© S A Partners 1993 - 2011Inspiring success through pioneering, process-based solutions

Lean Symposium

5th April 2011

John Quirke & Prof Peter Hines

© S A Partners 1993 - 2011

Purpose of the Workshop

This workshop is designed to review fundamental

Lean principles behind good workplace organisation

and design

We will hit on

Lean Principles and Eight Wastes

Lean Business model

Do some stuff!

© S A Partners 1993 - 2011

S A Partners Facts and figures

Founded 1993 by Prof Peter Hines to transfer the

learning from the research on Toyota Motor Co

in Japan into the UK market – one of the longest

established Lean Thinking consultancy practice

in Europe.

Currently forty full time employees and partners

who are employed full time by S A Partners– one

of the largest specialist Lean Thinking

consultancy practice in Europe. Plus a network

of approved associates.

© S A Partners 1993 - 2011

Some of our Clients

© S A Partners 1993 - 2011Inspiring success through pioneering, process-based solutions

A simulation

Lean Thinking

© S A Partners 1993 - 2011

To give the participants an understanding of the Lean

Thinking Principles as they apply to “Order Fulfilment

Process”.

To demonstrate, through action learning, how the

application of the Lean Thinking Principles can lead to

significant performance improvement.

Objectives of the Simulation

© S A Partners 1993 - 2011

You are a competing Manufacturing Company.

You are competing for a big contract with an

important customer.

The product is new, but has been proven by the

customer

There is nothing like it in the marketplace.

The Context

© S A Partners 1993 - 2011Inspiring success through pioneering, process-based solutions

Lean Thinking

and Workplace Organisation

© S A Partners 1993 - 2011

Lean Thinking – A Definition

Lean Thinking involves using less of everything – capital, inventories, time, human

effort – across all aspects of production and service delivery.

It focuses on the identification and elimination of waste in all processes so that all

activities throughout the supply chain add value to the customer

Support

35%

Waste

60%

Value Added

Activities

5%

MAXIMISE

OPTIMISE

ELIMINATE

© S A Partners 1993 - 2011

Waste(Muda)

Non value adding to

the product or service

in the eyes of the

customer

Unrealised

People

Potential

TransportingUnnecessary

Inventory

Defects

Over

Production

Waiting

Inappropriate

Processing

Unnecessary

Motion

The Eight Wastes

© S A Partners 1993 - 2011

The Lean Business Model

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Principles & Disciplines of Lean

Principles Disciplines

Specify customer value Voice of the customer

Manage by fact

Prioritise the vital few

Integrate the value stream Involvement of all

Communication

Make the offering flow Single piece flow

Visualise abnormalities

Establish root cause

At the point of activity

Everything in it’s place / place for everything

At the pull of the customer Pull is better than push

Automate decision making

Stock is a tool

In pursuit of perfection Prevention not detection

Process capability

Roles & responsibility

Pilo

t to p

rove

Pla

n, d

o, c

heck, a

ct

© S A Partners 1993 - 2011

Imp

rovem

en

t O

pp

ort

un

ity

Time

Short term

gains made

Lost and repeated results

due to no sustainability

Results could be lost entirely

if organizational structure not

aligned to support and education

level of all employees not increased.

Improvement leveled off

and eventually stopped

due to lack of realizing

“true” lean opportunity

Greater, sustained

results achieved

Awareness, education,

organisation structure

created to support lean

Kaizen Blitz vs. Lean Management

Source: C. Craycraft, Whirlpool

© S A Partners 1993 - 2011

Strategy Deployment

The vision, goals and

strategy are clearly

communicated throughout

the organisation with key

measures, targets and

activities appropriately

deployed

Alignment &

Engagement

Management

Process

Strategic

Direction

© S A Partners 1993 - 2011

Cascading the strategy into the business

Business Level Cockpit

Sales Cockpit Product Development

Cockpit

HRM CockpitOperations Cockpit

Marketing

Sales (Key Accounts)

Customer Service

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Process Level KPI Monitoring

HR Dept

Sales Dept

Press Shop

Quality Dept

Toolroom

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Workplace organisation in Practice

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Workplace organisation should....

Deliver defined results

Solve specific issues, quality concerns, parts

shortage etc

Become part of standard work activities

Create measurable standards for cleanliness, hygiene,

safety

Be driven by senior management as part of Gemba

process

Be linked to specific strategy objective of the

business

© S A Partners 1993 - 2011

[19]

Organising – Set-in-order

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Apply workplace

organisation to achieve a

specific result

Improve work conditions and Safety

TPM used to improve Machine

reliability

SMED applied to reduce

changeovers

All applied at the critical points

(bottlenecks) of the Value Stream

TPM

5S

© S A Partners 1993 - 2011

Workplace organisation

Visual Systems for Self-Managing Teams

Ticket Systems to align in-process demands

Physical Systems for material Replenishment

Technology “CAM-BANS”

System applied to selected - Runner /

Repeater and Stranger Products

Physical Set-up & Tickets

Self-Managing Kanban BoardsCAM-BAN Technology

© S A Partners 1993 - 2011

filename [22]

Organising – for SMED

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[23]

Why clean?

Eliminate

dirt and

grime

Cleaning

is

checking

Maintain

Optimum

condition

s

© S A Partners 1993 - 2011

filename [24]

Standardising

May-04

1

4 Check that chains are not missing from their marked location

5 Check that lever tools are not missing from their marked location

3a

Check pressure gauges are running within the marked areas (adjust as required)

3b Check oil is above marked level

Lean Team

Check oil is above marked level through perspex window1

2 Check clamps are not missing and that oil is above marked level

SAFETY INSTRUCTIONS Ensure that the unit is safely isolated clean & check begins

REPORTING INSTRUCTIONS Operators to report any problems found to Supervisor immediately

No Clean and Check InstructionsMachine

Ref No

Issue

Date

START OF SHIFT CHECK

Prepared by

1 2 3a

3b 4 5

200.02………..

© S A Partners 1993 - 2011

[25]

Clean and Check Procedure

DAILY CLEAN & CHECK

example

• Remove Assembly

Pieces from Bench

• Put Back to Location

• Empty Reject Bins

• Floor to be Cleaned for

Dirt and Loose parts

WEEKLY CLEAN & CHECK

• Wipe over all surface

including machinery

© S A Partners 1993 - 2011

Tools & Techniques - A Sales Process Example

Align with Key Strategies

Set Challenges Targets for Quotations

Team to “Map” the key process steps

Identify Muri, Mura and Muda

5S Now has a “PURPOSE”

Improve Speed of Quotation

HHImprove Speed of quotation6

CustomerBusiness

HHGenerate correct RFQ,s – in line

with business objectives

5

MHImprove Conversion rate7

HHProactive /skilled KAM 4

HHFocus on new business -added

value

3

HHUnderstand Customer

values/satisfaction & exceed

expectations

2

MHAccurate analysis of markets &

competitors

1

Impact Critical Success FactorsStrategy

HHImprove Speed of quotation6

CustomerBusiness

HHGenerate correct RFQ,s – in line

with business objectives

5

MHImprove Conversion rate7

HHProactive /skilled KAM 4

HHFocus on new business -added

value

3

HHUnderstand Customer

values/satisfaction & exceed

expectations

2

MHAccurate analysis of markets &

competitors

1

Impact Critical Success FactorsStrategy

Sales Team review Quotation Steps

© S A Partners 1993 - 2011

Tools & Techniques –

A Sales Process Example

Separate enquiry desk (non-routine work)

Team based levelling systems

Visual Management to improve Sales

Quotation Process & Procedures

Level Loading for work flowVisual Mgt

Dedicated flow for routine tasks

© S A Partners 1993 - 2011

Sustainable Lean Management

Source: P. Hines, P. Found, G. Griffiths & R. Harrison, Staying Lean, 2008

Lean Management

© S A Partners 1993 - 2011

THANK YOU

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