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50478 Advanced Lean Training Manual Band 4

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50478 Advanced Lean Training Manual Band 4
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Advanced Lean Module

Advanced Lean

LEAN: Delivering value to Customers with shortest turn around time
Advanced Lean

Agenda
• Lean Overview ~ Recap….. • Lean Methodology • Lean Toolkit • Lean Deployment • Lean Resources

Advanced Lean

Lean Overview ~ Recap….

 

Lean History
Lean Explained Lean Benefits


 • • • •

Lean Usage
Lean Basic Toolkit

Lean Methodology Lean Advanced Toolkit Lean Deployment Lean Resources

Advanced Lean

Lean History
TOYOTA
Toyota Production System Just-in-Time

Recap…

Jidoka

• Single Piece Flow
• Pull Production • TAKT Time Production

People
People People
Heijunka
• Level Loading • Sequencing • Stability

• Autonomation • Built-In Quality • Stopping at Abnormalities

Some Key Lean Concepts developed at Toyota
Advanced Lean

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…

Lean Thinking is all about continuous waste elimination !

Imagine Office Processes with:
• • • • • •
Advanced Lean

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…

 Improved customer service
 High levels of worker involvement, ownership and commitment  Improved financial returns

Lean concepts apply across all processes and industries
Advanced Lean

Lean Explained

Recap…

The conventional way: Price = cost +Profit
Increase profit by Price Increase

Price to sell Bigger profit Some profit Cost to produce

But, may lose customers!

Advanced Lean

Lean Explained The new way: Price - cost =Profit
Increase profit by Cost Reduction

Recap…

Price to sell Some profit Cost to produce

Bigger profit

Advanced Lean

Lean Benefits
Cycle Time
Wait Time (non value add)

Recap…

Before After
Productivity Customer satisfaction Profit Customer responsiveness Capacity Quality
Cost/Chaos

Work Time (value add)

Same work completed in less time

Cost Defects Lead time Inventory Space Waste!

Cash flow
On time delivery

Cycle time

Relentless Focus on Reducing non value adding activities
Advanced Lean

Lean Usage
Lean vs. Six Sigma
Methodology Strengths

Recap…

Define

Measure

Lean

Analyze

Six Sigma

Improve

Control

Six Sigma

„ True VOC is Powerful

„ Confirms Data Quality

„ Data Driven Analysis

„ Few Tools to Create Change in Critical X’s

„ Few Tools or Direction

Lean

„ Value Stream Mapping . . . Boundaryless & MultiGenerational

„ Standard Work & Target Sheets . . . Assumes Data is Good

„ Observation and Intuition Based Analysis . . . PQ, PR, TAKT Time

„ Many Tools for Driving Change „ Mixed Model Plan, Kan Ban, Visual Management

„ Communicative „ Centered on Stable, Repeatable Process „ Automation

Apply Any Tool from your Quality Tool Box
Advanced Lean

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 ~ 1½ Months

Lean For Quick Fixes….Six Sigma For Complex Processes !!
Advanced Lean

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 don’t 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

X

Lean
Success Factors/ Impact

Energizing Empowering Team work, Boundary less / Open mindset Passion for improvement Intuition / Action Customer focus

X
GE Values

Lean: Strengthens GE’s journey to Excellence
Advanced Lean

Lean Usage
So, why do I need Lean?
Principle

Recap…

New ways to think about problems

Toolkit

New problem solving tools and concepts
An improvement methodology focused on action

Process

Solutions
Simple

Complex
Lean!! Six Sigma

Causes

Known Unknown

Just Do It!! Ask an Expert!!

We Need Lean to be Leaner Quickly…Let us start it!!
Advanced Lean

Where are we going…
Advanced tools
Tool
• Creating Continuous Flow • Pull production

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.

Processes full of waste

Advanced Lean

Lean Toolkit

Recap…

Level 1

Level 2
Reduce Variability Control the Process

Tool Sophistication

Expose the Waste
 5S  MUDA  Mistake proofing  Intro to Value Stream Mapping  Visual Management

 Value Stream Mapping  Standardized Work  Intro to Continuous Flow  Intro to Pull Production

Time / Cultural Maturity

Applying the right tools at the right stage
Advanced Lean

Lean Tools Overview
A number of Lean Tools and Techniques are available
Actions
Bring Organization & Cleanliness to work area Understand Value Implement pull-based flow Reconfigure work areas Institute continuous improvement philosophy

Recap…

Tools and Techniques
5S Framework Value Stream Mapping Kanban, Just-in Time U-Shaped Cells Kaizen Events

Benefits Realized

Appropriate Tools and Techniques are to be used depending on the need
Advanced Lean

Lean Tools Description
Exposing the Waste ~ Recap…..
 5S  7 Wastes  Mistake proofing

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…

Implementing the 5S is often the first step in Lean Transformation
Advanced Lean

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

Waiting Overproduction Processing

Process

Defects
Inventory

Product

Transportation

At the end, everything results in Cost!!
Advanced Lean

Mistake Proofing Overview
„ A technique for eliminating errors „ Making it impossible to make mistakes
BEST

Recap…

Elimination > Eliminate the possibility of error
Replacement > Substitute a more reliable process

BETTER

Facilitation > Make work simpler to perform Detection > Detect the error at the defect source

Use the highest level possible for the application.

GOOD

Mitigation > Minimize the effect

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

Visual Management Overview
Why Visual Management ….

Recap…

• Demonstrate how we manage our processes …Consistent Communication

• Excite customers/ stakeholders walking the floor … Visual Management
• Transparent view of Performance … Shared Ownership • Escalate abnormalities… Quicker Resolution • Decision making @ working level … Empowerment • Showcase Successes … Create a sense of Pride

Seeing is Believing
Advanced Lean


Lean Overview … Recap
Lean Methodology  Five Lean Principles

„ „ „

Lean Advanced Toolkit
Lean Deployment Lean Resources

Advanced Lean

Five Lean Principles
Lean Enterprise
Raw Materials Tier 2 Suppliers Tier 1 Suppliers General Electric Customer

LEAN OFFICE

LEAN ENTERPRISE

Lean Enterprise: Maximizing Value Wing to Wing
Advanced Lean

Five Lean Principles
Lean Thinking
The Fundamental Objective
Provide perfect value to the customer through a perfect value creation process with zero waste in:  Design (concept to customer)  Build (order to delivery)  Service (order to cash)

The Fundamental Insight
 Focus on each product and its value stream rather than organizations, assets, process technologies, and career paths  Ask which activities are waste and which truly create value

 Enhance value & eliminate waste

Lean: Fundamentally Change how we do business
Advanced Lean

Five Lean Principles
Define value in from the customers perspective and express value in terms of a specific product

1 Specify Value

2 Map the Value Stream

Map all of the steps…value added & nonvalue added…that 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

The Tools get you there…The Principles keep you there
Advanced Lean

Five Lean Principles
1. Specify Value
A capability provided to a customer at the right time at an appropriate price, as defined in each case by the customer.

 Specify value from the standpoint of the end customer  Ask how your current products/services and processes disappoint your customer’s 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 •PureWaste Waste

•Pure Waste
Value •Value

Typical Operation: 1-10% Activities are Value Adding
Advanced Lean

•Value

Five Lean Principles
2. Map the Value Stream
“Whenever there is a product or service for a customer, there is a value stream. The challenge lies in seeing it.” (Womack, Learning To See)

 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 Main Value Streams:
1. 2. Raw material to customer Concept to launch

3.

Order to cash

Mapping the VS ‟ See the whole and improve the system
Advanced Lean

Five Lean Principles
 Require that every step in the process be:  Continuous movement of products, services and information through the various transactions from  Capable ‟ right every time (6 Sigma) end to end in the process  Flow appears impractical and illogical because we have been trained to think in terms of:  departments, silos  batches, queues  Available ‟ always able to run (TPM)  Adequate ‟ with capacity to avoid bottlenecks and over capitalization (right-sized tools)

3. Establish Flow

Line up all steps that truly create value in a rapid sequence

 efficiencies and backlogs

Batch Processing ‟ 1 minute per piece

Continuous Flow ‟ Make One Move One

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

Five Lean Principles
4. Implement Pull
Nothing is done downstream until required upstream

 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 what’s wanted exactly when it’s wanted:  At the pull of the customer/next process  Using signals (kanbans)

Okay

One more please!

supplier

customer

Pull: Customer Centric
Advanced Lean

Five Lean Principles
5. Work to Perfection
 There is always more waste  People learn and exercise more creativity
 Involve employees in the process, training them as you proceed.

A continual cycle of process improvements

 Continuous improvement leads to innovation  Use root cause analysis to solve problems promptly and permanently.  Make objectives visible

Next Future State

Future State

Current State

Original State

Continuous Improvement never stops
Advanced Lean

Lean Advanced Toolkit

Level 1

Level 2
Reduce Variability Control the Process

Tool Sophistication

Expose the Waste
 5S  MUDA  Mistake proofing  Intro to Value Stream Mapping  Visual Management

 Value Stream Mapping  Standardized Work  Intro to Continuous Flow  Intro to Pull Production

Time / Cultural Maturity

Applying the right tools at the right stage
Advanced Lean

Lean Tools Description
Reduce Variability Control the Process
 Value Stream Mapping
 Standardized Work  Introduction to Continuous flow  Introduction to Pull production

<Action Work Out>
Advanced Lean

Value Stream Mapping

L

E

A

N

ENTERPRISE
Advanced Lean

Value Stream Overview
View of the entire Supply Chain
SUPPLIERS YOUR PLANT OR BUSINESS CUSTOMER TO END USER

TOTAL VALUE STREAM

See the Whole Process from Start to Finish ‟ Wing to Wing
Advanced Lean

Value Stream Overview
„ „ Value Stream Mapping (VSM) is a pencil and paper tool that helps us see and understand the flow of material and information as a product makes its way through the Value Stream Follow the product or services path starting from the Customer and then move to the supplier and carefully draw a visual representation of every process


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

Looking at the process from a customer value perspective
Advanced Lean

Value Stream Mapping
Why Value Stream Mapping is a good place to start your LEAN journey • it helps you visualize more than just the single-process level, i.e. assembly, welding, etc. • it helps you see more than waste it helps you see the sources of waste in your value stream • it provides a common language for talking about manufacturing processes • it makes decisions about the flow apparent, so you can discuss 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

Forms the Blueprint for a Lean Implementation Plan
Advanced Lean

Value Stream Mapping
VSM Steps
Product Family „ Identify the Value Stream for every major product family/program. Concept to launch - Order to delivery

Current State Drawing

Map the current state - Identify all the actions that don’t create value. Challenge every step
Develop and map concepts for the future state as a management team

Future State Drawing
3 Implementation Plan

Develop actions and drive toward future state

After completion….look for other opportunities to improve
Advanced Lean

Value Stream Mapping
Current Future

Template ~ Create your own Value Stream Map

Identify AWO opportunities from the Value Stream map
Advanced Lean

Value Stream Deployment
Roadmap
1. Set the strategy 2. Find a change agent (how about you?)

3. Get the knowledge
4. Do an Action Work Out

5. Eliminate waste by executing the plan 6. Expand the scope to other areas

Don’t Wait!! ‟ “Opportunities multiply as they are seized”
Advanced Lean

Trace Collection Process: VSM
No Phones
GECFA Collections
GE Money Mainframe (Vision Plus) EXTERNAL AGENCY

L L

NL
EXITS

X

0-29 days past due accounts

Mainframe Workable/Non Workable V+,CPAC ,ICBS

c
IWP

c
DMS

c

FCS

c

c
Sentricx

c
Hold

4 Hours + 4 Mins

10+5+5 Mins

3-9 DAYS

10 + 4 Mins

5 - 11 DAYS

L = Locate NL = No Locate C = Call made
X

Wait Time
Wait Time: up to 14 days

= Routed

Value Add: ~ 35 Min

Reduce TAT from 3-9Days to Less than 4 days

Advanced Lean

Value Stream Map From GE Rail ~ AWO

Before Lead Time: 76 Days 59 Total Steps

After Process Flow Lead Time: 52.35 Days 59 Total Steps

Advanced Lean

Standardized Work

L

E

A

N

ENTERPRISE
Advanced Lean

Standard Work
Why have Standard Work?
1.

Waste Elimination

To make office process rules explicit
Establish the explicit methods for manual tasks with respect to quality, quantity, cost and safety. prevent wastes

2.

A tool for Improvement
There can be no improvement in the absence of standards. Abnormal situation show that something is going on. expose wastes

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.

A perfect example of Standard Work
1. 2. 3. 4. Each worker understands their task. All tools and equipment are at arms length Standard work has been practiced to perfection Continuous observation and analysis drives continuous improvement

Types of Waste Eliminated „ Searching „ Finding „ Selecting „ Transporting „ Waiting

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

Standard Work: Takt Time
Element 1

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 you’re on schedule: Daily 400 in-voices. It is 13:30, are we on schedule?

Required Output

Time 60”
Takt Time

It’s 8:30 am. How are we doing?
7 am 8 am 9 am 10 am 11 am noon

(60”)
Advanced Lean

A

(60”)

B

(60”)

C

(12”)

D

Person

Orders

Standard Work: Work Sequence
Element 2

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.

Standard Work Sheet
90

1

Date

2/6/02

Production Line Part Number

AMX

Operator

X-Ray
Step No.

Station 1 & 2
Sec ( ) Manual

J. David
Time Min (X ) Auto Hr ( ) Travel

Standard Work Combination Sheet
Production Req'd Takt/Rate Time

Part Name Manual Auto Travel Wait

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

Use this Template

New / Rev Organization

Page

1

of

1

Tubing

CFM Cell

Area

Fern Bissonnette

Supervisor

Production Line Cell 6 Date 2nd Qtr. ‘01 Part Number All Parts

Operator

Standard Work Sheet
Weld

Part Name

All Tubes

Orbital Weld
Flex

Weld

End Finish

End Finish

Torch Braze Mech. Clean Mech. Clean Mark Hydro Test

Outside Cell FPI X-Ray EDM

7 Jumper Wire to Filter

Weld

End Finish

Scope of Operations
Totals

40

30

Operation Time

T/T

From: Raw material To:

Quality Check

Safety Standard Precaution Work-in-Process

27 - avg lot = 6
Turns

# Lots of Standard Work-in-Process

Total Manual & Travel Time Takt/Rate Time Operator Man/Travel Time DPU's

100/Day

Finished Goods

Physical or digital design

Standard Work Sheet and Standard Work/Combination Sheet defines the Work Sequence
Advanced Lean

Standard Work: Standard WIP
Element 3

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 WIP should be kept as low as possible.
Advanced Lean

Standard Connection
Connection Customer

Hand-offs (connection) are a big cause of waste in the office.
The connection between two activities (hand-offs) is one of the biggest causes of waste in the office. Make sure that to standardize the connect between activities. Direct and unambiguous specifying: „ …people involved „ …form and quantity to be provided „ …way requests are made by each customer „ …expected time in which the requests will be met (!) „ …

It creates a clear supplier-customer relationship. This will reduce the possibility for variance, which increases the quality standard in the office.

Advanced Lean

Standardization and Flexibility
Don’t “Manage” a Standard … Detect the Abnormality
Standardization makes abnormalities soon appear. By looking at the root causes of the abnormalities, you understand what is going on, and give the possibility to adjust. Two solutions: (1) eliminate the abnormality, or if not possible (2) adjust the standard to the new situation. Standardization increases your awareness of changes. And through this awareness you are able to adjust to these changes quickly, which increases your flexibility. Standardization helps to create a flexible multi-disciplinary workforce. It is easy for a person to take over work from another person.

Advanced Lean

Relation with other Lean Tools
Value Stream Mapping
First implement the improvements of the Future State (e.g. continuous flow, 5S, etc.). Then use Standard Work to standardize all the activities in and between the processes. It will expose waste (by abnormalities) and also prevents waste (keep everybody focused on normal way of working).

Creating Continuous Flow

Standard Work helps to reduce variance allow the flow of value. Less variance improves the capability to create real continuous flow.

Mistake Proofing / Poke-Yoke
Standard Work is the prerequisite for implementing Mistake Proofing. Mistake Proofing has to prevent to have defects going further on the line. If no standard, then defects difficult to detect

Normal

Abnormal

Advanced Lean

Relation with other Lean Tools
Don’t “Manage” a Standard … Detect the Abnormality
Visual Management
Look Here …

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 Don’t “Manage” a Standard … Detect the Abnormality

Advanced Lean

Introduction to Single-Piece-Flow (Continuous Flow)

L

E

A

N

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.

A

B

C

A

B

C

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 Vs Single Piece Flow
Batch Single Piece Flow

From: The Toyota Production System

Catches Defects too Late
„ How many more do you have? „ Where are they in the process? „ What is the root cause?

Catches Defects Immediately
„ You only have one „ You know where it occurred „ Resolve the root cause immediately

The Next Process is the Customer … Never Send Defects !
Advanced Lean

Why Use Single Piece Flow ?
CTQ Quality Risk WIP FIFO Lead time Productivity * Changeover time **
• •

Batch Production L L K L J J

Single Piece Flow J J J J K L

* 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.

Single piece flow is always better with respect to FIFO

Advanced Lean

Where to start?

Creating Single-piece-flow
1st time Value Stream Mapping Process Level

Prerequisites
A. Value Stream Mapping See the flow

Single Facility (door-to-door)

Multiple Service Facilities

Across Companies

B. An (potential) area for Cell

Advanced Lean

Which process area?

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

Roadmap - Creating Continuous Flow
1. 2. 3. 4. 5. Cell Content
Start looking at what items you should have in the cell.

Actual Work
Then analyze actual work to be done in the cell.

System, Item, and Lay-out
Optimize System, Item, and Cell Lay-out for creating continuous flow.

Work Distribution
Distribute the Work among the People

Going to reduce waste out of:
• Steps

• People activities
• System activities • Item design • Lay-out

Implement, Sustain, and Improve
Actual implementation of Continuous Flow in a Cell

We are going to look at the cell with Eyes for Flow
Advanced Lean

Questions for Creating Continuous Flow
Key questions
Cell Content
• • Do you have the right end items? What is the Takt Time?

Actual Work
• • What are the work elements necessary to make one piece? What is the actual time required for each work element?

System, Item and Layout for Flow
• • • Is your System suitable for flow? Is your item design for optimal continuous flow? How can the process be laid out so one person can make one piece as efficiently as possible?

Work Distribution
• •
Advanced Lean

How to use your people efficiently? How will you distribute the work among the people?

Do you have the right items?
Think carefully about assigning right items to your cell. Here are some guidelines:

1. Flexibility

Cell for multiple items
+ More flexible for changing demand + Pushes you to create short changeover time (waste reduction)

Cells for one item

Cells for multiple items

A

B

A&B

A&B

Advanced Lean

Identify Items for cell
Start with the product or service, that is the customer‟s only interest in GE. To simplify, identify the product/service families:
A group of products/service that go through the same or similar „downstream‟ steps.

Process Steps & Equipment
1 2 3 4 5 6 7

Map together in one Value Stream Map.

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.

2. Similarity of processing steps
When required steps of the different products vary too much, then separate cells. For example, item C does not look to be suitable for the cell.
Advanced Lean

Do you have the right items?

Time

3. Variance of different product types
Total Work Content (see also next section) of the product going through the cell should not variance more than 30%, otherwise take them apart.

Max. ~ 30%

A

B

4. Takt Time (production pace)
Purpose: Match Customer Demand Pace with Production Pace
How often should we finish an item to serve the customer on time?

TAKT time:

Available Time
Required Output
(Customer Demand)

It‟s the heartbeat of the process

Advanced Lean

What are the Work Elements? (for making one piece)
Work element
„smallest increment of work done by a person (not a system) that could be moved to another person‟

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.

Calculate the actual work by using a Process Study Form
Guidelines
• Get REAL data, do not rely on standard time or data from the past. Get it yourself. • Time each work element seperately, otherwise you can include waste. Once timed individual elements then time operator‟s complete cycle from start to finish. Compare to see the waste. • Time an experienced operator who is fully qualified to perform the job. • Seperate operator work time from system cycle time.

Breaking work in elements helps you to expose and identify waste
Advanced Lean

Process Study Form

Process Study
Process Steps

Process

Observer

Date/Time

Operator
Work Element
Observed times
Low est System Repeatable Cycle Time

Notes

Use this Template

Full Process Study Template

Advanced Lean

Paper Kaizen
First analyze the Total Work Content, and design improvement on paper …

Current
240 210

Improved Paper Kaizen
Total Work Content for one item in the cell are activities A-K.

K

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

Paper Kaizen • Elimination: C and J • Time reduction: A and 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

Operator Balance Chart
… then connect to Takt TIme.

210

Takt Time 205 sec.

Operator Balance Chart (OBC)
Picture of distribution of work among operators in relation to Takt Time.
• • • • Simple Visual Quantative No guesswork
Takt Time 82 sec. E I H G
2

180

K

150

I
120

90

H G F E D B A
1

Takt Time 110 sec. F E D B A
1

K K H G F

60

30 0

D B A
1

I
3

2

= Operator

Advanced Lean

Is your System suitable for flow?
Is your system able to handle the Takt Time?
If a System (or Machine) is part of Continuous Flow Cell, you should make sure it is appropriate enough for handling the Flow.
Effective System Cycle Time < (Fastest Takt Time – 20-25%) • Fluctuation in demand • Equipment is often less flexible than people

Also ask the follow questions about your System:
Valuable? - Does the System add value?

Capable?
Available? Adequate? Flexible?

- Does the System create no defects?
- Is the System always available when needed? - Is the System not a bottleneck for the flow? - Is the System flexible to adjust for changes?

• 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

Is your item ideally designed for flow?
Are your items optimal designed for creating continuous flow?
• How is the item presented in an easy, simplified, proper way? • Are there any changes you can make on the item, so it takes less time for the operator to process? • Are the items easy accessible, at their fingertips?

Ideally for a process
• with high volume, low variety • with high frequency of use • with stable input

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

Office Cell Layout
Cellular environment is an area of continuous flow. Physical…
• Multi-functional • Co-located • One piece flow • Balanced – waste removed • Cross trained team • Staffed within the „interval‟ • Standard work

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

How to use your operators efficiently?
Total Work Content (after paper Kaizen) Takt Time – buffer for variance

Number of operators:
Example
134

45 - 3

= 3.2 operators Lean Option

Option A
Balance the line
45
Buffer for variance Takt Time 45 sec.

Option B

• Maximize operator work. • Let Op. 4 do other things

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

How will you distribute the work?
What is the optimal way of distribution the work?
There are a lot of way to distribute the work among operators, here two examples: How will you design that in your physical or digital layout.
Takt Time 38 sec.

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

Process associate involvement
Paper Kaizen & Initial Process Design

Mock-up ½-2 days

Debugging 2-4 weeks

Sustaining

Avoid making things permanent, until stage 4, because it is a real learning-by-doing implementation.

Advanced Lean

Introduction to Pull Production

L

E

A

N

ENTERPRISE
Advanced Lean

What Is a Pull System ?
A system in which each process takes what it needs from the preceding process when it needs it and in the exact amount needed. „ Employs a variety of visual signaling devices and uses the concept of Kanban

„ Just-in-time focused
„ Controls production system and limits inventory „ Simplifies or eliminates documentation

Customer pulls the flow
Advanced Lean

What Is a Push System ?
A system in which products are pushed through production or distribution, based on a schedule. • “Ready or not, here I come!”

• Products are produced only when scheduled
• Assumes receiving work centers will be ready for the products when they arrive

• Output continues without regard to actual downstream needs
• Response is delayed and the system disrupted due to shortinterval changes

Advanced Lean

Differences Between Push & Pull
• Planning • Push: Work is completed based on a planning system • Pull: Work is completed based on authorization from downstream users

• Work Authorization • Push: Work is immediately sent to downstream user upon completion • Pull: Work is not forwarded to next operation until requested

Advanced Lean

Why Use Pull ?
A conventional system, based on a schedule, generates unneeded inventory (overproduction) because true customer needs never fit perfectly with schedule. For the same reason, it can also generate shortages.
Schedule : Customer need :

Inventory :

SHORTAGE

SHORTAGE

Pull ensures best inventory control with high customer satisfaction
Advanced Lean

Why Use Pull ?
Conventional „Push‟ system :
PROCESS #1 PROCESS #2

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 improves work in process management
Advanced Lean

Pull Characteristics
• Standardized application • Visibility • Simplicity • Standard lot sizes

• Discipline
• Versatility/Flexibility

Advanced Lean

How does Pull work ?
Legend
END CUSTOMER

Supermarket

Material
2 1 9
2nd LEVEL SUPPLIER

1

Information Sequence / Timing

10

1st LEVEL SUPPLIER

9
2nd LEVEL SUPPLIER

10
PROCESS #3 PROCESS #2 PROCESS #1

3

4

5

9
2nd LEVEL SUPPLIER

8

7

6

10

Advanced Lean

How does Pull work ?
Min/Max is the most often used methodology to manage supermarket/buffer inventory level.
Max> Replenish

Pull Pull
Pull

Min>

High performance companies use Kanban to communicate needs to preceding process.

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

Toyota Production System Just-in-Time Jidoka Heijunka

Reduction in variation experienced by the customer
Advanced Lean

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.

Stop at Every Abnormality
Toyota Production System

Abnormal

Just-in-Time

Heijunka

Fix the process (problem) before moving on
Advanced Lean

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.

Map your value streams, creating a future state plan
Eliminate waste by executing the plan Expand the scope to other areas
Don’t Wait!! ‟ “Opportunities multiply as they are seized”

Advanced Lean

Lean Deployment
Investment Required
Expense 5% Technical 30%

Cultural 65%

“The Soft Stuff is the Hard Stuff”
Advanced Lean

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.

Value Stream Management

“Don’t be afraid to give up the good for the great!”
Advanced Lean

Lean Deployment
Kaizen: Change for the better
„ Continuous incremental improvement
„ Continuous  slow „ Data driven: visual and quantitative

„ Bias for action
„ Does not cost money „ Absolute intolerance for waste

Kaizen = Action Work Out (AWO) at GE
Advanced Lean

Lean Deployment
Kaikaku
Vision

Kaizen = Evolutionary Change
Kaikaku = Revolutionary Change

Improvement Time

Need Both Kaizen and Kaikaku!!
Advanced Lean

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

Responsibilities clearly demarcated
Advanced Lean

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

Important to be wary of the above factors
Advanced Lean

Agenda
„ „ „ „ „

Lean Overview Lean Methodology Lean Toolkit Lean Deployment Lean Resources

Applying the right tools at the right stage
Advanced Lean

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

Lean Rewards & Recognitions

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

Implementation is the key
Advanced Lean

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