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FOUR LEAN PRINCIPLES EVERYONE SHOULD USE Todd Mills, President Todd Mills Enterprises, Inc 1

Lean Principles Everyone Should Use (Final)

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FOUR LEAN PRINCIPLES EVERYONE SHOULD USE

Todd Mills, President Todd Mills Enterprises, Inc

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LEAN PRINCIPLES

Strive to Eliminate the Seven Types of Muda (Waste)

Practice Lean Problem Solving

Remember Kaizen (Continuous Improvement) Can’t Come First

Apply Mendomi Thinking

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“MUDA” is a Japanese word for an activity that is wasteful, unproductive, or does not add value.

To transition to a lean culture we must find and eliminate waste continuously.

The types of waste we will discuss apply to construction, manufacturing, and even the office environment.

Reducing muda will positively effect cost, productivity, quality, and safety.

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THE SEVEN TYPES OF MUDA

THE SEVEN TYPES OF MUDA

1. Repair - rework or disposing of quality defects

2. Overproduction - producing products in excess or ahead of demand (keeps machines & people busy)

3. Processing - using incapable equipment; process/project flow not smooth; too many reviews

4. Conveyance - excessive handling of parts/materials

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THE SEVEN TYPES OF MUDA

5. Inventory - having materials, parts, and equipment in excess of the minimum needed

6. Motion - action or activity that is performed by a person or equipment that does not add value

7. Waiting - waiting for parts, materials, or equipment to arrive or waiting for machines/equipment to finish work

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THE SEVEN TYPES OF MUDA

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Look at the photo below. From a “road construction project” perspective, what types of muda do you see?

• Conveyance - excessive handling • Motion - performing work that

does not add value

LEAN PROBLEM SOLVING

A quick Google search found over 91 million results in less than a second for “problem solving”.

Problem solving is a key tenet of lean, yet it remains illusive to many.

Einstein knew the secret!

I will share a 7-step technique to help you prioritize and address root causes of large scale problems.

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“If I had an hour to solve a problem I'd spend 55 minutes thinking about the problem and 5 minutes thinking about solutions.” ― Albert Einstein

LEAN PROBLEM SOLVING1. Clearly understand your problem & visualize it.

a. What is the current condition? b. What is the “perfect” condition? c. Visually show (graph/chart) the gap.

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JSAs Signed by Workers Before the Jobs Started (YTD)

0

10

20

30

40

50

Current Ideal

50

20

GAP = 30

LEAN PROBLEM SOLVING2. Break down your problem into smaller problems.

a. Break down occurrence frequency by key variables (e.g., where, when, who, etc.). Try different combinations.

b. The data will funnel you where you need to go.

c. Personally travel to the location and grasp the condition. (Genchi genbutsu - “Go and see.”)

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30 jobs did not have signed JSAs before work began

New York (3)

San Diego (19)

Vancouver (1)

Toronto (5)

Denver (2)

Electrical (3)

Roofing (14)

Piping (2)

Shift? Supervisors?

Your end point is called the “prioritized problem”

3. Set Your Target for the Prioritized Problem a. You will commit to reduce/improve what, by how much, by

when. b. Show in graph/chart the impact to the prioritized problem &

what portion of the larger problem (gap) you will address.

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LEAN PROBLEM SOLVING

Target Impact to Prioritized Problem

0

7

14

Actual Target

14

0

Target: After November 1st, 2016 all (100%) JSAs for roofing work at the San Diego project will be signed by craftworkers before they start the job.

Target Impact to Overall Goal (Gap n=30)

47%53% No Good

Good(14)

(16)

4. Conduct Root Cause(s) Analysis a. Remain unbiased and consider multiple potential causes. b. Use fact-based connections. Use what you learned when you

went to see the condition. c. Use the “Therefore” test.

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LEAN PROBLEM SOLVING

At the San Diego Project 14 (of “X” number of) JSAs were not reviewed with workers prior to the job

Why?Why?

Why?Why?

Why? Until you get to the root cause!Therefore…

Therefore…Therefore…

Therefore…

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LEAN PROBLEM SOLVING5. Develop Your Countermeasures

a. Create a list of potential countermeasures to address ROOT causes.

b. Create a countermeasure “criteria matrix” and rate the potential countermeasures.

d. Review with stakeholders and get buy-in (nemawashi). e. Document your action plan (what, when, who).

Countermeasures Safety Cost Time Resources Overall Who/Timing

Add requirement for JSA signature in bid package; confirm contractor training updated Sally B (9/29)

Update current Management safety audit to include JSA review & report at daily mtg. Bill M (9/22)

Upgrade to tablet tech to take pictures of JSAs in fields and provide real time data X X n/a

San Diego Project Director reports status at Weekly VP Meeting. Julie F (10/1)

= Partially Meets= Meets Expectations = UnacceptableX

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LEAN PROBLEM SOLVING6. Implement Your Countermeasures & Monitor Results

a. Work with stakeholders and team member to implement quickly, but allow time for stabilization.

b. Monitor & evaluate your results and your PROCESSES! Consider multiple viewpoints; your “customers’”, your company’s, and your viewpoint.

7. Formally document the new standardized processes a. Make each effective countermeasure a written standard with

clear documentation and training. b. Share with key stakeholders across the organization. c. Periodically observe actual condition to standard.

Which is why I say….

KAIZEN CAN’T COME FIRST

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“Kaizen” is a Japanese word meaning continuous improvement.

It is usually interpreted in business as making gradual improvement versus major leaps.

Before kaizen there must be a standard process for workers to follow.

That standard is what is “kaizened”!

KAIZEN CAN’T COME FIRST

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Quality Percentage

0.75

0.8

0.85

0.9

0.95

1

Feb Mar April May June July Aug Sep Oct Nov Dec Jan

Confirm the standard is

documented, understood, &

followed!

1. Genchi genbutsu & problem solving

2. Kaizen #1

3. Kaizen #2

(Stabilize)

(Stabilize)

Target

Example of a Kaizen Process

MENDOMI THINKING

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“Mendomi” is a Japanese word meaning taking care of our workers like they were family.

The journey to lean often (wrongly) focuses solely on processes and techniques.

It works best in an environment that fosters open, honest communication and mutual respect.

When having discussions and making decisions consider others as family (that you like/love!).

A BONUS MUDA!

We often hear our most valuable asset is….

How much more productive would employees be if they were:

encouraged to kaizen processes to eliminate waste & recognized for doing so?

given challenging problems and provided a process to find practical solutions?

held accountable, but had open communication with supervisors & co-workers and were treated with respect?

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IN SUMMARY

Always be on the lookout to eliminate muda on all work process.

Muda can effect safety, quality, cost, and productivity.

Use a fact based, systematic approach to solve large problems.

It’s okay to spend more time analyzing the problem that working on solutions.

Remember the “Therefore” test.

Kaizen is based on improvement to a standard.

Take care of your employees and contractors like they are your family.

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THE LEAN JOURNEY

Some things to keep in mind…

There is no end to the lean journey.

Best results will happen with open communication, mutual respect, and accountability.

It requires TREMENDOUS discipline.

Without a doubt, it is worth the effort!19

FOUR LEAN PRINCIPLES EVERYONE SHOULD USE

Todd Mills, President Todd Mills Enterprises, Inc

[email protected] 859 866-2813

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Thank you for your time! Questions or comments?