Professional Documents
Culture Documents
Lean at Wits
Lean at Wits
s
m
e
t
s
Sy king
n
i
h
T
Lean Thinking
Lean
Operations
Six
Sigma
Supply
Chain
Lean at Wits
Process Thinking
DEMING TQC
TQM
SIX SIGMA
COLT FORD
TOYOTA
LEAN
TPM
TAYLOR
MRP
MASS
MRPII
BATCH
ERP
Lean at Wits
DEMING TQC
TQM
SIX SIGMA
TOYOTA
LEAN
AVAILABILITY
TPM
BOTTLENECKS
UTILISATION
P. CONTROL
TAYLOR
MRP
MASS
MRPII
BATCH
ERP
Lean at Wits
Whitney
Taylor
Gilbreth
Ford
Toyoda
Ohno
Lean at Wits
Shingo
1950
to
1975
What
was
Toyota
doing?
Ohno?
Shingo?
(See
Art
of
Lean
website)
Beware.
Lean at Wits
Sea
temperature
is influenced
by currents of
the business
environment
.and by
natural laws
that cannot
be broken
(like
Kingmans
equation)
If these
change, the
Iceberg
melts
irrespective
of tools and
culture!
Lean at Wits
10
Cash
Order
(reduce by removing non-value added wastes)
Lean at Wits
11
Lean at Wits
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Lean at Wits
13
14at
Lean
Wits
Engines
Daimler & Benz
Standardisation
of parts
Bicycles and
Roads
Electric
Motors
Job
Specialisation
The Loom
Line stop
Small batches
Cash
Shortages
Pull &
Kanban
Toyota Production
System
Moving
Line and
Disassembly
Hawthorne
Juran and Deming
Quality and 94/6
People
Strikes but leading
to teams and job
security
15
Lean at
Wits
McLean
William Durant
16at
Lean
Wits
Lean at Wits
17
After Rother
and Liker
Lean at Wits
18
After
Rother and
Liker
Lean
19at
Wits
After
Rother and
Liker
Lean
20at
Wits
Lean at
Wits
Have we forgotten
22
Lean at
Wits
Lean at
Wits
?
Lean at
Wits
24
25
See
also
Terence
Keely
Sex,
Science
and
Prots
Some
Chapters
Self
Help
-
many
great
mean
of
humble
origins,
and
self
taught
Leaders
and
inventors
-
who
learned
by
doing
and
observa>on
The
Po`ers
-
searching
for
the
secrets
Applica>on
and
perseverance
-
genius
is
pa>ence
Helps
and
opportuni>es
-
Wa`,
Brunel,
Newton,
Priestly
-
observing
with
intelligence
(at
gemba)
Ar>sts
-
wealth
not
the
ruling
mo>ve
Energy
and
courage
-
the
force
of
purpose,
and
promp>tude
of
ac>on
-
Wellington,
Napoleon,
Dr
Livingstone
Men
of
Business
-
a`en>on
to
detail,
economy
of
>me,
accuracy,
punctuality
-
Wordsworth,
Shakespeare,
Walter
Sco`,
Dr
Johnson
Money
-
living
within
means,
frugality,
riches
no
proof
of
wealth,
independence
a`ainable
Lean at Wits
26
customers
perspec>ve
Iden>fy
all
steps
across
the
whole
value
stream
Make
those
ac>ons
that
create
value
ow
Only
make
what
is
pulled
by
the
customer
just-in->me
Strive
for
perfec,on
by
con>nually
removing
successive
layers
of
waste
Lean at Wits
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Lean at Wits
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Lean at Wits
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Lean at Wits
30
Lean at Wits
Customer
Outbound
Logistics
Marketplace
Vehicle
Manufacturers
Outbound
Transit
Min
Loading &
Despatch
70
Vehicle
Production WIP
Average
Inbound
Logistics
On-site Part
(VM)
First Tier
Suppliers
Inbound Transit
80
Finished
Components
Max
Assembly WIP
90
Pre-Assembly
WIP
In-house built
Parts
Bought-out Parts
Raw Material
Days of Inventory
100
Distribution
& Retail
60
50
40
30
20
10
31
Solve my problem
completely
Dont
waste
my
>me
Get
me
exactly
what
I
want
Provide
value
where
I
want
it
Solve
my
problem
when
I
want
Get
me
the
solu>on
I
REALLY
WANT
Lean at Wits
32
is?
Drills
or
holes?
Bed
blocking
Customers
actual
>ming
requirements
or
the
salesmans
incen>ve?
Unidirec>onal
ow
Goldra`:
Throughput
and
Herbie
Manufacturing
and
Service
Manufacturing:
Internal
failure
and
line
stop;
external
failure?
For
some
other
manager.
Measures
and
Accoun>ng
Example:
OEE
:
availability
or
u>liza>on?
Quality
and
capacity
Service:
External
failures
felt
internally
System
Process eciency
People
Demings
94
/6
Trust
Mo>va>on
and
small
wins
The
brain
and
thinking.
Bias.
Innova>on
Lean at Wits
35
System
Process eciency
People
Demings
94
/6
Trust
Mo>va>on
and
small
wins
The
brain
and
thinking.
Bias.
Innova>on
Lean at Wits
36
Izobreatatelskikh Zadatch
Genrich Altshuler
1926-1998
Lean at Wits
37
Exploration
The whats
Unknown
Unknowns?
Exploitation
The hows
Known
Unknowns?
Lean at Wits
38
Backgrounds:
Increasing
risk
Short
termism
Discounted
cash
ow
Vast
R&D
investments
and
risk
of
failure
Mashmallow
eect
Lean at Wits
39
IT
Design
Factory
Scheduling
People and
Motivation
Projects
Waterfall
Stage
Gates
Big
Transformation
Plans
Optimizatio
n, OR, LP
Change
whole
culture
CPA,
PERT
Agile
Simultaneous
and
Concurrent
Eng
Kaizen
Blitz
MRP, TOC
Batches
Top down
KPIs
Last
Planner
SCRUM
Set Based
Kata
Kanban
Heijunka
Small wins
Lean
Startup
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41
breakthrough
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The Accumulator
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Why do this?
What is needed
to do this?
Joseph Priestley
Lean at Wits
44
Customer
performance
expecta>ons
Products
are good
enough
Beat competitors
with functionality
and reliability
Beat competitors
with speed,
responsiveness and
convenience
Products
are not
good
enough
Time
time
Following
Clayton Christensen
The Innovators
Solution
HBS Press, 2003
Lean at Wits
45
46at
Lean
Wits
Lean at Wits
47
System
Process eciency
People
Demings
94
/6
Trust
Mo>va>on
and
small
wins
The
brain
and
thinking.
Bias.
Innova>on
Lean at Wits
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Lean at Wits
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Lean at Wits
50
51
Quality
Flexibility
Service
Costs
Response Times
Variability
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Lean at Wits
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High
Satisfaction
Delighted
Quality or
performance
not achieved
delighter
Absent
High quality
performance
Neutral
Fully Implemented
must be
more is better
Low
Satisfaction
enragers
Disgusted
Lean at Wits
54
From James L Adams, Good Products, Bad Products, McGraw Hill, 2012
Lean at Wits
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Lean at Wits
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System
Process eciency
People
Demings
94
/6
Trust
Mo>va>on
and
small
wins
The
brain
and
thinking.
Bias.
Innova>on
Lean at Wits
57
interdependencies
Engaging
in
mul>ple
perspec>ves
Reec>ng
on
the
boundaries
Learning
58
Purpose
Doing
the
right
thing
and
doing
things
right
(Acko)
The
Whole
greater
than
the
sum
of
the
parts
The
Systems
Approach
seeks
not
be
to
reduc>onist
(Checkland)
Interconnec>ons:
Silos
and
Streams
System
boundary
Subop>misa>on
Feedback
CATWOE
59
Tavistock Institute
(Univ of London)
Ackoff
Kurt Lewin
Complexity
Interaction
Fred Emery
Systems Thinking (1969)
Self directed teams
Socio Tech Design
Eric Trist
Job Enrichment
Job Enlargement
Job Rotation
Work Design
Lean at Wits
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Lean at Wits
61
If we dont
understand the
Customer we are
likely to not do
something, or not
do it right
resulting in failure
demand, rework
and complaints.
All cost money.
If we dont
understand the
Customer we are
in danger of
doing more than
is necessary OR
assume that
things are
important that are
not (e.g.: Flowers
and
Chocolate)This
costs money.
What Matters?
Lean at Wits
62
Lean at Wits
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64
22%V 78%F
44%V 56%F
Handoff
Sort
Scan
Index
HO
Letters unclear
Allocate
99% claims dirty
No case ownership
CTax fragmentation
HO
Decide
Pay
HO
Notify
HO
Inspect
HO
60% errors
Rework
Lean at Wits
65
External Influences
IT Systems
Budgets
Repair
received
Schedule labour
and material
Contractor
receives job
Hand off
Operative
receives job
Hand off
Functional Specialisation
Obtain
materials
Hand off
Attend repair
Hand off
Works order
processed
Hand off
Cost of works
completed
Invoice
received
Hand off
Invoice
paid
Hand off
Wrong office
No w/o issued
Overbooking
Wrong or no part
Post inspection
10% in CS
2 - 3%
3%
50 - 80%
Up to 4 week delay
1 - 2 p.m.
Not on
Contract
20 p.a.
No contact
for Cat E
20 - 25%.
V.O.
authorisation
30 - 40%
Wrong
Contractor
1 - 2%
Further works
required
10%
20%
Wrong
trade
Wrong
address
No
access
Lack of
time
Inaccurate
contact details
1%
50 - 100 p.a.
15 - 20%
2%
30%
Hold payment as
job incomplete
Invoice without
V.O.
1 - 2%
5 - 10%
Lean at Wits
66
Returns
Age of
Inventory
Changes
to the
Schedule
Shortages
of some
SKUs
Bigger
Batches
Demand for
Higher
Utilization
Reduced
Maintenance
Earlier
Orders
Increased
Order
Book
Pressure on
Capacity
More
breakdowns
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67
Lean at Wits
68
System
Process eciency
People
Demings
94
/6
Trust
Mo>va>on
and
small
wins
The
brain
and
thinking.
Bias.
Innova>on
Lean at Wits
69
Lean at Wits
Lean at Wits
71
Adjusts
Expedites
Measures
Repairs
Sets up
Approves
Files
Monitors
Requests
Updates
Assigns
Identifies
Moves
Returns
Verifies
Changes
Inspects
Receives
Reviews
Waits for
Copies
Labels
Reconciles
Revises
Distributes
Maintains
Records
Selects
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75
Hunter
Lovins
see
Hawkin,
Lovins,
Lovins,
Natural
Capitalism,
Li`le
Brown,
1999
Lean at Wits
76
Lean at Wits
77
Lean at Wits
78
Transport
Inventory
Mo>on
Wai>ng
Overproduc>on
Overprocessing
Defects
Employees
Green
79at
Lean
Wits
From Lifescan
Scotland
Lean at Wits
80
Energy
Water
Materials
Garbage
Transport
Emissions
Biodiversity
(impact
on
surrounding
area
wildlife,
birds,
bugs,
plants
and
trees,
water
table)
type
81
82
The
pathway
for
every
product
&
service
must
be
simple
&
direct
One
specic
route
means
con>nuous
experimenta>on
Any
improvement
must
be
made
in
accordance
with
the
scien>c
method,
under
the
guidance
of
a
teacher,
at
the
lowest
possible
level
in
the
organisa>on
Predict
&
test
improvements
Lean at Wits
83
achieved
Using
(mental?)
models
to
surface
your
knowledge
deciencies
PDCA
is
Win,
Win
Puwng
in
place
a
Learning
System,
not
just
solving
problems,
or
making
savings
If
you
want
to
understand
TPS
then
you
must
rst
understand
the
scien>c
method
and
thinking
behind
the
system
(Dr.
Shingo)
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Lean at Wits
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86
Steven Spear
Chasing the Rabbit
McGraw Hill, 2009
Lean at Wits
87
Spears
4
Capabili>es
1. Capturing
the
best
collec>ve
knowledge
and
making
problems
visible
2. Building
knowledge
by
swarming
and
solving
problems
3. Spreading
lessons
learned
to
the
whole
organiza>on
4. Leading
by
developing
capabili>es
1,
2,
and
3
in
others.
Lean at Wits
88
89
Kingmans
equa>on
Li`les
Law
Three
Types
of
Buer
Inventory
Fill
Rate
Curve
Inventory
Queue
Time
Utilization
Entities =
Entities/Time x Time
Capacity
Inventory $
Pull
Fill Rate
Lean at Wits
90
complete.
Dierences
in
perceived
>me
(by
situa>on,
by
customer,
by
culture)
Repor>ng
periods
(too
fast
or
too
slow?)
MRP
net
change
New
Manager?
End
of
quarter
repor>ng?
Car
registra>on
periods
Is
there
a
rst
mover
advantage
?
Necessity:
Falklands
ships
PARKINSON!
Lean at Wits
91
Kingmans
equa>on
Li`les
Law
Three
Types
of
Buer
Inventory
Fill
Rate
Curve
Inventory
Queue
Time
Utilization
Entities =
Entities/Time x Time
Capacity
Inventory $
Pull
Fill Rate
Lean at Wits
92
Lean at Wits
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Lean at Wits
94
leadtime
High uncertainty
Moderate
variation
Some uncertainty
Zero variation
30%
Utilisation
100%
Lean at Wits
95
Load affects
Speed!
Lean at Wits
96
L
=
(C2a
+
C2e)/2
x
(
/
(1-
))
x
te
+
te
MURA
MURI
97
The
Highway
What
do
highway
engineers
do?
Op>mal
throughput:
speed
and
density
=
0.5
When
is
six
sigma
worthwhile?
Arrivals
at
bo`leneck
Rework,
load,
and
the
Goldra`s
Herbie
CV
is
standard
devia>on
/
>me:
Implica>ons
The
order:
Muri,
Mura,
Muda
(NOT
Muda,
Mura,
Muri!)
Lean at Wits
98
Lean at Wits
99
Parkinsons
Law?
Lean at Wits
100
Lean at Wits
101
Arrival Variation
Load
Value
+
Demand
Failure
Demand
Utilization =
Capacity
Base Capacity
Waste
Process Variation
Lean at Wits
102
Customer
Server
System
Lean at Wits
103
External : Hard
To
Control
Arrival Variation
Variation
and
Common Cause
and
Special Cause
Capacity
Process Variation
Internal: May be
Easier to Control
Lean at Wits
104
Lean (?)
production
feasible
Utilisation
not
feasible
100%
leadtime
leadtime
Traditional
Utilisation
100%
Lean at Wits
105
B Seasonal Demand
Demand
Demand
A Steady Demand
Time
Time
D Low Variation Demand
Demand
Demand
Time
Time
Lean at Wits
106
from Frances Frei, The Four Things a Service Business must get right
Harvard Business Review, April 2008
Lean at Wits
107
0.18
System 1
0.16
Densities
0.14
0.12
0.10
System 2
0.08
0.06
0.04
0.02
10
12
14
16 18 20 22
Cycle time (days)
24
26
28
30
32
34
36
38
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110
account.
Red
has
longer
average
cycle
>me
and
is
therefore
likely
to
be
the
constraint,
but
blue
has
greater
varia>on.
111
OEE
All
factors
the
same?
MTTR
and
MTBF
Lean at Wits
112
Kingmans
equa>on
Li`les
Law
Three
Types
of
Buer
Inventory
Fill
Rate
Curve
Inventory
Queue
Time
Utilization
Entities =
Entities/Time x Time
Capacity
Inventory $
Pull
Fill Rate
Lean at Wits
113
Lean at Wits
114
OR
WIP = WIP / day x days
OR
Throughput TH =
Cycle Time
Cycle Time =
WIP
Throughput
OR
weeks =
units
units / week
115
Job
Arrives at (hr)
Takes (hrs)
15
10
11
12
A A A A B B B B C C C
13
14
15
16
17
18
19
20
D D D D D
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116
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117
47600
But
they
claim
WIP
is
30
K
so
it
is
inconsistent!
Lean at Wits
118
Inventory Turns =
WIP
WIP
Cycle time =
Throughput
1
Cycle time
So, inconsistent!
Throughput
WIP
1
c.f.
3 per year
6 weeks
52 per year
c.f. 3 per year
6
Lean at Wits
119
pa>ents
/
day
WIP:
the
number
of
en>>es
in
the
system
e.g.
pa>ents
Cycle
>me:
average
>me
taken
end-to-end,
including
rework
e.g.
days
(Hence
en>>es
=
en>>es
per
>me
x
>me)
(e.g.400
pa>ents
in
a
hospital
=
40
discharged
per
day
x
10
day
stay)
Capacity
=
base
capacity
detractors
(or
as
Ohno
said,
(actual)
work
+
waste)
U>liza>on
=
rate
/
capacity
(
or
load
/
capacity)
Lean at Wits
120
Kingmans
equa>on
Li`les
Law
Three
Types
of
Buer
Inventory
Fill
Rate
Curve
Inventory
Queue
Time
Utilization
Entities =
Entities/Time x Time
Capacity
Inventory $
Pull
Fill Rate
Lean at Wits
121
Inventory
or
Variation
Is
Buffered
by
Capacity
or
And
in no
other
way
Capacity
Time
Lean at Wits
122
Kingmans
equa>on
Li`les
Law
Three
Types
of
Buer
Inventory
Fill
Rate
Curve
Inventory
Queue
Time
Utilization
Entities =
Entities/Time x Time
Capacity
Inventory $
Pull
Fill Rate
Lean at Wits
123
Kingmans
equa>on
Li`les
Law
Three
Types
of
Buer
Inventory
Fill
Rate
Curve
Inventory
Queue
Time
Utilization
Entities =
Entities/Time x Time
Capacity
Inventory $
Pull
Fill Rate
Lean at Wits
124
125
5S
As
much
to
do
with
the
mind
as
with
the
physical
situaHon
Lean at Wits
126
TWI is a System!
JI
JR
JM
JS
Lean at Wits
127
Quotes
To
my
amazement,
the
program
that
Toyota
was
going
to
Quoted in
Jim Huntzinger,TWI Case Study: Ohnos
Vehicle to TPS, TWI Summit, 2008
Lean at Wits
128
Lean at Wits
129
Job Breakdown
A
key
tool
used
for
this
is
the
job
breakdown
sheet
(refer
to
Figure).
Not
to
be
confused
with
a
standard
work
combinaHon
sheet
that
focus
on
labour
allocaHon,
sequencing
&
balancing
tasks,
a
job
breakdown
sheet
is
a
training
aid
that
ensures
the
criHcal
knowledge
of
a
job
is
transferred
to
the
trainee
creaHng
a
stable
repeatable
outcome.
Percentage
Importance
of
total
work
15-20%
Critical work must be highly
consistent.
60%
Important work must be consistent
within a slightly wider range
20%
Low Importance work method may
be variable
Effect on work
Lean at Wits
130
Comparing Approaches
TWI
Step
Charles
Allen
Scientific
Method
Prepare
Observation
&
Description
Present
Formulation
&
Hypothesis
Application
Use
Hypothesis
to Predict
Testing
Test
Prediction
by
Experiment
Shewart
Or
Deming
Kaizen
Job
Instruction
Job
Method
Job
Relations
Plan
Observe &
time the
process
Prepare
Breakdown
Get the
facts
Do
Analyse
the current
process
Present
Question
Weigh &
Decide
Check
Or Study
Implement
ant test the
new
process
Try out
Develop
Take action
Act
Document
the new
standard
Follow
up
Apply
Check
results
Lean at Wits
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133
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134
Standards
To
standardise
a
method
is
to
choose
out
of
many
methods
the
best
one,
and
use
it.
What
is
the
best
way
to
do
a
thing?
It
is
the
sum
of
all
the
good
ways
we
have
discovered
up
to
the
present.
It,
therefore
becomes
the
standard.
Todays
standardisaHon
is
the
necessary
foundaHon
on
which
tomorrows
improvement
will
be
based.
If
you
think
of
standardisaHon
as
the
best
we
know
today,
but
which
is
to
be
improved
tomorrow
-
you
get
somewhere.
But
if
you
think
of
standards
as
conning,
then
progress
stops.
Henry
Ford,
Today
and
Tomorrow,
1926
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Purpose of a Standard
Make
it
easier
for
people
to
do
a
job
Avoid
known
pikalls
Assure
safe
operaHons
Make
it
easier
to
teach
new
employees
Make
it
easier
to
track
down
the
cause
of
a
problem
Reduce
unnecessary
variaHon
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Top
Middle
Supervisor
Operator
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141
Standards: Characteristics
Use
verb
plus
noun
-
or
picture
One
moHon,
one
step
Kept
at
the
point
of
use
Comparing
actual
to
standard
uncovers
waste
or
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Misunderstanding Standards
From
Mike Rother
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144
Examples of Standards
FootprinHng
Painted
levels
of
min
&
max
inventory
Sample
board
SOP
(3
types
-
see
later)
One-point
lessons
ProducHon
control
board
Checklist
Equipment
operaHon
Lean at Wits
145
Managerial Standards
AdministraHve
rules
Equipment checks
Personnel guidelines
Budgets
Delivery
schedules
Project
plans
9000)
Reference
samples
Safety
instrucHons
Lean at Wits
Window Analysis
Party X
Practised
Unknown
Un-Practised
Unknown
Un-Practised
Known
Practised
Party Y
Known
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147
148
Stage 3
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149
Visuality
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150
Exercise:
Not just information
But
What behaviours would
you like to change?
B/neck
status
Ideas
.
Lean at Wits
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Careful.
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Visual Management
Viagra HQ
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Mapping
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155
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
156
Lean at Wits
157
PRESS
SHIP
I
500 parts
1 day
SPAGHETTI
DIAGRAM
C/T = 10 sec
C/O = 30min
3 shifts
2% scrap
1000 parts
2 days
LEARNING TO SEE:
CURRENT STATE
PROCESS STEPS
INFORMATION FLOWS
C/T = 2 sec
C/O = nil
1 shift
0% scrap
Blank
Press
C/T = 3 sec
C/O = 15min
2 shifts
1% scrap
Welding
Press
BLANK
Press
Supplier Monthly
orders
WEEKLY Weekly
Schedule
Forecast
PRODN
CONTROL
Customer
MRP
Daily Call
Store
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AMPLIFICATION
MAP
Quantity
press
assby
orders
Inventory $
Time (days)
Fill Rate
INVENTORY INVESTMENT /
FILL RATE CURVE
Lean at Wits
159
Production
Control
MPS - MRP
Daily requirements
Supplier 1
Supplier 2
Daily
requirements
Daily requirements
Customer
Daily Production
Schedules
Daily
Shipments
210k
Daily
Shipments
Daily
Shipments
85k
35k
Manager
Responsibility
Zones
95k
Value Stream
Financing
W/house
Press
Assemble 1
10K
105k
12k/day
RM: 16 days
16K
Assemble 2
30K
40k
8k/day
WIP: 32 days
Weld 1
7k/day
70k
15k
4k/day
FGI: 8 days
Ship
Weld 2
4k/day
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Operation financing: 28 days
160
161
162
Layout
CreaHvity
and
the
physical
process
Lean at Wits
163
faster?
Create
a
new
sequence
to
minimise
risk
or
maximise
exibility
a
parallel
line
?
redundancy?
Change
the
locaHon
of
a
machine,
a
sequence,
a
supermarket,
a
facility
?
Skip
a
step
or
join
two
steps
?
Giving
customers
choice
discounts
for
early
orders,
or
regular
orders,
or
standard
products?
Adapted from Stuart Albert, When, Jossey Bass, 2013
Lean at Wits
164
Value Streams
Batch
sizing
Constraints
and
buer
locaHons
Supermarket
sizing
EPEI
calculaHons
Pull
and
scheduling
system
to
be
used
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The Financials
Inventory reducHon
impact?
Cash
ow?
Standard
cosHng?
Plain
English
accounts?
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Moments of
Truth:
SAB Miller
India
Lean at Wits
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Mistakes
Complexity
Machine
Tool wear;
Training
Experience Vibration
Omission;
Dropped
parts
Individual
differences;
motivation
Material
Material
variation
Method
Information
Execution
methods
Gage
Accuracy
Incorrect
Setup;
Software
errors
Wrong
material
or part
Wrong
method
Wrong
Instructions;
Misreads
Difficult
setup
Difficult
to work
or assemble
Difficult
method
Verbose;
Interpretation
Lean at Wits
173
Toyota Kata
What
is
a
Kata?
How
does
this
relate
to
the
Human
brain?
What
is
a
Target
CondiHon?
What
is
not
a
Target
CondiHon?
What
do
we
assume
about
geung
to
the
target
condiHon?
Lean at Wits
174
175
target
condiHon?
4. What
is
the
next
step?
176
Target Condition
Without
a
target
condiHon
we
could
have
lots
of
ideas:
Reduce
setup
Hme
A long list! As from a VSM
But what to do first?
Introduce
kanban
Confusing? Demotivating?
Set
up
a
cell
A
target
condiHon
could
be
what
is
prevenHng
us
from
a
Lean at Wits
177
The NEXT target condiHon. Step by step. Not the nal (see
next slide)
178
The
next
step
The
Target
Condition
The way through the grey zone is unclear; but get started, dont debate
The torch analogy (You can only see so far)
The Heuristic (Keep climbing)
Predict and Lean (like PDSA and Steve Spear)
Establish the small next step (not threatening); not the ideal (too difficult!)
Lean at Wits
179
180
Dene,
break
down
into
chunks,
i/d
root
cause,
set
next
target,
select
soluHon
from
several
alternaHves,
implement,
check,
adjust
and
standardise
Lean at Wits
181
Learner or Knower?
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182
183
A3 Problem Solving
Issue
Target Condition
Background
Countermeasures
Current Condition
Implementation Plan
what
who
when
outcome
Problem Analysis
Why?
Why?
Why?
Cost
Test
Cost / Benefit
To customer
To organization
Follow up
Stamps
Lean at Wits
184
Through the
eyes of the
customer
A3 Problem Solving
(this is PDCA!)
Issue
Sketch or
Future state
VSM
Target Condition
Background
Current Condition
Sketch or
Current state
VSM
Countermeasures
Now;
Soon
Implementation Plan
what
Problem Analysis
Why?
Why?
Why?
who
when
predicted
outcome
Study cost,
Implementation cost
Run diagram,
Fishbone,
5 why
Cost
Test
Note both
Cost / Benefit
To customer
To organization
Follow up
Stamps
Lean at Wits
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Improvement Types
Lean at Wits
189
190
Lean at Wits
191
Non
threatening
Immediate
Leads
to
habit
Builds
condence
Linked
with
ritual
Empowers
sta
Less
fear
of
failure
Reduce
stress
(How
do
you
eat
an
elephant?)
Encourages
experimentaHon
(The
drunk,
his
lost
item,
and
the
streetlamp)
Lean at Wits
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Small Goal > fear bypassed > cortex engaged > success
Three
Stages
of brain
Reference: Robert Maurer, One Small Step Can Change Your Life:
The Kaizen Way, Workman, 2004
Lean at Wits
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Pokayoke
For
Six
Sigma
perfecHon,
standards
and
SPC
may
not
be
enough
You
can
have
high
process
capability,
but
sHll
fail
due
to
mistakes
hence
100%
automaHc
inspecHon
together
with
warning
or
stop
Lean at Wits
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http://www.campbell.berry.edu/faculty/jgrout/pokayoke.shtml
Lean at Wits
197
Everyday Pokayokes
Lean at Wits
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Suggest a Pokayoke
Truck jammed
Lean at Wits
199
Implementing Pokayoke
Product
Simplify
Product 1
simplif
MistakeAssmby
Proof simplif
Process
exec
ConvertUse
repair
adjustment
to settings
Process
control
Control
Variation
SPC
Six Sigma
Simple
equipmt
Mistake
proof
equipment
Fixture
setup
The priority in
applying quality
paradigms
should proceed
from top to
bottom and right
to left in the order
shown
Martin Hinckley
Make No Mistake!
Productivity, 2001
Lean at Wits
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Another pokayoke
These men have just finished installing poles to prevent cars parking on the sidewalk
Lean at Wits
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Lean at Wits
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.and Checklists
Boeing
B17
TWI
20
Lean at Wits
3
Checklists
Lean at Wits
204
Fixed Value
Motion Step
Warning
Staff mirrors
Shop entrance bell
Trays with
indentations
Spellcheckers
Beepers on ATMs
205
Pokayoke Cycles
LiPle
pokayoke
Immediate
detecHon
and
stop
or
warning
Short
term
prevenHon
Big
pokayoke
Geung
a}er
the
root
cause
of
the
problem
A
P
Long
term
prevenHon
and
problem
solving
Accumulate
the
evidence
C
A P D
C D
Lean at Wits
206
Pokayoke References
Shigeo
Shingo,
Zero
Quality
Control:
Source
2001
Lean at Wits
207
Ideas?
Your
Experience?
Lean at Wits
208
Idea Management..
Lifescan,
Scotland
Lean at Wits
209
Idea Management..
Lifescan,
Scotland
Lean at Wits
210
Idea Management..
Lifescan,
Scotland
Lean at Wits
211
TPM
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213
214
Availability
X
OEE
Speed
X
Quality
Lean at Wits
215
Availability
Utilization
X
OEE
Speed
X
Quality
Lean at Wits
216
MTBF
Availability
X
OEE
=
MTTR + MTBF
Speed
X
Quality
Lean at Wits
217
Machine
MTTF (hr)
MTTR (hr)
Defect %
OEE %
90
10
10
81%
10
81%
85
15
81%
8.5
1.5
81%
Lean at Wits
218
Availability
X
OEE
Speed
Productivity
Quality
Lean at Wits
219
100%
Case
B:
Availability
is
80%;
quality
and
speed
both
100%
OEE
is
the
same
in
both
cases:
80%
Output
is
the
same
in
both
cases:
80%
of
poten>al
BUT
Inputs
(e.g.
Raw
Material)
is
dierent
So,
Produc>vity
(Output
/
Input)
is
dierent!
Lean at Wits
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Lean at Wits
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222
Lean Layout
Lean at Wits
223
PRODUCT LAYOUT
PROCESS LAYOUT
DescripHon
SequenHal
arrangement
of
machines
FuncHonal
grouping
of
machines
Type of Process
Product
Demand
Stable
FluctuaHng
Volume
High
Low
Equipment
Special purpose
General purpose
Workers
Limited skills
Varied skills
Lean at Wits
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PRODUCT LAYOUT
PROCESS LAYOUT
Inventory
Storage space
Small
Large
10 Material handling
11 Aisles
Narrow
Wide
12 Scheduling
Part of balancing
Dynamic
13 Layout decision
Line balancing
Machine locaHon
14 Goal
15 Advantage
Eciency
Flexibility
Lean at Wits
225
project
Process
job shop
batch
cell
line
flow
one off
low repetitive
volume
high
continuous
volume
flow
Lean at Wits
226
Process
project
job shop
CPA+ Lean
APS + Lean
Lean + MRP?
cell
Lean
line
LP/MP
flow
one off
227
project
job shop
Process
Professional
Services
(a la carte, corporate lending)
Service
Shops
cell
Mass
Services
line
flow
one off
low repetitive
volume
high
continuous
volume
flow
Lean at Wits
228
project
variety demands
job shop
Process
market
cost
demands
demands
cell
cost
demands
line
flow
one off
low repetitive
volume
high
continuous
volume
flow
Lean at Wits
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Loca>on
Plant
Layout
Cell
Layout
Worksta>on
Layout
Lean at Wits
230
Loca>on
Plant
Layout
Cell
Layout
Worksta>on
Layout
Lean at Wits
231
Lean at Wits
232
for
employees
Eec>ve
u>lisa>on
of
equipment
and
resources
to
facilitate
the
manufacturing
process
Flexibility
of
opera>on
and
ease
of
maintenance
Minimising
capital
expenditure
&
maximising
ROI
Minimise
material
handling
and
make
economical
use
of
the
building/site
space
(Adapted
from
Apple
1977
and
Tompkins
et
al.
1996)
Lean at Wits
233
2.
Movement
3.
Wai>ng
Service
Buildings
Change
(Taken
from
Muther
1955)
4.
234
Lean at Wits
235
100%
Reorganise ?
Go Lean !!!
Contri
bution
Invest ?
Provided they
are future
products
Cut ?
Ranked Products
236
Ranked
contribution
per
bottleneck
minute
Note these!
You dont want to be making
products which make low
contribution, and which tie up
precious bottleneck capacity!
Ranked Products
Lean at Wits
237
Loca>on
Plant
Layout
Cell
Layout
Worksta>on
Layout
Lean at Wits
238
Background
Lean at Wits
239
Uniq
Evercreech
is
to
receive
an
addi>onal
35
Skus
during
2012
as
its
M&S
desserts
business
is
transferred
from
its
Shropshire
site;
Evercreech
has
an
integrated
Manufacturing,
Innova>on
and
People
strategy,
which
it
aims
to
deliver
between
2010
and
2013
these
involve
an
innova>on-led,
exible
opera>on
with
engaged
people
as
its
key
lever
to
drive
change;
The
acquisi>on
of
Uniq
by
Greencore
in
2011
has
led
to
an
increased
focus
on
results
delivery
as
well
as
the
approval
of
capex
to
make
building
changes.
Lean at Wits
240
Rule of thumb:
Why ?
Lean at Wits
241
Shape
Good
Less Good
242
Lean at Wits
243
Lean at Wits
244
A
Absolutely
necessary
E
Essen>al
I
Important
O
Ordinary
U
Unimportant
X
Must
not
be
located
together
Make
the
diagram
cooler!
Lean at Wits
245
Production
Offices
Stockroom
Shipping and Receiving
Locker Room
Toolroom
O
U
A
U
A
O
U
O
I
X
O
Lean at Wits
246
Lean at Wits
247
Lean at Wits
248
RELATIONSHIP CHART
Date
Engineering Department
12
O
4
U
_
U
_
4
O
4
O
4
6
I
3
O
4
A
3
O
4
I
4
O
4
9
I
2
O
4
E
5
U
_
U
_
Ordinary
Closeness OK
22
Unimportant
11
O
4
Not desirable
N x (N-1)
2
T otal =
0
66
19
E
2
A
3
I
3
O
4
U
_
O
4
13
11
O
4
O
3
O
4
O
4
U
_
E
2
I
5
"Closeness"
Rating
Important
Rest Room/Canteen
O
4
O
4
O
2
E
2
I
1
U
_
10
O
4
I
2
A
1
O
4
I
5
Reasons in code
(below)
20
Innovation Centre
O
2
E
1
E
6
A
6
17
O
4
A
1
A
6
I
2
14
18
Packaging Store
A
1
Especially
Important
15
U
_
16
Dairy
I
2
N o. of
Ratings
14
A
1
I
2
A
6
I
2
CLOSENESS
Absolutely
Necessary
12
A
1
A
6
E
1
Importance of
relationship (top)
13
A
1
A
6
I
2
10
A
6
Value
Changing Rooms
U
_
O
6
E
5
of
SLP_CH_2012
With n/a
Sheet
Jan-12
Referenc e
Carolyn Hobdey
13
Format
taken
from
Richard
Muther
&
Associates
.
Colour
Key
taken
from
A.
G.
Raymond
&
Company.
Charted by
Plant (Company)
6
7
14
8
9
15
10
11
16
12
13
17
14
15
18
16
17
19
18
19
20
20
Reasons
behind the
"Closeness"
Value
Code
1
REASON
Flow of material
Management communication
Convenience
Financial control
7
8
9
Lean at Wits
249
Bad
Be`er
Much
Be`er
Lean at Wits
250
Bad
(conveyor)
S>ll
Bad
(forkliz)
Much
Be`er
(tugger)
Best
(hand
trolley)
Lean at Wits
251
Lean at Wits
252
Lean at Wits
253
240 meter
Training space
Paint shop
T1
C1
T2
C3
F1
F2
80 meter
Inspection
C2
Final Testing
Lean at Wits
254
Lean at Wits
255
Lean at Wits
256
Lean at Wits
257
Lean at Wits
258
This self regula>ng, near op>mal, system can be used wherever operators are
259
Lean at Wits
260
Simulation
Production
Plan
Resource
Plan
Master
Production
Schedule
Rough Cut
Capacity
Evaluation
Material
Requirements
Planning
Capacity
Requirements
Plan
Purchasing
Input/Output
Control
(Shop Floor
Lean at Wits
Control)
Accounting
Detailed
Scheduling
261
Simulation
Accounting
Production
Plan
Resource
Plan
Master
Production
Schedule
Rough Cut
Capacity
Evaluation
Material
Requirements
Planning
plan only
Purchasing
Capacity
Requirements
Plan
Detailed
Scheduling
Input/Output
Control
(Shop
Floor
Lean at
Wits
Control)
262
Resource
Plan
Production
Plan
Improvement
Targets
Rough Cut
Capacity
Evaluation
Master
Production
Schedule
Material
Requirements
Forecast
Purchasing
Advance
Warning
Detailed
Daily
Schedules
Mixed
Model
Sequence
Shop Floor
Cell Capacity
Planning
Central
Cell
Detailed
Scheduling,
and Execution
including
Kanban
operations
Heijunka
and
Lean
at Wits
call
off
263
MPS
forecast
forecast
MRP
advisory
advisory
kanban
Supplier
kanban
Press
Shop
Assembly
Mixed
Model or
Heijunka
call off
Dispatch
Customer
Supermarket
Lean at Wits
264
Lean (?)
production
feasible
Utilisation
not
feasible
100%
leadtime
leadtime
Traditional
Utilisation
100%
Lean at Wits
265
Lean at Wits
266
the
part
of
the
system
that
cons>tutes
its
weakest
link
can
be
either
physical
or
a
policy
267
maximum
output
Rope:
drum
is
roped
to
release
point,
work
is
pulled
through
system
Synchronised
with
demand
Constant
tuning
of
policy
buers
ensures
minimum
inventory
Is
TOC
disguised
pull
system?
Lean at Wits
268
Backlog Rope
GYR
2
Constraint Rope
GYR
Lean at Wits
269
270
are
missed
4. Add
capacity
(over>me?
subcontract?),
or
reduce
the
number
of
jobs
in
the
plant
5. Things
get
back
under
control.
6. So
you
go
go
back
to
step
1
Lean at Wits
271
272
ra>o.
So
Varia>on
is
much
more
important
in
short
cycle
opera>ons
(typically
volume
manufacturing)
than
long
cycle
opera>ons
(many
types
of
service
and
administra>on)
Where
opera>on
>mes
are
long,
it
is
MUCH
more
important
to
get
it
right
rst
>me
than
to
focus
on
reducing
varia>on.
Lean at Wits
273
Excess Inventory
Excess Inventory
Variabilty Reduction
Excess
Capacity
Excess
Capacity
Delay
Time
Delay
Time
Lean at Wits
274
Which is the
Constraint?
tradeo
decision
The
resource
upstream
of
the
constraint
275
Lean at Wits
276
A is a bottleneck or pacemaker,
B is a non-bottleneck
A
Lean at Wits
277
A is a bottleneck or pacemaker,
B is a non-bottleneck
Lean at Wits
278
279
X
X
Assembly
Constraint
Work
station
Buffer
Example from
Tomlinson, TPMI
Lean at Wits
280
C
D
281
C
How much inventory in front of A ?
Other questions? (from B, from C, from both?)
Lean at Wits
282
283
A, B and C all
have
Changeovers
C
A is a bottleneck, so needs to be protected by inventory
What are other considerations?
Lean at Wits
284
A is a
bottleneck
B and C are
Nonbottlenecks
The three are
joined by
conveyors
285
Demand
Smoothing
Reference:
Takt
and
Pitch
The New Lean Toolbox
Pages 103 - 120
ONE
Pacemaker
Supermarkets
and
FIFO
Lanes
Runners,
Repeaters,
Strangers
Mixed
Model
Scheduling
Pull
and
Kanban
Smaller
Batch
Sizes
and
EPE
Regular
Material
Handling
Route
(Runner)
Levelling
and
Heijunka
Authorisa>on
Lean at Wits
286
Lean at Wits
287
Quality
and never pass on
a defect, even if it
means waiting
Perfect
quality
Zero tolerance of
defects
Very strict, receiving,
requirements
Smoothed
demand
buffer
Demand
Occasional longer
customer waits (but
note some customers
dont mind waiting)
Lean at Wits
288
Container quantity
289
Helps
avoid
Unsynchronised
opera>ons
Amplica>on
Data
processing
schedule
and
inventory
inaccuracies
Lean at Wits
290
Reference:
Lean Lexicon,
LEI
Lean at Wits
291
Lean at Wits
292
Lean at Wits
293
Product
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Grand Total Frequency Freq Type Culm % Culm Useage
12008CABLE ASSY, 3/D/2362, ISS 6
9 12 11
9
9
9 11 14 10 14
6
114
11 Runner
9.53%
114
12020CABLE ASSY, 3/D/2492 ISS 3
13
8
4
8
9 11
8
8
5 10
7
91
11 Runner
17.14%
205
12057CABLE ASSY RDS KEYPAC ISS 2
11
8 14 11 10
8
5
5
5 10
87
10 Runner
24.41%
292
12077CABLE TAMPER LEAD ISS 2
2
3
7
6
8
8
4
9
9
7
9
72
11 Runner
30.43%
364
205XFMR (E/K1000), ISSUE 11
6
6
8
4
5
4
4
5
4
5
4
55
11 Runner
35.03%
419
12091Cable Assembly, Earth Lead, PAC202 ISSUE 11
1
5
2
6
7
3
8
4
6
4
47
11 Runner
38.96%
466
218XFMR (11226), ASSEM,ISSUE 14
4
3
4
5
4
4
4
3
4
3
3
41
11 Runner
42.39%
507
12087Cable Assembly, GSM Modem, EK1000/2200 6
5
4
2
2
3
3
6
1
4
4
40
11 Runner
45.74%
547
176XFMR,COIL, STANDARD RDR,ISSUE4
6
3
3
2
4
4
3
4
3
4
2
38
11 Runner
48.91%
585
12110Cable Assembly, E/K Printer 4/E/2431 Issue 0 3
3
8
3
2
4
2
3
4
3
35
10 Runner
51.84%
620
164XFMR,UNIVERSAL COIL
1
3
6
3
6
6
2
1
3
31
9 Runner
54.43%
651
12078Cable Battery Lead PAC 2200 Issue 2
1
2
5
4
2
2
3
4
3
3
1
30
11 Runner
56.94%
681
235Transformer, 240/16.5V 3/D/1947 issue 2
1
3
1
4
3
3
1
2
3
1
4
26
11 Runner
59.11%
707
12076Cable SWB To SWB PAC 2284 Issue 2
1
1
4
3
1
2
3
3
2
2
1
23
11 Runner
61.04%
730
12518Cable Assembly, PC Reader Issue 1
2
12090Cable Assembly, 3/E/2727 Issue B
2
12085Cable Assembly, Micro Reader, 4/E/2714/iss0
12051Cable Assembly, 4/E/2511 Issue 2
1
216XFMR (19401), ASSEM,ISUE 14
1
12029CABLE ASSY, 3/E/0350 ISS 3
2
168AFMRAIRCOIL, EKEY, MKII,ISSUE3
12028CABLE ASSY, 3/E/0350 ISS 3
1
12112COIL CABLE, 4/D/2512 ISS 1
175XFMR, COIL, PAC-KEY SLIMLINE RD
12518Cable Assembly PC Reader Issue 1
1863Cable Assy PSU To NTWK Cont Issue 4
12517E/K Battery Leads - Issue 1
179XFMR COIL,L/P RDR,ISSUE 7
1
1870Cable Assembly, Earth Lead Assembly D7112-X01 161XFMR COIL,FF 4000,ISSUE 5
1
12519Cable Assembly, PC Reader Cable 6 Core
1
203XFMR Reader (19256), Issue 14
1
1
1
1
1
2
1
2
1
1
1
2
1
Issue 1
2
1
1
1
1
1
1
3
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
2
1
1
1
1
1
1
1
1
1
1
1
1
2
1
1
1
1
1
1
2
1
1
1
1
2
1
1
1
2
1
1
1
1
11
10
9
8
8
8
8
7
7
7
6
5
4
4
4
4
3
3
7
8
5
8
8
7
7
7
7
7
4
5
4
4
4
3
3
3
Died
Runner
Repeater
Runner
Runner
Runner
Repeater
Runner
Repeater
Runner
Runner
Repeater
Repeater
Stranger
Stranger
Stranger
Stranger
Stranger
87.37%
88.21%
88.96%
89.63%
90.30%
90.97%
91.64%
92.22%
92.81%
93.39%
93.90%
94.31%
94.65%
94.98%
95.32%
95.65%
95.90%
96.15%
1045
1055
1064
1072
1080
1088
1096
1103
1110
1117
1123
1128
1132
1136
1140
1144
1147
1150
Lean at Wits
Example from Tomlinson, TPMI
294
Runners
Repeaters
Strangers
tight
kanban
tight kanban
MRP ?
MRP
tight
kanban
loose
kanban
MRP ?
2 bin
2 bin
2 bin
MRP ?
Lean at Wits
295
Runners
Short L/T
Tight kanban
Long L/T
Kanban + SS
Kanban
MRP
Kanban
Kanban
2 bin
Kanban + SS
MRP
MRP
VMI
2 bin
Long L/T
Short L/T
Kanban
Strangers
MRP
Short L/T
Repeaters
Long L/T
VMI
2 bin + SS
2 bin + SS
2 bin + SS
Lean at Wits
296
Lean at Wits
297
Lean at Wits
298
299
AAABBBCCC
?
Uniform
material
ow
Balance
Reduced
inventory
In
FGI
In
WIP
Lean at Wits
300
301
Produc>on
kanban
At
workcentres,
to
authorise
produc>on
Indicate
parts
to
be
replenished
to
a
nished
goods
supermarket
Signal
kanban
Authorise
batch
produc>on.
Ozen
triangles
Tell
how
many
units
have
been
pulled
from
the
supermarket
Lean at Wits
302
Kanban
Move or
withdrawal
Production
Signal /
Triangle
Production
card
In plant
Supplier
Lean at Wits
303
Material
movements
Kanban
movements
Op 1
Op 2
Op 3
Lean at Wits
304
Material
movements
Kanban
movements
red or blue
Op 1
red or blue
Op 2
red or blue
Op 3
Adapted from
Bonvik, web.mit.edu
Lean at Wits
305
Kanban
movements
Op 1
Op 2
Material
movements
Op 3
Lean at Wits
306
Kanban
movements
Op 1
Op 2
Material
movements
Op 3
Lean at Wits
307
Material
movements
Kanban
movements
Op 1
Op 2
Op 3
Lean at Wits
308
Lean at Wits
309
Lean at Wits
310
Why
all
these?
Lean at Wits
311
Number of kanbans =
Lean at Wits
312
Number of kanbans =
The replenishment
interval from sending
the signal to receipt
This is a variable,
used to adjust the
no of kanbans to a
feasible replenishment interval
Used to
compensate for
process uncertainties
& demand variation
Lean at Wits
313
periodically
Especially
when
demand,
lead
>me,
or
supplier
performance
changes
This
is
where
a
computer
system
can
be
useful
-
to
track
signicant
changes
and
give
warnings.
Lean at Wits
314
Lean at Wits
315
Start with the available >me per day (allowing for rou>ne
main,
OEE)
Subtract
the
total
required
run
>me
per
day
to
give
>me
available
for
changeover
Maximum
changeovers
per
day
=
>me
available
/
average
changeover
>me
Distribute
the
maximum
changeovers
per
day
between
all
the
parts.
More
changeovers
for
A
parts
(perhaps
more
than
1
per
day),
less
changeovers
for
C
parts
(perhaps
less
than
one
per
day).
Leave
a
li`le
slack
>me.
Lean at Wits
316
Lean at Wits
317
Changeover Schedule
Prod
A
B
C
D
E
F
G
H
2 / day
1
1
0.5
0.5
0.3
0.3
0.3
100
100
100
100
100
90
60
60
Lean at Wits
0.5
1
1
2
2
3
3
3
318
EPEI =
319
Lean at Wits
320
Supermarkets
Two
possible
locaHons
for
supermarkets
Lean at Wits
321
Sizing of Supermarkets
Note this variant of the standard
Supermarket symbol:
Covers
the
batch
quanHty
(EPEI)
Covers
customer
demand
during
the
normal
Lean at Wits
when
there
is
likely
to
be
a
queue
of
work
waiHng.
Another
factor
is
whether
other
products
are
being
used
by
the
customer
workcentre
during
the
lead
Hme
-
if
so,
no
demand
takes
place
during
this
Hme,
and
the
queue
Hme
can
be
omiPed.
Transport
Hme
is
the
Hme
to
physically
collect
the
kanban
and
to
return
the
batch
a}er
processing.
It
is
the
worst
case
for
the
runner
route
-
note
that
a
runner
may
someHmes
collect
a
kanban
every
second
route.
Order
Point
is
customer
demand
*(
lead
Hme
+
safety
stock)
Lean at Wits
323
interval
Calculate
the
required
run
>me
during
this
EPE
target
interval
Calculate
the
>me
available
for
changeover
during
this
EPE
interval
(
available
>me
-
total
run
>me
needed)
Calculate
target
changeover
>me
from
(>me
available
for
changeover)/no
of
products
Lean at Wits
324
increment
Starts
at
Heijunka
box,
and
collects
the
authorised
work
order;
goes
the
supermarket
and
picks
this
up;
takes
kanbans
to
cells;
delivers
material;
moves
material;
returns
to
Heijunka
Lean at Wits
325
Lean at Wits
326
Lean at Wits
327
Products
A B C
Spike Demands
G
Black
Zone
Red
Zone
Yellow
Zone
Green
Zone
Lean at Wits
328
9 10 11 12 13 14 15 16 17
9 10 11 12 13 14 15 16 17 18
Next Week
M T W Th F
Week After
M T W Th F
Part A
Part B
Part C
Pitches Missed
Lean at Wits
329
8:15
8:30
8:45
9:00
9:15
9:30
9:45
10:00
Product
Red
Break
Green
Blue
Yellow
Two cards per
Pitch, except
when Blue
May be balanced
for 3 pitches
if very different;
Otherwise ignore
Lean at Wits
330
9:00
10:00
11:15
50
50
50
50
40
50
100
50
90
50
150
50
140
70
200
210
Causes and
Countermeasures
0
-10
Breakdown
Red card issued
-10
+10
Caught up with
Extra manning
Lean at Wits
331
Lean at Wits
332
Lean at Wits
333
Priority
Kanban
boards
Turning
machines
Wide aisle 4m
Lean at Wits
334
Boxes
With products
accumulate on
a roller FIFO
Lane
Lean at Wits
335
Inside are
Details of
the products
to be made
And the
components
required
Clear
Plastic
Tablet,
Perhaps
120mm x 200mm
Tugger collects
Components at 10am
Production
between
Tugger (Runner)
goes around
once per
hour, but
production is
In half hour
increments; so
Tugger
collects two
Tablets per
round
Lean at Wits
336
paths
Lean at Wits
337
The
Lean
Toolbox,
4th
edi>on,
relevant
sec>ons
Je
Liker,
The
Toyota
Way,
McGraw
Hill,
2004,
Chaps
8
10
Hopp
and
Spearman,
Factory
Physics,
Irwin,
2007
(3rd
ed)
Kevin
Duggan,
Crea,ng
Mixed
Model
Value
Streams,
Produc>vity,
2002
Goldra`
and
Cox,
The
Goal
See
www.factory-physics.com/
Lean at Wits
338
Highly
seasonal
Major
product
families
Some
customized
Some
machining
with
changeover
>mes
Large
items
(2
4
m)
MRP
with
MPS
Quality
Issues
Pain>ng,
Assembly
of
products
Job
shop
in
above
areas.
Frequent
delivery
failures
5
x
8
hr.
week
with
frequent
over>me.
What
to
do?
Lean at Wits
339
Three
stages
Job
Shop
TOC
Lean
Flow
Lean at Wits
340
Lean at Wits
341
Lean at Wits
342
System
Process eciency
People
Demings
94
/6
Trust
Mo>va>on
and
small
wins
The
brain
and
thinking.
Bias.
Innova>on
Lean at Wits
343
Change
And let it be noted that there is no more delicate matter to
take in hand, nor more dangerous to conduct, nor more
doubtful in its success, than to set up as a leader in the
introduction of changes. For he who innovates will have for
his enemies all those who are well off under the existing
order of things, and only the lukewarm supporters in those
who might be better off under the new. This lukewarm
temper arises partly from the fear of adversaries who have
the laws on their side and partly from the incredulity of
mankind, who will never admit the merit of anything new,
until they have seen it proved by the event.
Niccolo Machiavelli
Lean at Wits
344
Physical
laws
apply
everywhere,
whether
or
not
you
choose
to
believe
in
them
says
astronomer
Neil
deGasse
Tyson.
In
1918
Emmy
Noether
proved
that
the
laws
of
physics
are
consequences
of
deep
symmetries.
A
thing
is
symmetrical
if
there
is
something
you
can
do
to
it
so
that,
a}er
you
have
nished
doing
it,
it
looks
the
same
as
before
(Like
some
Lean
transformaHons)
Newtons
Laws
First
law:
An
object
remains
at
rest
or
conHnues
to
move
at
constant
velocity
unless
acted
on
by
an
external
force
Second
law:
F
=
ma.
The
sum
of
forces
on
an
object
is
equal
to
the
mass
of
the
object
mulHplied
by
the
acceleraHon
of
the
object.
Third
law:
When
one
body
exerts
a
force
on
a
second
body,
the
second
body
simultaneously
exerts
a
force
equal
in
magnitude
and
opposite
in
direcHon
on
the
rst
body.
Third
Law.
For
every
acHon
there
is
an
equal
and
opposite
reacHon
Thermodynamics
The
Second
Law
states
that
"in
all
energy
exchanges,
if
no
energy
enters
or
leaves
the
system,
the
potenHal
energy
of
the
state
will
always
be
less
than
that
of
the
iniHal
state."
This
is
also
commonly
referred
to
as
entropy.
Lean at Wits
345
Hawthorne Studies
in
other
words,
the
mystery
seemed
to
lie
within
ule?
R
6
/
s 94
g
n
i
m
e
Lean at Wits
34
6
Lean at Wits
347
Failure
And
reduces
Process
Ignorance.
Problems
are
opportuniHes
to
be
solved
and
not
to
be
ignored.
Lean at Wits
348
Leadership Styles
349
Jack Smith
Learning
to
Lead
at
Toyota..
Lean at Wits
35
0
Leadership Moves
Lean at Wits
351
Brainwash
Nazis &
Jews
Korea
prisoners
Filters
Pygmalion
Effect
Yet
Maths
Army
recruits
Students
Habit and
Practice
Rituals
e.g. church
Frequency
and
Severity
Myth of
Genius
and
Talent
Small and
varied Wins
Amygdala
and Cortex
The
Progress
Principle
Lean at Wits
352
Practice
not Talent
Respect
AARs
Kata
Repetition
Yet
Leader
Standard
Work
Learning
cycles:
single
and
double
Heijunka
Small
and
varied
Wins
Genuine
Listening
Kaizen
Idea
Feedback
Go see
Ongoing
Mentoring
Reflection
Hansei
PDSA
Feedback from
others and
from work itself
Zero
Tolerance of
Defects,
mess
Andon
A3: break
into small
chunks
Lean at Wits
353
Lean at Wits
354
Leader
Standard
Work
Learning
cycles:
single
and
double
Yet and
Confirmation
Bias
AARs
Kata
Repetition
Go see
Ongoing
Mentoring
Reflection
Hansei
Kaizen
Respect
Idea
Feedback
Heijunka
Small Wins
Genuine
Listening
PDSA
Feedback from
others and
from work itself
Practice
not Talent
Zero
Tolerance of
Defects,
mess
Andon
A3: break
into small
chunks
Lean at Wits
355
Gladwell
Lean at Wits
356
Talent is Overrated
TWI
AAR
Amabile
Koenigsaecker
Duhigg
Lean at Wits
35
7
Lean
358at
Wits
Lean
359at
Wits
Lean at Wits
360
Avoiding Bias
You
cant
do
it
yourself!
It
is
intuiHve
(or
System
One)
thinking.
AutomaHc.
361
362
Lean at Wits
363
Lean at Wits
364
Investment in
capability
Reinvestment
Actual performance
Time spent
working
Shortcuts
delay
Time spent
on improvement
Pressure to
do Work
Work Harder
Performance Gap
Work
Smarter
Desired Performance
Pressure to
improve
After Repenning and Sterman, Nobody ever gets credit for fixing problems that never happened,
California Management Review, Summer 2001, pp 64 - 88
Lean at Wits
365
From
Nelson Repenning and John Sterman,
Nobody Ever Gets Credit for
Fixing Problems that Never Happened:
Creating and Sustaining Process
Improvement
California Management Review
Summer 2001
Lean at Wits
366
Lean at Wits
367
Lean at Wits
36
8
Seddons view:
Better Thinking
Conventional Thinking
Purpose
Creates de facto
purpose
Begin here:
Impose targets
And standards
Derive measures
Measures
Constrains
method
Liberates
Method
Lean at Wits
369
Motivation Flowchart
Can you increase
the tasks challenge
or variety, make it
less routine, or
connect it to a larger
purpose?
Use rewards,
even if then
rewards, but be
sure to:
Yes, I
can
Yes
Is the task
mostly
routine?
Thats
pretty
hard
No
1. Offer a
rationale for
why the
task is
necessary
2.
Acknowledge
that the task is
boring
3. Allow
people to
complete
the task in
their own
way
1. They offer
praise and
feedback rather
than things
people can touch
or spend
2. They provide
useful information,
ratherLean
thanat
anWits
attempt to control
370
VariaHon
Theory of Knowledge
Psychology
Lean at Wits
37
1
Lean at Wits
37
2
Lean at Wits
37
3
Measures
Lean at Wits
374
Lean at Wits
375
Lean at Wits
376
Measures should
Provide
short-term
indicators
of
problems
and
no-problems
Be
part
of
a
feedback
loop
of
surfacing
and
resolving
problems
Focus
on
improving
performance
Be
capable
of
being
acted
upon.
Relate
to
learning
or
capability
of
the
process
or
people
Lean at Wits
377
(see Michael Blastland and Andrew Dilnot, The Tiger that Isnt, Prole, 2007 and
Lean at Wits
378
informaHonal
purposes
2. MoHvaHonal
measurement
-
used
for
rewards
and
punishment
The
rst
can
be
a
powerful
aid;
the
second
almost
invariably
negaHve.
Adapted from Dean Spitzer,
Transforming Performance
Measurement, AmaCom, 2007
Lean at Wits
379
It
is
the
second
that
gives
big
problems.
Looking
good
as
opposed
to
being
good.
Who
is
measuring
whom?
(Witgensteins
ruler)
Measurement
should
be
a
non-judgemental
process
of
collecHng,
analysing,
and
most
importantly
understanding
what
is
being
measured.
Adapted from Dean Spitzer,
Transforming Performance
Measurement, AmaCom, 2007
Lean at Wits
380
Dysfunctional Measurement
CheaHng
(see
for
example
LeviP
in
Freakonomics,
2006)
Measuring
too
much
-
and
ignoring
most
of
the
signals
-
a
complete
waste
or
delusion
Driving
behaviour
that
favors
the
individual
but
is
dysfuncHonal
to
the
organizaHon.
Whether
measurement
dysfuncHons
occur
has
less
to
do
with
the
number
and
more
to
do
with
how
people
respond
to
the
measure.
Almost
everyone
has
experienced
negaHve
measurement
used
to
expose
negaHve
things
-
errors,
cost
overruns
etc
-
and
trigger
negaHve
emoHons
-
fear,
threat,
blame,
defensiveness
Adapted from Dean Spitzer,
Transforming Performance
Measurement, AmaCom, 2007
Lean at Wits
381
Focus
Measure
the
right
thing,
dont
measure
too
much,
the
vital
few
IntegraHon
A
framework,
balanced,
aligned,
adapHve
InteracHvity
About
ongoing
measures,
acted
upon
in
real
Hme,
using
feedback
loops.
A
social
process,
not
a
technical
process.
Lean at Wits
382
n
n
2.
3.
4.
Ways
in
which
the
measures
will
be
acted
on:
who,
visual
progress
Problems
with
process
design;
problems
with
execuHon.
These
need
dierent
responses;
which
of
these
is
the
cause?
(Deming
94/6
rule)
Create
an
organizaHonal
value
system
that
uses
the
measures
for
ongoing
performance
measurement
n
Lean at Wits
383
Problem
P
sells
for
90;
demand
is
100
units
/
week
Q
sells
for
100;
demand
is
50
units
/
week
There
are
four
resources
-
A,
B,
C,
D,
each
with
the
Lean at Wits
384
P
Purchase
Part
5/unit
D
15 min
D
5 min
C
10 min
C
5 min
B
15 min
A
15 min
B
15 min
A
10 min
RM2
20/u
RM3
20/u
RM1
20/u
Lean at Wits
385
Contribution
P:
90
-
40
-
5
=
45
/
unit
Q:
100
-
40
=
60
/
unit
Make
Q
!
Lean at Wits
386
Extensions
By
purchasing
tooling
for
2000
we
can
increase
the
Lean at Wits
387
Extensions (2)
ConvenHonal
CosHng:
The
total
Hme
to
make
a
Q
has
increased!
-
so
No!
Lean
AccounHng
Looking
at
the
LP,
C
is
irrelevant;
but
any
improvement
in
B
Lean at Wits
388
CNC
Machine
6 minute
Grind
4 minute
Drill
4 minute
Turn on
Lathe
Batch of 3000
Grind
4 minute
Inspect
& Pack
4 minute
Labour time = 15 mins
Labour Cost = 5
Overhead = 5 x 3 = 15
Material = 2
Total 22
Drill
6 minute
Inspect
& Pack
4 minute
Lead time = 6 weeks
Inventory 25 days
Batch size = 3000
On-time deliv = 82%
Lean at Wits
389
Lean at Wits
390
Basic Measures
Customer
Service
or
saHsfacHon
Lead
Time
Schedule
Adherance
Inventory
Turns
(WIP
to
SWIP)
Lean at Wits
391
QCDMMS
Lean at Wits
392
Cell Measures
(by day)
Day
by
the
hour
Schedule
aPainment
And
deviaHon
reasons
First
Time
Through
ROTIF
aPainment
(Start
-
(Scrap
+
Rework))
at
each
workstaHon
mulHplied
WIP
to
SWIP
Actual
vs.
Standard
work
in
process
audited
daily
OEE
On
selected
machines
For
the
cell
as
a
whole?
From Maskell &
Baggaley
Lean at Wits
Practical Lean Accounting
393
Dock-to-dock
Time
(RM+WIP+FGI)
/
(products
shipped
/
hours
in
week)
Can
use
representaHve
components
e.g.
unit
containers
394
Features of Hoshin
3
Levels
of
review
(tasks,
strategies,
system)
Use
real
feedback
on
last
periods
actual
planning
process,
and
deployment.
Avoid
blame
(It
is
my
fault
that
you
are
doing
the
wrong
job
-
system
not
person)
Lean at Wits
395
Lean at Wits
396
Lean at Wits
397
Hoshin Cascade
deploy
Senior
Management
Create Policy
review
goals
deploy
means
means
Middle
Management
Horizontal Deployment
And Understanding
Implementation Level
Devise Implementation Plans
review
actions
Lean at Wits
398
aims
delivery
results
To what extent
Do the results
Contribute to the aims?
Lean at Wits
399
Deployment
Lean at Wits
400
Hoshin and A3
Purpose
Future state
Current and
implement
5 whys
Purpose
Future state
Purpose
Current and
implement
5 whys
Purpose
Future state
Current and
implement
5 whys
Future state
Current and
implement
5 whys
Purpose
Future state
Current and
implement
5 whys
Lean at Wits
401
Lean at Wits
403
But
the
Rouge
was
a
compelling
idea
in
an
age
of
industrial
concentraHon
and
scale
economies.
If
a
lot
was
good,
then
even
more
was
bePer,
and
the
Rouge
was
the
most
anyone
could
imagine.
When
the
new
facility
completed
in
1927
in
Hme
for
the
Model
A,
Ford
also
oered
a
new
name
mass
producHonto
tout
his
achievement.
The
term
ow
producHon
that
Ford
had
coined
earlier
to
describe
Highland
Park
quickly
disappeared
from
use.
(It
bears
men>on
that
Fords
concept
of
mass
produc>on
at
the
Rouge
was
where
Toyota
started
its
thinking
about
lean
produc>on
and
was
the
concept
our
MIT
automo>ve
team
set
out
with
in
our
global
survey
of
manufacturing
performance.
In
the
1980s
we
were
simply
unaware
of
the
signicance
of
the
system
created
earlier
at
Highland
Park.)
Once
the
Rouge
was
in
place,
Highland
Park
became
an
anachronism.
Too
small
for
the
body
shop
needed
for
stamped
steel
vehicles,
seemingly
too
ramped
with
its
machines
crowded
Hghtly
together
to
minimize
movement,
too
focused
on
a
single
product.
Highland
Park
simply
didnt
scale
in
an
age
of
scale.
So,
when
Model
T
producHon
came
to
an
end
in
1926,
Ford
converted
Highland
Park
to
high-volume
producHon
of
certain
categories
of
parts
(for
shipment
to
assembly
plants
around
the
world)
and
to
low-volume
assembly
of
a
few
vehicles
such
as
delivery
trucks
for
the
Post
Oce.
Over
Hme,
as
Fords
original
objecHve
of
auto
ownership
for
everyone
became
widespread,
workers
could
drive
to
new
plants
far
away
from
the
high
land
costs
of
the
city.
Cheap
land
on
the
citys
edge
made
it
possible
to
spread
out
producHon
on
one
level,
making
Highland
Park
look
too
verHcal,
with
its
ve
oors
and
gravity
slides
that
moved
parts
from
fabricaHon
in
the
top
of
the
building
to
nal
assembly
at
the
boPom.
In
just
a
few
years
Highland
Park
had
become
the
picture
of
the
old-fashioned
factory.
A}er
1930,
producHon
declined
slowly
at
Highland
Park,
and
with
it
the
populaHon
of
the
Hny
(3
square
miles)
city
surrounding
the
plant,
which
had
grown
from
4,000
in
1910
just
as
the
plant
opened
to
a
peak
of
53,000
in
1930.
Decline
was
checked
for
a
while
by
the
presence
of
Chryslers
corporate
headquarters
and
engineering
center
a
few
blocks
away,
but
Highland
Parks
descent
accelerated
a}er
the
boom
years
of
World
War
II
when
all
capacity
of
any
type
was
needed.
By
1973
Ford
disconHnued
manufacturing
at
Highland
Park
and
in
1974
the
property
was
sold
to
a
developer
who
tore
down
a
few
of
the
buildings
to
create
a
shopping
mall
(which
also
failed.)
A}er
Chrysler
le}
for
the
northern
suburbs
in
1993,
to
be
close
to
the
homes
of
its
managers
and
engineers,
the
trend
gathered
speed
and
by
2012
Highland
Park
had
a
}h
of
the
populaHon
(11,000)
of
the
peak.
Lean at Wits
404
Lean at Wits
405
Innovation
Cost
Reduction
Lean
Startup
Design
Thinking
New Product
Introduction
406
Innovation
Creativity:
Insight
Improvisation
Divergent Thinking
Adjacent
Possible
Innovation
TRIZ
Disruptive
Technology
and many
others
407
Design Process
Set Based
And
Cadence
(Toyota)
Learning Cycles
And
Rapid Prototyping
Concurrent
and
Simultaneous
Engineering
LAMDA
Design
Process
Reinertsen
and Kingman
The Innovators
Method
Design for
Manufacture
(DFM)
Risk
Tradeoffs:
Product Price,
Product Cost,
Production Cost,
Time to Market
John Bicheno 2015
408
Target
Costing
Group
Technology
Contribution analysis
And
Contribution / b-neck minute
Design
Wastes
Cost
Reduction
Variety Effectiveness
Process
Market Analysis
Product Analysis
Part Analysis
Variety Analysis
Tools (VAT)
(Galsworth)
409
Design Thinking..
IDEO
Systems
Thinking
Double
Diamond
(Exploration and
Exploitation)
Design
Thinking
Vanguard?
Service Design
Good Product /
Bad Product
(Adams)
Lean Consumption
410
3P
Ramp Up:
One feature at a time;
Phase in transition
New Product
Introduction
Experimentation
Supplier
Partnership
411
Lean Startup
Agile
Software
Lean
Customer
Development
Lean
Startup
SCRUM
Kanban
for
Software
412
2014,
p60
The
Discipline
of
Business
ExperimentaHon,
Dec
2014,
p70
(Useful
for
dissertaHons!)
Leading
your
team
into
the
unknown,
HBR,
Dec
2014.
p80
(This
is
a
summary
of
the
book
The
Innovators
Method)
How
I
did
itIntuits
CEO
on
Building
a
Design-
Driven
company,
Jan
2015,
p35
John Bicheno 2015
413
414
Creativity
Insight
Move one stick to
make a different goat
The
goat
problem
Right
and
le}
brain
What
do
pine,
crab,
source
have
in
common?
No
such
thing
as
a
single
sudden
ash;
rather
brain
working
in
background
Improvising
The
brick
test:
how
many
uses
of
a
brick?
(Gilford
and
USAF
during
WW2).
Points
1
to
5
for
creaHve
uses
IQ
and
creaHvity
Divergent
Thinking
Jazz
Switch
one
of
the
steps
(like
puung
marmalade
then
rubbing
the
toast)
RouHne,
easy,
non-thinking
tasks
;
relax
and
do
something
dierent
John Bicheno 2015
415
Creativityand Kata
Kata:
reinforcing
and
building
pathways
and
habits
The
more
you
do
something,
the
more
likely
you
are
to
do
it
again
(Gilbert)
CreaHvity:
breaking
pathways
and
habits
Seeing
things
dierently;
establishing
new
pathways
System
1
and
System
2
?
416