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Introduction to Lean
Thinking
Glenn Ballard
Project Production Systems Laboratory
University of California, Berkeley
Glenn Ballard – a brief CVExperience
Pipefitter, Foreman, Construction Engineer, Productivity & Quality Specialist, Internal Management Consultant for Brown & Root and Bechtel
Independent Management Consultant. Clients include Petroleos de Venezuela, U.S. Dept. of Energy, Pacific Gas & Electric, Koch Refining, BAA (Heathrow Terminal 5), Channel Tunnel Rail Link (St. Pancras Station), Aera Energy, & Hess Oil
Current Position
Director, Project Production Systems Laboratory, UC Berkeley
Education
M.B.A. (Operations Management)
PhD (Civil Engineering)
Co-founder
International Group for Lean Construction (1993)
Lean Construction Institute (1997)
Project Production Systems Laboratory (2005)
What is
Lean?A management philosophy
defined by the ideal it pursues,the principles followed in pursuit
of the ideal, and the methods
used to implement the principles.
The Lean
IdealGive customers, internal and external, exactly
what they need to accomplish their purposes,
with no waste.
Paying Customers
Stakeholders
The next person in line
Customer Value
The Planet
What is “Value” in the Lean Ideal?
That has value for customers which enables them to achieve their objectives—the means to their ends.
What is “Waste” in the Lean Ideal?
The Japanese identify three types of waste:
• Muri: unevenness
• Mura: overburdening
• Muda: unnecessary
Ohno’s 7 Wastes (muda)• Overproduction
• Excessive Inventory
• Overprocessing
• Waiting• Workers or Equipment waiting for Work
• –Work waiting for Workers or Equipment
• Unnecessary Transport of
materials
• Unnecessary Motion
• Avoidable Defects
“Necessary waste”?
Sometimes what you would eliminate if you could, cannot be eliminated because it is ‘necessary’ at this moment for delivering value.
Several of the types of waste can be ‘necessary’ in this temporary sense; e.g., inspections, approvals, moving, earlier delivery than desirable to avoid the risk of late delivery, and so on.
Waste necessary at this moment is to be attacked and rendered unnecessary going forward—often by reducing the variation (unevenness) for which buffers of time, inventory or capacity are needed.
Principles that may
apply universally1. Base management decisions on long-term philosophy even at the
expense of short-term financial goals
2. Create continuous process flow to bring problems to the surface
3. Build a culture of stopping to fix problems to get quality right the first time
4. Standardized tasks are the foundation for continuous improvement and employee empowerment
5. Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others
6. Go and see for yourself to thoroughly understand the situation
7. Make decisions by consensus, thoroughly considering all options; implement rapidly
8. Become a learning organization through relentless reflection and continuous improvement
9. Respect your employees and suppliers by challenging and helping them to develop their capabilities
From Jeffrey Liker’s The Toyota Way
Lean Methods for
Improving Processes
We do work through processes—
making proposals, collecting
money, paying bills, designing
bridges, constructing buildings,
judging legal cases, etc.
Following the lean ideal,
processes are improved by
increasing customer value and
by reducing waste.
From Evans, et al. 1998
Swimlane Diagram of the RFI Process for Placing Drawings
Prepare Architectural
Drawings
Prepare
Engineering
Drawings based on
Loads
Modify
Engineering
Drawings
Subcontract Detailing
to Fabricator
Subcontract Detailing
To Detailer
Prepare Details
Check details
& modify as
appropriate
Check details
& modify as
appropriate
Check details
& modify as
appropriate
Check details
& modify as
appropriate
Return modified
details to fabricator
Structural
Engineer
Architect
General
Contractor
Fabricator
Detailer
© 2005 Z.K.Rybkowski All rights reserved.
RFI Process for
Placing Drawings
Check RFI
& modify drawing as
appropriate
Structural
Engineer
LEAD
TIME
Question?:
What is the percentage of actual
processing time of an RFI
compared to the amount of time it
sits in someone’s In Tray waiting to
be processed?
PROCESS
TIME
© 2005 Z.K. Rybkowski and I.D.Tommelein
All rights reserved.
Sample
entry:
Lead
&me
(LT)
Time spent
to respond
to RFIs
(VAT)
Assumptions:
8 hour work days (weekends not deducted)
Sections of RFI log where time spent was not recorded
are not included in the calculation.
© 2005 Z.K. Rybkowski and I.D. TommeleinAll rights reserved.
TouchTime:
Cycle Time:
Resources
Expended:
Observe and Gather
Data• Walk the process
to see the flow
of items and
information.
• Record:...
VALUE STREAM MAPPING
•W hat it is—a way of making waste in a process
‘visible’
•W hy do it—to eliminate waste
•How do it—use swimlane diagrams for processes in which material or information bounce back and forth between workers. Use the circle format for processes in which material or information move forward through a series of steps without returning. Document touchtime, cycle time & resources expended in each process step.
Courtesy of Southland
Industries
Improvements
(sunbursts)• Work with supplier to package gasket kit with
porcelain toilet, not with carrier. Eliminates time wasted storing and searching for a part delivered long before needed.
• Coordinate use of man-lift to reduce waiting.
• Set up tool cart with all needed tools and parts
to reduce motion.
• Produce a Daily Work Checklist to reduce avoidable trips.
• Order adjustable nipple on toilet carrier to
eliminate measuring and cupng.
• Use cardboard box to prevent toilet use before plumbed. Ask supplier to stamp DO NOT USE on box.
Courtesy of Southland
Industries
Cycle Time:
Value-adding-Time:
From To
81.5 minutes 42.5 minutes
25% 39%
Measured Results
Cycle
Time:
Value-
adding-
Time:
From To
81.5 42.5minutes minutes
25% 39%
Measured Results
Small Group Break Out• With 3-5 people near you, discuss
the question: What processes in
your work could benefit from value
stream mapping?
• Write them down to share with the
group.
• I will check in with you after 3
minutes.
• Hold your questions for now.
Small Group Break Out
With 3-5 people near you, discuss the
question: What questions or
concerns do you have about applying
value stream mapping to your
processes?
Write them down so you can share. I
will check in with you after 5
minutes.
Learning from
Breakdowns and
ExperimentsGlenn Ballard
Project Production Systems Laboratory
University of California Berkeley
LearningLean organizations have the discipline
to impose artificial necessity upon
themselves, without waiting for
demands from customers or
challenges from competitors. This
capability, at the heart of continuous
improvement, is well expressed in
Taiichi Ohno’s advice to ‘Lower the
river to reveal the rocks’ (Ohno,
1988), another way to state the lean
principle: Create continuous process
flow to bring problems to the surface.
Suzuki’s Yets
Fast and smooth
ride
Super quiet
Elegant styling
Warm
Great high-speed A pleasant ride
handling/stability
Low fuel consumption
Light weight
Great aerodynamics
Functional interior
Walter Shewhart’s
PDCA Cycle
Plan
Act Do
Check
Plan 1. Form a testable hypothesis in the form
If A, then B.
2. Specify a current standard; i.e., a
basis of comparison.
3. Describe how and when the
experiment will be conducted.
4. Specify a follow-up plan; how the
experiment will be evaluated; what
will count as evidence that the new
method is superior to the previous
standard.
Plan-an example• Problem: I spend lots of time searching for documents
in my office.
• Hypothesis: If I organize my paper files and keep them
organized, I will spend less time looking for things.
• Basis of comparison: I have previously listed my paper
file folders, but have not kept the list updated. There are
piles of unfiled papers on various surfaces in my office.
I guesstimate that I spend 20 minutes a day searching
for documents.
• How the experiment will be conducted: 5S the office,
including file folder organizing. Complete by the end of
the day Sunday, July 27.
• Follow-up plan: Perform the experiment, then measure
how much time is spent each day searching for things.
Breakdowns…are deviations from target outcomes
…provide learning opportunities: Our
knowledge regarding <If A, then B> is
inadequate.
Types of breakdowns:
• Near misses, accidents, injuries
• Errors, defects, rework
• Broken promises, plan failures
A PDCA Cycle for Learning
from Breakdowns
Prevent
Analyze Detect
Correct
Prevent
Preventive action depends on our
understanding of causation; what causes
various types of breakdowns.
When breakdowns occur despite our
efforts to prevent, that tells us we have
something more to learn about cause and
effect.
Detect
When breakdowns do occur, we
want to detect them as close to
their point of origin as possible,
to contain the damage.
That is one of the good
arguments for small batches and
for self inspection.
Correct
Once detected, the first step is to
take corrective action.
For example, if we have an error
in a document, we correct the
error, retrieve previously
distributed copies, and replace
them with the corrected
document.
Analyze
But corrective action is not
enough if we want to prevent
reoccurrence.
We must analyze the breakdown
to understand why it happened in
order to understand causality and
find countermeasures—ACTions
we can take to prevent
reoccurrence.
Composite PDCA Cycle
Do
Act
Plan Detec
t
Correct
Check
Prevent
Analyze
What Key Points Did
You Hear?Arrange yourselves in 4 person groups, select a spokesperson to report out for the group, and first share and record on your flip charts the key points you heard in the presentation. I will check in with you after 3 minutes. When all tables are ready, report out.
What Questions Do You
Have?Working in the same groups, share and
record on your flip charts your questions
about the presentation. I will check in
with you after 5 minutes. When all tables
are ready, I will try to answer your
questions.