Professional Documents
Culture Documents
Advanced Lean
Advanced Lean
Agenda
• 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 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
Advanced Lean
Lean Thinking Recap…
Advanced Lean
Lean Explained Recap…
What is Lean?
A strategy, philosophy, process and leadership approach for operating in a superior
way. Results include:
Increased quality
Advanced Lean
Lean Explained Recap…
Price to sell
Bigger profit
Some profit
Cost to produce
Advanced Lean
Lean Explained Recap…
Price to sell
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
Methodology
Strengths
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
Advanced Lean
Lean Usage Recap…
Six Sigma
Hybrid AWO
Project
Effort
Effort
Effort
Time Time Time
Advanced Lean
Lean Usage Recap…
X Energizing
X
Empowering
Lean
Team work,
Success Boundary less / Open mindset GE
Passion for improvement
Factors/ Intuition / Action Values
Impact Customer focus
Toolkit
New problem solving tools and concepts
Process
An improvement methodology focused on action
Solutions
Simple Complex
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.
Advanced Lean
Lean Toolkit Recap…
Level 1 Level 2
Reduce Variability
Control the Process
Advanced Lean
Lean Tools Overview Recap…
Advanced Lean
Lean Tools Description Recap…
5S
7 Wastes
Mistake proofing
Visual Management
Advanced Lean
5S Recap…
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
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
Advanced Lean
Visual Management Overview Recap…
Seeing is Believing
Advanced Lean
• Lean Overview … Recap
• Lean Methodology
Five Lean Principles
• 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
Advanced Lean
Five Lean Principles
Lean Thinking
The Fundamental Objective The Fundamental Insight
Provide perfect value to the customer Focus on each product and its value
through a perfect value creation stream rather than organizations,
process with zero waste in: assets, process technologies, and
career paths
Design (concept to customer)
Ask which activities are waste and
Build (order to delivery) which truly create value
Service (order to cash) Enhance value & eliminate waste
Advanced Lean
Five Lean Principles
Define value in from the 1 2 Map all of the steps…value
customers perspective and Specify Value Map the added & non-value added…
express value in terms of a Value Stream that bring a product of service
specific product 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
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.
•Value
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)
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
One more
Okay
please!
supplier customer
Advanced Lean
Five Lean Principles
5. Work to Perfection A continual cycle of process improvements
Future State
Advanced Lean
Lean Advanced Toolkit
Level 1 Level 2
Reduce Variability
Control the Process
Advanced Lean
Lean Tools Description
Reduce Variability
Control the Process
Standardized Work
Advanced Lean
Value Stream Mapping
C T
A VI
P SI
EN O
N
G
L E A N
ENTERPRISE
Advanced Lean
Value Stream Overview
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
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 makes decisions about the flow apparent, so you can discuss them
• it ties together lean concepts and techniques helps you avoid "cherry picking"
• it shows the linkage between the information flow and the material flow
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
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
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
Advanced Lean
Trace Collection Process: VSM
EXTERNAL
AGENCY
GECFA
No Phones
Collections
L NL
GE Money
Mainframe EXITS
(Vision Plus)
L
X
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
P SI
EN O
N
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L E A N
ENTERPRISE
Advanced Lean
Standard Work
Advanced Lean
Standard Work
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
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.
Advanced Lean
Levels of Standardization
Connection
Activity Customer
Advanced Lean
Standard Activity
Customer
Activity
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.
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
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
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
Standard Work Sheet and Standard Work/Combination Sheet defines the Work Sequence
Advanced Lean
Standard Work: Standard WIP
Element 3
Advanced Lean
Standard Connection
Connection
Customer
Advanced Lean
Standardization and Flexibility
Advanced Lean
Relation with other Lean Tools
Advanced Lean
Relation with other Lean Tools
Kaizen
Standard Work provides a basis for
improvement, because it exposes waste by Standard
abnormalities. These abnormalities are then
subject to Kaizen Events to improve the
processes.
Not Here …
Advanced Lean
Summary
Standard Work
…prevents waste to occur.
…exposes waste and is the basis for continuous improvement.
…increases your flexibility.
Advanced Lean
Introduction to Single-Piece-Flow
(Continuous Flow)
C T
A VI
P SI
EN O
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L E A N
ENTERPRISE
Advanced Lean
Single-Piece-Flow in a Cell
Single-Piece-Flow A B C
Carrying out one-piece-at-a-time
processing in order to eliminate
stagnation of work (queue) in and
between processing steps. A B C
Advanced Lean
Batch Vs Single Piece Flow
Advanced Lean
Why Use Single Piece Flow ?
Advanced Lean
Where to start?
Single
SingleFacility
Facility
(door-to-door)
(door-to-door)
Multiple
Multiple
Service
ServiceFacilities
Facilities
Across
AcrossCompanies
Companies B. An (potential) area for
Cell
Advanced Lean
Which process area?
Supplier = Customer ?
Yes
A main characteristic for office processes is that the customer of the process is often the
supplier of the needed information for doing the whole value stream, as well. Therefore,
the customer often has to wait for the whole lead time of the process.
Start within the area with the
biggest potential of lead-time reduction.
No
Start with the pace-maker process.
That are the process steps in the value stream
that are closed to the customer.
Advanced Lean
Roadmap - Creating Continuous Flow
1. Cell Content
Start looking at what items you should have in the cell.
2. Actual Work
Then analyze actual work to be done in the cell.
3. System, Item, and Lay-out
Optimize System, Item, and Cell Lay-out for creating continuous flow.
4. Work Distribution Going to reduce waste out
of:
Distribute the Work among the People
• Steps
5. Implement, Sustain, and Improve • People activities
Actual implementation of Continuous Flow in a Cell • System activities
• Item design
• Lay-out
Advanced Lean
Questions for Creating Continuous Flow
Key questions
Cell Content
• Do you have the right end items?
• What is the Takt Time?
Actual Work
• What are the work elements necessary to make one piece?
• What is the actual time required for each work element?
System, Item and Layout for Flow
• Is your System suitable for flow?
• Is your item design for optimal continuous flow?
• How can the process be laid out so one person can make one piece as efficiently
as possible?
Work Distribution
• How to use your people efficiently?
• How will you distribute the work among the people?
Advanced Lean
Do you have the right items?
1. Flexibility
Cell for multiple items
+ More flexible for
changing demand
+ Pushes you to create
short changeover time
Cells for one item (waste reduction) Cells for multiple items
A B A&B A&B
Advanced Lean
Identify Items for cell
Start with the product or service, that is the customer’s only interest in GE.
To simplify, identify the product/service families:
A group of products/service that go through the same or similar ‘downstream’ steps.
A X X X X X
Item
B X X X X X
C X X X After analyzing, you
might come up with the
conclusion to have step
5, 6 and 7 in one cell.
2. Similarity of processing steps
When required steps of the different products vary too much, then separate cells.
For example, item C does not look to be suitable for the cell.
Advanced Lean
Do you have the right items?
Time
Max. ~ 30%
Total Work Content (see also next section) of the
product going through the cell should not variance
more than 30%, otherwise take them apart.
A B
Available Time
TAKT time: It’s the heartbeat of the process
Required Output
(Customer Demand)
Advanced Lean
What are the Work Elements? (for making one piece)
Work element
‘smallest increment of work done by a person (not a system)
that could be moved to another person’
Advanced Lean
Process Study Form
m ents
ork ele
as w
ste s
s w a
b vi o u
a n yo
d e
o t i nclu
Do n
Advanced Lean
Paper Kaizen
First analyze the Total Work Content, and design improvement on paper …
Current Improved
K
Paper Kaizen
240 Approach of immediately leaving
Total Work Content for one item
in the cell are activities A-K. out wasteful steps. You eliminate
some waste on paper before
210
implementation.
J
I K
180
H
Time
A A
Advanced Lean
Operator Balance Chart
… then connect to Takt TIme.
210
Operator Balance Chart (OBC)
Takt Time
205 sec. Picture of distribution of work among
180
K operators in relation to Takt Time.
• Simple
150 • Visual
I • Quantative
120
H Takt Time • No guesswork
G 110 sec.
90 F F K Takt Time
82 sec.
60 E E E K
D D D H
I G
30 B B B
H F
I
0 A A G A
1 1 2 1 2 3 = Operator
Advanced Lean
Is your System suitable for flow?
Should you have one integrated system, or different small systems connected by a simple workflow tool?
Advanced Lean
Is your item ideally designed for flow?
Are your items optimal designed for creating continuous flow?
Advanced Lean
Cell Layout
How can the process be laid out so one person can make one
piece as efficiently as possible?
Advanced Lean
Office Cell Layout
… or Digital
A cell can also be designed digital. Think of setting operators
work in a flow by aligning systems.
Workflow IT can help to let differ systems work together in a flow.
Advanced Lean
How to use your operators efficiently?
Advanced Lean
How will you distribute the work?
E E E 30
D H D D
B G B B 15
F
A A A 0
Incoming 1 2 1 2
Forms Out
Advanced Lean
Implementation Stages
Process associate
4. Sustaining the Flow
involvement
Paper Kaizen & Initial Mock-up Debugging Sustaining
Process Design
½-2 days 2-4 weeks
Advanced Lean
Introduction to Pull Production
C T
A VI
P SI
EN O
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L E A N
ENTERPRISE
Advanced Lean
What Is a Pull System ?
A system in which each process takes what it needs from the preceding
process when it needs it and in the exact amount needed.
• Employs a variety of visual signaling devices and uses the concept of
Kanban
• Just-in-time focused
• Controls production system and limits inventory
• Simplifies or eliminates documentation
Advanced Lean
What Is a Push System ?
Advanced Lean
Differences Between Push & Pull
• Planning
• Work Authorization
Advanced Lean
Why Use Pull ?
Schedule :
Customer need :
Inventory :
SHORTAGE SHORTAGE
Advanced Lean
Why Use Pull ?
Conventional ‘Push’ system : WIP = ?
Breakdown
Breakdown
Advanced Lean
Pull Characteristics
• Standardized application
• Visibility
• Simplicity
• Standard lot sizes
• Discipline
• Versatility/Flexibility
Advanced Lean
How does Pull work ?
Legend
Supermarket
END CUSTOMER
Material
Information
2
1
1 Sequence / Timing
9
2nd LEVEL
SUPPLIER
10
3 4 5 9
2nd LEVEL
SUPPLIER
8 7 6 10
Advanced Lean
How does Pull work ?
Max>
Pull
Pull Replenish
Pull
Min>
Advanced Lean
Heijunka
Heijunka is the foundation of the Toyota Production system, and is the process of
leveling and sequencing an operation.
There are three main elements of Heijunka…
Just-in-Time
Jidoka
Heijunka
Advanced Lean
Kanban
A Kanban is a signal used by a downstream operation
to request a material replenishment
Kanban
Supplying
Supplying Using
Using
Process
Process Process
Process
Required
Part/ material
Cards Bins
Carts Labels
Kanbans are used to signal the supplying process that more material is
needed
Advanced Lean
Jidoka
Jidoka allows machines/processes to operate autonomously by shutting down
automatically if an abnormality occurs. This prevents defective products from passing to
the next process.
There are two main elements of Jidoka…
Just-in-Time
Jidoka
Abnormal
Heijunka
Advanced Lean
• Lean Overview
• Lean Methodology
• Lean Toolkit
• Lean Deployment
• Lean Glossary
• Lean Resources
Advanced Lean
Lean Deployment
Lean Deployment Roadmap
1. Set the strategy
2. Find a change agent (how about you?)
3. Get the knowledge
4. Seize or create a crisis to motivate change
5. Map your value streams, creating a future state plan
6. Eliminate waste by executing the plan
7. Expand the scope to other areas
Advanced Lean
Lean Deployment
Investment Required
Expense
5%
Technical
30%
Cultural
65%
Advanced Lean
Lean Deployment
Advanced Lean
Lean Deployment
Kaizen: Change for the better
• Continuous slow
Advanced Lean
Lean Deployment
Kaikaku
Vision
Kaizen = Evolutionary Change
ku
ka
Kaikaku = Revolutionary Change n
Kaize
ai
K
ku
ika
Ka
n
Kaize
Improvement
ku a
Kaik
zen
Ka i
n
Kaize
Time
Value
Value Flow Pull Perfection
Streams
PROCESS Lean
(Elimination of Waste)
Front Senior
Lines Mgmt.
FLOW Lean
(Flow and Pull Improvement)
Focus
Process Lean Flow Lean
• Lean for waste elimination & process • Focuses establishing lean workflow
efficiency Use of Technology for flow
• Empowered teams for speed of execution Wing to wing improvements
• Tap knowledge residing in grass root level Establish Pull With customer involvement
. Six Sigma for complex problems
•Simple Communication
Advanced Lean
Lean Deployment
Why some companies fail?
1. Too busy managing day-to-day – no time for continuous improvement and
organizational learning
Advanced Lean
Agenda
• Lean Overview
• Lean Methodology
• Lean Toolkit
• Lean Deployment
• Lean Resources
Advanced Lean
Lean Resources
For all references on Lean training material, Lean Initiatives, Genpact Project examples, visit the
Lean Community on the Genpact Support Central
http://gecishome.gecis.ge.com/portal/page?_pageid=33,872304&_dad=portal&_schema=PORTAL
r y
i to
os
e p
R
an
Le
Advanced Lean
Lean Rewards & Recognitions
Advanced Lean
Closing Words
Advanced Lean