Lean Management

Lean Management
Dr. Abdallah Abdallah, Ph.D, CSSMBB,

PMP
1
What do you expect to get out

of this training?
Training Objectives
At the end of this training you should be able to:
Understand the characteristics that do not add
value.
Initiating a system to eliminate waste.
Understand how to create value stream maps.
Understand how to use lean management tools.
Understand how to implement lean management
principles in manufacturing and administrative
areas.
Exercise 1:
Where are You on this scale?
1
Do not know what is Lean
Ive heard about Lean
Ive read about Lean
Ive attended some Lean training
Ive used some Lean tools
Ive lots of experience with Lean
I am a Lean expert
Module 1
Introduction:
System
Analysis
Performance Improvement Basics

1. Just like many other methodologies, lean aims at
achieving performance excellence.
2. Before working on lean you need to realize that no
matter what your current performance level, it can
be improved.
3. Those who work on performance improvements

need to have patience since all their efforts will be
attacked by colleagues, managers, accounting,
other departments, etc.
Performance Improvement Basics
4. The first step in any improvement effort is an

assessment of the current (as-is) situation.
5. To assess, you have to train your eyes to see
whats wrong, whats not in place, whats done in a
very complex manner, etc.
Exercise 2:
Look at the following

slides and take 10
seconds on each to
realize what the picture is
trying to say
Exercise 3:
To build on the previous

exercise lets see if you
can do the following
three exercises.
Module 2
Lean
Introduction
10
Creators of Lean
Taiichi Ohno
(1912 1990)
Shigeo Shingo
1909 1990
11
What is Lean Management?

It means doing MORE work with FEWER
resources.
Work is accomplished in less time, in a smaller
space, with fewer workers, and with less equipment,
and yet achieves higher quality levels in the final
product.
12
What is Lean Management? (contd)

It is a philosophy which shortens the time between
the customer order and the product shipment by
eliminating waste.
Business as Usual
Customer
Order
Waste
Product
Shipment
Time
Lean Manufacturing
Customer
Order
Waste
Product
Shipment
Time (Shorter)
13
What is Lean Management? (contd)

It is NOT:
o A collection of techniques or a methodology
o A reduced staffing or low inventories
It IS:
o A philosophy of manufacturing
o A totally different way of thinking
o A different value system
o Waste eliminating system
o A manufacturing system that emphasizes flow
14
Lean Bodies Are Better
15
Some Facts
Some of General Motors (GM) products include:
o Buick, Cadillac, Chevrolet, GMC, Opel, Vauxhall,
and Holden
Toyota
GM
Sales (2007)
9,366,000
9,370,000
Profit/car
+$1,870
-$4,000
Toyota has been making profit for almost 70

consecutive years, since 1938
Does not that make us wonder about the reason why
Toyota is so successful???
16
History
Richard Schonberger,
Edward Deming,
Japanese Manufacturing
Techniques
Out of the Crisis
1982
1982
Henry Ford
(Assembly Lines)
Eli Whitney
(Interchangeable
Parts)
1820
Taiichi Ohno
(Toyota Production System)
M. Porter,
Eiji Toyoda, Taiichi Ohno

(Toyota Production System)
1900
1935
Frank Gilbreth
(Process Charts)
(Motion Study)
Frederick Taylor
(Time Study)
(Work Standards)
Walter Shewhart
(Statistical
Process Control)
1945
1950
Value Chain
1985
1970
1980
Ishikawas
Fishbone Diagram
Edward Deming,
Joseph Juran
(TQM)
Shigeo Shingo
(Just In Time)
(Zero Defects)
(SMED)
1990
2000
Jones & Womack,
The Machine That

Changed The World
Lean Enterprise Institute
1989
Peter Drucker
The Practice of
Management
1954
17
History (contd)
How Toyota started:
o 1926, Automatic Looming Machines
o 1929, Patent was sold for 100,000 Pounds ()
o 1930, Toyota Motor Company was established
18
History (contd)
Toyota visited Ford in 1930s and again 1950s
Toyota noticed the following:
o Huge machines
o Mass production
o Large inventories
o Few models
o Very little improvements
since 1930s
19
History (contd)
Toyota wondered whether Fords production system
will work for Japan or not, since:
o The Japanese market is extremely small
o Cash flow is limited
o The Japanese customer is different
Result: Toyota Production System (TPS)
20
History (contd)
1980, Americans studied the Toyota Production
System (TPS)
1989, The Machine That Changed The World book
was published by J. Womack
Womack named TPS as Lean Production
21
Benefits of Lean Management
Reduces Operating Costs

Increases Productivity
Decreases Throughput Time
Increases Profitability
Reduces Customer Lead Time
Reduces Work in Process Inventory
Improves On-Time Delivery to Customers
Improves Quality Performance
Improves Safety
Improves Employee Morale
22
Mass vs. Lean Production

Mass Production
Lean Production
Inventory Buffers
Minimum Waste
Just-In-Case Deliveries
Just-In-Time Deliveries
Just-In-Case Inventory
Minimum Inventory
Acceptable Quality Level
Perfect First-Time Quality
Taylorism (Workers told what

to do)
Worker Teams
Maximum Efficiency
Worker Involvement
Inflexible Production Systems
Flexible Production Systems
If it isn't broke, dont fix it!
Continuous Improvement
23
Module 3
Lean
Principles
24
From Muda To Shinrai
Shinrai trust
Kachi value
Muda waste
25
The 3 Ms of Lean Management

Lean Management not only focuses on eliminating
Muda, but also Mura and Muri.
Muda (Waste): Any activity that adds no value to the
product from the customers point of view.
Mura (Unevenness): Any variation leading to
unbalanced situations.
Mura (Overburden): Any activity asking unreasonable
stress or effort from personnel, material, or
equipment.
26
The 3 Ms of Lean Management (contd)

In most cases, you will not see the 3 Ms separately.
When a process is not balanced (Mura), this will lead
to overburdening equipment, facilities and people
(Muri) which will cause all kinds of non-value adding
activities, thus leading to (Muda).
To eliminate (Mura) and (Muri) larger parts of the
system need to be looked upon, not only a process or
process step or operation, but at an entire Value
Stream.
27
The 3 Ms of Lean Management (contd)
28
Classification of Activities
in Lean Management
All activities in an organization can be classified in
three categories:
1. Actual Work: Value Added (VA) Activity.
2. Auxiliary Work: Non-Value Added (NVA I)
Activity but Necessary.
3. Pure Waste: Non-Value Added (NVA II) Activity.
29
Classification of Activities
in Lean Management (contd)
It is not unusual to observe that approx. 95% of all
activities in an organization are non-value added.
95% NonValue Added
5% Value
Added
30
Identifying Non-Value Added

Activities
Ask:
o Is this something customer is willing to pay for?
o Does this step change form, fit, or function?
o Does it convert input to output?
If not, then it is non-value added:

o Some non-value added activities may be
necessary until process improvement is achieved
(Ex: inspection, approvals)
31
Remember
VA activities: Enhance, Increase, Improve
NVA activities: Eliminate, Minimize, Combine
32
The Seven Deadly Wastes

Having more material or
information than you need
Processing more than necessary

to produce the desired output
Creating too much material

or information
Moving people
to access or
process
material or
information
Waiting for material or
information, or material
or information waiting to
be processed
Errors or mistakes causing
the effort to be redone to
correct the problem
Moving material or
information
33
Definitions of Waste
1.
Defects and Errors requiring rework.
2.
Work with no immediate customer, either internal or

external, resulting in work in progress (WIP) or
finished goods (FG) inventory.
3.
Unnecessary process steps.
4.
Unnecessary movement of personnel or materials.
5.
Waiting by employees as unfinished work in an

upstream process is completed.
6.
Design of product or processes that do not meet

customers needs.
34
Why Inventory is Dangerous?

Inventory: Money spent on partial work that
generates no income until it is complete.
Inventories hide problems:
o Unpredictable or low process yields
o Equipment failure
o Uneven production levels
New orders from customers cannot be started

until WIP is completed.
35
Why Inventory is Dangerous? (contd)
36
Lean Management Principles

Specify Value
Identify the Value Stream
Make value creating steps Flow
Let the customer Pull product
Strive towards Perfection
37
Lean Management Principles (contd)

Specify Value
o Any process that the customer would be prepared
to pay for that adds value to the product.
The customer defines the value of product in a lean
supply chain.
Value-adding activities transform the product closer to
what the customer actually wants.
An activity that does not add value is considered to be
waste.
38

o The value stream is the sequence of processes
from raw material to the customer that create
value.
o The value stream can include the complete supply
chain.
o Value stream mapping (VSM) is an integral tool of
Lean Management.
39

Make value creating steps Flow
o Using one piece flow by linking of all the activities and
processes into the most efficient combinations to maximize
value-added content while minimizing waste.
o The waiting time of work in progress between processes is
eliminated, hence adding value more quickly.
TRADITIONAL
CONTINUOUS FLOW
40

Let the customer Pull product
o Pull = response to the customers rate of demand
i.e. the actual customer demand that drives the
supply chain.
o Based on a supply chain view from downstream
to upstream activities where nothing is produced
by the upstream supplier until the downstream
customer signals a need.
41

Strive towards Perfection
o The journey of continuous improvement.
o Producing exactly what and when the customer
wants, in the most economic way without
damaging the quality levels.
o Perfection is an aspiration, anything and
everything is able to be improved.
42
Minimizing Waste By Using

Process Charts
Process Charts - An organized way to
document all the activities performed by a
person or group
Activities are typically organized into five
categories:
o
o
o
o
o
Operation,
Transportation,
Inspection,
Delay,
Storage,
43
Process Charts
Step
No.
Time
(min)
Distance
(ft)
0.50
15.0
10.00
0.75
3.00
0.75
1.00
1.00
4.00
5.00
10
2.00
11
3.00
12
2.00
13
3.00
14
2.00
15
1.00
16
4.00
17
2.00
18
4.00
19
1.00
Enter emergency room, approach patient window

Sit down and fill out patient history
Nurse escorts patient to ER triage room
X
40.0
X
40.0
Nurse inspects injury
Return to waiting room

X
60.0
Nurse takes patient to radiology
Technician x-rays patient

X
Return to bed in ER
X
X
60.0
X
Return to emergency entrance area
Check out
X
X
20.0
Wait for doctor to return

Doctor provides diagnosis and advice
180.0
Wait for doctor

Doctor inspects injury and questions patient
200.0
Wait for available bed

Go to ER bed
X
200.0
Step Description
Walk to pharmacy
Pick up prescription
Leave the building
44
Process Charts
Step
No.
Time
(min)
Distance
(ft)
0.50
15.0
10.00
0.75
3.00
0.75
1.00
1.00
4.00
5.00
Store
10
2.00
11
3.00
12
2.00
13
3.00
14
2.00
15
1.00
16
4.00
17
2.00
18
4.00
19
1.00
Activity
Operation
X
X
40.0
Transport
Inspect
X
60.0
Delay
X
200.0
Wait for doctor to return

Doctor provides diagnosis and advice
X
X
Return to emergency entrance area

Check out
X
X
Walk to pharmacy
Pick up prescription
X
20.0
Nurse inspects injury

9
11.00
815
Return to waiting room

8.00
available2bed
Wait for
Go to ER bed
3
8.00
Wait for doctor

and questions
inspects injury
Doctor
patient
5 to ER triage
23.00room
Nurse escorts patient
Return to bed in ER
180.0
Distance
(ft)
Technician x-rays patient
60.0
Time
(min)
Nurse takes patient to radiology
200.0
Number
of Steps
Enter emergency room, approach patient window

Sit down and fill out patient history
40.0
Summary
Step Description
Leave the building
45
Process Charts
The annual cost of an entire process can be
estimated
It is the product of:
1) Time in hours to perform the process each time
2) Variable costs per hour
3) Number of times the process is performed each
year
Annual
labor cost
Time to perform
the process in hours
Variable costs Number of times process

per hour
performed each year
46
Process Charts
If the average time to serve a customer is 4
hours
The variable cost is $25 per hour
And 40 customers are served per year
The total labor cost is:
4 hr/customer $25/hr 40 customers/yr = $4,000
47
Exercise 4:
An automobile service is having
difficulty providing oil changes in the 29
minutes or less mentioned in its
advertising. You are to analyze the
process of changing automobile engine
oil. The subject of the study is the
service mechanic. The process begins
when the mechanic directs the
customers arrival and ends when the
customer pays for the services.
The times add up to 28 minutes, which does not
allow much room for error if the 29-minute guarantee
is to be met and the mechanic travels a total of 420
feet.
48
Step
No.
Time
(min)
Distance
(ft)
0.80
50.0
1.80
2.30
0.80
0.60
0.70
0.90
1.90
0.40
10
0.60
11
4.20
12
0.70
13
2.70
14
1.30
15
0.50
16
1.00
17
3.00
18
0.70
19
0.30
20
0.50
21
2.30
Direct customer into service bay
Record name and desired

service
Summary
X
0.30
Open hood, verify engine type, inspect hoses, check fluids

Number
Time
Distance
ActivityWalk to customer in waiting area
of Steps
(min)
(ft)
X
X
Recommend additional services
X
X
X
50.0
X
X
40.0
7
16.50
8
5.50
Transport
Walk to storeroom
Look up filter number(s)

4
5.00
Inspect
Check filter number(s)

0.70
Delay Carry filter(s)
to service1pit
Perform under-car services
1
0.30
Store
Climb from pit, walk to automobile

Operation
X
70.0
Wait for customer decision
Fill engine with oil, start engine

X
40.0
Inspect for leaks
Walk to pit
X
Inspect for leaks
X
80.0
Clean and organize work area

X
Return to auto, drive from bay

X
60.0
X
X
Step Description
Park the car

Walk to customer waiting area
Total charges, receive payment
49
420
Exercise 5:
What improvement can you make in
the process shown in previous
exercise?
a. Move Step 17 to Step 21. Customers
should not have to wait while the
mechanic cleans the work area.
b. Store small inventories of frequently used
filters in the pit. Steps 7 and 10 involve
travel to the storeroom.
c. Use two mechanics. Steps 10, 12, 15, and
17 involve running up and down the steps
to the pit. Much of this travel could be
eliminated.
50
Redesigning the Process

Generating Ideas: Questioning and Brainstorming
Ideas can be uncovered by asking six questions:
1.
2.
3.
4.
5.
6.
What is being done?

When is it being done?
Who is doing it?
Where is it being done?
How is it being done?
How well does it do on the various metrics of
importance?
51
Lean Management Tools

Continuous
Improvement
Kanban
Flow
Leveling
Standardized Work
5S
Visual
Pull
Poka Yoke
SMED
Change Management
TPM
VSM
52
Lean Management House

Goal
Customer Focus:
Highest Quality, Lowest Cost, Shortest Lead Time
by continually eliminating Muda
Just-In-Time
Jidoka
Involvement:
Flexible, motivated team members

continually seeking a better way
Start
Here
Standardization
Stability
53
Stability
Improvement is IMPOSSIBLE without stability in the
4 Ms:
o
o
o
o
Man/ woman
Machine
Material
Method
Stability starts with 5S system and visual

management.
5S supports standardized work and total productive
maintenance (TPM), which are the key to method
and machine stability, respectively.
54
5S & Visual Management

5S is a methodology for creating and maintaining an
organized, clean, and safe high-performance work
environment.
Visual Management is a visual system that provides
immediate, visual information which enables people
to make correct decisions and manage their work and
activities quickly and easily.
5S and Visual Management make abnormalities
obvious.
55
Why Do We Need 5S?
56
Looks
Familiar
57
HOW DO THEY GET ANYTHING DONE?
58
The Good, Bad and the Ugly

First the Bad and the Ugly - Life Without 5S
59
Life with 5S
60
5S & Visual Management (contd)

How would you describe your current workplace
situation?
Items to consider:
o Openness of work area
o Color coordination
o Straight lines (desks, benches, equipment, walls, power
drops)
o Product displays
o Performance metrics
o Condition of walls, floors, equipment
o Visual controls
61

What is your impression when you look below?
62

And what is your impression when you look below
now?
63

Poor workplace organization means WASTE!
o Unneeded inventory incurs extra inventory-related expenses
and obsolescence due to design changes, limited shelf life,
etc.
o Extra manpower is needed to manage the growing inventory
o Extra time spent looking for equipment, parts, components,
etc.
o Quality defects result from unneeded in-process inventory
and machine breakdowns
o Unneeded equipment poses a daily obstacle to production
activities
o The presence of unneeded items makes designing
factory/office layouts more difficult
64
5S
Key Characteristics in a 5S Environment:
o
o
o
o
An easily understandable layout

An open view
A clean atmosphere
Active management
65
5S (contd)
Major Benefits:
o
o
o
o
o
o
o
o
o
Improves safety / Reduces accidents

Reduces downtime
Enhances operational control of processes
Creates a healthier corporate climate
Improves product quality
Improves efficiency and productivity
Improves delivery times and assists in reducing costs
Creates a positive work environment
Improves customer perceptions
66
Exercise 6:
Lets do 5S in our world

of numbers
67
5S (contd)
The 5Ss designate:
o Sort - Eliminate what is not needed
o Straighten - A place for everything and everything in its
place
o Shine - Cleaning and looking for ways to keep it clean
o Standardize - Maintain and monitor the first 3 Ss
o Sustain - Stick to the rules
68
5S (contd)
RED TAG STRATEGY
DIVIDE ITEMS INTO

TWO CATEGORIES:
RED TAG
Category
1. Raw material
2. In-process stock
3. Semi-finished goods
4. Finished goods
5. Equipment
6. Dies and jigs

7. Tools and supplies
8. Measuring devices
9. Documents
10. Other
Item name
and number
Quantity
Reason
Units
$ Value
1. Not needed
6. Other
2. Defective
3. Not needed soon
4. Scrap material
5. Use unknown
Disposal by:
Disposal method:
Department/Business Unit/Product Center
1. Discard
Disposal
2. Return
complete
3. Move to red-tag storage site
(signature
4. Move to separate storage site

5. Other
Posting date:
Disposal date:
ATTACH TO ALL
UNNECESSARY ITEMS
CATEGORIZE
NECESSARY ITEMS:
NECESSARY
SORT
UNNECESSARY
DISCARD
UNNECESSARY
ITEMS
* RARELY USED
* OCCASIONALLY USED
* FREQUENTLY USED
69
5S (contd)
SORT
Check Item
Any unused / unneeded

items
Items almost never

used
Action
Discard, throw away (Red Tag and Segregate)
Items for which no

immediate use is
planned, but which must
be stored on the chance
they will be needed later
(Yellow Tag) Evaluate over time
Items used frequently
Keep in work area (Green Tag)

Use white squares to mark location, or store on tool
board or another centralized storage unit
70
5S (contd)
RED TAG
Category
1. Raw material
2. In-process stock
3. Semi-finished goods
4. Finished goods
5. Equipment
6. Dies and jigs

7. Tools and supplies
8. Measuring devices
9. Documents
10. Other
Item name
and number
Quantity
Reason
Disposal by:
Disposal method:
Posting date:
Units
$ Value
1. Not needed
6. Other
2. Defective
3. Not needed soon
4. Scrap material
5. Use unknown
Department/Business Unit/Product Center
1. Discard
2. Return
3. Move to red-tag storage site
4. Move to separate storage site
5. Other
Disposal
complete
(signature )
Disposal date:
71
5S (contd)
Before Sort...
After Sort...
72
IDENTIFICATION
LINES
5S (contd)
DETERMINE LOCATION
FOR NEEDED ITEMS
CUTTER
INSERTS
124GF
STRAIGHTEN
POINT OF
USE STORAGE
2HJF
12HJF
12HJF
12HJF 12HJF
12HJF 12HJF
12HJF
12HJF
12HJF
12HJF
12HJF
12HJF
VISUAL LOCATIONS
PW2000 FIXTURES
2A4397
3A9674
2B4659
13
73
5S (contd)
Straighten
Check Item
Action
Tool Board
Tools must be replaced when not in use
All moveable objects

(equipment, machines,
tables, material)
Must have markings for proper location

Show workplace organization
Machines, equipment
Visual Aids / Visual

Display
Must have all parts in place (safety)

Must have all materials (RM, WIP, FG) located and
necessary information in place, updated
Must be in place and updated
Open display of all action items and processes
under review or performance requirements
74
5S (contd)
Straighten: Tool Storage
75
5S (contd)
Straighten: Material Storage
76
5S (contd)
Straighten: Maintenance Supplies
77
5S (contd)
Straighten: Common Tooling Storage
78
5S (contd)
Straighten: Cleaning Supplies
79
5S Example Sort and Straighten
80
5S (contd)
BUILD PRIDE IN
WORK AREAS
ELIMINATE DIRT
SHINE
(Cleanliness)
SWEEP
BUILD VALUE
IN
EQUIPMENT
CLEANING AS A FORM
OF INSPECTION
CLEAN
81
5S (contd)
Shine
Check Item
Action
Immediate work area
Sweep, clean, dust zones or (machine, equipment,

racks) work areas during down time or idle time,
then record on 5S Audit Sheet
Shared areas
Sweep, clean, dust in shared work zones or work

areas during down time or idle time
Outside areas / grounds
Sweep, rake, clean outside areas and grounds as

necessary
Paint, coatings on
buildings, equipment /
machinery and floors
Schedule as needed, complete during down time or

non-production time
82
5S (contd)
Shine: Covers Prevent Dust
83
5S (contd)
Shine: Clean Walls, Floors, Ceilings
84
5S Examples - Shine
85
5S (contd)
PREVENTIVE:
SORTING
STRAIGHTENING
CLEANLINESS
ASSIGN 3S
RESPONSIBILITIES
NAME
Su
Ken
Sonya
Paul
Ross
Mell
Cathy
Jesse
Roger
Ken D.
Douglas
ASK WHY
STANDARDIZE
INTEGRATE 3S DUTIES
INTO REGULAR WORK DUTIES
CHECK ON 3S
MAINTENANCE LEVEL
5 Minute 5S
5 Point Checklist
1.
xxxxxxxxxx xxxxxxxxxxxxxx xxxxcx lsdfj sdlk dkdie ldslj sdlj f

lsdflj sldkj f
2
3.
4.
5.
x x xxxxxxxxxxxxxxxxx xxxx
xxx xx xxxx x x xxxx x xxxxxlsdf lsdkjei lsdkj sdlkj sdl ldf
xx xxxxxx x xxxx x xxxxxxxsdlfkj sdflkj sflkjsdflkj flk
xxxxx xxx x x xxx xxxx xxxxxsdf,j sdlfjk flsdf ljsd
2
3
2
1
4
2.4
3
3
2
3
4
3.0
7:30 - 7:35
1S organize
2S orderliness
3S cleanliness
4S standardize
5S discipline
xxxxxxxxxxxxx
xxx x x xxx x
xx x xx
x xxx x x xxxxx
xxxx x x xxxx x
xxxxxxxxxx
xxxxxxxxxx
xxxxxxx
86
5S (contd)
5S Guidelines
5S Review Schedule
Standardize
Check Item
Consistent with the

entire system
Action
Visual aids or visual

control systems
Visual Workplace
Follow 5S Audit Sheet and all other visual controls

Perform regular, scheduled audits
Submit improvement suggestions
Stick to the guidelines
Produce signs, charts, graphs, paint equipment,
color coding systems
Implement standard method for cleaning and
maintenance
Create an environment in which anyone can know
in five minutes or less the who, what, when, how
and why of any work area: Without talking to
anyone, without opening a file drawer, without
opening a book or without turning on a computer
87
5S (contd)
5S Guidelines
5S Review Schedule
Standardize (contd)
Check Item
Leaders activity
Action
Make 5S part of normal work activity

Provide resources
Reward and recognize good work
Allow time for 5S activity (monthly, weekly, daily)
88
5S (contd)
Standardize Daily Clean Up Plan
NAME
Sun Mon Tue Wed Thu
Fri Sat
Ahmad
Moh'd
Basel
Ali
Abdallah
Anas
Tareq
Malek
Haitham
Ayman
89
5S (contd)
Standardize Five Point (Sorting) Check
Description
Points
Needed and unneeded items are mixed together at the workplace.
It is possible (but not easy) to distinguish needed/ unneeded items.
Anyone can easily distinguish needed/ unneeded items.
All unneeded items are stored away from the workplace.
Completely unneeded items have been dispose of.
90
5S (contd)
Standardize Five Point (Straightening) Check
Description
Points
It is impossible to tell what goes where and in what amount.
It is possible (but not easy) to tell what goes where and in what
amount.
There are location and item indicators for all tools and gages, as
well as supplies and material.
Various techniques (i.e. color coding, outlining, easy replacement

methods) are used to facilitate replacing things properly.
Tools and gages are unified and, when possible, eliminated.

Specific indicators show what supplies and materials go where and
in what amount.
91
5S (contd)
Standardize Five Point (Cleanliness) Check
Description
Points
The workplace is left dirty.
The workplace is cleaned once in a while.
The workplace is cleaned daily.
Cleanliness has been combined with inspection.
Cleanliness (dirt-prevention) techniques have been implemented.
92
5S (contd)
Standardize 5S Rating Trend Chart
93
MANAGERS COMMITTED
TO 5S
5S (contd)
PROPER
TRAINING
5S
asdfsdfs
sdf
sdf
dsfsdfsdfsfdsdfsdf
SUSTAIN
CORRECT PROCEDURES
BECOME A HABIT
BUY-IN FROM
ALL WORKERS
94
5S (contd)
Sustain
Check Item
Associate activity
Action
Maintain self-discipline
Complete daily/weekly checklists
Practice until it is a way of life
Continue to improve
95
5S (contd)
Sustain Daily Activities
GRINDER / POLISHER
DAILY PREVENTIVE MAINTENANCE
Equipment No.: __________________
Maintained by: ___________________
Power Head
Post
Chuck
Splash
Ring
Polishing Wheel
Control Panel
Body
Month: _________________
Day
PROCEDURE
10
11
12
13
14
15
16
17
18
19
20
21 22
23
24
25
Remove dust from air vents/holes.

Wipe Power Head
Check & clean Chuck
Clean Post
Clean Splash Ring
Wash Polishing Wheel
Wipe Body
Wipe Control Panel
96
26
27
28
29
30
31
Sustain 5S Checklist for Manufacturing

Please check box daily with y (yes) for completed or n (no) for not completed.
Daily
1. Sweep area.
2. Remove trash.
3. Restock for next shift.

4. Clean excess material
off of press.
5. Clear debris from aisle
way.
6. All fire extinguishers,
electrical panels and exits
are clear.
Please return filled out form to area Lean Pilot.
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
3
1
2
3
1
2
3
1
2
3
1
2
3
1
2
3
1
2
Weekly
3
1. Clean lights.
1
2
3
2. Mop entire work area.
1
2
3. Clean any soiled area on 3
press and auxiliary
1
equipment.
2
3
4. Restock cleaning
1
supplies.
2
Monthly tasks to be com pleted on the 15th of m onth or next applicable day.
Monthly
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
1. Repair any damaged floor tape.

2. Complete 5-S Audit.
1st Week
Supervisor or Champion Initials

Comments:
2nd Week
3rd Week
4th Week
Dec
M o nt hly S c he dule
3rd-Jan,Apr,Jul,Oct. 1stFeb,May,Aug,Nov. 2ndMar,Jun,Sep,Dec.
Sustain 5S Checklist for Tool Room

Please check box daily with y (yes) for completed or n (no) for not completed.
Daily
Please return filled out form to area Lean Pilot.
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
1. Sweep area.
2. Remove trash.
3. Mop any soiled areas.
4. Clear aisle ways of any debris.
5.
Fire extinguishers, electrical panels, and

emergency exits are clear.
Weekly
1. Clean lights.
2. Mop entire work area.
3.
Clean any soiled area on auxiliary

equipment
4. Restock cleaning supplies.
Monthly tasks to be completed on the 15th of month or next applicable day.

Monthly
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
1. Repair any damaged floor tape.

2. COMPLETE 5S AUDIT
COMMENTS
Area Champion Signature:______________________________
Sustain TPM Checklist
5S (contd)
Sustain Periodic Reviews
100
5S (contd)
Use 5S Audit Form to continuously assess your current
situation in workplace organization.
Are you in a third-rate workplace, where Associates leave trash
and no one stops to pick it up.
Are you in a second-rate workplace, where Associates leave
trash but others pick it up.
OR are you in a first-rate workplace, where no one leaves trash

but Associates would pick it up if they saw it.
This is World Class!
101
5S Example
102
103
104
105
106
107
5S Example
Before 5S
After 5S - Cleaned,
organized and drawers
labeled (less time and
frustration hunting)
108
After 5S: Auto Shop
109
After 5 S: Nokia
110
Visual Management
Visual Management creates an environment in which anyone
can walk into a workplace and visually know the current
situation:
o Visually understand:
workplace organization
the work process
when there is an
abnormality
if they are ahead, behind
or on schedule
o Without opening a book or

without turning on a
computer
o Without opening a file
drawer
o Without talking to anyone

111
Visual Management (contd)

Example: Two Workplaces, Two Ways of Communicating
HURRY
UP!
P/N 4370168
Due 4/27 Completed
21
HIDDEN WORKPLACE
13
VISUAL WORKPLACE
112

Prerequisites
o 5S
o Commitment
Management must be wiling to share information
Everyone must be willing to utilize information
Dont implement without the

discipline to sustain!
113

Objectives
o
o
o
o
Convey information
Provide immediate feedback
Quickly expose abnormalities in a process
Quickly convey progress or lack of progress
114

Visual Management has two components:
Visual Display
Visual Control
o Displays history
o Provides current, up to date

information
o Gives people information

management wants them to know
o Gives people information they need

to know to be successful
o Displays status
o Displays abnormalities to anyone

clearly
o Drives maintaining the status quo
o Drives improvement
o Can be interesting to look at
o Can alert, prevent, and provide failsafe processes
115

Types of Visual Management:
o
o
o
o
o
o
o
o
o
o
Control Boards
Gauges
Andon (Alarms/ Lights/ Sounds)
Floor markings
Signboards
Color coding
Outlining
Shadow boards (tool cutouts)
Limit lines (min/max height or width)
Arrows
116

Examples in the outside world
We are surrounded by Visual

Management, but we rarely bring it to
work with us
117

Examples in the workplace
o Improved Safety
Clear visible guidelines ensure safety is paramount in
everybody's minds in the workplace. Safety in the
workplace improves welfare of employees and increases
morale.
Meeting point
118

o Reduced search time
By visibly foot-printing everything required to carry out an
activity, reduces search time, and therefore increasing
value adding time
119

o Abnormalities visible at glance
Andon Board
Workstations on plan
Workstations with issues
Workstations stopping the line
Andon Systems
To enable to see the status of equipment
and teams at a glance and spot problems
immediately.
This timely status allows quick response and
therefore reduced down time.
120

o The power of Color
121

o Information and control boards
122

o Office Visual Organization & Display
123

World Class Visual Management
CTX
Skills Matrix
Measurements
Name of the Area
Attendance
chart and
vacation plan
Mission
Status of
suggestions
Awards
received
Names and
pictures of people
Focus item
of the
month
Documents,
reference
books
Customer-supplier
relationship chart
Samples of defects
Plans of action
Customer survey results
Improvement
of the month
Quality
Clock
Safety clock
Status of
team projects
124

Summary - Visual Management:
o Effects QCDP (Quality, Cost, Delivery, Productivity) on daily
basis
o Creates a safer more productive work environment
o Improves morale
o Relatively low cost to implement
o Encourages pride in workplace
o Simple logical way to improve workplace performance
o Is a platform for further improvement
125

Procedure for Effective Implementation:
o Videotape or photograph area prior to 5S workshop.
o Perform a 5S evaluation.
o Sort through equipment, tools, material, files, etc. Apply red
tags to items that are no longer needed.
o Dispose of red tagged items.
o Straighten remaining items.
o Clean equipment, tools, and area.
o Apply visual controls.
o Videotape or photograph area after 5S workshop.
o Perform a 5S evaluation. Compare and post scores.
126
Total Productive Maintenance

Total Productive Maintenance (TPM) is a system
that maximizes equipment effectiveness and
maintains product flow.
TPM is not just about maintenance. It is about
getting the most overall benefit from your equipment
over the life of the equipment.
TPM will not be an overnight success. Implementing it
throughout a plant correctly will take several years.
5S is a prerequisite for TPM.
127
TPM (contd)
Benefits of TPM to the Company
o Improved plant productivity and capacity
o Lower operating costs
o Improved equipment lifespan
o Better ability to satisfy customers
128
TPM (contd)
Benefits of TPM for Operators & Maintenance
Personnel
o Increased skills through additional training
o Better job satisfaction
Operators More involvement in solving annoying
equipment problems
Maintenance More challenging work
o Better job security
129
TPM (contd)
TPM promotes Shift in Attitudes
Operator
Maintenance
Operator Maintenance
I use
I maintain &
I fix
We maintain
Conventional
TPM
130
TPM (contd)
TPM Emphasizes Prevention
o Three Principles of Prevention:
1) Maintain normal conditions
2) Early discovery of abnormalities
Operator
Maintenance
3) Prompt response
131
TPM (contd)
The Six Big Equipment Losses:
1.
2.
3.
4.
5.
6.
Breakdown losses
Setups and adjustment losses
Idling and minor stoppages
Speed losses
Scrap and rework losses
Start-up losses
132
TPM (contd)
Overall Equipment Effectiveness (OEE) is the way
to measure how effectively machine / equipment
hours are used (Value Adding).
Overall Equipment Effectiveness (OEE) =

%Availability
Breakdown losses
Set-up and
adjustment losses
%Performance x
%Quality
Idling and minor

stoppage losses
Scrap and
rework losses
Speed losses
Start-up losses
133
TPM (contd)
Calculation of LOSSES
Total (Operation) time
e.g. 480 min. (1 shift)
Available time
420 min.
Planned
Downtime
- breaks, planned
maintenance, training
Running time
340 min.
Downtime
- breakdowns, repairs
- setup
- adjustment
Productive time
270 min.
Performance
Losses
- long cycle time

- minor stoppages
- reduced yield
Quality Losses
- scrap
- rework
- rejects
Effective time
250 min.
Total losses = 170 min / shift
134
TPM (contd)
Available Time Downtime
% Availability = -------------------------------------------------------- x 100
Available Time
Where Available Time

= Total (Operation) Time Breaks Planned Maintenance Time
Quantity Produced
% Performance = ------------------------------------------------------ x 100
Running Time x (Capacity/Given time)
OR
Running Time Performance Losses
% Performance = -------------------------------------------------------------------- x 100
Running Time
135
TPM (contd)
% Quality =
Amount produced Amount defects Amount re-processed
------------------------------------------------------------------------------------x 100
Amount produced
OR
% Quality =
Productive Time Quality Losses
-------------------------------------------------------------- x 100
Productive Time
136
TPM (contd)
Calculation of OEE
% Availabilty =
% Performance =
% Quality =
Available time - Downtime
X 100
Available Time
420 min - 80 min
factor 81%
420 min
Running time - Performance losses

X 100
Running time
340 min 70 min
340 min
Productive time - Quality losses

Productive time
270 min - 20 min
270 min
Overall Equipment Effectiveness
OEE (in %) =
X
factor 79.4%
X 100
X
factor 92.6%
= 59.6%
137
TPM (contd)
How to increase OEE?
o Data collection is the very important basis to increase OEE
Collect data for all downtime
and losses on the machine
Repairs
Changeover, Adjustments
Data analysis and

visible measure
Make improvements
visible and implement
Analysis
35
30
25
20
15
10
5
Autonomous Mainten.
Preventive Maintenance
Tool change
Changeover reduction
Repair
Minor stoppages
33
Changeover Tool change
26
16
Scrap
Minor Stopp.
Standardize tooling
Scrap, rework
OEE Trend
Target 2003
Improved machine
reliability
Standardisation
Kaizen
J F M A M J J A S O N D
138
TPM (contd)
Making OEE visible by using information boards
Machine Information
OEE trend machine 01
Target 2003
Departement Information
Company Information
OEE trend Machine 01

Target 2003
Data
J FMAM J J ASOND
J FMA M J J A SOND
OEE
Productivity
Target 2003
J FMAM J J ASOND
J FMAM J J ASOND
J FMAM J J ASOND
Analysis
35
30
25
20
15
10
5
other
J FMAM J J ASOND

Target 2003
J FMAM J J ASOND
Repairs Chgeover Tool chg. Scrap Min.Stop.
33
26
16
shows the current situation

of the machine or plant
shows the machine

in the area
shows developement, trends

and links beween targets and
achievements
139
TPM (contd)
Eliminating Breakdowns
o Workplace Conditions Contribute to Losses
Dirty equipment
Oil and lubricant leaks
Moving parts covered with raw materials or debris
Disorderly wiring, hoses, etc.
Equipment mechanisms hidden or difficult to access
Workplace disorder
A belief that conditions cannot improve
140
TPM (contd)
o Why machines fail
Disregard for basic needs (housekeeping, lube..)

Incorrect operating conditions
Lack of skill or knowledge of operator
Machine deterioration
Routine
Accelerated
Design deficiency
141
TPM (contd)
o Two kinds of breakdowns
Function loss (function completely lost)
Function reduction (works, but with loss of speed or
quality)
o Two kinds of breakdown maintenance

Planned (Pro-active)
Unplanned (Re-active/ firefighting)
142
TPM (contd)
Types of Maintenance Programs
1. Reactive Maintenance (Breakdown or Run-to-Failure
Maintenance)
2. Preventive Maintenance (Time-Based Maintenance)
3. Predictive Maintenance (Condition-Based
Maintenance)
4. Autonomous Maintenance
5. Reliability Centered Maintenance (Prevention
Maintenance)
143
TPM (contd)
Reactive Maintenance (Breakdown or Run-toFailure Maintenance)
o
o
o
Allow machinery to run to failure.

Repair or replace damaged equipment when obvious
problems occur.
Studies shows that more than 55% of maintenance
resources and activities of an average facility are still
reactive.
144
TPM (contd)
Preventive Maintenance (Time-Based
Maintenance)
o
o
o
Schedule maintenance activities at predetermined time

intervals.
Repair or replace damaged equipment before obvious
problems occur.
Studies show that 31% of maintenance resources and
activities of an average facility are preventive.
145
TPM (contd)
Predictive Maintenance (Condition-Based
Maintenance)
o
Schedule maintenance activities only if and when

mechanical or operational conditions warrant-by
periodically monitoring the machinery for excessive
vibration, temperature and/or lubrication degradation, or
by observing any other unhealthy trends that occur over
time.
When the condition gets to a predetermined
unacceptable level, the equipment is shut down to
repair or replace damaged components so as to
prevent a more costly failure from occurring.
Studies show that 12% of maintenance resources and
activities of an average facility are predictive.
146
TPM (contd)
Reliability Centered Maintenance (Prevention
Maintenance)
o
o
o
Utilizes predictive/preventive maintenance techniques

with root cause failure analysis to detect and pinpoint
the precise problems, combined with advanced
installation and repair techniques, including potential
equipment redesign or modification to avoid or
eliminate problems from occurring.
Very advanced program.
Studies show that less than 2% of maintenance
resources and activities of an average facility are of this
type.
147
TPM (contd)
Autonomous Maintenance
o The principal way production workers participate
in TPM
o Purpose:
Brings production & maintenance people together to slow
routine deterioration and halt accelerated deterioration
Helps operators learn more about their equipment (the
cause and effect)
Prepares operators to be active partners with
maintenance and engineering in improving equipment
performance and reliability
148
TPM (contd)
Steps to Implementing Autonomous Maintenance
1. Initial cleaning and inspection
2. Eliminate sources of contamination and inaccessible areas
3. Develop and test cleaning, inspection, and lubrication
standards
4. General inspection training and inspection procedures
5. Conduct autonomous general inspections
6. Organize and manage the workplace
7. Ongoing autonomous maintenance and continued
improvement
149
TPM (contd)
TPM =
Preventive Maintenance
+ Predictive Maintenance
+ Autonomous Maintenance
150
TPM (contd)
Sustaining TPM
o
o
Audits
Visual activity boards
Team charter
Team activities, goal, schedule, and progress
Cleaning, inspection, and lubrication standards
Workplace organization standards
Trend charts for each of the big 6 losses
Inspection reports
Audit results
Before and after photos
151
TPM (contd)
TPM improves workplace Safety
o
o
o
o
Safety is the cornerstone of production activities

Accidents usually occur when unsafe behavior is combined
with unsafe conditions
For every major accident there are 29 minor accidents and
300 near misses
Safety should always be the #1 priority
152
TPM (contd)
Setting Up a TPM Structure
EIT
EIT
EIT
TPM
Advisory
Team
EIT
Mgmt
EIT
EIT
EIT = Equipment Improvement
Team
153
TPM (contd)
Advisory Team Responsibilities
o Guide & champion TPM implementation
o Assess current equipment OEE and develop a process for
measuring the 6 Big losses
o Develop a TPM master plan
o Set plant-wide standards for TPM implementation
o Monitor and evaluate progress
o Serve on EITs
154
TPM (contd)
Equipment Improvement Teams Responsibilities
o
o
o
o
Return equipment to near new condition

Investigate and reduce the big 6 equipment losses
Transfer routine maintenance skills to operators
Set standards for routine maintenance and inspections by
operators
o Organize the work area for more effective/efficient
maintenance
155
TPM (contd)
Setting Goals for Your TPM Program
o Short term 12 months
Establish an autonomous maintenance program for x
machines
Increase OEE by y% for individual work centers
o Long term Reach a plant OEE of 85% within 3 years (world

class is considered about 85%)
156
TPM (contd)
Summary of TPM Stages
1) Stabilize and Restore Equipment
2) Measure Six Big Losses
3) Eliminate Losses
4) Improve Design
157
TPM (contd)
Typical TPM Results
o Overall Equipment Effectiveness(OEE) up 25-65%
o Quality defects down 25-50%
o Maintenance expenditures down 10-50%
o Percent planned vs. unplanned maintenance
increased 10-60%
158

Goal
Customer Focus:
Just-In-Time
Jidoka
Involvement:

Standardization
Stability
159
Standardization
Standardized work is the safest, easiest, and most
effective way of doing the job that we currently know.
It is a tool for developing, confirming, and improving
our method (processes).
A process is simply a set of steps or actions with a
clearly defined goal, which tells the team member
what to do, when to do it, and in what order.
It is important to understand that:
o There is no one best way to do the work.
o Workers should design the work.
o The purpose of standardized work is to provide a basis for
improvement.
160
Standardization (contd)
Why Standardized Work? It provides great benefits:
1.
2.
3.
4.
5.
6.
7.
Process stability.
Clear stop and start points for each process.
Organizational learning.
Audit and problem solving.
Employee involvement.
Baseline for future improvements.
Provides a basis for employee training.
161
Exercise 7:
Lets use a standard

drawing technique
162
Standardized Work and Continuous Improvement
163
Prerequisites for Standardized Work
o We cannot work to standards when there are
continuous line stoppages and slowdowns.
o Common sources of instability:
Quality problems with incoming parts.

Problems with machinery, jigs, or tools.
Parts shortages.
A less than full condition (which means that the team
member may have to wait for a part to work on).
Safety problems such as poor ergonomic layouts, slip,
trip, and falling hazards, exposed pinch points.
164
The Elements of Standardized Work
o Takt time
o Work sequence
o In-process stock
165
Takt time tells our demand frequency, or how
frequently we must produce a product.
Takt =
Daily operating time / Required quantity per day
Takt time differs from Cycle time, which is the actual
time it takes to do the process.
Our Goal is to synchronize takt time and cycle time,
to the greatest extent possible.
166
Work Sequence defines the best way to do each job
action and the proper sequence while meeting the
takt time.
It is very useful to use pictures and drawings to show:
o
o
o
o
o
Proper posture
How the hands and feet should move
How to hold the tools
Accumulated know-how of the job
Critical quality or safety items
167
In-Process Stock (Standard WIP) is the minimum
number of unfinished work pieces required for the
operator to complete the process without standing in
front of a machine.
Defining in-process stock establishes work-in-process
standards per process and makes abnormalities
obvious.
Standard WIP=(Manual Cycle Time + Auto Cycle Time)
Takt Time
168
Main Tools Used to Define Standardized Work:
o Process Capacity Sheet
o Standardized Work Combination Table
o Standardized Work Chart
Additional Tools Include:

o
o
o
o
o
Job Instruction Sheet

Process Study Sheet
Operator Balance Chart
Skills Training Matrix
Production Analysis Board
169
Process Capacity Sheet is used to calculate the
capacity of each machine to confirm true capacity and
to identify and eliminate bottlenecks.
Processing capacity per shift will be calculated as
follows:
o Process Capacity =
Operational time per shift

Process time + Setup time/ interval
170
Process Capacity Sheet
171
Standardized Work Combination Table shows:
o
o
o
o
Work elements and their sequence.

Time per work element.
Operator and machine time.
The interaction between operators and machines or between
different operators.
This tool makes continuous improvement easier by

breaking down the movements of the operator and
relating them to the machine time.
172
Standardized Work Combination Table
173
Standardized Work Chart shows operator
movement and material location in relation to the
machine and overall process layout.
It should show takt time, work sequence, and
standard WIP.
174
Standardized Work Chart
175
Job Instruction Sheet is used to train new
operations. It lists the steps of the job, detailing any
special skill that may be required to perform the job
safely with utmost quality and efficiency.
It can also be useful for experienced operators to
reconfirm the right operations.
176
Job Instruction Sheet
177
Process Study Sheet is used to define and record
the time for work elements in a process.
The output of this tool goes as input for standardized
work combination table and standardized work chart.
178
Process Study Sheet Steps:
1.
2.
3.
4.
5.
6.
7.
Become familiar with the process area and its surroundings.

Draw the process area layout.
Show the work sequence.
Write the work elements.
Measure total cycle time (at least ten times).
Measure time for each work element (at least ten times).
Identify and measure irregular work (e.g., clearing
blockages).
8. Write the standardized work chart and standardized work
combination table.
179
Process Study Sheet
180
Operator Balance Chart helps create continuous
flow in a multi-step, multi-operator process by
distributing operator work elements in a balanced
manner such that the total time is less than or equal
to the takt time.
181
Operator Balance Chart
182
Skills Training Matrix is used to define and measure
the skills and training that your people have vs. the
skills and training they need.
And it can also be used as a Hiring Skills Matrix to

compare the strengths and weaknesses of job
candidates.
183
Skills Training Matrix
184
Production Analysis Board is a display that must be
located at the exit of the cell (or the line) to show
actual performance compared with planned
performance on an hourly basis.
This tool gives great visibility on the current status
and uncovers problems in order to link then to
corrective actions.
185
186
187
Standardized Work and Kaizen
o Standardized work is a process whose goal is to
identify muda so that we can continually improve
through team member involvement.
o If standardized work does not change, we are
regressing.
o The leaders responsibility is to maintain a good
condition and to improve.
o Where there is no Standard, there can be no
Kaizen, Taiichi Ohno
188
Some Evidence Of
Standardized Work Areas
Clear, shiny aisle ways
Color coded areas
Slogans, banners
No work-in-process ( WIP )
One-Piece Flow
Standardized Work Sheets
189
Exercise 8:
Lets do the standard

work and Kaizen exercise
190
Leveling: Line Balancing?

Everyone is doing the same
amount of work
Doing the same amount of work to
customer requirement
What is Line
Balancing?
Variation is smoothed
No one overburdened
No one waiting
Everyone working together in a
BALANCED fashion
191
192
193
Example: Line Balance Chart

This is a VISUAL production tool that enables the planning
and organisation of individual, TIMED items of work to create
the foundation for a balanced production line.
It is used as a tool to continuously drive out waste from

operations and processes and it is also a valuable tool in
implementing changes in customer demand>
194
Line Balance: Simple Example

Over-processing
Overproduction which
causes the other 6
wastes
5 mins
Inventory
Waiting
Transportation
25 mins
15 mins
10 mins
Motion
Constraint
Overburden
This operator
must WAIT for
operator 2
This operator
must WAIT for
operator 3
25
20
mins
15
10
5
Rework
195
Line Balance: Simple Example

Avoids
overburden
Promotes onepiece FLOW
15 mins
Reduces
Variation
Minimises the 7
wastes
15 mins
15 mins
10 mins
Redistribute the work

25
20
15
10
5
196
Pre-requisites To Line Balancing

Calculate Takt
Understand the drumbeat

of the CUSTOMER
Achieve CONSISTENCY in
operations
Standardise
Enabling us to achieve our

customers requirements by
managing our production effectively
Variation in our operations demands
more human intervention which,
increases the risk of HUMAN ERROR
197
Takt Time
Takt is a German word
It describes the metronome

It is the principal that all activity within a business is
synchronised by a pulse, set by the customer
demand
Takt
total time available

total customer demand
198
Takt Time
Customer demand = 10 units / month
Total time available = 20 days
Takt = total time available

total customer demand
Drumbeat = 1 part every 2 days
Each process needs to complete one unit every 2 days
Every 2
days
Process 1
Every 2
days
Process 2
Every 2
days
Process 3
Every 2
days
Process 4
Every 2
days
Process 5
Customer
199
Standardise
Standard work layout
Operation
sequence
Capture the layout
From:
Cell/ Area
To:
Description:
PPE MUST BE
WORN AT ALL
TIMES
Scale:
stores
Indicate how the

work flows
Highlight key
information
Work
station 1
Quality check
Part No.
Safety precaution
Std in process stock
Tool
cabinet
Work
station 3
Work
station 2
Qty of SIPS
Takt Time
Cycle time
6
Name / position
Date
Name / position
Date
Name / position
200
Date
Standardise
NO
REVISION
DATE PUM
ME
WORK INSTRUCTION SHEET
LOCATION:
SHEET..OF
DEPT:
DATE:
OPERATION NO.
PREPARED BY:
WP
NO
P.P.E.
MAIN STEPS
NO
OPERATING DESCRIPTION
JIGS/ TOOLS
OPERATION DESCRIPTION
PEGS REF:
HRS
AUTHORISATION:
TL
TL
TL
As per PEGS requirement
KEY POINTS
REQUIRED CHECKS
TIME
PUM
EXPLANATION/ EXAMPLES/ DIAGRAMS
TRAINING COMMENTS
201
ME
The Benefits Of The Pre-requisites

Takt time
What do you think
are the benefits?
Standard Operations
202
The Benefits Of The Pre-requisites

Takt time maximises the productivity due to:
Easily managed processes
Output of each process matches customer demand
Standard Operations provide:

Capable and repeatable processes
Process control at source
Improves accuracy of planning
Better adherence to plans
A platform from which continuous improvement can be made
Reduced costs
Improved quality
Basis for training
203
Method - Capture Current State

Calculate TAKT
Customer demand = 19 units a month

Time available = 20 days a month
TAKT = Available time
Customer demand
TAKT = 20 days ( x 24 hrs in a day)
19 units
Current State
Ops
TAKT = 25 hrs
TAKT
Total work
content
Line Balance
Ratio
Line Balance
Efficiency
204
3
25hrs

Calculate TAKT
Why video?
Time the process
- Used to visually record activity
- Accurate method of recording

- Irrefutable and unambiguous
- Modern approach to establishing method
1.
Capture a representative sample of the process
2.
Review the video with the operators present
3.
Break down the elements of work

and record a time for each one
4.
Identify which of the elements are Value-added

and which are non-value added
205

The operators cycle is broken down into elements
These elements are put into three main categories, these being :
Calculate Takt time
1.
2.
3.
Time the process
Working (man or machine)

Walking
Waiting
COMPANY
Break down the

work elements
PART NAME
STANDARDISED WORK
COMBINATION TABLE
PART NUMBER
PROCESS
WORKING
SEQUENCE
ORIGINATOR
DATE
SECTION
VOLUME
TAKT TIME
OPERATION NAME
TIME
MANUAL
AUTO
WAIT
Fit bracket A
10
Walk to bench
Machine
Inspect
0
2
10
0
10
4
0
5
2
TAKT
SEC
OPERATION TIME
WALK
1
15
2
TOTAL
ISSUER
COORDINATOR
MGR
ISSUER
KEY:
Manual
Auto
CHECKED
Walk
Waiting
206 of 43
206

Constraint customer
demand not being met
Calculate Takt time

30
Time the process
30
Takt (25 hrs)
25
20
Break down the

work elements
15
17
15
10
Draw current state

Line Balance
3
Current State
Ops
Calculate total work

content (stacked time) :
15 + 30 + 17 = 62 hrs
Takt
25 hrs
Total work
content
62 hrs
Line Balance
Ratio
Line Balance
Efficiency
207

Or alternatively ..
1.
Identify the business area to be balanced
3.
Break down each process by task

i.
ii.
iii.
Machining
Treatments
Assembly
Op 2
Op1
2.
Form small group with team leaders/

operators
Use post it notes

Write on the process name
Place on a board in sequence
4.
i.
ii.
iii.
Main
process
steps
Sub
elements
of work
Agree estimated time for each job and

number of operators involved
Is it 1, 5 or 10 hours
Estimate a time for each sub element

(use a rough guide)
Add up all the elements
Write on the main post it the total time and total operators
3
Number of operators
2 1
5hrs
Total estimated time
2 1
5hrs
10hrs
2 1
1hr
1 2
5 hrs
1 2
5 hrs
208
1 2
5 hrs
1 2
5 hrs

Calculate TAKT
Time the process
2 1
Lay all the post its out in

sequence so that all of the
processes are visible
5hrs
Break down the

work elements
Draw on the TAKT line (or use

string)
3
2
2
1
5hrs
10hrs
5hrs
2 1
1hr
1 2
5 hrs
1 2
5 hrs
Draw current state

Line Balance
TAKT
209
1 2
5 hrs
1 2
5 hrs

Target Manpower = Total Work Content
Takt time
Calculate Takt time
Time the process
30
30
Takt (25 hrs)
25
Break down the

work elements
20
15
17
15
10
Draw current state

Line Balance
3
Current State
Calculate target
manpower
Total work content = 62 hrs
Takt time = 25 hrs
= 2.48
= 3 operators
Ops
Takt
25 hrs
Total work
content
62 hrs
Line Balance
Ratio
Line Balance
Efficiency
210

Calculate Takt time
Line balance ratio =

Total work content
No. of stations x longest operation
Line balance Efficiency =
Time the process
Total work content

Target manpower x Takt
30
30
Break down the

work elements
Takt (25 hrs)
25
20
15
17
15
Draw current state

Line Balance
10
5
Calculate target
manpower
Target
manpower
Line Balance Ratio

Calculate Line
Balance Ratio &
Efficiency
Current State
= 62 hrs
(3 x 30)
X 100
= 69%
What could be achieved without

Line Balance Efficiency = 62 hrs X 100
reducing waste and still meeting = 83%
(3 x 25)
TAKT simply REBALANCING!!
Takt
25 hrs
Stacked
time
62 hrs
Line Balance
Ratio
69%
Line Balance
Efficiency
83%
211
Method Balance to TAKT

30
30
Takt (25 hrs)
25
20
17
15
30
25
25
20
15
15
10
10
Takt (25 hrs)
25
12
Target 83%
Efficiency
Example
212

1.
Identify the elements of work that exceed TAKT
Balance to TAKT
30
30
Reduce Non Value

Added and
eliminate waste
Takt (25 hrs)
25
20
17
15
15
10
Re-allocate work &

re-balance
Update calculations
2.
Can this be
improved?
COMPANY
DATE
ORIGINATOR
CHECKED
PART NAME
SECTION
STANDARDISED
WORK
COMBINATION VOLUME
TABLE
PART NUMBER
PROCESS
TAKT TIME
SEC
TIME
WORKING
OPERATION TIMETAKT
OPERATION
NAME
SEQUENCE
MANUAL
10AUTO
4 WALK
3 WAIT
1
0 0 0
1
Fit bracket2 A10 5 15
10 4 2 2
Walk to bench
1
Machine
Inspect
Yes
No
Complete work
instruction
(standardise) &
implement
Refer to Standard Work Combination table
TOTAL
ISSUER
COORDINATOR
MGR
ISSUER
3.
KEY:
Manual
Auto
Walk
Waiting
Identify where work can be re-allocated

213

Or alternatively
Balance to TAKT
Reduce Non Value

Added and
eliminate waste
Re-allocate work &

re-balance
1.
Refer to the post it

notes on the wall
2.
Use magnetic strips to signify the post

it notes (elements of time)
Update calculations
3
2 1
Can this be
improved?
1 2
1 2
1 2
2 1
1hr
1 2
5 hrs
5 hrs
5 hrs
5 hrs
5hrs
Yes
2
2 1
5hrs
10hrs
No
No
Complete work
instruction
(standardise) &
implement
3.
Using the experience of the team

leaders/ operators, invite them to
rebalance the work to below TAKT
214
Method Identify value added and

non-value added time
Value Adding:
Any process that changes the
nature, shape or characteristics
of the product, in line with
customer requirements e.g
machining, assembly
What is Value added and non-value

added time?
Non-Value Adding,but unavoidable

with current technology or methods.
Any work carried out that does not increase
product value e.g inspection, part movement,
tool changing, maintenance
Waste
And dont forget !!
All other meaningless, non-essential

activities that do not add value to the
product you can eliminate immediately e.g.
looking for tools, waiting time
215
Method Identify value added and

non-value added time
Traditional Focus
Work Longer-Harder-Faster
Add People or Equipment
Value
Added
Lean Manufacturing
Improve the Value

Stream to Eliminate
Waste
Waste
LEAD TIME
216
Method reduce non-value added time

and eliminate waste
So, identify the category of work on the
standard work combination table
Balance to TAKT
Reduce Non Value

Added and
eliminate waste
COMPANY
DATE
PART NAME
SECTION
PROCESS
WORKING
SEQUENCE
1
Re-allocate work &
re-balance
OPERATION NAME
Fit bracket A
TIME
MANUAL AUTO
WAIT
Walk to bench 0
0
2 10
Machine
10 4
Inspect
0
5
2
10
SEC
OPERATION TIME
WALK
1
15
2
Yes
No
No
Complete work
instruction
(standardise) &
implement
TOTAL
ISSUER
COORDINATOR
MGR
ISSUER
KEY:
Manual
Auto
CHECKED
VOLUME
TAKT TIME
Update calculations
Can this be
improved?
STANDARDISED WORK
COMBINATION TABLE
PART NUMBER
ORIGINATOR
Walk
Waiting
217 of 43
217
TAKT

Or alternatively
Balance to TAKT
Reduce Non Value

Added and
eliminate waste
Re-allocate work &

re-balance
Update calculations
Can this be
improved?
No
No
Complete work
instruction
(standardise) &
implement
Yes
Detail each process step (on format above)

Indicate whether the work is :
Wait
Walk
Work
Now you can split the operations on

the board into elements of Value added
and non value added work
218
Method reduce non-value added time

and eliminate waste
Balance to TAKT
Highlight the Value added and the non-value

added work elements on the line balance board
Reduce Non Value

Added and
eliminate waste
Takt (25 hrs)
30
25
20
Non value added activity
15
Re-allocate work &

re-balance
10
Value added activity
Update calculations
Can this be
improved?
Yes
No
No
Complete work
instruction
(standardise) &
implement
Use red strips to

signify non-value
added work
219
Method - reduce non-value added time

and eliminate waste
Balance to TAKT
Non value added activity

Value added activity
Reduce Non Value

Added and
eliminate waste
30
Takt (25 hrs)
25
20
15
Re-allocate work &

re-balance
10
5
Update calculations
Can this be
improved?
Yes
Reduce the NVA activity by applying

waste removal tools (changeover
reduction, 5C, process mapping
etc)
No
No
Complete work
instruction
(standardise) &
implement
Attack the
red,
redistribute
the green !!
Future State
Ops
Takt
27 hrs
Stacked
time
57 hrs
Line Balance
Ratio
Line Balance
Efficiency
220
Method Re-Allocate & Re-Balance

Balance to TAKT
30
Takt (25 hrs)
25
Reduce Non Value

Added and
eliminate waste
20
15
10
5
Re-allocate work &

re-balance
Update calculations
30
Takt (25 hrs)
25
Can this be
improved?
No
No
Complete work
instruction
(standardise) &
implement
Yes
20
Operator freed
up for other
process or
improvement
team
15
10
5
221
Method - Update The Calculations

Line balance ratio =
Balance to TAKT
Total work content

No. of stations x longest operation
Line balance Efficiency =
Reduce Non Value

Added and
eliminate waste
30
Future State
Takt (25 hrs)
25
Re-allocate work &

re-balance
Total work content

Target manpower x Takt
Ops
20
15
Takt
25 hrs
Total work
content
44 hrs
10
5
Update calculations
1
Can this be
improved?
No
No
Complete work
instruction
(standardise) &
implement
Yes
Line Balance Ratio
= 44 hrs
(2 x 24)
Line Balance Efficiency
= 44 hrs
(2 x 25)
Line Balance
Ratio
X 100
X 100
= 92%
Line Balance
Efficiency
= 88%
Previous balance ratio = 69%

Improvement of 23%
222
92%
88%
Method - Continuous Improvement

Balance to TAKT
Act
Plan
Reduce Non Value

Added and
eliminate waste
Check
C D
Do
Re-allocate work &

re-balance
Continuously use
waste elimination tools
Update calculations
Yes
Can this be
improved?
No
Complete work
instruction
(standardise) &
implement
Value
Added
Waste
LEAD TIME
223
Method - Standardise
Standard work layout
Operation
sequence
Capture the NEW

layout
From:
Cell/ Area
To:
Description:
PPE MUST BE
WORN AT ALL
TIMES
Part No.
Scale:
Tool
cabinet
stores
Indicate how the

work flows
Tool
cabinet
Highlight key
information
Work
station 1
Quality check
Safety precaution
Std in process stock
Work
station 3
Work
station 2
Qty of SIPS
Takt Time
Cycle time
6
Name / position
Date
Name / position
Date
Name / position
224
Date
Method - Standardise
NO
REVISION
DATE Mgr
ME
WORK INSTRUCTION SHEET
LOCATION:
SHEET..OF
DEPT:
DATE:
OPERATION NO.
PREPARED BY:
WP
NO
P.P.E.
MAIN STEPS
NO
OPERATING DESCRIPTION
JIGS/ TOOLS
OPERATION DESCRIPTION
PEGS REF:
HRS
AUTHORISATION:
TL
TL
TL
KEY POINTS
REQUIRED CHECKS
TIME
PUM
EXPLANATION/ EXAMPLES/ DIAGRAMS
TRAINING COMMENTS
225
ME
Visual Management
The new line balance chart should be
displayed on the cell
The impact of changes in resource or
Takt on operator cycle times can be
seen instantly
Opportunities for Kaizen activities can
be easily identified
226
Summary
Balance to TAKT & eliminate waste
Capture the current state
Balance to TAKT
Calculate Takt time
Time the process

2
Current State
Operators
Takt
62 hrs
Line Balance
Efficiency
69%
Line Balance
Ratio
Future State
Break down the
work elements
25 hrs
Total work
content
83%
5hrs
Reduce Non Value

Added and
eliminate waste
Draw current state

Line Balance
Calculate target
manpower
Re-allocate work &

re-balance
Update calculations
Can this
Can
this be
improved?
be
improved?
Yes
Ops
Takt
25 hrs
Total work
content
44 hrs
Line Balance
Ratio
92%
Line Balance
Efficiency
No
Calculate Line
Balance Ratio &
Efficiency
Complete work
instruction
(standardise) &
implement
227
88%

Goal
Customer Focus:
Just-In-Time
Jidoka
Involvement:

Standardization
Stability
228
Just In Time (JIT)

JIT production means producing the right item at the
right time in the right quantity, anything else counts as
muda.
JIT establishes flow processes so there is an even,

balanced flow throughout the entire production
process.
JIT benefits:
o
o
o
o
Reduced inventory levels (improved profits)

Less wastes: improved product quality
Reduced delivery lead times
Reduced costs
229
Just In Time (JIT)

JIT production relies on:
o Production Leveling (Heijunka) as a foundation.
o And three operating elements:
Continuous flow.
Takt time.
Pull system.
In turn, pull system, continuous flow, and heijunka

depend on quick changeovers, visual management
through 5S, and capable processes through TPM, 5S
and standardized work.
230
JIT (contd)
Kanban is a signaling device that gives authorization and
instructions for the production or withdrawal (conveyance) of
items in a pull system.
Usually, it is a card in a rectangular vinyl envelope.
It contains information such as: part name, part number, external
supplier or internal supplying process, pack-out quantity, storage
address, and consuming process address.
231
JIT (contd)
There are two kinds of Kanban:
o Production Kanban, which specifies the kind and quantity of
product that the upstream process (supplier) must produce.
o Withdrawal Kanban, which specifies the kind and quantity of
product that the downstream process (customer) may withdraw.
Production Card
Withdrawal Card
Customer
Process
Supplying
Process
product
product
Finished Goods Store

232
JIT (contd)
Production Leveling (Heijunka) means distributing the
production volume and mix evenly over time.
Heijunka balances the workload in production such that it
achieves the best possible utilization of people and equipment
without straining them while effectively responding to continuous
changes in customer demand.
Heijunka requires quick changeovers.
233
JIT (contd)
Heijunka Example: Instead of producing all medium tractors then all
small tractors then all large tractors throughout the week, level
production such that you would alternate small batches of the three
sizes during each day.
Traditional Production
Leveled Production
234
JIT (contd)
Heijunka Box is a tool used to level the mix and
volume of production by distributing kanban within a
facility at fixed intervals.
235
JIT (contd)
SMED (Single Minute Exchange of Die) is a process
for changing over production equipment from one part
number to another in as little time as possible.
Benefits of SMED:
o
o
o
o
o
o
Reduced setup time

Higher efficiencies
Increased capacity
Reduced WIPs
Lower batch sizes
Increased safety
o
o
o
o
Increased flexibility
Elimination of waiting
Operators preference
Stockless production
236
JIT (contd)
SMED (Single Minute Exchange of Die) is a method for
systematically reducing setup and retooling times.
With shorter setup times, a machine that was a bottleneck
(constraint) can yield additional production capacity.
Alternatively, more frequent changeovers at constant capacity
can reduce inventory ahead of and following the machine.
Slow changeover
due to poor
positioning of dies
Quick changeover
237
JIT (contd)
SMED key definitions:
o Changeover (Setup) is the process of switching from the
production of one product or part number to another in a machine
(e.g., a stamping press or molding machine) or a series of linked
machines (e.g., an assembly line or cell) by changing parts, dies,
molds, fixtures, etc.
o Changeover time is measured as the time elapsed between the
last piece in the run just completed and the first good piece from
the process after the changeover.
o Internal step is a step which can be done only when a machine is
stopped (such as inserting a new die).
o External step is a step that can be performed while the machine is
running (such as transporting the new die to the machine).
238
JIT (contd)
SMED is performed in six steps:
239
JIT (contd)
Traditional Flow (Batch and Queue)
o A mass production approach to operations in which large lots
(batches) of items are processed and moved (pushed) to the
next processregardless of whether they are actually
neededwhere they wait in a line (a queue).
Process
A
Process
B
10 minutes
Process
C
10 minutes
10 minutes
Lead Time 30+ minutes for total order

21+ minutes for first piece
240
JIT (contd)
Continuous Flow (One-Piece Flow)
o Producing and moving one item at a time (or a small and
consistent batch of items) through a series of processing
steps as continuously as possible, with each step making just
what is requested by the next step.
Process Process Process

A
B
C
12 min. for total order

3 min. for first part
241
JIT (contd)
Push Systems and Pull Systems
o Production quantity
is determined based
on demand
estimates and
current inventories
o Pull systems start

production as a
response to a real
demand (from an
end customer or the
next process
downstream)
242
JIT (contd)
There are 3 Types of Pull Systems
o Supermarket Pull System
o Sequential Pull System
o Mixed Pull System
243
JIT (contd)
Supermarket Pull System
o The most basic and widespread type, also known as a fill-up or
replenishment pull system.
o In a supermarket pull system each process has a store -- a
supermarket -- that holds an amount of each product it produces.
o Each process simply produces to replenish what is withdrawn from

its supermarket through kanbans and heijunka box.
o The disadvantage of a supermarket system is that a process must
carry an inventory of all part numbers it produces, which may not be
feasible if the number of part numbers is large.
o Works best when customer orders are frequent and lead times are
short and stable (e.g. auto parts industry).
244
JIT (contd)
Supermarket Pull System
245
JIT (contd)
Sequential Pull System
o Used when there are too many part numbers to hold inventory of
each in a supermarket.
o Products are essentially made-to-order while overall system
inventory is minimized.
o Scheduling department must set the right mix and quantity of
products to be produced. This can be done by placing production
kanban cards in a heijunka box, often at the beginning of each shift.
o A sequential system requires strong management to maintain, and
improving it may be a challenge on the shop floor.
o Works best when order frequency is low and customer lead times is
long (e.g. custom producers).
246
JIT (contd)
Sequential Pull System
247
JIT (contd)
Mixed Pull System
o Mixed pull system is a combination of supermarket and sequential
pull systems running in parallel.
o Often an analysis is performed to segment part numbers by volume
into (A) high, (B) medium, (C) low, and (D) infrequent orders.
o High frequency orders are put through the supermarket system.
o Low frequency orders are put through the sequential system.
o Works best for manufacturers producing both high and low
frequency items.
248
JIT (contd)
Mixed Pull System
249

Goal
Customer Focus:
Just-In-Time
Jidoka
Involvement:

Standardization
Stability
250
Jidoka
Jidoka Automation with a human touch means
providing machines and operators the ability to detect
when an abnormal condition has occurred and
immediately stop work.
This enables operations to build in quality at each
process and to separate operators and machines for
more efficient work.
251
Jidoka (contd)
Jidoka highlights the causes of problems because
work stops immediately when a problem first occurs.
This leads to improvements in the processes that
build in quality by eliminating the root causes of
defects.
The evolution toward Jidoka:
automatic
feed
automatic
feed
andon light
automatic
ejection
Manual feed and

watch machine cycle
Watch machine cycle
Self-monitoring
machine
252
Jidoka (contd)
Poka-Yoke (Mistake-proofing) or (Error-proofing)
means implementing simple low-cost devices that
either detect abnormal situations or stop the line to
prevent defects.
Poka-Yoke reduce workers physical and mental
burden by eliminating the need to constantly check
for the common errors that leads to defects.
253
Jidoka (contd)
Some of the most common errors:
o
o
o
o
o
o
o
o
o
o
Missing process steps.

Process errors.
Mis-set work pieces.
Missing parts
Wrong parts.
Wrong work piece processed.
Faulty machine operation.
Adjustment errors.
Equipment not set up properly.
Tools and jigs inadequately prepared.
254
Jidoka (contd)
A good Poka-Yoke satisfies the following:
o
o
o
o
Simple, with long life and low maintenance.

High reliability.
Low cost.
Designed for workplace conditions.
The best source of Poka-Yokes is shop floor team

members.
An effective Poka-Yoke:
o Inspects 100 percent of the items.
o Provides immediate feedback so as to compel
countermeasures.
255
Jidoka (contd)
When a Poka-Yoke detects an error, there are two
types of action:
o Shutdown: These are the most powerful Poka-Yokes. For
example, a light sensor stops a drilling operation when it
fails to detect the requisite number of holes in the work
piece.
o Warning: These alert us to abnormalities by activating a
buzzer or light. For example, the andon boards alerts the
group leader to problems by lighting the process number,
playing a piece of music, or both.
Simple Andon
Complex Andon
256
Jidoka (contd)
Poka-Yoke examples from daily life:
257
Jidoka (contd)
Poka-Yoke examples in manufacturing
Elimination
Detection
258
Jidoka (contd)
Poka-Yoke examples in manufacturing
Detection
Detection
259
Lean Management Tools

Continuous
Improvement
Kanban
Flow
Leveling
Standardized Work
5S
Visual
Pull
Lean
Starts
with VSM
Poka Yoke
SMED
Change Management
TPM
VSM
260
Value Stream Mapping (VSM)

VSM is a visual representation of all the steps
(VA/ NVA) needed to fulfill a customer order
from time of ordering to the delivery point.
VSM describes two flows:

o Orders traveling upstream from the customer
o Products traveling downstream to the customer
261
Value Stream Mapping (VSM)(contd)

VSM enables us to:
o See the big picture, not just individual processes
o See how the process currently operates
o See linkages between information and material
flow
o See the waste and the source of waste
o Establish a common language for improvement
o Foundation for designing lean flow and the future
state
262

VSM objectives:
o
o
o
o
o
Correct specification of value

Elimination of wasteful steps
Flow where you can
Pull where you cant
Management toward perfection
263

VSM process steps:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Select one value stream - a product family

Walk the physical flow of material no data collection
Walk the flow again, collecting data
Draw the Current State Map
Identify opportunities to eliminate waste and create flow
Draw the Future State Map
Generate a Value Stream Plan
Start making the improvements
Conduct Value Stream Reviews
Repeat the cycle
264

Selecting a Value Stream (STEP 1)
o Select one value stream shared definition of value
by customer or customer category

by product or product family
by plant
by service - production, spares, repair
o A family is a group of items that pass through similar

processing steps and over common equipment.
o Focus on the downstream processes not upstream steps.
Upstream processes may serve many product families in a
batch mode.
265
F E D C B A
Products
Create a matrix if your product mix is complicated.
Assembly and Equipment

1
2
3
4
5
6
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
A Product
Family
266

Levels of a Value Stream
o You can value stream map at
different levels
o Across companies is too
complicated to start with
o Start mapping door-to-door within
your own facility:
This is under your control
It is easier to make improvements
immediately
o Expand outward to broaden the

value stream later
Process Level
Single Plant
(Door-to-door)
Multiple Plants
Across Companies
267

Walk the Flow (STEP 2)
o Let the workers know what you are doing.
o Walk the flow first (no data collection). Walk it yourself.
o Begin at shipping and work upstream. This begins with the
processes that are linked closer to the customer. If it is too
confusing, start at the beginning and go downstream.
o See how the material moves.
o See the piles of material and WIP.
o See how people work.
o Identify the major process steps
268

Walk the Flow Again (STEP 3)
o Walk the flow again, this time collecting data.
o Begin at shipping and work upstream.
o Obtain the data yourself, do not rely on computer
printouts.
o Use pencil and paper.
o Ask questions and listen.
o Collect data relevant to the definition of value.
269

Walk the Flow Again-Typical Data Collected (STEP3)
o Customer Need
Demand Number of units per day the customer wants
Available work time Scheduled work time minus breaks,
meetings and clean up time
o Inventory
WIP Number of units waiting to be worked on or waiting to
be moved.
Finished Goods Number of units in stores or waiting to be
shipped.
270

Walk the Flow Again-Typical Data Collected (STEP3)
o Each Process Step
Cycle time CT The time between one part coming off the
process and the next part coming off.
Yield First Time Yield or scrap%
Number of people Required to operate the process.
Uptime The percentage of time the equipment is available
to run, when it is needed to be run
Batch Size typical lot size or minimum
Change Over Time Co The time from the last good piece
of one batch to the first good piece of the next batch
EPE Every part every __. How often do you changeover to
produce this part?
271

Walk the Flow Again-Calculated Data (STEP 3)
o Takt Time TT How often does the customer need another
unit.
(Available work time per day)/(demand per day)
o Inventory measured in days.

(Number of units)/(demand per day)
Overall Flow
o Process Lead Time The time for a unit to make it all the way
through the process
(Sum of Inventory Days) + (Sum of Cycle Times)
o Processing Time The time spent actually performing work on

the unit
(Sum of Cycle Times)
272

Draw the Current State Map(STEP 4)
o Drawing the future state map begins with the current
production situation.
o Symbols and icons assure a consistent language.
o Draw the rough draft as you walk the floor in step 3
collecting data.
o Use pencil and paper, not a computer.
o Map the whole value stream, not just a segment.
273

Example
PROCESS BOX ICONS
DATA BOX ICONS

- C/T time
- C/O time
- Up time
- Scrap
274

Example
Information Flow
INVENTORY ICONS
WITH PUSH ARROWS
Material Flow
275

Mapping Tips 1
o Use Colored Post-it notes paper for Mapping
(Easier to move Post-it notes than redraw)
o Use roll of butcher paper so you can use a wall

and see the whole VSM
o Use string or ribbon to show material &
information flows
o Decide whether to count all parts or sample
276

Mapping Tips 2
o Best to map production lines between Monday
and Wednesday
o Use someone from the line or process to walk you
through it first, post-it note process, come back
and get Real Data and Times
o If you plan on using the times to balance your
process then do not take shortcuts - you will be
way off (Embarrass yourself!!)
o See with your hands. No Armchair Lean!
277

Mapping Tips 3
o Calculate production lead time for inventory
triangles by dividing quantity of inventory by the
customer daily requirement
This is a really neat trick! It turns a count of inventory
into the number of production days that inventory
represents
o Add a title and date the map

o Remember Always start with the Customer
278
279
280

Material Flow Icons
Assembly
XYZ
Corporation
Process
Box
Supplier/
Customer
C/T=45 sec.
C/O=30 min.
3 Shifts.
2% Scrap
300 pieces
1 day
Data Box
Inventory
Supermarket
Mon
+ Wed
Shipment
FIFO
Push
Physical
Pull
Finished Goods
to Customer
First-In-First-Out
Flow
281

Information Flow Icons
Manual
Information Flow
Kanban Arriving in
Batches
Electronic
Information Flow
Withdrawal
Kanban
Weekly
Schedule
OXOX
Schedule
Load
Leveling Box
Production
Kanban
Sequenced-Pull
Ball
Signal
Kanban
282
Kanban
Post

General Icons
Uptime
Changeover
Operator
Kaizen
Lightning Burst
Buffer or
Safety Stock
Go See
Production
Schedule
283

Draw the Current State Map (STEP 4)
State St.
Assembly
18,400 pcs/mo
First - Show the

Customer
-12,000 L
-6,400 R
Tray=20 pcs.
2 Shifts
284

Second - add the
major Processes,
Data Boxes, and
Inventory Triangles
State St.
Assembly
18,400 pcs/mo
-12,000 L
-6,400 R
Tray=20 pcs.
The data obtained is put in the data box directly beneath

the process box.
I
Stamping
Coils
5 days
S. Weld # 1
4600 L
2400 R
S. Weld # 2
1100L
600 R
Assy # 1
1600 L
850 R
2 Shifts
Assy # 2
1200 L
640R
2700 L
1440 R
CT=1sec.
Co=1 hr.
Uptime=85%
CT=39sec
.Co=10 min.
Uptime=100%
CT=46sec
.Co=10 min.
Uptime=80%
CT=62sec
Co=0
.
Uptime=100%
CT=40sec
.Co=0
Uptime=100%
27,600 sec. avail

EPE=2 weeks
2 shifts
27,600 sec.avail
2 shifts
27,600 sec.avail
2 shifts
27,600 sec.avail
2 shifts
27,600 sec.avail
285
Shipping

The supplier of raw material is identified with
a factory icon. In this case they deliver 500
ft coils
Michigan
State St.
Assembly
Steel Co.
18,400 pcs/mo
-12,000 L
Third - Show the

Material Flow
500 Ft. Coils
-6,400 R
Tray=20 pcs.
Tues &
Thurs.
2 Shifts
A truck icon and broad arrow indicate movement of

finished goods to the customer and raw material to
the site.
I
Stamping
Coils
5 days CT=1sec.
Co=1 hr.
S. Weld # 1
S. Weld # 2
1100L
600 R
4600 L
2400 R
Uptime=85%
27,600 sec. avail
EPE=2 weeks
Assy # 1
1600 L
850 R
1X
Daily
Assy # 2
2700 L
1440 R
1200 L
640R
CT=39sec
.Co=10 min.
CT=46sec
.Co=10 min.
CT=62sec
Co=0
.
CT=40sec
.Co=0
Uptime=100%
2 shifts
27,600 sec.avail
Uptime=80%
2 shifts
27,600 sec.avail
Uptime=100%
2 shifts
27,600 sec.avail
Uptime=100%
2 shifts
27,600 sec.avail
Shipping

Information flow is drawn from right to left in the
top half of the map space.
solid line arrows (paper transfer)
arrow with a lightening bolt (electronic transfer)
Material movements that are pushed are

represented by a striped arrow
PUSH
A process that produces regardless of the needs of the
downstream customer
A guess as to what is needed (forecasts)
Processes are allowed to set batch sizes and produce at a
pace that makes sense from its perspective not the
customers.
287
Fourth - show
Information Flows
& Push Arrows

90/60/30 day
Forecasts
Production
Control
6 WEEK
Forecast
MRP
Michigan
Daily
Order
Steel Co.
State St.
Assembly
18,400 pcs/mo
-12,000 L
-6,400 R
Tray=20 pcs.
500 ft. Coils

WEEKLY SCHEDULE
2 Shifts
Tues &
Thurs.
1X
Daily
Coils
5 days
Stamping
S. Weld # 1
4600 L
2400 R
CT=1sec.
Co=1 hr.
Uptime=85%
27,600 sec. avail
EPE=2 weeks
S. Weld # 2
I
1100R
600 R
CT=39sec
.Co=10 min.
Uptime=100%
2 shifts
27,600 sec.avail
Assy # 1
CT=46sec
.Co=10 min.
Uptime=80%
2 shifts
27,600 sec.avail
1600 L
850 R
Assy # 2
I
Shipping
I
2700 L
1200 L
1440 R
CT=62sec
640R CT=40sec
Co=0
.
.Co=0
Uptime=100%
Uptime=100%
2 shifts
2 shifts
27,600 sec.avail
27,600 sec.avail

The timeline summarizes the current condition of the value
stream
Production Lead-Time is the time it takes for a part to make its
way through the shop floor beginning with the raw material
Inventory Lead-time( shown with the inventory triangles)is
calculated as follows:
o Inventory quantity divided by the daily customer
requirements. Then add all process inventory lead-times.
Inventory Quantity
Daily Customer Requirement
289
Fifth (Final) - Show Timeline

90/60/30 day
Forecasts
Production
Control
6 WEEK
Forecast
MRP
Michigan
State St.
Assembly
Daily
Order
Steel Co.
18,400 pcs/mo
-12,000 L
-6,400 R
Tray=20 pcs.
500 ft. Coils

WEEKLY SCHEDULE
2 Shifts
Tues &
Thurs.
1X
Daily
I
Coils
5 days
Stamping
S. Weld # 1
4600 L
2400 R
5
days
CT=1sec.
Co=1 hr.
Uptime=85%
27,600 sec. avail
EPE=2 weeks
1
sec
S. Weld # 2
Assy # 1
1100R
600 R
CT=39sec
.Co=10 min.
Uptime=100%
2 shifts
27,600 sec.avail
7.6 days
CT=46sec
.Co=10 min.
Uptime=80%
2 shifts
27,600 sec.avail
1.8 days
39 sec
Shipping
1600 L
850 R CT=62sec
Co=0
.
1200 L
640R CT=40sec
.Co=0
Uptime=100%
Uptime=100%
2 shifts
2 shifts
27,600 sec.avail
27,600 sec.avail
2.7 days
46 sec
Assy # 2
2 days
62 sec
40 sec
2700 L
1440 R
(PLT)
4.5 days=23.6 days
(PT)
=188 sec
Complete VSM
90/60/30 day
Forecasts
Production
Control
6 WEEK
Forecast
MRP
Michigan
State St.
Assembly
Daily
Order
Steel Co.
18,400 pcs/mo
-12,000 L
-6,400 R
500 ft. Coils
Tray=20 pcs.
WEEKLY SCHEDULE
2 Shifts
Tues &
Thurs.
1X
Daily
I
Coils
5 days
Stamping
S. Weld # 1
4600 L
2400 R
5
days
CT=1sec.
Co=1 hr.
Uptime=85%
27,600 sec. avail
EPE=2 weeks
1
sec
S. Weld # 2
Assy # 1
1100R
600 R
CT=39sec
.Co=10 min.
Uptime=100%
2 shifts
27,600 sec.avail
7.6 days
CT=46sec
.Co=10 min.
Uptime=80%
2 shifts
27,600 sec.avail
1.8 days
39 sec
Shipping
1600 L
850 R CT=62sec
Co=0
.
1200 L
640R CT=40sec
.Co=0
Uptime=100%
Uptime=100%
2 shifts
2 shifts
27,600 sec.avail
27,600 sec.avail
2.7 days
46 sec
Assy # 2
2 days
62 sec
40 sec
2700 L
1440 R
(PLT)
4.5 days=23.6 days
(PT)
=188 sec

What is wrong with previous VSM?
3 VA processes
Traditional mass
production thinking
about economies of
scale
Batches pushed
through
=> waste
Look at VA time
compared to time in
plant
292

What makes a Value Stream Lean?
o
o
o
o
Primarily the elimination of the number one waste

OVERPRODUCTION!!!
Since this material is not yet needed it must be handled,
counted, stored.
Defects remain hidden in inventory queues
Overproduction results in shortages, because processes
are busy making the wrong things.
293

Eliminate Waste (STEP 5)
o
o
o
o
o
o
o
Overproduction
Waiting
Transportation
Unnecessary Processing
Inventory
Unnecessary Motion
Correction
o Wasting A Persons time or talent
294

Overproduction - The primary waste
o Making parts faster than is required
Excess Inventory
Time wasted, that could be used to make product that is
required
Waiting
o An operator waiting for a long machine cycle to end
Transportation
o Moving parts and products does not add value - it just adds
cost
295

Unnecessary Processing
o Booking work into a store and then having to book it back
out again to use.
Inventory
o There is a cost to the Company for carrying inventory
o There is always the risk that it can become obsolete
o It covers up other inefficiencies
e.g. Long set-up times
Unnecessary Motion
o Any motion of a person that does not add value
Operators / Setters looking for tooling
296

Correction
o Reworking defective materials
Things to remember about waste

o It is a symptom rather than a root cause of the problem
o It points to problems within the system, at both process and value
stream levels
o We need to find and address the causes of the waste
297

Create Flow (STEP 5)
o We are concerned with system efficiency rather than the
efficiency of an individual process
o The question is, how fast should we produce?
298

Takt Time (STEP 5)
o We should match the rate of production to the rate of sales
o Takt is the German word that means beat or pace
Takt Time
= Effective working time per day

Customer requirement per day
= 27,000 sec = 59 sec
460 pieces
o What is the effective working time per day?

o What do we do about machine down time?
o Why is cycling faster than takt expensive?
299

What is Flow? (STEP 5)
300

Where do we use Flow? (STEP 5)
o Use continuous flow wherever possible
o Where can not we use continuous flow?
Long set-ups
Large distances
Downtime problems
Long lead-times
301

Alternatives to Continuous Flow (STEP 5)
o Kanban
A signal that provides an instruction to regulate the sequence
and timing of production
o Two-bin
Bins used to regulate production
o Buffer stock
Standard work
Curtain operation
o Supermarket
Controlled quantity of inventory
Visual controls
Owned by the supplier
302

A Supermarket Pull System(STEP 5)
o PURPOSE:
Controls production at the supplying process without trying to
schedule it.
Controls production between flows.
Production KANBAN
Withdrawal KANBAN
Supplying
Process
Customer
Process
PRODUCT
Supermarket
1) CUSTOMER
303

A Supermarket Pull System(STEP 5)
o A pull system between processes
gives accurate build instructions to the upstream process
without trying to predict downstream demand
instead of forecasting the upstream process.
o The pull by the downstream process determines:

what the upstream produces
when
and in what quantity.
o Should be located near the supplying process.

o Are only used when continuous flow will not work.
o There is a cost - inventory and material handling.
304

Schedule Only One Point (STEP 5)
o If pull systems schedule upstream process we can try to schedule
only one point in the value stream Pacemaker.
o No supermarkets downstream of the schedule point
(except finished goods).
schedule
schedule
305

Draw the Future State Map (STEP 6)
o THE PURPOSE:
Highlight sources of waste
Eliminate them
In a short period of time.
o THE GOAL: To build a chain of production where the

individual processes are linked to the customer(s) either by
continuous flow (the best) or pull and each process gets as
close as possible to producing only what the customer(s)
need when they need it.
o What can we do with what we have?
306
Value Stream Map Current State
Suppliers
90/60/30 day
Forecasts
Production
Control
6 WEEK
Forecast
MRP
Order Entry
WEEKLY SCHEDULE
Orders/day
= 36
Queue
= 1.5 Days
Lead Time - 34 Days
Customer
Demand = 45 per day

2 shifts
Takt Time
= 18.2 Minutes
Competitive Lead Time
= 3 Days
1X
Daily
I
Coils
5 days
Stamping
S. Weld # 1
342
CT=1sec
Co=1 hr.
Uptime=85%
1 shift
5 days
Assembly
Test
I
81
CT=3 min
Co=10 min.
Uptime=70%
1 shift
7.6 days
1 sec
1.8 days
3 min
90
202
CT= 67 min
Co= 23 min
CT= 4 min
Co=0
FTY = 67%
2 shifts
Uptime=100%
2 shifts
2.7 days
15 min
122
CT= 15 min
Co=0 min.
Uptime=100%
2 shifts
Shipping
4.5 days
67 min
Lead Time
=23.6 days
Touch Time
= 89 min
2 days
4 min
Customer Data
On-Time Delivery
Demand = 45/day
Takt Time = 18.2 min
Competitive LT = 3 days
Suppliers
90/60/30 day
Forecasts
Production
Control
6 WEEK
Forecast
MRP
Order Entry
WEEKLY SCHEDULE
Orders/day
= 36
Queue
= 1.5 Days
Lead Time - 34 Days
Customer
Demand = 45 per day

2 shifts
Takt Time
= 18.2 Minutes
= 3 Days
1X
Daily
I
Coils
5 days
Stamping
S. Weld # 1
342
CT=1sec
Co=1 hr.
Uptime=85%
1 shift
5 days
Assembly
Test
I
81
CT=3 min
Co=10 min.
Uptime=70%
1 shift
7.6 days
1 sec
1.8 days
3 min
90
202
CT= 67 min
Co= 23 min
CT= 4 min
Co=0
FTY = 67%
2 shifts
Uptime=100%
2 shifts
2.7 days
15 min
122
CT= 15 min
Co=0 min.
Uptime=100%
2 shifts
Shipping
4.5 days
67 min
Lead Time
=23.6 days
Touch Time
= 89 min
2 days
4 min
Inventory
Raw = 5 days
WIP = 12.1 days
FG = 6.5 days
Suppliers
90/60/30 day
Forecasts
Production
Control
6 WEEK
Forecast
MRP
Order Entry
WEEKLY SCHEDULE
Orders/day
= 36
Queue
= 1.5 Days
Lead Time - 34 Days
Customer
Demand = 45 per day

2 shifts
Takt Time
= 18.2 Minutes
= 3 Days
1X
Daily
I
Coils
5 days
Stamping
S. Weld # 1
342
CT=1sec
Co=1 hr.
Uptime=85%
1 shift
5 days
Assembly
Test
I
81
CT=3 min
Co=10 min.
Uptime=70%
1 shift
7.6 days
1 sec
1.8 days
3 min
90
202
CT= 67 min
Co= 23 min
CT= 4 min
Co=0
FTY = 67%
2 shifts
Uptime=100%
2 shifts
2.7 days
15 min
122
CT= 15 min
Co=0 min.
Uptime=100%
2 shifts
Shipping
4.5 days
67 min
Lead Time
=23.6 days
Touch Time
= 89 min
2 days
4 min
Flow of Value
Lead Time
Lead Time = 23.6 days

Touch Time = 89 min
Suppliers
90/60/30 day
Forecasts
Production
Control
6 WEEK
Forecast
MRP
Order Entry
WEEKLY SCHEDULE
Orders/day
= 36
Queue
= 1.5 Days
Lead Time - 34 Days
Customer
Demand = 45 per day

2 shifts
Takt Time
= 18.2 Minutes
= 3 Days
1X
Daily
I
Coils
5 days
Stamping
S. Weld # 1
342
CT=1sec
Co=1 hr.
Uptime=85%
1 shift
5 days
Assembly
Test
I
81
CT=3 min
Co=10 min.
Uptime=70%
1 shift
7.6 days
1 sec
1.8 days
3 min
90
202
CT= 67 min
Co= 23 min
CT= 4 min
Co=0
FTY = 67%
2 shifts
Uptime=100%
2 shifts
2.7 days
15 min
122
CT= 15 min
Co=0 min.
Uptime=100%
2 shifts
Shipping
4.5 days
67 min
Lead Time
=23.6 days
Touch Time
= 89 min
2 days
4 min
Constraints
OTD, Lead Time
Max Wip = 7.6 days

CT (67) > Takt Time (18)
Suppliers
90/60/30 day
Forecasts
Production
Control
6 WEEK
Forecast
MRP
Order Entry
WEEKLY SCHEDULE
Orders/day
= 36
Queue
= 1.5 Days
Lead Time - 34 Days
Customer
Demand = 45 per day

2 shifts
Takt Time
= 18.2 Minutes
= 3 Days
1X
Daily
I
Coils
5 days
Stamping
S. Weld # 1
342
CT=1sec
Co=1 hr.
Uptime=85%
1 shift
5 days
Assembly
Test
I
81
CT=3 min
Co=10 min.
Uptime=70%
1 shift
7.6 days
1 sec
1.8 days
3 min
90
202
CT= 67 min
Co= 23 min
CT= 4 min
Co=0
FTY = 67%
2 shifts
Uptime=100%
2 shifts
2.7 days
15 min
122
CT= 15 min
Co=0 min.
Uptime=100%
2 shifts
Shipping
4.5 days
67 min
Lead Time
=23.6 days
Touch Time
= 89 min
2 days
4 min
Setup Times
OP Margin, Lead Time
CO = 1 hour
CO = 23 min
CO =
Suppliers
90/60/30 day
Forecasts
Production
Control
6 WEEK
Forecast
Changeover
MRP
Order Entry
WEEKLY SCHEDULE
Orders/day
= 36
Queue
= 1.5 Days
Lead Time - 34 Days
Customer
Demand = 45 per day

2 shifts
Takt Time
= 18.2 Minutes
= 3 Days
1X
Daily
I
Coils
5 days
Stamping
S. Weld # 1
342
CT=1sec
Co=1 hr.
Uptime=85%
1 shift
5 days
Assembly
Test
I
81
CT=3 min
Co=10 min.
Uptime=70%
1 shift
7.6 days
1 sec
1.8 days
3 min
90
202
CT= 67 min
Co= 23 min
CT= 4 min
Co=0
FTY = 67%
2 shifts
Uptime=100%
2 shifts
2.7 days
15 min
122
CT= 15 min
Co=0 min.
Uptime=100%
2 shifts
Shipping
4.5 days
67 min
Lead Time
=23.6 days
Touch Time
= 89 min
2 days
4 min
Maintenance
OTD, Lead Time
Uptime = 70%
Suppliers
90/60/30 day
Forecasts
Production
Control
6 WEEK
Forecast
MRP
Order Entry
WEEKLY SCHEDULE
Orders/day
= 36
Queue
= 1.5 Days
Lead Time - 34 Days
Customer
Demand = 45 per day

2 shifts
Takt Time
= 18.2 Minutes
= 3 Days
1X
Daily
I
Coils
5 days
Stamping
S. Weld # 1
342
CT=1sec
Co=1 hr.
Uptime=85%
1 shift
5 days
Assembly
Test
I
81
CT=3 min
Co=10 min.
Uptime=70%
1 shift
7.6 days
1 sec
1.8 days
3 min
90
202
CT= 67 min
Co= 23 min
CT= 4 min
Co=0
FTY = 67%
2 shifts
Uptime=100%
2 shifts
2.7 days
15 min
122
CT= 15 min
Co=0 min.
Uptime=100%
2 shifts
Shipping
4.5 days
67 min
Lead Time
=23.6 days
Touch Time
= 89 min
2 days
4 min
Quality
FTY = 67%
Suppliers
90/60/30 day
Forecasts
Production
Control
6 WEEK
Forecast
MRP
Order Entry
WEEKLY SCHEDULE
Orders/day
= 36
Queue
= 1.5 Days
Lead Time - 34 Days
Customer
Demand = 45 per day

2 shifts
Takt Time
= 18.2 Minutes
= 3 Days
1X
Daily
I
Coils
5 days
Stamping
S. Weld # 1
342
CT=1sec
Co=1 hr.
Uptime=85%
1 shift
5 days
Assembly
Test
I
81
CT=3 min
Co=10 min.
Uptime=70%
1 shift
7.6 days
1 sec
1.8 days
3 min
90
202
CT= 67 min
Co= 23 min
CT= 4 min
Co=0
FTY = 67%
2 shifts
Uptime=100%
2 shifts
2.7 days
15 min
122
CT= 15 min
Co=0 min.
Uptime=100%
2 shifts
Shipping
4.5 days
67 min
Lead Time
=23.6 days
Touch Time
= 89 min
2 days
4 min
Flow of Value
OTD, Lead Time
Who is setting the pace?

What is the pitch time?
Suppliers
90/60/30 day
Forecasts
Production
Control
6 WEEK
Forecast
MRP
Order Entry
WEEKLY SCHEDULE
Orders/day
= 36
Queue
= 1.5 Days
Lead Time - 34 Days
Customer
Demand = 45 per day

2 shifts
Takt Time
= 18.2 Minutes
= 3 Days
1X
Daily
I
Coils
5 days
Stamping
S. Weld # 1
342
CT=1sec
Co=1 hr.
Uptime=85%
1 shift
5 days
Assembly
Test
I
81
CT=3 min
Co=10 min.
Uptime=70%
1 shift
7.6 days
1 sec
1.8 days
3 min
90
202
CT= 67 min
Co= 23 min
CT= 4 min
Co=0
FTY = 67%
2 shifts
Uptime=100%
2 shifts
2.7 days
15 min
122
CT= 15 min
Co=0 min.
Uptime=100%
2 shifts
Shipping
4.5 days
67 min
Lead Time
=23.6 days
Touch Time
= 89 min
2 days
4 min

Understanding the Value Stream in the Office
o Office functions support many shop floor value streams purchasing, payroll
o The rate of customer demand is often hard to see
o Inventory can be forms, paperwork, in-baskets, out-baskets,
voicemail, email
o Cycles of activity often are random - little standard work
o Confusion about who the customer is and what is value
o However, the OBJECTIVE is to ELIMINATE WASTE!
316

The Office Current State
o Define boundaries of your value stream
o There has to be a product or service to follow - like a
purchase order or payroll document - otherwise use a
normal flowchart
o What capability do you provide?
o Is the demand stable?
If not, what is the range ?
o What is the customers expectation of performance?
317

Constructing Office Current State
o Waiting should be recorded if there is no apparent end takt
time and the next process is far away
o Use Cycle Time of customer process to understand total
lead time
Outbox
Waiting
Inbox
1 Day
1/2 Day at
meeting
1 Day
318

State Street
Assembly
Supplier
Make notes where you see

obvious Waste on the Map
Poor workplace
Duplication:
Organization
Many Signatures
State Street
Assembly
Customer
Re-enter Data:
Paper Form Rework:
Legacy System
Incomplete Data
319

State Street
Assembly
Customer
Michigan Steel
Customer
Company
EmailO
rder
Engineering
database
Central
database
Phone
Clarification
Phone
Clarification
Email
Quote
Design
Log file
Phone
Clarification
Email /
voicemail
I
Order Outbox Waiting

Receipt
W
4 Estimates Meeting
.5 hours 3 hours
.5 hr
2 files 1/2 Day at

1 Day meeting
1 sales Rep
3 hr
1 Day .5 Day
10 min
Inbox
I
2 files
1 Day
Waiting
Eng.
Review
w
1 Eng.
1 Day
Inbox
I
1/2 Day
7 files
Purchasing 1 Day
quote
BOM Outbox Waiting

Validation
I
w
1 Sales Rep
.5 Day 1 Day
4 hrs
3 files
1 Day
Email Clarification
Inbox
Manf.
Eng.
1/2 Day 10 files

Customer 1 Day
1 Eng.
1 Day .5 Day 1 Day
3 hrs
Outbox Waiting
w
4 files Clarify
1 Day 1 Day
Inbox
Quote
Prep
I
2 files
1 Day
1 sales Rep
1 Day 1 Day 1 Day
60 min
Total 10 Days
20 min
Total CT 8 hrs 20 min

Draw the Future State Map
(STEP 6)
o Designing a Lean Flow
You always need a future state
Use pencil, update regularly, 70%
correct is fine
Basis for work plan - blueprint
Begin by drawing a current state
1st iteration assumes using
existing equipment, only minor
purchases
Use the list of future state
questions
Product Family
Current State
Drawing
Future State
Drawing
Plan &
Implementation
321

Future State Map - Question 1 (STEP 6)
o What is the takt time for the chosen product family?
450 minutes per shift / 9 units per shift= 50 minutes
However this includes no time for equipment downtime,
changeovers, or scrap and rework.
Until these are under control you can decide to produce faster
than Takt
Its purpose is to synchronize the pace of production with the
pace of sales
A diagnostic tool to test for overproduction
322

o Should you build to a finished goods Supermarket or
directly to shipping?
Building directly to shipping is ideal.
If the competitive lead time is less than your process lead time,
you will need a finished goods supermarket.
If customer demand rises and falls unpredictably it might be
better to use a finished goods Supermarket.
The cost of holding some finished goods may well be less than
the cost of extra capacity
323

o Where can you introduce continuous flow?
Produce one piece at a time
Reduce batch sizes and implement material replenishment.
324

o Where will you need to use supermarket pull systems?
Batching might be necessary
Where changeover is necessary due to very fast or slow cycle

times and multiple product families.
Long supply chainOne piece at a time is not realistic
Some processes have too much lead time or too unreliable to
couple directly to other processes in a continuous flow.
In these cases install a Supermarket based pull system

Supermarkets are used when continuous flow is interrupted
Remember, flow is better. There is a cost associated with

a supermarket
325

o At what single point will you schedule production?
This is called the pacemaker process.
How you control the production here sets the pace for all of the
upstream processes.
Any process after the pacemaker process must be continuousflow ( no Supermarkets or pulls downstream of the pacemaker
process).
Therefore, the pacemaker process is frequently the most
downstream continuous-flow process in the value stream.
326

o How will you level the production mix at the pacemaker
process?
Distribute the production of different products evenly over time
at the pacemaker process.
Grouping products makes it difficult to serve customers who
need something different than the batch being produced at that
time.
On-time deliveries suffer. A part that is due tomorrow might
not make it because it has to wait for the long batches to
complete.
The icon for leveling is OXOX
327

o What increment of work will you consistently release
and take away at the pacemaker process?
Start by releasing small consistent amounts at the
pacemaker process, while simultaneously taking away equal
amounts of finished goods or paced withdrawal
This consistent increment of work is called the PITCH
Can be based on packout container quantity

Establishes interval for monitoring status of production
The key is to create a predictable flow which enables you to

act quickly to problems.
328

Future State Map - Question 7 - Heijunka Box
o A tool used to level production
o A load leveling box with a column for Kanban slots for each
PITCH interval and a row of Kanban slots for each product
type.
o The box indicates both the quantity produced and the time
allocated to make it (based on TAKT time)
One row per
product type
Kanbans
responded
to from left
to right at
pitch
increments
8
Type
A
8.10
8.20
Kanban
card A
Type
B
Type
C
8.30
8.40
8.50
Kanban
card A
Kanban
card B
9.00
9.10
Kanban
card A
Kanban
card B
Kanban
card C
Kanban
card B
Kanban
card C
One column p/pitch

pitch=10 min.
329

Future State Map - Question 7 - Example
8
Type
A
8.10
8.20
Kanban
card A
Type
Type
8.50
9.00
Kanban
card B
Kanban
card C
Drop Kanban
9.10
Kanban
card A
Kanban
card B
Kanban
card C
at process
8.40
Kanban
card A
Kanban
card B
8.30
Customer
requirement
Pick up
next
kanban
Pacemaker
process
Pick up one
finished
quantity
Move finished
parts to
supermarket
Shipping

o What process improvements will be necessary for the
value stream to flow as your Future State Map
specifies?
If you dont answer this, youve just been wasting time.
Improvements to:
Equipment
Procedures
Changeover time
Yield
Cycle time
331

Future State Map 1st View (STEP 6)
o First View of the Future-State Map showing:
Takt Time,
Weld/ Assembly Cell
and the Finished-Goods Supermarket
332

o Notice that on this Future-State Map the four welding and
assembly process boxes have been combined into one
process box to indicate the continuous flow.
State St.
Assembly
o A small sketch of a cell inside the process box also

indicates the cellular manufacturing concept.
18,400 pcs/mo
-12,000 L
-6,400 R
Tray=20 pcs.
2 Shifts
Stamping
Weld& Assy
1X
Daily
L
Takt=60 sec.
C/T=56 sec.
Shipping
Staging
C/O= 0
Uptime=100%l
2 shifts
333

Future State Map 2nd View (STEP 6)
o Second View of the Future-State Map showing:
Stamping
and the Raw Material Supermarkets
334

o The stamping process needs to produce batches larger than
60 pieces.
o A trigger point is set up in the stamping supermarket which
includes changeover, replenishment delay and other
stamping problems. In this case stamping will keep 1.5 days
of parts in its supermarket
o A signal Kanban is sent to the stamping process whenever
the number of bins remaining drops to a trigger ( minimum )
level
Signal or Batch kanban

335

o What about Raw Material?
To build a plant level value stream, the Future State must also
show a third supermarket at the receiving dock which holds
coils of steel
The company can attach an internal withdrawal Kanban to
each coil and send these Kanbans to their own production
control department whenever another coil is used.
Production control can order coils based on their actual usage

instead of a best guess determined by MRP
The cards are then returned to the receiving dock as a signal
for shipments that are due.
Milk runs for daily deliveries should be considered at this point
336

6-WEEK
Forecast
State St.
Assembly
State St.
Assembly
PRODUCTION
CONTROL
Daily
Order
18,400 pcs/mo
coil
coil
-12,000 L
-6,400 R
Tray=20 pcs.
1X
Daily
2 Shifts
batch
20
bin
Coils
Weld& Assy
Stamping
1X
Daily
L
(at the press)
1.5 days
Takt=60 sec.
C/T=56 sec.
C/O= 0
Uptime=100%l
2 shifts
Shipping
Staging

Future State Map 3rd View (STEP 6)
o Third View of the Future-State Map showing:
Load Leveling,
Changeovers,
and Timeline
338

The material handler pulls the Kanbans out of the
leveling box one-by-one at the PITCH increment
and moves trays of brackets from the finished
goods supermarket to the staging area one-byone according to the withdrawal Kanban.
Production
Control
Daily Orders
Load Leveling Box
bin
bin
bin
OXOX
WELD&ASSY
bin
Shipping
Staging
339

Future State Map Complete View (STEP 6)
6-WEEK
Forecast
State St.
Assembly
90/60/30 day
Forecasts
PRODUCTION
CONTROL
State St.
Assembly
Daily
Order
Daily
Order
18,400 pcs/mo
coil
-12,000 L
coil
Daily order
-6,400 R
Tray=20 pcs.
20
1X
Daily
20
batch
OXOX
20
bin
2 Shifts
20
Coils
Weld& Assy
Stamping
change
over
EPE= 1 shift.
EPE <10 min..
(at the press)
1.5 days
1.5 days
1X
Daily
Welder
uptime
Takt=60 sec.
C/T=56 sec.
C/O= 0
Uptime=100%l
2 shifts
Staging
Weld
change
over
Shipping
Production Lead-time= 4.5 days

2 days
1 day
1 sec.
168 sec
Processing Time= 169sec

Generate a Value Stream Plan (STEP 7)
o Create the yearly Value Stream Plan
Tie it to business objectives
Relate the Future State Map to your layout
What to do, by when, by whom
o Fix the obvious

Broken equipment, needed maintenance
Purchase small tools, replace home-made fixtures
o Do 5S
o Break the implementation into steps
Break your future state into loops
Each loop contains the flow up to and including a
supermarket
341
Value Stream Loops (STEP 7)

Value Stream Loops (STEP 7)
Supplier Loop
Stamping
Loop
Pacemaker Loop
Example: Value Stream Plan (Step 7)

Start Making the Improvements (STEP 8)
o Make continuous Value Stream Improvement the
responsibility of management
o Dont wait to get your future state map perfect
o The main point is ACHIEVING the future state
344

Conduct Value Stream Reviews (STEP 9)
o Again, Make continuous Value Stream Improvement the
responsibility of management
o Conduct regular Value Stream Reviews while walking the
floor
Value Stream Manager and Plant Manager
Focus on obstacles to implementation
345
Example: Value Stream Review (Step 9)
Assy
Stamping
Coils
Suggestions:
- Review walking the flow
- Concentrate on the problems

Repeat the Cycle (STEP 10)
o Keep working for PERFECTION
347

What Can Be Achieved?
o 75% of wasted steps eliminated
o Throughput time shrinks to less than 10% of current state
time
o Demand amplification is eliminated
o Quality higher and consistent from start to finish

o Transport links and information needs shrink dramatically
348

Concluding Comments
o A future state cant be implemented all at once
o Kaizen events help work towards the future state
o Value Stream Mapping:
Helps you visualize more than a single process level

Links the material and information flows
Provides a common language
Provides a blueprint for implementation
Can be more useful than quantitative tools
Ties together lean concepts and techniques
349
Lean Management
Implementation Methodology
Select Value Streams
for the year
Develop Rapid
Improvement Plan
RIP consists of three
types of events
Rapid Improvement
Events (RIE)
Executive Planning
Session (EPS)
Value Stream
Analysis (VSA)
Organization
Assessment
Rapid
Improvement Plan
(RIP)
Projects
Just-Do-Its
350
Executive Planning Session (EPS)

In this session:
o Success is defined in the eyes of the Executive
Leadership.
o Level of commitment and resources required to
achieve successful Lean implementation effort are
identified.
These sessions:
o Can take up to 2 days.
o Conducted with Executive Leadership, Lean
Deployment Team members, and a consultant.
351
Executive Planning Session

(EPS) (contd)
The goal of this session is:
o To establish strategic direction including
alignment with organizations strategy.
o Assess change readiness.
o Select best value stream(s) for initial
engagement.
Prior to EPS, all participants should be

trained on process improvement
fundamentals and tools.
352
Executive Planning Session

(EPS) (contd)
PICK Chart tool can be one of the ways to classify
the Value Streams and select the ones for
assessment.
353
Value Stream Analysis (VSA)

Once Value Stream(s) is selected, the next
step is to do Value Stream Analysis.
Value Stream Analysis:
o Is typically done in 3-5 days.
o Team comprised of organizations leadership,
stakeholders, Lean deployment team, and a
consultant.
354
Value Stream Analysis (VSA) (contd)

VSA process:
o Creating current state map of the Value Stream
o Analyzing the current state to identify sources of
waste
o Documenting the baseline conditions
o Identifying improvement metrics
o Creating future state map
o Creating a Rapid Improvement Plan (RIP) to go
from current to future state
355

Product/
Process

for the product or process
being worked on.
Current State
Map
Map and understand how

things currently operate.
Future State
Map
Design a lean flow with

stakeholders and process
participants.
Improvement
Plan
Define actions and drive

toward the future state
The goal of VSAs!
Team is Empowered to Define the Future State

& Methodology to Achieve it
356

RIP is usually a time-phased collection of:
o Kaizens or Rapid Improvement Events
(improvements which take less than 30 days to
complete)
o Six Sigmas or Projects (improvements which
take 4-6 months to complete)
o Just-Do-Its (immediate improvements once
implemented)
357

Rapid Improvement Events
Typically Kaizens
Action oriented
Activity is 3-5 days in length
7 week cycle (3 weeks prep, 1 week activity, 3
weeks follow up)
o Typically 4 Teams (6-8 people/team)
o 5S, Standard Work, Flow, and Pull
o The process is transformed during the event!
o
o
o
o
358

Projects
o
o
o
o
o
Typically Six Sigma projects

Analysis oriented
DMAIC process used
Complex problem
Typically 4-6 months in length
359

Just-Do-Its
o
o
o
o
o
Both the problem and the solution are apparent

Minimal or no capital expenditure
Low risk
Typically implemented within 1-2 weeks
Examples:
Elimination of Redundant Reviews/Approvals, Testing

Training on Best Practices
Supplier Price Reduction
Part Substitution
360
Organization Assessment
It is a comprehensive examination of results
achieved, Lean deployment, and Lean
maturity of the organization.
In all cases, Master Black Belt guides site

Leadership and the Lean Deployment Team
through the examination process until the
team gains self sufficiency in sustaining
results and in conducting self-assessment.
361
Module 4
Lean Cultural
Issues and
Kaizen
362
The Culture of Lean Management

Lean management is not only a collection of
tools but a fundamental cultural change that
focuses on people.
363

Organizational culture comprises of the:
o Day-to-day experience of our team members.
o Current behavior.
In Lean Management culture, the day-to-day

experience and behavior includes the following:
o
o
o
o
o
Plan-Do-Check-Act (PDCA).
Standardization.
Visual Management.
Teamwork.
Paradox.
364

PDCA is an improvement cycle based on the scientific method
of proposing a change in a process, implementing the change,
measuring the results, and taking appropriate action.
The PDCA cycle has four stages:
o Plan: Determine goals for a process and needed changes to
achieve them.
o Do: Implement the changes.
o Check: Evaluate the results in terms of performance.
o Act: Standardize and stabilize the change or begin the cycle
again, depending on the results.
365

PDCA is the core activity of management.
o A managers job is to practice and teach PDCA.
o The best managers practice PDCA on daily basis.
o PDCA thinking must inform all our activities from
day-to-day kaizen, to problem solving, to strategic
planning.
366

Standardization
o Standards are created to be improved.
o Standards make abnormalities obvious.
Visual Management means more pictures

and fewer words. (A workplace that talks to
you)
367

Teamwork All for one and one for all
o Lean Management Culture promotes:
Safety first.
Employment security.
Same uniforms for all (even executives).
No executive offices and no walls.
No executive dining rooms or parking spaces.
Genchi Genbutsu, the Go and see for yourself spirit.
368

Paradox
o Lean Management Culture is full of paradox and
therefore endlessly engaging. Here are few
examples:
Jidoka. Stop production so that production never has to
stop.
Standards change all the time.
One at a time production is more effective than batch
production.
Do not make something unless a customer orders it.
Team members, not industrial engineers, develop
standardized work.
Seek perfection, even though we know we will never
achieve it.
369

How does Lean Management Culture Feel?
o
o
o
o
Disciplined
Freewheeling
Warm
Determined
PDCA provides scientific discipline and the

freewheeling spirit of inquiry that asks: How can we
do this better?
Respect for people creates pleasing warmth.
370
The Need for Kaizen

Lean thrives on a specific culture as previously clarified.
Lean nature has some complex details which refrains
many people from using it.
Lean is Japanese and is based on the Japanese culture.
The west created TQM which is a great culture builder.

For all of the above reasons Kaizen was created to
help implement lean.
371
Historical Introduction
Kaizen Has Japanese roots
The main founders Kaizen and Lean
manufacturing are Taiichi Ohno & Shigeo
Shingo
The person who is known for the global

deployment is Masaaki Iamai
372
Masaaki Imai is the
author of two
popular books
Kaizen 1984
Gemba Kaizen
1997
373
Basis of Japanese Management:
First: Group Decision Making
Second: Hiring for life
Third: Continuous learning and training
Fourth: Parental Management
374
Kaizen came out at a time when other related
ideas were popular:
Total Quality Management (TQM)
Lean Management
Creative Thinking
375
We breath
Kaizen at
Toyota
Toyota President
376
Kaizen
('kai') KAI - change

action to correct
('zen') ZEN - good, for better
377
Kaizen
A culture of sustained continuous improvement
Eliminate waste in systems and processes
Begins & ends with people

Involved leadership guidance
Continuously improve: quality, low cost, & delivery
Transforms companies to 'Superior Competitors'
378
Exercise 9:
Lets Break the OK
379
Gemba Kaizen
Gemba means: The place where

important matters take place (work
place) (workplace)
The two words can be translated to:

Managing and improving process from
the location of the process.
380
Continuous Improvements with Kaizen

Change is incorporated through:
Continuous incremental
improvements
Full involvement of every one in the

establishment in projects taking
place in Gemba
Identifying and killing all kinds of

waste (MUDA)
381

Any Process = Activities + Muda
Any Activity = Value added step (VA)+
None value added steps
(NVA)
NVA
NVA but necessary
NVA and not

necessary
382

Results of Applying Kaizen:
%70 -50 Reduction in process time
%40 -20 increased efficiency
%40 -20 cost reduction
%60 -40 reduction in mistakes
%50 reduction in area used
Large improvement in employee morale
Employee empowerment
Discovery of new talents and skills
383
Why Use Kaizen?

To solve problems
To eliminate waste (Muda)
o Transportation, Inventory, Motion,
Waiting, Over-production, Overprocessing, Defects
Create ownership and empowerment

Support lean thinking
384
Two Types of Kaizen Activities
Kaizen: Continuous Improvements

Kaikaku: Kaizen Event: Kaizen Blitz
Kaizen: Small / incremental change
Kaikaku: Radical / fundamental change
385
Two Types of Kaizen Activities

Kaizen
Changes are small in nature

Resistance is low
Benefits is a long term type
Benefits are little each time
Continuous process
Involves every one
Implemented by all
organizations
Kaikaku
Changes are dramatic

Resistance is high
Benefits is a felt in short term
Benefits are huge
Only done once in most
cases
Involves a structured team
Implemented by
organizations in deep trouble
Inexpensive
Can be expensive
386
Tools for Kaizen

1. Quality, Cost, Delivery (OTD)
2. Lead Times
3. Stock Turns
4. Working Capital
5. Waste %
6. Quality Indices
7. Time to Market
8. Net Tangible Value
9. ROI, ROA, etc.
387
388
Pareto Diagram
389
Simple Process Flow Chart
Material from
Supplier
No,
continue
Inspect
for Defects
Defects
found?
Yes
Return
materials
390
Process Map Example
391
Check Sheets
392
Fishbone Chart - Problems

with Airline Customer Service
393
Histogram
Graphically shows the process capability and, if
desired, the relationship to the specifications
and the nominal
394
Scatter Diagram
The simplest way to determine if a cause
and-effect relationship exists between two
variables
395
Process Control Chart

Plot of Sample Data Over Time
Sample Value
80
Sample
Value
UCL
60
40
Average
20
LCL
0
1
13
17
21
Time
396
Patterns to Look for in

Control Charts
397
Benchmarking
Benchmarking concept
What are others
Performance levels?
How did they get there?
What is our
Performance level?
How do we do it?
Creative
Adaptation
Breakthrough
Performance
398
Brainstorming
Two rules:
1- No Judgment on any idea
2- We care about quantity not quality of ideas
399
Nominal Group Technique

The nominal group technique (NGT) tries to bring people together to
solve problems but limits initial interaction among them:
A group of five to nine individuals are gathered for idea generation
A problem is presented
Before any discussion is held, all members create ideas silently and
individually onto a sheet of paper
The leader then requests an idea from each member in sequence.
Each idea is recorded until ideas are exhausted
Like brainstorming, no discussion is allowed at this point
After the exhaustion of ideas, the clarification, support and evaluation of
ideas is permitted. Comments on the ideas of others is encouraged
Voting for best solution is then conducted. Several rounds of voting may
be needed before a best idea is found.
400
Affinity Diagram
401
Tree Diagram
402
Value Stream Map
403
Force Field Analysis
404
Quality Circles
Group of 6-12 employees from same
work area
Meet regularly to solve work-related
problems
o 4 hours/month
Facilitator trains
& helps with
meetings
405
Kaizen Implementation
406
Kaizen Cycle
Start Here
Do It Again
Document
Reality
Celebrate
Identify
Waste
Make this
the
Standard
Plan
Countermeasures
Reality
Check
Measure
Results
KaizenVerify
Make
Changes
Change
407
Six Basic Rules of Kaizen

1. Respect others: Particularly the local operators, you are in
their living room
2. Document reality: If you make changes based on data, the
data should be based on reality

3. Do your share: Everyone has to contribute
4. Try something new: Be open minded - try it instead of
racking your brain for reasons why it wont work (trystorming)
5. Ask why (the 5 whys): Gain complete understanding,
assume nothing
6. Be safe / Think safe: Both in your actions and in what you

implement
408
Dos and Dont of Kaizen

Do be open minded to all
approaches.
Do try as many ideas as
possible. A minimum of
three.
Do as many observations of
reality as possible (10).
Do include one person who
is convinced it cant be done.
Do make sure management
is committed to resolving the
issue and supporting the
team.
Dont utilize to implement

your solution.
Dont just sit around and
brainstorm or justify the
current way things are done.
Dont assume you know the
problem.
Dont put more than one of
these people on the team.
Dont hold a Kaizen to
resolve an issue that is not
driving a business goal.
409
Employees Suggestions
410
What is a Kaizen Event (Kaikaku)?

A Kaizen event is a focused effort used to make a leap. A multi-functional
team is formed and for a 3-5 day period they focus on resolving a problem.
It is characterized by the following:

A short burst of intense activity & effort (3 to 5 days only)
Biased toward action over analysis

Focused on improving the value stream and achieving flow
Driven to resolving a specific problem or achieving a specific goal
Focused on a specific area or process (either plant or office)
Managed with daily reviews of progress
Aimed at achieving specific improvements in a short time
Managed to resolution
During a kaizen event the team will:

Identify problems & areas of waste
Ask Why?, Why?, Why?, Why?, Why?, Why?
Figure out ways to fix the problem or eliminate the waste
Implement solutions
411
Steps of Kaizen Event (Kaikaku)

10. Do It
Again
1. Document
Reality
2. Identify
Waste
3. Plan
Countermeasures
9. Celebrate
8. Make this
the Standard
Measurable,
Sustainable
Improvement to Key
Business Performance
Metrics.
A new way of life!
7. Measure
Results
6. Verify Change
4. Reality
Check
5. Make Changes
412
Business Process Improvement Roadmap

2.
OEM
Product Selection
& Ordering
Product Selection
Stocking POU
Customer Assistance
Ordering/Quoting
Specfication
Inside Sales Plant C/S Engineering Marketing
50% Cycle Time Reduction

100% On Time
Defect Free
3. Other End User

Product Selection
& Ordering
Customer Assistance
Ordering/Quoting
Specfication
Specfications, Bill of
Materials, Routings,
Machine Software
Order Collection
Order Entry
Customer Assistance
Order Collection
Order Entry
Customer Assistance
Order Management
Customer Information
Sales & Shipping
Order Management
Customer Information
Sales & Shipping
Manuf. & Mfg Systems

Assembly
Change- OppourProcess ability

tunity Priority
Establish Process Boundaries
2. Other End User

Product Selection
& Ordering
Field Sales Distributor
Set Objectives
Prioritize Opportunities
Document Reality
Business Process Value Stream Map

1. Selected User
Product Selection
& Ordering
RGOS
Process Flow Analysis
Pareto Analysis
3.
Define and Scope Project

End User
Identify Business Opportunities
OMS
1.
Planning/Purchasing
MPS/MRP/CMMS
Production/Material
Control/Cost/BOM
Ship to
Whse
Ship Direct
Shop Order Mg
Labor & Cost, Inv
ID, MFG, Assem
8.
Measure Progress & Sustain Gains
9.
Communicate Results & Recognize Team
4.
Perform Analysis and Identify Waste
Setup Checklist
Format hard drive
Create boot disk
Edit BIOS
Boot from CDrom
Install Windows
Set date and time
Measure Progress
7.
Week 1 Week 2 Week 3
Correlation and
Regression
6.
Plan Countermeasures
Week 1
M T WT F M T WT F M T WT F
Week 2
Week 3
5.
Rolled Throughput Yield

Goal
Project Phase I
Database Debug
Project Phase II
Beta Test Period
Project Phase III
Team Kaizen
Project Management - Gantt Chart
Cause & Effect Diagram
Outline Desired Results
M T W T F M T W T F M T W T F
Development
Refine Schedules
Error Proofing
Refine and Implement
* *
*
*
* * *
Agree on Goals
Define Performance
Metrics
Change Strategy / Management
Always stress the application of 5 S
Use Visual Management / Poke Yoke / Error

Proof
When making a mistake fix it immediately
Overcome the notion we always did it this way
414
Change Strategy / Management
Always listen to what others are saying
Stress the use of Forms in every thing
Use an Internal Auditor
415
Importance of Having Internal Auditor
He acts as a police officer to find who is not

following the process correctly.
He acts as part of the solution not part of the

problem.
He ensures that continuous improvement will

be continuous.
416

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Lean Management - EnGLISH

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Dr. Abdallah Abdallah, Ph.D, CSSMBB,

What do you expect to get out

Do not know what is Lean

Ive heard about Lean

Ive read about Lean

Ive attended some Lean training

Ive used some Lean tools

Ive lots of experience with Lean

Performance Improvement Basics

3. Those who work on performance improvements

Performance Improvement Basics

4. The first step in any improvement effort is an

Look at the following

To build on the previous

What is Lean Management?

What is Lean Management? (contd)

What is Lean Management? (contd)

Lean Bodies Are Better

Toyota has been making profit for almost 70

Out of the Crisis

Eiji Toyoda, Taiichi Ohno

Jones & Womack,

The Machine That

Benefits of Lean Management

Reduces Operating Costs

Mass vs. Lean Production

Acceptable Quality Level

Perfect First-Time Quality

Taylorism (Workers told what

Inflexible Production Systems

Flexible Production Systems

If it isn't broke, dont fix it!

From Muda To Shinrai

The 3 Ms of Lean Management

The 3 Ms of Lean Management (contd)

The 3 Ms of Lean Management (contd)

95% NonValue Added

Identifying Non-Value Added

If not, then it is non-value added:

The Seven Deadly Wastes

Processing more than necessary

Creating too much material

Defects and Errors requiring rework.

Work with no immediate customer, either internal or

Unnecessary process steps.

Unnecessary movement of personnel or materials.

Waiting by employees as unfinished work in an

Design of product or processes that do not meet

Why Inventory is Dangerous?

New orders from customers cannot be started

Why Inventory is Dangerous? (contd)

Lean Management Principles

Lean Management Principles (contd)

Lean Management Principles (contd)

Lean Management Principles (contd)

Lean Management Principles (contd)

Lean Management Principles (contd)

Minimizing Waste By Using

Enter emergency room, approach patient window

Nurse escorts patient to ER triage room

Nurse inspects injury

Return to waiting room

Nurse takes patient to radiology