Professional Documents
Culture Documents
Advanced Lean
Agenda
Lean Overview ~ Recap.. Lean Methodology Lean Toolkit Lean Deployment Lean Resources
Advanced Lean
Lean History
Lean Explained Lean Benefits
Lean Usage
Lean Basic Toolkit
Advanced Lean
Lean History
TOYOTA
Toyota Production System Just-in-Time
Recap
Jidoka
People
People People
Heijunka
Level Loading Sequencing Stability
Lean Thinking
A principle driven, tool based philosophy that focuses on eliminating waste so that all activities/steps add value from the customers perspective.
Recap
Higher Customer Satisfaction Shorter Lead Time Higher Flexibility Higher Quality Lower Costs Higher Employee Satisfaction
Lean Explained
What is Lean?
A strategy, philosophy, process and leadership approach for operating in a superior way. Results include: Reduced cycle times (product development and production) Increased quality Reduced costs and inventory Increased capacity potential
Recap
Lean Explained
Recap
Advanced Lean
Recap
Bigger profit
Advanced Lean
Lean Benefits
Cycle Time
Wait Time (non value add)
Recap
Before After
Productivity Same work completed in less time Customer satisfaction Profit Customer responsiveness Capacity Quality
Cost/Chaos
Cash flow
On time delivery
Cycle time
Lean Usage
Lean vs. Six Sigma
Methodology Strengths
Recap
Define
Measure
Lean
Analyze
Six Sigma
Improve
Control
Six Sigma
Lean
Many Tools for Driving Change Mixed Model Plan, Kan Ban, Visual Management
Lean Usage
When do I use Lean?
Six Sigma Project
Recap
Hybrid
AWO
Effort
Effort
Time
Effort
Time
Time
Average ~ 4 Months
Average ~ 4 Months
Average ~ 1 Months
Lean Usage
Lean vs. Six Sigma?
Lean Six Sigma Simple or Wing to wing Complex and Focused
Identifies problems in the flow
Recap
Breadth
Helps identify steps that dont add value and provides tools to eliminate them
Lean
Lean
Six Sigma
Depth
Improves the capability of steps that do add Improving the capability can eliminate additional steps value
Six Sigma/Lean
Lean
Success Factors/ Impact
Energizing Empowering Team work, Boundary less / Open mindset Passion for improvement Intuition / Action Customer focus
X
GE Values
Lean Usage
So, why do I need Lean?
Principle
Recap
Toolkit
Process
Solutions
Simple
Complex
Lean!! Six Sigma
Causes
Known Unknown
Basic tools
Tool
Value Stream Mapping, other lean tools, etc.
Challenge
More waste reduction Real continuous flow Flexible workforce Less variance Less waste
Old situation
Issues
Inventory Waiting Defects No flow in the value stream.
Results
Reduction of waste Learned to see the flow Couple of improvements
Remaining Issues
No real continuous flow Still significant amount of waste.
Advanced Lean
Lean Toolkit
Recap
Level 1
Level 2
Reduce Variability Control the Process
Tool Sophistication
Value Stream Mapping Standardized Work Intro to Continuous Flow Intro to Pull Production
Recap
Benefits Realized
Recap
Visual Management
Advanced Lean
5S
5S A Framework to create and maintain your workplace
1. S: SORT (Organization) Distinguish between what is and is not needed 2. S: SET IN ORDER (Orderliness) A place for everything and everything in its place 3. S: SHINE (Cleanliness) Cleaning and looking for ways to keep it clean 4. S: STANDARDIZE (Adherence) Clearly define Tasks and Procedures 5. S: SUSTAIN/SYSTEMIZE (Self-Discipline) Stick to the rules, scrupulously
Recap
Muda ~ 7 Wastes
MUDA Lean is a way to continuously eliminate waste
The Seven Deadly Wastes
Motion
Recap
Examples
Incorrect Layouts of office, factory, etc. Lack of Proximity Of Machines Off-line Resources Watching Machines Work Long Set-ups and Lead Times Large Batches and Inventory Planning Full Utilization of Machines and Labor Producing More Goods than Marked Demand Poor Machine Maintenance Unnecessary Processing Steps Longer Lead Times Long Delays for Troubleshooting Costly Rework Dissatisfied Downstream Customers High Stocks of Raw Material, WIP, & Finished Goods Additional Space Requirements Clutter Unnecessary Movement Extra Handling Moving Inventory
People
Process
Defects
Inventory
Product
Transportation
Recap
BETTER
Facilitation > Make work simpler to perform Detection > Detect the error at the defect source
GOOD
It is good to do it right the first time; it is even better to make it impossible to do it wrong the first time.
Advanced Lean
Recap
Seeing is Believing
Advanced Lean
Advanced Lean
LEAN OFFICE
LEAN ENTERPRISE
1 Specify Value
Map all of the stepsvalue added & nonvalue addedthat bring a product of service to the customer
The complete elimination of waste so all activities create value for the customer
5 Work to Perfection
3 Establish Flow
The continuous movement of products, services and information from end to end through the process
Nothing is done by the upstream process until the downstream customer signals the need
4 Implement Pull
Specify value from the standpoint of the end customer Ask how your current products/services and processes disappoint your customers value expectation:
Waste:
Activities that add no value, add cost and time Symptoms; need to find root causes and eliminate them 7 types of waste
price?
quality?
reliable delivery?
rapid response to changing needs? fundamental definition of the product?
Incidental Incidental Work Work
Pure Waste
Value Value
Value
Identify all of the steps currently required to move products from order to delivery
Value stream
All activities, both value added and non-value added, required to bring a product (or provide a capability) from raw material (initialization) into the arm of the customer
Challenge every step: Why is this necessary? Would the customer think the product is worth less if this step could be left out?
Many steps are only necessary because of the way firms are organized and previous decisions about assets and technologies
3.
Order to cash
3. Establish Flow
A
Advanced Lean
B
Cycle Time= 30++ Min (weeks)
C
Applying the right tools at the right stage
A B C
Cycle Time= 12 Min
A system of cascading production and delivery instructions in which nothing is done by the upstream supplier until the downstream customer signals the need
Through lead time compression & correct value specification, let customers get exactly whats wanted exactly when its wanted: At the pull of the customer/next process Using signals (kanbans)
Okay
supplier
customer
Continuous improvement leads to innovation Use root cause analysis to solve problems promptly and permanently. Make objectives visible
Future State
Current State
Original State
Level 1
Level 2
Reduce Variability Control the Process
Tool Sophistication
Value Stream Mapping Standardized Work Intro to Continuous Flow Intro to Pull Production
ENTERPRISE
Advanced Lean
Ask a set of key questions and draw a Future State map of how value should flow
Help us see the sources of Waste and eliminate them
it ties together lean concepts and techniques helps you avoid "cherry picking"
it forms the basis of an implementation plan it shows the linkage between the information flow and the material flow
Map the current state - Identify all the actions that dont create value. Challenge every step
Develop and map concepts for the future state as a management team
5. Eliminate waste by executing the plan 6. Expand the scope to other areas
L L
NL
EXITS
c
IWP
c
DMS
FCS
c
Sentricx
c
Hold
4 Hours + 4 Mins
10+5+5 Mins
3-9 DAYS
10 + 4 Mins
5 - 11 DAYS
Wait Time
Wait Time: up to 14 days
= Routed
Advanced Lean
Advanced Lean
Standardized Work
ENTERPRISE
Advanced Lean
Standard Work
Why have Standard Work?
1.
Waste Elimination
2.
Advanced Lean
Standard Work
The combination of people, information and material to carry out an operation in the most efficient way Normal vs. Abnormal When normal and abnormal work activities are undifferentiated, waste almost inevitably occurs. Standard Work provides an efficient framework in which to determine when an abnormality has occurred so that it can be addressed.
Office Processes
Often poorly defined Examples: Standardize Input Hand-off can create huge waiting time. Reduce time by standardization
Flow effect
Provide clarity about activities Reduce process variance Makes process reliable Exposes more waste
Identify Problems
Normal
Advanced Lean
vs.
Provides the Basis for Kaizen
Abnormal
Why?
Standard Work
The devil is in the details. If you do not specify the standard, you allow wastes to occur that could be eliminated. But more important, it hinders learning and improvement in the organization. Specify content, sequence, timing and outcome to prevent and to expose waste. However, keep in mind that the details have to improve the flow of value as drawn in a value stream map.
Advanced Lean
Levels of Standardization
Two levels for standardization for every type of item
A.
B.
Activity
Connection between activities
Connection
Activity
Customer
Advanced Lean
Standard Activity
Activity
Customer
Standard Activity have to make the activity direct and unambiguous. On a detailed level tasks/decisions/etc should be specified. When designing a Standard Activity keep in mind the follow elements: 1. 2. 3. TAKT time Work sequence Standard work in process
Advanced Lean
Create Standard Work around Takt Time, keeping in mind the changes in Takt Time. TAKT Time = the frequency at which a product or service must be competed in order to meet customer needs Rate of Customer Demand = Rate of Producing/Servicing TAKT time formula:
Available Time
(Customer or Forecasted Demand)
Office Processes
Check any time if youre on schedule: Daily 400 in-voices. It is 13:30, are we on schedule?
Required Output
Time 60
Takt Time
(60)
Advanced Lean
(60)
(60)
(12)
Person
Orders
Standard Work What has to be done? In what sequence? How much time can it take?
Standard Work / Combination Sheet
New / Rev Organization Area Page 1 of Supervisor
Work Sequence The order in which an person performs a series of repetitive tasks. It should be differentiated from the processing sequence, which is the order in which the part is processed.
Date
2/6/02
AMX
Operator
X-Ray
Step No.
Station 1 & 2
Sec ( ) Manual
J. David
Time Min (X ) Auto Hr ( ) Travel
Shannon
~~~~~~~~
80
Operation Name
10
20
30
40
50
60
70 74
1 2 3 4 5 6
Check Motor Issue DHR Install Gen. Housing Install Clips Install Term. Strip Install/Wire Latch
3 2 10 5 6 4 10
3 2 5 4 6 4 6
Page
of
Tubing
CFM Cell
Area
Fern Bissonnette
Supervisor
Production Line Cell 6 Date 2nd Qtr. 01 Part Number All Parts
Operator
Part Name
All Tubes
Orbital Weld
Flex
Weld
End Finish
End Finish
Weld
End Finish
Scope of Operations
Totals
40
30
Operation Time
T/T
Quality Check
27 - avg lot = 6
Turns
Total Manual & Travel Time Takt/Rate Time Operator Man/Travel Time DPU's
100/Day
Finished Goods
Standard Work Sheet and Standard Work/Combination Sheet defines the Work Sequence
Advanced Lean
Set a Standard WIP in your Cell, if applicable to your office process. The minimum Work in Process (WIP) required to perform repetitive operations, and maintain a continuous flow. Controls the in-process inventory to ensure an even and controlled process flow.
Standard Connection
Connection Customer
It creates a clear supplier-customer relationship. This will reduce the possibility for variance, which increases the quality standard in the office.
Advanced Lean
Advanced Lean
Standard Work helps to reduce variance allow the flow of value. Less variance improves the capability to create real continuous flow.
Normal
Abnormal
Advanced Lean
Standard Work is the prerequisite for good visual management. It sets the standards for the work. Visual management has the objective to make abnormalities visual, so actions can be make right away.
Kaizen
Standard Work provides a basis for improvement, because it exposes waste by abnormalities. These abnormalities are then subject to Kaizen Events to improve the processes.
Standard
Not Here
Advanced Lean
Summary
Standard Work prevents waste to occur. exposes waste and is the basis for continuous improvement. increases your flexibility. Two levels of Standardization 1. Standard Activity 2. Standard Connection Dont Manage a Standard Detect the Abnormality
Advanced Lean
ENTERPRISE
Advanced Lean
Single-Piece-Flow in a Cell
Single-Piece-Flow
Carrying out one-piece-at-a-time processing in order to eliminate stagnation of work (queue) in and between processing steps.
Cell
An arrangement of people, systems, items, and methods with the processing steps placed right next to each other (physically or digitally) in sequential order, through which parts are processed in a continuous flow.
Physical Cell
Incoming Forms
Output
Digital Cell
Advanced Lean
Batch Production L L K L J J
* Single Piece Flow productivity can be improved by balancing processes versus Takt Time ** Changeover time impact can be reduced by SMED or reducing changeover frequency, but, in this case, by increasing finished goods inventory.
Advanced Lean
Where to start?
Creating Single-piece-flow
1st time Value Stream Mapping Process Level
Prerequisites
A. Value Stream Mapping See the flow
Across Companies
Advanced Lean
Supplier
Customer
Yes
A main characteristic for office processes is that the customer of the process is often the supplier of the needed information for doing the whole value stream, as well. Therefore, the customer often has to wait for the whole lead time of the process.
Start within the area with the biggest potential of lead-time reduction.
No
Start with the pace-maker process. That are the process steps in the value stream that are closed to the customer.
Advanced Lean
Actual Work
Then analyze actual work to be done in the cell.
Work Distribution
Distribute the Work among the People
People activities
System activities Item design Lay-out
Actual Work
What are the work elements necessary to make one piece? What is the actual time required for each work element?
Work Distribution
Advanced Lean
How to use your people efficiently? How will you distribute the work among the people?
1. Flexibility
A&B
A&B
Advanced Lean
A B C
X X X X
X X X
X X
X X
X X
After analyzing, you might come up with the conclusion to have step 5, 6 and 7 in one cell.
Time
Max. ~ 30%
TAKT time:
Available Time
Required Output
(Customer Demand)
Advanced Lean
Each process consist of a series of work elements. By collecting all the work elements in the cell, you get the total work content of the cell.
Process Study
Process Steps
Process
Observer
Date/Time
Operator
Work Element
Observed times
Low est System Repeatable Cycle Time
Notes
Advanced Lean
Paper Kaizen
First analyze the Total Work Content, and design improvement on paper
Current
240 210
J I
180
Approach of immediately leaving out wasteful steps. You eliminate some waste on paper before implementation.
K
First understand all the work elements that make the total work (Current)
Time
150 120
H G F
I
H G F
90
E D C B
then have a critical look on the work elements and design improvement on paper (Improved) to reduce wastes.
60
E D B A
30
A
Advanced Lean
210
180
150
I
120
90
H G F E D B A
1
K K H G F
60
30 0
D B A
1
I
3
= Operator
Advanced Lean
Capable?
Available? Adequate? Flexible?
Is it working in batch or single piece? Easy to replace (price)? Easy to maintain? Easy to use? Is it optimal design to support continuous flow?
Should you have one integrated system, or different small systems connected by a simple workflow tool?
Advanced Lean
For example
Pay-roll Policy request processing Customer Service Centers
Advanced Lean
Cell Layout
How can the process be laid out so one person can make one piece as efficiently as possible?
Avoid isolated islands of activities. Minimize inventory accumulation between processes. Remove (physical and digital) obstacles for the operator Make value creating activities easily accessible. Design good ergonomics. Keep manual, operator-based work steps close together to allow flexible work element distribution.
Advanced Lean
Incoming Forms
Out
or Digital
A cell can also be designed digital. Think of setting operators work in a flow by aligning systems. Workflow IT can help to let differ systems work together in a flow.
Advanced Lean
Number of operators:
Example
134
45 - 3
Option A
Balance the line
45
Buffer for variance Takt Time 45 sec.
Option B
Lean Option
30
Continuous Improving More variance reduction, reduces buffer. Eliminate by reducing more waste.
1 2 3 4 1 2 3 4
15 0
Advanced Lean
Specialize
2x Takt Time
Do it all
75
H G F E H G F D B A
2 1
H G F E D B A
2
60
45 30
E D B A
Incoming Forms
15 0
1
Out
Advanced Lean
Implementation Stages
Implementing the Flow consists of four stages:
1. 2. 3. 4. Initial Process Design Mock-up Debugging (!) Sustaining the Flow
Mock-up -2 days
Sustaining
Avoid making things permanent, until stage 4, because it is a real learning-by-doing implementation.
Advanced Lean
ENTERPRISE
Advanced Lean
Just-in-time focused
Controls production system and limits inventory Simplifies or eliminates documentation
Advanced Lean
Work Authorization Push: Work is immediately sent to downstream user upon completion Pull: Work is not forwarded to next operation until requested
Advanced Lean
Inventory :
SHORTAGE
SHORTAGE
WIP = ?
PROCESS #3
Breakdown
Yield=2/h
RAW MATERIAL
Yield=1/h
WORK IN PROCESS
Yield=2/h
FINISHED GOODS
Pull System :
PROCESS #1 PROCESS #2
Standard WIP = 3
PROCESS #3
Breakdown
Yield=2/h
RAW MATERIAL
Yield=1/h
WORK IN PROCESS
Yield=2/h
FINISHED GOODS
Pull Characteristics
Standardized application Visibility Simplicity Standard lot sizes
Discipline
Versatility/Flexibility
Advanced Lean
Supermarket
Material
2 1 9
2nd LEVEL SUPPLIER
10
9
2nd LEVEL SUPPLIER
10
PROCESS #3 PROCESS #2 PROCESS #1
9
2nd LEVEL SUPPLIER
10
Advanced Lean
Pull Pull
Pull
Min>
Advanced Lean
Heijunka
Heijunka is the foundation of the Toyota Production system, and is the process of leveling and sequencing an operation.
There are three main elements of Heijunka 1. 2. 3. Leveling: Overall leveling of a process to reduce variation in output Sequencing: Managing the order in which work is processed (Mixed Production) Stability or Standard Work: Reduce process variation
Customer Demand
Leveling
Heijunka
Kanban
A Kanban is a signal used by a downstream operation to request a material replenishment
Kanban
Supplying Process
Required Part/ material
l l
Using Process
Cards Carts
l l
Bins Labels
Kanbans are used to signal the supplying process that more material is needed
Advanced Lean
Jidoka
Jidoka allows machines/processes to operate autonomously by shutting down automatically if an abnormality occurs. This prevents defective products from passing to the next process.
There are two main elements of Jidoka 1. Autonomation: Automation with human intelligence operate autonomously
2.
Abnormal
Just-in-Time
Heijunka
Jidoka
Lean Overview Lean Methodology Lean Toolkit Lean Deployment Lean Glossary Lean Resources
Advanced Lean
Lean Deployment
Lean Deployment Roadmap
1. 2. 3. 4. Set the strategy Find a change agent (how about you?) Get the knowledge Seize or create a crisis to motivate change
5.
6. 7.
Advanced Lean
Lean Deployment
Investment Required
Expense 5% Technical 30%
Cultural 65%
Lean Deployment
Key factors for Success
1. 2. 3. Leadership commitment Ramp up with results Consistency of purpose
4.
5. 6. 7. 8. 9. 10. 11. 12.
Knowledge/Training
Wide spread Communication Change management Team responsibility Metrics Reward and recognition Roadmap for Execution (Discipline) Balance between short term and long term Best practice sharing (Community)
13.
Lean Deployment
Kaizen: Change for the better
Continuous incremental improvement
Continuous slow Data driven: visual and quantitative
Lean Deployment
Kaikaku
Vision
Improvement Time
Lean Deployment
Value Value Streams
PROCESS Lean (Elimination of Waste) Front Lines FLOW Lean (Flow and Pull Improvement) Process Lean Lean for waste elimination & process efficiency Empowered teams for speed of execution Tap knowledge residing in grass root level . Simple Communication Focus Flow Lean Focuses establishing lean workflow Use of Technology for flow Wing to wing improvements Establish Pull With customer involvement Six Sigma for complex problems Senior Mgmt.
Flow
Pull
Perfection
Lean Deployment
Why some companies fail?
1. 2. 3. 4. 5. 6. Too busy managing day-to-day no time for continuous improvement and organizational learning Belief that past strategies and approaches will continue to be effective in the future Management through control and efficiency Organizing and managing through departments Using people as operational labor, not operational experts Let Lean Thinking be perceived as a downsizing exercise
Agenda
Lean Overview Lean Methodology Lean Toolkit Lean Deployment Lean Resources
Lean Resources
For all references on Lean training material, Lean Initiatives, Genpact Project examples, visit the Lean Community on the Genpact Support Central http://gecishome.gecis.ge.com/portal/page?_pageid=33,872304&_dad=portal&_schema=PORTAL
Advanced Lean
Got any Lean Improvements.. Upload it onto the Lean Workflow All approved Team & Individual ideas win Cheers
Advanced Lean
Closing Words Many unidentified problem areas exists within your processes
Lean methodology helps exposing those problem areas ~ Creating opportunity for improvement