Liquid Lean: Developing Lean Culture in the Process Industries

While Lean practices have been successfully implemented into the process industry with excellent results for over 20 years (including the author’s own award winning example at Exxon Chemical), that industry has been especially slow in adopting Lean. Part of the problem is that the process industry needs its own version of Lean. The larger part of the problem is resistance to transformational change, a barrier that can only be overcome with effective leadership and results-oriented planning that engages rather than excludes all stakeholders.

Winner of a 2012 Shingo Prize!

Written by Raymond Floyd, an unparalleled leader of Lean transformations, Liquid Lean: Developing Lean Culture in the Process Industries provides potential process industry change agents with the no-nonsense guide needed to eliminate waste and achieve sustainable optimal efficiency. Presenting lessons in lean as they apply within the liquid industries, the book focuses on developing the four measures of Lean as defined by the Shingo Award:



Business Results
Consistent Lean Enterprise Culture
Continuous Process Improvement
Cultural Enablers


Illustrated with his own success stories, Floyd describes business results, Lean enterprise thinking, and policy deployment in process industry terms. He offers detailed theory, practice, and examples of continuous process improvement, and describes the leadership and defines the ethics needed to evolve and sustain Lean transformation. Floyd lays out the specific steps needed during the first six months of transformation and the benchmarks to be achieved during the first two years of implementation. All companies can benefit from Lean; this book makes sure that those who want it, know how.

Raymond C. Floyd is senior vice president of Suncor Energy. Prior to joining Suncor, Ray retired from Exxon Mobil, where he spent more than 20 years and where he most recently served as global manager of manufacturing services. Previously, he was with General Motors for more than 10 years. Ray is generally recognized as one of North America’s “early adopters” of lean manufacturing and is among the very first worldwide to adapt lean technologies for use in the chemical and process industries.
Following the practices described in this book, Ray led the first chemical business to receive the Shingo Prize and has led two separate businesses that have been designated as one of “America’s ten best plants” by IndustryWeek magazine. Ray is the only person to lead businesses in both chemical and mechanical manufacturing to receive that designation. As site manager for Exxon’s massive Baytown chemical plant, Ray led the team that was designated as “best maintenance organization in large industry” by Maintenance Technology magazine. Ray received the Andersen Consulting award for “excellence in managing the human side of change.”
Ray has degrees in chemical engineering, business administration, and law. He is professionally licensed as an engineer, attorney-at-law, and patent attorney. He has also received international senior executive development at the Institute for International Studies and Training in Japan and the Institute for Management Development in Switzerland. Ray was appointed by President Reagan to represent the United States at the Japan Business Study Program as a guest of Japan’s Ministry of International Trade and Industry. Ray’s wife, Marsha, is also an attorney-at-law. Ray and Marsha have two daughters, who are both physicians, and five grandchildren.

Chapter 1 Business Results in Process IndustriesIntroductionHow This Book Is Organized: Shingo Prize CriteriaBusiness Results: Improve Performance with LeanBeat the Competition with Very Flexible ManufacturingImprove Performance with Lean and an Engaged WorkforceGain First Mover AdvantageAchieve Prompt ImprovementAll Companies Can Benefit from Lean, but Not All DoDisruptive ChangesWhy the Process Industry Needs Its Own Version of LeanTransforming the Raw MaterialIndirect Material TransformationsTime as an Independent Element of ProductionSpecial Case: Continuous ProcessingNotesChapter 2 Lean Enterprise ThinkingIntroductionDeveloping a Western Lean-Enabling CultureHistorical PerspectiveEarly View of Lean: Just-in-Time ManufacturingEarly View of Engaged Employees: Quality CirclesThe Eight Sources of WasteThe Relationship between Inventory and Operating ProblemsValue Streams and Support ProcessesLean Values: Inventory Reductions Can Sustain ImprovementsLean Values: Culture of EngagementNotesChapter 3 Policy DeploymentIntroductionLarge Events and Small EventsA Strategic View of ManufacturingStrategic Alignment and Necessary BoundariesPrerequisites for Structured Autonomous ImprovementStrategic DirectionThe Role of Communication in Achieving Strategic AlignmentLimiting Opportunities for ImprovementDeploying Strategic IntentSimple Statement of the GoalProse Statement of Intended Future StateProse Statement of Current RealityObjective Measures of ProgressInterim Performance TargetsFormatting Goal StatementTranslating Strategic Intent throughout the OrganizationFramework for ActionHow Quality Stations WorkDisplay the Team GoalsDisplay What the Team Has CompletedShow the Work in ProgressProvide Interactive SpacePolicy Deployment in Action: Conversations at a Quality StationInternal Team ConversationsExternal Team ConversationsChapter 4 Improving Flexibility and Availability in Mechanical EquipmentIntroductionSingle Minute Exchange of Dies SystemWhat We Can Learn from NASCAR..4Translating NASCAR Success to Our PlantsPreparationTeamworkEquipmentHow to Use the SMED ConceptThe Five Key Components of SMED PracticeSeparation of ActivitiesModification of Rate-Limiting Internal ActivitiesModification of the Work TeamModification of the EquipmentModify Equipment to Maximize EfficiencyPreparing for Events and Sustaining the ImprovementsOutcome of ImprovementsChapter 5 Operational Planning to Improve ChemicalTransitionsIntroductionThe Causes of Chemical InflexibilityChemical ContaminationUnintended ConversionsFixed Sequence Variable Volume ProductionThe Concept: A Comprehensive Approach to the Production CycleWhat We Can Learn from the New York Subway SystemThe Four Components of FSVV PracticeTypical Operating ProblemsChanges in Process ConditionsAdditives and ModifiersChanges in Reactive ChemicalsThe Fixed SequenceEstablishing a Fixed SequenceFSVV Inventory PolicyDays of Demand in InventoryABC InventoriesFSVV Inventory PolicyWheels within WheelsVariable Volume SchedulingContinuous ImprovementSustainability over TimeThe “Exception” Problem Chapter 6 Assessment and Improvement of Other AccumulationsIntroductionStructural Differences between Process Industries and Mechanical ManufacturingSmall Accumulations in Process IndustriesChapter 7 Statistical Quality ImprovementIntroductionThe Power of Statistical Quality Combined with Lean ManufacturingStatistical Methods in the Process IndustriesBasic Statistical ConceptsSix SigmaProcess Improvement before Statistical AnalysisProcess Improvement Using Statistical AnalysisOperational Improvement with Statistical AnalysisStatistical Models of Process PerformanceUsing Statistical Analysis: The Process CapabilityIndexCapable ProcessesIncapable ProcessesUsing SPC at the Frontline in a Process PlantUsing a Run ChartWhen the Run Chart Says the Process Is Operating NormallyWhen the Run Chart Says the Process Is Producing an Unexpected ResultWhen the Run Chart Says the Process Is “Nearly Normal,” but Results Are Drifting Avoid the Waste of Excess Quality Notes Chapter 8 Mistake Proofing or Poka-YokeIntroductionMistakes Come in Two PartsThe Consequences of MistakesMistake Proofing: Preventing ConsequencesMistake Proofing Is Common KnowledgeWarning SystemsFour Types of Warning SystemsPoka-Yoke Practice 1: Physical SeparationPoka-Yoke Practice 2: Visual SignalsPoka-Yoke Practice 3: Pattern RecognitionPoka-Yoke Practice 4: Simple Physical Devices and Other Minor ChangesApproaching Perfect ProductionChapter 9 Equipment Reliability and Operator CareIntroductionFinding the Cause: Separating the Processes from the EquipmentThe Role of Equipment Reliability in Lean PracticeOperator CareThe Fundamentals of Operator CarePhase I: Basic CareKeep the Equipment CleanKeep the Equipment CoolKeep the Equipment LubricatedPhase II: Advanced TechniquesDefine Your GoalsChange the Oil and the FiltersPay AttentionAutonomous Maintenance as an Element in ImprovementAutonomous ActionsChapter 10 Lean Leadership and Ethics: Creating an Engaged WorkforceIntroductionImprovement Experiences at the FrontlineThe Structure of Employee EngagementThe Elements of EngagementClear GoalsSkills Necessary to Achieve the GoalsTime to Make ImprovementsAccess to the Resources That Cause ChangeFramework for ActionEngage Frontline TeamsWhat to Do When Teams Do Not EngageRefresh the Understanding of Small Event ImprovementThe Subjective Elements of EngagementLack of Trust in ManagementDisruption by Team MembersIntentional DisruptionUnintentional DisruptionIndustrial CultureNotesChapter 11People DevelopmentIntroductionImpact of Competent People on Organizational PerformanceCompetence DefinedBasic CompetenceBasic Competence DevelopmentSuperior PerformanceCritical PositionsFinding the Right Management ToolA Quick Description of Our AnalysisThe Influence of Critical Positions on ImprovementIndividual ContributorsSubject Matter Experts or MentorsLeadersIdentifying Critical Roles in Your OrganizationCommon MisconceptionsDeveloping Highly Competent PeopleBeginning the ProcessPrompt ImprovementSustaining the ImprovementChapter 12 Leadership: Initiating and Sustaining Lean OperationsIntroductionTransforming an Organization and Sustaining the ChangeSustaining ImprovementProcess DocumentationThe Role of Transformational LeadershipSustaining LeadershipWhen the Leader Is Not the CEOGetting StartedThe Value of 6-Month IntervalsThree Attributes of a Successful BeginningThe Value of Shared VisionThe Value of Immediate Pilot ProjectsThe Value of New ToolsNotesIndexAbout the Author