Advanced Lean Module

Advanced Lean

LEAN: Delivering value to Customers with shortest turn around time
Advanced Lean

• 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 TOYOTA Toyota Production System Recap… Just-in-Time Jidoka • Single Piece Flow • Pull Production • TAKT Time Production People People People Heijunka • Level Loading • Sequencing • Stability • Autonomation • Built-In Quality • Stopping at Abnormalities Some Key Lean Concepts developed at Toyota Advanced Lean .

Recap… Lean Thinking is all about continuous waste elimination ! Imagine Office Processes with: • • • • • • Advanced Lean Higher Customer Satisfaction e )Offic Shorter Lead Time k(Bac ge Higher Flexibility aking c advanta M gi Higher Quality trate as Lower Costs Higher Employee Satisfaction .Lean Thinking A principle driven. tool based philosophy that focuses on eliminating waste so that all activities/steps add value from the customers perspective.

Results include:  Reduced cycle times (product development and production)  Increased quality  Reduced costs and inventory  Increased capacity potential  Improved customer service Recap…  High levels of worker involvement.Lean Explained What is Lean? A strategy. ownership and commitment  Improved financial returns Lean concepts apply across all processes and industries Advanced Lean . process and leadership approach for operating in a superior way. philosophy.

may lose customers! Advanced Lean .Lean Explained The conventional way: +Profit Recap… Price = cost Increase profit by Price Increase Price to sell Bigger profit Some profit Cost to produce But.

cost =Profit Recap… Increase profit by Cost Reduction Price to sell Some profit Cost to produce Bigger profit Advanced Lean .Lean Explained The new way: Price .

Lean Benefits Cycle Time Wait Time (non value add) Work Time (value add) Recap… Before After Productivity Same work completed in less time Cost/Chaos Cost Defects Lead time Inventory Space Waste! Customer satisfaction Profit Customer responsiveness Capacity Quality Cash flow On time delivery Cycle time Relentless Focus on Reducing non value adding activities Advanced Lean .

Lean Usage Lean vs. PQ. Kan Ban. Boundaryless & MultiGenerational • Standard Work & Target Sheets . TAKT Time • Communicative • Centered on Stable. Assumes Data is Good • Observation and Intuition Based Analysis . Repeatable Process • Automation Apply Any Tool from your Quality Tool Box Advanced Lean . . . PR. . Visual Management • Few Tools or Direction Lean • Value Stream Mapping . . . Six Sigma Methodology Strengths Recap… Define Measure Analyze Lean Six Sigma Improve Control Six Sigma • True VOC is Powerful • Confirms Data Quality • Data Driven Analysis • Few Tools to Create Change in Critical X’s • Many Tools for Driving Change • Mixed Model Plan. .

Six Sigma For Complex Processes !! Advanced Lean .Lean Usage When do I use Lean? Six Sigma Project Hybrid Recap… AWO Effort Effort Time Effort Time Time Average ~ 4 Months Average ~ 4 Months Average ~ 1½ Months Lean For Quick Fixes….

Boundary less / Open mindset Passion for improvement Intuition / Action Customer focus X GE Values Lean: Strengthens GE’s journey to Excellence Advanced Lean . Six Sigma? Lean Six Sigma Simple or Wing to wing Complex and Focused Identifies problems in the flow Recap… Breadth Depth Helps identify steps that don’t add value and provides tools to eliminate them Lean Lean Six Sigma X Improves the capability of steps that do add value Six Sigma/Lean Improving the capability can eliminate additional steps Lean Success Factors/ Impact Energizing Empowering Team work.Lean Usage Lean vs.

why do I need Lean? Principle Recap… New ways to think about problems New problem solving tools and concepts An improvement methodology focused on action Toolkit Process Solutions Simple Known Just Do It!! Ask an Expert!! Complex Lean!! Causes Unknown Six Sigma We Need Lean to be Leaner Quickly…Let us start it!! Advanced Lean .Lean Usage So.

Results • Reduction of waste • Learned to ‘see the flow’ • Couple of improvements Remaining Issues • No real continuous flow • Still significant amount of waste. other lean tools. etc. Challenge • More waste reduction • Real continuous flow • Flexible workforce • Less variance • Less waste Old situation Issues • Inventory • Waiting • Defects •… No flow in the value stream. Processes full of waste Advanced Lean .Where are we going… Advanced tools Tool • Creating Continuous Flow • Pull production Basic tools Tool • Value Stream Mapping.

Lean Toolkit Recap… Level 1 Level 2 Reduce Variability Control the Process • Value Stream Mapping • Standardized Work • Intro to Continuous Flow • Intro to Pull Production Tool Sophistication • 5S • MUDA • Mistake proofing • Intro to Value Stream Mapping • Visual Management Expose the Waste Time / Cultural Maturity Applying the right tools at the right stage Advanced Lean .

Just-in Time U-Shaped Cells Kaizen Events Reconfigure work areas Institute continuous improvement philosophy Benefits Realized Appropriate Tools and Techniques are to be used depending on the need Advanced Lean .Lean Tools Overview Actions Bring Organization & Cleanliness to work area Understand Value Implement pullbased flow Recap… A number of Lean Tools and Techniques are available 5S Framework Tools and Techniques Value Stream Mapping Kanban.

.  5S  7 Wastes  Mistake proofing  Visual Management Recap… Advanced Lean .Lean Tools Description Exposing the Waste ~ Recap….

S: STANDARDIZE (Adherence) Clearly define Tasks and Procedures 5.5S Recap… 5S – A Framework to create and maintain your workplace (Organization) 1. scrupulously Implementing the 5S is often the first step in Lean Transformation Advanced Lean . S: SHINE (Cleanliness) Cleaning and looking for ways to keep it clean 4. S: SORT 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: SUSTAIN/SYSTEMIZE (Self-Discipline) Stick to the rules.

Muda ~ 7 Wastes The Seven Deadly WastesExamples Layouts of office. etc. & Finished Goods Additional Space Requirements Clutter Unnecessary Movement Extra Handling “Moving Inventory” People Waiting Overproducti on Process Processing Defec ts Inventor y Product Transportati on At the end. factory. everything results in Cost!! Advanced Lean . Incorrect Motion Recap… MUDA – Lean is a way to continuously eliminate waste Lack of Proximity Of Machines Off-line Resources Watching Machines Work Long Set-ups and Lead Times Large Batches and Inventory Planning Full Utilization of Machines and Labor Producing More Goods than Marked Demand Poor Machine Maintenance Unnecessary Processing Steps Longer Lead Times Long Delays for Troubleshooting Costly Rework Dissatisfied Downstream Customers High Stocks of Raw Material. WIP.

application. it is even better to make it impossible to do it wrong the first time.Mistake Proofing Overview • A technique for eliminating errors • Making it impossible to make mistakes BEST Recap… Elimination > Eliminate the possibility of error Replacement > Substitute a more reliable process Facilitation > > Make work simpler to perform Detect the error at the defect source BETTER Detection Mitigation > Minimize the effect GOOD Use the highest level Use the highest level possible for the possible for the application. Advanced Lean . It is good to do it right the first time.

Recap… • 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 .Visual Management Overview Why Visual Management ….

• Lean Overview … Recap • Lean Methodology  Five Lean Principles • Lean Advanced Toolkit • Lean Deployment • Lean Resources Advanced Lean .

Five Lean Principles Lean Enterprise Raw Materials Tier 2 Suppliers Tier 1 Suppliers General Electric Customer LEAN OFFICE LEAN ENTERPRISE Lean Enterprise: Maximizing Value Wing to Wing Advanced Lean .

and career paths  Ask which activities are waste and which truly create value  Enhance value & eliminate waste Lean: Fundamentally Change how we do business 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) The Fundamental Insight  Focus on each product and its value stream rather than organizations. assets. process technologies.

services and information from end to end through the process 4 Implemen t Nothing is done by the upstream Pull process until the downstream customer signals the need The Tools get you there…The Principles keep you there Advanced Lean .Five Lean Principles Define value in from 1 the customers Specify perspective and express value in terms of a specific product 2 Value Map the Value Stream Map all of the steps… value added & nonvalue added…that bring a product of service to the customer The complete elimination of waste so all activities create value for the customer 5 Work to Perfectio n 3 Establish Flow The continuous movement of products.

as defined in each  Specify value from the standpoint of the end customer  Ask how your current products/services and processes disappoint your customer’s value expectation: case by the customer.Five Lean Principles 1. Waste:  Activities that add no value. Specify Value A capability provided to a customer at the right time at an appropriate price. need to find root causes and eliminate them  7 types of waste Incidental Work  price?  quality?  reliable delivery?  rapid response to changing needs?  fundamental definition of the product? •Incidental •Work Pure Waste •Pure Waste Value •Pure Waste •Value •Value Typical Operation: 1-10% Activities are Value Adding Advanced Lean . add cost and time  Symptoms.

there is a value stream. Map the Value Stream “Whenever there is a product or service for a customer. Learning To See)  Identify all of the steps currently required to move products from order to delivery  Challenge every step: Why is this necessary? Would the customer think the product is worth less if this step could be left out?  Many steps are only necessary because of the way firms are organized and previous decisions about assets and technologies Value stream All activities. The challenge lies in seeing it.” (Womack. Raw material to customer Concept to launch 3.Five Lean Principles 2. and to cash Mapping the VS – See the whole Orderimprove the system Advanced Lean . both value added and non-value added. required to bring a product (or provide a capability) from raw material (initialization) into the arm of the customer 3 Main Value Streams: 1. 2.

services and information through the various transactions from end to end in the process sequence Require that every step in the process be:   Capable – right every time (6 Sigma)  Available – always able to run (TPM)  Adequate – with capacity to avoid bottlenecks and over capitalization (right-sized tools)  Flow appears impractical and illogical because we have been trained to think in terms of:  departments. silos  batches. Establish FlowLine up all steps that truly create value in a rapid  Continuous movement of products. queues  efficiencies and backlogs Batch Processing – 1 minute per piece Continuous Flow – Make One Move One A Advanced Lean B Cycle Time= 30++ Min (weeks) C A B C Cycle Time= 12 Min Applying the right tools at the right stage .Five Lean Principles 3.

Five Lean Principles 4. let customers get exactly what’s wanted exactly when it’s wanted:  At the pull of the customer/next process  Using signals (kanbans) Okay One more please! supplier customer Pull: Customer Centric Advanced Lean . Implement PullNothing is done downstream until required upstream  A system of cascading production and delivery instructions in which nothing is done by the upstream supplier until the downstream customer signals the need  Through lead time compression & correct value specification.

 Continuous improvement leads to innovation Next Future State  Use root cause analysis to solve problems promptly and permanently.Five Lean Principles A 5. Work to Perfection 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.  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 • Standardized Work • Intro to Continuous Flow • Intro to Pull Production Tool Sophistication • 5S • MUDA • Mistake proofing • Intro to Value Stream Mapping • Visual Management Expose the Waste 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 PA EN G CT V IS IO N 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 .

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 Forms the Blueprint for a information flow and the material • it shows the linkage between theLean Implementation Plan flow Advanced Lean . • 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.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.e. etc. i. assembly. welding.

Drawing Challenge every step Future State Future State Drawing Drawing 3 Implementation Implementation • Develop actions and drive toward future Plan Plan state • Develop and map concepts for the future state as a management team After completion….look for other opportunities to improve Advanced Lean .Order to delivery Current State • Map the current state .Identify all the Current State Drawing actions that don’t create value. Concept Product Family to launch .Value Stream Mapping VSM Steps • Identify the Value Stream for every Product Family major product family/program.

2.000 19 Days Worth Ass’y WIP 210 Units $513. ASSY 6 10 Days 30 Min.300.000 3 Days Worth Create Supermarket $1. ID HA Batch 2 7 Days 42 Min. (98% of Time) Value Add 20 Hrs. CONF Too Much 2 Variation 5 Days 25 Min. 8 Days ASSY Batch 6 10 Days 30 Min.5 Days 42 Min. (2% of Time) 3 15 Min. 2% Value Added Time…98% Waste Clearly Identifies Opportunities to Drive Sustainable Change Template ~ Create your own Value Stream Map Create a Value Stream Identify AWO opportunities from the Value Stream map Advanced Lean .000 11 Days Worth Brds +RIP $3.700.700. 4 WEEK FORECAST 13 WEEK FORECAST Dash Value Stream Map – Initial State OPSI 13 WEEK FORECAST Forecast Prod’n Cont. SHIP 6 30 Min. Sales 13 WEEK FORECAST Daily Orders GEC Weekly Orders HLA MRP CRC Orders Daily Daily Orders GEC Weekly Orders Prod’n Cont. CONF 2 5 Days 25 Min. SHIP 6 30 Min. 2. TEST 4 10 Days 1020 Min. TEST Batch 4 10 Days 1020 Min. TEST Batch 2 3. Non-Value Add 1.000 3 Days Worth Too Much Inventory Test WIP+ FG $1. TEST 2 8 Days 24 Min. 13 WEEK FORECAST 4 WEEK FORECAST Future Dash – Lean Project Funnel OPSI Prod’n Cont.Value Stream Mapping Current Flow: Information Material Prod’n Cont. HLA MRP CRC Forecast Too Much Variation Orders Heijunka Daily Sales Suppliers Daily Schedule • Portable Unit • Monitors Patient Vitals • Produce ~4.020 Hrs.360 Units $425.000 11 Days Worth Brds + RIP $3.5 Days 24 Min.000 19 Days Worth Ass’y WIP 210 Units $513. (2% of Time) SMED 15 Min.000/Qtr • Over 30. Non-Value Add 1.360 Units $425. J IT J IT Heijunka.000 Too Much Worth 10 Days Inventory Test WIP+ FG Create Supermarket SMT Raw Bds 8 WKS HA 2 7 Days 3.000 10 Days Worth 3 Bd. Assy.020 Hrs. Assy. (98% of Time) Value Add 20 Hrs. Late Pt.000 Variations Customer Suppliers Too Much Variation Heijunka Too Much Variation Heijunka Daily Schedule Customer Irregular Create Supermarket Irregular 3 Bd. Too Much Inventory SMT Long Raw Set Ups Bds 3 8 WKS J IT J IT Heijunka.300.

Eliminate waste by executing the plan 6. Find a change agent (how about you?) 3. Expand the scope to other areas Don’t Wait!! – “Opportunities multiply as they are seized” Advanced Lean .Value Stream Deployment Roadmap 1. Get the knowledge 4. Do an Action Work Out Action Work Out 5. Set the strategy 2.

Trace Collection Process: VSM No Phones GECFA Collections GE Money Mainframe (Vision Plus) L L NL EXTERNAL AGENCY EXITS X 0-29 days past due accounts Mainframe Workable/Non Workable V+.CPAC. ICBS c IWP c DMS c App req FCS c c Sentricx c Hold 4 Hours + 4 Mins 10+5+5 Mins 3-9 DAYS 10 + 4 Mins 5 .11 DAYS L = Locate NL = No Locate C = Call made X Wait Time: up to 14 days Value Add: ~ 35 Min Wait Time Reduce TAT from 3-9Days 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 CT PA EN G V IS IO N L E A N ENTERPRISE Advanced Lean .

Standard Work
Why have Standard Work? Elimination Waste

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
• • Often poorly defined Examples: • Standardize Input • Hand-off can create huge waiting time. Reduce time by standardization

Normal vs. Abnormal When normal and abnormal work activities are undifferentiated, waste almost inevitably occurs. Standard Work provides an efficient framework in which to determine when an abnormality has occurred so that it can be addressed.

Flow effect
• • • • Provide clarity about activities Reduce process variance Makes process reliable Exposes more waste

Identify Problems

Advanced Lean


Provides the Basis for Kaizen

Abnorm al


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

Connection between activities Connection Activity Customer Advanced Lean .Levels of Standardization Two levels for standardization for every type of item A. Activity B.

On a detailed level tasks/decisions/etc… should be specified.Standard Activity Activity Customer Standard Activity have to make the activity direct and unambiguous. Work sequence 3. When designing a Standard Activity keep in mind the follow elements: 1. TAKT time 2. Standard work in process Advanced Lean .

How are we doing? 7 am 8 am 9 am 10 am 11 am noon (60”) (60”) (60”)(12”) Advanced Lean A B C D Person Orders . 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 TAKT time formula: Time 60” Takt Time Office Processes • Check any time if you’re on schedule: Daily 400 in-voices.Standard Work: Takt Time Element 1 Create Standard Work around Takt Time. It is 13:30. keeping in mind the changes in Takt Time. are we on schedule? Required Output (Customer or Forecasted Demand) It’s 8:30 am.

Strip Install/Wire Latch 10 Torch Braze Mech. Standard Work / Combination Sheet Use this Templat e New / Rev Organization Area Page 1 of Supervisor Standard Work Sheet New / Rev Organization Page Area 1 Date 2/6/02 Production Line Part Number Part Name Manual Auto AMX Operator 1 of 1 Date 2nd X-Ray Station 1 & 2 J.avg lot = 6 Turns # Lots of Standard Work-in-Process Total Manual & Travel TimeTakt/Rate Time Operator Man/Travel Time DPU's 100/Day Physical or digital design Standard Work Sheet and Standard Work/Combination Sheet defines the Work Sequence Advanced Lean . Clean Mark Hydro Test Outside Cell FPI X-Ray EDM 7 Jumper Wire to Filter 10 Weld End Finish Totals 40 30 Operation Time T/T Standard Work Scope of Operations From: To: Raw material Finished Goods Quality Check Safety Standard Precaution Work-in-Process 27 .Standard Work: Work Sequence Element 2 Standard Work • What has to be done? • In what sequence? • How much time can it take? Work Sequence The order in which an person performs a series of repetitive tasks. ‘01 Part Number All Parts Part Name Operator Standard Work Sheet Weld All Tubes Step No. Clean Mech. David Standard Work Combination Sheet 10 20 Shannon 80 Tubing CFM Cell Fern Bissonnette Weld Supervisor Production LineCell 6 Qtr. which is the order in which the part is processed. It should be differentiated from the processing sequence. Operation Name Time Sec ( ) Min ( X Hr ( ) ) Manual Auto Production Req'd Takt/Rate Time Travel 30 40 50 60 Travel Wait ~~~~~~~~ 70 74 90 Orbital Weld Flex End Finish End Finish 1 2 3 4 5 6 Check Motor Issue DHR Install Clips 3 2 5 6 4 3 2 5 4 6 4 6 Install Gen. Housing Install Term.

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. Advanced Lean . Standard WIP should be kept as low as possible.Standard Work: Standard WIP Element 3 Set a Standard WIP in your Cell. if applicable to your office process.

Make sure that to standardize the connect between activities. Advanced Lean Hand-offs (connection) are a big cause of waste in the office. This will reduce the possibility for variance. .Standard Connection Connection Customer The connection between two activities (hand-offs) is one of the biggest causes of waste in the office. Direct and unambiguous specifying: • …people involved • …form and quantity to be provided • …way requests are made by each customer • …expected time in which the requests will be met (!) •… It creates a clear supplier-customer relationship. which increases the quality standard in the office.

And through this awareness you are able to adjust to these changes quickly. By looking at the root causes of the abnormalities. Two solutions: (1) eliminate the abnormality. which increases your flexibility. and give the possibility to adjust. It is easy for a person to take over work from another person.Standardization and Flexibility Don’t “Manage” a Standard … Detect the Abnormality Standardization makes abnormalities soon appear. you understand what is going on. Advanced Lean . Standardization helps to create a flexible multi-disciplinary workforce. or if not possible (2) adjust the standard to the new situation. Standardization increases your awareness of changes.

Then use Standard Work to standardize all the activities in and between the processes. It will expose waste (by abnormalities) and also prevents waste (keep everybody focused on normal way of working). Mistake Proofing / Poke-Yoke Standard Work is the prerequisite for implementing Mistake Proofing. Creating Continuous Flow Standard Work helps to reduce variance allow the flow of value. Mistake Proofing has to prevent to have defects going further on the line.g. 5S. If no standard. Less variance improves the capability to create real continuous flow.). then defects Normal difficult to detect Abnormal Advanced Lean .Relation with other Lean Tools Value Stream Mapping First implement the improvements of the Future State (e. continuous flow. etc.

because it exposes waste by abnormalities. Visual management has the objective to make abnormalities visual. These abnormalities are then subject to Kaizen Events to improve the processes.Relation with other Lean Tools Don’t “Manage” a Standard … Detect the Abnormality Visual Management Standard Work is the prerequisite for good visual management. Advanced Lean Standard Not Here … . Look Here … Kaizen Standard Work provides a basis for improvement. so actions can be make right away. It sets the standards for the work.

Summary Standard Work  …prevents waste to occur. Standard Activity 2.  …exposes waste and is the basis for continuous improvement. Standard Connection Don’t “Manage” a Standard … Detect the Abnormality Advanced Lean . Two levels of Standardization 1.  …increases your flexibility.

Introduction to Single-PieceFlow (Continuous Flow) PA EN G CT V IS IO N L E A N ENTERPRISE Advanced Lean .

A B C A B C Cell An arrangement of people. through which parts are processed in a continuous flow.Single-Piece-Flow in a Cell Single-Piece-Flow Carrying out one-piece-at-a-time processing in order to eliminate stagnation of work (queue) in and between processing steps. and methods with the processing steps placed right next to each other (physically or digitally) in sequential order. items. systems. Physical Cell Incoming Forms Output Digital Cell Advanced Lean .

Batch Vs Single Piece Flow Batch Single Piece Flow From: The Toyota Production System Catches Defects too Late • How many more do you have? • Where are they in the process? • What is the root cause? Catches Defects Immediately • You only have one • You know where it occurred • Resolve the root cause immediately The Next Process is the Customer … Never Send Defects ! Advanced Lean .

but.Why Use Single Piece Flow ? CTQ Quality Risk WIP FIFO Lead time Productivity * Changeover time ** • • Batch Production       Single Piece Flow       * Single Piece Flow productivity can be improved by balancing processes versus Takt Time ** Changeover time impact can be reduced by SMED or reducing changeover frequency. in this case. by increasing finished goods inventory. Single piece flow is always better with respect to FIFO Advanced Lean .

Where to start? Creating Single-piece-flow 1st time Value Stream Mapping Process Level Process Level Single Facility Single Facility (door-to-door) (door-to-door) Multiple Multiple Service Facilities Service Facilities Prerequisites Across Companies Across Companies 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. Start within the area with the biggest potential of lead-time reduction. That are the process steps in the value stream that are closed to the customer. No Start with the pace-maker process. as well. Advanced Lean . the customer often has to wait for the whole lead time of the process. Therefore.

Item. and Lay-out Optimize System. 5. System. 3. and Improve Actual implementation of Continuous Flow in a Cell We are going to look at the cell with Eyes for Flow Advanced Lean .Creating Continuous Flow 1. Sustain.Roadmap . and Cell Lay-out for creating continuous flow. Work Distribution Distribute the Work among the People Going to reduce waste out of: • Steps • People activities • System activities • Item design • Lay-out Implement. 4. Actual Work Then analyze actual work to be done in the cell. Item. 2. Cell Content Start looking at what items you should have in the cell.

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 .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.

Do you have the right items? Think carefully about assigning right items to your cell. Flexibility Cell for multiple items + More flexible for changing demand + Pushes you to create short changeover time (waste reduction) Cells for one item Cells for multiple items A B A&B A&B Advanced Lean . Here are some guidelines: 1.

identify the product/service families: A group of products/service that go through the same or similar ‘downstream’ steps. To simplify. 6 and 7 in one cell. For example.Identify Items for cell Start with the product or service. then separate cells. 2. you might come up with the conclusion to have step 5. Process Steps & Equipment 1 2 3 4 5 6 7 Map together in one Value Stream Map. Item A B C X X X X X X X X X X X X X After analyzing. Similarity of processing steps When required steps of the different products vary too much. item C does not look to be suitable for the cell. that is the customer’s only interest in GE. Advanced Lean .

Variance of different product types Total Work Content (see also next section) of the product going through the cell should not variance more than 30%. Max. ~ 30% A B 4. Takt Time (production pace) Purpose: Match Customer Demand Pace with Production Pace How often should we finish an item to serve the customer on time? TAKT time: Available Time Required Output (Customer Demand) It’s the heartbeat of the process Advanced Lean . otherwise take them apart.Do you have the right items? Time 3.

you get the total work content of the cell. Calculate the actual work by using a Process Study Form Guidelines • Get REAL data. Compare to see the waste. By collecting all the work elements in the cell.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’ Each process consist of a series of work elements. • Seperate operator work time from system cycle time. otherwise you can include waste. Breaking work in elements helps you to expose and identify waste Advanced Lean . • Time each work element seperately. Once timed individual elements then time operator’s complete cycle from start to finish. Get it yourself. do not rely on standard time or data from the past. • Time an experienced operator who is fully qualified to perform the job.

Process Study Form Process Study Process Steps Process Observer Date/Time Operator Work Element Observed times Low est System Repeatable Cycle Time Notes Do clu o t in n d o any e b te w as s vi o u s work as ts men ele Full Process Study Template Use this Template Advanced Lean Microsoft Excel Worksheet .

E D B A Advanced Lean . You eliminate some waste on paper before implementation. and design improvement on paper … Current 240 210 Improved Paper Kaizen Total Work Content for one item in the cell are activities A-K. K 180 J I H G F First understand all the work elements that make the total work (Current)… Approach of immediately leaving out wasteful steps.Paper Kaizen First analyze the Total Work Content. K Time 150 120 I H G F Paper Kaizen • Elimination: C and J • Time reduction: A and F 90 60 30 E D C B A …then have a critical look on the work elements and design improvement on paper (Improved) to reduce wastes.

210 Takt Time 205 sec. • • • • Simple Visual Quantative No guesswork Takt Time 82 sec. F E D B A 1 K K H G F D B A 1 I 3 2 = Operator Advanced Lean . E I H G 2 180 150 I 120 90 60 30 0 H G F E D B A 1 Takt Time 110 sec. K Operator Balance Chart (OBC) Picture of distribution of work among operators in relation to Takt Time.Operator Balance Chart … then connect to Takt TIme.

Effective System Cycle Time < (Fastest Takt Time – 20-25%) • Fluctuation in demand • Equipment is often less flexible than people Also ask the follow questions about your System: Valuable? Capable? Available? Adequate? Flexible? .Does the System create no defects? .Is the System not a bottleneck for the flow? . you should make sure it is appropriate enough for handling the Flow.Is the System flexible to adjust for changes? • Is it working in batch or single piece? • Easy to replace (price)? • Easy to maintain? • Easy to use? • Is it optimal design to support continuous flow? Should you have one integrated system.Does the System add value? .Is your System suitable for flow? Is your system able to handle the Takt Time? If a System (or Machine) is part of Continuous Flow Cell. or different small systems connected by a simple workflow tool? Advanced Lean .Is the System always available when needed? .

at their fingertips? Ideally for a process • with high volume. low variety • with high frequency of use • with stable input For example • Pay-roll • Policy request processing • Customer Service Centers Advanced Lean . so it takes less time for the operator to process? • Are the items easy accessible.Is your item ideally designed for flow? Are your items optimal designed for creating continuous flow? • How is the item presented in an easy. simplified. proper way? • Are there any changes you can make on the item.

operator-based work steps close together to allow flexible work element distribution. • Minimize inventory accumulation between processes. • Design good ergonomics. • Remove (physical and digital) obstacles for the operator Make value creating activities easily accessible. • Keep manual. Advanced Lean .Cell Layout How can the process be laid out so one person can make one piece as efficiently as possible? • Avoid isolated islands of activities.

Workflow IT can help to let differ systems work together in a flow. Advanced Lean .Office Cell Layout Cellular environment is an area of continuous flow. Physical… • Multi-functional • Co-located • One piece flow • Balanced – waste removed • Cross trained team • Staffed within the ‘interval’ • Standard work Incoming Forms Out … or Digital A cell can also be designed digital. Think of setting operators work in a flow by aligning systems.

reduces buffer.3 Total Work Content (after paper Kaizen) Takt Time – buffer for variance = 3.2 operators Lean Option Option A Balance the line 45 Buffer for variance Takt Time 45 sec.How to use your operators efficiently? Number of operators: Example 134 45 . 30 15 0 1 2 3 4 1 2 3 4 Advanced Lean . 4 do other things Continuous Improving • More variance reduction. • Eliminate by reducing more waste. • Let Op. Option B Lean Option • Maximize operator work.

Specialize 2x Takt Time Do it all 75 60 45 30 H G F E H G F D B A 2 1 H G F E D B A 2 E D B A Incoming Forms Out 15 0 1 Advanced Lean . here two examples: How will you design that in your physical or digital layout. Takt Time 38 sec.How will you distribute the work? What is the optimal way of distribution the work? There are a lot of way to distribute the work among operators.

Mock-up 4. Debugging (!) Mock-up ½-2 days Debugging 2-4 weeks Sustaining Avoid making things permanent. because it is a real learning-by-doing implementation. Sustaining the Flow Process associate involvement Paper Kaizen & Initial Process Design 3. until stage 4.Implementation Stages Implementing the Flow consists of four stages: 1. Advanced Lean . Initial Process Design 2.

A small team should create the initial flow design by the steps presented in this training. Participants in this team: • Leadership • • • Quality IT (if important for design) Someone from the process team Process associates are involvement in the upcoming implementation stages. self-directed team process. Advanced Lean .Stage 1 – Initial Process Design The actual initial continuous flow design is not a bottom-up.

Advanced Lean .Stage 2 – Mock-Up The initial design represents theoretical ideas for creating continuous flow. Goal of the mock-up is to introduce process associates to the process design and to find improvement opportunities before the actual process is deployed. Show • Goals • Layout of new process • Operator Balance Chart • New standard way of working (steps and visual overview) Try to make improvements immediately during the mock-up as much as possible.

 Mark milestones that prove you’re making progress.  Do not underestimate the effect of transition on the process associates. It requires good change management.  Implement improvement ideas quickly.  Operator Balance Chart and the new standard way of working must be kept up to date.  Make sure that you can still meet customer demand during transition (temporary additional resources needed?)  Involvement of quality and IT for kaizen opportunities until it operates as designed. Advanced Lean . One by one the problems preventing the cell from meeting Takt Time should be identified and their causes eliminated.Stage 3 – Debugging In this stage the process begins operating and is improved to the point where it can process items as designed.  The cell’s success is everyone’s responsibility.  Near the end of debugging period the work elements should be carefully re-listed and re-timed. Track progress on a dashboard.

how many to process.?  Are the system. and supervisor know: Takt Time.Debugging Checklist  Is there real one-piece flow? Can the process associate “make one. why?  Do the team leader and supervisor understand their job responsibilities?  Does the information flow? Do the process associates. team leader. what to process. and cell layout right?  Does the cell use the minimum amount of equipment and inventory?  Can the cell change over between different end items in time?  Does the cell reduce lead time? Advanced Lean . item.. what problems are occuring. etc. how many items are done. move one”? Are the items go through the cell in a flow?  Do process associates perform the work as specified in the operator balance chart and the new standard way of working? If not.

Standard work. Things are either improving or slipping backward.Stage 4 – Sustaining In this stage you move from the debugging phase into daily operation. measurements and visual management should be put in place to control the continuous flow in the cell. the best way to maintain the continuous flow performance is to keep improving. Cells must start on time. It is rare to find a system that maintains a steady state. So. Advanced Lean .

Introduction to Pull Production CT PA EN G V IS IO N L E A N ENTERPRISE Advanced Lean .

• 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 Customer pulls the flow 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.

here I come!” • Products are produced only when scheduled • Assumes receiving work centers will be ready for the products when they arrive • Output continues without regard to actual downstream needs • Response is delayed and the system disrupted due to shortinterval changes Advanced Lean . based on a schedule. • “Ready or not.What Is a Push System ? A system in which products are pushed through production or distribution.

Differences Between Push & Pull • Planning • Push: Work is completed based on a planning system • Pull: Work is completed based on authorization from downstream users • Work Authorization • Push: Work is immediately sent to downstream user upon completion • Pull: Work is not forwarded to next operation until requested Advanced Lean .

For the same reason. Schedule : Customer need : Inventory : SHORTAGE SHORTAGE Pull ensures best inventory control with high customer satisfaction Advanced Lean . generates unneeded inventory (overproduction) because true customer needs never fit perfectly with schedule.Why Use Pull ? A conventional system. it can also generate shortages. based on a schedule.

Why Use Pull ? Conventional ‘Push’ system : PROCESS #1 PROCESS #2 WIP = ? PROCESS #3 Breakdown Yield=2/h RAW MATERIAL Yield=1/h WORK IN PROCESS Yield=2/h FINISHED GOODS Pull System : PROCESS #1 PROCESS #2 Standard WIP = 3 PROCESS #3 Breakdown Yield=2/h RAW MATERIAL Yield=1/h WORK IN PROCESS Yield=2/h FINISHED GOODS Pull improves work in process management Advanced Lean .

Pull Characteristics • Standardized application • Visibility • Simplicity • Standard lot sizes • Discipline • Versatility/Flexibility Advanced Lean .

How does Pull work ? Legend END CUSTOMER Supermarket Material 2 1 9 1 Information Sequence / Timing 2nd LEVEL SUPPLIER 10 1st LEVEL SUPPLIER 9 2nd LEVEL SUPPLIER 10 PROCESS #3 PROCESS #2 PROCESS #1 3 4 5 9 2nd LEVEL SUPPLIER 8 7 6 10 Advanced Lean .

Advanced Lean .How does Pull work ? Min/Max is the most often used methodology to manage supermarket/buffer inventory level. Max> Replenish Min> Pull Pull Pull High performance companies use Kanban to communicate needs to preceding process.

3. There are three main elements of Heijunka… 1.Heijunka Heijunka is the foundation of the Toyota Production system. Leveling: Overall leveling of a process to reduce variation in output Sequencing: Managing the order in which work is processed (Mixed Production) Stability or Standard Work: Reduce process variation Toyota Production System Just-in-Time Customer Demand Leveling Reduction in variation experienced by the customer Advanced Lean Heijunka Heijunka Jidoka . and is the process of leveling and sequencing an operation. 2.

Kanban A Kanban is a signal used by a downstream operation to request a material replenishment Kanban Supplying Supplying Process Process Required Part/ material q q Using Using Process Process Cards Carts q q Bins Labels Kanbans are used to signal the supplying process that more material is needed Advanced Lean .

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… 1. Autonomation: Automation with human intelligence – operate autonomously 2. Stop at Every Abnormality
Toyota Production System




Fix the process (problem) before moving on
Advanced Lean


• Lean Overview • Lean Methodology • Lean Toolkit • Lean Deployment • Lean Glossary • Lean Resources

Advanced Lean

Lean Deployment
Lean Deployment Roadmap
1. 2. 3. 4. 5. 6. 7. Set the strategy Find a change agent (how about you?) Get the knowledge Seize or create a crisis to motivate change Map your value streams, creating a future state plan Eliminate waste by executing the plan Expand the scope to other areas
Don’t Wait!! – “Opportunities multiply as they are seized”
Advanced Lean

Lean Deployment Investment Required Expense 5% Technical 30% Cultural 65% “The Soft Stuff is the Hard Stuff” Advanced Lean .

2. 11. 3. 6. 4. 10. Leadership commitment Ramp up with results Consistency of purpose Knowledge/Training Wide spread Communication Change management Team responsibility Metrics Reward and recognition Roadmap for Execution (Discipline) Balance between short term and long term Best practice sharing (Community) Value Stream Management “Don’t be afraid to give up the good for the great!” Advanced Lean . 9. 5. 12. 7. 8. 13.Lean Deployment Key factors for Success 1.

Lean Deployment Kaizen: Change for the better • Continuous incremental improvement • Continuous ≠ slow • Data driven: visual and quantitative • Bias for action • Does not cost money • Absolute intolerance for waste Kaizen = Action Work Out (AWO) at GE Advanced Lean .

Lean Deployment Kaikaku Vision Kaizen = Evolutionary Change K ak u Kaikaku = Revolutionary Change Improvement en K ai z Kaik a ku K ai z en Ka ika ku ai k Kai zen en K ai z Time Need Both Kaizen and Kaikaku!! Advanced Lean .

•Simple Communication Responsibilities clearly demarcated Advanced Lean . (Flow and Pull Improvement) Focus Flow Lean • Focuses establishing lean workflow Use of Technology for flow  Wing to wing improvements  Establish Pull With customer involvement  Six Sigma for complex problems Process Lean • Lean for waste elimination & process efficiency • Empowered teams for speed of execution • Tap knowledge residing in grass root level .Lean Deployment Value Value Streams Flow Pull Perfection PROCESS Lean (Elimination of Waste) Fron t Line s Senio r Mgmt FLOW Lean .

4. Important to be wary of the above factors Advanced Lean . Too busy managing day-to-day – no time for continuous improvement and organizational learning Belief that past strategies and approaches will continue to be effective in the future Management through control and efficiency Organizing and managing through departments Using people as operational labor. 6.Lean Deployment Why some companies fail? 1. not operational experts Let Lean Thinking be perceived as a downsizing exercise 2. 3. 5.

Agenda • Lean Overview • Lean Methodology • Lean Toolkit • Lean Deployment • Lean Resources Applying the right tools at the right stage Advanced Lean .

visit the Lean Community on the Genpact Support Central =33. Lean Initiatives. Genpact Project examples.gecis.872304&_dad=portal&_schema=PORTAL an Le Advanced Lean ry it o os ep R .ge.Lean Resources For all references on Lean training material.

Upload it onto the Lean Workflow All approved Team & Individual ideas win Cheers Advanced Lean ..Lean Rewards & Recognitions Got any Lean Improvements….

Closing Words Many unidentified problem areas exists within your processes Lean methodology helps exposing those problem areas ~ Creating opportunity for improvement Implementation is the key Advanced Lean .

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