08 INTRODUCTION TO LEAN
AGENDA
1. Overview of Lean
3. Value Streams
4. Flow
5. Pull
6. Barriers to Lean
2
Partially based on the book:
“The Complete Lean Enterprise”
Beau Keyte and Drew Locher
Overview of Lean
3
BASED ON "THE COMPLETE LEAN
ENTERPRISE"
(BOOK BY BEAU KEYTE AND DREW
LOCHER)
Purpose:
Introduce Lean concepts
Introduce value stream mapping
Develop your ability to "see the waste" and "see the
flow"
Walk away with an implementation plan with specifics
to drive real results
Integrate Lean and Six Sigma
4
STARTING QUOTES
5
LEAN THINKING DEFINITION
Fundamental Objective:
To create the most value while consuming the fewest
resources
Define value from the customer’s perspective
Identify which process steps create value and which
are only waste (muda)
Work to eliminate the root causes of the waste and
allow for one-piece, continuous flow
6
RECOMMENDED READINGS
7
BENEFITS
Monday
Tuesday
Wednesday
8:00 AM 4-hour assembly time at standardised
assembly plant
41 Hours
Conversion of Raw Material to Cash
10
LEAN ENTERPRISE
Define Value and
ID the Value Stream Eliminate the unnecessary
steps in the value stream Make Value Flow
Normal vs. Abnormal
VA NVA
Kaizen
“Executive Summary of Lean Thinking” by Womack, J.P. and Jones, D.T. (1996)
11
EXPOSE WASTE TO DRIVE IMPROVEMENT
"MAKE PROBLEMS VISIBLE"
SEA OF INVENTORY
QUALITY LINE LACK OF
LONG
POOR PROBLEMS IMBALANCE HOUSE KEEPING
SET-UP
SCHEDULING TIME
MACHINE
VENDOR ABSENTEEISM COMMUNICATION
BREAKDOWN
LONG DELIVERY PROBLEMS
TRANSPORTATION 12
Partially based on the book:
“The Complete Lean Enterprise”
Beau Keyte and Drew Locher
13
INDUSTRIES DEPLOYING LEAN SIX
SIGMA IN
THE OFFICE ENVIRONMENT
Value Streams
15
VALUE STREAMS
“Whenever there is a product (or service) for a customer,
There is a value stream. The challenge lies in seeing it.”
(Womack & Jones)
• Raw Material to Customer – Manufacturing
• Concept to Launch – Engineering
• Order to Cash – Office Functions
Kaizen
• For product and/or service ownership beyond
function
• Assign responsibility for the future state mapping
and implementing lean value streams to line
managers with the capability to make change
happen across functional and departmental
boundaries.
• Value Stream Managers should make their progress
reports to the top manager on site.
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VALUE STREAM IMPROVEMENT VS.
PROCESS IMPROVEMENT
VALUE STREAM
Customer
Sales Engineering Purchasing
Service
Value Stream improvement looks at ALL steps, both value-added and non
value-added, required to complete a product and/ or a service from
beginning to end
Process improvement typically narrowly looks at improving the value
added processes only without context on the entire system or value
stream
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Design
Manufacturin
g
Technology
Industrial
Engineerin
Finance
g
Corrective
Action Finance
Board
Procuremen
t Finance
Manufacturin
g
Engineering
Procurem
ent
Tool
Engineering
Finance
Production
Control
BOUNDARIES
Quality
Engineering
Scheduling
Finance
Scheduling
Receiving
Manufacturin
Scheduling
g
Manufacturin
Procurem
Technology
g
ent
Manufacturing
Technology
Technology
Customer
Support
Scheduling
Finance
M&P
Value Delivery Process is not Facilitated by Functionality
Functional Organisation
Stres
Manufacturin
s
VALUE STREAM CUT ACROSS FUNCTIONAL
g
Technology
SP
Focusing on the Value Stream Ensures Process Oriented System Thinking
C
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LEAN ENTERPRISE
Value Added
Any activity that increases the market form or function of the
product or service. (These are things the customer is willing to pay
for.)
Non-Value Added (Waste)
Any activity that does not add market form or function or is not
necessary. (These activities should be eliminated, simplified, or
reduced.)
Business Non-Value Added ("Required Waste")
Any activity that is Non-Value Added but is required.
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DEFINING THE VALUE OF AN ACTIVITY
Is the Yes
Is the good Yes
Is it done Yes
customer willing or service being for the first
to pay? transformed? time?
No No No
Is it a
business
requirement?
No Yes
Business
Non-Value Added Value Added
Non-Value Added
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THE CONCEPT OF VALUE ADDED
Waste (≈85%)
Examples:
• Excessive Walking
• Waiting time
Examples: • Paper storage
• Type in information first time • Paper sorting
• Get paper • Correct defects
• Answer customer call • Transport
Business Non-
Value
Added (≈10 to
15%)
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8 TYPES OF WASTE – "DOWNTIME"
MANUFACTURING - OFFICE
back
23
DEFECTS - REWORK, CORRECTION, ERROR
IN DOCUMENTS
Manufacturing Office
Rework loops Rework loops (work
Missed process step arounds)
Workers do not Incomplete forms
understand job Workers who do not
Lack of training understand forms
Any part defect Lack of training
Missing components system
Out of specification Order entry error
parts Purchase Orders not
Any work requiring re- matching quotation
work Errors – typo’s,
misspelling, wrong
data
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Etc.
OVERPRODUCTION - DOING UNNECESSARY
WORK
Manufacturing Office
Running any product Working on next
that does not have an weeks items
immediate customer Do easy things first
demand Reports not in
unusable form
Working ahead
Too many consultants
Too many reports
Printing paperwork too
soon
Etc.
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WAITING
Manufacturing
Unbalanced operations
Office
Operators idly watch
Unbalanced functions
automated machines
(P.C.’s.) Long and inconsistent
lead times
Machine downtime
Customer demand
Long and inconsistent lead
fluctuations
times
Undisciplined
Continual production
meetings
schedule fluctuations
Waiting for information
Undisciplined
or "Expert"
meetings
System downtime
Waiting for
information or Waiting – for
"Expert" information, at
meetings, etc.
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NON-ENGAGING EMPLOYEES,
UNUSED PEOPLES SKILLS AND CREATIVITY
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TRANSPORTATION – TRANSPORT OF
DOCUMENTS
Office
Manufacturing
Any non-value added
Any movement of moves of documents
product (i.e. between processes
movement between
Send papers to
departments)
archive
Send physical
documents between
locations
People travelling
between locations
Travel to other
locations to get papers
Movement of
paperwork
Etc.
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INVENTORY - BACKLOG IN WORK QUEUES
Manufacturing Office
Batch processing Batch processing
Forecasting - weekly Weekly schedules
schedules Consolidation of multi-
Work in process site financials
Finish goods inventory Full in baskets
Obsolete
databases/files/folders
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MOTION
35
31
Bench
Cluttered work areas
Press
21
19
23
Tool
Box 26
14
22 8
2
24
4 9
Trash
6 10
39 3018
13 12 16 20 34 38
Parts Rack
Etc.
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EXTRA PROCESSING
Office
Standards unknown /
Manufacturing unclear to operators
Any processing not
Customer specifications
required by the
vague or fluctuate
customer
Output reviewing and re-
Manufacturing to a
reviewing occurs
tighter tolerance than
required Functional departments
have unaligned goals and
poor communication
Re-entering data
Too many signature levels
Unnecessary e-mails
Etc.
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CLASS EXERCISE: IDENTIFYING WASTE
32
Partially based on the book:
“The Complete Lean Enterprise”
Beau Keyte and Drew Locher
Flow
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CUSTOMER/SUPPLIER CONNECTIONS
Requests through phone, paper, computer, etc.
B C
B C
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SIMPLE AND SPECIFIC FLOWS
A C E
B D F
the flow is NOT simple and specific
A B C E F
the flow is simple and specific
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THREE TYPES OF FLOW
• Paperwork
• Electronic documents
• Information bit
• Messages
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MANUFACTURING FLOW – BEFORE LEAN
operations GRINDER
GRINDER
GRINDER
DRILL
DRILL DRILL
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MANUFACTURING FLOW – AFTER LEAN
U-Shaped one-piece flow cell.
Maximise value stream efficiency and expose problems.
PART FLOW
• Batch size of 1
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SMALL BATCHES OF WORK
No Good
Important:
Eliminate all reasons to "batch"! Even Better: Every Type Every Hour
Discipline to flexible processing!
7AM: 3A, 2B, 3C
9AM: 4A, 2B, 2C
39
Partially based on the book:
“The Complete Lean Enterprise”
Beau Keyte and Drew Locher
Pull
40
PULL VS. PUSH SYSTEMS
Push
Resources are provided to the consumers based on
forecasts, schedules or "when we get to it."
Pull
A method of controlling the flow of resources (people,
information) based on pre-establish rules, and actual
status of the system at any time.
41
PULL SYSTEMS
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PULL SYSTEM EXAMPLES
43
PULL SYSTEM EXAMPLE
FIFO Rules
1. Process all orders in queue in a first-in-first-
03, 3:00PM out (FIFO) basis.
2. The "supplying" process should stop when
1:00PM the maximum allowable number of orders is
reached. The "supplier" can perform other
activities, or can assist the "customer"
10-1-03, 9:00AM
process.
3. The supplying process should continue when
the minimum number of orders is reached.
Maximum = 3 orders
Minimum = 1 order
44
Partially based on the book:
“The Complete Lean Enterprise”
Beau Keyte and Drew Locher
Barriers to Lean
45
CHARACTERISTICS OF OFFICE WORK TODAY
Functional Silos
Org Chart Budget
Own set of language that does not have its roots in manufacturing
Positions are based on organisation structure rather than work
flow
The budget process does not promote systems thinking
Work flow is trapped in functional silos and delayed by hands off
and approvals
Each office process has a language all its own foreign to
traditional lean speak
Resources are not allocated by process deliverables
46
Different Ways of
Implementing Lean Efforts
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Slide 47
IMPLEMENTATION OF LEAN
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1) VALUE STREAM MAPPING
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2) LEAN KAIZEN WORKSHOP
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TYPICAL LEAN KAIZEN WORKSHOP
(TYPICAL AGENDA)
PREWORK EVENT WEEK POST EVENT
Countermeasures
We do these (LM Tools)
REFRESHER
TRAINING REVIEW REVIEW
CLASSROOM PROGRESS PROGRESS
TRAINING TO-DO LIS T TO-DO LIS T
D O C U MEN TIN G REALITY DOCUMENT
TIME OBS ERVATIO N REALITY SUMMARIZE, PRESENT, IF NECESSARY,
AND CELEBRATE EVENT CLOSURE:
ID THE EVENT S UMMARY TO-DO LIST
GOALS AND RESULTS
WASTE
G O ALS
VERIFY
DRIVERS
G O A LS /
PREPARE D R IV E R M E A S U R E
M A T R IX TOOLS MAKE CHANGE CHANGE
PD PLAN
DRIVERS
DR IV E R ME A S UR E /
MATRIXES TOOLS
CO UNTER ME A S UR E
COUNTER MA TRIX
D RIVERS
D R IV E R M E A S U R E /
C O U NT E R M E A S U R E MEASURES
M A T R IX
N QUANTIFY DO IT AGAIN! VERIFY
PREPARE EVENT REALITY RESULTS CHANGE
W LE AN E
OBJECTIVES CHECK ?
QUANTIFY
EVENT S UMMARY TEAM
S
TEAM TEAM RESULTS
GOALS AND R ES ULTS T O- DO L IST
LEADER
TO - DO L IS T
TO -DO LI S T
LEADER LEADER
MEETING WITH MEETING WITH MEETING WITH MAKE THIS THE
CONSULTANT CONSULTANT CONSULTANT NEW
STANDARD
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3) TOOL KAIZEN
Example:
Office 5S
Kan-ban system
Standard Work
Poka Yoke
Etc.
Example:
Inventory level reduction
Lead-time reduction
Quality Inspection reduction
Non-value added operations elimination
Etc.
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