3B Living Lean (Weiss)

7/27/2019 3B Living Lean (Weiss)

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Living Lean

How to SAVE MONEY andmake time for the FUN STUFF

Rebecca Goldberg and Elliott Weiss

Illustrations by Michael Twery

Goldberg Productions


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Our Problem

Lean is the relentless pursuit of creating value

by strategically eliminating waste.

So what?

Do our students really care?


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Our Solution

Living Lean: How to Save Money and Make Timefor the Fun Stuff

A collection of vignettes that presents everyday

scenarios with lean insights Why?

Ease of accessibility

Simple accounts

Entertaining and lively characters Personal AHAs!

Not manufacturing!


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Case Use

Stand Alone

Discussion to introduce concepts

Supplementary

To augment understanding of business cases


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CUSTOMER

COORDINATION CONTROL

CAPABILITIES

The OperationsManagement Process

CONTEXT/CULTURE/

COMPETITION

The 8C Model of Operations.

Identify the customerneeds, Design the capabilitiesto meet those needs,

Develop a controlsystem to assure those

needs are met and improved upon,

Coordinatewith our suppliers and

customers along the supply chain.

All of this is done within the general contextof

the environment and our competitors, while

creating a cultureof change and improvement.

Which leads toCASH


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CUSTOMER

Defining the Customer Value Proposition

Theron Hunters Coffee Shop (UVA-OM-1455)

Managing Variability Lunch with Guinevere (UVA-OM-1463)

Understanding Littles Law

Dylan and Amelia Have a Cuppa (UVA-OM-1450)

Achieving Single-Piece Flow

Belinda, Bags and Batches (UVA-OM-1466)


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CAPABILITY

Managing Constrained Resources

Donna Johnson and the Bottlenecks (UVA-OM-1449)

Identifying Non-Value Added Activities

Todds Balancing Act (UVA-OM-1425)

Mapping the Value Stream

Rebeccas Morning Routine (UVA-OM-1427)

Establishing Standard Work

Erika, in Through the Out Door (UVA-OM-1426)

Implementing the 5S System

David and the Case of the Haunted House (UVA-OM-1448)


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CONTROL

Using Process Behavior Charts

Tracy Scott Manages His Blood Sugar (UVA-OM-1443)

Designing Experiments

Bobs A-maize-ing Popcorn (UVA-OM-1467)

Maintaining Reliable Equipment

Missys Car Maintenance (UVA-OM-1434)


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COORDINATION

Designing a Supply Chain

Brians Lunch Dilemma (UVA-OM-1435)

Determining Lot Size

Peter Goes Shopping (UVA-OM-1462)

Setting Order Quantities and Safety Stocks

Brad and Gina and Baby Makes Three (UVA-OM-1486)


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CONTEXT AND CULTURE

Enabling Rational Decision Making

Zekes Tree (UVA-OM-1433)

Analyzing Root Causes Jackson and Wyatt Learn to Share (UVA-OM-1464)

Putting It All Together

Chloe Manages the Family Business (UVA-OM-1465)


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Customer (Section 1, Cases 1-4)

Case and Synopsis Learning Objectives Lean Takeaways

Theron Hunters Coffee Shop (UVA-OM-1455)

Planning to shelve his corporate career and open a

high-end coffee house, Theron Hunter meets with

his friend and potential business partner, John, to

discuss his options. He identifies his target market

and ideal location, then considers factors relevantto creating value for professional daytime foot

traffic?

Customer defined valueproposition

Order-winning criteria Make-to-order vs. make-to stock Voice of the customer Competing on capabilities Operating system strategic design

In order to identify those activities that do not add value,

one must first understand the customer defined value

proposition. Only when one realizes how cost, quality,

delivery and customization are important to the

customer can one take steps to improve the product,

service or experience. Thus, for Theron to lean out hiscoffee shop, he must first define this value for the

customer.

Assignment Questions

1. As you read Therons story, think about what Theron needs to do to make his coffee shop appealing enough to potential customers. What choices musthe make in order to become profitable? How should he decide among the alternatives?

2. How does each of Therons operating systems decisions affect his value proposition? Which are most critical to his business success?3. How might an ice cream parlor use the concepts of make-to-stock or make-to-order? A clothing manufacturer?4. What is your personal value proposition? What are the skills that you bring or might bring to your current or future organization? How is this similar to

Therons situation? How is it different?

How to Use the Cases


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How to Use the Cases

Class Discussion, Module 1 (Customer), Case 1: THERON HUNTERS COFFEE SHOP

Vignette Personal Professional

Value proposition

John asks Theron to clarify the value

proposition of the coffee shop and match his

distinctive features to what the customer

wants.

Do students have a value proposition? How is it

reflected in resumes, cover letters, career choice,

educational choices, personal presentation, and

career strategy?

Compare the value proposition of a

fast food restaurant with that of a

five-star restaurant.

Order-winning

criteria

Theron considers two product lines: fast but

limited selection and slow but highly

customized.

How do students market themselves to potential

employers, and to potential customers? How do they

focus on the order-winning criteria of the person

with whom they interact?

Ask students for business/

organizational examples of each

content area and discuss. In what

ways do the student examples

illustrate the intentional use of

these concepts? In what ways do

the examples illustrate suboptimal

use of the concepts with room for

improvement?

Made-to-order

versus made-to-

stock

Therons two product lines are made at

different points: in batches and individually.

How do students manage their homework,

professional work, email, and housework? Do they

utilize a make-to-order or a make-to-stock approach?

What are the circumstances that would warrant one

or the other?

Voice of the

customer

Theron can do market research pre-entry,

then weave multiple forms of customer

engagement into his business plan.

Ask for examples of ways in which they have listened

to their employers, customers, spouses, significant

others, families and/or friends to improve the ways

they relate to themand improved their own

experience of the relationship as a result.

Competing on

capabilities

Theron knows how to select and brew coffee.

He also has a background in finance, which

will help him run the numbers. The key is

finding a way to relate these capabilities to

what the customer wants and will pay for.

How have students chosen to highlight or focus ondeveloping their own personal core strengthsand

how they have adapted to or compensated for their

own personal weaknesses?

Operating system

strategic design

Theron thinks critically about his design

choices and should continue to do so.

In what ways have students structured their homes,

families, and/or schoolwork processes intentionally

and in relation to their core competenciesor gaps

in those competencies?


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A Practical Example: Lunch with Guinevere1

Salad Bar

Custom MealChefs Special

2


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Practical Example: Managing Inventory

When to order the next beer?

Here?


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Pragmatic Inventory and EOQ/ROP: Which are You?

Gina

Brad

Lena

Tina

On Hand ROP

Copyright 2012 Elliott N. Weiss


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Pragmatic Lean - Metrics

Define the defect:

Dinner without all the family members present physically, or

Dinner with the entire family, but without all the members

being relaxed and engaged.

If someone is too tired or distracted to engage, then the primary

goal of emotional interaction is missed.


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Other Personal Applications

XmR Project

A3 Report


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Process Behavior Chart Project

Toward the end of the term we will learn about a technique for process

improvement called XmR charts. At the beginning of the term you will be asked to

start collecting data on a process measure of your choice. Once we learn about

XmR charts, I will ask you to submit an analysis of your own data set.

Examples Body weight

Pulse

Blood pressure

Commute time

Number of steps taken per day

Number of diaper changes

Time taken for bathroom breaks


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-400

-200

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XValue

Observation Number

Individual Observations

Initially, the data looks strange, and poorly controlled

This Is Really 2

Processes!

Fits with

knowledge of

human

restroomhabits

Solution is to

split data into

Process #1

and Process

#2

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1400

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MovingRange

Observation Number

Moving RangeUpper Limit Center Lower LimitX chart 623.082 183.000 (257.082)

mR chart 541.003 165.444 n/a


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0

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200

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XValue

Observation Number

Process #1

Process #1 is well controlled with a tight tolerance

I suspect these are

detours of some kind,

or chance encounterswith people I needed

to speak with

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40

60

80

100

120

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MovingRange

Observation Number

Moving RangeUpper Limit Center Lower Limit

X chart 107.820 89.200 70.580mR chart 22.890 7.000 n/a


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0

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400

600

800

1000

1200

1400

0 2 4 6 8 10 12 14 16 18 20

XValue

Observation Number

Individual Observations

Process #2 is also well controlled, but with much more variance

Definite trend here,

but I am not sure why

Upper Limit Center Lower LimitX chart 1,033.544 686.857 340.170mR chart 426.190 130.333 n/a

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100

200

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MovingRange

Observation Number

Moving Range


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Topic: Lean Implementation

Deliverables: As part of the Operations Management course, each student in the MBA for Executives

program is required to submit an A3 project report describing a process improvement activity. Theactivity will utilize one of the following techniques:

Identification and elimination of muda 5S Standard work

These techniques have been covered and discussed during the Operations course in Terms 3 and 4. Theprocess improvement activity may be from either your personal or professional life. Results should bepresented as an A3 report

Gallery Walk

Prior to dinner on the night of August 22, 2013 we will have an open reception with wine and cheesewhere all projects will be presented.


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Sample Personal Topics

Sustained Weight Loss

The Beauty of Sleep

The Closet Consolidation

Improve Golf Chip Shot

Improving Flip Cup Outcomes

Precision Parking (5S in a Garage)

Kite Boarding Setup Time

Throughput Time reduction for Kids Bath

Standard Work for Potty Usage

Reducing Muda in the Middle of the Night BabyFeeding


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A3: Standard Work and Throughput Time Reduction for T-Shirt Folding Author: ANTHONY HOANG Date: AUGUST 2013


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Sustain the new and improved FlipFold-based process for T-Shirt folding

Continue to master the FlipFold with current persons

Train new persons on the use of the FlipFold

Process

Reduce variability in the resulting

lengthand widthof folded T-Shirts.

A key leader of the Hoang House (aka mom)

has a stated requirement that T-Shirts be

folded consistently to support orderly stacking

and storage in the closet and dresser drawers

ANALYSIS

ANALYSIS OF VARIABILITY

ANALYSIS OF THROUGHPUT TIME

Time to Fold 10 T-Shirts

(min) Avg Time per T-Shirt (sec)

Person 1 2:28 0:14

Person 2 3:43 0:22

Person 3 2:07 0:12

TOTAL= 8:18 AVG= 0:16

Average Time

per T-Shirt

16 sec

91011121314

Lengthof

0

2

4

Moving

VARIABILITY IN FOLD LENGTH VARIABILITY IN FOLD WIDTH

6

7

8

Widthof

0

1

Moving

mR Average

0.26 in

mR Average

0.72 in

Avg T-Shirt

Length

11.5 in

Avg T-Shirt

Width

6.9 in

DRIVERS OF VARIABILITY1. Varying t-shirt sizes

2. Fabric quality differences

3. Varying folding techniques

are used by each person

4. Lack of standards

5. Human error

6. Folding does not occur in

one continuous session

REDUCE VARIABILITYREDUCE THROUGHPUT

TIME

Reduce the timerequired to

fold T-Shirts.

With an estimated 2900 T-Shirts folds

performed in the Hoang House each

year, there is a desire to reduce the

amount of time consumed performing

these folds.

PROBLEM DEFINITION

Analysis of original folding process results (30 individual T-Shirt folds = 3 people x 10 T-Shirts)

FUTURE STEPS

RESULTS

Apply technology to the T-

Shirt folding process to address

variability through

standardization of work

Achieve time efficiencies in

the folding process via

technology

Procure FlipFold, The

Ultimate Folding Tool as seen

on TV

Train all folders on the

FlipFold

RECOMMENDATION / PLAN

Analysis of the FlipFold-based process results (30 individual T-Shirt folds = 3 people x 10 T-

Shirts)

91011121314

Length

0Moving

6

8

Widt

h

0

mR

VARIABILITY IN FOLD LENGTH VARIABILITY IN FOLD WIDTH

mR Average

0.47 in

Avg T-Shirt

Length

9.76 in

mR Average

0.21 in

Avg T-Shirt

Width

6.8 in

0:00

0:28

0:57

0 10 20 30

TimeperFold

(Run)

Folds (30 Runs per Process)

Time per T-Shirt folded (sec)Ori

gin

al

Pro

cAverage Time

per T-Shirt

13 sec

% Time Reduction

Person 1: 26%

Person 2: 21%

Person 3: 16%

Variability was reduced in fold length (-.25in on mR) and width (-.05in on

mR)

Throughput Time was reduced by 21%
http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=0f93vVptjzxyEM&tbnid=XxdUYWsHS6kq2M:&ved=0CAUQjRw&url=http://www.cyberbrands.com/pub/flipfold.html&ei=TP4VUs7TF9DD4APOpoDQDw&bvm=bv.51156542,d.dmg&psig=AFQjCNHu8Svnve96Ekg7Xl7GyFuAL48nWw&ust=1377259421947369http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=0f93vVptjzxyEM&tbnid=XxdUYWsHS6kq2M:&ved=0CAUQjRw&url=http://www.cyberbrands.com/pub/flipfold.html&ei=TP4VUs7TF9DD4APOpoDQDw&bvm=bv.51156542,d.dmg&psig=AFQjCNHu8Svnve96Ekg7Xl7GyFuAL48nWw&ust=1377259421947369http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=0f93vVptjzxyEM&tbnid=XxdUYWsHS6kq2M:&ved=0CAUQjRw&url=http://www.cyberbrands.com/pub/flipfold.html&ei=TP4VUs7TF9DD4APOpoDQDw&bvm=bv.51156542,d.dmg&psig=AFQjCNHu8Svnve96Ekg7Xl7GyFuAL48nWw&ust=1377259421947369http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=0f93vVptjzxyEM&tbnid=XxdUYWsHS6kq2M:&ved=0CAUQjRw&url=http://www.cyberbrands.com/pub/flipfold.html&ei=TP4VUs7TF9DD4APOpoDQDw&bvm=bv.51156542,d.dmg&psig=AFQjCNHu8Svnve96Ekg7Xl7GyFuAL48nWw&ust=1377259421947369


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Sample Professional Topics

Material Loss Reduction in Plastics Manufacture

Optimal Cross Docking

Marketing Lead Generation

Muda in an Emergency Department, Improving

Throughput Time

Reducing Loan Turnaround Times

Credit Bureau Complaint Reduction

Improving the Database Build Process

A3 Report: Criss-Cross will make you dock, dock! Author: Arjun Moldanado Date: 8/22/2013


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Based on the previous 12 months worth of data, approximately 40% of inbound

warehouse orders could be immediately shipped out to fulfill orders. However,

existing warehouse procedures and limitations within the ERP systems existing

programming have previously limited the warehouses ability to cross-dock.

I. Background:

II. Problem Analysis:

Several issues create prevent or inhibit implementing the ability to cross-dock.

Inability for the Receiving Team to identify orders that qualify for X-docking. Inability to release orders upon receipt via the ERP system.

The actual printing of the pick tickets. and timing of the pick release batches.

Separating out cross-dock orders from inventory requiring put-away.

The distance between the Receiving Team and the Pick/Pack & QA Team.

III. Implementation:

To address the aforementioned problems, implementation of cross-docking

required the following procedural and technical enhancements:

A note in the receiving field identifying

lines capable of being immediately

shipped as well as adding printers at the

receiving workstation where those orders

will release regularly.

Locators adjacent to the Receiving station

to be received into and pallets next to

the receivers to identify cross-dock orders

from put-aways.

Physically moving of a Pick/Packstation closer to the Receiving

station and combining it with

the QA process.

Ancillary notes:

Pick releases specifically for cross-docking orders would now release 6 times

per day including 5 minutes prior to the standard twice-per-day pick releases

for normal orders allowing for continuous flow of orders.

The immediate pulling of orders to be shipped eliminated the need for put

away and the subsequent picking from locators throughout the warehouse. It

IV. Total Effect:

V. Action Items:

0.002.004.006.008.00

10.0012.0014.0016.0018.0020.0022.00

1 2 3 4 5 6 7 8 9 10

Total Time(minutes)

Avg Time Per

Order

UNPL

Apples to apples sample batches are nearly impossible in our business however

accounted for as best as possible using number of lines per order and like items.

Before X-Docking:

In addition to the initial put away time, this process entailed travel/transport time to

include the need for a forklift, search/picking time, packing time, and quality assurance.

After Implementation:

Picking occurred at the new floor locators adjacent to the receiving stations and the QA

phase was combined with the packing stage.

Results:

Average pick-to-pack time per order decreased from 12.2 to 6.4 minutes per order.

The differences between the UNPL and LNPLs reduced from 14.6 to 12.8 indicating a12% reduction in routine variation.

Since previously limiting factors did not allow all orders to be shipped the same day,

the overall increase in the number of orders shipped per day has saved approximately

1.5 days on the supply chain (this figure is subject to improve given seasonality).

0.00

5.00

10.00

15.00

1 2 3 4 5 6 7 8 9 10

Total Time

(minutes)

Avg Time Per

Order

Changes in Purchasing procedure will allow for more orders to be cross-docked via

segregation of shipments.

To be weighed against a potential marginal increase in inbound freight costs.

Changes in sales strategy would reduce the number of orders needed to be put awayallowing for more orders to either be drop-shipped or cross-docked

Documents

3B Living Lean (Weiss)