Tools to Make Waste Visible

© 2001 ConceptFlow

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Module Objectives
By the end of this module participants should be able to: • Develop a Spaghetti Chart to identify waste • Develop a Process Flow Diagram to identify waste • Create a Pareto Chart to identify waste • Develop a Cause and Effect Diagram to identify waste • Utilize Process Reports and Assessments to identify waste

© 2001 ConceptFlow

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Recall The Five Principles Of Lean Thinking
Lean Thinking can be summarized in five principles*: • Principle 1 - Precisely specify the value of a specific process • Principle 2 - Identify the value stream for each process • Principle 3 - Allow value to flow without interruptions • Principle 4 - Let the client pull value from the process • Principle 5 - Continuously pursue perfection

* Womack, J. P. and D. T. Jones, 1996, Lean Thinking, Simon & Schuster
© 2001 ConceptFlow 3

What Tools Exist To Make Waste Visible? • Workplace Organization • 5S • Visual Workplace • Spaghetti Chart • Pareto Chart • Cause and Effect Diagram • Five Whys • Process Reports and Assessments © 2001 ConceptFlow 4 .

Manufacturing Waste Types of Waste • Overproduction • Inventory • Waiting • Transportation • Motion • Making Defects • Overprocessing Contributors to Waste • Unevenness • Overburden • Current Methods and Processes © 2001 ConceptFlow 5 .

Additional Tools: Spaghetti Chart © 2001 ConceptFlow 6 .

Spaghetti Chart • Obtain a layout • List the steps in the process • Draw the path of the process from start to finish on the layout © 2001 ConceptFlow 7 .

3 Orange Glow Dept. O B S T R U C TI O N Yellow Glow Dept. 4 6 O B S T R U C TI O N 2 7 Inspection 1 Client Rec/Ship/ Stock 5 Red Dept.Example Spaghetti Chart . 8 © 2001 ConceptFlow 8 . Red Glow Dept.Round #1 Of Dot Game Yellow Dept.

Constructing a Spaghetti Chart © 2001 ConceptFlow 9 .

Waste Map Component Operation Step 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Description Activity Analysis Action Study Remarks Team Date © 2001 ConceptFlow Comments Waste Map.ppt 10 .

Additional Tools: Pareto Charts © 2001 ConceptFlow 11 .

Pareto Chart • A descending bar graph that helps to focus on the problems that offer the greatest potential for improvement by showing their relative frequency or size • Compare the relative frequency or cost of each problem category • List the categories in descending order from left to right on the horizontal axis • The height of the bars corresponds to the frequency or cost © 2001 ConceptFlow 12 .

Pareto Chart Example 45 40 35 30 25 20 15 10 5 0 B E G A C D F • • • • • • • A = 19 B = 45 C = 12 D=7 E = 32 F=5 G = 25 13 © 2001 ConceptFlow .

Team Pareto Exercise For the Electrical Connector Exercise • Flipchart a Pareto of the frequency of steps versus each element of production (SHIP) • Where is the greatest opportunity for improvement? © 2001 ConceptFlow 14 .

Pareto Chart Solution Where is the greatest improvement opportunity? © 2001 ConceptFlow 15 .

Frequency = 17 • Item D.Pareto Chart Given the following data. construct a Pareto chart • Item A.Exercise . Frequency = 5 • Item E. Frequency = 11 • Item C. Frequency = 22 • Item B. Frequency = 8 © 2001 ConceptFlow 16 .

Pareto Chart Solution The Pareto can be created in Excel or MINITAB™ Pareto Chart Solution 30 20 10 0 A C B E D Series1 © 2001 ConceptFlow 17 .

Additional Tools: Cause and Effect Diagram © 2001 ConceptFlow 18 .

Cause And Effect Diagram (Fishbone Diagram) • Used to allow team to identify and graphically display. in increasing detail. all potential root causes • Place problem (effect) in box on right-hand side of chart • Draw major cause categories as bones on chart • Repeatedly ask why each cause happens • Look for root cause that appears repeatedly within or across major causes © 2001 ConceptFlow 19 .

Source Categories For Potential Causes People • Do they follow standards? • Efficiency acceptable? • Are they problem conscious? • Are they responsible? • Are they qualified? • Are they experienced? • Are they assigned to the right job? • Are they willing to improve? • Do they maintain good human relations? • Are they healthy? Machines (facilities) • Do they meet production requirements? • Process capability? • Oiling. greasing adequacy? • Is inspection adequate? • Frequency of down-time and why? • Does it meet precision requirements? • Unusual noises? • Layout adequacies? • Are there enough machines/ facilities? • Are they in good working order? • Preventative maintenance schedule? 20 © 2001 ConceptFlow .

Source Categories For Potential Causes Material • Mistakes in volume? • Mistakes in grade? • Mistakes in brand name? • Are there impurities mixed up? • Is the inventory level adequate? • How much WIP is there? Where? • Is the layout adequate to accommodate materials? • Is the quality standard adequate? Method (operation) • Are the work standards adequate? • Is the work standard upgraded? • Is is a safe procedure or method? • Does it ensure a good product? • Is the method efficient? • Is the sequence of work adequate? • How is it setup? • Is the setup adequate? • Is there adequate contact/ communication with the upstream and downstream steps? • What method is used to communicate? © 2001 ConceptFlow 21 .

Your Turn! Measurements Environment • • • • • • © 2001 ConceptFlow 22 .Team Exercise .

Basic Structure Of The C&E Diagram Causes Main Category Measurements Materials People Effect Problem/ Desired Improvement Environment Methods Machines © 2001 ConceptFlow 23 .

Basic Structure .Level 1 Causes Causes Main Category Measurements Materials People Level 1 Cause Effect Problem/ Desired Improvement Environment Methods Machines © 2001 ConceptFlow 24 .

ask why? 3.Five Whys? 1. Add additional levels to the C&E diagram 4. When presented with an answer. Ask why? 2. Repeat step two until you get the real problem or issue identified © 2001 ConceptFlow 25 .

Business Process Example .The Five Why’s The “Five Why’s” Method Supervisor: “Why is the sales order being released so late?” Employee: “Because the client requirements are not entirely known” Supervisor: “Why are the client requirements not known?” Employee: “Because the proposal was vague and incomplete” Supervisor: “Why was the proposal vague and incomplete?” Employee: “Because the performing organization didn’t participate in creating it” Supervisor: “Why didn’t the proposal team consult with the proper experts?” Employee: “Because we hardly ever talk with those guys” Supervisor: “Why is communication so poor between departments?” Engineer: “Because that is how we always do proposals. and we don’t have a process that encourages us to work together” © 2001 ConceptFlow 26 .

Level 2 Causes Causes Main Category Measurements Materials People Level 1 Cause Level 2 Cause Effect Problem/ Desired Improvement Environment Methods Machines © 2001 ConceptFlow 27 .Basic Structure .

Construction Of The Diagram Materials c n Methods c n C/N/S Problem/ Desired Improvement c n s n n c Machinery Personnel C = Control Factor N = Noise factor S = Standard Operating Procedure Shows various influences on a process to identify probable root causes of problem or defect © 2001 ConceptFlow 28 .

Estimated Ship Date Change MEASUREMENTS SUPPLIES PEOPLE Order Entry Schedule Changes In Transit Times Inventory Accuracy Back Order Consolidation PC Delays Off Shift Support MDC Ship Confirm Late Order Cancellations MDC Practices Estimated Ship Date Changes Algorithm Anomalies MDC NCSC NCSC Practices ENVIRONMENT © 2001 ConceptFlow PLACES POLICIES & PROCEDURES 29 .Business Process Example .

MINITAB Generated C&E Diagram C&E for Estimated Ship Date Changes Measurements In Transit Time PC Delays Backorder Consolidat Schedule Changes Off Shift Support Inventory Accuracy Order Cancellations MDC Ship Late Supplies People Order Entry Estimated Ship Date Changes MDC Practices NCSC NCSC Practices MDC Algorithm Anomalies Environment Places Policies & Procedures © 2001 ConceptFlow 30 .

Control Charts • Product Cost • COPQ: recorded defect and scrap cost/rates • Manufacturing Operation or Process Documents • Current Control Plans • Standard Operating Procedures • Manufacturing Lead Time • Attendance • Safety • Downtime • Preventative Maintenance Schedules • Expedited Transportation • Material Shortages • Throughput Yield • Current Visual Controls © 2001 ConceptFlow 31 .Process Reports And Assessments Various Types: • Present Value Stream Map and Future Value Stream Map • Existing Quality Reports.

Greatest Potential Benefit Gray .Worthwhile Opportunity Iterate Assign Buyer C/T = 3 days W/T = 4 hours VA/T = ~ 0 Gather Strawman Requirements C/T = 14 days W/T = 2 days VA/T = 1 day Verify Customer Requirements C/T = 14 days W/T = 2 days VA/T = 1 day Consult With Manufacturing Engineer C/T = 5 days W/T = 2 days VA/T = 4 hours Create Preliminary RFQ C/T = 5 days W/T = 2 days VA/T = 1 day Revise Review and Approval Cycle C/T = 5 days W/T = 1 day VA/T = ~ 0 Continue Create Final RFQ C/T = 5 days W/T = 2 days VA/T = 1 day Review and Approval Cycle C/T = 5 days W/T = 1 day VA/T = ~0 Continue Release RFQ C/T = 2 days W/T = 1 day VA/T = 2 hours Revise © 2001 ConceptFlow 32 .Prioritize Waste/Defect Opportunities Customer Meetings C/T = 14 days W/T = 2 days VA/T = 1 day Dark Gray .Case Example .

. Reduce final approval cycle 6.Case Example . Eliminate first iteration loop to determine client needs 2. gathering Involve ME in client meetings or use a “feed forward” of info. Use a reservation system to enable immediate review Implement real-time priority system to eliminate queue Now assign responsibilities and due dates. info.. Use client-defined template and feed forward of prelim. Reduce time to assign buyer Impact Ease 5 5 3 4 4 3 3 2 3 3 4 3 Priority 15 10 9 12 16 9 Six Sigma/Lean Method Hold focused client needs negotiation meeting Use template or checklist to accelerate info. Eliminate first approval cycle 5. Reduce time required to consult with manufacturing engineer 4. Reduce time to gather strawman requirements 3. and get started! © 2001 ConceptFlow 33 .Identify Lean Methods And Assign Action Items Waste Opportunity 1.

Map “Future State”. And Deploy Customer Meetings C/T = 14 days W/T = 2 days VA/T = 1 day Assign Buyer C/T = 1 day W/T = 4 hours VA/T = ~ 0 Gather Strawman Requirements C/T = 5 days W/T = 2 days VA/T = 1 day Hold Focused Customer Needs Negotiation C/T = 2 days W/T = 2 days VA/T = 1 day Consult With Manufacturing Engineer C/T = 5 days W/T = 2 days VA/T = 4 hours Create Preliminary RFQ C/T = 5 days W/T = 2 days VA/T = 1 day Revise Review and Approval Cycle C/T = 5 days W/T = 1 day VA/T = ~ 0 “As-Is” Process Cycle Time: C/T = 58 days W/T = ~14 days VA/T = 5 days Continue Create Final RFQ C/T = 5 days W/T = 2 days VA/T = 1 day Review and Approval Cycle C/T = 1 day W/T = 1 day VA/T = ~0 Continue Release RFQ C/T = 2 days W/T = 1 day VA/T = 2 hours Targets for First Round Improvement: C/T = 16 days W/T = ~8 days VA/T = 5 days © 2001 ConceptFlow 34 . Perform Demo.Case Example .

Key Learning Points • • • • © 2001 ConceptFlow 35 .

Module Review By the end of this module participants should be able to: • Develop a Spaghetti Chart to identify waste • Develop a Process Flow Diagram to identify waste • Create a Pareto Chart to identify waste • Develop a Cause and Effect Diagram to identify waste • Utilize Process Reports and Assessments to identify waste © 2001 ConceptFlow 36 .

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