Introduction To Lean

Introduction to Lean Presented By Tracy O’Rourke

VP, Content Development at GoLeanSixSigma.com

Our Expert: Tracy

•  VP, Content Development at GoLeanSixSigma.com

•  Began Process Improvement career at GE where earned Black Belt

•  UCSD & SDSU Instructor: Lean Enterprise and Lean Six Sigma Master Black Belt Courses

•  MBA from Pepperdine University

•  BA in English Literature from San Francisco State University

How To Interact

•  Raise your hand

•  Ask a question

•  Answer polls

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Let’s Interact!

Where are you from? Share your location in the Questions area in your Control Panel!

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Who Is GoLeanSixSigma.com?

GoLeanSixSigma.com makes it easy for everyone everywhere to build their problem solving muscles.

We provide the most practical, easy to understand and enjoyable Lean and Six Sigma resources available.

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We’ve Helped People From…

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Today’s Agenda

•  What is Lean?

•  Why Do Organizations Implement Lean?

•  Lean Myths

•  2 Basic Lean Tools:

•  The 8 Wastes

•  Spaghetti Chart

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Working ON the process versus Working IN the

process

How much time do we spend working ON the process versus IN it?

What Is Process Improvement?

POLL: What percent of your time is

spent working ON the process versus IN it?

When Did Process Improvement Start?

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The Fathers of Lean Quality

W. Edwards Deming 1900-1993

•  American

statistician •  Helped the

Japanese transform after WWII

•  Deming Prize

Henry Ford 1863-1947

•  Founder, Ford Motor

Company •  Sponsor of the

assembly line technique of mass production

•  Introduced the Model T automobile

Taiichi Ohno 1912-1990

•  Production Engineer at

Toyota •  The father of TPS –

Toyota Production System

•  Published the “Toyota Production System”

Shigeo Shingo 1909-1990

Author of several books about Lean concepts including single-piece flow, mistake-proofing and the Shingo system for continuous improvement

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What is Lean?

Lean creates value for customers by minimizing waste.

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A Lean process…

•  Is faster

•  Is more efficient

•  Delivers satisfactory quality to customers

What Is A Lean Process?

Popular Lean Tools

•  Intro to Six Sigma

•  A3

•  Process Walks

•  Process Mapping

•  5S & Visual Workplace

•  Standard Work

} We’ll cover these two today!

•  The 8 Wastes


POLL: If you had a choice, which Lean tool would you like to

learn about in a future webinar?

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Yesterday’s Market Profit Approach: Selling Price = Cost + Profit

More Profit = Raise Selling Price

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Today’s Market Profit Approach: Less Cost = Increased Profit

More Profit = Reduce Cost To Produce

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The Cost of Poor Quality

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Traditional vs. Poor Quality Costs

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Cost of Poor Quality Example

Growing Our People

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Lean Is About Waste

People are not a waste, but often, their talents are wasted on wasteful activities

that do not add value.

How can we eliminate wasteful steps so that people’s time and energy are not wasted?

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Lean Myths

•  Myth: LEAN stands for “Less Employees Are Needed”

•  Myth: Lean applies mainly to manufacturing processes

•  Myth: Lean is too time consuming

•  Myth: Lean is too hard to translate into “laymen’s terms” for employees to use

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Applying Lean

•  Customer Value: Determine what matters most to customers

•  Process Focus: Enable the workforce to identify and remove waste from the system in order to satisfy customers

•  Lean Culture: Foster a respectful, interactive culture of process ownership

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Defining Customer Value: •  Value-Add (VA) – Any activity or process step that an external customer sees

as valuable. The key characteristics of a value-add step is:

1.  The customer is willing to pay for it

2.  It transforms the item toward the final product

3.  It must be done right the 1st time

•  Non-Value Add (NVA) – Any activity or process step that does not add value from the customer perspective.

•  Necessary Non Value-Add (NNVA) – This activity/step is still considered NVA from the customer perspective, but is deemed a necessary step by a specific entity, i.e. fiscal compliance or regulatory activities.

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Critical Questions To Ask

For each core process, ask:

•  Who are our customers?

•  What do our customers care about? (requirements by process)

•  Do we measure what customers care about?

•  What are we doing about gaps in performance?

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Processes Are Everywhere

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Are Some Processes Designed Like This?

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Processes Have 4 Versions

POLL: Which version are we trying to understand

first in process improvement?

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We Organize People Vertically

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But Processes Run Horizontally

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•  Involve the people who do the work in the improvements

•  Process improvement should not be “done to” people, but with people

•  Clear away organizational barriers

Engage The People

POLL: What is your experience

with Lean?

Questions To Ask About Culture

•  Does your organizational culture encourage people to solve problems?

•  Are you delivering on what your customers are asking for? Or are there gaps?

•  Are employee improvement ideas implemented on a regular basis?

•  Do you get quick, measurable bottom-line results from your efforts? Or does it take months?

•  Are your current efforts resulting in quick and effective process improvements?

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What Is A Waste?

•  Waste is “muda” in Japanese

•  Waste is a strain on an organization’s time and resources

•  Waste doesn’t add value for the customer

•  The more an organization can reduce waste, the better

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“The real voyage of discovery consists not in seeking new

lands but seeing with new eyes.”

- Marcel Proust

Seeing With New Eyes

Learning To See With New Eyes

•  Process improvement requires us to look at our processes in a new way

•  Organizations that use Lean have different conversations

•  It’s OK to challenge the status quo

•  Asking “why” is not reacted to defensively

•  An example of this new view of work is knowing the 8 Wastes.

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•  Excessive exception items or exception processing

•  Errors that occur in a process over and over

•  Customer dissatisfaction in a process

•  A data entry error causes the wrong actions like shipping too many or too few to the wrong address, etc.

1. Defects

Efforts caused by scrap, rework and incorrect information.

Let’s Interact! Please share some

examples of defects in your industry.

•  Printing 20 copies of a report that only 3 people look at

•  “Reply-all” e-mails when it pertains to only a few

•  Large batch sizes

2. Overproduction

Production that is more than needed or over what is needed.


examples of overproduction in your industry.

•  Excessive cycle time between process steps

•  Sub-optimization of the whole process

•  Wait time vs. Touch Time is usually high

•  Waiting for files or information

3. Waiting

Wasting time waiting for the next step in a process.


examples of waiting in your industry.

•  Not utilizing teams or employee brain’s

•  Micro-managing employees

•  Lack of empowerment

•  People do no get to “think,” but rather are told what to “do”

4. Non-Utilized Talent

Underutilizing people’s talents, skills and knowledge.


examples of non-utilized talent in your industry.

•  Poor layout

•  Inefficient “flow”

•  Carrying large quantities in and out of storage facilities

•  Redundant movement of materials

5. Transportation

Unnecessary movements of products and materials.


examples of transportation in your industry.

•  Purchasing excess inventory for greater discounts

•  Unreliable suppliers

•  Long cycle times for certain parts, or suppliers

6. Inventory

Excess products and materials not being processed.


examples of inventory in your industry.

•  Poor layout

•  Inefficient workplace organization

•  People, Material, and Machine Ineffectiveness

•  Inefficient placement of frequently used supplies, tools, etc.

7. Motion

Unnecessary movements by people (e.g., walking).


examples of movement in your industry.

•  Multiple re-work loops or work-arounds

•  Complex processes, or redundant steps

•  Excessive information in systems or forms

8. Extra Processing

More work or higher quality than is required by the customer.


examples of extra processing in your industry.

How can you…

•  Eliminate?

•  Simplify?

•  Streamline?

•  Minimize?

Once Waste Is Identified

•  A spaghetti chart is a visual depiction of motion in a process that helps:

•  Understand the current layout

•  Understand how a layout affects the process

•  A start to changing a layout to reduce wasteful activities

What Is A Spaghetti Chart?

Spaghetti Chart at Bahama Bistro

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Today We Covered:

•  What is Lean?

•  Why Do Organizations Implement Lean?

•  Lean Myths

•  2 Basic Lean Tools:

•  The 8 Wastes


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•  Purchase this poster

•  View all posters (scroll to bottom of page)

Getting Started: The 8 Wastes Poster

Getting Started: •  Learn more by starting some more training!

•  Yellow Belt training is FREE at GoLeanSixSigma.com

•  Use coupon code December5 to get 5% off of any GoLeanSixSigma.com course until December 31, 2015:

•  Yellow Belt Certification

•  Green Belt Training & Certification

•  Black Belt Training & Certification

•  Lean Training & Certification

•  Start to look for waste in your organization

•  Then reduce and eliminate the waste

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Q&A

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Introduction To Lean