www.mtes.umd.

edu

Key Success Factors of a Lean Strategy
Developing a Lean Culture

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MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program

www.mtes.umd.edu

OBJECTIVES

• To gain an awareness of the concepts,
benefits and techniques of Lean

To understand the key success factors required to develop a Lean culture of continuous improvement

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MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program

www.mtes.umd.edu

AGENDA
• What is Lean?

• Overview of Lean Techniques
• Value Stream Mapping • Implementation Processes • Continuous Improvement Success Factors • Summary

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MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program

www.mtes.umd.edu

LEAN
• An improvement methodology which focuses on eliminating waste.

• A collection of tools and techniques.
• A continuous improvement process.

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MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program

James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .edu When Did Lean Begin? 5 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.umd.www.mtes.

edu LEAN HISTORY 101 1900 1940 1980 2000 6 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.umd.mtes.www. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .

edu NOTABLE QUOTES “Ordinarily. the greater is its ultimate cost.” .mtes.www.Henry Ford “The Toyota system is not opposed to the Ford system.” . money put into raw materials or into finished stock is thought of as live money.Shigeo Shingo “One of the most noteworthy accomplishments in keeping the price of Ford products low is the gradual shortening of the production cycle. like every other waste. turns up in high prices and low wages.” . it is a progressive enhancement--a system geared to the Japanese market that mass-produces in small lots with minimum stocks.umd. It is money in the business. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program . The longer an article is in the process of manufacture and the more it is moved about. but having stock of raw material or finished goods in excess of requirements is waste--which. Rather. it is true.Henry Ford 7 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.

edu MANY NAMES. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .mtes.umd.www. BUT THE SAME CONCEPT Toyota Production System Just-In-Time JIT/TQC/EI/TPM Short Cycle Manufacturing One-Piece-Flow Cellular Manufacturing Stockless Production Agility Group Technology Demand Flow Focused Flow Manufacturing Value Adding Manufacturing Time Based Management Pull Manufacturing World Class Manufacturing Lean Synchronous Flow Manufacturing End-Lining Operations Continuous Flow Manufacturing 8 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.

mtes.edu DEFINING LEAN “A systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection” • systematic approach • eliminating waste (non-value-added activities) • continuous improvement & pursuit of perfection • product flow & customer pull 9 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.umd. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .www.

When is value being added to a product (or service)? 10 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.edu LEAN A systematic approach to identifying and eliminating waste (non-value-added activities). it’s WASTE. If it doesn’t add value. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .mtes.www.umd.

flow of product from value-adding step to value-adding step with no stoppages.mtes. scrap.umd. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program . continuous. or backflows. Consider the “internal” customer along with the “external” customer. 11 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.www. • It must be done right the first time. GOAL ELIMINATE WASTE CREATE CONTINUOUS FLOW One-piece.edu VALUE • Value is added only when the product is changed towards what the CUSTOMER is buying. The product can be a physical product or an information product.

• Waste . materials.www. it is waste! 12 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.umd. parts. space.those things that add time and cost but no value from the customer’s perspective • KEY QUESTION – Are my customers willing to pay for this activity? If not. and worker’s time.edu WASTE • Fujio Cho of Toyota defined waste as: Anything other than the minimum amount of equipment.mtes. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program . which are absolutely essential to add value to the product.

Value-Added Time : Minutes Time in Plant : Weeks www. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .edu Raw Stock QC Rec Ship Shear Stamp Screw Machine QC Lathe Brake Mill Drill Assembly Weld 13 Grind Finish Parts Stock MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.umd.mtes.

edu Sales Department Production Department Purchasing Department Estimating Department Billing & Invoicing Department Payment Department Receiving & Shipping Department Ship Value-Added Time : Minutes Total Time: Weeks + QUOTE CASH MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.mtes.“QUOTE TO CASH” LEAD TIME Request for Quotations Orders Order Entry Department Scheduling Department www. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .umd.

umd. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .mtes.edu LEAN = ELIMINATING THE WASTES Value added 5% Non-value added • • • • • • • • 95% Defects Overproduction Waiting Non-value added processing Transportation Inventory Motion Employees who are underutilized Typically 95% of Total Lead Time is Non-Value Added!!! 15 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.www.

James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .www.edu WASTES • Overproduction – Making more than is required by the next process – Making earlier than is required by the next process – Making faster than is required by the next process • Defects – Scrap and rework • Non-value Added Processing – Effort that adds no value to the product or service from the customer’s viewpoint 16 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.mtes.umd.

umd.mtes. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .www.edu WASTES • Waiting – Idle time created when waiting for…? • Excess Motion – Any movement of people or machines that does not add value to the product or service • Transportation – Movement of parts and materials around the plant • Excess Inventory – Any supply in excess of one-piece flow through your process 17 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.

www. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .umd.edu INVENTORY HIDES PROBLEMS Raw Material Plant Layout Long Set-ups Long Travel Distances Inventory Level Scrap Downtime Finished Product Long Supplier Lead-times Process Imbalances Lack of Training Poor Tooling Unlinked Schedules No Improper Unclear Poor Workplace Standardization Specifications Organization Reward System 18 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.mtes.

umd.edu REDUCING INVENTORY WITHOUT SOLVING UNDERLYING PROBLEMS Must get to the root cause(s) of all waste in order to create effective.www.mtes. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program . long-term solutions! Raw Material Plant Layout Long Set-ups Long Travel Distances Finished Product Scrap Downtime Inventory Level Lack of Training Poor Tooling Unlinked Schedules Long Supplier Lead-times Process Imbalances No Improper Unclear Poor Workplace Standardization Specifications Organization Reward System 19 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.

Waits in staging area Moved to machine Processed into final assembly Waits for batch to be complete Inspected Packaged Moved to warehouse Put into storage rack Waits in storage 1 hr. 30 min. 2 hr. 1 hr. 30 min. 10 min. 3 min.mtes. 30 min. Waits in staging area Moved to machine Processed into sub-assembly Waits for batch to be complete Inspected Defects sorted/reworked Move to final assembly dept. 1 min. 5 min. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program . 2 hr. 15 days 15 min. 10 min. 4 hr.edu MATERIAL PROCESSING 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19) 20) Material arrives/inspected Moved to storage rack Waits in storage Moved to sub-assembly dept. 14 hours.umd. 15 days TOTAL TIME= 30 days.www. 51 minutes TOTAL Value Time=_____________________ 20 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. 2 hr. 30 min. 5 min. 2 min.

umd.mtes.www. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .edu Which Wastes are in Office Processing? • Overproduction • Defects • Non-value added processing • Waiting • Excess motion • Transportation • Excess inventory 21 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.

1 min. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program . 1 hr.www. 2 min. TOTAL TIME= 5.5 days. 0 2 days 2 min. Moved to Another In-Basket Waits in In-Basket Reviewed/Approved Moved to Another In-Basket Waits in In-Basket Assigned Customer Number Moved to Scheduling 20 min. Reviewed Moved to File Waits for Missing Info. Received Missing Info. 1 hr. 55 minutes TOTAL Value Time=_____________________ 22 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.mtes. 0 3 hr.5 days 10 min. 1 min.edu ORDER PROCESSING Log In Review Cust Number 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19) 20) Order is Taken Moved to Briefcase Waits in Briefcase Faxed to Mailroom Moved to In-Basket Waits in In-Basket Logged In Moved to Another In-Basket Waits in In-Basket Order Info. 1 min.umd. 2 min. 5 hours. 2 days 10 min. 1 min. 3 min. 2 min. 1.

edu BOTTOM LINE RESULTS • • • • • Reduced Lead Times 75% + Reduced WIP 75% + Reduced Defects 25% + Improved Space Utilization 50% + Improved Productivity 25% + From Lean Thinking : Banish Waste And Create Wealth In Your Corporation by James P. Womack and Daniel T.www.mtes.umd. Jones “Based on years of benchmarking & observation…we have developed the following simple rules of thumb when converting a classic batch-and-queue production system to continuous flow:” Labor productivity doubles Inventories are reduced 90% 23 Production throughput times are cut 90% Errors and scrap are typically cut in half MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .

umd. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .edu The Lean Techniques LEAN BUILDING BLOCKS Continuous Improvement Pull/Kanban Plant Layout 5S System Cellular/Flow Quick Changeover TPM Batch Reduction Standardized Work Visual Systems MistakeProofing POUS Value Stream Mapping Teams/Employee Involvement “A systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection” 24 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.mtes.www.

edu VALUE STREAM MAPPING 25 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.www.mtes.umd. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .

edu CURRENT STATE MAP Supplier Customer Information Flow Process Inventory Timeline Total Lead Time Material Movement via PUSH Data Box Value-Added Time Material/Product Flow 26 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.www.mtes.umd. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .

mtes.edu THE VALUE STREAM MAPPING PROCESS Product/Service “Family” Understand the current flow current state drawing Design a Lean flow future state drawing Begin by drawing on the current state map plan and implementation 27 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.umd.www. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .

mtes.) (3 coils/hr) 10. Hawkins 9/21/2005 28 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. Rizzardo R. machine cost * 5.000 tons 15 days People Shipping Changeover Coil Size * Customer 5% Machine Failure Controlled Standard Procedures 5S Steel Processor Value Stream Map Total Lead Time 45 days Processing Time 1 hr.www. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .000 T/m 50 ship to 1000 coils/mo Ship by customer release (variable) 10% 90% Receiving 2 Acid Tank Temp 90% 10% 20% automotive 80% other Pickling 18. lead time) $500/hr.000 Tons 15 days * 30 days Supplier Controlled (not reliable) (5% Heidtman Owned) 20% 50% (was 10%) Light Guage Mat’l Customer controlled Hold Error GTS Database 10% (4 coils/hr) Slitting 3 3 support (17-21) 19 Tons/hr./su Scheduling 90%up/time 5 coils/mo (rework) (1 hr. 20 min. C/O 4/shift ½ hr.edu STEEL PROCESSOR (90%) (Supplier) Release Shipments Made Receipt Order Order Release Both paper & electronic (100 orders/day) People Culture Change Production Control (Paper & Electronic) Shipments Made (Customer) Release Dates Change 20.000 T 6000 tons slitter 90% * Pickling Incoming Steel Quality 80% Shipping * 3 4 support $800/hr. D. machine cost 65 T/hr 97% uptime Line Chemistry (3x/shift) 5 coils/month rework (Lead time 20 min.umd.

L/T = 30 min. Puts into Inventory Data entry into ERP P/T = 2 hrs. MRP 3 people Material Requirements e Sch Yes Inventory Customer Service Rec.Initial focus long L/T items L/T = 3 Days (typ.5 days (no testing) P/T = 30 min.edu BIOTECH COMPANY Site Value Stream Map 5 NOTES Refer to Actions List for items noted by Some action items on the Actions List are not noted on the Map. but can be to 9 days QC Testing 8 MMR Automation 9 Multiple MMR’s for same Order P/T = 14 . dule Jo b VMI Possibilities 1 P/T = 2 Days L/T = 1 Week Pick List .4 hrs. L/T = 4 hrs.) L/T = 1 Day 29 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.35 days QA Disposition First Time Right = 70% Review Routing System 6 Review Raw Material Testing . typ.2 hrs. max. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program . %C&A = 90% E-Com Customers Manual Reduce Manual Orders 2 Suppliers Orders Variable Few to thousands End Users & Distributors Distribution Dept. 3 Daily Review Production Planning (3 people) S&OP MPS System Back Order Fulfillment Process Production Scheduling P/T = 16 hours L/T = 1 week P/T = 3 hours L/T = 1 week Inventory Status P. L/T = 1 .30 days L/T = 14 . L/T Typical = 3 days. .mtes. L/T = Same Day Doc Control Labels Doc Central QA Disposition Rec. Order P/T = 4 min.umd. Runs Report L/T = 1 day Schedule (QA Hold Area) Not Available Rec.www. Dept.35 days P/T = 10 min. # Denotes Action Item number on Actions List Schedule Reliability Issues Marketing Processing Times (P/T) and Lead Times (L/T) shown are estimates.O. QA (4 people) Inspection & Sampling Lost Samples 7 Job Samples Pre-Weigh (5 people) Formulation Filtration Filling QC Finishing Results P/T = 30 min. Dept.30 days L/T = 5 .Manual / Package P/T = 30 min. . .

Computers 2.edu ADMINISTRATIVE VALUE STREAM MAP $10K: 2 “hard” quotes $25K: 3 “hard” quotes Construction quotes can only be +/-25% estimates at this stage but must meet +10% requirement through CAR process Re-evaluate when Endorser approval is needed The +/-25% initial construction quotation accuracy is adequate for the purpose of the proposed enabling CAR CAR form is not understood by all customers. CAR is generated VSM for Capital Appropriations Process Create Enabling CAR to fund engineering study Expand & Publish Matrix Revise CAR form (need Corporate “buy-in”) 3 DIFFERENT VALUE STREAMS TO CONSIDER 1. Finance) A Record Keeper assigns number P/T = 2 min L/T = 1 day %C&A = 85% Review Engr. everything requires this approval step Record Keeper records status Final CAR Approval (V. All others DEMAND: Currently 100+ CARS/Year NOTE: Refer to Actions List for actions noted by Processing activities shown only indicate primary activities Develop computer CAR Customer defines need Endorser approves P/T = 2 min L/T = 1 day-1 week ML L/T = 2 days %C&A = CUSTOMER LOOP Minor issue .P. Construction 3./Facilities Check Budget Check quotes. need ROI Finance Review B P/T = 1 min-2 weeks %C&A = 85% P/T = 10 min L/T = 10 min-3 days %C&A = 75% FOR FINANCE LOOP L/T = 1 day-3 weeks %C&A = 55%-60% P/T = 2 min L/T = 2 min-1 hour P/T = 1 min L/T = 1 day-3 weeks Audit point %C&A Track for continuous improvement/ corrective actions Create Decision Tree as to what needs to go through Engr.need Endorser back-up person identified Move Engr. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program . IT CARS . Review into front end of Customer Loop FINANCE LOOP Add Finance Loop involvement in Customer Loop Investigate if this approval is necessary for all capital items Currently.www.mtes.umd. justification. Audit point %C&A Track for %C&A continuous improvement/ corrective actions GOAL 95%+ rd e Ke r pe b In ox %C&A GOAL 95%+ m Nu d AR igne C s as r be NOTE: Customers need to determine appropriate metric(s) required prior to point A C b In ell ox R o ec LEAD TIME MEASUREMENT FOR FINANCE CELL R CA ap pr ov ed A 30 OVERALL LEAD TIME MEASUREMENT OF CAR APPROVAL PROCESS B MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. approval Over $25K.

Invoicing. Assembly. Across companies – Supply Chain II.umd. Purchasing. IV. III.mtes. Micro Sub-Process 31 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.www. Recruitment V. Process – e.edu LEVELS OF VALUE STREAM MAPPING Macro I. Across plants within a company Plant/Site – Overall process of providing a product/service to the external customer.g. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program . This is the Lean planning level.

www.umd.edu OPTIMIZE THE SYSTEM INDIVIDUAL EFFICIENCY VERSUS SYSTEM (PRODUCT) EFFICIENCY Individual “efficiency” may negatively affect the whole system! 32 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.mtes. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .

umd.edu VALUE STREAM MAPPING IT’S ONE OF MANY DOCUMENTATION & ANALYSIS TOOLS • Value stream mapping – focuses on waste reduction – has a broader perspective .typically used in detail analysis and design of a specific operation (may be used in order to gather data for the VSM) – – – – 33 flowcharts time observation form standard operator work sequence form changeover analysis form MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.mtes. departments. and functions – addresses linkages between steps – identifies material and information flows – most often used as a planning tool • Other documentation tools .cuts across operations.www. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .

edu Flow/Spaghetti Diagrams 34 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.www. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .mtes.umd.

Used also to analyze the flow of personnel.www.mtes.edu FLOW (SPAGHETTI) DIAGRAM Represents the physical location of processes and flow of material. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program . 35 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.umd.

www.edu FLOW (SPAGHETTI) DIAGRAM 5 3 2 File Storage File Storage Sorting Table 4 Fax #1 8 File Storage File Storage 6 Fax #2 Mail-In 1 MailOut Copier #1 Copier #2 Printer 7 10 9 Tech Office File Stacks 36 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .mtes.umd.

umd. your value stream maps and flow diagrams are just nice wallpaper.mtes.www.edu MAPPING AND FLOW DIAGRAMS • Start you focusing on Flow (The Lean Perspective) • Help you recognize wastes in current state and identify opportunities to apply lean techniques • Provide information for creation of future state map • Provide a blueprint of material & information flow • Form the basis of an implementation plan MUST FACILITATE ACTION! Otherwise. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program . 37 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.

www.mtes.umd. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .edu LEAN BUILDING BLOCKS Continuous Improvement Pull/Kanban Plant Layout 5S System Cellular/Flow Quick Changeover TPM Batch Reduction Standardized Work Visual Systems MistakeProofing POUS Value Stream Mapping Teams/Employee Involvement “A systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection” 38 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.

James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .umd.mtes.edu Implementation Processes “A systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection” 39 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.www.

James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .edu ACT PLAN CHECK Document DO Standardize Improvement Process Analyze Implement 40 DMAIC • Define • Measure • Analyze • Improve • Control MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.umd.www.mtes.

Control 41 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.www. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .DO . ACT – Standardize the good results and go back to the PLAN step to address the bad results. CHECK – Verify the results and learn from the outcomes.CHECK . DO – Implement the changes.umd.edu PDCA DMAIC Define Measure Analyze Improve PLAN .mtes.ACT PLAN – Understand the current condition and plan the changes.

Design Cell Layout – Material.umd. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .www. Combine Work to Balance Process 5. Review Work Sequence – Determine Labor Content • • Remove Non-Value Adding Activities Calculate Operators & Equipment Required 4. Group Products Into Families 2.mtes.edu FIVE STEP CELL DESIGN PROCESS 1. & Information Flows • • U-Shape if possible POUS • • Visual Management Kanban Limits • 42 Source Inspection MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. People. Measure Demands – Establish Takt Time (demand cycle) 3.

Determine visual measurement method 10. Balance labor for Internal Elements 5. Implement short-term action items 9.www.umd. Develop Actions List 7. Document the changeover 2. Develop streamlined changeover procedure/checklists 8. Videotape the revised changeover process Standardize Document • Make adjustments and standardize • Repeat 43 Lean Basics SMED Analyze Implement MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. Streamline External Elements 6. Streamline Internal Elements 4. Convert Internal Elements to External 3. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .edu CHANGEOVER IMPROVEMENT PROCESS • Training – Quick Changeover • Videotape the current changeover 1.mtes.

• Shine .” Label items and locations. and self-discipline.Create the rules for maintaining and controlling the first 3S’s and use visual controls.Ensure adherence to the 5S standards through communication.umd.www. Inspect while cleaning.mtes. 44 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.“A place for everything and everything in its place.edu THE 5 S’s • Sort .Separate the needed from the not needed. • Set in Order .Clean all tools and equipment. Remove everything not needed from the work area. training. • Standardize . James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program . Identify potential problems. • Sustain .

at the lowest possible level in the organization. and there must be an unambiguous yes-or-no way to send requests and receive responses. All work shall be highly specified as to content. under the guidance of a teacher. operation. These rules guide the design. and pathway for every product and service. The rules are as follows: 1.edu DECODING THE DNA OF TOYOTA The tacit knowledge that underlies the Toyota Production System can be captured in four basic rules. The pathway for every product and service must be simple and direct. Any improvement must be made in accordance with the scientific method. and outcome.umd. sequence.www. and improvement of every activity. Kent Bowen. September-October 1999 45 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. timing. “Decoding the DNA of the Toyota Production System” by Steven Spear and H. 3. Every customer-supplier connection must be direct. connection.mtes. Harvard Business Review. 2. 4. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .

edu CONTINUOUS IMPROVEMENT SUCCESS FACTORS “A systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection” 46 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.mtes. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .umd.www.

Empowerment. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program . & Trust • Top Leadership Commitment & Involvement • Team Leader/Supervisor Commitment & Involvement • Idea Generating Practices & Systems • Performance Metrics 47 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.www.edu FIVE KEYS TO CONTINUOUS IMPROVEMENT • Employee Involvement.mtes.umd.

48 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.mtes. 90. 81. No.www. February 2003. “The Enemies of Trust. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .umd. because trust takes years to build but can suffer serious damage in just a moment.edu Trust “…You need to protect trustworthiness from its enemies. both big and small.” Robert Galford and Anne Seibold Drapeau. 2. Vol. p.” Harvard Business Review.

umd. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program . “White Paper. Corporate Culture: Toyota’s Secret Competitive Advantage.Dennis Cuneo. 49 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. and they substantially cut the orders to our plant. that did the most to establish trust.edu NOTABLE QUOTES “We built trust early on with our team members. 75. The Toyota Way : 14 Management Principles From The World’s Greatest Manufacturer. because it is the foundation for the growth of the company and its employees .www.mtes. Toyota values and tries to maintain mutual trust. May 15.” . Michael A. Of all the things we did at NUMMI. It must be earned through many mutual efforts to create confidence. Liker. 1991. GM had problems selling the Nova in 1987 to ’88. We had to reduce production and were running at about 75 percent capacity. but we didn’t lay anybody off. We put people on kaizen teams and found other useful tasks for them. 2004.” p. New York: McGraw-Hill. Senior VP of Toyota Motor Manufacturing North America Jeffrey K. p. Husar. Toyota realizes this kind of mutual trust is not a given condition between management and the employees. 11.

www.mtes.umd.edu BUILDERS OF TRUST • • • • Consistency/Organizational Alignment Mutual trust and respect Communication – Open. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program . clear. and often ACTION – WALK THE TALK 50 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.

mtes.www. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program . and therefore. spotty sustainment. a competitive advantage will not be gained! 51 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. your Lean efforts will be limited to shortterm gains in improvement.edu Leadership Commitment / Involvement • Is Leadership committed to a long-term Lean strategy? • Is Leadership committed to developing and involving the workforce throughout the Lean journey? If you answered NO to either of the above. a continuous improvement culture will not be developed.umd.

www.mtes.umd.edu

LEADERSHIP RESPONSIBILIES
Lean Start-up, Initial Transformation Stage
• • • • • • Clearly communicate the need for Lean Provide a vision – What will be different? Present the benefits to employees Address the issue of job security Present expectations, measurements Make it both directive yet empowering

Leadership commitment and support of the Lean strategy must be clear, unyielding and visibly evident!
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MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program

www.mtes.umd.edu

LEADERSHIP RESPONSIBILIES
• Remove roadblocks
• Provide support throughout the learning curve • Align systems – Continually guard against Organizational Hypocrisy • Long-term commitment must be clearly evident through actions and frequent communication • Focus on the effectiveness of first-line supervisors / team leaders

• Provide resources – e.g., training, people, and continually look for ways to grow employees.

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MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program

www.mtes.umd.edu

KEYS TO SUCCESS • Engagement • Explanation • Expectations
“As managers, we must take the responsibility for developing and nurturing mutual trust and understanding among all team members. I believe management has no more critical role than to motivate and engage large numbers of people to work together toward a common goal. Defining and explaining what the goal is, sharing a path to achieving it, motivating people to take the journey with you, and assisting them by removing obstacles – those are management’s reasons for being. We must engage the minds of people to support and contribute their ideas to the organization.”
- Gary Convis, Managing Officer of Toyota and President, Toyota Motor Manufacturing, Kentucky

Jeffrey K. Liker: Forward by Gary Convis. The Toyota Way : 14 Management Principles From The World’s Greatest Manufacturer. p. xii. New York: McGraw-Hill, 2004.
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MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program

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Team Leaders / Supervisors
Why is the effectiveness of supervisors / team leaders critical for long-term success in developing a continuous improvement culture?

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MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program

umd.S.mtes.www.edu TWI – TRAINING WITHIN INDUSTRY • • • • TWI Service formed to support U. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program . industry during WWII Began in 1940 and discontinued in 1945 Charles Allen headed the development of the training program Adopted by General MacArthur who brought it to Japan during the Occupation • The TWI Service considered several options. but decided to focus training on First Line Supervisors • Reasoning – Supervisors had the most influence on production and productivity since they were in direct contact with the people making the product 56 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.

www.edu TWI’S PHILOSOPHY OF SUPERVISION Every Supervisor has Five Needs: 1. No. p. 4. “The Roots of Lean: Training Within Industry: The Origin of Kaizen. • • • Knowledge of the Work Knowledge of Responsibility Skill in Instructing Skill in Improving Methods Skill in Leading TWI Training Program Job Instruction (JI) – How to train employees Job Methods (JM) – How to break down a job and question every detail to improve the way work is done Job Relations (JR) – How to build positive employee relations.” Target. increase cooperation and motivation. 5. 57 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. 9. Vol. and effectively resolve conflicts Jim Huntzinger. 18. 3. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .mtes.umd. 2. First Quarter 2002. 1.

Assigns work to team members when line is down .edu NUMMI Team Leader Responsibilities/Roles Self-nominated.Training new team members .Responsible for quality and production of team .Counsels/assesses team members (non-discipline) .Builds teamwork/sense of unity/interdependence . James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program . “White Paper.Ensures team members follow standardized work Pierre LaFoille. 18. p.Arranges outside activities (personal touch) . promoted by management with formal Union involvement in selection process Additional XX per hour pay Responsibilities/roles: . NUMMI’s Work Teams: What Keeps The Engine Running.umd.” Figure 1-5.www. 1991.Relieves/replaces team members .Leads continuous improvement process . 58 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.mtes. June 28.

James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .www.mtes.edu Idea Generating Practices & Systems 59 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.umd.

encourage. and implement improvement ideas.umd. track.www. • Idea System • Kaizen Events/Projects • Team Meetings  Daily (5-10 minutes)  Weekly (30 minutes) • Lean Strategic Planning 60 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .edu PRACTICES & SYSTEMS Create systems and methods to plan. gather. discuss.mtes.

umd.mtes. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program . averaged 104 ideas per employee in 2002 • Since mid-1970’s. averaged 65 implemented ideas per employee • Boardroom Inc.edu • Milliken & Company. Toyota worldwide has averaged 20-30 ideas per employee per year.www. automotive and aerospace component supplier.. of which 80% were implemented What is common among all of the above? 61 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. averaged 110 ideas per employee in 2002 • Wainwright Industries. fabric and specialty chemicals company. Connecticut publisher.

and improved. CA: Berrett-Koehler Publishers. Idea system performance is measured. Are financial rewards necessary? Alan G.. Ideas are encouraged and welcomed. and success is celebrated. 5. Implementation is rapid and smooth. 3. Feedback is timely. 6. Robinson & Dean M. and informative. 4. 2004. 121.umd. Ideas are reviewed for additional potential.edu EFFECTIVE IDEA SYSTEMS 8 Key Characteristics 1. 62 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.mtes. Inc. Ideas Are Free : How The Idea Revolution Is Liberating People And Transforming Organizations. Schroeder. Evaluation of ideas is quick and effective. 2. Submitting ideas is simple.www. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program . San Francisco. constructive. 7. p. reviewed. People are recognized.

umd. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program . James Harrington and Thomas McNellis.edu Performance Metrics “Mobilizing the Right Lean Metrics for Success” by H. 63 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.www. 2007. July 16.mtes. Quality Digest.

when you cannot express it in numbers.mtes. If you can’t control it.” Lord Kelvin 64 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. then your knowledge is of a meager and unsatisfactory kind. you can’t improve it! “What is measured is known.umd. you can’t control it. But when you cannot measure something.edu WHY MEASURE? If you can’t measure it. If you can’t understand it. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .www. you can’t understand it.

edu PLANT FLOOR (OR OFFICE) LEAN METRICS • Relevant to cell or work area • Easy to gather and report • Problems/issues are recorded • Visual (As large as feasible) • Frequently reviewed • Facilitate action • Used to improve the process & Value Stream performance 65 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .umd.mtes.www.

James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .edu VISUAL MEASUREMENT 66 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.mtes.umd.www.

visual metrics in key staff departments Fine Points This principle concerns extent of use of QSFV (universal customer wants) as internal performance metrics One test: Ask a random employee. speedy response.. New York: The Free Press. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program . visual metrics in all processes 3 QSFV are dominant.g. visual metrics in key line operations 1 Training in universal customer wants: quality. flexibility. no points are deserved 2 QSFV are dominant.umd. “What do they measure you on?”. 67 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. value (QSFV) Best practice: Large visual signboards in every work area showing QSFVrelated trends and relating to improvement projects Richard J. labor productivity. World Class Manufacturing : The Next Decade. 1996. variances) no longer managed 4 QSFV are dominant.edu 2nd-order metrics (e.mtes.QSFV World Class by Principles (WCP) assessment matrix and international benchmarking tool Principle #13 – Align Performance Measures with Universal Customer Wants 5 www. if the answer isn’t even close to QSF or V. Schonberger.

www.umd.mtes.edu PERFORMANCE METRICS Performance Metrics must be in alignment with your Lean strategy! 68 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .

edu SUMMARY Is there a Lean Roadmap? 69 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.www.umd. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .mtes.

www.umd.edu 70 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.mtes. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .

www.mtes.umd.edu LEAN BUILDING BLOCKS Continuous Improvement Pull/Kanban Plant Layout 5S System Cellular/Flow Quick Changeover TPM Batch Reduction Standardized Work Visual Systems MistakeProofing POUS Value Stream Mapping Teams/Employee Involvement “A systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection” 71 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .

umd. Effective front-line supervisors / team leaders is critical. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .mtes.edu KEYS TO LONG-TERM SUCCESS • Develop an environment of mutual trust and respect • Leadership commitment − − − − Clearly communicate the need for a Lean strategy Make it both directive yet empowering Remove roadblocks Commitment must be clearly evident through actions and constant communication • Employee involvement − Trained and truly empowered people − Employee ideas are the source of continuous improvement • Support and commitment throughout all levels of the organization.www. • Align all support systems with the Lean strategy 72 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.

• There’s more than one way to get to where you want to be – be flexible and make it work for you. Apply the appropriate Lean techniques rigorously. • Remember…it’s a journey. a continuous improvement process which applies to every organization and every employee in every organization! 73 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. systems and practices • Measure the right things – make visible − Frequent status monitoring − Daily review of performance issues/opportunities • Create an environment of experimentation throughout the organization • Standardization. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .www.mtes. Attention to detail.umd.edu KEYS TO LONG-TERM SUCCESS • Incorporate idea generating processes.

mtes. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program . • Lean is technically “easy.” but culturally difficult.edu KEY POINTS • Lean is a System strategy. 74 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. • Lean is both Directive and Empowering. but successful implementation is in the Details.www.umd. • Lean requires Standardization in order to Improve.

“A good plan violently executed NOW is better than a perfect plan next week” Patton. • A continuous improvement process.umd.S.mtes. It’s all of the above and a whole lot more! Move with a sense of urgency and remember what George S. 1947. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program . Mass. • A collection of tools and techniques. Jr. War as I knew it.edu LEAN • An improvement methodology which focuses on eliminating waste.: Bantam Books 75 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.. Patton said. Boston.www. G.

challenge.www. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program . A “4 P” model of the Toyota Way  Continual organizational learning through Kaizen  Go see for yourself to thoroughly understand the situation (Genchi Genbutsu)  Make decisions slowly by consensus.umd. Liker. thoroughly considering all options. Challenge. develop. p. New York: McGrawHill. and challenge your people and teams  Respect. The Toyota Way : 14 Management Principles From The World’s Greatest Manufacturer.mtes. thoroughly tested technology Philosophy (Long-Term Thinking)  Base management decisions on a long-term philosophy. implement rapidly Toyota’s Terms Problem Solving (Continuous Improvement and Learning) People and Partners (Respect. Figure 1-1. 6.edu Figure 1-1. and help your suppliers Process (Eliminate Waste)        Create process “flow” to surface problems Use pull systems to avoid overproduction Level out the workload (Heijunka) Stop when there is a quality problem (Jidoka) Standardize tasks for continuous improvement Use visual control so no problems are hidden Use only reliable. and Grow Them)  Grow leaders who live the philosophy  Respect. even at the expense of short-term financial goals Jeffrey K. 76 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. 2004.

mtes.edu THE END ? 77 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program .umd.www.

Davis 78 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. Miller and Vicki L. Jones Lean Thinking by James P.mtes. Larco The Goal by Eli Goldratt The Race by Eli Goldratt Breaking The Cost Barrier by Stephen A.umd. Womack and Daniel T. Schenk Lean Transformation by Bruce A.LEAN RECOMMENDED READINGS www.edu • • • • • The Toyota Way by Jeffrey Liker Becoming Lean by Jeffrey Liker World Class Manufacturing: The Next Decade by Richard Schonberger World Class Manufacturing: The Lessons of Simplicity Applied by Richard Schonberger Let’s Fix It! Overcoming the Crisis in Manufacturing by Richard Schonberger • • The Machine That Changed the World by James P. Ruffa and Michael J. Perozziello The New Manufacturing Challenge: Techniques For Continuous Improvement by Kiyoshi Suzaki • • The Human Side of Just-In-Time: How To Make The Techniques Really Work by Charlene B. Henderson and Jorge L. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program . Adair-Heeley Fast Track to Waste-Free Manufacturing by John W. Womack and Daniel T. Jones • • • • • • All I Need To Know About Manufacturing I Learned in Joe’s Garage by William B.

LEAN RECOMMENDED READINGS www. And Factory Magazine (eds.mtes.edu • • • • • • • • • • • • • • Ideas Are Free by Alan G. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program . Martin Hinckley POKA-YOKE Improving Product Quality By Preventing Defects by Nikkan Kogyo Shimbun. Maskell Visual Systems by Gwendolyn D. Robinson & Dean M. Ltd.umd. Galsworth 5 Pillars of the Visual Workplace by Hiroyuki Hirano A Revolution in Manufacturing: The SMED System by Shigeo Shingo Quick Changeover for Operators:THE SMED SYSTEM created by The Productivity Press Development Team SET-UP TIME REDUCTION by Jerry W.) Creating Continuous Flow by Mike Rother & Rick Harris Standard Work for the Shopfloor by The Productivity Press Development Team 79 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A. Claunch Kaizen For Quick Changeover by Kenichi Sekine and Keisuke Arai SHIGEO SHINGO Zero Quality Control : Source Inspection and the Poka-yoke System by Shigeo Shingo Make No Mistake! An Outcome-Based Approach to Mistake-Proofing by C. Schroeder The Idea Generator: Quick And Easy Kaizen by Bunji Tozawa & Norman Bodek Performance Measurement for World Class Manufacturing by Brian H.

gov By phone at 800-MEP-4MFG (4634) Dave Rizzardo 410-706-4774 daver@umd. James Clark School of Engineering • University of Maryland • A NIST MEP Affiliate Program . Lombard St. MD 21201 Manufacturing Extension Partnership (MEP) National Institute of Standards and Technology Gaithersburg.umd.mep. MD 20899-4800 On the Web http://www.www.edu Contact Information Maryland Technology Extension Service (MTES) Chesapeake Region 410 W.mtes.edu 80 MTES is a program of the Maryland Technology Enterprise Institute (Mtech) • A.nist.org On the Web http://www.mtes. Suite A Baltimore..

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