LEAN Management Basics

LEAN MANAGEMENT
BASICS
2013 ICOPE - All rights reserved.
OVERVIEW ON LEAN MANAGEMENT

What is Lean
Why to use Lean
Where to use Lean
When to use Lean
5S
8 Wastes
Standard work
Visual Management
INTRODUCTION TO THE PROGRAM PART 2

LEAN MANAGEMENT
IMPROVE PHASE PART 6

WHAT IS LEAN MANAGEMENT

LEAN Management:
It is a customer focussed waste elimination method that makes
the process and there by organization lean (eliminating Fat)
In a Lean company, employees always look to improve their skills and
improve the processes. Products and Services are driven in right
amounts, to right location, at the right time and in the right condition.
Lean Thinking
The Goal of Lean Thinking is the creation of a continuous stream
which delivers customer value with the least waste of resources
within the shortest possible time.
The Building blocks of Lean Management are 5s, 8 Wastes, Visual
Management and Standardised work
LEAN MANAGEMENT
LEAN Management

WHY LEAN

WHY TO USE LEAN BENEFITS
Individual
Organizational
Develops Leadership
thinking
Improved decision making
skills
Ability to use problem
solving tools and
techniques
A better You as an
Individual / Manager
Improved quality of product

or service
Reduced process cycle time
Development of staff skills
Common language
throughout the organisation

WHERE TO USE LEAN

WHERE TO USE LEAN

TYPE OF
INDUSTRIES
Manufacturi
ng
Teleco
m
Banking &
Insurance
Healthc
are
Educati
on
Hospitali
ty
Airlin
es
Constructi
Constructi
on
on
Softwa
re
Space Research &
Military
Any
Any industry
industry where
where (internal/external)
(internal/external) CUSTOMER
CUSTOMER
is
involved
is involved
TYPE OF
FUNCTION
Customer
Service
Producti
on
Administrati
on &
Sales
Marketing
Finan
ce
Research
&
Development
Operatio
ns &
Training
Development
Human
Resource
Management
IT
Qualit
y
Any function where (internal/external)
Any function where (internal/external)

CUSTOMER is involved

WHEN TO USE LEAN

WHEN TO USE LEAN

UNKNOWN
HIGH
LEAN
SIX
SIGMA
DO IT
YOURSE
LF
ASK
EXPERT
IMPACT
KNOWN
LOW
CAUSES

5S

5S
What is 5S:
5S is a methodology which helps us to better organise our
workplace in order to improve safety/controls and productivity
5S is the foundation on which to build a leaner organisation
Where 5S is used?
At any work station or work place. Traditionally used on the
shop floor, but equally relevant in office environments,
service, on-site works and even computer file storage.

5S Cycle
5S Cycle:
Sort
Seri
Sustain
Shitsuke
Straighte
n
Seiton
Standardi
se
Shine
Seiso
Seiketsu
5S
5S
Sort
Straighten
Shine
Description
Remove all items from the work area

Identify all items required to add value at the workstation
Eliminate duplicates, infrequently used items, and trash
Identify these items as waste or not critical with red tags
Store red tag items in a dedicated Red Items Area
Take the equipment required in the workstation area and organize it

based on frequency and point of use
Assign locations for all equipment, WIP (Work In Progress), and raw
materials and include minimum / maximum levels to be held
Consider ease of reach, identification and proximity to work surface
Its all about cleaning. Clean the floors, walls and equipment
Ensure all items are restored to their designated place
Cleaning becomes part of daily tasks and responsibilities
Clear schedules and standards are developed and worked to
Ideas to reduce the need to clean are generated and actioned

5S
5S
Description
Standardize
Sustain
Standardize maintains the result of the prior three steps

Define standardized work, cleaning and organizational procedures
for the prior 3 Ss
Document the desired state of operations with pictures, short
instructions of 5S procedures and target KPIs
Clarifies who is responsible for each operation
Sustain aims to make the new standards and procedures, the new
habit The way we do things around here
Habits initially take time and effort to develop and maintain - cultural
change
Sustain, holds the other 4S together and embeds them into the
culture
Without a strong emphasis on Sustain, the new standards will lapse
and there will be slippage back to the old ways

5S
5S Table

5S - BENEFITS
Improved
Improved
Safety
Safety
Involves
Involves
Employees
Employees
in
in
improvem
improvem
ent
ent
Foundation
Foundation
to
to Lean
Lean
Organizati
Organizati
on
on
5
S
Improved
Improved
Productivit
Productivit
yy
Reduces
Reduces
Waste
Waste

8 WASTES

WASTE
VSM Key Terms:
Waste: Any activity that consumes time and resources
like manpower, machinery, money etc., and does not
contribute in meeting the customer requirements.
Types
of Wastes: There are
3 types of wastes
MUDA:
WASTE
MURI:
OVERBURDEN
MURA:
UNEVENNESS
ANALYSE PHASE PART 5

TYPES OF WASTES
VSM Key Terms:
Types of Wastes:
MUDA: Any activity in the process that does not add value. MUDA
is not creating value for the customer. In short:WASTE
MURA: Any variation leading to unbalanced situations. In
short:UNEVENNESS, inconsistent, irregular.
Mura exists when workflow is out of balance and workload is
inconsistent and not incompliance with the standard.
MURI: Any activity asking unreasonable stress or effort from
personnel, material or equipment. In short:OVERBURDEN
Muri means: a too heavy mental- or physical burden. For
machinery Muri means: expecting a machine to do more than it is
capable of or has been designed to do.
8 - DEADLY WASTES
Types of Muda (Wastes):
Muda is again classified in to 8 types as follows.
The popular acronym for the 8 wastes - DOWNTIME
Defects
Over Production
Waiting
Not using employee creativity
Transportation
Inventory
Motion
Extra Processing
8 - DEADLY WASTES
Waste Type
Defects
Over Production
Waiting
Not using employee

creativity
Transportation
Inventory
Motion
Extra Processing
Description
Any product or process not meeting the customer
requirement
Making something before it is truly needed
Time when work-in-process is waiting for the next step in
production
Not effectively using the collective talents, skills and
knowledge of all employees and suppliers
Unnecessary movement of raw materials, work-in-process
or finished goods
Product (raw materials, work-in-process, or finished goods)
quantities that go beyond supporting the immediate need
Unnecessary movement of people
More processing than is needed to produce what the
customer requires

8 WASTES - BENEFITS

VISUAL MANAGEMENT

VISUAL MANAGEMENT
What is Visual Management
Visual management is a method of creating an information-rich environment
by the use of visual signals, symbols and objects
It helps anybody in the workplace to know what the current status is and what
to do next
Where to use Visual Management
In any workplace where working to a standard is key
Use it in teams, to create shared understanding and build teamwork
How to use Visual Management:
Understand elements of the workplace & process that are key
Consider methods to make standards clear and easily understood
Use it in teams, to create shared understanding and build teamwork.
Build participation through shared information
Conveying Information - Work environment, safety, operations, storage, quality,
equipment
Visual Displays - what, where, when, who and how
Visual Controls for controlling the process (e.g. action triggers)
VISUAL MANAGEMENT - GUIDELINES

Visual Management
Step
Understand the
standard process
Consider Visual
Displays
Description
Identify key characteristics of the standard process
Consider methods which communicate important

information, but do not control the process.
Consider what, when who, when and how.
Involve the team
Select clear simple visual displays
Consider Visual
Controls
Implement Visual
Management
Maintain & Review
Consider building visual controls into the process to ensure

that activities are performed according to standard
Consider what, when who, when and how
Involve the team
Select clear simple visual controls
Brief and action the team to implement the agreed visual

management
Continually monitor any visual displays and controls

Update all displays at agreed intervals
Review effectiveness and amend accordingly
VISUAL MANAGEMENT - EXAMPLES

Examples:

VISUAL MANAGEMENT - BENEFITS

STANDARD WORK
CONTROL PHASE PART 7

STANDARD WORK
What is Standard Work
A simple written description of the safest, highest quality, and
most efficient way known to perform a particular task, (i.e. a
checklist to lead someone through the task).
It describes the only acceptable way to do the process.
Expected to be continually improved
Includes the amount of time allotted to hand-off the task to the
next step of the process.
Focuses on the process, not the equipment or materials
Reduces variation, increases consistency
STANDARD WORK - STEPS

Steps for Creating Standard Work
1. Define the extent of the task for which you are creating standard work
(e.g. starts at ends at)
2. Determine the appropriate standard work requirements
Name of process
Author
Revision date
Task name
Work sequence (i.e checklist, procedure)
Time allotted for task next task in sequence
3. Gather best practices

4. Create the standard work document
5. Train the supervisor on the standard work
6. Train the employees to do the standard work
7. Run the process and observe the results
8. Make adjustments and modifications to the standard work
STANDARD WORK DOs & DONTs

DO:
DONTs:
Keep standard work simple
Put standard work in a desk drawer
Change processes without changing

standard work
Make it accessible
Include all information on one, easyto-read document
Create one standard work document
for each part of the process
Always look for ways to improve the

process.
Make standard work difficult to

change
Give up on standard work it can be
tough, but its very important

STANDARD WORK TEMPLATE

Template
Owner
Approved By
Revision Date
Process
Start Point
End Point
Task
Process steps

STANDARD WORK - BENEFITS

Thank you . . .


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LEAN MANAGEMENT

2013 ICOPE - All rights reserved.

OVERVIEW ON LEAN MANAGEMENT

INTRODUCTION TO THE PROGRAM PART 2

IMPROVE PHASE PART 6

WHAT IS LEAN MANAGEMENT

IMPROVE PHASE PART 6

IMPROVE PHASE PART 6

WHY TO USE LEAN BENEFITS

Improved quality of product

INTRODUCTION TO THE PROGRAM PART 2

WHERE TO USE LEAN

IMPROVE PHASE PART 6

WHERE TO USE LEAN

Any function where (internal/external)

INTRODUCTION TO THE PROGRAM PART 2

WHEN TO USE LEAN

IMPROVE PHASE PART 6

WHEN TO USE LEAN

INTRODUCTION TO THE PROGRAM PART 2

IMPROVE PHASE PART 6

IMPROVE PHASE PART 6

Remove all items from the work area

Take the equipment required in the workstation area and organize it

IMPROVE PHASE PART 6

Standardize maintains the result of the prior three steps

IMPROVE PHASE PART 6

IMPROVE PHASE PART 6

IMPROVE PHASE PART 6

IMPROVE PHASE PART 6

ANALYSE PHASE PART 5

Not using employee

ANALYSE PHASE PART 5

IMPROVE PHASE PART 6

IMPROVE PHASE PART 6

VISUAL MANAGEMENT - GUIDELINES

Identify key characteristics of the standard process

Consider methods which communicate important

Consider building visual controls into the process to ensure

Brief and action the team to implement the agreed visual

Continually monitor any visual displays and controls

VISUAL MANAGEMENT - EXAMPLES

IMPROVE PHASE PART 6

VISUAL MANAGEMENT - BENEFITS

IMPROVE PHASE PART 6

CONTROL PHASE PART 7

STANDARD WORK - STEPS

3. Gather best practices

STANDARD WORK DOs & DONTs

Keep standard work simple

Put standard work in a desk drawer

Change processes without changing

Always look for ways to improve the

Make standard work difficult to

CONTROL PHASE PART 7

STANDARD WORK TEMPLATE

CONTROL PHASE PART 7

STANDARD WORK - BENEFITS

IMPROVE PHASE PART 6

IMPROVE PHASE PART 6

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