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 Recap…

TOYOTA

Toyota
Production System

People

Just-in-Time
• Single Piece Flow • Autonomation

Jidoka
• Pull Production People • Built-In Quality
• TAKT Time Production • Stopping at Abnormalities
People

Heijunka
• Level Loading
• Sequencing
• Stability

Some Key Lean Concepts developed at Toyota

Advanced Lean
Lean Thinking Recap…

A principle driven, tool based philosophy that focuses on

eliminating waste so that all activities/steps add value
from the customers perspective.

Lean Thinking is all about continuous waste elimination !

Imagine Office Processes with:

• Higher Customer Satisfaction
) O ff ice
• Shorter Lead Time a c k-
• Higher Flexibility a k i ng (B
v an tage
M g i c ad
te
• Higher Quality a stra
• Lower Costs
• Higher Employee Satisfaction

Advanced Lean
 Lean Explained Recap…

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

 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 Recap…

The new way: Price - cost =Profit

Increase profit by Cost Reduction

Price to sell

Some profit Bigger profit

Cost to produce

Advanced Lean
 Lean Benefits Recap…

Cycle Time
Wait Time
(non value
add) Before
Work Time
(value add) After
Same work
completed in less
Productivity time
Cost
Customer satisfaction Cost/Chaos
Defects
Profit
Lead time
Customer responsiveness
Inventory
Capacity
Space
Quality
Waste!
Cash flow
Cycle time
On time delivery

Relentless Focus on Reducing non value adding activities

Advanced Lean
 Lean Usage Recap…

Lean vs. Six Sigma

Methodology
Strengths

Define Measure Analyze Improve Control

Lean Six Sigma

Six Sigma • True VOC is • Confirms Data • Data Driven • Few Tools to • Few Tools or
Powerful Quality Analysis Create Change in Direction
Critical X’s

Lean • Value Stream • Standard Work • Observation and • Many Tools for • Communicative
Mapping . . . & Target Sheets Intuition Based Driving Change
• Centered on Stable,
Boundaryless & . . . Assumes Analysis . . . PQ,
• Mixed Model Plan, Repeatable Process
Multi-Generational Data is Good PR, TAKT Time
Kan Ban, Visual
• Automation
Management

Apply Any Tool from your Quality Tool Box

Advanced Lean
 Lean Usage Recap…

When do I use Lean?

Six Sigma
Hybrid AWO
Project
Effort

Effort

Effort
Time Time Time

Average ~ 4 Months Average ~ 4 Months Average ~ 1½ Months

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

Advanced Lean
 Lean Usage Recap…

Lean vs. Six Sigma?

Lean Simple or Wing to wing Breadth
Six Sigma Complex and Focused Depth
Lean Lean Six Sigma Six Sigma/Lean
Helps identify steps that don’t add value Identifies problems in the Improves the capability of Improving the capability can
and provides tools to eliminate them flow steps that do add value eliminate additional steps

X Energizing
X
Empowering
Lean
Team work,
Success Boundary less / Open mindset GE
Passion for improvement
Factors/ Intuition / Action Values
Impact Customer focus

Lean: Strengthens GE’s journey to Excellence

Advanced Lean
 Lean Usage Recap…

So, why do I need Lean?

Principle New ways to think about problems

Toolkit
New problem solving tools and concepts

Process
An improvement methodology focused on action
Solutions
Simple Complex

Known Just Do It!! Lean!!

Causes
Ask an
Unknown Six Sigma
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 Challenge
• Value Stream Mapping, • More waste reduction
other lean tools, etc. • Real continuous flow
• Flexible workforce
Old situation Results • Less variance
• Reduction of waste • Less waste
Issues • Learned to ‘see the flow’
• Inventory
• Couple of improvements
• Waiting
• Defects
•… Remaining Issues
• No real continuous flow
• Still significant amount of
No flow in the value
waste.
stream.

Processes full of waste

Advanced Lean
 Lean Toolkit Recap…

Level 1 Level 2
Reduce Variability
Control the Process

 Value Stream Mapping

Tool Sophistication

Expose the Waste  Standardized Work

 Intro to Continuous Flow
 5S  Intro to Pull Production
 MUDA
 Mistake proofing
 Intro to Value Stream Mapping
 Visual Management

Time / Cultural Maturity

Applying the right tools at the right stage

Advanced Lean
 Lean Tools Overview Recap…

A number of Lean Tools and Techniques are available

Actions Tools and Techniques

Bring Organization & 5S Framework

Cleanliness to work
area
Understand Value Stream Mapping
Value
Implement pull-based Kanban, Just-in Time
flow
Reconfigure work U-Shaped Cells
areas
Institute continuous Kaizen Events
improvement philosophy
Benefits
Realized

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

Advanced Lean
 Lean Tools Description Recap…

Exposing the Waste ~ Recap…..

 5S

 7 Wastes

 Mistake proofing

 Visual Management

Advanced Lean
5S Recap…

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

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

Advanced Lean
 Muda ~ 7 Wastes Recap…

MUDA – Lean is a way to continuously eliminate waste

The Seven Deadly Wastes Examples Incorrect Layouts of office, factory, etc.
Lack of Proximity Of Machines
Off-line Resources
Motion
Watching Machines Work
Long Set-ups and Lead Times
People
Waiting
Large Batches and Inventory
Planning Full Utilization of Machines and Labor
Overproduction Producing More Goods than Marked Demand

Poor Machine Maintenance

Unnecessary Processing Steps
Processing Longer Lead Times
Process
Long Delays for Troubleshooting
Defects Costly Rework
Dissatisfied Downstream Customers
Inventory High Stocks of Raw Material, WIP, & Finished Goods
Additional Space Requirements
Clutter
Product
Transportation Unnecessary Movement
Extra Handling
“Moving Inventory”

At the end, everything results in Cost!!

Advanced Lean
Mistake Proofing Overview Recap…

• A technique for eliminating errors

• Making it impossible to make mistakes

BEST Elimination
> Eliminate the possibility of error
Replacement Use
Use the
the highest
highest level
level
> Substitute a more reliable process
possible
possible for
for the
the
Facilitation
BETTER application.
application.
> Make work simpler to perform
Detection
> Detect the error at the defect source
Mitigation
GOOD > 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 Recap…

Why Visual Management ….

• 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 Tier 2 Tier 1 General Customer
Materials Suppliers Suppliers Electric

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)
Lean: Fundamentally Change how we do business
Advanced Lean
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
 Five Lean Principles
Define value in from the
customers perspective and
express value in terms of a
specific product
1 2 Map all of the steps…value
Specify Value Map the added & non-value added…
Value Stream that bring a product of service
to the customer

3
5 Establish Flow
Work to
Perfection
The complete elimination of The continuous movement of
waste so all activities create products, services and
value for the customer information from end to end
through the process
4
Implement
Pull
Nothing is done by the upstream process
until the downstream customer signals the
need

The Tools get you there…The Principles keep you there

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

 Specify value from the standpoint of the end Waste:

customer  Activities that add no value,
add cost and time
 Ask how your current products/services and
processes disappoint your customer’s value  Symptoms; need to find root
expectation: causes and eliminate them
 7 types of waste
 price?
 quality?
•Incidental
Incidental
 reliable delivery? Work
•Work
 rapid response to changing needs? •Pure
PureWaste
Waste

 fundamental definition of the product? •Pure Waste

•Value
Value

Typical Operation: 1-10% Activities are Value Adding

•Value

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

 Identify all of the steps currently required Value stream

to move products from order to delivery
All activities, both value added and non-
 Challenge every step: Why is this value added, required to bring a product
necessary? Would the customer think the (or provide a capability) from raw
product is worth less if this step could be material (initialization) into the arm of
left out? the customer
 Many steps are only necessary because of 3 Main Value Streams:
the way firms are organized and previous
decisions about assets and technologies 1. Raw material to customer
2. Concept to launch
3. Order to cash

Mapping the VS – See the whole and improve the system

Advanced Lean
 Five Lean Principles

3. Establish Flow Line up all steps that truly create value in a rapid sequence
 Continuous movement of products,  Require that every step in the process be:
services and information through the
various transactions from end to end  Capable – right every time (6 Sigma)
in the process
 Available – always able to run (TPM)
 Flow appears impractical and
illogical because we have been  Adequate – with capacity to avoid bottlenecks and
trained to think in terms of: over capitalization (right-sized tools)
 departments, silos
 batches, queues
 efficiencies and backlogs

Batch Processing – 1 minute per piece Continuous Flow – Make One Move One

A B C A B C
Cycle Time= 30++ Min (weeks) Cycle Time= 12 Min

Applying the right tools at the right stage

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

 A system of cascading production  Through lead time compression & correct

and delivery instructions in which
nothing is done by the upstream
supplier until the downstream
customer signals the need
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)

One more
Okay
please!

supplier customer

Pull: Customer Centric

Advanced Lean
 Five Lean Principles
5. Work to Perfection A continual cycle of process improvements

 There is always more waste

 People learn and exercise more creativity
 Involve employees in the process, training them as you proceed.

 Continuous improvement leads to innovation

 Use root cause analysis to solve problems promptly and permanently. Next Future State
 Make objectives visible

Future State

Current State Original State

Continuous Improvement never stops

Advanced Lean
 Lean Advanced Toolkit

Level 1 Level 2
Reduce Variability
Control the Process

 Value Stream Mapping

Tool Sophistication

Expose the Waste  Standardized Work

 Intro to Continuous Flow
 5S  Intro to Pull Production
 MUDA
 Mistake proofing
 Intro to Value Stream Mapping
 Visual Management

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

C T
A VI
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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
• Identify the Value Stream for every major product
Product
ProductFamily
Family family/program. Concept to launch - Order to
delivery

Current
CurrentState
State • Map the current state - Identify all the actions that
Drawing
Drawing don’t create value. Challenge every step

• Develop and map concepts for the future state as a

Future management team
FutureState
State
Drawing
Drawing
3

Implementation • Develop actions and drive toward future state

Implementation
Plan
Plan

After completion….look for other opportunities to improve

Advanced Lean
 Value Stream Mapping
Current Future
Flow:
Das h Value S t re am Map – Init ial S t at e Das h – Le an Pro je ct Funne l
Information OPSI 13 WEEK FORECAST OPSI 13 WEEK FORECAST
Material Sales Sales
Forecast Forecast
Prod’n Cont.
4 WEEK
Prod’n Cont.
4 WEEK Too Much
FORECAST Prod’n Cont. FORECAST Prod’n Cont.
13 WEEK 13 WEEK Variation
FORECAST
GEC Weekly CRC Orders FORECAST
GEC Weekly CRC Orders
HLA HLA
Daily Orders Daily Orders He ijunka
Daily Daily
Orders MRP Orders MRP
Too Much
Suppliers Customer Suppliers Too Much Variation Customer
Daily Variation Daily He ijunka
Schedule Schedule
He iju nka
• Portable Unit
• Monitors Patient Vitals
• Produce ~4,000/Qtr Irregular Cre ate S u p e rm arket Irregular
• Over 30,000 Variations
Too Much
Inventory Cre ate S u p e rm arket
Brd s + RIP Brd s + RIP
3 Bd . As s y. 3 Bd . As s y.
$3,300,000 $3,300,000
2,360 Un its Te st WIP+FG 2,360 Units Te s t WIP+FG
19 Da ys Wo rth $1,700,000 19 Da ys Wo rth
$425,000
11 Da ys Wo rth 10 Da ys Wo rth
$425,000
11 Da ys Wo rth
Too Much
$1,700,000
10 Da ys W o rth
As s ’y W IP As s ’y W IP
210 Un its Cre a te S u p e rm arket 210 Un its Inventory
$513,000 $513,000
3 Days Wo rth Heiju nka , J IT 3 Da ys Wo rth
Too Much J IT J IT J IT He iju nka , Late Pt. ID
S MT HA TES T AS S Y TES T CONF SHIP Inventory SMT HA TES T AS S Y TES T CONF SHIP
Long Too Much
Batch Batch Batch Batch
Ra w Bd s 3 2 2 6 4 2 6 Ra w Set
Bd s Ups
3 2 2 6 4 2Variation 6
No n-Value Add No n-Value Add
8 WKS 8 WKS
7 Da ys 3.5 Days 8 Da ys 10 Da ys 10 Da ys 5 Da ys 1,020 Hrs. (98% o f Time ) 1,020 Hrs. (98% o f Time )
7 Da ys 3.5 Days 8 Days 10 Da ys 10 Days 5 Days
S MED
15 Min . 42 Min . 24 Min . 30 Min . 1020 Min . 25 Min . 30 Min . Value Add 15 Min . 42 Min. 24 Min . 30 Min. 1020 Min . 25 Min . 30 Min. Value Add
20 Hrs . (2% o f Tim e ) 20 Hrs . (2% o f Tim e)

2% Value Ad d e d Tim e …98% W as t e Cle arly Id e nt ifie s Op p o rtunit ie s t o Driv e S us t ainab le Chang e

Template ~ Create your own

Create a Value
Value Stream Map Stream

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
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
EXTERNAL
AGENCY
GECFA
No Phones
Collections
L NL
GE Money
Mainframe EXITS
(Vision Plus)
L
X

0-29 days Mainframe c c c c

past due
Workable/Non
V+,CPAC,
IWP DMS c c
FCS Sentricx Hold
accounts ICBS
Workable App req

4 Hours + 4 Mins 10+5+5 Mins 3-9 10 + 4 Mins 5 - 11

DAYS DAYS

L = Locate
NL = No Locate
C = Call made Wait Time
Wait Time: up to 14 days Reduce TAT from 3-9Days
X
Value Add: ~ 35 Min 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

C T
A VI
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L E A N
ENTERPRISE

Advanced Lean
Standard Work

Why have Standard Work? Waste Elimination

1. 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

Office Processes
Normal vs. Abnormal • Often poorly defined
When normal and abnormal work activities are • Examples:
• Standardize Input
undifferentiated, waste almost inevitably occurs. • Hand-off can create huge waiting time.
Reduce time by standardization
Standard Work provides an efficient framework in
which to determine when an abnormality has Flow effect
• Provide clarity about activities
occurred so that it can be addressed. • Reduce process variance
• Makes process reliable
• Exposes more waste

Identify Problems

Normal vs. Abnormal

Why?
Provides the Basis for Kaizen
Advanced Lean
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. Each worker understands their task.
2. All tools and equipment are at arms length
3. Standard work has been practiced to perfection
4. 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. Activity
B. Connection between activities

Connection

Activity Customer

Advanced Lean
Standard Activity

Customer
Activity

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. TAKT time
2. Work sequence
3. 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

Available Time Office Processes

TAKT time formula: • Check any time if you’re on schedule:
Required Output Daily 400 in-voices.
It is 13:30, are we on schedule?
(Customer or Forecasted Demand)

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

Person Orders
A B C D
(60”) (60”) (60”) (12”)

Advanced Lean
Standard Work: Work Sequence
Element 2

Standard Work Work Sequence

• What has to be done? The order in which an person performs a series of
• In what sequence? repetitive tasks. It should be differentiated from the
• How much time can it take? processing sequence, which is the order in which the
part is processed.

Standard Work / Combination Sheet Standard Work Sheet

Production Line Operator
Produc tio n Lin e Ce ll 6 O pe rato r
New / Rev Page 1 of 1 Date 2/6/02 AMX Ne w / R e v P age 1 of 1 Date 2nd Q tr. ‘01 Part N um ber
All Parts

Use this
Organization Area Supervisor Part Number
O rganization Area Supervisor
Standard Work Shannon Tubing CFM Cell Fern Bis sonnette Standard W ork Sh eet Part N am e All Tubes
X-Ray Station 1 & 2 J. David Combination Sheet Part Name

Time Production Req'd Takt/Rate Time Manual Travel ~~~~~~~~

Step Operation Name Sec ( ) Min (X) Hr ( ) Auto Wait O rbital
W eld End Finish W eld End Finish

Template
No. 10 20 30 40 50 60 70 74 80 90
Manual Auto Travel W eld
1 Check Motor 3 3
F lex
2 Issue DHR 2 2
3 Install Gen. Housing 10 5
4 Install Clips 5 4 O utsid e Cell
Torch
5 Install Term. Strip 6 6
Braze FPI
6 Install/Wire Latch 4 4 X-Ray
7 Jumper Wire to Filter 10 6 M ech. M ech. EDM
M ark Hydro Te st
Clean Clean

W eld End
Finish

Standard Work Scope of O perations # Lots o f To tal M anual & Travel T im e Takt/Rate
Q uality Safety Standard Sta ndard Time
Totals 40 30 Operation Time O perator M an/Trave l T ime
T/T
Raw m ater ial
Ch eck Precau tion W ork -in -Proces s W ork-in-Proce ss 10 0/Day
Fro m : 27 - av g lot = 6
T urns D PU 's
To : 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