Lean Operations

Slide 1Lean Operations © Van Mieghem

Lean Operations House Building Game

The transition to Lean Ops The Paradigm of Lean Operations: The ideal

Basic philosophy of Lean Ops Lean tools for synchronization & waste reduction

Driving Continuous Improvement through Visibility


Paradigm of Lean Operations:In Search for the Holy Grail

The ideal Process = – Synchronization of all flows

• 1 x 1• production on demand• defect free

– At lowest possible cost

Waste = Gap between ideal and actual

How do we sync at lowest cost? > Synchronization or Lean Tools How do we set up a system to continually reduce waste ?


Improvement as a process

The Ideal Operation

• perfectly synchronized with demand• at lowest cost

The Actual Operation

D = deviation from ideal= waste, variability, inflexibility= opportunity for improvement

Reduce D• Root cause analysis & problem solving

mindset• Waste reduction (Lean tools)• Variability reduction (Six Sigma, TQM)

Increase visibility of D• Andon pulls, workplace organization• Exploratory stress• Process measurement, visual

management

ContinuousImprovementProcess


The architect behind Lean Operations:Toyota’s Taiichi Ohno and waste elimination

“Toyota Production System: Beyond Large-Scale Production” by Taiichi Ohno

Lean operations has been defined as “a business system for organizing and managing product development, operations, suppliers, and customer relations that requires less human effort, less space, less capital, and less time to make products with fewer defects to precise customer desires, compared with the previous system of mass production.”


Waste

Incidental Activity

Value Added Activity

Value Added Activity• Work or time that directly increases the

value of the product in the eyes of the customer (e.g. Assembly of parts)

• What the customer is paying forWaste• Work or time that does

not add any value to a product

• Waste is sometimes called "muda", from the Japanese for waste

Incidental Activity• Work or time that does not directly add

customer value, but which is currently necessary to maintain operations (e.g. small movements to reach for material for assembly)

ObjectiveThe objective is to maximise the proportion of value added activity by eliminating waste and incidental activity

Elementsof work

There are three elements of work


8

MotionWalking around the factory looking for something or fetching equipment

Inventory Excess stock of drugs or equipment in clinical areas

WaitingMortgage applications piling in a desktop in tray

ReworkDocumenting the same information in several places for a new hospital patient

Over-processing Polishing a luxury walnut dashboard to a mirror finish on both sides

Over-productionMaking parts on a piece rate basis to fully load individual machines

IntellectFailure to make full use of the whole team’s experience and knowledge

TransportationTransferring finished goods to off-site packing and then freighting onto customers

THERE ARE 7 CLASSIC TYPES OF WASTE“wormpit”


Lean Tool #1: cut batch sizesAn illustrative example

Consider the following 4-step process:

What is:– The bottleneck:– The process capacity or maximal R: – The theoretical flow time Tth

– The minimal amount of inventory needed to run at capacity: Ith

– Call this scenario 1, the best. Let’s now consider what happens if we have (transfer) batches

A

1 min/jobResource 1

B

1 min/jobResource 2

C

1 min/jobResource 3

D

1 min/jobResource 4


Lean Tool #1: cut batch sizeABCD example continued

Batch Shop (Batchsize = 4)

A B C D

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Elap

sed

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TT = I = R = 8

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Flow Shop (Batchsize = 1)

A B C D

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Elap

sed

Tim

e

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T

1

1

1

2

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T = I = R = = scenario ?

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Changeover / setup / batch related costs must be reduced if batch size is to be decreased

Synchronization requires smaller batch sizes or even 1x1


Lean Tool #2: process on demand = pullJust-In-Time operations

JIT = have exactly what is needed, in the quantity it is needed, when it is needed, where it is needed.

“hand-to-mouth” material flow needed by whom?


Lean Tool #2: Synchronization with demand: customer demand pulls product

Supplierinputs outputs

Process Customer

PUSH: Inputs availability triggers execution

Supplierinputs outputs

Process Customer

PULL: Outputs need triggers execution


Lean Tool #2: how make pull system in house game?

Productioncontrol

Roofcut

Basecut

FA Baseassembly


Lean Tool #2: Pull Implementation: Kanban Production Control Systems

Kanban

Processing center i

Processing center i + 1

WIP

Job

http://www.toyota.co.jp/en/vision/production_system/video.html



Lean Tool #3: Quality at the SourceDefects Found at:

Own Station Next Station End of Line Final Inspection

End User’s Hand

$ $ $ $ $

Impact to the Company

· Very Minor

· Minor Delay

· Rework · Resched.

of work

· Significant Rework

· Delay in Delivery

· Additional Inspection

· Warranty costs

· Administrative costs

· Reputation · Loss of

Market Share


Reducing Waste:Quality at the Source

Fool-proof/Fail-safe design (Poka-Yoke) Inspection

– Self– Automated (Jidoka)

Line-stopping empowerment (Andon)

Trouble!

Approach for operators• Preventative• If trouble, STOP!• If defective don't pass

Line-stopping empowerment

Approach for machines• A mistake-proofing system prevents errors and defects• Stop line when defects are detected or machine breaks

down

Poka Yoke and Jidoka


Lean Tool #4: Flexible Resources & Standardized Work Cross training of workforce allows resource pooling

Use of IT in services


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WORKPLACE ORGANIZATION – 5S

Maintenance ofimproved conditionWaste identification and elimination

• Check what is needed and get rid of what is not used

• Place each item in its optimal position in the workplace and employ visual management

• Keep the area and equipment always clean. Set a cleaning program

• Improve and maint-ain the first 3 "S" by improving the en-vironment: – visual controls– standard machine

improvements– standard procedures

for all similar areas

• Employ systems to monitor 5S and ensure that it is constantly maintained

Organize the workplace with the aim to• Identify and eliminate waste• Maintain and continuously improve the workplace/equipment• Improve morale and increase worker involvement

Objectives

Sort Set in order Shine SustainStandardize

5S is a structured approach to systematically clean and organize the workplace to support a lean working environment


Lean Tool #5: Heijunka Mixed Level/Balanced Production

Batch Production Schedule Mixed Production Schedule(AAAABBBB..) (ABAB...)

Product April 1.................15...........................30 April 1....................15.......................30

A

B

time

FGI

time

FGI




SILS: shipping in line sequenceBusiness Mall adjacent to Russelsheim’s LeanField


Lean Tool #6: From Functional Layout to Product Cell organization

ProductionControl

RoofCut

BaseCut

FA BaseAssy

ProductionControl

ProductionControl

ProductionControl

RoofCut

RoofCut

RoofCut

BaseCut

BaseCut

BaseCut

BaseAssy

BaseAssy

BaseAssyFA FA FA

Department 1

Department 2 Department 2

Department 2Department 2

Cell 1

ProductionControl

RoofCut

BaseCut

FA BaseAssy

Cell 3

ProductionControl

RoofCut

BaseCut

FA BaseAssy

Cell 2


Scrap &Rework

Missed Due DatesToo Much Space

Late Deliveries

Poor Quality

Machine Downtime

Engineering Change Orders

Long queues

Too much paperwork

100% inspection

Inve

ntor

y

Towards a system of continuous improvement: Increase Problem Visibility– Lower water to expose rocks


Visibility: Time plays the role of Inventory in Lean Service Operations

TIME


Towards a system of continuous improvement: Kaizen Tools

Reduce variability– Standard operating procedures

Increase visibility of waste and quality at source– Line-stopping empowerment (Andon)– Quality inspection: Self & Automated (Jidoka)– Fool-proof/Fail-safe design (Poka-Yoke)

Targeted improvements: root cause analysis (6 Why’s)– Active worker involvement– Time for experimentation– Supplier involvement

Exploratory stress

Human infrastructure & process measurement and review (visual management)


Learning ObjectivesLean Operations

Paradigm of Lean Operations: Strive for the ideal by eliminating waste This is a total business management system

Synchronization Tools1. Reduced batch sizes2. Pull production control systems (vs. push)—JIT & Kanban control3. Quality at the source4. Resource pooling5. Level loading (Heijunka)6. Layout: Cellular operations

Set up a System for Continuous Improvement1. Reduce variability (standard operating procedures)2. Increase visibility (river analogy)3. Improve human infrastructure



Sears (SHC) does actually have a whole social media team who handles their Twitter and Facebook accounts. They are VERY pro-active on those accounts. SHC contracts out to Viewpoints, which is the company I work for. We run the MySears, MyKmart and Craftsman Community platforms for them, and handle customer service in a pro-active way on those accounts

Along with the senior customer service reps, and folks at corporate, MySears is very fortunate to have a handful of associates or call center employees who pop on to assist, as well. They are not paid, but are influencers who receive an "Advisor" recognition badge for their help. We wish we had more folks like these, as their contributions are most helpful.

Here are a few threads that we would consider "wins" for SHC, as the site helped solve an issue or complaint for a particular customer:– This member was all over the board complaining about the Sears "Lifetime Warranty" on Tools. He

ended up connecting with the VP of Tools through the site, something that would be impossible without utilizing social media: http://www.mysears.com/Tools--7018/topics/WARRANTY-ISSUES/posts

– Someone who visited having issues with their washer: http://www.mysears.com/Appliances/topics/Kenmore-3-1-CU-FT-IEC-High-Efficiency-Front-Load-Washer-model-42052/posts?page=1

– One of the above mentioned "Advisor" that help. This member who offered his suggestion is actually a retired service techinician who hangs out a bunch on the site: http://www.mysears.com/Dishwashers--3933/topics/Washer-model-number-665-17033402/posts?page=1#post_199551

http://www.mysears.com/Tools--7018/topics/WARRANTY-ISSUES/posts

http://www.mysears.com/Appliances/topics/Kenmore-3-1-CU-FT-IEC-High-Efficiency-Front-Load-Washer-model-42052/posts?page=1

http://www.mysears.com/Appliances/topics/Kenmore-3-1-CU-FT-IEC-High-Efficiency-Front-Load-Washer-model-42052/posts?page=1

http://www.mysears.com/Dishwashers--3933/topics/Washer-model-number-665-17033402/posts?page=1

http://www.mysears.com/Dishwashers--3933/topics/Washer-model-number-665-17033402/posts?page=1

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Lean Operations