Time Based Management

Business Process Kaizen

Standard Operations

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2006 TBM Consulting Group, Inc. All Rights Reserved. TBM Consulting Group, Inc. is the sole licensee of LeanSigma, a service mark of Maytag Corporation.

A Standard Operation Is...

The best combination of people and resources balanced to customer demand...

...using the minimum amount of people, space, materials, and equipment.

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2006 TBM Consulting Group, Inc. All Rights Reserved.

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Standardized Operations

Standard Operations deal with repeatable human work and

its interactions with machines and takt time

They represent the current best, easiest and safest way to

complete a process with the minimum resources

They should be continually revised through improvement

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Standardized Operations & Improvement

With standardized operations, variations from current best practices are easier to detect and improvements are locked in, setting a new baseline

S
S K K

S
S K K

Without standardization, improvements tend to become dissipated

K K

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Standard Operations
Why Implement Standard Operations?
To make it possible to identify and eliminate variations in
associates work

To sustain the gains achieved from past kaizen activities To provide a baseline for future kaizen activities

How Do You Use Standard Operations?

Document each standard process Display the documentation Ensure that all associates are trained
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A Standard Operation Is...

Pacing to takt time

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Takt Time

Net Operating Time/Perio d Takt Time Customer Requiremen ts/Period *

* Time periods must be consistent (shift, day, week )

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Takt Time Example

Net Operating Time Per Shift: Shift: 480 minutes Breaks: 2 @ 15 minutes = Cleanup: 1 @ 5 minutes = Net operating time per shift = Transactions # working days/month Units / day = 480 -30 -5 9,600 20

Customer Requirements:

Net Operating Time/Perio d Takt Time Customer Requiremen ts/Period *

For 1 shift / day: Takt Time =
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* Time periods are equal

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Takt Time vs. Cycle Time Bar Chart Before

Cycle Times # Operators = Takt Time
60 50

Takt Time = 50 sec

Time

40 30 20 10

Cycle Times = 150 sec

10

11

12

Operator #
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Approaches to Staffing

Fixed Customer Demand

60 50

Takt Time = 50 sec

Time

40 30 20 10

Associates

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Exercise Lean Processing Simulation

Calculate:
Takt time
30 pieces in 10 minutes Cycle time = 5 seconds / dot Template 1 = 12 dots Template 2 = 14 dots

Envelope = Equivalent to one dot

Optimal Staffing
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A Standard Operation Is...

Pacing to takt time Establishing work sequences Step 1 Step 2 Step 3

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A Work Sequence Is

A prescribed sequence of steps Assigned to a single associate Which is balanced to the takt time if appropriate

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Standard Operations Eliminate

MUDA Waste MURA Unevenness MURI - Overburden

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Standard Operations
Activity does not mean we are adding value Waste
Totally not needed for meeting the customers expectations

Examples:
Looking for information Waiting Opening envelopes Tracking Systems Crediting the customers
account
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Worker Motion

Necessary NonValue Added

Currently needed but of no value

Value Add
Necessary and needed for meeting the customers expectations

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A Standard Operation Is...

Pacing to takt time Establishing work sequences Step 1 Step 2 Step 3

WIP

WIP

PC

WIP

Establishing Standard Work-In-Process (WIP)

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Exercise
Please turn to the appendix at the end of this section and remove the sheet of paper printed with a grid Orient the paper in the landscape direction as shown below

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Answer

Find the Standard Work Sheet for the pig also in the
appendix

Refer to the steps and the diagram of the customers

desired pig on the Standard Work Sheet and draw a new pig on the grid paper

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Standard Work

What were the differences between the first and second pig? Give some examples of this happening at your company How can your company benefit from using standard work?

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Time Based Management

Where there is no standard, there can be no kaizen.

Taiichi Ohno

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2006 TBM Consulting Group, Inc. All Rights Reserved. TBM Consulting Group, Inc. is the sole licensee of LeanSigma, a service mark of Maytag Corporation.

Time Based Management

Lean Processing Simulation

Round 3

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2006 TBM Consulting Group, Inc. All Rights Reserved. TBM Consulting Group, Inc. is the sole licensee of LeanSigma, a service mark of Maytag Corporation.

Simulation Round 3: Lean Process

Improvement Goals:
Improve productivity by 50%
Reduce lead time by 25%

Eliminate all rework

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Simulation Round 3: Cellular Process

Round Conditions & Rules:
Concepts of customer demand and takt time should have been introduced (if
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using two mail deliveries with different volumes, 6min/demand and 4/min/demand) Cycle times should be calculated or estimated (approx 60 sec. per sheet) TT/cycle time bar chart used and optimal staffing calculated Can now change the layout for adjacent processes 12 minutes total time Batch size of 3 (or less) Move transactions in batches of 3 (or less) Mailroom personnel delivers 42 pcs. mail at the timekeepers signal (start) Completed Station work is given to the Mailroom personnel in batches of 3 or less Operator can perform multiple functions, however if applying dots, they still must move to that workstation no muti colored dot tables
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Simulation Round 3: Cellular Process

Process: Different colored dots cannot be at same table (represents
machine or equipment constraints) Batch size 3 (or less per team decision)

All mail delivered to first operator (Red) at designated times Operator applies dots and stages work for next operator If associates choose, QC may now be done by final dot operator
or package prep. All quality requirements still apply. Package prep places batches in envelope and delivers to mail room (or directly to customer) If mail room still exists, delivers completed batches to customer Accountant should record metrics on flip chart and keep time
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Round 3 Observations
Flow significantly improved
Pull established Work space reorganization key to establishing flow Building quality into the process key to flow as well

Can this process be improved further?

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