Lean Class

7/31/2019 Lean Class

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More value to the customer and the company, withless of everything that negatively impacts profits


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Industry Week Jan 25, 2006 Webinar

50%

75-80%

60%

50%

50%


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-Identify and eliminate waste-Reduce costs-Improve quality-Generate new profit-Improve delivery & customer satisfaction-Empower employees to make improvements


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Names - Lean

Toyota Production System

TPS (Thinking People System)

Just-in-time

Continuous Improvement

World Class Manufacturing

Stockless Production

Demand Flow

Waste Elimination


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Value Add

1. Does this task add a form or feature to the product or service?

2. Would the customer be willing to pay extra or prefer us overthe competition if he/she knew we were doing this task?

3. Done right the first time.

---------------------------------

4. Does the task enable a competitive advantage

(reduced price, faster delivery, fewer defects)


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3 Categories relating to Value Add

1) Value Added

2) Non Value Add, but required

3) Non Value Add Waste


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History of Lean


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Henry Ford integrated entire production process

Michigan 1913flow production

Limitation very limited variety


Revised Fords ideas for production flow + variety


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Henry Ford integrated entire production process

Michigan 1913flow production

Limitation very limited variety


Revised Fords ideas for production flow + variety


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Toyota Production SystemToyoda family

Kiichiro Toyoda - 1894 1952, the son of Sakichi,- greater interest in engines than looms- father encouraged him in auto industry- created the Toyota Motor Corp.- studied Ford for 1 year in U.S. 1936 (JIT)

- Resigned in 1948
http://images.google.com/imgres?imgurl=http://www.toyota.eu/Images/kiichiro_toyoda_tcm280-197783_tcm416-399895.jpg&imgrefurl=http://www.toyota.eu/02_About_Us/02_toyota_history/01_opening_world.aspx&h=198&w=188&sz=8&hl=en&start=7&tbnid=-ffbhZrVmlYh8M:&tbnh=104&tbnw=99&prev=/images%3Fq%3D%252B%2522Kiichiro%2BToyoda%2522%26svnum%3D10%26hl%3Den%26sa%3DN


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Toyota Production SystemToyoda family

Eiji Toyoda, 1913 - a nephew of Sakichi Toyoda & cousin of Kiichiro- joinedautomotive company in 1936- when Kiichiro resigned Eiji became head of Toyota- responsible for bringing Toyota to profitabilityand world wide prominence

- resigned in 1994

Kiichiro Eiji


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Eiji Toyoda visited Fords plant at Dearborn, Michigan during the early 1950s.

Toyota had been in the business of the manufacture of cars for 13 yearsand had only produced just over 2,500 automobiles.

The Ford plant in contrast manufactured 8,000 vehicles a day.Toyoda decided to adopt US automobile mass production methods.
http://www.explore-cars.com/motor_vehicles/F/Ford_Motor_Company.htmlhttp://www.explore-places.com/michigan/D/Dearborn%2C_Michigan.htmlhttp://www.explore-history.com/history/1/1950.htmlhttp://www.explore-history.com/history/1/1950.htmlhttp://www.explore-places.com/michigan/D/Dearborn%2C_Michigan.htmlhttp://www.explore-cars.com/motor_vehicles/F/Ford_Motor_Company.html


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Assembly Manager

Toyota, 1940/50sVerging on bankruptcy

Credited Ford & SupermarketsCreator of TPS

Father of Kanban

1975 Ex VP ToyotaRetired 1980s

Died 1990

Taiichi Ohno Shigeo Shingo

Quality consultanthired by Toyota

SMED

Shingo Prize Model

Died 1990

Has any of your companies won the Shingo Prize?


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Shingo Prize

Shingo Prize for Excellence in Lean Manufacturing 1988

2 Categories

1. Business - large or small businesses, U.S., Canada, MexicoDemonstrate excellence in manufacturing practices which translateinto excellent customer satisfaction and business results world class

2. ResearchPromote new knowledge and understanding of manufacturing andbusiness improvement methods, systems, and processes

Shigeo Shingo

Business Week refers to Shingo Prize as the Nobel Prize of Manufacturing

www.shingoprize.org


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Edward Deming, 1900 -1993

1950s taught Japanese managers that improvingquality will reduce expenses while increasingproductivity and market share

Cost & quality
http://en.wikipedia.org/wiki/Qualityhttp://en.wikipedia.org/wiki/Productivity_%28economics%29http://images.google.com/imgres?imgurl=http://www.balancedscorecard.org/images/Deming.jpg&imgrefurl=http://www.balancedscorecard.org/bkgd/bkgd.html&h=327&w=265&sz=8&hl=en&start=4&tbnid=8qsK162FpTzzxM:&tbnh=118&tbnw=96&prev=/images%3Fq%3D%252Bdeming%26svnum%3D10%26hl%3Den%26sa%3DNhttp://en.wikipedia.org/wiki/Productivity_%28economics%29http://en.wikipedia.org/wiki/Quality


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TPSOperational Excellence

5S

Visual

Control Kanban

SMED TPM

ProductionPreparation

Process - 3p

Creative Idea Suggestion System

Jidoka

Quality built inPoka yoke5 Whys

KaizenStandard

WorkHeijunka

Stabilized leveled production

Just in Time

Takt time 1-piece flow Pull

House represents stability


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Lean Elements

Kaizen: Continuous Improvement

QRM: Quick Response Manufacturing

3Ps: Production Preparation Process

5 Whys: Get to root cause

6Ms: Manpower, Machinery, Material, Method, Metrics,Management (Mother Nature)

MES : Manufacturing Execution System


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Defects

Overproduction

Waiting

Non-utilized talent

Transportation

I nventory

Motion

Extra processing

The 7/8 Types of Waste


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Defects

Overproduction

Waiting

Non-utilized talent

Transportation

I nventory

Motion

Extra processing

The Eight Types of Waste

When solve overproduction use assets for faster customer orders


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Defectsnot done to specs the first time, scrap

Overproduction ahead of demand

Waiting idle operators (inactivity)

Non-utilized talentnot using employee knowledge

Transportationunnecessary movement

I nventory- excess, requires space

Motionergonomically unsound, poor layout

Extra processing more effort than is required,difficult to see and uncover

The Eight Types of Waste

Work

People


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Motion in Service

Searching for computer files on your desktop

Searching for paper files

Hand carrying paper work to another process


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Inventory

Files awaiting task completion

Purchasing excessive office supplies

Obsolete files

Obsolete office equipment

d h d ll l d


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Station 1

Station 3

Station 5

Station 2

Station 4

Ideal layout the line for continuous flow (U shaped or C-shaped)

IN(raw materials)

OUT (finished goods)

Reduce to 3 operators in U-shaped cell less wasted motion


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Takt German word for musical meter

Came to Japan in the 1930s when the Japanese werelearning aircraft production from GermanAerospace engineers

Pronouncetact


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Takt time =Work time available/time period

Customer demand/time period

GoalProduce to demandTakt time

Dont skip calculating takt time always determine a viable takt time


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Customer demand 480 spark plugs/dayProduction line operates 960 minutes/day

Takt time =960 minutes/day

480 spark plugs/day

Takt time is 2 minutes

The company will need to make a spark plug every 2minutes to match customer demand.


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Takt time =Work time available/time

Customer demand/time

Example

Customers want 2 new contracts written /month


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Takt time =Work time available/month

Customer demand/month

Customers want 2 new contracts written /month

Takt time =1 month

2/month

Takt time is 2 weeks (twice a month) or .5 or or every 15 days


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Takt time =Work time available/day

Customer demand/day

Example:

Customer requested 360 products per dayOur company has one 8-hour shift

There is a 30 min lunch & two 15-minute breaksout of the 8 hour shift

What is total work time available per day?


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Takt time =Work time available/day

Customer demand/day

Example:

Customer requested 360 products per dayOur company has one 8-hour shiftThere is a 30 min lunch & two 15-minute breaks out of the

8 hour shift

What is total work time available per day?

8 hrs * 60 min = 480 min

480 min 30 min lunch - 30 min breaks = 420 min

What is takt time?


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ValueStream

Mapping

Famous saying, If you dont know where you are going, any road will get you there.Creating the value stream map is 1st key step to determine where you are going in Lean


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Pacemaker sets the pace

A step in our value stream where we can prevent overproduction

Every activity upstream from the pacemaker produces to a precisereplenishment signal from the next downstream process

Processing downstream from the pacemaker occurs in continuousflow

Control production atthis point

Pacemaker

Pacemaker is most downstream continuous flow process (usually final assembly)


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Pacemaker sets the pace

A step in our value stream where we can prevent overproduction

Every activity upstream from the pacemaker produces to a precisereplenishment signal from the next downstream process

Processing downstream from the pacemaker occurs in continuousflow

Control production atthis point

Pacemaker

What is the difference between a pacemaker and a bottleneck?


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Pacemaker

Pacemaker set the pace

Bottleneck constrains downstream processesdue to lack of capacity


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Pitch

Amount of work released at the pacemaker

takt time * pack out quantity = Pitch

1 product produced/per minute

Takt time

Shipping pack - 12

products/packing

What is the pitch?

Pacemaker


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Pitch increment

Amount of time - pacemaker

takt time * pack out quantity = Pitch

1 product produced/per minute

Takt time

Shipping pack - 12

products/packing

12 * 1 = 12 minutes

Pacemaker

Every 12 minutes pacemaker gives instructions to produce 1 pack


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FIFO

First in first out

FISH

First in Still Here


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Process Cycle Efficiency

Process Cycle Efficiency =

Value-add time

Total lead time

(PCE)

PCE < 10% indicates the process has a lot ofnon-value add waste


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Value Stream

The actions currently required to bring a product orservice to the customer

Suppliers Company Customer


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Value Stream Mapping 2 Maps


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Value Stream Mapping - 2 Maps

Current StateAs is Future State


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TopInformation flow

LowerMaterial or service flow

Important to see linkage between information and product/service flow


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Value Stream Mapping - Advantages


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Value Stream Mapping Advantages

1. See big picture complete flow

2. Identify SOURCE (root cause) of waste

3. Very effective in providing focus & motivation

4. COMMUNICATION

5. Blueprint for ideas

6. Change management tool

Any other advantages? Diane Johnson, 2005


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Value Stream Mapping - Limitations


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Value Stream Mapping Limitations

1. Over-hyped not a silver bullet

2. Value stream mapping analyzesthe physical system, not the people side

Caution:


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Caution:

Companies are complex socio-technicalsystems that require an integrated approach

Lean requires teamwork to succeed


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L t B i


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Lets Begin.

Step 1a Select the product of service that you want to map & improve

Wherever there is a product or a service for a customerthere is a value stream.

The challenge lies in seeing it.

Product or service family discussion

Examples of the product or service to map


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p p p

Tire

Patient

Letter

Insurance form

Staple ourselves to the product/service & record what happens as it travels

Red dot


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Step 2 Select your team (7-8)Educate and train them

Have line managers lead the team, so it sends a message

that value stream mapping is a key skill for line managers

At least 2-3 experienced with the product or service steps1 support1 customer or next function1 supplier

What is your recommendation regarding management involvement?


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Goal of walk thru


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Goal of walk thru

Path of one product or service

Simply identify and capture a complex situation

so we can improve it


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Step 3 The team does a walk thru The team needs

a) Pencil & paper (eraser)

b) Stop watch

c) Comfortable shoes

Resist temptation to use computer initially, the point is NOT the map, but the stream


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Software for Value Stream Mapping

iGrafx

eVSMTM

Lean-Modeler

Visio

Favorites

You can create a GREAT map, but follow-through is more important

Walk Thru


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Walk Thru

DO NOT divide the value stream into segments andassign segments to subsets of the group

The whole team should walk the entire system

Otherwise, no one will understandthe whole stream

Walk Thru Start at the end


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Walk Thru Start at the end

Go to the end of the gemba (the production floor, thehospital floor, the call center)

When you find the point where your product

or service is shipped to the customer,

Start mapping backwards

Walk Thru


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Walk Thru

Personally follow the a) material flow and b) information flow

Keep good notes describing the processAs Is (Reality)

Record each step, talking with everyone involved

Production or Service Flow

Information

Material


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Questions to ask:

1) Does product or service provide the value required by thecustomer, or is it what the company wants to produce?

Improving efficiency wont help if the product offering is off target

2) At each step, ask (as the customer)Am I willing to pay for this?

No customer wants to pay for storage, transportation, reworkThe majority of effort in the value stream is waste


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Questions to ask:

3) Determine what percentage is value added

Value Add What the customer is willing to pay forSteps that transform the product or service


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Questions to ask on walk thru:

4) Can the customer pull this product or service

Can the customer get just what they want, when they want itwithout your company maintaining a large inventory for just in case

Taiichi Ohno (TPS) famous quote the more inventory you have on hand, theless likelyyou are to

have the one item your customer actually wants.


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7) Are we seeing inventory in queues waiting


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Station Work

Minutes

Inspection

MinutesDelay

Minutes

Walking

Minutes

Other

Minutes

NOTES

1 15 5 7 5 0

2 20 5 10 10 7

3 15 5 5 5 5

4 25 5 0 15 20 Partmissing

5 20 10 5 10 5

TOTAL 95 30 27 45 37

Team needs to reduce Non value Add = Muda = Red


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Value Stream Mapping Practical steps


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Next compare and build a more accurate map

Use post-it notes for the consensus version, so can easilyrearrange

Value Stream Mapping Practical steps


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Review the map with all employees who work in the VSM


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Supermarket Looks like check out lanes in a supermarket


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1) Customer demand varies widely2) Product is small & cheap to store

Supermarket is not a stagnant inventory, which would be a triangle.It is controlled by customer pull. When the customer pullsone, message sent upstream to replace it.

Prevents over production

= Stagnant inventory


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Shipping


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Shipping

Customer

Demand25 per day

Finished goodsSupermarket


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Cycle time = 5 min or 300 seconds


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Cycle time - time required to complete one cycle of an operation

The time it takes an operator to complete the work elements before repeating themwith another product or service

C/T = 5 min or 300 seconds

Typically in VSM use seconds as time unit tomake the VSM more usableWhich is easier 1.25 minutes or 75 seconds?


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Changeover time = 20 minutes Final Test


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Other products are also tested in the last Quality Check pointA 20 minute changeover is required to test other products

C/O = 20


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First pass yield = 99% Final Test


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The product passes the test 99% of the time FPY=99%

First Pass Yield = FPY

First Time Thru = FTT

Customer


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ShippingFinal Test

C/T = 300

C/0 = 20UT = 95%

FPY = 99%Data box

Operator

25 per day


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Customer


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ShippingFinal Test

C/T = 300

C/0 = 20UT = 95%

FPY = 99%

25 per day

AssemblyCut

C/T = 360

C/0 = 0UT = 95%

FPY = 98%

C/T = 600

C/0 = 10UT = 95%

FPY = 98%

6 min 10 min 5 min

2Days .5Day .5Day .5Day

Value Add

Non valueAdd Total Lead Time

3.5 Days

Processing Time21 min


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Process Cycle Efficiency


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Process Cycle Efficiency =

Value-add time

Total lead time

(PCE)

PCE < 10% indicates the process has a lot ofnon-value add waste

Process Cycle Efficiencies


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Application Typical

PCE

World Class

PCE

Continuous

Manufacturing5% 30%

Service 10% 50%

Lean process is over 20% PCE


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CustomerS liProduction

10-dayforecast

Monthlyforecast


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Shipping

Cut

C/T = 400

C/0 = 10UT = 97%FPY = 98%

C/T = 360

C/0 = 0UT = 97%FPY = 98%

6 min 10 min

4 hours 1hour 1 hour

Response to Takt time

CustomerSupplier

Assembly

Control(MRP)

Weekly Schedule

Dailyorder

Future State

Kanban


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Treated

Health Insurance Claim ProcessingDoctor

Hospital

Insurance


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Treatedpatient

Billings toIns Co.

ReceiptVerifyClaim

Calculatepayment

Print &Mail check

2 min 2 days 10 min2 days

1 min2 days

1 min

6 days

14 min

InsuranceCompany

Database

Value Stream Manager


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Who is in charge of the value stream of the product/service?

Value streams typically extend across organizational boundaries

How many organizations have?

Value Stream Manager Definition


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Person responsible for.

a) increasing the ratio of Value Add to Non-Value

b) Eliminating waste in the full chainc) Ensure meeting or exceeding customer requirementsd) Creating a value stream map current & futuree) Create & implement plan to achieve future statef) Lead change, reports to top persong) Responsible for cost, quality and delivery

Without VSM you will see isolated pockets of improvement


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Product Family


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Definition of Product family Group of products that passthrough similar processing steps & common equipment

Product Family VSM 1 family


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Downstream Steps and Equipment

1 2 3 4 5 6 7

A X X X X

B X X X X X

C X X X X

D X X X X X

E X X X X X

F X X X X X

G X X X X X X

H X X X X X X

P

roducts

Custom

er


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Product Family


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1 2 3 4 5 6 7

A X X X X

B X X X X X

C X X X

D X X X X X

E X X X X

F X X X X X

G X X X X X X

H X X X X X

P

roducts

Identify common steps (shared processes)

May find some surprises products thought totally different similar steps


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Pull vs. Push


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Traditional company push processproduce according to a schedule or planProduct or service created regardless of demandCreates an environment of Muda


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Value Stream Manager


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Who is in charge of the value stream of the product/service?

Value streams typically extend across organizational boundaries

How many organizations have?

Value Stream Manager Definition


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Person responsible for.

a) increasing the ratio of Value Add to Non-Value

b) Eliminating waste in the full chainc) Ensure meeting or exceeding customer requirementsd) Creating a value stream map current & futuree) Create & implement plan to achieve future statef) Lead change, reports to top persong) Responsible for cost, quality and delivery

Without VSM you will see isolated pockets of improvement


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Product Family


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We need to draw a Value Stream Map for every productor service

In some companies very simple

Few products or services

But, some of you may havehundreds of thousands

Product Family


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Definition of Product family Group of products that passthrough similar processing steps & common equipment

Product Family VSM 1 family


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1 2 3 4 5 6 7

A X X X X

B X X X X X

C X X X X

D X X X X X

E X X X X X

F X X X X X

G X X X X X X

H X X X X X X

P

roducts

Custom

er

f

Downstream steps closest to the customer most important to determine product familyProducts become differentiated to customer requirements in downstream stepsUpstream processes serve multiple product lines


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1 2 3 4 5* 6* 7*

A

B

C

D

E

F

G

H

P

roducts

Custom

er

Work backwards from the customer

Product Family


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1 2 3 4 5 6 7

A X X X X

B X X X X X

C X X X

D X X X X X

E X X X X

F X X X X X

G X X X X X X

H X X X X X

P

roducts

Identify common steps (shared processes)

May find some surprises products thought totally different similar steps

Dont get bogged down in discussion on product families


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Keep it simple, set a time limit on the discussion

Creating a product family matrix creates no value for thecustomer until we enhance the VSM


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Poka Yoke Japanese term


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Poka - inadvertent errors

Yokeruavoid

Translation - Mistake proofing

Poka Yoke Japanese term


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Originallybaka yokein Japan

(providing protection from crazy or foolish people)

Shigeo Shingo at Toyota


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Assembly requires two springs Worker counts out 2

springs and places in a container - before

If one spring remains in the container when the assembly iscomplete, the operator can correct immediately

Cost of counting out 2 springs is minimal

Corrective action

Self checkvs. successive checks by next process Self checkalways preferred


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Who should develop poka yoke ideas?


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Who should develop poka yoke ideas?

Everyone ..This concept utilizes

empowerment of all employees

Poka-Yoke / Mistake-Proofing


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Guide pins manufacturing

Poka-Yoke / Mistake-Proofing


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Counters

Drill counter 6


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Services - Library


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Prevent removal of booksthat have not been checked out

Sensor and scanner

JetwaySwitch in the jetway which stops it an


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j y pinch away from the planes fuselage

Garage Doors


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Two safety features that prevent people or pets from being injured

(1) a contact safety reverse feature - opens door if touches a person or object,(2) an infrared beam across doorway - door reverse automatically

if a person or pet pass through the beam


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Touch screen register


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Ringing up sales in a fast food restaurant

Servers simply press buttons

Computer tracks price lists

Mistake-proofing device to insure that the ignition keyis in the on position before allowing the driver to shift out of park.The keys cannot be removed until the car is in park


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The keys cannot be removed until the car is in park


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Service Sector


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Queue lines Motor Vehicle Registration everyone served fairly

Drivers License

Highlight keyareas where
http://www.signaworks.com/andon-led/PPT.html


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areas whereerrors occur

Poka Yoke

Poka Yoke for Surgery

Mark which arm is having surgery


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Sources of Human Error

Lack of knowledge, skills


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g ,

Subconscious actions forget

Conscious actions mistakes

Sensory overload increases chance for error

Physical difficulty exhaustion

Distractions external (noises) & internal (daydreaming)

Loss of memory Drugs, alcohol, fatigue

Loss of emotional control fear, anger


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Visual Management


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Environment where it is easy for everyone to'see' the current status of the process or 'system'and the visual gives immediate information to theindividuals to understand 'how the operation is doing

Dont have to ask questionsObvious

Visual Examples
http://www.signaworks.com/andon-led/PPT.html


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Displays information and data

Production throughput

Controls control or guide

Workplace safety

Color codes prevent mistakes

Shadow board


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Caution!!!

Hard Hat Area

Audio Signals


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Sound warnings before machine starts

Visual Workplace

Andon Board lighted overhead display


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g p y

Gives status of production system

Alerts team to emerging problems

Example for service?

What is 5S + 1
http://www.signaworks.com/andon-led/ANN.html


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5 S - Method of creating a clean and orderly workplace thatexposes waste and errors

Elements of a 5S program Sort Straighten/Store (Set in order)

Shine Standardize Sustain/Self Discipline Safety (+1)

1. SORTEliminate/remove everything not required for the current work,keeping only the bare essentials. The better you do, the less of the rest


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2. STRAIGHTENArrange items in a way that they are easily visible and accessible.

3. SHINEClean everything and find ways to keep it clean.Examine equipment

4. STANDARDIZECreate rules by which the first 3 Ss are maintained. Good for training

5. SUSTAIN

Keep 5S activities from unraveling commitment/self discipline

6. Safety

Order is important


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5 S

Take Befo e and Afte pict es


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Take Before and After pictures


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Red Tag

Train employees


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Train employees

Create red tag area (with dates)

Label all unnecessary items with a red tag

Sell or discard red tagged items regularly


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5 S +1


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Typical to start with 5 S +1 in manufacturing

Dont start with 5 S + 1 in service not enough return

5 S +1 - Benefits

Improves Quality


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Decreases Cost

Increases safety

Improves the customer experience

Everyone can participate

Waste is made visible

Easier for employees to get the job done right

5S implementation

1 Organize the program committee for 5S


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1 Organize the program committee for 5S

2 Develop a plan for each S

3 Publicize the program

4 Provide training and education to employees

5 Select a day when everyone is involved

6 Evaluate the results

7 Take corrective action


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Set up reduction


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Quick changeover

SMED

Increasing diversity of products and services,smaller batch size, lower WIP inventory

Need more set ups or changeovers

Changing Tire


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Changing a tire typically takesbetween 10-20 minutes

Changing Tire


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Pit crew can change 4 tiresin a few seconds during anauto race

-They are prepared-They have right tools-Tires only have one bolt-Continuous training

They are in fierce competition, Are we?????


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Changeover Set up reduction


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Call center staff changeover between shifts

Changeover Set up reduction


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Hospital staffing new shift


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Single Minute Exchange of Dies(SMED)


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1. Videotape entire setup operation (every detail)

2. Ask personnel to talk about what they do

3. Study the time and motions involved in each step

Simple camcorder and tripod - Okay

Steven Spielberg not necessary

Single Minute Exchange of Dies(SMED)


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4. Each detail is listed5. Each detail assigned to 1 of 4 categories

A. Eliminate is it necessary

B. Externalize do it before or after changeoverC. Simplify tire one bolt (bolts are enemies)D. No change

6. Develop action plan & assign responsibility

7. New SOP & maintain standards


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P (Preparation)

Define your activities in Changeover

E Eliminate step


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External to Changeover Internal to

Changeover

External to Changeover

R (Replacement)

L (Locating)

A (Adjusting)

M Move

C Convert

R Reduce

O - Orchestrate


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WIP


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Name some WIP in service


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Lead time


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Product/Serviceprovided

Customerorder

Lead-time

Total time to complete tasks in a process

Ring to ring Shorten lead time by removing waste

Business as usualWaste


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Lean


Customerorder

Lead-time

Lead-time (shorter)

Product/Service

provided

Customer

orderWaste


Can respondquicker tochanges in

customer demandGreater agility

Too much WIP lengthens Lead time

Lead time & WIP


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Lean


Customerorder

Lead-time

Lead-time (shorter)

Product/Service

provided

Customer

order


If control WIPShorten lead time

ProcessLead time

False assumption


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Lead time

Pushing excess work into process clogs the process & dramatically increases lead time

Correct

Speed up the process by reducing WIP

ProcessLead time


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Counterintuitive


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We speed up process time by controlling and

usually slowing the release of workinto the process


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Littles Law (Mathematician)

Amount of Work-in-Process


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Lead time =Average Completion Rate

Customer wants 3-day turnaround on ordersWe can produce 50 products or services per day

How much WIP can we have? 150 products or services

3 days =X

50/day

= 150 = WIP


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Miss customer requirement of 3 days

4 days =X

50/day

200 = WIP


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Customer wants 5-day turnaround on ordersWe have 10 products or service in the queue (WIP)

Average completion rate? 2 products or services/ day

5 days =10

x

= 2 = x


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10 days =50

5/day

We cannot meet our customer requirement of4 days




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10 days =50

5/day

Change to 20 products or services in processWe can meet customers need

4 days =20

5/day


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Goal in lean is to have a process make only what the next processneeds, when it needs it


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We are trying to link all processes from the customer back toraw materials in a smooth flowwith

-the shortest lead time-the highest quality

-the lowest cost.


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Continuous Flow

Each process (in the office or plant setting) makes or completesonly the one piece that the next process needs,


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and the batch size is one

Each item is passed immediately from one process step to thenext without any stagnation

No inventory, no waste

Other names for continuous flow?

Continuous Flow


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One piece flow

Single piece flow

Make one, move one

Other names for continuous flow?

Batch Processing


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ProcessA

ProcessB

ProcessC

10 minutes 10 minutes 10 minutes

Lead time 30 min for total order, 21 minutes for 1st piece

Batch Processing

ProcessA

ProcessB

ProcessC


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Continuous Flow Processing

10 minutes 10 minutes 10 minutes

Lead time 30 min for total order, 21 minutes for 1st piece

12 min for total, 3 min for 1st piece

AB

C

A B C


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Benefits of One piece processing or one piece flow

#1 Reduces Work in Process (WIP) & Lead time


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Lead-time (shorter)

Product/Service

provided

Customer

orderLead time


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Benefit of One piece processing or one piece flow

# 3 Improves quality every worker is an inspector, each

i i l k d t


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piece is looked at

Benefits of one piece processing or one piece flow

# 4 Improves business flexibility respond to last minutechanges in customers order


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#5 Improves safety - moving large pallets not necessaryreduce forklift accidents (20,000 serious injuries/yr)


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# 6 Improves morale cross training, team work, authorityto stop a line, find solution rather than blame


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Culture shifts from one of finding blame tofinding solution T ogether

E veryone

A chieves

M more

W

O

R

K


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Impact of Standardized Work


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Many companies report that Standardized Work

is the Lean initiative that had the biggest impact

To produce better quality products & servicesTo make the work flow smootherTo make the training process more productiveTo allow employees to see waste

Standard work is everywhere


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What is standard work for a chef?



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What is standard work for a chef?

Recipe



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What is standard work for a coach?



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What is standard work for a coach?

Play book

Need to standardize

Many manufacturers point to individual variability


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Many manufacturers point to individual variability as the leading factorin.

a) production time issues

b) injuries

Standard Work (also called Standardized Work)is one of the most important building blocks of a Lean Enterprise

Standard Work ---the most effective combination of

manpower, material, and machinery - foundation of daily improvement.


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manpower, material, and machinery foundation of daily improvement.

By creating a repeatable process with defined steps, times, and layout,- lower cost and higher quality is guaranteed

Standardized Work


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Creates clarity in the workplace

Clearly define each stepClearly defines responsibility

Clearly defines tools/information to use

Companies using their Intranet to share procedures, diagrams, photos


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Standard

Best way of doing things


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You examine the way the person with the highestskill does something & document that process for others

Standard workMost successful standards have 1) drawings, illustrations, pictures toillustrate the sequence of tasks, 2) created with worker participation


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Step 1

Step 2

Standard work depends on the close examination of.

Ergonomic and safety issues


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Ergonomic and safety issuesQuality issuesProductivityCost benefits

Standards at Toyota

Unit of excellence that employees should strive for part of daily operations

Very simple documents that can be used during a process that


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Very simple documents that can be used during a process thatcan be added to with employee ideas (dynamic)

Toyota has a standard on

-how to greet people visiting the company-how to answer the phone-how to process an invoice

Standards at Toyota

At Toyota there are two things that are part of everyone's job.


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oyo a e e a e o gs a a e pa o e e yo e s jo

1) follow Standard Work

2) find a better way to do your job


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Buffer inventory

Goods held to deal with variation in customer demand


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Sometimes called safety stock

Buffer stock protect customer if change in demand

Safety stock protect company from problems in process

Kanban (Kn bn) Kanban is a communication system for controlling production or

withdrawal (instruction card)


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Uses cards or tickets as

visual signals to trigger

the flow of materials

Prevents worst waste.

Kanban (Kn bn)

Product & supplies are only orderedWh h K b d d


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Product & supplies are only orderedWhen the Kanban card says to do so

NOT to production schedule

Only when the card is pulled

Kanban icons

Kanb

an postTells an upstream process the

type & quantity to make


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ProductionKanban

Signal

Kanban

Withdrawal

Kanban

Trigger production when aminimum quantity is reached

Also called triangle kanban

Number of parts to beremoved and supplied

downstream

Kanban

Foundation of the Pull system


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Kanban Japanese word for visible card or record

Developed by Taiichi Ohno at Toyota

Ensures each process only produces the amount of product thatwill be actually used in the next step

Ideally, the quantity authorized by kanban in minimal - ideally one

Kanban-Card stock in vinyl envelopes (may use bar code)-Metal plates-Colored balls


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Colored balls-Electronic signals

Cards move with the goods

Kanban

Part name


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Part namePart numberExternal supplierInternal supplying process

Pack-out quantityStorage addressConsuming process address

Office Kanban


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Office supplies are kanbaned to reduce transport and motion

You would say that the kanban method is mostclosely associate with

A. The elimination of non-value added activities


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B. The development of a value stream map

C. Making problems visible in the process

D. The control of material flow

CustomerSupplierProduction

Control(MRP)

Weekly Schedule

10-dayforecast

Dailyorder

Monthlyforecast

Kanban


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Shipping

Cut

C/T = 600

C/0 = 10UT = 100%FPY = 98%

C/T = 360

C/0 = 0UT = 99%FPY = 98%

6 min 10 min

4 hours 1hour 1 hour

Assembly

y

Water Spider or Runner

Move along the surface of water dedicated material handler


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Delivers parts to various cells within the value streamThe runner (water spider) allows the line to run at the planned pace

Water Spider or Runner Attributes

Can do much more than deliver materials


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Circulates between operationsDesignated/standard routePicks up kanbans, tooling, components, finished productsDelivers to appropriate placeReports problems immediately

Water Spider or Runner Attributes

1) Trained in lean production

2) Good communicator reports abnormalities3) U d t d it h & t kt ti


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3) Understands pitch & takt time4) Efficient and precise5) Proactive problem solving

Operator Cycle Time (Current)

60

55

50

TAKT

TIME60 sec


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Sub-Assembly.

50

45

40

35

3025

20

15

10

5

0

1

Asse

mbly

2 3 4Operators

W

elding

60 sec.

Operator Cycle Time (Future)

60

55

50

TAKT

TIME60 sec

y


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50

45

40

35

3025

20

15

10

5

0

1

Assembly

2 3 4Operators

W

elding

60 sec.

Sub-Assembly

Ass

TAKT

TIME45

Balancing in the Service Sector605550

4540


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45min.

403530

252015105

0Pull custrecord

Creditreport

Createquote

Quote &customer

Updaterecord

TAKT

TIME45

Balancing in the Service Sector605550

4540

Reallocate and evenly balance work load

under takt time


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45min.

403530

252015105

0

Utilize people in other value stream areas


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Theory of Constraints


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Profit improvement

Every organization has at least one constraintlimits profit potential

Manufacturing, sales, service


Who is often associated with the

Theory of Constraints?


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A. Toyota

B. Womack

C. Ohno

D. Goldratt

BookThe Goal


Business linked set of processes that transforminputs into sales

O l t


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Only as strong aits weakest link

Goldratt process to strengthen the weakest link


Focus on the weakest linkin a process or bottleneck

Often the constraint is the slowest part of the process


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Make flow through bottleneck equal to market demand


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Capacity Capacity Capacity


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Constraints



1 Identify (can be policy)


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1. Identify (can be policy)

2. Exploit the rate of the constraint

3. Subordinate (adjust) other steps tomatch rate

4. If necessary, elevate

revision of constraint

5. Repeat these steps with

a new constraint

Exploit get as much use out of as possible (help it operate at its potential)


Three measurements that drive change, or

Increase profit through TOC


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1. Throughput

2. Inventory

3. Operating Expense

Focus on all 3



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1. Throughput

All the $ coming into the company

Rate of sales



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2. Inventory

$ tied up in the company

facilities, equipment, raw materials,work in process, finished goods

Inventory many costs

Capital tied up in inventoryLoss of interest on that capital


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pLoss due to material handling damageIncreased labor costs for material handlingIncreased space and storage



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$ spent turning Inventory into Throughput

Money going out of the company

Direct labor, supplies, depreciation of assets


Focus on all three


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1. Throughput

2. Inventory


interrelated

If we change one, it will change the one or more of the others

Maximize Throughput *

Sales


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while

Minimizing Inventory& Operating Expenses

$

What is the greatest limit on Throughput?

Maximize Throughput

Sales


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While

Minimizing Inventory& Operating Expenses

What is the limit on Throughput? Customer pull/market size

$

Squad of soldiers marching single file


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Goldratts analogy - troop

Lead time

If each soldier moves as quickly as possible, the lead time lengthens



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Lead time

Slower soldier falls behind holding up others behindSystem constraint is the slowest soldier



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This soldier sets the drum beat for the entire squad

Pacemaker



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Connect the lead to the slowest constraintThe process has been slowed down to the

rate of the constraint, subordinate/adjustAdjusted the rate of the process to the slowest link

Goal of Theory of Constraints

If we can change and enhance the most criticalorganizational processes the company will


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organizational processes, the company willsee tremendous benefits.

In the theory of constraints, the subordinate step refers to

A. A listing of sub-processes

B R d i h f


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B. Reducing the rate for some processes

C. The portion of the process flow chart that depends

on the main flow

D. The less important product or service stream

E. None of the above

Question from The Certified Six Sigma Black Belt

Six Sigma Lean TOC

Theory Reduce variation Elliminatewaste

Manage

constraints

Approach 1. Define2. Measure

3. Analyze

4. Improve

1. Identify value

2. Value stream

3. Flow

4. Pull

1. ID constraint

2. Exploit

3. Subordinate

4. Elevate


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5. Control 5. Perfection 5. Repeat

Focus Problem focus Flow focus Constraint

Effect Uniform quality Reduced flow time Throughput

Criticisms ProcessesImproved

Independently

No system focus

Data analysis

not valued

Minimal input fromemployees

All structured problem solving

Which to choose?Culture eats strategy for Breakfast

If your organization values analytical data. Willing to

invest in structure tosupport quality

Six Sigma


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If your organization values visual change and want quickresults

Lean

If your organization values a systems approach.Management driven - not as participative

Theory of

constraints


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TPM Total Productive Maintenance

Team based activity

i i


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Continuous improvement

Who is on this TPM team in a manufacturing setting?


Team based activity

d i i


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Production engineersMaintenance staffLine foreman

Operators

Who is on this TPM team in a manufacturing setting


3 GOALS

-Maximize OEE-System of comprehensive maintenanceI l d t t th t l d i t i i t


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-Involve departments that plan, use and maintain equipment

History of TPM

Nippondenso, first company to introduce plant wide

preventive maintenance in 1960


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As Nippondenso became more automated, needed more andmore maintenance workers

Management decided routine maintenance operators

Autonomous maintenance - TPM

Operators had freedom to act independently


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Operators Maintenance

This separation is found in many companies


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Operators Maintenance

TPMMindset of Operator runs, Maintenance fixes is gone

History of TPM

Preventive maintenance grew to productive maintenance

Nippondenso awarded prize for developing TPM


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Nippondenso 1st company to obtain TPM certification

Maintenance policies

1. Corrective/reactive wait until failure **

2. Preventive regular maintenance attention


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3. Predictive study and assess timeline for equipment attention

4. Maintenance Prevention Improve design to eliminate

maintenance

** eliminate

TPM medical science of machines


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Also service sector!

TPM


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1. PC Cleaning and Inspection workshops2. Inventory of hardware and software3. Areas of high dust, given keyboard covers

4. Preventative maintenance schedule5. Post computer inspection guidelines in all work areas6. Email PC users schedule of maintenance tasks7. Routine defragmentation

TPM Total Productive MaintenancePreventative health care for machines


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Medical Science of Machines


Structured approach to ensure every piece ofequipment is always able to perform required tasksso production is not interrupted


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so production is not interrupted

Implement per machine 2 hoursImplement Company wide 1 to 2 years

OEE Overall Equipment Effectiveness

Metric measures 3 aspects of equipment performance

1 Availability


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1. Availability

2. Performance Efficiency

3. Quality rate


Measure of how well your companys capital assets are used


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Track the following 7 types of equipment loss

1) Downtime due to machine breakdown


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2) Time required for setup and adjustment

3) Time or cycles lost to inefficient setup

4) Time or cycles lost to tooling

5) Time or cycles lost to work stoppages

6) Operating at less-than-ideal speeds

7) Producing defective products/rework/repair

Wh t i b h k f OEE?


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What is our benchmark for OEE?



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85% for each piece of equipment

Why dont we target 100%


100% leaves no time for .


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a) planned maintenance

b) running slower or less to avoid overproduction

c) To synchronize with other pieces of equipment

OEE = equipment availability * performance efficiency * quality


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OEE equipment availability performance efficiency quality

OEE = A * PE * Q


Net available time minusall other downtime such

as breakdowns, setuptime, and maintenance


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Equipment availability =

Operating time

Net available time

Total scheduled time minuscontractually required downtime

such as paid lunches and breaks


All parts produced

regardless of quality

a) Normal cycle timeb) Best cycle time achieved

c) Estimate from similarprocess


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Performance efficiency =

Total parts run * ideal cycle time

Operating time

Calculated previously4650 minutes


Number of rejected, reworks,or scrapped

85% * 89.9%


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Quality =Total parts run total defects

Total parts run



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84.5% * 89.9% * 96.5%

OEE = 73.3%

Do not compare OEE results for non-identical machines or processes

Compare with the same machine at different times


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Heijunka(hey June kah)


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Level or balance the type (variety) and quantity (volume)of production over a fixed period of time

Cross functional team use if variation in customer demand

Heijunka


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Converts even uneven Customer Pull into even predictable& stable manufacturing

Levels both volume and product mix

Highly variable production schedules - stressful

Production Leveling

Week Demand

1 4500

2 3500

3 4600

4 4200

Week 4-weekleveling

1 4,200

2 4,200

3 4,200

4 4,200

16,800 / 4 = 4,200


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5 3500

6 4800

7 3300

8 4000

9 3900

10 4800

11 4200

12 4700

5 3,900

6 3,900

7 3,900

8 3,900

9 4,400

10 4,400

11 4,400

12 4,400

15,600 / 4 = 3,900

17,600 / 4 = 4,400

Look for patterns of demand

Pure Lean(JIT)

ProductionLeveling

Produce to customer demand Meet customer demand over a given period oflevel production

Reduce/eliminate finished goods inventory Small buffer inventory to meet variation indemand


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Varying work schedules Predictable/leveled work schedules

Production & Supply Variability if varyingcustomer demand

More stability production and supplier

Risk of more overtime if demand fluctuates Less likelihood of overtime

Takt time is the heart beat of Lean implementation


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Heijunka is the deep breathing exercise of Leanthat brings stability and calm to the process

Heijunka Box (leveling box)


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OfficeManufacturing

Like a mailbox for work required and the runner/water spider is the mail carrier

7:00 7:20 7:40 8:00 8:20 8:40 9:00 9:20

Model APitch 20 min

Model BPitch 10 min

Heijunka Box

Columns time intervals


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Model CPitch 40 min

Model DPitch 20 min

Model EPitch 20 min

Pitch = takt time x pack out quantity Lean Lexicon: source

Rows types of product

7:00 7:20 7:40 8:00 8:20 8:40 9:00 9:20

Model APitch 20 min

Model BPitch 10 min

Heijunka Box

A

Instruction

card toproduce


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Model CPitch 40 min

Model DPitch 20 min

Model EPitch 20 min

Lean Lexicon: source

7:00 7:20 7:40 8:00 8:20 8:40 9:00 9:20

Model APitch 20 min

Model BPitch 10 min

A A A A A A A A

Heijunka Box


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Model CPitch 40 min

Model DPitch 20 min

Model EPitch 20 min

How many cards in each slot for Model B Lean Lexicon: source

7:00 7:20 7:40 8:00 8:20 8:40 9:00 9:20

Model APitch 20 min

Model BPitch 10 min

A A A A A A A A

B

B

B

B

B

B

B

B

B

B

B

B

B

B

B

B

Heijunka Box


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Model CPitch 40 min

Model DPitch 20 min

Model EPitch 20 min


7:00 7:20 7:40 8:00 8:20 8:40 9:00 9:20

Model APitch 20 min

Model BPitch 10 min

A A A A A A A A

B

B

B

B

B

B

B

B

B

B

B

B

B

B

B

B

Heijunka Box


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Model CPitch 40 min

Model DPitch 20 min

Model E

Pitch 20 min


C C C C

D D D D D D

E E

Jidoka: Building in quality

Automation with the human touch

Autonomation

(Autonomous + Automation)Automation with human intelligence


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Autonomous Freedom to act independently

Jidoka:

Necessary improvements made bydirecting attention to the stopped equipment

and the worker who stopped the operation.

The jidohka system puts faith in the worker as a thinker


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The jidohka system puts faith in the worker as a thinkerand allows all workers the right to stop the line on which theyare working


Goal to achieve appropriate level of automation

1) Detect problem immediately2) Halt production3) C ti ti t k ith littl d ti


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3) Corrective action taken with little down time4) Prevents defects from being passed on


How do we do it?

Small cross function team with Poka Yoke experience

L k f t it t i t


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Look for opportunity to incorporatemistake proofing devices (ideally for the machine)

Jidoka


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Manual feed watch machine

automatic process

Self-monitoring

machine

Toyoda family textile loom stopped automatically


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Production Preparation Process (3Ps)

A disciplined method

new products or significant redesign


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Production Preparation Process

Cross functional team

manufacturing, engineering, maintenance all participate

Develops alternatives for each step


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p p(keeping in mind Lean from the initial point)

Mock up the process to test-experimentation-work out the flaws

Associated with kaizen thinking


Results

-Cost savings


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-Faster product development


Principles

1) Based on VOC2) Q lit i b ilt i


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2) Quality is built in3) Production system designed to meet takt4) Production system designed to meet lead time5) Production system designed to meet cost targets6) Based on Toyota Production System

7) Simultaneous product/process development


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5 Whys

Keep asking Why is this happening?Rule of thumb 5


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362

Focuses team on causes rather than symptoms,

especially the root cause

If you dont ask the right questions, you dontget the right answers

Asking questions is the ABC of diagnosis


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Kaizen (Good change)

Continuous incremental improvement by everyone

Japan all aspects of life

S


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Small improvements over time

lead to large business value

Kaizen is long term, but probably more famous for kaizen blitz

Kaizen (Good change)Willingness to solve problems at the source


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Move from firefighting to teaching everyone that preventing waste is their responsibility

Firefighting inefficiency

Prevention of waste

Masaaki Imai


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In 1985 Imai, labeled Japans productivity movement Kaizen,and brought it to the U.S. through the publication:

KAIZEN: The Key to Japans Competitive Success.

Kaizen

Focus on the process

Improvement of the process is key to success

Quality is the highest priority


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Q y g p y

Problems are solved with data

Suppliers Inputs

Process1.

2.3.4.5.

Outputs Customer

Kaizen

People oriented


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Kaizen mindset

1) not a single day should go by without some kind of

improvement being made somewhere in the company


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Kaizen mindset2) customer-driven strategy for improvement - any managementactivity should eventually lead to increased customer satisfaction

3) quality first, not profit first - an enterprise can prosper only ifcustomers who purchase its products or services are satisfied


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Industry Week, Jan 24, 2006

focused on external value system of capital markets

Vs.

internal value system that focused oncontinuous improvement and customers

Kaizen mindset

4) recognition that any corporation has problems and establishing a

corporate culture where everyone can freely admit these problemsand suggest improvement

5) problem solving is seen as cross functional systemic and


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5) problem solving is seen as cross-functional systemic andcollaborative approach

Kaizen mindset

6) emphasis on process - establishing a way of thinking oriented atimproving processes, and a management system that supports

and acknowledges people's process-oriented efforts for improvement


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Suppliers Inputs

Process1.2.3.4.5.

Outputs Customer

Kaizen

The next step of the process is your customer

Always provide the next step with good parts or information


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Suppliers Inputs

Process1.2.3.4.5.

Outputs Customer

Top

Management

Middle

Management

Supervisors

System-wideInnovation

Kaizen

(localized innovation)


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Workers

Maintenanceof operations

Innovation drastic improvements in processKaizen small continuous improvementsMaintenance maintaining current standards

Job functions as perceived by Japanese managers


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Kaizen Event or Blitz or Kaikaku

Focused short term project to improve a process

Kaikaku radical/revolutionary change

Oft d i t d ti t L S i k lt


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Often used as an introduction to Lean See quick resultsShift paradigms

Kaizen Event or Blitz


Typical Kaizen events starting points


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1) Work cell implementation

2) Setup reduction (SMED)3) 5S

Kaizen Event or Blitz


How do we select them?


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1) Value Stream mapping

2) Employee suggestions3) Line managers request4) High visibility5) Self contained

Other methods?

Customer issues and opportunities

Business strategyGoals and objectivesPriorities

Prioritized byManagement team


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Kaizen projects

Benefit

Medium

High

ain


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Low Medium High

Effort

B

Low

Pain

Ga

Novices to Lean implementation should attendIntroduction To Lean first to familiarizethemselves with the basic concepts and principles oflean before attending Kaizen Workshop
http://www.leanadvisors.com/Lean/tools/lean_introduction.cfmhttp://www.leanadvisors.com/Lean/tools/lean_introduction.cfm


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Kaizen Blitz - teamwork

Intensive method carried out over 3-5-10 days with across-functional team of 5-10 individuals

High energy

High creativity


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High creativity

Momentum

Secret of Kaizen Values people & creativity over capital

Plan Kaizen Event2-4 weeks

Kaizen Workshop

D

M

A


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p3-5 days

Follow up3-4 weeks

A

I

C

Kaizen Event

Day 1 Day 2 Day 3 Day 4 Day 5

Test bestsolutions

RefinePresentation

Plan to

Define Kaizen

Specific Value

AnalyzeProblem

Discovery Get Crazy Just Did it Get Bugs OutSustain &Celebrate


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Plan tosustain

Celebration

Specific ValueStream Problem

ProblemStatement

Observe

Data

Kaizen Blitz

Rapid Teach Do Style

People have little time to think of reasons for delay


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Intensity and urgency overcomes intellectual resistance to a new paradigm

Kaizen Event

Dont include management as a

participant in first several employeesnot free to experiment with boss

Later include management to show support


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Later include management to show support

1/3 outside customers, suppliers1/3 management (?)1/3 immediate team/operators

Engineering and maintenance must be available to the team

Preparation prior

Review past events learn

Let HR know


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Baseline information

-Customer requirements-Layouts-Flow charts-Procedures-Value Stream Mapping

See message board for Cold Spring Granite preparation document

Preparation prior

Supplies

tape measures, stopwatch, carts, safety equipment,cleaning supplies, gloves, coveralls


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flip charts, post it notes

overheads

Newspaper

Daily update on team activitiesfor others in the company


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Dos Kaizen Events

1) Limit the scope2) Get expert help for 1st several3) Give team freedom to make mistakes


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)4) Train team

5) Measurable results

Donts Kaizen Events

1) Choose an unstable process2) All t t t k


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2) Allow management to take over3) Reinvent the processuse what works4) Limit kaizen to shop floor use everywhere5) Use Kaizen as only means of continuous improvement

Shallow roots of new change require constant watering

Senior management constant reinforcement


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Environment for Kaizen

1) Training Toyota everyone is trained

2) Lay-off policy employees cannot lose jobs due tolean initiatives

Di l d l t i th ti i t


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Displaced employees are put in the continuous improvementoffice until they are brought back into a function

3) MetricsRecognize all measurable improvement not just selected

4) Team involvementnot about liking, but mutual respect

5) Empowerment

Dangers

1) Blitz training is superficial

Lean training takes months to yearsNeed sound underlying strategy

2) Goldratt states, A system of local optimums is notti t I l d f d ti it


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an optimum system Islands of productivity

Dangers

1) Blitz training is superficial

Lean training takes months to yearsNeed sound underlying strategy

2) Goldratt states, A system of local optimums is notti t I l d f d ti it


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an optimum system Islands of productivity

3) Over reliance on Kaizen events to become Lean


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Is 99.9% Good Enough?

10271 pieces of mail lost per day

1264 planes crashing at Ohare per year


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288 babies dropped per year

Is 99.9% Good Enough?

Current airline safety 7-8 Sigma Baggage 2 sigma 3 Sigma 2 words wrong per page of novel 4 Sigma 1 word wrong per every 30 pages of

novel


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novel

5 Sigma 1 word wrong per set ofencyclopedias 6 Sigma 1 word wrong in a library

Reduce input variation to have stablerepeatable process for the customer


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MES Role in Lean Manufacturing

Data Acquisition to Establish Metrics

Real Time Data for Early Contingency Implementation

Data Integration for Full Analysis Capability

Bottleneck Analysis Via Planning and Scheduling

Lean Manufacturing and MES Correlation

MES

ERP


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4M Visibility and Analysis

Lean Manufacturing Process Adherance

Facilitation of 6 Sigma Programs at an Accelerated Rate Process Control Systems


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Statement ofProblem

MaterialMachineryManpower

Fishbone Diagram For Root Cause Analysis


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ManagementMetricsMethod

Statement ofProblem


Fishbone Diagram For Root Cause Analysis

Lack ofTraining

Defects


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Poor

Processes

Lack ofEmpowerment

Lean Elements and Tools

6 M Analysis

Manpower Machinery

Material

Statementof Problem



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Material

Methods Metrics

Management

(Mother Nature)



6 M Analysis

Manpower Training

Job rotation

EmpowermentStatement



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Empowerment

Work procedures

Machinery Uptime

Proactively maintained New equipment when necessary

of Problem



6 M Analysis

Material Defects (incoming)

Scrap (within the system)

Statementof

Problem



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Methods

Necessary processes

Effectiveness and efficiency



6 M Analysis

Metrics Constant collection and improvement on data

Action plans developed to improve data


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Management

Sponsor

Empower

Foster Culture

Statementof Problem




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Planning Execution Control ClosureInitiation

Assessment

Project Selection

Requirements

Scope

Schedule

Budget

Implement Plan

Team Dynamics

Communicate

Review

Archive

Celebrate

Monitor

Improve

Contingencies

Where to Start? Tactical

Implementation


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Justification

Sponsor

Charter and SOW

Project Manager(Lean Champion)

Communicate

Training

WBS

Network Map

Team Roles

Risks

Quality

Metrics

Communicate

Communicate

Where to Start? Strategic

Integration

CEO

Safety, Quality, Cost, Delivery, Morale, Environment


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Planning Execution Control ClosureInitiation

Management Management Management

Supervisor Supervisor Supervisor Supervisor

Associate Associate

Where to Start?

Be mindful of the Cs to avoid failed

projects

Commitment


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Culture Communication

Completion

Complacency

WHY ARE THESE IMPORTANT?


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Lean Enterprise Institute Survey 2006

Implementation Words ofAdvice

Pick small projects with small implementation costs

5S, Waste Walks, Value Stream Mapping

Build on momentum

Kaizen teams, suggestion programs


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gg p g

Dont be afraid to push the envelop

Project management fundamentals

Plan, Plan, Plan


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Lean Class

Documents

Transcript of Lean Class