to lean or not to lean apics 11.19.14 · 2014. 12. 11. · 5 the long island landscape category...
TRANSCRIPT
To Lean, or Not To Lean?o-o-o-o-o-o-o-o
Is That The Question?
Presented by
&
The Long Island Forum For TechnologyNovember 19, 2014
Fcst univac
The Challenges
Is Lean for everyone?
Which “flavor” of Lean is best? Formal culture change aka TPS? Tools and Problem solving?
What is Lean, anyway?
Who benefits?
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The Challenges Too busy to engage? Don’t think the payback is
there? Heard it is too complicated?
“We cannot stop production to train?” “We are just a job shop! It does not apply to small runs,
and constant change!” “Why would I do that in the office?” “Ours is a regulated industry. We have to follow
documented instructions, so we cannot do those things!” “I have to have that much inventory in case the line goes
down!” “…and who is going to maintain that?”
…and what about the private owner who is satisfied with what he or she has?
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The LONG ISLAND LandscapeCategory Jobs Companies JOBS COMP.
avg emp % Cum % Cum
Computer and Electronic Product Manufacturing 12,553 292 43.0 17.8% 9.0%Chemical Manufacturing 12,419 133 93.4 35.37% 13.1%Fabricated Metal Product Manufacturing 7,678 513 15.0 46.24% 29.0%Food Manufacturing 6,256 292 21.4 55.10% 38.0%Miscellaneous Manufacturing 4,788 397 12.1 61.88% 50.3%Machinery Manufacturing 4,353 190 22.9 68.04% 56.2%Printing and Related Support Activities 4,071 374 10.9 73.81% 67.7%Transportation Equipment Manufacturing 3,847 124 31.0 79.26% 71.6%Plastics and Rubber Products Manufacturing 2,677 87 30.8 83.05% 74.3%Furniture and Related Product Manufacturing 2,553 241 10.6 86.66% 81.7%Electrical Equipment, Appliance, and Component Mfg. 2,378 79 30.1 90.03% 84.1%Paper Manufacturing 1,926 56 34.4 92.76% 85.9%Nonmetallic Mineral Product Manufacturing 1,398 127 11.0 94.74% 89.8%Textile Product Mills 759 72 10.5 95.82% 92.0%Apparel Manufacturing 712 68 10.5 96.82% 94.1%Wood Product Manufacturing 673 67 10.0 97.78% 96.2%Textile Mills 531 35 15.2 98.53% 97.3%Beverage and Tobacco Product Manufacturing 501 37 13.5 99.24% 98.4%Leather and Allied Product Manufacturing 194 9 21.6 99.51% 98.7%Primary Metal Manufacturing 179 24 7.5 99.77% 99.4%Petroleum and Coal Products Manufacturing 165 18 9.2 100.00% 100.0%
70,611 3,235 21.8
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The LONG ISLAND LandscapeCategory Jobs Companies JOBS COMP.
avg emp % Cum % Cum
Computer and Electronic Product Manufacturing 12,553 292 43.0 17.8% 9.0%
Chemical Manufacturing 12,419 133 93.4 35.37% 13.1%
Fabricated Metal Product Manufacturing 7,678 513 15.0 46.24% 29.0%
Food Manufacturing 6,256 292 21.4 55.10% 38.0%
Miscellaneous Manufacturing 4,788 397 12.1 61.88% 50.3%
Machinery Manufacturing 4,353 190 22.9 68.04% 56.2%
Printing and Related Support Activities 4,071 374 10.9 73.81% 67.7%
Transportation Equipment Manufacturing 3,847 124 31.0 79.26% 71.6%
Plastics and Rubber Products Manufacturing 2,677 87 30.8 83.05% 74.3%
Furniture and Related Product Manufacturing 2,553 241 10.6 86.66% 81.7%
Electrical Equipment, Appliance, and Component Mfg. 2,378 79 30.1 90.03% 84.1%
Our Landscape on LI
3,200 Manufacturing companies (+/-)
71,000 employees (+/-)
75% of companies have 25 employees or less
Therefore, 2,400 companies = 35,000/40,000 jobs 800 companies = 36,000/31,000 jobs
Note: 2013 Data, NIST: have/have not
The Survey Says….
2013 & 2014 Manufacturing surveys report:
Reduction of costs and overhead is the most popular business strategy reported by almost 60% of M & D company executives
More than 60% stated that profitability, controlling costs/overhead and growth are the three top goals for 2013 and 2014
76% of respondents stated they had not yet implemented any Lean principles or Continuous Improvement program!
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Note: Grassi & Co., Inc.
The Irony
Lean has roots in the US Perfected in Japan
Documented very well A common language and terms for all to use
We struggle to use one of the most successful management techniques, to the level that Japanese competitors do!
How come?
What are we talking about?
8US Hist. TWI
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The Principles of Lean
1. Specify value from the standpoint of the end customer
2. Identify all the steps in the value stream, eliminating whenever possible those steps that do not create value
3. Make the value-creating steps occur in tight sequence so the product will flow smoothly toward the customer
4. As flow is introduced, let customers pull value from the next upstream activity
5. As value is specified, value streams are identified, wasted steps are removed, and flow and pull are introduced, begin the process again until a state of perfection is reached in which perfect value is created with no waste
The Machine That Changed The World, Womack, 1990
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The Principles of Lean
1. Identify Value
3. Create Flow
4. Establish Pull
2. Map the Value Stream
5. Seek Perfection
The Machine That Changed The World, Womack, 1990
Continuous Improvement
RC CI exp
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Definitions
Value - A capability provided to a customer at the right time, at an appropriate price, as defined in each case by the customer. Features of the product or service, availability, cost
and performance are dimensions of value.
Waste - Any activity that consumes resources but creates no value .
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What is Lean?
Lean focuses on eliminating waste in processes (i.e., the waste of work in progress and finished good inventories)
Lean is not about eliminating people
Lean is about expanding capacity by reducing costs and shortening cycle times between order and ship date
Lean is about understanding what is important to the customer
Lean is about making employees better, and better, and better!
Shingo US Syn.
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Types of Waste
Overproduction
Excess inventory
Defects
Non-value added processing
Waiting
Underutilized people
Excess motion
Transportation
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Lean isn’t Just for the Plant…the Office can create Just as Much Waste in Time and Manpower
Office or Administrative Waste includes: Disorganization Communication Barriers Poor Hand Offs Useless Information Discarded knowledge
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Lean Tools and Techniques
5s & Visual Controls
Kaizen
Root Cause Analysis
(5 Why‘s; Brainstorming: Fishbone)
Value Streams
Pull Manufacturing
Mistake Proofing
Quick Changeover (SMED)
Theory of Constraints
Human Factors
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5S and Visual Control
5 Elements of 5S Why 5S? Waste Workplace observation Sort Straighten Shine Standardize Sustain Visual Factory
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Why 5S?
• To eliminate the wastes that result from “uncontrolled” processes.
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After 5S
Clear, shiny aisles Color-coded areas Slogans & banners Reduced work in process
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Before
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After
Before
After
After
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Kaizen
Kaizen (Ky’zen)
“Kai” means “change”
“zen” means “good (for the better)”
Gradual, orderly, and continuous improvement
Ongoing improvement involving everyone
Speed of implementation – create small victories
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How to Kaizen
Identify
Plan – identify what to change and how to do it
Do – execute the improvement
Check – ensure the improvement works
Act – future and ongoing improvements
Repeat
Total focus on a defined process or task to create radical improvement in a short period of time
Dramatic improvements in productivity, quality, delivery, lead-time, set-up time, space utilization, work in process, workplace organization, etc., result
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Kaizen Blitz - Agenda Day 1: Setting the scene
Meet the team, do some training, set SMART goals
Day 2: Observe the current process
Flowchart, identify waste, identify root causes
Day 3: Develop the future state process
Brainstorm and flowchart (typically the longest day!)
Day 4: Implement the new process
Plan, communicate, implement, modify
Day 5: Report and analyze
Performance vs. expectations
Before
After
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Before
After
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Root Cause Analysis
ROOT CAUSE =
The contributing “factors” that, if corrected, would prevent recurrence of the identified problem
The “factor” that caused a problem or defect and should be permanently eliminated through process improvement
The “factor” that sets in motion the cause and effect chain that creates a problem
The “true” reason that contributed to the creation of a problem, defect or nonconformance
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What is root cause analysis?
A standard process of:
identifying a problem
containing and analyzing the problem
defining the root cause
defining and implementing the actions required to eliminate the root cause
validating that the corrective action prevented recurrence of problem
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Hints about root causes
One problem may have more than one root cause
One root cause may be contributing to many problems
When the root cause is not addressed, expect the problem to reoccur
Prevention is the key!
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But who’s to blame?
The “no blame” environment is critical
Most human errors are due to a process error
A sufficiently robust process can eliminate human errors
Placing blame does not correct a root cause situation
Is training appropriate and adequate?
Is documentation available, correct, and clear?
Are the right skill sets present?
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What is a Cause-Effect Diagram?
A Cause-Effect (also called “Ishikawa” or “Fishbone”) Diagram is a Data Analysis/Process Management Tool used to:
Organize and sort ideas about causes contributing to a particular problem or issue
Gather and group ideas Encourage creativity Breakdown communication barriers Encourage “ownership” of ideas Overcome infighting
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Allow team members to specify where ideas fit into the diagram Clarify the meaning of each idea using the group to refine the ideas. For
example:
Cause-Effect Diagram
Materials
Incorrect Quantity
Incorrect BOLWrong Destination
Methods
Late Dispatch
Shipping DelaySpillage
EnvironmentShipping
Problems
Traffic Delays
Weather
Equipment
Wrong Equipment
Dirty EquipmentBreakdown
People
DriverAttitudeDispatcher
Wrong Directions
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5 Why’s
Ask “Why?” five times
Stop when the corrective actions do not change
Stop when the answers become less important
Stop when the root cause condition is isolated
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The Value Stream
A Value Stream is the set of all actions (both value added and non value added) required to bring a specific product or service from raw material through to the customer.
• “Whenever there is a product (or service) for a customer, • there is a value stream. The challenge lies in seeing it.”
• 3 enterprise value streams: Raw Materials to Customer - Manufacturing Concept to Launch - Engineering Order to Cash - Administrative Functions
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Value Stream Mapping
Helps you visualize more than the single process level
Links the material and information flows
Provides a common language
Provides a blueprint for implementation
More useful than quantitative tools
Ties together lean concepts and techniques
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Value Stream Mapping
● Follow a “product” or “service” from beginning to end, and draw a visual representation of every process in the material & information flow. The result is the “current state”
● Then, draw (using icons) a “future state” map of how value should flow.
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The Current State
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The Current State
Typical Results
80 – 90% of total steps are waste from standpoint of end customer.
99.9% of throughput time is wasted time.
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The Future State
Completed in a day with the same team Focused on:
Creating a flexible, reactive system that quickly adapts to changing customer needs
Eliminating wasteCreating flowProducing on demand
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The Future State
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Push Vs. Pull Scheduling
Push Scheduling Traditional approach
Usually work order driven
Very transactional (Kitting and Issuing material)
Completed items typically move in batches
Difficult to keep work priorities synchronized
“Piles” of inventory on the production floor is the most visible characteristic
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Push Vs. Pull Scheduling
Pull scheduling Coordinated production
Driven by demand (pulled through system)
Nothing is produced by the upstream supplier until the downstream customer signals a need.
The rate of production for each product is equal to the rate of customer consumption
Extensive use of visual triggers (production/withdrawal kanbans)
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Scrap
Work in process inventory level(hides problems)
Unreliable Vendors
Capacity Imbalances
Inventory Hides Problems
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ScrapUnreliable Vendors
Capacity Imbalances
WIP
Lowering Inventory Reveals Problems
Accommodate lower inventory levels by:
• Reducing variability• Eliminating waste• Streamlining production and material flows• Accurate information
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A philosophy that rejects batch, lot or mass processing as wasteful.
States that product should move (flow) from operation to operation, only when it is needed, in the smallest increment.
One piece is the ultimate (one-piece-flow)
One Piece Flow
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Japanese word for “sign, card, billboard”
Authorizes production from downstream operations based on physical consumption
May be a card, flag, visual signal, etc.
Used often with fixed-size containers
Kanban quantities are a function of lead-time and consumption rate
Kanban
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Kanban Example
Front Bin EmptyProduct Consumed
Signal ReorderKanban Replenished
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Kanban Example
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Kanban Squares
X X X
XXX
Flow of workFlow of information
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Pull System
Sub
Sub
Fab
Fab
Fab
Fab
Customers Final Assy
Vendor
Vendor
Vendor
Vendor
....
Production Schedule
Leveled assembly instructions
A
AC
AB
Vendor
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Poke Yoke & Mistake Proofing● The use of process or design features to prevent errors or
their negative impact
● Also known as Poka yoke, Japanese slang for “avoiding inadvertent errors”
● Inexpensive
● Very effective, provides quick feedback 100% of time
● Based on simplicity and ingenuity
● Errors that leave the factory are VERY expensive!
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What Causes Defects?
1. Poor procedures or standards
2. Machines
3. Non-conforming material
4. Worn tooling
5. Human Mistakes
Except for human mistakes these conditions can be predicted and corrective action can be implemented to eliminate the cause of defects.
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3 Rules of POKA YOKE
Don’t wait for the perfect POKA YOKE. Do it now!
If your POKA YOKE idea has better than 50% chance to succeed…Do it!
Do it now….improve later!
Everyday Examples
New lawn mowers are required to have a safety bar on the handle that must be pulled back in order to start the engine. If you let go of the safety bar, the mower blade stops in 3 seconds or less.
Fueling area of car has three error-proofing devices: 1. insert keeps leaded-fuel nozzle from being inserted 2. tether does not allow loss of gas cap 3. gas cap has ratchet to signal proper tightness and
prevent over tightening.
Removable memory (thumb flash drives) cannot be inserted unless the drive is oriented correctly. The contact surfaces within the drive occupy only one-half the height of the insert. A solid block occupies the other half which must mate with the contacts of the receptacle.
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Everyday ExamplesWhich dial turns on the burner?
Stove A
Stove B
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Quick Changeover & SMED?
Single Minute Exchange of Dies is changing process tooling in 9 minutes or less.
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Why SMED?
Reduced inventories.
Improved productivity.
Higher quality levels.
Increased safety.
Improved flexibility.
Reduction in throughput time.
Improve operator capabilities.
Lower manufacturing costs.
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Changeover Definitions
Changeover time is the total elapsed time between the last unit of good production of the previous run, at normal line efficiency, to the first unit of good production of the succeeding run, at full line efficiency.
Changeover is the total process of converting a machine or line from running one product to another
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Traditional approach
Setup is given and fixed Therefore,
Use highly skilled setup personnel Minimize product variety Combine lots Make large batches
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Another way
Setups CAN be improved! Small lot production REQUIRES short setups Setup time reductions up to 90% are common
Goal is to make less, reduce WIP and storage, impact unit cost!
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The SMED Process
Preliminary Stage – Observe and Record. Stage 1 – Separate internal and external
activities. Stage 2 – Convert internal activities to
external activities. Stage 3 – Streamline all activities. Stage 4 – Document internal and external
procedures.
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Theory of Constraints
Any system can produce only as much as its critically constrained resource
60 unitsPer day
70 unitsPer day
40 unitsPer day
60 unitsPer day
Constraint
Maximum Throughput = 40 units per day
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Significance of Bottlenecks
Maximum speed of the process is the speed of the slowest operation
Any improvements will be wasted unless the bottleneck is relieved
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Theory of Constraints
Purpose is to identify constraints and exploit them to the extent possible
Identification of constraints allows management to take action to alleviate the constraint in the future
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Drum Buffer Rope
Drum-Buffer-Rope for Shop Floor Control Drum: The Pace Setting Resource - constraint Buffer: The amount of protection in front of the
resource Rope: The scheduled staggered release of material to
be in line with the Drum’s schedule.
60 70 40 60
Constraint(Drum)
Rope
BufferA Pull System
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Five Steps Of TOC
1. Identifying the constraint
2. Decide how to exploit the constraint
3. Subordinate everything else to the decision in step 2
4. Elevate the constraint
5. Go back to step 1, but avoid inertia
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Measurements Get Attention
We don't know what we don't know
We can't act on what we don't know
We won't know until we search
We won't search for what we don't question
We don't question what we don't measure
Hence, We just don't know
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Numbers Matter
If we cannot express what we know in numbers, we don't know much about it
If we don't know much about it, we cannot control it
If we cannot control it, we are at the mercy of chance
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Human Factors
Rewards & Recognition
Effective Teams
Effective Meetings
Leadership Styles
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Your Organization Can Benefit from Teams
Team output usually exceeds individual output.
Complex problems can be solved more effectively.
Creative ideas usually are stimulated in the presence of other individuals who have the same focus, passion, and excitement.
Teams both appreciate and take advantage of diversity.
Support arises among team members.
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Leadership & Leadership Style
Dissatisfied and Disconnected
40% of workers feel dissatisfied and disconnected from their employers.
About one out of every four workers are simply showing up to collect a paycheck.
Two out of every three workers do not identify with or feel motivated to drive their employer's business goals and objectives.
Management is not viewed as an asset.
Source: The Conference Board
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Leadership & Leadership Style
Employees’ dissatisfaction extends to leadership
Almost half the leadership is viewed as uninvolved and hands off.
15% are in a leadership position because of their job skills and not management skills.
Only 30% are viewed as strong leaders.
Source: The Conference Board
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The LEAN LEADER’S Role:
LEADERS MUST BE TEACHERS
Take time to teach
Share and Transfer ideas, skill and understanding
LEADERS BUILD TENSION, NOT STRESS
Provide energy that can move people to action
Have a vision of the future; a hatred of the current reality; skills and actions to close the gap between the two
LEADERS ELIMINATE FEAR AND COMFORT
Support an environment that encourages experimentation
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The LEAN LEADER’S Role:
LEADERS LEAD THROUGH VISIBLE DEMONSTRATION, & PARTICIPATION, NOT PROCLAMATION
Pull the organization through the change process
Participate in waste walks, kaizen events, problem solving, actively with the staff
Directly observe how Lean is being understood and applied first hand, not through second hand reports of a walk through
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Am I Walking the Talk?
Employees believe what their leaders do!
“What leaders say” must match “what they do”
High Say/Low Do
High Say/High Do
Low Say/Low Do
Low Say/High Do
Always
Never Do Always
Say
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The End
(or really only the beginning…)