Professional Documents
Culture Documents
Advanced Lean
LEAN: Delivering value to Customers
with shortest turn around time
Advanced Lean
Agenda
• Lean Overview ~ Recap…..
• Lean Methodology
• Lean Toolkit
• Lean Deployment
• Lean Resources
Advanced Lean
• Lean Overview ~ Recap….
Ø Lean History
Ø Lean Explained
Ø Lean Benefits
Ø Lean Usage
Ø Lean Basic Toolkit
• Lean Methodology
• Lean Advanced Toolkit
• Lean Deployment
• Lean Resources
Advanced Lean
Lean History Recap…
TOYOTA
Toyota
Production System
JustinTime
People
Jidoka
• Single Piece Flow • Autonomation
• Pull Production People • BuiltIn Quality
• TAKT Time Production • Stopping at
People Abnormalities
Heijunka
• Level Loading
• Sequencing
• Stability
Some Key Lean Concepts developed at Toyota
Advanced Lean
Lean Thinking Recap…
A principle driven, tool based philosophy that focuses on
eliminating waste so that all activities/steps add value
from the customers perspective.
Lean Thinking is all about continuous waste elimination !
Imagine Office Processes with:
• Higher Customer Satisfaction
)O f f i c e
• Shorter Lead Time
(B a ck g e
i n g n t a
• Higher Flexibility M ak ic a d va
• Higher Quality s t r ateg
a
• Lower Costs
• Higher Employee Satisfaction
Advanced Lean
Lean Explained Recap…
What is Lean?
A strategy, philosophy, process and leadership approach for operating in a
superior way. Results include:
Ø Reduced cycle times (product development and production)
Ø Increased quality
Ø Reduced costs and inventory
Ø Increased capacity potential
Ø Improved customer service
Ø High levels of worker involvement, ownership and commitment
Ø Improved financial returns
Lean concepts apply across all processes and industries
Advanced Lean
Lean Explained Recap…
The conventional way: Price = cost +Profit
Increase profit by Price Increase
Price to sell
Bigger profit
Some profit
Cost to produce
But, may lose customers!
Advanced Lean
Lean Explained Recap…
The new way: Price cost =Profit
Increase profit by Cost Reduction
Price to sell
Some profit Bigger profit
Cost to produce
Advanced Lean
Lean Benefits Recap…
Cycle Time
Wait Time
(non value
add) Before
Work Time
(value add) After
Same work
completed in
less time
üProductivity
üCost
üCustomer satisfaction Cost/Chaos
üDefects üProfit
üLead time üCustomer responsiveness
üInventory
üCapacity
üSpace üQuality
üWaste! üCash flow
Cycle time
üOn time delivery
Relentless Focus on Reducing non value adding activities
Advanced Lean
Lean Usage Recap…
Lean vs. Six Sigma
Methodology
Strengths
Apply Any Tool from your Quality Tool Box
Advanced Lean
Lean Usage Recap…
When do I use Lean?
Six Sigma
Hybrid AWO
Project
Effort
Effort
Effort
Time Time Time
Lean For Quick Fixes….Six Sigma For Complex Processes !!
Advanced Lean
Lean Usage Recap…
Lean vs. Six Sigma?
Lean Simple or Wing to wing Breadth
Six Sigma Complex and Focused Depth
Lean Lean Six Sigma Six Sigma/Lean
Helps identify steps that don’t add Identifies problems in Improves the capability of Improving the capability can
value and provides tools to eliminate the flow steps that do add value eliminate additional steps
them
X Energizing
X
Empowering
Lean
Team work,
Success Boundary less / Open mindset GE
Passion for improvement
Factors/ Intuition / Action Values
Impact Customer focus
Lean: Strengthens GE’s journey to Excellence
Advanced Lean
Lean Usage Recap…
So, why do I need Lean?
Principle New ways to think about problems
Toolkit
New problem solving tools and concepts
Process
An improvement methodology focused on action
Solutions
Simple Complex
We Need Lean to be Leaner Quickly…Let us start it!!
Advanced Lean
Where are we going…
Advanced tools
Tool
• Creating Continuous
Flow
• Pull production
Basic tools
Tool Challenge
• Value Stream Mapping, • More waste reduction
other lean tools, etc. • Real continuous flow
• Flexible workforce
Old situation Results • Less variance
• Reduction of waste • Less waste
Issues • Learned to ‘see the flow’
• Inventory
• Couple of improvements
• Waiting
• Defects
• …
Remaining Issues
• No real continuous flow
• Still significant amount of
No flow in the value
waste.
stream.
Processes full of waste
Advanced Lean
Lean Toolkit Recap…
Level 1 Level 2
Reduce Variability
Control the Process
Tool Sophistication
· Value Stream Mapping
Expose the Waste · Standardized Work
· Intro to Continuous Flow
· 5S · Intro to Pull Production
· MUDA
· Mistake proofing
· Intro to Value Stream Mapping
· Visual Management
Time / Cultural Maturity
Applying the right tools at the right stage
Advanced Lean
Lean Tools Overview Recap…
A number of Lean Tools and Techniques are available
Actions Tools and Techniques
Bring Organization & 5S Framework
Cleanliness to work
area
Understand Value Stream Mapping
Value
Implement pull Kanban, Justin Time
based flow
Reconfigure work UShaped Cells
areas
Institute continuous Kaizen Events
improvement philosophy
Benefits
Realized
Appropriate Tools and Techniques are to be used depending on
the need
Advanced Lean
Lean Tools Description Recap…
Exposing the Waste ~ Recap…..
Ø 5S
Ø 7 Wastes
Ø Mistake proofing
Ø Visual Management
Advanced Lean
5S Recap…
5S – A Framework to create and maintain your workplace
1. S: SORT (Organization)
Distinguish between what is and is not needed
2. S: SET IN ORDER (Orderliness)
A place for everything and everything in its place
3. S: SHINE (Cleanliness)
Cleaning and looking for ways to keep it clean
4. S: STANDARDIZE (Adherence)
Clearly define Tasks and Procedures
5. S: SUSTAIN/SYSTEMIZE (SelfDiscipline)
Stick to the rules, scrupulously
Implementing the 5S is often the first step in Lean
Transformation
Advanced Lean
Muda ~ 7 Wastes Recap…
MUDA – Lean is a way to continuously eliminate waste
The Seven Deadly Wastes Examples Incorrect Layouts of office, factory, etc.
Lack of Proximity Of Machines
Offline Resources
Motion
Watching Machines Work
Long Setups and Lead Times
People
Waiting
Large Batches and Inventory
Planning Full Utilization of Machines and Labor
Overproduction Producing More Goods than Marked Demand
Poor Machine Maintenance
Unnecessary Processing Steps
Processing Longer Lead Times
Process
Long Delays for Troubleshooting
Defects Costly Rework
Dissatisfied Downstream Customers
Inventory High Stocks of Raw Material, WIP, & Finished Goods
Additional Space Requirements
Clutter
Product
Transportation Unnecessary Movement
Extra Handling
“Moving Inventory”
At the end, everything results in Cost!!
Advanced Lean
Mistake Proofing Overview Recap…
• A technique for eliminating errors
• Making it impossible to make mistakes
BEST Elimination
> Eliminate the possibility of error
Replacement Use the highest level
Use the highest level
> Substitute a more reliable process
possible for the
possible for the
Facilitation
BETTER application.
application.
> Make work simpler to perform
Detection
> Detect the error at the defect source
Mitigation
GOOD > Minimize the effect
It is good to do it right the first time; it is even better to make it impossible
to do it wrong the first time.
Advanced Lean
Visual Management Overview Recap…
Why Visual Management ….
• Demonstrate how we manage our processes …Consistent Communication
• Excite customers/ stakeholders walking the floor … Visual Management
• Transparent view of Performance … Shared Ownership
• Escalate abnormalities… Quicker Resolution
• Decision making @ working level … Empowerment
• Showcase Successes … Create a sense of Pride
Seeing is Believing
Advanced Lean
• Lean Overview … Recap
• Lean Methodology
Ø Five Lean Principles
• Lean Advanced Toolkit
• Lean Deployment
• Lean Resources
Advanced Lean
Five Lean Principles
Lean Enterprise
Raw Tier 2 Tier 1 General Customer
Materials Suppliers Suppliers Electric
LEAN OFFICE
LEAN ENTERPRISE
Lean Enterprise: Maximizing Value Wing to Wing
Advanced Lean
Five Lean Principles
Lean Thinking
The Fundamental Objective The Fundamental Insight
Provide perfect value to the Ø Focus on each product and its
customer through a perfect value value stream rather than
creation process with zero waste organizations, assets, process
in: technologies, and career paths
Ø Design (concept to customer) Ø Ask which activities are waste
and which truly create value
Ø Build (order to delivery)
Ø Enhance value & eliminate waste
Ø Service (order to cash)
Lean: Fundamentally Change how we do business
Advanced Lean
Five Lean Principles
Define value in from the 1 2 Map all of the steps…value
customers perspective and Specify Value Map the added & nonvalue
express value in terms of a Value Stream added…that bring a product
specific product of service to the customer
3
5 Establish
Work to Flow
Perfection
The complete elimination The continuous movement of
of waste so all activities products, services and
create value for the information from end to end
customer through the process
4
Implement
Pull
Nothing is done by the upstream
process until the downstream
customer signals the need
The Tools get you there…The Principles keep you there
Advanced Lean
Five Lean Principles
1. Specify Value A capability provided to a customer at the right time at an
appropriate price, as defined in each case by the customer.
ü Specify value from the standpoint of the end Waste:
customer Ø Activities that add no value,
add cost and time
ü Ask how your current products/services and
processes disappoint your customer’s value Ø Symptoms; need to find root
expectation: causes and eliminate them
Ø 7 types of waste
Ø price?
Ø quality?
Incidental
•Incidental
Ø reliable delivery? Work
•Work
Pure Waste
•Pure Waste
Ø rapid response to changing needs?
Ø fundamental definition of the product? •Pure Waste
Value
•Value
Typical Operation: 110% Activities are Value Adding
•Value
Advanced Lean
Five Lean Principles
“Whenever there is a product or service for a customer, there is a
2. Map the value stream. The challenge lies in seeing it.”
Value Stream (Womack, Learning To See)
Ø Identify all of the steps currently Value stream
required
All activities, both value added and
to move products from order to delivery
nonvalue added, required to bring a
Ø Challenge every step: Why is this product (or provide a capability) from
necessary? Would the customer think raw material (initialization) into the
the product is worth less if this step arm of the customer
could be left out?
3 Main Value Streams:
Ø Many steps are only necessary
because of the way firms are 1. Raw material to customer
organized and previous decisions
about assets and technologies 2. Concept to launch
3. Order to cash
Mapping the VS – See the whole and improve the system
Advanced Lean
Five Lean Principles
3. Establish Flow Line up all steps that truly create value in a rapid sequence
ü Continuous movement of ü Require that every step in the process be:
products, services and
information through the various Ø Capable – right every time (6 Sigma)
transactions from end to end in
Ø Available – always able to run (TPM)
the process
ü Flow appears impractical and Ø Adequate – with capacity to avoid bottlenecks
illogical because we have been and over capitalization (rightsized tools)
trained to think in terms of:
Ø departments, silos
Ø batches, queues
Ø efficiencies and backlogs
Batch Processing – 1 minute per piece Continuous Flow – Make One Move One
A B C A B C
Cycle Time= 30++ Min (weeks) Cycle Time= 12 Min
Applying the right tools at the right stage
Advanced Lean
Five Lean Principles
4. Implement Pull Nothing is done downstream until required upstream
ü A system of cascading ü Through lead time compression &
production and delivery correct value specification, let
instructions in which nothing is customers get exactly what’s wanted
done by the upstream supplier exactly when it’s wanted:
until the downstream customer
signals the need Ø At the pull of the customer/next
process
Ø Using signals (kanbans)
One more
Okay
please!
supplier customer
Pull: Customer Centric
Advanced Lean
Five Lean Principles
5. Work to Perfection A continual cycle of process improvements
ü There is always more waste
ü People learn and exercise more creativity
ü Involve employees in the process, training them as you proceed.
ü Continuous improvement leads to innovation
ü Use root cause analysis to solve problems promptly and Next Future State
permanently.
ü Make objectives visible
Future State
Current State Original State
Continuous Improvement never stops
Advanced Lean
Lean Advanced Toolkit
Level 1 Level 2
Reduce Variability
Control the Process
Tool Sophistication
· Value Stream Mapping
Expose the Waste · Standardized Work
· Intro to Continuous Flow
· 5S · Intro to Pull Production
· MUDA
· Mistake proofing
· Intro to Value Stream Mapping
· Visual Management
Time / Cultural Maturity
Applying the right tools at the right stage
Advanced Lean
Lean Tools Description
Reduce Variability
Control the Process
Ø Value Stream Mapping
Ø Standardized Work
Ø Introduction to Continuous flow
Ø Introduction to Pull production
<Action Work Out>
Advanced Lean
Value Stream Mapping
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Advanced Lean
Value Stream Overview
View of the entire Supply Chain
TOTAL VALUE STREAM
See the Whole Process from Start to Finish – Wing to Wing
Advanced Lean
Value Stream Overview
• Value Stream Mapping (VSM) is a pencil and paper tool that helps us see
and understand the flow of material and information as a product makes its
way through the Value Stream
• Follow the product or services path starting from the Customer and then
move to the supplier and carefully draw a visual representation of every
process
• Ask a set of key questions and draw a “Future State” map of how value
should flow
• Help us see the sources of Waste and eliminate them
Looking at the process from a customer value perspective
Advanced Lean
Value Stream Mapping
Why Value Stream Mapping is a good place to start your LEAN journey
• it helps you visualize more than just the singleprocess level, i.e. assembly,
welding, etc.
• it helps you see more than waste it helps you see the sources of waste in
your value stream
• it provides a common language for talking about manufacturing processes
• it makes decisions about the flow apparent, so you can discuss them
• it ties together lean concepts and techniques helps you avoid "cherry picking"
• it forms the basis of an implementation plan
• it shows the linkage between the information flow and the material flow
Forms the Blueprint for a Lean Implementation Plan
Advanced Lean
Value Stream Mapping
VSM Steps
• Identify the Value Stream for every major
Product Family
Product Family product family/program. Concept to launch
Order to delivery
Current State
Current State • Map the current state Identify all the actions
Drawing
Drawing that don’t create value. Challenge every step
• Develop and map concepts for the future
Future State state as a management team
Future State
Drawing
Drawing
3
Implementation • Develop actions and drive toward future state
Implementation
Plan
Plan
After completion….look for other opportunities to improve
Advanced Lean
Value Stream Mapping
Current Future
Flow:
Dash Value Stream M ap – Initial State Dash – Lean Project Funnel
Information OPSI 13 W EEK FORECAST OPSI 13 W EEK FORECAST
Material Sales Sales
Forecast Forecast
4 W EEK 4 W EEK Too Much
Prod‛n Cont. Prod‛n Cont.
FORECAST Prod‛n Cont. FORECAST Prod‛n Cont.
13 W EEK 13 WEEK Variation
FORECAST
GEC Weekly CRC Orders FORECAST
GEC Weekly CRC Orders
HLA HLA
Daily Orders Daily Orders Hei jun ka
Daily Daily
Orders MRP Orders MRP
Too Much
Suppliers Customer Suppliers Too Much Variation Customer
Daily Variation Daily Heiju nka
Schedule Schedule
Heijun ka
• Portable Unit
• Monitors Patient Vitals
• Produce ~4,000/Qtr Irregular Cr eate Su perm ar ket Irregular
• Over 30,000 Variations
Too Much
Inventory Creat e Su p erm ar ket
Brd s + RIP Brds + RIP
3 Bd . A ssy. $3,30 0,00 0 3 Bd. Assy .
T est W IP+FG $3 ,300,000
2,36 0 U nits 2,360 U nits Test W IP+FG
19 Day s W orth $1 ,700 ,000 19 Days W orth
$425 ,000 $425,000 $1,700,000
11 Days W o rt h 10 Day s W o rth 11 Days W orth
Too Much
10 Days W o rth
A ss’y W IP A ss’y W IP
21 0 U nits Create Sup er m arket 210 U nits Inventory
$5 13,000 $513,000
3 Day s W o rth Heiju nka, JIT 3 Day s W orth
Too Much J IT J IT JIT Heiju nka, Late Pt. ID
SM T HA TEST A SSY TEST CONF SHIP Inventory SM T HA TEST A SSY TEST CONF SHIP
Long Too Much
4 2 Set Ups Batch Batch Batch Batch
Raw Bds 3 2 2 6 6 Raw Bds 3 2 2 6 4 2
Variation 6
8 W KS N onValue Add NonValue Add
8 W KS
7 Days 3.5 Day s 10 Day s 10 Days 5 Days 1,020 Hrs. (98% of Tim e) 1,020 Hrs. (98% of Tim e)
8 Day s 7 Day s 3.5 Day s 8 Days 10 Days 10 Day s 5 Days
SM ED
15 M in . 42 M in . 24 M in . 30 M in. 1020 M in . 25 M in . 30 M in . V alue Add 15 M in. 42 M in. 24 M in. 30 M in. 1020 M in. 25 M in . 30 M in. Value Add
20 Hrs. (2% of Tim e) 20 Hrs. (2% of Time)
Template ~ Create your own
Create a Value
Value Stream Map Stream
Identify AWO opportunities from the Value Stream map
Advanced Lean
Value Stream Deployment
Roadmap
1. Set the strategy
2. Find a change agent (how about you?)
3. Get the knowledge
4. Do an Action Work Out
Action Work Out
5. Eliminate waste by executing the plan
6. Expand the scope to other areas
Don’t Wait!! – “Opportunities multiply as they are seized”
Advanced Lean
Trace Collection Process: VSM
EXTERNAL
AGENCY
GECFA
No Phones
Collections
L NL
GE Money
Mainframe EXITS
(Vision Plus)
L
X
029 days Mainframe c c c c
past due Workable/Non
V+,CPAC
IWP DMS c c
FCS Sentricx Hold
accounts ,ICBS
Workable App req
L = Locate
NL = No Locate
C = Call made Wait Time
Wait Time: up to 14 days Reduce TAT from 39Days
X = Routed
Value Add: ~ 35 Min to Less than 4 days
Advanced Lean
Value Stream Map From GE Rail ~ AWO
Before
Lead Time: 76 Days
59 Total Steps
After
Process Flow
Lead Time: 52.35 Days
59 Total Steps
Advanced Lean
Standardized Work
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Advanced Lean
Standard Work
Why have Standard Work? Waste Elimination
1. To make office process rules explicit
Establish the explicit methods for manual tasks with respect to
quality, quantity, cost and safety.
prevent wastes
2. A tool for Improvement
There can be no improvement in the absence of standards.
Abnormal situation show that something is going on.
expose wastes
Advanced Lean
Standard Work
The combination of people, information and material to carry out
an operation in the most efficient way
Office Processes
Normal vs. Abnormal • Often poorly defined
When normal and abnormal work activities are • Examples:
• Standardize Input
undifferentiated, waste almost inevitably occurs. • Handoff can create huge waiting
time. Reduce time by standardization
Standard Work provides an efficient framework
in which to determine when an abnormality has Flow effect
• Provide clarity about activities
occurred so that it can be addressed. • Reduce process variance
• Makes process reliable
• Exposes more waste
Identify Problems
The devil is in the details. If you do not specify the standard, you allow
wastes to occur that could be eliminated. But more important, it hinders
learning and improvement in the organization.
Specify content, sequence, timing and outcome to prevent and to expose
waste. However, keep in mind that the details have to improve the flow of
value as drawn in a value stream map.
A perfect example of Standard Work
1. Each worker understands their task.
2. All tools and equipment are at arms length
3. Standard work has been practiced to perfection
4. Continuous observation and analysis drives
continuous improvement
Types of Waste Eliminated
• Searching
• Finding
• Selecting
• Transporting
• Waiting
Advanced Lean
Levels of Standardization
Two levels for standardization for every type of item
A. Activity
B. Connection between activities
Connection
Activity Customer
Advanced Lean
Standard Activity
Customer
Activity
Standard Activity have to make the activity direct and unambiguous. On
a detailed level tasks/decisions/etc… should be specified.
When designing a Standard Activity keep in mind the follow elements:
1. TAKT time
2. Work sequence
3. Standard work in process
Advanced Lean
Standard Work: Takt Time
Element 1
Create Standard Work around Takt Time, keeping in mind the changes in Takt Time.
TAKT Time = the frequency at which a product or service must be competed
in order to meet customer needs
Rate of Customer Demand = Rate of Producing/Servicing
Available Time Office Processes
TAKT time formula: • Check any time if you’re on schedule:
Required Output Daily 400 invoices.
(Customer or Forecasted Demand) It is 13:30, are we on schedule?
Time
It’s 8:30 am. How are we doing?
Takt Time
60”
7 am 8 am 9 am 10 am 11 am noon
Person Orders
A B C D
(60”) (60”) (60”) (12”)
Advanced Lean
Standard Work: Work Sequence
Element 2
Standard Work Work Sequence
• What has to be done? The order in which an person performs a series of
• In what sequence? repetitive tasks. It should be differentiated from
the processing sequence, which is the order in
• How much time can it take?
which the part is processed.
Standard Work / Combination Sheet Standard Work Sheet
Production Line O perator Production Line Cell 6 Operator
N ew / Re v Page 1 of 1 Date 2/6 /0 2 A M X New / Rev Page 1 of 1 Date 2nd Qtr. ‘01 Part Number
All Parts
Use this
Orga nization Area Supe rvisor Part Number
Organization Area Supervisor
Standard Work
Part Name
Shannon Tubing CFM Cell Fern Bissonnette Standard Work Sheet Part Name All Tubes
X R ay Statio n 1 & 2 J. David Com bination Sheet
T ime Production R eq'd T akt/R ate T ime M anual T rave l ~~~ ~~~~~
Ste p Operation N ame X
Sec ( ) M in ( ) H r ( ) A uto W ait Orbital
10 20 30 40 50 60 70 74 80 90 Weld End Finish Weld End Finish
Template
N o.
M a nua l Auto T ravel Weld
1 C heck M otor 3 3
Flex
2 Issue DH R 2 2
3 Install Gen. H ousing 10 5
4 Install C lips 5 4 Outside Cell
Torch
5 Install Term. Strip 6 6
Braze FPI
6 Install/W ire Latch 4 4 X-Ray
7 Jum per W ire to Filter 10 6 Mech. Mech. EDM
Mark Hydro Test
Clean Clean
Weld End
Finish
Physical or digital design
Standard Work Sheet and Standard Work/Combination Sheet defines the Work Sequence
Advanced Lean
Standard Work: Standard WIP
Element 3
Set a Standard WIP in your Cell, if applicable to your office process.
The minimum Work in Process (WIP) required to perform
repetitive operations, and maintain a continuous flow.
Controls the inprocess inventory to ensure an even and controlled
process flow.
Standard WIP should be kept as low as possible.
Advanced Lean
Standard Connection
Connection
Customer
Handoffs (connection) are a big cause of waste in the office.
The connection between two activities (handoffs) is one of the biggest
causes of waste in the office.
Make sure that to standardize the connect between activities. Direct and
unambiguous specifying:
• …people involved
• …form and quantity to be provided
• …way requests are made by each customer
• …expected time in which the requests will be met (!)
• …
It creates a clear suppliercustomer relationship. This will reduce the
possibility for variance, which increases the quality standard in the office.
Advanced Lean
Standardization and Flexibility
Don’t “Manage” a Standard … Detect the Abnormality
Standardization makes abnormalities soon appear. By looking at the root
causes of the abnormalities, you understand what is going on, and give the
possibility to adjust.
Two solutions: (1) eliminate the abnormality, or if not possible (2) adjust the
standard to the new situation.
Standardization increases your awareness of changes. And through this
awareness you are able to adjust to these changes quickly, which
increases your flexibility.
Standardization helps to create a flexible multidisciplinary workforce. It is
easy for a person to take over work from another person.
Advanced Lean
Relation with other Lean Tools
Value Stream Mapping
First implement the improvements of the Future State
(e.g. continuous flow, 5S, etc.). Then use Standard
Work to standardize all the activities in and between
the processes. It will expose waste (by abnormalities)
and also prevents waste (keep everybody focused on
normal way of working).
Creating Continuous Flow
Standard Work helps to reduce variance allow the flow of value.
Less variance improves the capability to create real continuous flow.
Mistake Proofing / PokeYoke
Standard Work is the prerequisite for implementing Mistake
Proofing. Mistake Proofing has to prevent to have defects
going further on the line. If no standard, then defects
difficult to detect
Normal Abnormal
Advanced Lean
Relation with other Lean Tools
Don’t “Manage” a Standard … Detect the Abnormality
Look Here …
Visual Management
Standard Work is the prerequisite for good
visual management. It sets the standards
for the work. Visual management has the
objective to make abnormalities visual, so
actions can be make right away.
Kaizen
Standard Work provides a basis for
improvement, because it exposes waste by Standard
abnormalities. These abnormalities are
then subject to Kaizen Events to improve
the processes.
Not Here …
Advanced Lean
Summary
Standard Work
ü …prevents waste to occur.
ü …exposes waste and is the basis for continuous improvement.
ü …increases your flexibility.
Two levels of Standardization
1. Standard Activity
2. Standard Connection
Don’t “Manage” a Standard … Detect the Abnormality
Advanced Lean
Introduction to SinglePieceFlow
(Continuous Flow)
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Advanced Lean
SinglePieceFlow in a Cell
SinglePieceFlow A B C
Carrying out onepieceatatime
processing in order to eliminate
stagnation of work (queue) in and
between processing steps. A B C
Cell Physical Cell
An arrangement of people, systems, items,
and methods with the processing steps
placed right next to each other (physically or
digitally) in sequential order, through which Incoming
Forms
Output
parts are processed in a continuous flow.
Digital Cell
Advanced Lean
Batch Vs Single Piece Flow
Batch Single Piece Flow
From: The Toyota Production System
Catches Defects too Late Catches Defects Immediately
• How many more do you have? • You only have one
• Where are they in the process? • You know where it occurred
• What is the root cause? • Resolve the root cause immediately
The Next Process is the Customer … Never Send Defects !
Advanced Lean
Why Use Single Piece Flow ?
• * Single Piece Flow productivity can be improved by balancing processes versus
Takt Time
• ** Changeover time impact can be reduced by SMED or reducing changeover
frequency, but, in this case, by increasing finished goods inventory.
Single piece flow is always better with respect to FIFO
Advanced Lean
Where to start?
Creating Singlepieceflow Prerequisites
1 st time
Value Stream A. Value Stream Mapping
Mapping
Process Level See the flow
Process Level
Single Facility
Single Facility
(doortodoor)
(doortodoor)
Multiple
Multiple
Service Facilities
Service Facilities
Across Companies
Across Companies B. An (potential) area for
Cell
Advanced Lean
Which process area?
Supplier = Customer ?
Yes
A main characteristic for office processes is that the customer of the process is often the
supplier of the needed information for doing the whole value stream, as well. Therefore,
the customer often has to wait for the whole lead time of the process.
Start within the area with the
biggest potential of leadtime reduction.
No
Start with the pacemaker process.
That are the process steps in the value stream
that are closed to the customer.
Advanced Lean
Roadmap Creating Continuous Flow
1. Cell Content
Start looking at what items you should have in the cell.
2. Actual Work
Then analyze actual work to be done in the cell.
3. System, Item, and Layout
Optimize System, Item, and Cell Layout for creating continuous flow.
Going to reduce waste out of:
4. Work Distribution
• Steps
Distribute the Work among the People
• People activities
5. Implement, Sustain, and Improve • System activities
Actual implementation of Continuous Flow in a Cell • Item design
• Layout
We are going to look at the cell with Eyes for Flow
Advanced Lean
Questions for Creating Continuous Flow
Key questions
Cell Content
• Do you have the right end items?
• What is the Takt Time?
Actual Work
• What are the work elements necessary to make one piece?
• What is the actual time required for each work element?
System, Item and Layout for Flow
• Is your System suitable for flow?
• Is your item design for optimal continuous flow?
• How can the process be laid out so one person can make one piece as efficiently
as possible?
Work Distribution
• How to use your people efficiently?
• How will you distribute the work among the people?
Advanced Lean
Do you have the right items?
Think carefully about assigning right items to your cell.
Here are some guidelines:
1. Flexibility
Cell for multiple items
+ More flexible for
changing demand
+ Pushes you to create
short changeover time
Cells for one item (waste reduction) Cells for multiple items
A B A&B A&B
Advanced Lean
Identify Items for cell
Start with the product or service, that is the customer’s only interest in GE.
To simplify, identify the product/service families:
A group of products/service that go through the same or similar ‘downstream’ steps.
Process Steps & Equipment
Map together in one
1 2 3 4 5 6 7 Value Stream Map.
A
Item
X X X X X
B X X X X X
C After analyzing, you
X X X
might come up with the
conclusion to have step
5, 6 and 7 in one cell.
2. Similarity of processing steps
When required steps of the different products vary too much, then separate cells.
For example, item C does not look to be suitable for the cell.
Advanced Lean
Do you have the right items?
3. Variance of different product types
Time
Max. ~ 30%
Total Work Content (see also next section) of the
product going through the cell should not variance
more than 30%, otherwise take them apart.
A B
4. Takt Time (production pace)
Purpose: Match Customer Demand Pace with Production Pace
How often should we finish an item to serve the customer on time?
Available Time
TAKT time: It’s the heartbeat of the process
Required Output
(Customer Demand)
Advanced Lean
What are the Work Elements? (for making one piece)
Work element
‘smallest increment of work done by a person (not a system)
that could be moved to another person’
Each process consist of a series of work elements. By collecting all the
work elements in the cell, you get the total work content of the cell.
Calculate the actual work by using a Process Study Form
Guidelines
• Get REAL data, do not rely on standard time or data from the past. Get it yourself.
• Time each work element seperately, otherwise you can include waste. Once timed individual
elements then time operator’s complete cycle from start to finish. Compare to see the waste.
• Time an experienced operator who is fully qualified to perform the job.
• Seperate operator work time from system cycle time.
Breaking work in elements helps you to expose and identify waste
Advanced Lean
Process Study Form
nts
e m e
o r k e l
s a s w
te
us w a s
o b vio
d e an y
c l u
ot in
Do n
Full Process Study Template
Use this
Template Microsoft Excel
Worksheet
Advanced Lean
Paper Kaizen
First analyze the Total Work Content, and design improvement on paper …
Current Improved
K
Paper Kaizen
240 Approach of immediately leaving
Total Work Content for one item
in the cell are activities AK. out wasteful steps. You eliminate
some waste on paper before
210
implementation.
J
I K
180
H
Time
First understand all
150
G the work elements
F that make the total
I
work (Current)…
120
H
G Paper Kaizen
90 E F • Elimination: C and J
…then have a critical • Time reduction: A and F
D look on the work
60 C elements and design E
improvement on
B paper (Improved) to D
reduce wastes.
30 B
A A
Advanced Lean
Operator Balance Chart
… then connect to Takt TIme.
Operator Balance Chart (OBC)
210 Takt Time
205 sec. Picture of distribution of work among
180
K operators in relation to Takt Time.
• Simple
150 • Visual
I
• Quantative
120
H Takt Time • No guesswork
G 110 sec.
90 F F K Takt Time
82 sec.
60 E E E K
D D D H
I G
30 B B B
H F
I
0 A A G A
1 1 2 1 2 3 = Operator
Advanced Lean
Is your System suitable for flow?
Is your system able to handle the Takt Time?
If a System (or Machine) is
Effective System Cycle Time < (Fastest Takt Time – 2025%)
part of Continuous Flow
• Fluctuation in demand
Cell, you should make sure
• Equipment is often less flexible than people
it is appropriate enough for
handling the Flow.
Also ask the follow questions about your System:
Valuable? Does the System add value? • Is it working in batch or
single piece?
Capable? Does the System create no defects?
• Easy to replace (price)?
Available? Is the System always available when needed? • Easy to maintain?
Adequate? Is the System not a bottleneck for the flow? • Easy to use?
Flexible? Is the System flexible to adjust for changes? • Is it optimal design to
support continuous flow?
Should you have one integrated system, or different small systems connected by a simple workflow tool?
Advanced Lean
Is your item ideally designed for flow?
Are your items optimal designed for creating continuous flow?
• How is the item presented in an easy, simplified, proper way?
• Are there any changes you can make on the item, so it takes less time
for the operator to process?
• Are the items easy accessible, at their fingertips?
Ideally for a process
For example
• with high volume, low variety • Payroll
• Policy request processing
• with high frequency of use
• Customer Service Centers
• with stable input
Advanced Lean
Cell Layout
How can the process be laid out so one person can make one
piece as efficiently as possible?
• Avoid isolated islands of activities.
• Minimize inventory accumulation between processes.
• Remove (physical and digital) obstacles for the operator
Make value creating activities easily accessible.
• Design good ergonomics.
• Keep manual, operatorbased work steps close together to allow
flexible work element distribution.
Advanced Lean
Office Cell Layout
Cellular environment is an area of continuous flow.
Physical…
• Multifunctional
• Colocated
• One piece flow
• Balanced – waste removed
• Cross trained team
Incoming • Staffed within the ‘interval’
Forms Out • Standard work
… or Digital
A cell can also be designed digital. Think of setting operators work
in a flow by aligning systems.
Workflow IT can help to let differ systems work together in a flow.
Advanced Lean
How to use your operators efficiently?
Total Work Content (after paper Kaizen)
Number of operators:
Takt Time – buffer for variance
Example 134
= 3.2 operators
45 3
Lean Option
Option A Option B • Maximize operator work.
Balance the line
Takt Time
Lean Option • Let Op. 4 do other things
45 sec.
45
Buffer for variance
Continuous Improving
30
• More variance reduction,
15 reduces buffer.
• Eliminate by reducing
0 more waste.
1 2 3 4 1 2 3 4
Advanced Lean
How will you distribute the work?
What is the optimal way of distribution the work?
There are a lot of way
to distribute the work Specialize Do it all
among operators,
75
here two examples: 2x Takt Time
How will you design 60
that in your physical H H
G G
or digital layout.
F F 45
Takt Time 38 sec.
E E E 30
D H D D
B G B B 15
F
A A A 0
Incoming 1 2 1 2
Forms Out
Advanced Lean
Implementation Stages
Implementing the Flow consists of four stages:
1. Initial Process Design
2. Mockup
3. Debugging (!)
Process associate
involvement
4. Sustaining the Flow
Avoid making things permanent, until stage 4,
because it is a real learningbydoing implementation.
Advanced Lean
Stage 1 – Initial Process Design
The actual initial continuous flow design is not a bottomup, selfdirected
team process.
A small team should create the initial flow design by the steps presented in
this training. Participants in this team:
• Leadership
• Quality
• IT (if important for design)
• Someone from the process team
Process associates are involvement in the upcoming implementation
stages.
Advanced Lean
Stage 2 – MockUp
The initial design represents theoretical ideas for creating
continuous flow. Goal of the mockup is to introduce process
associates to the process design and to find improvement
opportunities before the actual process is deployed.
Show
• Goals
• Layout of new process
• Operator Balance Chart
• New standard way of working (steps and visual overview)
Try to make improvements immediately during the mockup as much as possible.
Advanced Lean
Stage 3 – Debugging
In this stage the process begins operating and is improved to the point
where it can process items as designed.
§ Make sure that you can still meet customer demand during transition (temporary additional resources
needed?)
§ Involvement of quality and IT for kaizen opportunities until it operates as designed.
§ The cell’s success is everyone’s responsibility.
§ Implement improvement ideas quickly.
§ Operator Balance Chart and the new standard way of working must be kept up to date.
§ Do not underestimate the effect of transition on the process associates. It requires good change
management.
§ Mark milestones that prove you’re making progress.
§ Near the end of debugging period the work elements should be carefully relisted and retimed.
Track progress on a dashboard. One by one the problems preventing the
cell from meeting Takt Time should be identified and their causes
eliminated.
Advanced Lean
Debugging Checklist
q Is there real onepiece flow? Can the process associate “make one,
move one”? Are the items go through the cell in a flow?
q Do process associates perform the work as specified in the operator
balance chart and the new standard way of working? If not, why?
q Do the team leader and supervisor understand their job
responsibilities?
q Does the information flow? Do the process associates, team leader,
and supervisor know: Takt Time, what to process, how many to
process, how many items are done, what problems are occuring, etc..?
q Are the system, item, and cell layout right?
q Does the cell use the minimum amount of equipment and inventory?
q Can the cell change over between different end items in time?
q Does the cell reduce lead time?
Advanced Lean
Stage 4 – Sustaining
In this stage you move from the debugging phase into daily
operation.
Cells must start on time. Standard work, measurements and
visual management should be put in place to control the
continuous flow in the cell.
It is rare to find a system that maintains a steady state. Things
are either improving or slipping backward. So, the best way to
maintain the continuous flow performance is to keep
improving.
Advanced Lean
Introduction to Pull Production
T
AC VI
P SI
EN O
N
G
L E A N
E N T E R P R I S E
Advanced Lean
What Is a Pull System ?
A system in which each process takes what it needs from the
preceding process when it needs it and in the exact amount
needed.
• Employs a variety of visual signaling devices and uses the
concept of Kanban
• Justintime focused
• Controls production system and limits inventory
• Simplifies or eliminates documentation
Customer pulls the flow
Advanced Lean
What Is a Push System ?
A system in which products are pushed through production or
distribution, based on a schedule.
• “Ready or not, here I come!”
• Products are produced only when scheduled
• Assumes receiving work centers will be ready for the products
when they arrive
• Output continues without regard to actual downstream needs
• Response is delayed and the system disrupted due to short
interval changes
Advanced Lean
Differences Between Push & Pull
• Planning
• Push: Work is completed based on a planning system
• Pull: Work is completed based on authorization from
downstream users
• Work Authorization
• Push: Work is immediately sent to downstream user upon
completion
• Pull: Work is not forwarded to next operation until requested
Advanced Lean
Why Use Pull ?
A conventional system, based on a schedule, generates
unneeded inventory (overproduction) because true
customer needs never fit perfectly with schedule. For the
same reason, it can also generate shortages.
Schedule :
Customer need :
Inventory :
SHORTAGE SHORTAGE
Pull ensures best inventory control with high customer satisfaction
Advanced Lean
Why Use Pull ?
Conventional ‘Push’ system : WIP = ?
Breakdown
Pull System : Standard WIP = 3
Breakdown
Pull improves work in process management
Advanced Lean
Pull Characteristics
• Standardized application
• Visibility
• Simplicity
• Standard lot sizes
• Discipline
• Versatility/Flexibility
Advanced Lean
How does Pull work ?
Legend
Supermarket
END CUSTOMER
Material
Information
2
1
1 Sequence / Timing
9
2nd LEVEL
SUPPLIER
10
3 4 5 9
2nd LEVEL
SUPPLIER
8 7 6 10
Advanced Lean
How does Pull work ?
Min/Max is the most often used methodology to manage
supermarket/buffer inventory level.
Max>
Pull
Pull Replenish
Pull
Min>
High performance companies use Kanban to
communicate needs to preceding process.
Advanced Lean
Heijunka
Heijunka is the foundation of the Toyota Production system, and is the process
of leveling and sequencing an operation.
There are three main elements of Heijunka…
1. Leveling: Overall leveling of a process to reduce variation in output
2. Sequencing: Managing the order in which work is processed (Mixed Production)
3. Stability or Standard Work: Reduce process variation
Toyota
Customer Demand Leveling Production System
Heijunka
JustinTime
Jidoka
Heijunka
Reduction in variation experienced by the customer
Advanced Lean
Kanban
A Kanban is a signal used by a downstream operation
to request a material replenishment
Kanban
Supplying
Supplying Using
Using
Process
Process Process
Process
Required
Part/ material
l Cards l Bins
l Carts l Labels
Kanbans are used to signal the supplying process that more
material is needed
Advanced Lean
Jidoka
Jidoka allows machines/processes to operate autonomously by shutting down
automatically if an abnormality occurs. This prevents defective products from
passing to the next process.
There are two main elements of Jidoka…
1. Autonomation: Automation with human intelligence – operate autonomously
2. Stop at Every Abnormality
Toyota
Production System
JustinTime
Jidoka
Abnormal
Heijunka
Fix the process (problem) before moving on
Advanced Lean
• Lean Overview
• Lean Methodology
• Lean Toolkit
• Lean Deployment
• Lean Glossary
• Lean Resources
Advanced Lean
Lean Deployment
Lean Deployment Roadmap
1. Set the strategy
2. Find a change agent (how about you?)
3. Get the knowledge
4. Seize or create a crisis to motivate change
5. Map your value streams, creating a future state plan
6. Eliminate waste by executing the plan
7. Expand the scope to other areas
Don’t Wait!! – “Opportunities multiply as they are seized”
Advanced Lean
Lean Deployment
Investment Required
Expense
5%
Technical
30%
Cultural
65%
“The Soft Stuff is the Hard Stuff”
Advanced Lean
Lean Deployment
Key factors for Success
1. Leadership commitment
2. Ramp up with results
3. Consistency of purpose
4. Knowledge/Training
5. Wide spread Communication
6. Change management
7. Team responsibility
8. Metrics
9. Reward and recognition
10. Roadmap for Execution (Discipline)
11. Balance between short term and long term
12. Best practice sharing (Community)
13. Value Stream Management
“Don’t be afraid to give up the good for the great!”
Advanced Lean
Lean Deployment
Kaizen: Change for the better
• Continuous incremental improvement
• Continuous ¹ slow
• Data driven: visual and quantitative
• Bias for action
• Does not cost money
• Absolute intolerance for waste
Kaizen = Action Work Out (AWO) at GE
Advanced Lean
Lean Deployment
Kaikaku
Vision
Kaizen = Evolutionary Change
ku
a
ik
Kaikaku = Revolutionary Change n
Kaize
Ka
ku
ika
Ka
n
Improvement
Kaize
aku
Kaik
ze n
K ai
n
Kaize
Time
Need Both Kaizen and Kaikaku!!
Advanced Lean
Lean Deployment
Value
Value Flow Pull Perfection
Streams
PROCESS Lean
(Elimination of Waste)
Front Senior
Lines Mgmt.
FLOW Lean
(Flow and Pull Improvement)
Focus
Process Lean Flow Lean
• Lean for waste elimination & process • Focuses establishing lean workflow
efficiency §Use of Technology for flow
• Empowered teams for speed of § Wing to wing improvements
execution § Establish Pull With customer
• Tap knowledge residing in grass root involvement
level . § Six Sigma for complex problems
•Simple Communication
Responsibilities clearly demarcated
Advanced Lean
Lean Deployment
Why some companies fail?
1. Too busy managing daytoday – no time for continuous
improvement and organizational learning
2. Belief that past strategies and approaches will continue to be
effective in the future
3. Management through control and efficiency
4. Organizing and managing through departments
5. Using people as operational labor, not operational experts
6. Let Lean Thinking be perceived as a downsizing exercise
Important to be wary of the above factors
Advanced Lean
Agenda
• Lean Overview
• Lean Methodology
• Lean Toolkit
• Lean Deployment
• Lean Resources
Applying the right tools at the right stage
Advanced Lean
Lean Resources
For all references on Lean training material, Lean Initiatives, Genpact Project examples, visit
the Lean Community on the Genpact Support Central
http://gecishome.gecis.ge.com/portal/page?_pageid=33,872304&_dad=portal&_schema=PO
RTAL
r y
i t o
o s
e p
R
a n
Le
Advanced Lean
Lean Rewards & Recognitions
Got any Lean
Improvements…..
üUpload it onto the
Lean Workflow
üAll approved
Team & Individual
ideas win Cheers
Advanced Lean
Closing Words
Many unidentified problem areas exists within
your processes
Lean methodology helps exposing those
problem areas ~
Creating opportunity for improvement
Implementation is the key
Advanced Lean