Lean Management: Basics

LEAN MANAGEMENT
BASICS
© 2013 ICOPE - All rights reserved.

OVERVIEW ON LEAN
MANAGEMENT
What is Lean
Why to use Lean
Where to use Lean
When to use Lean
5S
8 Wastes
Standard work
Visual
Management
LEAN
MANAGEMENT
IMPROVE PHASE – PART 6

WHAT IS LEAN
MANAGEMENT
LEAN Management:
It is a customer focussed waste elimination method that makes the process and
there by organization lean (eliminating Fat)
In a Lean company, employees always look to improve their skills and improve the
processes. Products and Services are driven in right amounts, to right location, at
the right time and in the right condition.
Lean Thinking
The Goal of Lean Thinking is the creation of a continuous stream which delivers
customer value with the least waste of resources within the shortest possible
time.
The Building blocks of Lean Management are 5s, 8 Wastes, Visual
Management
and Standardised work
LEAN MANAGEMENT
LEAN Management

WHY
LEAN

WHY TO USE LEAN – BENEFITS
Individual Organizational
• Develops Leadership thinking • Improved quality of product or
• Improved decision making skills service
• Ability to use problem solving tools • Reduced process cycle time
and techniques • Development of staff skills
• A better You as an Individual / • Common language throughout the
Manager organisation
INTRODUCTION TO THE PROGRAM – PART 2

WHERE TO USE
LEAN

WHERE TO USE LEAN
TYPE OF INDUSTRIES • TYPE OF FUNCTION
Manufacturing •Customer Service
Telecom Production
Banking & Insurance Administration
Healthcare Sales & Marketing
Education Finance
• Research & Development
Hospitality
Operations
Airlines
• Training & Development
Construction
• Human Resource
Software
Management IT
Space Research & Military • Quality
Any function where (internal/external) CUSTOMER is
Any industry where (internal/external) involved
CUSTOMER is involved

WHEN TO USE
LEAN

WHEN TO USE
LEAN
CAUSES
KNOWN UNKNOWN
SIX
HIGH
LEAN
SIGMA
IMPAC
T
DO IT ASK
LOW
YOURSEL EXPERT
F

5S

5
S
What is 5S:
5S is a methodology which helps us to better organise our workplace in order
to improve safety/controls and productivity
5S is the foundation on which to build a leaner organisation
Where 5S is used?
At any work station or work place. Traditionally used on the shop floor, but
equally relevant in office environments, service, on-site works and even
computer file storage.

5S –
Cycle
5S Cycle:
Sort
• Seri
Sustain Straighten
• Shitsuke • Seiton
Standardise Shine
• Seiketsu • Seiso

5S
5S Description
• Remove all items from the work area

• Identify all items required to add value at the workstation
• Eliminate duplicates, infrequently used items, and trash
Sort • Identify these items as waste or not critical with red tags
• Store red tag items in a dedicated Red Item’s Area
• Take the equipment required in the workstation area and organize it based on
frequency and point of use
Straighten • Assign locations for all equipment, WIP (Work In Progress), and raw materials and
include minimum / maximum levels to be held
• Consider ease of reach, identification and proximity to work surface
• It’s all about cleaning. Clean the floors, walls and equipment
• Ensure all items are restored to their designated place
Shine • Cleaning becomes part of daily tasks and responsibilities
• Clear schedules and standards are developed and worked to
• Ideas to reduce the need to clean are generated and actioned

5S
5S Description
• Standardize maintains the result of the prior three steps

• Define standardized work, cleaning and organizational procedures for the prior 3 S’s
Standardize • Document the desired state of operations with pictures, short instructions of 5S
procedures and target KPIs
• Clarifies who is responsible for each operation
• Sustain aims to make the new standards and procedures, the new habit – “The way
we do things around here”
• Habits initially take time and effort to develop and maintain - cultural change
Sustain • Sustain, holds the other 4S together and embeds them into the culture
• Without a strong emphasis on Sustain, the new standards will lapse and there will be
slippage back to the ‘old ways’

5S
5S Table

5S -
BENEFITS
Improved
Safety
Involves
Improved
Employees in
Productivity
5S
improvement
Foundation
Reduces
to Lean
Waste
Organizatio
n

8
WASTES

WAST
E
VSM Key Terms:
Waste: Any activity that consumes time and resources like manpower,
machinery, money etc., and does not contribute in meeting the customer
requirements.
Types of Wastes: There are 3 types of wastes
MUDA: WASTE MURI: OVERBURDEN
MURA: UNEVENNESS
ANALYSE PHASE – PART 5

TYPES OF
WASTES
VSM Key Terms:
Types of Wastes:
MUDA: Any activity in the process that does not add value. MUDA is not creating
value for the customer. In short: WASTE
MURA: Any variation leading to unbalanced situations. In short: UNEVENNESS,

inconsistent, irregular.
Mura exists when workflow is out of balance and workload is inconsistent and not
incompliance with the standard.
MURI: Any activity asking unreasonable stress or effort from personnel, material
or equipment. In short: OVERBURDEN
Muri means: a too heavy mental- or physical burden. For machinery Muri means:
expecting a machine to do more than it is capable of or has been designed to do.

8 - DEADLY
WASTES
Types of Muda (Wastes):
Muda is again classified in to 8 types as follows.

The popular acronym for the 8 wastes - DOWNTIME
Defects
Over Production
Waiting
Not using employee creativity
Transportation
Inventory
Motion
Extra Processing

8 - DEADLY
WASTES
Waste Type Description
Defects Any product or process not meeting the customer requirement
Over Production Making something before it is truly needed
Waiting Time when work-in-process is waiting for the next step in production
Not using employee creativity Not effectively using the collective talents, skills and knowledge of all
employees and suppliers
Transportation Unnecessary movement of raw materials, work-in-process or finished

goods
Inventory Product (raw materials, work-in-process, or finished goods) quantities that

go beyond supporting the immediate need
Motion Unnecessary movement of people
Extra Processing More processing than is needed to produce what the customer requires

8 WASTES -
BENEFITS
Reduces
Time
Involves
Improved
Employees in
Productivity
improvement
8W
Improves
Reduces
Customer
Waste
Satisfaction

VISUAL
MANAGEMENT

VISUAL
MANAGEMENT
What is Visual Management
Visual management is a method of creating an information-rich environment by
the use of visual signals, symbols and objects
It helps anybody in the workplace to know what the current status is and what to
do next
Where to use Visual Management

In any workplace where working to a standard is key
Use it in teams, to create shared understanding and build teamwork
How to use Visual Management:

Understand elements of the workplace & process that are key
Consider methods to make standards clear and easily understood
Use it in teams, to create shared understanding and build teamwork.
Build participation through shared information
Conveying Information - Work environment, safety, operations, storage, quality, equipment…
Visual Displays - what, where, when, who and how
Visual Controls – for controlling the process (e.g. action triggers)

VISUAL MANAGEMENT -
GUIDELINES
Visual Management Step Description
Understand the standard • Identify key characteristics of the standard process

process
• Consider methods which communicate important information, but do not

control the process.
Consider Visual Displays • Consider what, when who, when and how.
• Involve the team
• Select clear simple visual displays
• Consider building visual controls into the process to ensure that activities
are performed according to standard
Consider Visual Controls • Consider what, when who, when and how
• Involve the team
• Select clear simple visual controls
Implement Visual • Brief and action the team to implement the agreed visual management
Management
• Continually monitor any visual displays and controls

Maintain & Review • Update all displays at agreed intervals
• Review effectiveness and amend accordingly

VISUAL MANAGEMENT - EXAMPLES
Examples:

VISUAL MANAGEMENT -
BENEFITS
Creates a
standard
work
environment
Involves
Improved
Employees in
Productivity
improvement
Visual
Management
Can be
understood Simple & Low
& adopted cost
quickly

STANDARD
WORK
CONTROL PHASE – PART 7

STANDARD
WORK
What is Standard Work
A simple written description of the safest, highest quality, and most efficient way
known to perform a particular task, (i.e. a checklist to lead someone through the
task).
It describes the only acceptable way to do the process.
Expected to be continually improved
Includes the amount of time allotted to hand-off the task to the next step of the
process.
Focuses on the process, not the equipment or materials
Reduces variation, increases consistency

STANDARD WORK -
STEPS
Steps for Creating Standard Work
1. Define the extent of the task for which you are creating standard work (e.g. starts at…
ends at…)
2. Determine the appropriate standard work requirements
Name of process
Author
Revision date
Task name
Work sequence (i.e checklist, procedure)
Time allotted for task – next task in sequence
3. Gather best practices

4. Create the standard work document
5. Train the supervisor on the standard work
6. Train the employees to do the standard
work
7. Run the process and observe the results
8. Make adjustments and modifications to
the standard work
STANDARD WORK – DOs & DON’Ts
DO:
• Keep standard work simple DON’Ts
• Put standard work in a desk drawer
:
• Make it accessible • Change processes without changing
• Include all information on one, easy-to- standard work
read document
• Make standard work difficult to change
• Create one standard work document
for each part of the process • Give up on standard work – it can be tough,
but it’s very important
• Always look for ways to improve the
process.

STANDARD WORK –
TEMPLATE
• Template
Owner Approved By Revision Date
Process
Start Point
End Point
Task
Process steps

STANDARD WORK -
BENEFITS
Creates a
standard
work
environment
Reduced
Reduces
time for
Variation
processing
Visual
Management
Can be
understood Less people
& adopted
quickly dependent

Thank
you . . .


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LEAN MANAGEMENT

© 2013 ICOPE - All rights reserved.

IMPROVE PHASE – PART 6

IMPROVE PHASE – PART 6

IMPROVE PHASE – PART 6

INTRODUCTION TO THE PROGRAM – PART 2

IMPROVE PHASE – PART 6

INTRODUCTION TO THE PROGRAM – PART 2

IMPROVE PHASE – PART 6

INTRODUCTION TO THE PROGRAM – PART 2

IMPROVE PHASE – PART 6

IMPROVE PHASE – PART 6

IMPROVE PHASE – PART 6

• Remove all items from the work area

IMPROVE PHASE – PART 6

• Standardize maintains the result of the prior three steps

IMPROVE PHASE – PART 6

IMPROVE PHASE – PART 6

IMPROVE PHASE – PART 6

IMPROVE PHASE – PART 6

MUDA: WASTE MURI: OVERBURDEN

ANALYSE PHASE – PART 5

MURA: Any variation leading to unbalanced situations. In short: UNEVENNESS,

ANALYSE PHASE – PART 5

Muda is again classified in to 8 types as follows.

ANALYSE PHASE – PART 5

Over Production Making something before it is truly needed

Transportation Unnecessary movement of raw materials, work-in-process or finished

Inventory Product (raw materials, work-in-process, or finished goods) quantities that

Motion Unnecessary movement of people

ANALYSE PHASE – PART 5

IMPROVE PHASE – PART 6

IMPROVE PHASE – PART 6

Where to use Visual Management

How to use Visual Management:

IMPROVE PHASE – PART 6

Understand the standard • Identify key characteristics of the standard process

• Consider methods which communicate important information, but do not

• Continually monitor any visual displays and controls

IMPROVE PHASE – PART 6

IMPROVE PHASE – PART 6

IMPROVE PHASE – PART 6

CONTROL PHASE – PART 7

It describes the only acceptable way to do the process.

Expected to be continually improved

Focuses on the process, not the equipment or materials

Reduces variation, increases consistency

CONTROL PHASE – PART 7

3. Gather best practices

CONTROL PHASE – PART 7

CONTROL PHASE – PART 7

IMPROVE PHASE – PART 6

IMPROVE PHASE – PART 6

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