Professional Documents
Culture Documents
Advanced Lean
Agenda
Lean Overview ~ Recap.. Lean Methodology Lean Toolkit Lean Deployment Lean Resources
Advanced Lean
Lean History Lean Explained Lean Benefits Lean Usage Lean Basic Toolkit
Advanced Lean
Recap
Just-in-Time
Jidoka
Lean Thinking
A principle driven, tool based philosophy that focuses on eliminating waste so that all activities/steps add value from the customers perspective.
Recap
Higher Customer Satisfaction e )Offic Shorter Lead Time k(Bac ge Higher Flexibility aking c advanta M gi Higher Quality trate as Lower Costs Higher Employee Satisfaction
Lean Explained
What is Lean?
A strategy, philosophy, process and leadership approach for operating in a superior way. Results include: Reduced cycle times (product development and production) Increased quality Reduced costs and inventory Increased capacity potential Improved customer service
Recap
High levels of worker involvement, ownership and commitment Improved financial returns
Recap
Price = cost
Advanced Lean
Recap
Bigger profit
Advanced Lean
Lean Benefits
Cycle Time
Wait Time (non value add) Work Time (value add)
Recap
Before After
Productivity Same work completed in less time
Cost/Chaos
Customer satisfaction Profit Customer responsiveness Capacity Quality Cash flow On time delivery
Cycle time
Lean Usage
Lean vs. Six Sigma
Methodology Strengths
Recap
Define
Measure
Improve
Control
Six Sigma
Few Tools to Create Change in Critical Xs Many Tools for Driving Change Mixed Model Plan, Kan Ban, Visual Management
Lean
Lean Usage
When do I use Lean?
Six Sigma Project Hybrid
Recap
AWO
Effort
Effort
Time
Effort
Time
Time
Average ~ 4 Months
Average ~ 4 Months
Average ~ 1 Months
Lean Usage
Lean vs. Six Sigma?
Lean Six Sigma Simple or Wing to wing Complex and Focused
Identifies problems in the flow
Recap
Breadth Depth
Helps identify steps that dont add value and provides tools to eliminate them
Lean
Lean
Six Sigma
Six Sigma/Lean
Improving the capability can eliminate additional steps
Energizing Empowering Team work, Boundary less / Open mindset Passion for improvement Intuition / Action Customer focus
X
GE Values
Lean Usage
So, why do I need Lean?
Principle
Recap
New ways to think about problems New problem solving tools and concepts An improvement methodology focused on action
Toolkit
Process
Solutions
Simple Known
Just Do It!! Ask an Expert!!
Complex
Lean!!
Causes
Unknown
Six Sigma
Basic tools
Tool
Value Stream Mapping, other lean tools, etc.
Challenge
More waste reduction Real continuous flow Flexible workforce Less variance Less waste
Old situation
Issues
Inventory Waiting Defects No flow in the value stream.
Results
Reduction of waste Learned to see the flow Couple of improvements
Remaining Issues
No real continuous flow Still significant amount of waste.
Advanced Lean
Lean Toolkit
Recap
Level 1
Level 2
Reduce Variability Control the Process Value Stream Mapping
Standardized Work Intro to Continuous Flow Intro to Pull Production
Tool Sophistication
Time / Cultural Maturity Applying the right tools at the right stage
Advanced Lean
Recap
Benefits Realized
Recap
Advanced Lean
5S
Recap
Muda ~ 7 Wastes
The Seven Deadly WastesExamples Layouts of office, factory, etc. Incorrect
Motion
Recap
People
Waiting Overproducti on
Process
Product
Transportati on
Recap
Elimination > Eliminate the possibility of error Replacement > Substitute a more reliable process Facilitation > > Make work simpler to perform Detect the error at the defect source
BETTER
Use the highest level Use the highest level possible for the possible for the application. application.
It is good to do it right the first time; it is even better to make it impossible to do it wrong the first time.
Advanced Lean
Recap
Demonstrate how we manage our processes Consistent Communication Excite customers/ stakeholders walking the floor Visual Management Transparent view of Performance Shared Ownership Escalate abnormalities Quicker Resolution Decision making @ working level Empowerment Showcase Successes Create a sense of Pride
Seeing is Believing
Advanced Lean
Lean Overview Recap Lean Methodology Five Lean Principles Lean Advanced Toolkit Lean Deployment Lean Resources
Advanced Lean
LEAN OFFICE
LEAN ENTERPRISE
Map all of the steps value added & nonvalue addedthat bring a product of service to the customer
The complete elimination of waste so all activities create value for the customer
5 Work to Perfectio n
3 Establish Flow
The continuous movement of products, services and information from end to end through the process
Waste:
Activities that add no value, add cost and time Symptoms; need to find root causes and eliminate them 7 types of waste
Incidental Work
price?
quality? reliable delivery? rapid response to changing needs? fundamental definition of the product?
Incidental Work
Pure Waste
Pure Waste
Value
Pure Waste
Advanced Lean
Identify all of the steps currently required to move products from order to delivery Challenge every step: Why is this necessary? Would the customer think the product is worth less if this step could be left out? Many steps are only necessary because of the way firms are organized and previous decisions about assets and technologies
Value stream All activities, both value added and non-value added, required to bring a product (or provide a capability) from raw material (initialization) into the arm of the customer 3 Main Value Streams: 1. 2. Raw material to customer Concept to launch
3. and to cash Mapping the VS See the whole Orderimprove the system
Advanced Lean
sequence Require that every step in the process be: Capable right every time (6 Sigma) Available always able to run (TPM) Adequate with capacity to avoid bottlenecks and over capitalization (right-sized tools)
Flow appears impractical and illogical because we have been trained to think in terms of: departments, silos batches, queues efficiencies and backlogs
Batch Processing 1 minute per piece Continuous Flow Make One Move One
A
Advanced Lean
B
Cycle Time= 30++ Min (weeks)
A B C
Cycle Time= 12 Min
Through lead time compression & correct value specification, let customers get exactly whats wanted exactly when its wanted: At the pull of the customer/next process Using signals (kanbans)
Okay
supplier
customer
Use root cause analysis to solve problems promptly and permanently. Make objectives visible
Future State
Current State
Original State
Level 1
Level 2
Reduce Variability Control the Process Value Stream Mapping
Standardized Work Intro to Continuous Flow Intro to Pull Production
Tool Sophistication
Time / Cultural Maturity Applying the right tools at the right stage
Advanced Lean
V IS
IO N
ENTERPRISE
Advanced Lean
Forms the Blueprint for a information flow and the material it shows the linkage between theLean Implementation Plan flow
Advanced Lean
Future
Dash Lean Project Funnel
OPSI
Prodn Cont.
4 WEEK FORECAST 13 WEEK FORECAST
Forecast
Prodn Cont.
Sales
13 WEEK FORECAST
Daily Orders
GEC
Weekly Orders
HLA
MRP
CRC
Orders
Daily
Daily Orders
GEC
Weekly Orders
Prodn Cont.
HLA
MRP
CRC
Sales
Suppliers
Daily Schedule Portable Unit Monitors Patient Vitals Produce ~4,000/Qtr Over 30,000 Variations
Customer
Suppliers
Customer
Irregular
Create Supermarket
Irregular
Brds + RIP $3,300,000 19 Days Worth Assy WIP 210 Units $513,000 3 Days Worth
Brds +RIP $3,300,000 19 Days Worth Assy WIP 210 Units $513,000 3 Days Worth
Create Supermarket
$1,700,000 Too Much Worth 10 Days Inventory Test WIP+ FG
Create Supermarket
SMT
Raw Bds 8 WKS
HA 2
7 Days 3.5 Days 42 Min.
TEST 2
8 Days 24 Min.
ASSY 6
10 Days 30 Min.
TEST 4
10 Days 1020 Min.
CONF 2
5 Days 25 Min.
SHIP 6
30 Min. Non-Value Add 1,020 Hrs. (98% of Time) Value Add 20 Hrs. (2% of Time)
3
15 Min.
J IT
J IT
Heijunka, J IT
J IT
HA Batch 2
7 Days 42 Min.
TEST Batch 2
3.5 Days 24 Min. 8 Days
ASSY Batch 6
10 Days 30 Min.
TEST Batch 4
10 Days 1020 Min.
SHIP 6
30 Min. Non-Value Add 1,020 Hrs. (98% of Time) Value Add 20 Hrs. (2% of Time)
SMED
15 Min.
5. Eliminate waste by executing the plan 6. Expand the scope to other areas
L L
NL
EXTERNAL AGENCY
EXITS
V+,CPAC, ICBS
IWP
DMS
c
App req
FCS
Sentricx
Hold
4 Hours + 4 Mins
10+5+5 Mins
3-9 DAYS
10 + 4 Mins
5 - 11 DAYS
Wait Time
Advanced Lean
Advanced Lean
Standardized Work
CT
PA EN G
V IS
IO N
ENTERPRISE
Advanced Lean
Standard Work
Why have Standard Work? Elimination Waste
expose wastes
Advanced Lean
Standard Work
The combination of people, information and material to carry out an operation in the most efficient way
Office Processes
Often poorly defined Examples: Standardize Input Hand-off can create huge waiting time. Reduce time by standardization
Normal vs. Abnormal When normal and abnormal work activities are undifferentiated, waste almost inevitably occurs. Standard Work provides an efficient framework in which to determine when an abnormality has occurred so that it can be addressed.
Flow effect
Provide clarity about activities Reduce process variance Makes process reliable Exposes more waste
Identify Problems
Normal
Advanced Lean
vs.
Abnorm al
Why?
Standard Work
The devil is in the details. If you do not specify the standard, you allow wastes to occur that could be eliminated. But more important, it hinders learning and improvement in the organization. Specify content, sequence, timing and outcome to prevent and to expose waste. However, keep in mind that the details have to improve the flow of value as drawn in a value stream map. A perfect example of Standard Work
1. Each worker understands their task. 2. All tools and equipment are at arms length 3. Standard work has been practiced to perfection 4. Continuous observation and analysis drives continuous improvement Types of Waste Eliminated Searching Finding Selecting Transporting Waiting
Advanced Lean
Levels of Standardization
Advanced Lean
Standard Activity
Activity Customer
Standard Activity have to make the activity direct and unambiguous. On a detailed level tasks/decisions/etc should be specified. When designing a Standard Activity keep in mind the follow elements:
1. TAKT time 2. Work sequence 3. Standard work in process
Advanced Lean
Create Standard Work around Takt Time, keeping in mind the changes in Takt Time.
TAKT Time = the frequency at which a product or service must be competed in order to meet customer needs
Available Time
TAKT time formula:
Time 60
Takt Time
Office Processes
Check any time if youre on schedule: Daily 400 in-voices. It is 13:30, are we on schedule?
Required Output
(Customer or Forecasted Demand)
Person
Orders
Standard Work What has to be done? In what sequence? How much time can it take?
Work Sequence The order in which an person performs a series of repetitive tasks. It should be differentiated from the processing sequence, which is the order in which the part is processed.
Date
2/6/02
AMX
Operator
of
Date 2nd
X-Ray
Station 1 & 2
J. David
Shannon
80
Tubing
Supervisor
Operator
All Tubes
Step No.
Operation Name
Production Req'd
Takt/Rate Time
Travel
30
40
50
60
Travel Wait
~~~~~~~~
70
74
90
Orbital Weld
Flex
End Finish
End Finish
1 2 3 4 5 6
3 2 5 6 4
3 2 5 4 6 4 6
10
10
Weld
End Finish
Totals
40
30
Operation Time
T/T
Standard Work
Quality Check
27 - avg lot = 6
Turns
Total Manual & Travel TimeTakt/Rate Time Operator Man/Travel Time DPU's
100/Day
Standard Work Sheet and Standard Work/Combination Sheet defines the Work Sequence
Advanced Lean
Set a Standard WIP in your Cell, if applicable to your office process. The minimum Work in Process (WIP) required to perform repetitive operations, and maintain a continuous flow. Controls the in-process inventory to ensure an even and controlled process flow.
Standard Connection
Connection Customer
The connection between two activities (hand-offs) is one of the biggest causes of waste in the office. Make sure that to standardize the connect between activities. Direct and unambiguous specifying: people involved form and quantity to be provided way requests are made by each customer expected time in which the requests will be met (!) It creates a clear supplier-customer relationship. This will reduce the possibility for variance, which increases the quality standard in the office.
Advanced Lean
Standardization helps to create a flexible multi-disciplinary workforce. It is easy for a person to take over work from another person.
Advanced Lean
Abnormal
Advanced Lean
Kaizen
Standard Work provides a basis for improvement, because it exposes waste by abnormalities. These abnormalities are then subject to Kaizen Events to improve the processes.
Advanced Lean
Standard
Not Here
Summary
Standard Work prevents waste to occur. exposes waste and is the basis for continuous improvement. increases your flexibility. Two levels of Standardization 1. Standard Activity 2. Standard Connection Dont Manage a Standard Detect the Abnormality
Advanced Lean
V IS
IO N
ENTERPRISE
Advanced Lean
Cell
An arrangement of people, systems, items, and methods with the processing steps placed right next to each other (physically or digitally) in sequential order, through which parts are processed in a continuous flow.
Physical Cell
Incoming Forms
Output
Digital Cell
Advanced Lean
Batch Production
* Single Piece Flow productivity can be improved by balancing processes versus Takt Time ** Changeover time impact can be reduced by SMED or reducing changeover frequency, but, in this case, by increasing finished goods inventory.
Advanced Lean
Where to start?
Creating Single-piece-flow
1st time Value Stream Mapping Process Level Process Level Single Facility Single Facility (door-to-door) (door-to-door) Multiple Multiple Service Facilities Service Facilities
Prerequisites
Advanced Lean
Supplier
Customer
Yes
A main characteristic for office processes is that the customer of the process is often the supplier of the needed information for doing the whole value stream, as well. Therefore, the customer often has to wait for the whole lead time of the process.
Start within the area with the biggest potential of lead-time reduction.
No
Start with the pace-maker process. That are the process steps in the value stream that are closed to the customer.
Advanced Lean
Actual Work
Then analyze actual work to be done in the cell.
Work Distribution
Distribute the Work among the People
Actual Work
What are the work elements necessary to make one piece? What is the actual time required for each work element?
Work Distribution
How to use your people efficiently? How will you distribute the work among the people?
Advanced Lean
1. Flexibility
A&B
A&B
Advanced Lean
Item
A B C
X X X X
X X X
X X
X X
X X
After analyzing, you might come up with the conclusion to have step 5, 6 and 7 in one cell.
When required steps of the different products vary too much, then separate cells. For example, item C does not look to be suitable for the cell.
Advanced Lean
Time
Max. ~ 30%
TAKT time:
Advanced Lean
Work element
smallest increment of work done by a person (not a system) that could be moved to another person
Each process consist of a series of work elements. By collecting all the work elements in the cell, you get the total work content of the cell. Calculate the actual work by using a Process Study Form
Guidelines
Get REAL data, do not rely on standard time or data from the past. Get it yourself. Time each work element seperately, otherwise you can include waste. Once timed individual elements then time operators complete cycle from start to finish. Compare to see the waste. Time an experienced operator who is fully qualified to perform the job. Seperate operator work time from system cycle time.
Process Study
Process Steps
Process
Observer
Date/Time
Operator
Work Element
Observed times
Low est System Repeatable Cycle Time
Notes
Do
clu o t in n
o any e
te w as s vi o u
work as
ts men ele
Use this
Template
Advanced Lean
Paper Kaizen
First analyze the Total Work Content, and design improvement on paper
Current
240 210
180
J I H G F
First understand all the work elements that make the total work (Current)
Approach of immediately leaving out wasteful steps. You eliminate some waste on paper before implementation.
Time
150 120
I H G F
90 60 30
E D C B A
then have a critical look on the work elements and design improvement on paper (Improved) to reduce wastes.
E D B A
Advanced Lean
210
180 150
I
120
90 60 30 0
H G F E D B A
1
K K H G F
D B A
1
I
3
= Operator
Advanced Lean
Should you have one integrated system, or different small systems connected by a simple workflow tool?
Advanced Lean
For example
Pay-roll Policy request processing Customer Service Centers
Advanced Lean
Cell Layout
How can the process be laid out so one person can make one piece as efficiently as possible?
Avoid isolated islands of activities. Minimize inventory accumulation between processes. Remove (physical and digital) obstacles for the operator Make value creating activities easily accessible. Design good ergonomics. Keep manual, operator-based work steps close together to allow flexible work element distribution.
Advanced Lean
Incoming Forms
Out
or Digital
A cell can also be designed digital. Think of setting operators work in a flow by aligning systems. Workflow IT can help to let differ systems work together in a flow.
Advanced Lean
Total Work Content (after paper Kaizen) Takt Time buffer for variance
Option A
Balance the line
45
Buffer for variance Takt Time 45 sec.
Maximize operator work. Let Op. 4 do other things Continuous Improving More variance reduction, reduces buffer. Eliminate by reducing more waste.
30
15 0 1 2 3 4 1 2 3 4
Advanced Lean
Specialize
2x Takt Time
Do it all
75 60 45 30
H G F E H G F D B A
2 1
H G F E D B A
2
E D B A
Incoming Forms Out
15 0
Advanced Lean
Implementation Stages
Implementing the Flow consists of four stages:
1. Initial Process Design 2. Mock-up 4. Sustaining the Flow
Process associate involvement
Paper Kaizen & Initial Process Design
3. Debugging (!)
Mock-up -2 days
Sustaining
Avoid making things permanent, until stage 4, because it is a real learning-by-doing implementation.
Advanced Lean
The actual initial continuous flow design is not a bottom-up, self-directed team process. A small team should create the initial flow design by the steps presented in this training. Participants in this team: Leadership Quality IT (if important for design) Someone from the process team
Advanced Lean
Stage 2 Mock-Up
The initial design represents theoretical ideas for creating continuous flow. Goal of the mock-up is to introduce process associates to the process design and to find improvement opportunities before the actual process is deployed.
Show Goals Layout of new process Operator Balance Chart New standard way of working (steps and visual overview)
Try to make improvements immediately during the mock-up as much as possible.
Advanced Lean
Stage 3 Debugging
In this stage the process begins operating and is improved to the point where it can process items as designed.
Make sure that you can still meet customer demand during transition (temporary additional resources needed?) Involvement of quality and IT for kaizen opportunities until it operates as designed. The cells success is everyones responsibility. Implement improvement ideas quickly. Operator Balance Chart and the new standard way of working must be kept up to date. Do not underestimate the effect of transition on the process associates. It requires good change management. Mark milestones that prove youre making progress. Near the end of debugging period the work elements should be carefully re-listed and re-timed.
Track progress on a dashboard. One by one the problems preventing the cell from meeting Takt Time should be identified and their causes eliminated.
Advanced Lean
Debugging Checklist
Is there real one-piece flow? Can the process associate make one, move one? Are the items go through the cell in a flow? Do process associates perform the work as specified in the operator balance chart and the new standard way of working? If not, why? Do the team leader and supervisor understand their job responsibilities? Does the information flow? Do the process associates, team leader, and supervisor know: Takt Time, what to process, how many to process, how many items are done, what problems are occuring, etc..? Are the system, item, and cell layout right? Does the cell use the minimum amount of equipment and inventory? Can the cell change over between different end items in time? Does the cell reduce lead time?
Advanced Lean
Stage 4 Sustaining
In this stage you move from the debugging phase into daily operation. Cells must start on time. Standard work, measurements and visual management should be put in place to control the continuous flow in the cell. It is rare to find a system that maintains a steady state. Things are either improving or slipping backward. So, the best way to maintain the continuous flow performance is to keep improving.
Advanced Lean
PA EN G
V IS
IO N
ENTERPRISE
Advanced Lean
Advanced Lean
Work Authorization Push: Work is immediately sent to downstream user upon completion Pull: Work is not forwarded to next operation until requested
Advanced Lean
SHORTAGE
SHORTAGE
WIP = ?
PROCESS #3
Breakdown
Yield=2/h
RAW MATERIAL
Yield=1/h
WORK IN PROCESS
Yield=2/h
FINISHED GOODS
Pull System :
PROCESS #1 PROCESS #2
Standard WIP = 3
PROCESS #3
Breakdown
Yield=2/h
RAW MATERIAL
Yield=1/h
WORK IN PROCESS
Yield=2/h
FINISHED GOODS
Pull Characteristics
Standardized application Visibility Simplicity Standard lot sizes Discipline Versatility/Flexibility
Advanced Lean
Supermarket Material
2 1 9
10
9
2nd LEVEL SUPPLIER
10
PROCESS #3 PROCESS #2 PROCESS #1
9
2nd LEVEL SUPPLIER
10
Advanced Lean
Advanced Lean
Heijunka
Heijunka is the foundation of the Toyota Production system, and is the process of leveling and sequencing an operation.
There are three main elements of Heijunka 1. 2. 3. Leveling: Overall leveling of a process to reduce variation in output Sequencing: Managing the order in which work is processed (Mixed Production) Stability or Standard Work: Reduce process variation Toyota Production System
Just-in-Time
Customer Demand
Leveling
Heijunka
Heijunka
Jidoka
Kanban
A Kanban is a signal used by a downstream operation to request a material replenishment
Kanban
Cards Carts
q q
Bins Labels
Kanbans are used to signal the supplying process that more material is needed
Advanced Lean
Jidoka
Jidoka allows machines/processes to operate autonomously by shutting down automatically if an abnormality occurs. This prevents defective products from passing to the next process. There are two main elements of Jidoka 1. Autonomation: Automation with human intelligence operate autonomously 2. Stop at Every Abnormality
Toyota Production System
Just-in-Time
Abnormal
Heijunka
Jidoka
Lean Overview Lean Methodology Lean Toolkit Lean Deployment Lean Glossary Lean Resources
Advanced Lean
Lean Deployment
Lean Deployment Roadmap
1. 2. 3. 4. 5. 6. 7. Set the strategy Find a change agent (how about you?) Get the knowledge Seize or create a crisis to motivate change Map your value streams, creating a future state plan Eliminate waste by executing the plan Expand the scope to other areas
Dont Wait!! Opportunities multiply as they are seized
Advanced Lean
Lean Deployment
Investment Required
Expense 5% Technical 30%
Cultural 65%
Lean Deployment
Key factors for Success
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Leadership commitment Ramp up with results Consistency of purpose Knowledge/Training Wide spread Communication Change management Team responsibility Metrics Reward and recognition Roadmap for Execution (Discipline) Balance between short term and long term Best practice sharing (Community) Value Stream Management
Lean Deployment
Kaizen: Change for the better
Continuous incremental improvement Continuous slow Data driven: visual and quantitative Bias for action Does not cost money Absolute intolerance for waste
Lean Deployment
Kaikaku
Vision Kaizen = Evolutionary Change
K ak u
K ai z
en
Ka
ika ku
ai k
Kai
zen
en K ai z
Time
Lean Deployment
Value Value Streams Flow Pull Perfection
PROCESS Lean (Elimination of Waste) Fron t Line s Senio r Mgmt FLOW Lean . (Flow and Pull Improvement) Focus Flow Lean Focuses establishing lean workflow Use of Technology for flow Wing to wing improvements Establish Pull With customer involvement Six Sigma for complex problems
Process Lean Lean for waste elimination & process efficiency Empowered teams for speed of execution Tap knowledge residing in grass root level . Simple Communication
Lean Deployment
Why some companies fail?
1. Too busy managing day-to-day no time for continuous improvement and organizational learning Belief that past strategies and approaches will continue to be effective in the future Management through control and efficiency Organizing and managing through departments Using people as operational labor, not operational experts Let Lean Thinking be perceived as a downsizing exercise
2.
3. 4. 5. 6.
Agenda
Lean Overview Lean Methodology Lean Toolkit Lean Deployment Lean Resources
Lean Resources
For all references on Lean training material, Lean Initiatives, Genpact Project examples, visit the Lean Community on the Genpact Support Central http://gecishome.gecis.ge.com/portal/page?_pageid =33,872304&_dad=portal&_schema=PORTAL
an Le
Advanced Lean
ry it o os ep R
Got any Lean Improvements.. Upload it onto the Lean Workflow All approved Team & Individual ideas win Cheers
Advanced Lean
Closing Words Many unidentified problem areas exists within your processes Lean methodology helps exposing those problem areas ~ Creating opportunity for improvement Implementation is the key
Advanced Lean