Lean Workshop

6/5/2014
A Little Background
BOOLIM BUYING CORPORATION
A professional with over 15 years of experience from leading Lean implementation,

Quality Assurance team, ISO Quality Management system and about 4 years
in sales and marketing roles.
A ONEONE-DAY
Certification:
Certified Job Instruction Trainer TWI (Training Within Industry), Lean

Associates, USA
Certified Lean Manufacturing, Nike Inc, Vietnam
Certified ISO 9000 Lead Auditor, Neville Clarke, Indonesia
Certified Quality Auditor, ASQ (American Society for Quality), USA
Certified Product Safety, RAM Consulting, Hong Kong
Certified Supplier Quality Auditor, Nike Inc, Singapore
LEAN WORKSHOP
BY
RONALDO S. MANURUNG
LEAN CONSULTANT
Your Turn:
Name:
Company:
Service years:
PT. Kukdong International

December 29, 2010
1
Agenda
Lean Awareness
Lean - Overview and History

Customer Value and Waste
Operational Stability, Visual Management
and 5S
Problem Solving PDCA
Value Stream Mapping and Engagement
Model
1. How much do you know about Lean?

2. What does Lean mean to you?
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Lean Workshop
Objectives
Gain better understanding of Lean
LEAN OVERVIEW &

HISTORY
Provided participant with basic Lean

information to begin Lean Journey
Lean Is . . .
Lean . . .
LEAN IS NOT
A deeply rooted
philosophy of
reflection and
continuous
improvement
A workshop or collection
of tools
About assigning blame to

people for problems
Total business mindset,

sustainable, healthy,
responsive, focused and
transforming
Externally focused on the
Customer
About bringing visibility to
problems
Is not a one time cost

cutting exercise
Ongoing process
improvement
Internally focused
Lean Manufacturing : Is a system / approach to eliminating waste and enabling continuous

improvement.
7
LEAN IS
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Lean History
Lean History
All we are doing is looking at the time line, from the moment the customer gives us an order
to the point when we collect the cash. And we are reducing the time line by reducing the nonnonvalue adding wastes. - Taiichi Ohno
9
Lean History
10
Who else is doing Lean? And why?

Parker
Parker--Hannifin Corporation
Stanley Black & Decker, Inc.
General Electric - Growth through Lean

Deere & Company
Customer responsiveness
Steelcase Inc.
Westinghouse Air Brake

Technologies
New Balance
Textron Inc.
- Growth with US based

manufacturing
Danaher Corp.
Time to customerNewell Rubbermaid Inc.
Boeing Co.
Hillenbrand, Inc.
Starbucks
Illinois Tool Works Inc.

- Growth through Promotional
Process
Inc.
Better consumerPentair,
experience
Tesco PLC
Johnson & Johnson
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Lean History
Lean History
Nikes Lean System based on
Toyota Production System
NOS is an acronym for
NOVUS
ORDO
SECLORUM
Which in Latin means
A New Order has Begun
13
14
House of NOSNOS-Lean
What is NOS?
Key Lean Principle
NOS represents Nikes

version of TPS (Toyota
Production System)
LO
WE
S
ITY
AL
QU
Understand your Internal & External Customer

needs. Be relentless in focusing time and energy
on work that brings value directly to your
customer.
Focus on the CustomerCOST
ST
BE
ON TIME DELIVERY
KAIZEN MINDSET
Continuously Improve
PERFORMANCE
METRICS
STANDARDIZATION
STRATEGY
DEPLOYMENT
PULL
SYSTEMS
KANBAN
ERRORPROOFING
A business philosophy
Create a culture of continuous improvement,

where problems are viewed as opportunities to
learn.
CONTINUOUS
FLOW
ANDON
QUICK
CHANGE
OVER
based on the systematic

elimination of waste
STANDARD
WORK
Perfect the process

TAKT
TIME
PDCA
LEAN
LAYOUT
Waste
Elimination
by an empowered
workforce.
Identify non-value added work and systematically

eliminate the waste. Adopt best practice as
standards, bring stability to the process as
changes are implemented.
5S & Visual
Management
TPM
Heijunka
OPERATIONAL STABILITY
Mutual Trust &
Respect
Safety &
Ergonomics
Teamwork &
Work Teams
Flexible
Workforce
Skills
Development
Amplify the Voice of the People

CULTURE OF EMPOWERMENT
15
Respect, challenge and grow the organization,

aligning people toward a common purpose.
Empower people along the way.
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Key Lean Principles
Goals of Lean
FOCUS ON THE CUSTOMER

Understand your Internal & External Customer needs.
needs. Be
relentless in focusing time and energy on work that brings value
directly to your customer.
AMPLIFY THE VOICE OF THE PEOPLE

Respect, challenge and grow the organization, aligning people toward
a common purpose. Empower people along the way.
Higher Quality
Lower Cost
Shorter Lead Time
PERFECT THE PROCESS

Identify nonnon-value added work and systematically eliminate the
waste.
waste. Adopt best practice as standards, bring stability to the
process as changes are implemented.
Greater Flexibility
Mutual Trust & Respect
CONTINUOUSLY IMPROVE
Create a culture of continuous improvement,
improvement, where problems are
viewed as opportunities to learn.
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20
Lean Thinking
Lean Thinking is a total
business mindset focused
on the elimination of
anything in a process that
does not add value* to the
output
Output is delivered by an
empowered team
* Value is defined by the customer
(recipient of the process output)
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Focus on the Customer
CUSTOMER VALUE &

WASTE
21
Customer demand is the Universal Driver in Change.
today. Tomorrows demands will be even greater.
Customers Vote with their Dollars and

Business.
Product
Shipment
Waste
Anything not adding Value to the product

is wasteful.
Time
Customer
Order
WASTE
Product
Shipment
Its About the Customer

The Customer is the ONLY one who
defines the VALUE of the
product/service.
Conditions that were satisfactory yesterday are not acceptable
Customer
Order
22
Lean helps to shorten the

timeline between the
customer order and the
product shipment.
Ask yourself:
Would your Customer pay for this?
Time
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Value Add Matrix
Value Add defined
Value Add:
Add: Any activity that changes the shape, form, or function
of material or information to meet customer requirements
NonNon-value Add (WASTE): Activities that add cost (resources,
time, space) but not value to the product or service, as defined by
the customer
Incidental:
Incidental: Work that needs to be done but does not add direct
value to the part. An example would be items that Legal or
Statutory requirements.
NON
VALUE
ADD
VALUE
ADD
NECESSARY
REDUCE
KEEP!
UNNECESSARY
ELIMINATE!
DOES
NOT
EXIST
25
Focus on Value
26
Lean Mindsets
Customer Defines Value
The metrics you use internally

to measure the Performance of
the process against your
Customers Value Requirements
Total customer focus is the only option

Value add is defined by the customer
Anything that is not value add is defined as waste - Waste is
defined as anything that adds cost but not value to the
product
Value -adding activities are those activities that change raw
materials into something the customer is willing to pay for2
Use the metrics as the Compass

to guide the team in the
direction of Continuous
Improvement
You get what you measure!

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Waste
Waste
How should we determine Waste ?

Waste
The Ohno Circle

Muda
Waste
is:
- anything that takes time, resources

or space but
MUDA
does not add to the value of the
Mura
Unevenness
product or service delivered to the

customer.
These are things the customer is

NOT willing to pay for.
Muri
Overburden
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30
Toyotas Famous Pursuit of Waste
Waste
While process/products may be different,
the typical wastes found are similar:
Muda
Muda-- (Waste
Waste)) The seven forms of Waste, and the
scope of this module.
Transportation
Waiting
Muri
Muri-- (Overburden
Overburden)) Overworking or stressing of an
operator or machine.
Overproduction
WASTE
Defect
Inventory
Mura
Mura-- (Unevenness
Unevenness)) The imbalance of workload
amongst workers.
Motion
TWO DIME
Extra processing
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Waste - Addition
Waste - Definitions
Types of Waste Waste - Definitions
Definition
While process/products may be different,

the typical wastes found are similar:
Movement between process steps that does not add

value
Idle time created when material, information, people,
or equipment are not ready
Generating more output (information, product) than
the customer needs right now
Work that contains errors, requires rework, or lacks
something necessary for completion
More information, material, or projects onon-hand than
the customer needs right now
Physical movement that does not add value
Effort that creates no additional value from the
customers viewpoint
Transportation
Waiting
Defect
Overproduction
Overproduction
Waiting
Defect
WASTE
Not Utilizing Employees
Inventory
Transportation
Motion
Inventory
Extra processing
Motion
Not Utilizing
Employees
Extra processing
Old guard thinking, politics, high turnover, low

investment in training
33
Waste of Transportation
34
Waste of Waiting
Cut parts being stored away from the place of use.

( Distance JIT W/H to Stitching line 19 is 100 m )
People
JIT
W/H
Machinery
Result:
We must inform tracking personnel where to pick up material
We will need additional storage location other than point of use
We need additional material movement personnel and equipment
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Waste of Over Production
Waste of Defect
JIT W/H
In 5500prs
Out 1500prs
More parts = More money
Bottom Hem Stretched
Shape Out
extra defects
extra handling
extra space
extra machining
Results
extra paperwork
extra people
extra overhead
V Neck Point Not Straight
Side Seam Length Uneven
37
Waste of Inventory
38
Waste of Motion
Inventory
Poor
Scheduling
Defects
Machine
Breakdown
Transportation
Line
Imbalance
Vendor
Delivery
Pick up the below box to make FIFO
Obsolescence
Long Lead
Times
Twist and pick up parts from flow rack
Communication
Problem
Absenteeism
What is causing this waste?

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40
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Waste of Extra Processing
What causes this waste?

41
42
Stability
The condition of being stable or resistant to
change
OPERATIONAL STABILITY,
VISUAL MANAGEMENT & 5S
American Heritage Dictionary
The strength to stand or endure

Merriam--Webster Dictionary
Merriam
In the simplest sense, it implies Predictability and

Repeatability in a process.
43
44
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Improvement
The Dilemma . . .
A change or addition that improves
Stability without Improvement = ?
American Heritage Dictionary
Improvement without Stability = ?
45
46
The Dilemma . . .
The Dilemma . . .
Stability without Improvement = Stagnation
Stability without Improvement = Stagnation
Improvement without Stability = ?
Improvement without Stability = Chaos
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Stabilize before you Improve
Visual Recognition Game

5 seconds to see the slide.
Write down the brands you recognize. Count
the number of brands you recognize.
Which player did better in this round?

Which is likely to do better after several rounds of play?
Best Global Brands 2009 Rankings as researched and ranked by Interbrand Consultancy Organization
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50
Visual Recognition Game

Coca-Cola
Hewlett-Packard
Microsoft
5 seconds to see the slide.
Nintendo
UPS
Gillette
Write down the brands you recognize. Count

the number of brands you recognize.
Sony
Intel
Nokia
JPMorgan
BMW
Google
Canon
H&M
Dell
Marlboro
Pepsi
Samsung
Nescafe
SAP
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Visual Management Goal:

Goal:
Is the use of controls that will
enable an individual to immediately recognize
the standard, and any deviation from it.
This allows people a chance to see and correct the
situation before it becomes a problem
53
Visual Factory Examples

Material ID
M/C Checklist
Indicator Light
Job Aids
54
Visual NonNon-Factory Examples
Andon Board
Marked Floor Areas
55
Material ID
Indicator Light
Andon Board
M/C Checklist
Job Aids
Marked Floor Areas
56
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The Visual Management Vision
Elements of Visual Management: 5S
There is nothing extra.

The environment is clean, in order, safe, and selfself-maintaining.
Standards are easy to recognize and abnormal conditions are
easier to correct.
Performance and progress are readily apparent
Zero Defects is a reality!
Everyone Participates
57
Foundation of the Visual Mgmt: 5S
58
1S : Sort (Organization)
Distinguish Between What Is and Is Not Needed
Sort (Seiri)
Clear out
Unused items
Standardize(Seiketsu)
Create rules to sustain
the first 3 Ss
Straighten (Seiton)
Organize and label a
place for everything
Shine (Seiso)
Clean / spotless
Sustain (Shitsuke)
Use regular management
audits to stay discipline
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60
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2S: Stabilize
After
Before
A Place for Everything;
Everything in its place
61
2S: Stabilize - Location maps, Indicators
62
Taped Locations and Labeling
63
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3S: Shine (Cleanliness)
4S - Standardize
Develop a Standard Procedure for
1S, 2S and 3S
Keep
Everything Clean: Eliminate all dirt,

oil, grease, scrap, shavings .all waste.
Any
dirt or scrap is a sign of a problem
Cleaning
is inspection regular cleaning

keeps you familiar with your workplace.
Make
Where there is no Standard there can be no Kaizen
cleaning part of everyday work.
Taiichi Ohno
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66
5S Audit Sheet
2
>4
>4
>4
No cables off floor
>4
No sample parts labelled and in defined location
>4
No production parts in defined location
>4
>4
No packaging in defined /standardized location
>4
No notices in defined location
>4
No cupboards, draw ers, furniture labelled
>4
No machines and w orkstations labelled
>4
manufacturing) is involved
Broken or damaged labels

No production parts are in defined coding for
identification
No containers, baskets, or boxes have size, quantity,
and acceptable inventory level
No "Danger" marked w ith red coloring
>4
>4
>4
Requires self discipline and commitment from
Shine
>4
Damaged tools or equipment w ithout repair tag
>4
No Walls, Floor &Window s clear and clean
>4
>4
>4
No t
Vis ible
>4
days
ol d
4 days
ol d
>3
days
ol d
>2
days
old
>1
days
old
>4
>4
No cleaning material and equipements available and

in place & desiginated area
Excess dirt / oil /dust on machines
everyone at all levels of the organization
No housekeeping schedule available and updated
STANDARDI SE
No standard of housekeeping displayed in area

No cupboard standard displayed on outside
(except if "Personal")
None of 5S Training percentage of people
SUSTAI N
No Plan
Only
or
Planned
Reco rd
TOTAL
S C OR E:
TOTAL
S C OR E:
TOTAL
S C OR E:
>20%
>50%
>80%
100%
No previous audit items displayed & corrected
>4
No 5S improvement activities documented
>4
=LO
WESTSCOREX4
>4
TOTALSECTIONSCORE
>4
SCOREX4
>4
No Notices are up to date

No notices and graphs indicate w hen
updated/removed
No rubbish in defined bin
No gauge or indicator for standard of machine is
available
No aislew ays are defined & clear
TOTALSECTIONSCORE=LOW
EST
Excess materials
NO TES
LOW
EST
SCORE=
SECTION
TOTAL
SCOREX4
SCORE=LOW
EST
>4
Rejects in defined location
STABI LI SE
SCO RE
>4
TOTALSECTION
Everyone in the organization (not just
SCO RE
2
3
0
Unused equipment or excess furniture and unnecessary items on w ork station
Unidentified parts
TOTAL
S C OR E:
SCOREX4
SOR T
Continuously improving the 5S system
Items
SCORE=LOWEST
5S
TOTALSECTION
5S: Sustain
TOTAL
S C OR E:
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PROBLEM SOLVING - PDCA
69
Lean Thinking, Methods and Tools
70
Problem Solving Method
Lean = Continuous Improvement
PDCA: Plan Do Check Action
Lean = The Art of Problem Solving

Lean = The Scientific Method
71
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Basic Types of A3 Report
Basic Types of A3 Report
1. Problem Solving Story

Tell a problem solving story A standard exists
that is not being met
2. Proposal Story
Tell a proposal story when you have a
proposed plan or policy that needs approval
and/or buybuy-in
3. Status Story
Tell a status story when you need to inform on
progress toward a plan or agreed upon goal
Problem Consciousness
PROPOSAL
STORY
PROPOSAL
STORIES
Current Situation
PROBLEM
SOLVING
STORY
STATUS
STORY
INFO
STORY
REPORTING STORIES
73
Scientific Method in Practice@

Observation
Theory
PDCA is a Systematic Way of Thinking

Plan
Identify the problem

Analyze for root cause
Formulate countermeasures
Develop implementation plan
Do
Communicate plan
Execute plan
Check
Monitor progress of plan

Modify plan if necessary
Monitor results
Adjust
Evaluate results
Standardize effective countermeasures
Start PDCA again
ACT
background, facts, questions
Plan
74
CHECK
model of understanding
Hypothesis
PLAN
DO
prediction of outcome
Do
Experiment
Check
Results
testing of Hypothesis
objective evaluation of experimental outcome
Action / Conclusions
proof or disproof of Theory, based on knowledge
Adjust
And measures derived from results
*GTS Grasp the Situation

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Lean Problem Solving Image
Typical PDCA one page flow

Author:
Version, Date:
Big Vague Concern
PRESENT SITUATION
Breakdown
Grasp the Situation
THEME/TITLE
Title (what are you talking about?)
Current Conditions
What is the problem youre trying to solve?
Actual vs, Standard

Actual vs. Ideal
COUNTERMEASURE
Proposed Countermeasure
Go See
GOAL/TARGET
5 Why Analysis
Why?
Why?
Why?
Why?
Why?
Root Cause
Countermeasures
When solving
problems, dig at the
roots instead of just
hacking at the
leaves. ~Anthony J.
D'Angelo,, The College Blue
D'Angelo
Book
77
Typical PDCA one page flow

Author:
Version, Date:
What specific outcomes are required?
IMPLEMENTATION PLAN
Who, what, when, where
CAUSE ANALYSIS
Whats the cause of the problem?
FOLLOW UP / UNRESOLVED ISSUES

How are you going to measure the results?
What issues can be anticipated?
78
PDCA Problem Solving A3 Thinking
THEME/TITLE
What do you REALLY want to accomplish? Do what
to what
Present Situation
Should be DETAILED and FACT-FILLED
What should be happening (ideal)?
What is actually happening (current)?
What is the GAP between the current and ideal?
What is the extend?
What is the Rationale - Why should this problem be
addressed/ what would happen if it werent addressed?)
COUNTERMEASURE
Proposed short term (contains the problem, stops the
bleeding) and long term solution (addresses the root
cause)
Why Recommended? (Evaluate based on cost, timeliness,
feasibility, effectiveness, impact)
TARGET
Do What Action word (increase, decrease)
To What Focus area (object of the action)
How Much Quantifiable measurement, relates to
standard
By When Specific date
IMPLEMENTATION PLAN
Tell us the who, what, when and status (green = ok, red =
not ok)
CAUSE ANALYSIS
Problem statement
Determine the Root Cause based on FACT, investigation
results, reasonable assumptions
FOLLOW UP
How will you CHECK against your plan?
Check Method, Frequency and Who will check
Target & Actual (make it visual)
Recommended Actions
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PDCA Problem Solving A3 Thinking

PDCA:
PDCA:
PLAN
PDCA:
PLAN
PLAN
PDCA:
PLAN
PDCA:
PDCA:
DO
PLAN
PDCA:
CHECK
81
Mastering the Art of Problem Solving
82
PDCA Thinking at Lean Organizations

Business Planning
No Problem is problem
Problems are opportunities
to learn
Hiding problems
undermines the system
Reward efforts to uncover
problems and turn them
into opportunities for
improvement.
Activity Planning
ACTIVITIES
Kaizen
Daily Work
A
Problem Solving
TOOLS
A3 Strategies
Strategy Deployment
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84
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VALUE STREAM MAPPING &

ENGAGEMENT MODEL
85
Lean Implementation
Introduction to Value Stream Mapping
Why do Value Stream Mapping?
Definition of Value Stream
Implementation without a plan will lead to disaster

Customer
A Value
Stream Map is
a simple
picture that
helps you
focus on flow
and eliminate
the waste
86
Steel Supplier
X pcs / month
Std Pack Qty
# Shifts
PC & L
Level Box
A Value Stream includes all elements (both value added and

non-value added) that occur to a given product from its
inception through delivery to the customer.
DA1
DA2
Daily
DA3
Stamping
6 x / Day
Assembly
Welding
Finished Goods
Layout
3 Shifts
3 Shifts
3 Shifts
# Material Handlers
TAKT Time
TAKT Time
TAKT Time
Max Size
CT =
CT =
CT =
2 Shifts
C/O Time =
C/O Time =
C/O Time =
0 Overtime
DT =
DT =
DT =
Scrap =
Scrap / Rework=
Scrap / Rework =
WIP =
Small Lot
# Operators
? days
? days
? days
? days
? days
Requirements
Design
Raw Materials
Parts Manufacturing
WIP =
WIP =
Inv.Time
Proc.Time
? days
? days
TPc/t = ?
MAP THE FLOWS !

Eyes for Waste . . .
Assembly Plants
. . . Eyes for Flow

87
Distribution
Customer
88
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Definition of Value Stream Mapping
Typically we examine the value stream from raw

materials to finished goods within a plant.
Value Stream Mapping (VSM) is a handshands-on process to

create a graphical representation of the process, material
and information flows within a value stream.
VALUE STREAM
Customer
PROCESS
PROCESS
PROCESS
Steel Supplier
PROCESS
Xpcs/ month
Std Pack Qty
# Shifts
PC & L
Level Box
DA1
DA2
DA3
Daily
Cutting
Preparation
Finishing
6 x / Day
Sewing
Stamping
Assembly
Welding
Finished Goods
Layout
Raw
Material
Finished
Product
3 Shifts
3 Shifts
3 Shifts
# Material Handlers
TAKT Time
TAKT Time
TAKT Time
Max Size
CT =
CT =
CT =
2 Shifts
C/O Time =
C/O Time =
C/O Time =
0 Overtime
DT =
DT =
DT =
Scrap =
Scrap / Rework=
Scrap / Rework =
Small Lot
# Operators
WIP =
WIP =
WIP =
It is also possible to map business processes

using Value Stream Mapping.
Inv.Time ? days
Proc
.Time
? days
? days
? days
? days
? days TPc/t = ?
? days
Future State Material, Information and Process Flows

with total Product Cycle Time
89
90

The Process
Objectives of Value Stream Mapping

Provide
the means to see the material, process

and information flows.
Support the prioritization of continuous
improvement activities at the value stream
Provide the basis for facility layout
MRP
Customer
MSS
X pcs/month
Std. Pack Qty.
# shifts
PC & L
Steel
Supplier
Weekly Build Schedule
Map the Current State
Daily Ship
Schedule
Tues. & Fri.

# times/day
Stamping
Welding
Steel
Pin
# pcs
# days
or shifts
TAKT =
Layout
TAKT =
2 Shifts
Assembly
Layout
TAKT =
Finished Goods
# Shifts =
# Operators
Cycle Time =
Changeover Time=4 hr
Cycle Time =
WIP =
Downtime
Scrap/Rework
DT, Scrap = 10%

Rework
2 Presses
Downtime = 20%
Changeover Time =
Cycle Time =
WIP =
WIP =
Overtime =
Customer
X pcs / month
WIP =
Uptime
Steel Supplier
Scrap
Std Pack Qty
PC & L
# Shifts
Change
Over
Inventory Time ? days

Processing Time
Level Box
? days
? days
? days
? days
? days
? days TPc/t = ?
DA1
DA2
Daily
DA3
Assembly
Welding
Stamping
6 x / Day
Finished Goods
Layout
Analyze the Current State

and
Design the Future State
AND...
3 Shifts
3 Shifts
3 Shifts
# Material Handlers
TAKT Time
TAKT Time
TAKT Time
Max Size
CT =
CT =
CT =
2 Shifts
C/O Time =
C/O Time =
C/O Time =
0 Overtime
DT =
DT =
DT =
Scrap =
Scrap / Rework=
WIP =
Scrap / Rework =
Small Lot
# Operators
WIP =
WIP =
Inv.Time
Proc.Time
? days
? days
? days
? days
? days
? days
? days
TPc/t = ?
Activity
1999
2000
1ST 2ND 3RD 4TH 1ST 2ND 3RD 4TH
Establish TAKT & Flow in Tank Ass'y
Eliminate Waste
Stamping Changeover Reduction
Create an implementation plan

and execute it !
Reduce Stamping Buffer

Move Ass'y to Plant 10
Establish TAKT & Flow in Sender Ass'y
Pull To Sender Ass'y
Training
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Current State Map
Current State Map
The Steps
Step 1: Select a Value Stream (Product Family)
Step 1: Select a Product Family

Step 2: Form a Team
Step 3: Understand Customer Demand
Step 4: Map the Process Flow
Define
Step 5: Map the Material Flow
value stream (product family)
Identify value stream from the customer end
Product should pass through similar processes

and common equipment
Door
Door--to
to--door in scope (within plant walls)
Step 6: Map the Information Flow

List
Step 7: Calculate Total Product Cycle Time
part numbers
Step 8: Detail OffOff-Line Activities

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94
Current State
Current State
Step 2: Form a Team

Select
Step 3: Understand Customer Demand
a cross-functional team
Select team members

who are familiar with
the product
Ensure that team
members are trained in the
use of VSM
Plan
Industrial
Engineering
Sensei
Manufacturing
Cross Functional
Team
Maintenance
Product
Engineering
for Every Part
Production
Control
(monthly/weekly forecasts)
Production
PC & L
Customer
Demand/month:
Part A =
Part B =
Part C =
# of shifts =
history (day(day-to
to--day, monthmonth-to
to--month
variation)
Leadership
Sales
(product changes, new business, etc.)
Designate a champion (typically a line manager)

THIS IS CRITICAL
95
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Current State Map
Current State Map
Step 4: Map The Process Flow
Step 5: Map The Material Flow

Customer
Supplier
Customer
Demand/month:
Part A =
Part B =
Part C =
Demand/month:
Part A =
# of shifts =
Part B =
Part C =
# of shifts =
2 x/
week
Cutting
Preparation
Sewing
2 x/
day
Finishing
Cutting
Takt =
Takt =
Inventory
C.T. =
D.T. =
Part A =
Part B =
FTQ = 90%
Part C =
C/O Time =
C/O Time =
# of shifts =
Lot Size =
# of Shifts
Lot Size =
# of Shifts
WIP =
WIP =
C.T. =
D.T. = 20%
# of Shifts
FTQ =
Changeover
Preparation
1,200 pcs
I
500 pcs
800 pcs
1,500 pcs
Takt =
C.T. =
Takt =
C.T. =
Takt =
C.T. =
D.T. =
FTQ =
D.T. = 20%
FTQ =
D.T. =
FTQ = 90%
C/O Time =
Lot Size =
C/O Time =
Lot Size =
# of Shifts
WIP =
# of Shifts
WIP =
# of Shifts
WIP =
C/O Time = 4 hrs.
Finishing
Sewing
Inventory
Part A =
Part B =
Part C =
# of shifts =
Lot Size =
FTQ
Downtime
Changeover
FTQ
Downtime
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98
Current State Map
Current State Map
Step 6: Map The Information Flow

PC & L
6 week rolling forecast
PC & L
Weekly Order
Customer
Weekly Order
Customer
Weekly Order
Weekly Order
Daily Ship Schedule
Supplier
Demand/month:
Daily Ship Schedule
Supplier
Demand/month:
Part A = 705 pcs.
Part A = 705 pcs.

Part B = 600 pcs.
Part C = 1650 pcs.

# of shifts =
Part B = 600 pcs.

Part C = 1650 pcs.
# of shifts =
2 x/
week
2 x/
week
2 x/
day
2 x/
day
Cutting
Cutting
1,200 pcs
Preparation
1,500 pcs
Takt =
C.T. =
D.T. =
FTQ =
C/O Time = 4 hrs.
Sewing
800 pcs
Takt =
C.T. =
D.T. = 20%
500 pcs
Takt =
1,200 pcs
Inventory
FTQ =
C/O Time =
FTQ = 90%
C/O Time =
Lot Size =
# of Shifts
Lot Size =
# of Shifts
Lot Size =
# of Shifts
WIP = 25 pcs.
WIP = 60 pcs.
WIP = 550 pcs.
I
Takt =
C.T. =
1,500 pcs
D.T. =
Part A = 750 pcs

Part B = 600 pcs
C.T. =
D.T. =
Preparation
FTQ =
C/O Time = 4 hrs.
Part C = 1650 pcs

# of shifts =
Downtime
Finishing
.008 days
Inventory
Part A = 750 pcs
Part B = 600 pcs
Part C = 1650 pcs
# of shifts =
# of Shifts
WIP = 550 pcs.
Downtime
FTQ
.17 days
.27 days
.02 days
500 pcs
C/O Time =
Lot Size =
# of Shifts
WIP = 60 pcs.
.5 days
.4 days
99
I
Takt =
C.T. =
D.T. =
FTQ = 90%
FTQ =
C/O Time =
Lot Size =
Lot Size =
# of Shifts
WIP = 25 pcs.
FTQ
800 pcs
Takt =
C.T. =
D.T. = 20%
Changeover
Changeover
Sewing
Finishing
.18 days
TPc/t = 2.5 days

1.0 days
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Current State Map
Current State Map

Additional Mapping Icons
Supermarket
Show on the map using general icons
Detail on another sheet using either reference VSM

and/or process flowflow-charting
Signal
Kanban
Press Room
Withdrawal
Kanban
Fork Truck
Die Bench
Die Room
Receiving
Kanban
Path
Kanban
arriving
in batches
Kanban
Post
MAX 50 PCS
FIFO
First-In
First-Out
Flow
Physical
Pull
Die Room
Shipping
Dies
Dies
12 shifts
2 shifts
(Remove from
Schedule
Board)
Production
Kanban
Leveling
Process
Kaizen
Schedule Board
(Forecast)
101
Data Collection
102
Data Collection
Identify Opportunities for Improvement
It
is not necessary that attribute data be

precise.
It is necessary that the information at least be
directionally correct.
Knowing that uptime is 82.7% vs. 82%
is normally not necessary.
An assumption of 80%, however,
when reality is 65% can be
detrimental in that it may substantially
misdirect the future state development
and the prioritization of improvement
activities.
103
?
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Design Future State - Purpose
Future State Map
Purpose
The Steps
Step 1: Validate Customer Demand

Define how the plant will

operate in the future
Serve as the blueprint for

implementation
Step 2: Draw the Future State Process Flow

Step 3: Map the Future State Material Flow
Step 4: Map the Future State Information Flow
Without it, the Current State Map is nothing

more than wallpaper !
Step 7: Outline a Plan

105
Future State Map
106
Future State Map
Do It
Implement - Implement - Implement
Action - Action - Action - Action - Action
A simple way to
approach the Future
State Map is to begin
by modifying the
Current State Map.
Check It - Follow up
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Lean Engagement Model

Scoping thru Coaching
Initial Engagement
Scope the Work
ACT
CHECK
DO
PLAN
Plan
Develop Lean mindset and muscle from

worker to leader
Current & Future State Value Stream mapping,

Gap & Root Cause Analysis, Countermeasures
Do
Engagement Action Planning, Pilot - Implementation
Check Adjust
109
110
Roles & Responsibilities

Lean Coach
When to apply the Engagement Model?
Socratic Method Ask

Questions
Model and teach Lean
behaviors
Preparation leaders on their
role and coach throughout
Maintain focus on application
of Lean tools and philosophies
ie, PDCA etc
When the work is larger

than the small
everyday changes
When you need to coordinate between many resources

across functions, value stream
Lead scoping effort

Facilitate value stream
mapping
Support team through action
plan and checkcheck-adjust
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Team Champion Leader Process Owner
Accountable for the objectives of the Lean

effort
Drives implementation of action plans
Conducts checkpoints
Communicates with coach, team and
stakeholders
Stakeholders
Supplier and customer
stakeholders provide
their perspective
Remove obstacles
Participate in events,
checkpoints and
leadership reviews as
required
Sponsor - Leadership
Motivates the team

Actively involved (staff meetings, walking the Gemba)
Remove obstacles (workloads)
Provides top down direction on what
Supports bottoms up problems solving on how
Model Lean behaviors
Hold team accountable
Permission to try and maybe fail
Go slow to go fast
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114
Initial Engagement
Initial Engagement
Initial Contact
Go to See
Understand the pull for Lean The Why
Seek different
perspectives
Discuss Business Problems The What
Engage middle
management and workers
Ask to engage the team The Who

Set expectations on engagement model and coaching
role. There is no finish line.
115
Gather facts, anecdotes

and observations
116
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Initial Engagement
Scope the Work

Focused Problem Solving
Committed Leadership
Decision point
Is this work prioritized?
Committed Team Members

Clear Roles & Responsibilities
Strategic Initiative
Burning platform
Clear Success Criteria
Have leaders demonstrated

commitment?
See Together, to Understand Together in order to Act

Together
Involved and coachable

Support the team
Assigned key participants
117
118
Scope the Work
Scope the Work
Scope Objective
Scoping Effort
Clarity & Agreement on Problem
Refine Problem Statement with team

Identify Process startstart-end, Objectives and Owner
Leadership participates & must signoff
Identify inin-out of Scope

Leadership buybuy-in & commitment of resources
Identify Lean team
Preparation for successful value stream mapping
effort
Identify SIPOC (Supplier, Input, Process, Output, Customer)
119
120
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Thoughts for Today

Tell me and I will forget, show me and I may remember, involve me
and Ill understand. Chinese Proverb
Scope the Work
Lean is not a program, it is a total strategy. Alex Miller, Professor of
Outcome of Scoping Effort
Management at The University of Tennessee
Many people think that Lean is about cutting heads, reducing the work
force or cutting inventory. Lean is really a growth strategy. It is about
gaining market share and being prepared to enter in or create new
markets. Ernie Smith, Lean Event Facilitator in the Lean Enterprise Forum at the University
Clear objectives for Lean effort

Clear guardrails
Committed team
Framework for Value Stream Mapping Effort
includes:
of Tennessee
There are three kinds of leaders. Those that tell you what to
do. Those that allow you to do what you want. And Lean
leaders that come down to the work and help you figure it out. John
Team identified
Dates confirmed
Shook
121
122
THANK YOU
123
124
31

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A professional with over 15 years of experience from leading Lean implementation,

Certified Job Instruction Trainer TWI (Training Within Industry), Lean

Certified Lean Manufacturing, Nike Inc, Vietnam

Certified ISO 9000 Lead Auditor, Neville Clarke, Indonesia

Certified Quality Auditor, ASQ (American Society for Quality), USA

Certified Product Safety, RAM Consulting, Hong Kong

Certified Supplier Quality Auditor, Nike Inc, Singapore

PT. Kukdong International

Lean - Overview and History

1. How much do you know about Lean?

LEAN OVERVIEW &

Provided participant with basic Lean

About assigning blame to

Total business mindset,

Is not a one time cost

Lean Manufacturing : Is a system / approach to eliminating waste and enabling continuous

Who else is doing Lean? And why?

General Electric - Growth through Lean

Westinghouse Air Brake

- Growth with US based

Illinois Tool Works Inc.

Johnson & Johnson

Key Lean Principle

NOS represents Nikes

Understand your Internal & External Customer

Focus on the CustomerCOST

Create a culture of continuous improvement,

based on the systematic

Perfect the process

Identify non-value added work and systematically

Amplify the Voice of the People

Respect, challenge and grow the organization,

Key Lean Principles

FOCUS ON THE CUSTOMER

AMPLIFY THE VOICE OF THE PEOPLE

PERFECT THE PROCESS

Focus on the Customer

CUSTOMER VALUE &

Customer demand is the Universal Driver in Change.

today. Tomorrows demands will be even greater.

Customers Vote with their Dollars and

Anything not adding Value to the product

Its About the Customer

Conditions that were satisfactory yesterday are not acceptable

Lean helps to shorten the

Value Add Matrix

Value Add defined

The metrics you use internally

Total customer focus is the only option

Use the metrics as the Compass

You get what you measure!

How should we determine Waste ?

The Ohno Circle

- anything that takes time, resources

does not add to the value of the

product or service delivered to the

These are things the customer is

Toyotas Famous Pursuit of Waste

While process/products may be different,

Movement between process steps that does not add

Not Utilizing Employees

Old guard thinking, politics, high turnover, low

Cut parts being stored away from the place of use.