The Lean Journey

The Lean Journey

VerseOne … orchestrating your LEAN solutions

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Process Improvement Methodologies

Theory of Constraints Six Sigma Lean

Concept Manage Constraints

Reduce Variation

Eliminate Waste

Application Guidelines

1. Identify Constraint

2. Exploit Constraint

3. Subordinate Processes

4. Elevate Constraint

5. Repeat Cycle

1. Define2. Measure3. Analyze4. Improve5. Control

1. Identify Value2. Identify Value

Stream3. Determine

Flow4. Implement

Pull5. Strive for

Perfection

Focus Constraints Quality Flow


Introduction

• What is Lean?– It is focused on eliminating waste in all

processes – It is about expanding capacity by reducing

costs and shortening cycle times– It is about understanding what is important

to the customer (e.g. value)– It is not about eliminating people


Introduction (cont’d)

• How Do You Achieve Lean?– Specify value from the perspective of the

ultimate customer– Identify the value stream to expose waste – Create flow to reduce batch size and

work-in-process– Make only what the customer has ordered– Seek perfection by continuously improving

quality and eliminating waste


LEAN – a powerful combination of techniques to increase business performance, based on the concepts of eliminating waste, adding value, and expanding capacity.


Lean is comprised of:

• Keys to leadership• Principles• Tools


Keys to Lean Leadership

• Go See -- senior leaders must spend time on the “production” floor (gemba)

• Ask Why -- use the question many times every day to uncover the root cause

• Show Respect -- respect employees, suppliers, and customers


Lean Principles

• Define Value Customer Defined

• Identify Value Stream Follow the Product

• Flow the Product Eliminate Waste

• Pull the Product Produce Just in Time for Demand

• Strive for Perfection Continuous Improvement


Background and History

• 1574: King Henry III watches the Venice Arsenal produce finished galley ships using continuous flow processes

• 1799: Eli Whitney perfects the concept of interchangeable parts• 1902: Sakichi Toyoda establishes the jidoka concept• 1910: Henry Ford moves into Highland Park, the “birthplace of lean

manufacturing,” with continuous flow of parts• 1911: Sakichi Toyoda visits the U.S. and sees the Model T line for the

first time• 1929: Toyota Motor Corp. visited GM and Ford assembly lines in U.S.• 1938: Just-In-Time concept established at Toyota• 1940: Consolidated Aircraft builds one B-24 bomber per day, later

improves production to one B-24 per hour


Background and History (cont’d)

• 1945: End of WWII, Japanese economy nearly destroyed• 1949: Taiichi Ohno promoted to shop manager at Toyota, develops

“elimination of waste” concept• 1950: Juran and Deming began training Japanese leaders on quality

and Toyota Production system (TPS) was born• 1951: Ohno refines TPS to include visual control, employee

suggestions, TWI, batch size reduction, and kanban• 1965: Toyota receives Deming Prize for Quality• 1975: First English translations of TPS are drafted• 1980-83: First books on TPS by American authors: Kanban and

Zero Inventories• 1990: Womack and Jones publish The Machine That Changed the

World, becoming the definitive text creating the term “lean”, followed by Lean Thinking in 1996


Waste

Anything that does not add value to a process and that which a customer would not want to pay for, if given a choice.


Eight Forms of Waste

•• DD efects or rework•• OO verproduction•• WW aiting•• NN on-utilization of talent•• TT ransportation or travel•• II nventory•• MM otion•• EE xtra Processing


Forms of Office Waste

• Conflicting Department Goals• Traditional Accounting Methods• Poor Product Design• Looking and Searching for Files• Paper Re-work• Unnecessary Authorizations


Source: Minnesota Council for Quality


Waste Cartoon


Can You Identify Waste?

1. Extra Photocopies2. Authorizations3. Final Assembly4. In Basket5. Invoicing6. Payroll

NO


Lean Tools

• 5S (sort, straighten, shine, standardize, and sustain)

• Value Stream Map• Spaghetti Diagram• Visual Management• Error Proofing (Poka

Yoke)

• Standard Work• Setup Reduction

(SMED)

Cellular Flow•• Jidoka (Autonomation)

• Production Preparation Process (3P)

• Just In Time/Pull (JIT)

• Training Within Industry (TWI)

• Total Productive Maintenance (TPM)

• Kaizen Events


Lean Lessons From Others

• “Getting lean” takes a long time• Lean is not a part-time effort• Lean is more than tools, it’s also behavior• The journey to lean never ends• There will be resistance to lean within the

organization


Lean Lessons From Others (cont’d)

• The top leaders need to lead lean• Be prepared for the front-end investment• Lean is not just for manufacturing• There is a lean “roadmap”, but no lean

“cookbook”• You cannot just copy another lean

organizations journey


Why Get Lean?

• Productivity improvements of 20-50%• Set-up time reductions of 60-80%• Inventory reductions of 40-75%• Floor space reductions of 30-50%• Reduced quality defects by 50-100%• Improved safety performance of 30-60%• More efficient office procedures• Survival in the marketplace


Actual Lean Examples

• Florida hospital system reduced accounts receivable to 58 days from 89 days (35%)

• Midwest healthcare system reduced phone triage to 28 seconds from 89 (69%)

• University clinic increased the number of available radiology scans by 20%

• Municipal Fire Department increased the number of annual fire inspections by 23%

• Midwest manufacturer reduced inventory to $29,000 from $95,000 (69%)


OperationsOperations

Lean EffortsLean Efforts

Policy Policy DeploymentDeployment

Policy Deployment –

A process for focusing a company’s resources on those few critical objectives that improve execution and drive growth.

What What You You SeeSee


Next Steps

• Business Assessment• Call to Action and Commitment• Align with Policy Deployment• Training and/or Sensei• Resource Allocation• Process Selection• Begin the “Journey”• Implement New Metrics• Review Progress and Adjust as Needed


You must TRANSFORM the organization to avoid “snap-back” to the old ways or … don’t even bother to start.


VerseOne Because …

• Custom solutions – never a “one-size fits all” or off-the-shelf solution

• Attentiveness – each client represents a greater portion of business to us than to a large firm

• Flexibility – we can make changes and react to our client needs without contacting “corporate”

• Fee and Value – due to lower overheads, you will receive outstanding value for reasonable fees

• Risk Free Guarantee – you must be satisfied with our results during the entire engagement or there is no fee


VerseOne …orchestrating your LEAN solutions

VerseOne Inc.708-301-5566 Homer Glen IL920-882-1474 Appleton WI

877-301-4595 Toll [email protected]


Thank You


5S Examples

29

After 5S - Cleaned, organized and drawers labeled (less time

and frustration hunting)Before 5S


Value Stream Mapping – Current State

(This material is taken from LEI source material and belongs to Lean Enterprise Institute, Inc., who owns its copyright.)


Value Stream Mapping – Future State

(This material is taken from LEI source material and belongs to Lean Enterprise Institute, Inc., who owns its copyright.)


Spaghetti Diagram


Visual Management


Error Proofing


Standard Work


Set-up Reduction

Also called:

Quick Changeover


Cellular Flow

• Source inspection

• Point of use storage

• Simplified handling

• Visual goals & metrics

CHARACTERISTICS


Jidoka

• 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.

• Sometimes called “automation with human intelligence.”


Production Preparation Process (3P)


Just In Time/Pull (JIT)

Scrap

Work in process inventory level(hides problems)

Unreliable Vendors

Capacity Imbalances

ScrapUnreliable Vendors

Capacity Imbalances

WIP

Schedule based

Consumption based


Training Within Industry (TWI)Training Within Industry (TWI)

• Job Instruction Training (JI) – teaches supervisors how to quickly train employees to

do a job correctly, safely, and conscientiously.• Job Methods Training (JM)

– teaches supervisors how to continuously improve the way jobs are done.

• Job Relations Training (JR) – teaches supervisors how to develop and maintain

positive employee relations to prevent problems from happening and how to effectively resolve conflicts that arise.


Total Productive Maintenance


Kaizen Events

• Three to five day intense team efforts• Elements of a process typically addressed

are:– Waste and Errors– Inventory and Flow– Measurements– Process management

• End with a “report out” to management