance cost is 0.78% for ITC, whereas for HUL it is only 0.26%. ITC has more than 250 own factories, 12 Integrated facilities (with warehouses) + paper mills and extensive manufacturing assets, compared to 26 Asset Light factories of HUL . This may be a reason for higher maintenance cost.

2. ITC’s Gross margin is 57.66% (8% higher) than HUL’s 49.21%. Both the companies are strengthening their FMCG core, value-added adjacencies, premiumisation, digital supply chain and Portfolio sharpening (shared in the Annual Report.

3. Employee cost is almost the same.

4. Finance Cost is 0.58% for HUL, whereas ITC spends only 0.08% as Finance Cost

5. Inventory cost is high for ITC (18.82%), whereas for HUL it is only 6.56%. No specific reason we could find in the annual report, but may be ITC handles more agri, paper and other related products that needs more inventory storage / handling.

6. Power and Fuel costs is just 0.58% for HUL, whereas ITC spends 1.07%. HUL specifically mentions that their 97% of power requirement comes from renewable energy (45MW Solar Park), whereas ITC gets only 51% from renewable sources.

7. ITC has excellent digital Omnichannel Distribution, AI Powered Logistics platform, 50 Warehouses across India (near the demand centres) - resulting in 2.28% as freight and forwarding expenses. HUL spends 3.12% in freight cost.

It rarely does.

Training gives knowledge.

Knowledge alone does not change behaviour.

We have seen many companies where employees know all the Lean tools—5S, Kaizen, SMED, Poka Yoke, Problem Solving. Yet, the shopfloor continues to function the same way.

Why?

Because change requires an inner transformation.

People have to move from following instructions to taking ownership.

From reacting to problems to preventing them.

From completing today’s work to continuously improving tomorrow’s work.

This transformation cannot happen through a one-day training program or by simply implementing a few Lean tools.

It requires new habits to be formed.

Small actions, repeated consistently over weeks and months, slowly become the culture of the organization.

This is where gamification plays an important role.

When improvements are broken into simple weekly activities, progress is made visible, achievements are recognized, and teams enjoy participating. Employees don’t feel that change is being forced upon them—they become part of the journey.

Leadership also has a critical role to play.

Employees observe what leaders do, not what they say. When leaders actively participate, review progress, appreciate improvements and reinforce the right behaviours, culture starts changing from the top.

Tools provide the direction.

Habit formation creates consistency.

Gamification makes the journey engaging.

Together, they transform people. And transformed people transform the shopfloor.

Share your thoughts in the reply section.

2 Quotes by Ananth:

1. Waste thrives where questions stop

   Improvement begins with "Why?". Waste survives where no one asks it.

2. Every extra step is a silent cost.
   What feels insignificant once becomes expensive when repeated thousands of times.

Visit our Website

That’s rarely the real reason.

5S fails because people stop talking about it.

Like any organizational initiative, 5S must stay visible. Employees should see it, hear it, practice it, and celebrate it regularly.

When 5S becomes part of the company’s culture, sustaining it becomes much easier.

Here are ten practical ways to promote 5S across your organization.

1. Display 5S Posters

Well-designed 5S posters act as constant visual reminders.

Place them near entrances, workstations, cafeterias, and common areas. A simple message seen every day has a greater impact than a long presentation given once a year.

2. Create Memorable 5S Slogans

People remember short messages.

A simple slogan like “A Place for Everything, Everything in Its Place” or “Clean Today, Productive Tomorrow”reinforces the importance of workplace discipline.

The best slogans are easy to understand and easy to recall.

3. Introduce 5S Badges and Caps

Recognition creates ownership.

Providing 5S badges, caps, or T-shirts to employees involved in improvement activities builds pride and creates visibility throughout the factory.

People enjoy being part of something they can proudly represent.

4. Install 5S Information Boards

Every production area should have a dedicated 5S information board.

Encourage operators to write observations, improvement ideas, before-and-after photographs, and weekly reviews.

When employees contribute to the board, they become active participants instead of passive followers.

….

Read the Full Article Here

2 Quotes from Ananth:

1. If work is waiting, value is leaking.
   Products create value only when they are moving through the process.
   Every minute spent waiting increases lead time without adding value.

2. Stop guessing. Start observing.
   Assumptions often lead to the wrong solutions and repeated problems.
   Direct observation reveals the reality of the process and the true source of waste.

They are short of time, structure, and guidance.

As companies grow, daily operations become more demanding.

Production targets need to be met.

Customer deliveries need to be managed.

Quality issues need immediate attention.

Machines break down.

Material shortages occur.

And before anyone realizes it, the entire organization is trapped in a cycle of firefighting.

The biggest casualty?

Continuous Improvement.

In many companies, shopfloor executives and supervisors genuinely want to improve processes. But they often lack a structured approach, clear priorities, and guidance on where to begin.

Standardized practices are either missing or not consistently followed.

Problems are solved temporarily instead of permanently.

The same issues keep recurring.

Waste slowly becomes part of the system.

Extra movements.

Waiting.

Rework.

Excess inventory.

Unplanned activities.

All of these silently increase costs and reduce productivity.

This is where our 8-Week Waste Elimination Implementation Program helps.

The program provides a structured roadmap for identifying and eliminating waste while developing the capabilities of the shopfloor team.

We combine:

✅ Waste Elimination Projects

✅ Kaizen Activities

✅ Gamification

✅ Habit Formation Techniques

✅ Weekly Reviews and Coaching

This ensures that improvement activities do not stop after the initial enthusiasm fades away.

The focus is not just on training.

The focus is on implementation, measurable results, and sustenance.

Over the 8 weeks, participating companies work on real operational problems and implement practical improvements with a target of delivering ₹4 Lakhs worth of measurable cost savings.

More importantly, they build a culture where employees continuously identify and eliminate waste long after the program is completed.

Fill this form if your company is interested in this 2 Months, Waste Elimination Program. Together, we shall build a Culture of Continuous Improvement.

Register here

2 Quotes from Ananth:

1. Every extra step is a silent cost.
   Complexity accumulates quietly; value doesn’t.
   What feels insignificant once becomes expensive when repeated thousands of times.

2. Stability is the doorway to improvement.
   You can’t improve what keeps changing.
   Consistency creates the clarity needed to see what must change next.

While this is not wrong, it is only a surface-level understanding.

Taiichi Ohno, the father of the Toyota Production System, viewed Just-In-Time much more deeply.

Just-In-Time is fundamentally about the Total Elimination of Waste.

Why do we produce only what is needed? To eliminate overproduction.

Why do we produce only when it is needed? To eliminate inventory and waiting.

Why do we focus on flow? To eliminate transportation, inventory, motion, and delays.

Why do we build quality into the process? To eliminate defects and rework.

Every principle of Just-In-Time exists to attack waste.

When companies implement tools such as Kanban, supermarkets, pull systems, and takt time without understanding this purpose, they often struggle to sustain the results.

The goal is not to implement Lean tools.

The goal is to systematically identify and eliminate waste from the system.

Once waste is removed, productivity improves, lead times reduce, space requirements shrink, and profits increase naturally.

If you are a manufacturing business owner and want to learn how to identify and eliminate waste in your factory, join our Waste Elimination Webinar on 19th June at 11:00AM

In this practical session, you will learn:
✔ How to identify waste in your own factory
✔ Simple techniques to eliminate waste and improve flow
✔ Practical examples from manufacturing companies

Register here for the FREE Waste Elimination Webinar and identify the wastes in your organization

Register Here

Check Your Lean Knowledge here:

2 Quotes from Ananth:

1. Seeing beats reporting
   Reports summarize problems after they happen; direct observation reveals reality as it is. Real understanding begins when you see the process with your own eyes.

2. Great leaders create space, not pressure
   Pressure may increase activity, but space creates clarity and better thinking.
   Strong leaders remove fear and noise so people can focus, learn, and improve.

‘A typical unorganised manufacturing unit uses 4 times the space, 2 times the manpower and 10 times the lead-time than required’ (From ‘Gemba Kaizen’ book written by Masaaki Imai).

Why does this happen?

Not because people are not working hard.

It happens because wastes slowly becomes a part of everyday operations.

• Excess movement.

• Waiting. Rework.

• Unnecessary transportation.

• Excess inventory.

• Overproduction, to name a few.

These wastes silently consume your factory’s space, manpower, and time every single day.

Most small and medium-sized manufacturing companies are sitting on a hidden opportunity to improve productivity by 20% or more—without investing in new machines or hiring additional manpower.

The first step is learning how to identify waste.

Once you can see waste, you can eliminate it.

And when waste is eliminated, productivity improves naturally.

That’s exactly what we will be covering in our Waste Elimination Webinar on 19th June.

In this practical session, you will learn:

✔ The 7 Wastes in Lean Manufacturing
✔ How to identify waste in your own factory
✔ Simple techniques to eliminate waste and improve flow
✔ Practical examples from manufacturing companies
✔ How to achieve productivity improvements without major investments

If you are a small or medium-sized manufacturing business owner, plant head, operations manager, or production leader, this session will help you uncover opportunities that may be hiding in plain sight.

Join us on 19th June and discover how to do more with the resources you already have. Click the button to register.

Register for the Webinar

Check your Lean Knowledge:

2 Quotes from Ananth:

1. If work is waiting, value is leaking.
   Products create value only when they are moving through the process.
   Every minute spent waiting increases lead time without adding value.

2. Stop guessing. Start observing.
   Assumptions often lead to the wrong solutions and repeated problems.
   Direct observation reveals the reality of the process and the true source of waste.

A few experienced operators know how to set the machine, solve quality problems, and handle customer requirements. As long as they are present, everything works smoothly.

The problem starts when they are absent.

Different operators follow different methods. The same job is done in different ways. Quality varies. Productivity fluctuates. Training new employees becomes difficult.

How to Solve this?

Using Standard Work

Standard Work is simply documenting the best known method of performing a task and ensuring everyone follows it.

Imagine a customer visiting your factory and observing three operators performing the same operation in three different ways.

Which method is correct?

Which cycle time should be considered?

Which quality standard should be followed?

Without a standard, there is no clear answer.

When Standard Work is implemented, everyone follows the same sequence, uses the same method, and understands the expected outcome.

Training becomes easier.

Quality becomes more consistent.

Problems become visible.

Most importantly, improvements become easier.

If every operator follows a different method, it becomes impossible to know whether an improvement is actually working.

Many small companies believe Standard Work is required only when they become bigger.

In reality, Standard Work is what helps them become bigger.

Growth becomes difficult when processes depend on individuals.

Growth becomes easier when processes are built on standards.

Before improving a process, make sure there is a standard.

After all, you cannot improve something that changes every day.

Does your company has standard work established in the processes? Share this with your colleague and help him/her learn about Standard Work.

If you have tried implementing 5S in your company and unable to sustain the same, join our 5S Implementation program Batch 3, which is completely Online.

We have now completed 2 successful batches of our 5S Implementation Program and the feedback from participating companies has been excellent.

The program focuses on Structured Implementation, Employee Involvement, Gamification and creating a positive 5S culture inside the company.

Starts tomorrow at 10:00AM..Hurry!

Register Here

The real challenge in implementing 5S is not technical. It is cultural.

What are the common challenges while implementing 5S?

1. People Related Challenges:

1. Resistance to Change
   Many times, the middle management itself may not be aware of the best practices. Naturally, they resist changes in the existing way of working.

2. Lack of Organized Working
   In many factories, people are already struggling with day-to-day operational issues. Searching for tools, material movement issues, machine breakdowns, space constraints etc become “normal”. Because of this, teams may feel 5S is an additional burden.

3. “What is in it for me?”
   Unless employees understand the purpose and benefits of 5S, involvement becomes difficult.

4. “We already tried this before”
   This is one of the most common statements heard in factories. In many companies, 5S was implemented as an activity instead of a culture. After a few months, the system slowly disappeared.

2. Process Related Challenges

Some industries generate huge amounts of dust and waste during production. Without proper suction and dust collection systems, maintaining cleanliness becomes very difficult.

In India, many medium and small scale industries do not invest adequately in these systems and the entire shopfloor gets affected because of this.

3. Top Management Related Challenges

Top Management involvement is very important for successful 5S implementation.

This cannot be fully outsourced to consultants.

Employees closely observe the involvement of senior management. If leadership actively participates in reviews, audits and improvements, employees automatically start taking ownership.

Culture always flows from the top.

If you have tried implementing 5S in your company and unable to sustain the same, join our 5S Implementation program Batch 3, which is completely Online.

We have now completed 2 successful batches of our 5S Implementation Program and the feedback from participating companies has been excellent.

The program focuses on Structured Implementation, Employee Involvement, Gamification and creating a positive 5S culture inside the company.

Program starts on 04th June, every Thursday at 10:00AM Indian Time.

Register Here

2 Quotes from Ananth:

1. Flow is built by removing, not adding
   Flow improves when delays, approvals, and unnecessary complexity are eliminated from the process.
   Lean creates speed through simplification, not through adding more activity.

2. Great leaders create space, not pressure
   Pressure may increase activity, but space creates clarity and better thinking.
   Strong leaders remove fear and noise so people can focus, learn, and improve.

TPM talks about 7 major types of abnormalities and I have explained it below.

1. Minor Flaws

• Definition: Small, seemingly unimportant defects.

• Examples: Loose bolts, cracked covers, worn-out belts, or slight play/wobbling in moving parts, nuts and bolts missing, etc.

2. Unfulfilled Basic Conditions

• Definition: Failure to meet the fundamental operating requirements of the machine.

• Examples: Insufficient lubrication, dirty or contaminated oil, misaligned components, or missing safety guards.

3. Inaccessible Places

• Definition: Hard-to-reach areas on or around the equipment that operators often neglect.

• Examples: Hidden corners that accumulate dirt, tight spaces that make lubrication difficult, or obstructed gauges.

4. Sources of Contamination

• Definition: Elements that leak into or onto the equipment, degrading its performance.

• Examples: Oil or grease leaks, metal dust, coolant splatters, or airborne particulate matter.

5. Sources of Quality Defects

• Definition: Conditions causing the machine to produce subpar or defective outputs.

• Examples: Incorrect machine settings, improper temperatures, vibration, or misalignments directly affecting the workpiece.

6. Unnecessary Items

• Definition: Clutter or unneeded tools and materials occupying space around the machine.

• Examples: Unused jigs, spare parts, scrap, unused machines or personal items that interfere with workflow and operator mobility.

7. Unsafe Places

• Definition: Hazards or unsafe conditions that put the operator or surrounding environment at risk.

• Examples: Slippery floors around the machine, protruding sharp edges, frayed wires, or inadequate lighting

How many can you identify in your workplace? Comment them below.

Share this with your team members and friends in the manufacturing sector and help them grow.

2 Quotes from Ananth:

1. Seeing beats reporting
   Reports summarize problems after they happen; direct observation reveals reality as it is.
   Real understanding begins when you see the process with your own eyes.

2. Emptiness is not loss. It is freedom.
   Letting go of mental clutter does not reduce you; it creates space for clarity and peace.
   Freedom begins when the mind is no longer crowded by the past.

We are now inviting companies to participate in our Online 5S Implementation Program (3rd Batch), where we help teams systematically implement and sustain all 5S pillars through practical guidance, review systems and structured execution.

If your company wants to move beyond “one-time cleaning drives” and build a sustainable 5S culture, feel free to register.

Register Here

Here is a list of 10 abnormalities you can find in many shopfloor.

1. Oil leakages from the machines to the floor

2. Metal Chips / Scrap accumulates on the machines and falls on the floor

3. Machines are dirty with oil and grease stains all over and people avoid touching the machines

4. Gauges, Indicators and Switches are dirty / not functioning / Broken and not replaced

5. Coolant / Oil reservoirs are leaking / with too much of accumulated dirt

6. Pneumatic leakages, Steam leakages in the ducts

7. A lot of Nuts and bolts are loose / missing

8. Machines make a lot of Noise, Vibrations

9. Overheating motors, dust accumulation in motors

10. Drives, Pulleys and other transmission components are dirty / loose and vibrating

How many you can spot in your shopfloor? Share it in the comments.

In our 5S Implementation, we guide the team to look for these abnormalities and help them in fixing the same.

2 Quotes from Ananth:

1. “You can’t see waste from a desk” - Real problems become visible only where the work actually happens. Distance creates assumptions; observation creates understanding.

2. “Lean moves. Waste waits.” - Lean creates continuous movement of value through the process. Whenever work, material, or decisions are waiting, waste is growing.

1 Quiz to kindle your thoughts:

Imagine you walk into a shopfloor that is constantly missing delivery targets, operators seem frustrated, and supervisors are firefighting all day. What would you do in your first 3 days?

Share your thoughts as a Reply to this post and get featured in the next week’s newsletter.

However, Changeover times can be reduced by more than 50% with ZERO additional cost.

Why is reducing Changeover Time important?

Here are 7 reasons:

1. Increases OverProduction - People don’t do frequent changeovers (as setup time is high) and WIP builds up

2. High WIP results in high space requirement in the shop floor

3. People won’t get trained in setups as they don’t do setups frequently - resulting in high variation in setup time and poor quality setups / lot of adjustments

4. Increases Waiting Waste (of materials and manpower) - during setup

5. Continuous Flow Production would be difficult - as the setup time is high

6. Load Levelling (Heijunka) becomes difficult - infrequent changeovers leading to large lot size - some products will not be produced that often to meet the demand

7. High Risk of Product Obsolescence - Changes in specification would make the WIP obsolete

If the Changeover time is high in your company, check out the video below that helps in reducing the setup time.

Share this with your friends and colleagues.

Video: How to reduce Changeover time in your operations?

2 Quotes from me:

1. Standard work frees the mind to improve.

2. Stability is the doorway to improvement.

Join our FREE Supervisor Development Program to train your team on Operations, specifically on Lean Manufacturing.

Join the FREE Course

The Toyota Way: 14 Principles for Operational Excellence

The Toyota Way, a seminal book by Jeffrey K. Liker, distills the philosophy behind Toyota’s remarkable success into 14 actionable principles. These guidelines, rooted in lean thinking and continuous improvement, offer a blueprint for organizations striving for excellence. Here’s a crisp breakdown:

1. Base Decisions on a Long-Term Philosophy
   Prioritize long-term goals over short-term gains. Toyota’s focus on value, purpose, and sustainability drives decisions, even at the expense of immediate profit.

2. Create Continuous Process Flow
   Streamline workflows to expose inefficiencies. By eliminating bottlenecks and delays, problems surface quickly for resolution.

3. Use “Pull” Systems to Avoid Overproduction
   Produce only what’s needed, when it’s needed. This minimizes waste, reduces inventory, and aligns with customer demand.

4. Level Out the Workload (Heijunka)
   Balance production to avoid overburdening people or systems. Smooth workflows enhance efficiency and reduce stress.

5. Build a Culture of Stopping to Fix Problems
   Quality trumps quantity. Pause when issues arise, fix them at the source, and ensure defects don’t move downstream.

6. Standardize Tasks for Continuous Improvement
   Establish clear, repeatable processes as a foundation. Standardization enables consistency and a baseline for innovation.

7. Use Visual Controls to Highlight Issues
   Make problems visible with simple tools like dashboards or charts. Transparency ensures quick detection and response.

8. Adopt Reliable, Tested Technology
   Embrace technology that supports people and processes, not just for its own sake. Test thoroughly before integration.

9. Grow Leaders Who Live the Philosophy
   Develop leaders internally who embody the company’s values. They mentor others and sustain the culture.

10. Develop Exceptional People and Teams
    Invest in employees who follow the philosophy. Strong, cohesive teams are the backbone of success.

11. Respect Your Extended Network
    Treat partners and suppliers as allies. Build trust, share knowledge, and help them improve alongside you.

12. Go See for Yourself (Genchi Genbutsu)
    Don’t rely on reports—observe problems firsthand. Direct experience at the source informs better solutions.

13. Make Decisions Slowly, Implement Quickly
    Consensus matters. Take time to consider all options, then execute with speed and precision.

14. Become a Learning Organization
    Relentlessly reflect (hansei) and improve (kaizen). Continuous learning at all levels drives adaptability and growth.

Why these Matter?

These principles aren’t just for manufacturing—they’re a mindset. From healthcare to tech, The Toyota Way inspires leaders to eliminate waste, empower people, and build systems that last. Toyota’s global dominance proves it: excellence isn’t an accident; it’s engineered.

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2 Quotes for the Week:

1. “Exceptional teams don’t just happen—they’re forged through shared purpose, mutual respect, and a relentless drive to improve together.” - Reflects Toyota’s emphasis on developing cohesive teams (Principle 10).

2. “Great leaders don’t create followers; they inspire others to live the vision, solve problems at the source, and lead by example.” - Echoes Toyota’s focus on growing leaders who embody the philosophy (Principle 9).

1 Question for the Week:

Which lean concept focuses on stopping production to fix problems immediately?

a) Heijunka
b) Jidoka
c) Kaizen
d) Genchi Genbutsu

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Most managers try to add value by doing more.
The best ones do it by removing friction.

Walk into a typical factory day.

Work is happening.
People are busy.
But small delays are everywhere.

• Waiting for approvals.

• Searching for tools.

• Clarifying instructions.

• Moving materials back and forth.

Nothing looks serious.
But everything slows the system.

When performance drops, the common response is to push harder.

More follow-ups.
More reviews.
More instructions.

Activity increases.
Flow doesn’t.

Because the real problem is not effort.
It is friction.

Friction in a factory looks like:

• Extra approvals

• Unclear standards

• Poor layout

• Missing information

• Frequent interruptions

Each one adds seconds.
Together, they consume hours.

This is where management truly adds value.

Not by doing the work.
But by making the work easier to do.

Removing obstacles.
Simplifying decisions.
Clarifying expectations.
Stabilizing the process.

When friction reduces:

• Work flows

• Stress drops

• Problems become visible

• Improvement becomes natural

Lean is not about pushing people harder.

It is about making the system smoother.

Before asking teams to do more,
ask a better question:

What is slowing them down?

Because in the end,

Management adds value by removing friction.

2 Quotes by Ananth:

1. Good systems make problems obvious

2. You don’t find the present. You make space for it.

The Ultimate guide on Lean Manufacturing:

If you are interested in learning Lean Manufacturing in a Simple and Easy to Understand manner, our Ebook would help. This can also be used as a Training Kit for your team. At just Rs. 250, this offers excellent value.

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What is a Bottleneck Process?

1. Cycle time of these processes are more than the Takt Time (Requirement Rate)

2. These processes determine the output of the line

3. Improvement in Bottleneck process only can bring increase in the Line’s output

How to reduce the cycle time of Bottleneck Activities? This is a big challenge many of us face after identifying the bottleneck activities. There are 3 ways to do it.

1. Step 1 - Existing Output: Analyse what’s the current output Vs. the existing cycle time(CT) - Are we producing to the current cycle time? for e.g. If the cycle time is 1 min and available time is 420 min in a shift, we should get 420 pieces. Are we achieving this output? If not, why the output is low? Try to bring the output of the process to the Existing norm (based on the CT)

2. Step 2 - Once the Existing norm is achieved, Eliminate some of the Non-Value Added Activities in the operation - Can we identify the non-value added activities inside the current CT? Loading, unloading, Slow Tool movements, Frequent Stoppages, Tool indexing times, Operator doing other activities, etc.

3. Step 3 - Improve the Value Adding Activities - e.g. in a Turning Operation, Can we increase the RPM of the machine? Can we increase the depth of cut? Can we use a better tool and eliminate a rough turning activity(in case there are multiple rough turnings)

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2 Quotes from Ananth:

1. Flow is built by removing, not adding.

2. Standard work frees the mind to improve.

Systematic and Step-by-step 5S Implementation:

We are starting our second batch of Online 5S Implementation, to help your company implement 5S in a simple, systematic and step-by-step manner over a period of 6 months.

We use our Unique way of Gamifying 5S, forming 5S Habits among your team members through Weekly Training and Reviews to help you create high Impact and Sustenance in 5S.

First 2 months are FREE.

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Power & Fuel Costs are rising. But the real insight is in how companies are managing it. Across auto component manufacturers, Power & Fuel spend ranges from ~1.3% to >5% of revenue — a massive gap.

📊 What stands out:

👉 Schaeffler India (~1.3%)
Among the lowest. Driven by:
Renewable energy adoption
Waste heat recovery
This is designed efficiency, not cost cutting.

👉 Craftsman Automation Ltd & Bharat Forge Ltd (>5%)
Higher due to:
Energy-intensive processes
Forging and heavy machining

👉 OEMs vs Ancillaries
OEMs: <0.5%
Ancillaries: 2–5%

Energy follows value addition intensity. Ancillaries do the heavy lifting — forging, machining, processing — and that shows up directly in power consumption.

Conclusion:

Energy is the new productivity lever.

In the coming years, competitiveness will not just depend on:

• Labour efficiency

• Machine utilization

…but also on:

👉 Energy efficiency per unit of output

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Download the Sample Benchmarking Report of Indian Automotive Sector here.

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2 Quotes from Ananth:

1. Leaders remove obstacles, not people.

2. Seeing beats reporting.

Invitation for 5S Implementation:

We are starting our second batch of Online 5S Implementation, to help your company implement 5S in a simple, systematic and step-by-step manner over a period of 6 months. First 2 months are FREE. Registration Link in the comment Section.

We use our Unique way of Gamifying 5S, forming 5S Habits among your team members through Weekly Training and Reviews to help you create high Impact and Sustenance in 5S.

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