Advanced Lean Training Manual Band 4

 Advanced Lean Module

 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…. 

Lean History



Lean Explained



Lean Benefits



Lean Usage



Lean Basic Toolkit

• Lean Methodology • Lean Advanced Toolkit • Lean Deployment • Lean Resources

Advanced Lean

Lean History 

Recap…

TOYOTA Toyota Production System

• Single Piece Flow • Pull Production • TAKT Time Production

   e    m     i     T      n     i       t    s    u     J

People People People

   a     k    o     d     i     J

• Autonomation • Built-In Quality • Stopping at 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: • • • • • •

Advanced Lean

Higher Customer Satisfaction  ic e   i f c  f  f    O O    ) )  Shorter Lead Time  c k  a  e  B  (   g    a a  g  t    n n  n  i  k  a Higher Flexibility  v  d  M a  a    c c  i  e g  t e    a a Higher Quality    r r  t  s  a Lower Costs Higher Employee Satisfaction

Lean Explained 

Recap…

What is Lean? A strategy, philosophy, process and leadership approach for operating in a superior way. Results include: 

Reduced cycle times (product development and production)



Increased quality



Reduced costs and inventory



Increased capacity potential



Improved customer service



High levels of worker involvement, ownership and commitment



Improved financial returns

Lean concepts apply across all processes and  industries Advanced Lean

Lean Explained  The conventional way: +Profit 

Recap…

Price = cost 

Increase profit by Price Increase

Price to sell Bigger profit Some profit Cost to produce

But, may lose customers!

Advanced Lean

Lean Explained  The new way:

Recap…

Price - cost =Profit 

Increase profit by Cost Reduction

Price to sell

Some profit Cost to produce

Advanced Lean

Bigger profit

Lean Benefits

Recap…

Cycle Time Wait Time (non value add) Work  Time (value add)

Before After

Same work  completed in less time

Productivity Cost

Customer

Defects Lead

time

Inventory Space Waste!

satisfaction

Cost/Chaos

Profit Customer

responsiveness

Capacity Quality Cash On

flow

time delivery

Cycle time

Relentless Focus on Reducing non value adding activities Advanced Lean

Lean Usage

Recap…

Lean vs. Six Sigma Methodology  Strengths

Define

Measure

Analyze Lean Six Sigma  

Improve

Control  

Six  Sigma

• True VOC is Powerful

• Confirms Data Quality

• Data Driven Analysis

• Few Tools to Create Change in Critical X’s

• Few Tools or Direction

Lean

• Value Stream Mapping . . . Boundaryless & MultiGenerational

• Standard Work &  Target Sheets . . . Assumes Data is Good

• Observation and Intuition Based Analysis . . . PQ, PR,  TAKT Time

• Many Tools for Driving Change

• Communicative

• Mixed Model Plan, Kan Ban, Visual Management

• Centered on Stable, Repeatable Process • Automation

 Apply Any Tool from your Quality Tool Box  Advanced Lean

Lean Usage

Recap…

When do I use Lean? Six Sigma Project

   t   r   o    f    f    E

Hybrid

   t   r   o    f    f    E

Time

Average ~ 4 Months

AWO

   t   r   o    f    f    E

Time

Average ~ 4 Months

Time

Average ~ 1½ Months

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  Complex  and Focused  Focused 

Depth

Lean

Helps identify steps that don’t add value and provides tools to eliminate them

Lean Success Factors/  Impact 

Lean

Identifies problems in the flow

Six Sigma

Improves the capability of steps that do add value

Energizing Empowering Team work, Boundary less / Open mindset Passion for improvement Intuition / Action Customer focus

Six Sigma/Lean Sigma/Lean Improving the capability can eliminate additional steps

GE Values

Lean: Strengthens GE’s journey to Excellence Advanced Lean

Lean Usage

Recap…

So, why do I need Lean? Principle

Toolkit 

Process

New ways to think about problems New problem solving tools and concepts  An improvement methodology focused on action

Solutions

Simple Known

Complex 

 Just Do It!!

Lean!!

Ask an Expert!!

Six Sigma

Causes Unknown

We Need Lean to be Leaner Quickly…Let us start it!! Advanced Lean

Where are we going… Advanced tools Tool

Basic tools Tool • Value Stream Mapping, other lean tools, etc.

Old situation Issues • Inventory • Waiting • Defects •… No flow in the value stream.

Processes full of waste

Advanced Lean

Results • Reduction of waste • Learned to ‘see the flow’ • Couple of improvements

Remaining Issues • No real  real continuous continuous flow • Still significant amount of  waste.

• Creating Continuous Flow • Pull production

Challenge • More waste reduction • Real continuous flow • Flexible workforce • Less variance • Less waste

Lean Toolkit 

Recap…

Level 2

Level 1

  n   o    i    t    l   a   c    i   o    t   o   s    T    i    h   p   o    S

Expose the Waste 5S • MUDA • Mistake proofing • Intro to Value Stream Mapping • Visual Management •

Reduce Variability Control the Process • Value Stream Mapping • • •

Standardized Work  Intro to Continuous Flow Intro to Pull Production

Time / Cultural Maturity  Applying the right tools at the right stage Advanced Lean

Lean Tools Overview

Recap…

number of Lean Tools and Techniques Tec hniques are available Tools and  Techniques

 Actions Bring Organization & Cleanliness to work area Understand Value Implement pullbased flow

5S Framework Value Stream Mapping

Reconfigure work areas Institute continuous improvement philosophy

Kanban, Just-in Time U-Shaped Cells Kaizen Events

Benefits Realized 

 Appropriate Tools and Techniques are to be used  depending on the need  Advanced Lean

Lean Tools Description Exposing the Waste ~ Recap….. 

5S



7 Wastes



Mistake proofing



Visual Management

Advanced Lean

Recap…

5S

Recap…

5S – A Framework to create and maintain your  workplace 1. S: SORT (Organization) Distinguish between what is and is not  needed 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/SYSTEMIZ SUSTAIN/SYSTEMIZE E (Self-Discipline) Stick to the rules, scrupulously 

Implementing the 5S is often the first step in Lean Transformation Advanced Lean

Muda ~ 7 Wastes

Recap…

UDA – Lean is a way to continuously eliminate wast   The Seven Deadly WastesExamples Incorrect Layouts of office, factory, etc. Motion

People

Waiting Overproducti on

Process

Processing Defec ts Inventor y

Product

Transportati on

Lack of Proximity Of Machines Off-line Resources Watching Machines Work Long Set-ups and Lead Times Large Batches and Inventory Planning Full Utilization of Machines and Labor Producing More Goods than Marked Demand Poor Machine Maintenance Unnecessary Processing Steps Longer Lead Times Long Delays for Troubleshooting Costly Rework Dissatisfied Downstream Customers High Stocks of Raw Material, WIP, & Finished Goods Additional Space Requirements Clutter 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 > Substitute a more reliable process

BETTER

Facilitation > Make work simpler to perform

Use the highest level possible for the application.

Detection > Detect the error at the defect source GOOD

Mitigation > 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

isual Management Overview 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… abnormalities… Quicker Resolution • Decision making @ working level … Empowerment • Showcase Successes … Create a sense of Pride

Seeing is Believing Advanced Lean

Recap…

• Lean Overview … Recap • Lean Methodology  

Five Lean Principles

• Lean Advanced Toolkit  • Lean Deployment  • Lean Resources

Advanced Lean

Five Lean Principles Lean Enterprise Raw Materials

Tier 2 Suppliers

Tier 1 Suppliers

General Electric

Customer

LEAN OFFICE

LEAN ENTERPRISE

Lean Enterprise: Maximizing Value Wing to Wing Advanced Lean

Five Lean Principles Lean Thinking The Fundamental Objective Provide perfect value to the customer through a perfect value creation process with zero waste in: 

Design (concept to customer)



Build (order to delivery)



Service (order to cash)

The Fundamental Insight 

Focus on each product and its value stream rather than organizations, assets, process technologies, and career paths



Ask which activities are waste and which truly create value



Enhance value & eliminate waste

Lean: Fundamentally Change how we do business Advanced Lean

Five Lean Principles Define value in from 1 the customers Specify perspective and express value in terms of a specific product

5 Work to Perfectio n

The complete elimination of waste so all activities create value for the customer

2 Value Map the Value Stream

Map all of the steps… value added & nonvalue added…that bring a product of  service to the customer

3 Establish Flow The continuous movement of products, services and information from end to end through the process

4 Implemen t Nothing is done Pull 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 capability provided to a customer at the right  1. Specify Value A time at an appropriate price, as defined in each 



case by the customer.

Specify value from the standpoint of the end customer Ask how your current products/services products/services and processes disappoint your customer’s value expectation:



price?



quality?



reliable delivery?



rapid response to changing needs?



fundamental definition of the product?

Waste: 

Activities that add no value, add cost and time



Symptoms; need to find root causes and eliminate them



7 types of waste

•Incidental Incidental Work •Work

•Pure PureWaste Waste

•Pure Waste •Value Value

•ValueAdding Typical Operation: 1-10% Activities are Value

Advanced Lean

Five Lean Principles 2. Map the Value Stream 

“Whenever there is a product or service for a customer, there is a value stream. The challenge lies in seeing it.” (Womack, Learning To See)

Identify all of the steps currently required to move products from order to delivery



Challenge every step: Why is is this necessary? necessary? Would the customer think the product is worth less if  this step could be left out?



Many steps are only o nly necessary because of the way firms are organized and previous decisions about assets and technologies

Value stream

All activities, both value added and non-value added, required to bring a product (or provide a capability) from raw material (initialization) into the arm of  the customer 3 Main Value Streams: 1.

Raw material to customer

2.

Concept to launch

3. Order to cash the Mapping the VS – See the whole and improve system Advanced Lean

Five Lean Principles 3. Establish FlowLine up all steps that truly create value in a rapid  

 Require that every step in the process be: Continuous movementsequence of  products, services and  Capable – right every time (6 Sigma) information through the various transactions from end  Available – always able to run (TPM) to end in the process



Flow appears impractical and illogical because we have been trained to think in terms of: 

departments, silos



batches, queues



efficiencies and backlogs



Adequate – with capacity to avoid bottlenecks and over capitalization (right-sized tools)

Batch Processing – 1 minute per piece Continuous Flow – Make One Move One

A

B Cycle Time= 30++ Min (weeks)

C

A B C Cycle Time= 12 Min

 Applying the right tools at the right stage

Advanced Lean

Five Lean Principles Nothing is done downstream until required   4. Implement Pull Nothing 

upstream

A system of cascading production and delivery instructions in which nothing is done by the upstream supplier until the downstream customer signals the need

  Through

lead time compression & correct value specification, let customers get exactly what’s wanted exactly when it’s wanted:  At

the pull of the customer/next process

 Using

signals (kanbans)

One more please!

Okay

supplier

customer

Pull: Customer Centric Advanced Lean

Five Lean Principles  A continual cycle of process improvements 5. Work to Perfection 

There is always more waste



People learn and exercise more creativity  

Involve employees in the process, training them as you proceed.



Continuous improvement leads to innovation



Use root cause analysis to solve problems promptly  and permanently.



Make objectives visible

Next Future State

Future State

Current State

Original State

Continuous Improvement never stops Advanced Lean

Lean Advanced Toolkit 

Level 2

Level 1

  n   o    i    t    l   a   c    i   o    t   o   s    T    i    h   p   o    S

Expose the Waste 5S • MUDA • Mistake proofing • Intro to Value Stream Mapping • Visual Management •

Reduce Variability Control the Process • Value Stream Mapping • • •

Standardized Work  Intro to Continuous Flow Intro to Pull Production

Time / Cultural Maturity  Applying the right tools at the right stage Advanced Lean

Lean Tools Description Reduce Variability Control the Process 

Value Stream Mapping



Standardized Work



Introduction to Continuous flow



Introduction to Pull production



Advanced Lean

Value Stream Mapping    T   C   P  A   E  N   G L

E

V    I    S  I    O   N    A

N

ENTERPRI SE Advanced Lean

alue Stream Overview View of the entire Supply Chain SUPPLIERSYOUR PLANT OR BUSINESS CUSTOMER TO END USER

TOTAL VALUE STREAM

See the Whole Process from Start to Finish – Wing to Wing Advanced Lean

alue Stream Overview • Value Stream Mapping (VSM) is a pencil and paper tool to ol 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 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

alue Stream Mapping Why Value Stream Mapping is a good place to start your LEAN  journey

• it helps you visualize vi sualize more than just the single-process 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

thelinkage Blueprint forthe a Lean Implementation Plan • itForms shows the between information flow and the material flow Advanced Lean

Value Stream Mapping VSM Steps • Identify the Value Stream for every Product Family major product family/program. Concept to launch - Order to delivery Current State Drawing

• Map the current state - Identify all the actions that don’t create value. Challenge every step

Future State Drawing

• Develop and map concepts for the future state as a management team

3 Implementation • Develop actions and drive toward future Plan state

 After completion….look for other opportunities to improve Advanced Lean

alue Stream Mapping Current

Future

Dash Dash Value Stream Stream Map – Initial State

Flow: Information Material

OPSI Prod’n Cont.

13 WEEK FORECAST

GEC

Daily Orders

4 WEEK FORECAST

13 WEEK FORECAST

Forecast

OPSI

Sales 13 WEEK FORECAST

Orders

CRC

HLA

Customer

Daily Schedule

HA

TES T

ASSY

 TEST

CONF

SHIP

3

2

2

6

4

2

6

15 Min.

3.5 Days 42 Min.

10 Days

8 Days 24 Min.

30 M in.

10 Days 1020 M in.

Irregular

5 Days 25 M in.

30 M in.

Heijunka

Non-ValueAdd 1,020 Hrs. (98% of Time) Value Add 20 Hrs. (2% of Time)

2% Value Added Time…98% Waste

Template ~ Create your own Value Stream Map

Daily

Customer

Heijunka

Irregular

 JIT

Too Much InventorySMT Long Raw Set Bds Ups 3

Batch 2

7 Days 15 Min.

 JIT

HA

8 WKS

SMED

Brds +RIP $3,300,000 19 Days Worth

3 Bd. Assy. 2,360 Units $425,000 11 Days Worth

Batch

 TEST

Batch

Batch

24 Min.

30 M in.

Heijunka, Late Pt. ID

CONF

Too Much

4

10 Days

8 Days

 Test WIP+FG $1,700,000 Too Much 10 Days Worth Inventory

 JIT

ASSY 6

2

3.5 Days 42 Min.

Heijunka, J IT

TES T

Ass’y WIP 210 Units $513,000 3 Days Worth

Create Supermarket

2Variation 10 Days

1020 M in.

SHIP 6

5 Days 25 M in.

30 M in.

Non-Value Add 1,020 Hrs. (98% of Time) Value Add 20 Hrs. (2% of Time)

Clearly Identifies Opportunities to Drive Sustainable Change

Create a Value Stream

Identify AWO opportunities from the Value Stream map Advanced Lean

Sales

Create Supermarket

Create Supermarket

SMT

7 Days

Too Much Variation Daily Schedule

Too Much Variation

 Test WIP+FG $1,700,000 10 Days Worth

Ass’y WIP 210 Units $513,000 3 Days Worth

Forecast Too Much Variation Orders

MRP

Too Much Inventory

Brds +RIP $3,300,000 19 Days Worth

CRC

HLA

13 WEEK FORECAST

Heijunka

• Portable Unit • Monitors Patient Vitals • Produce ~4,000/Qtr • Over 30,000 Variations

Raw Bds 8 WKS

Suppliers

Prod’n Cont.

Weekly Orders

GEC

Daily Orders

Daily

MRP

3 Bd. Assy. 2,360 Units $425,000 11 Days Worth

4 WEEK FORECAST

Prod’n Cont.

Prod’n Cont.

Weekly Orders

Suppliers

Dash – Lean Project Funnel  Funnel 

alue 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

7. Eliminate waste by executing the plan 8. Expand the scope to other areas

Don’t Wait!! – “Opportunities multiply as they are seized” Advanced Lean

Trace Collection Process: VSM  No Phones

EXTERNAL AGENCY

GECFA

 NL

L

Collections GE Money Mainframe (Vision Plus)

EXITS

L X

Mainframe

0-29 days  past due accounts

Workable/Non Workable

4 Hours + 4 Mins

V+,CPAC, ICBS

c

IWP

c

DMS

c App req

10+5+5 Mins

c

FCS

3-9 DAYS

c

c Sentricx

10 + 4 Mins

Hold

5 - 11 DAYS

L = Locate  NL = No Locate C = Call made

Wait Time Wait Time: up to 14 days

X

= Routed Advanced Lean

Value Add: Add: ~ 35 Min

Reduce TAT from 3-9Days to Less than 4 days

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     T   C   P  A   E  N   G L

E

V    I    S  I    O   N    A

N

ENTERPRI SE Advanced Lean

Standard Work  Why have Standard Work? Elimination 

Waste

 To make office process rules explicit Establish the explicit methods for manual tasks with respect to quality, quantity, cost and safety. prevent wastes



A tool for Improvement  There can be no improvement in the absence of  standards. Abnormal situation show that something is goingexpose on. 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 When normal and abnormal work activities are undifferentiated, waste almost inevitably occurs. Standard Work provides an efficient framework in which to determine when an abnormality has occurred so that it can be addressed.

•

Often poorly defined

•

Examples: • Standardize Input • Hand-off can create huge waiting time. Reduce time by standardization

Flow effect • •

Provide clarity about activities Reduce process variance

•

Makes process reliable Exposes more waste

•

Identify Problems

Normal

vs.

Abnorm al

Provides the Basis for Kaizen Advanced Lean

Why?

Standard Work   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.. 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 understand understands s their their task. task. 2. All tools tools and and equipment equipment are at arms length length 3. Standard Standard work has has been practiced practiced to to perfection 4. Continuo Continuous us observatio observation n and analysis analysis drives 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 •

Activity

•

Connection between activities

Connection Activity

Advanced Lean

Customer

Standard Activity  Activity

Customer

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. 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:

Required Output (Customer or Forecasted Demand)

 Time

Check any time if you’re on schedule: Daily 400 in-voices. It is 13:30, are we on schedule?

It’s 8:30 am. How are we doing?  Takt Time

60”

7 am 8 am 9 am 10 am 11 am noon

A

B

C

D

(60”) (60” (60”)) (60”)(12”)

Advanced Lean

Person

Orders

Standard Work: Work Sequence Element 2

Standard Work • What has to be done? • In what sequence? • How much time can it take?

Work Sequence  The order in which an person performs a series of repetitive tasks. It should be differentiated from the processing sequence, which is the order in which the part is processed.

Standard Work / Combination Sheet Use this Templat e N e w / Re v

P a ge

Orga niz a tion

Ar ea

X-Ray

Sta tio n 1 & 2

1of

1

J . Davi d

Sec ( )

Time Min (X)

Hr ( )

Production Line

2 /6 /0 2

Manual

A ut ut o

T ra ra ve ve l

Standard Work  Combination Sheet

Operation Name

1 2

Check Motor Issue DHR 

3 2

3 2

3

Install Gen. Housing

10

5

4

Install Clips

5

4

5

Install Term. Strip

6

6

6

Install/Wire Latch

4

4

10

6

10

20

30

40

M aan n ua ua l Auto

50

New / Rev

60

Travel Wait

Tubing

~~~~~~~~

70 74

80

Page

Organization

Shannon

Part Name

T ak ak t/ Ra Ra te te T im im e

Production Line

Operator 

AM X

Part Number 

P rro o du cctt io n Re Re q' q' d

Step  No.

7 Jumper Wire to Filter

Da te

Supe rvisor  

Standard Work Sheet Area

CF M Cell

Orbital Weld

90

1 of Supervisor  

1

Fern Bissonnette

Weld

Date

2nd Qtr. ‘01

Standard Work Sheet

End Finish

Part Number  Part Name

Weld

Cell 6 All Parts All Tubes

End Finish

Flex

Outside Cell FPI X-Ray EDM

Torch Braze Mech. Clean

Mech. Clean

Mark

Hydro Test

End Finish

Weld

Totals

40

30

Operation Time

T/T

Standard Work

Operator 

Scope of Operations From:

Raw material

To:

Finished Goods

Quality Check 

Safety Standard Precaution Work-in-Process

# Lots of  Standard Work-in-Process

Total Manual & Travel Time Operator 

Man/Travel Time

27 - avg lot = 6 Turns

Takt/Rate Time

100/Day

DPU' s

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 in-process inventory to ensure an even and controlled process flow.

Standard WIP should be kept as low as possible. possible . Advanced Lean

Standard Connection Connection Customer

Hand-offs (connection) (connection) are a big cause of waste in the office.. office

 The connection between two activities (hand-offs) 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 supplier-customer relationship. This will reduce the possibility for variance, which increases the quality standard in the office. Advanced Lean

Standardization Standardiza tion 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 multi-disciplinary 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 / Poke-Yoke 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 Normal difficult to detect

Advanced Lean

Abnormal

Relation with other Lean Tools Don’t “Manage” a Standard … Detect the Abnormality Visual Management

Look Here …

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 abnormalities. These abnormalities are then subject to Kaizen Events to improve the processes. Advanced Lean

Standard

Not Here …

Summary 

Standard Work 

…prevents waste to occur.



…exposes waste and is the basis for continuous improvement.



…increases your flexibility.

 Two levels of Standardization • Standard Activity • Standard Connection

Don’t “Manage” a Standard … Detect the Abnormality

Advanced Lean

Introduction to Single-PieceFlow (Continuous Flow)    T   C   P  A   E  N   G L

E

V    I    S  I    O   N    A

N

ENTERPRI SE Advanced Lean

Single-Piece-Flow Single-Piece-F low in a Cell 

Single-Piece-Flow Carrying out one-piece-at-a-time processing in order to eliminate stagnation of work (queue) in and between processing steps.

A

B

A

Cell An arrangement of people, systems, items, and methods with the processing steps placed right next to each other ( physically  physically or  digitally ) in sequential order, through which parts are processed in a continuous flow.

B

C

C

Physical Cell

Incoming Forms

Output

Digital Cell

Advanced Lean

Batch Vs Single Piece Flow Batch

Single Piece Flow

From: The Toyota Production System

Catches Defects too Late • How many more do you have? • Where are they in the process? • What is the root cause?

Catches Defects Immediately • You only have one • You know where it occurred • Resolve the root cause immediately

The Next Process is the Customer … Never Send Defects ! Advanced Lean

Why Use Single Piece Flow ? CTQ

Batch Production

Single Piece Flow

Quality Risk WIP FIFO Lead time Productivity * Changeover time ** • •

* Single Piece Flow productivity can be improved by balancing processes versus Takt Time ** Changeover time impact can c an 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 Single-piece-flow 1st time Value Stream Mapping

Prerequisites •

Process Level

Value Stream Mapping See the flow 

Single Facility (door-to-door)

Multiple Service Facilities

Across Companies

Advanced Lean

•

An (potential) area for  Cell

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 lead-time reduction.

No Start with the pace-maker process. That are the process steps in the value stream that are closed to the customer.

Advanced Lean

Roadmap - Creating Continuous Flow •

Cell Content Start looking at what items you should have in the cell.

•

Actual Work Then analyze actual work to be done in the cell.

•

System, Item, and Lay-out Optimize System, Item, and Cell Lay-out for creating continuous flow.

•

Work Distribution Distribute the Work among the People

•

Going to reduce waste out of: • Steps

Implement, Sustain, and Improve

• People activities

Actual implementation of Continuous Flow in a Cell

• System activities • Item design • Lay-out

We are going to look at the cell with Eyes for Flow  Advanced Lean

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 ti me 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

Cells for one item

A

Advanced Lean

B

+ Pushes you to create short changeover time (waste reduction)

Cells for multiple items

A&B

A&B

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 1     m     e       t      I 

2

3

4

5

6

7

A

X

X

X

X

X

B

X

X

X

X

X

C

X

X

X

Map together in one Value Stream Map.

After analyzing, you 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 t oo much, then separate cells. For example, item C does not look to t o be suitable for the cell. Advanced Lean

Do you have the right items?

3. Variance of different product types Total Work Content (see also next section) of the product going through the cell should not variance more than 30%, otherwise take them apart.

  e   m    i    T

Max. ~ 30%

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?

TAKT time:

Available Time Required Output (Customer Demand)

Advanced Lean

It’s the heartbeat of the process

or ma

ng

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, 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

Process Study

Proc es s

Process Steps

Date/Time

Obs erv er  

Operator  Work Element

Observed times

Low Low est System Repeatable Cycle Time

Notes

 s  n t s  e  m  e  l e  e    k k  r  w o  s  a  e s  t e  s  a  s w  u    o o  i  b v  o  y  a n  e  d  u  n c l u  n  i  t  o  D o n Full Process Study Template

Use this

Template Advanced Lean

Microsoft Excel Worksheet

Paper Kaizen First analyze the Total Work Content, and design improvement on paper …

Current 240

Improved Paper Kaizen

K

Approach of immediately leaving out wasteful steps. You eliminate some waste on paper before implementation.

Total Work Content for one item in the cell are activities A-K.

210

J I

K

180

  e 150   m    i    T

H G F

First understand all the work elements that make the total work (Current)…

120

90

E

60

D C B

30

A Advanced Lean

I H G F

…then have a critical look on the work elements and design improvement on paper (Improved) to reduce wastes.

Paper Kaizen • Elimination: C and J • Time reduction: A and F

E D B A

Operator Balance Chart  … then connect to Takt TIme.

210

180

Operator Balance Chart (OBC)

Takt Time 205 sec.

Picture of distribution of work among operators in relation to Takt Time.

K

• Simple • Visual

150

I 120

90

H G F

F

60

E

E

30

D B

D B

0

Takt Time 110 sec. K

Takt Time 82 sec. E

I

A

A

H G

1

1

2

Advanced Lean

• Quantative • No guesswork

D B A 1

K H G F

2

I 3

= Operator 

Is your System suitable for flow? Is your system able to handle the Takt Time? If a System (or Machine) is part of Continuous Flow Cell, you should make sure it is appropriate enough for  handling the Flow.

Effective System Cycle Time < (Fastest Takt Time – 20-25%) • Fluctuation in demand • Equipment is often less flexible than people

Also ask the follow questions about your System: Valuable?

- Does the System add value?

Capable?

- Does the System create no defects?

Available?

- Is the System always available when needed?

Adequate?

- Is the System not a bottleneck for the flow?

Flexible?

- Is the System flexible to adjust for changes?

• Is it working in batch or  single piece? • Easy to replace (price)? • Easy to maintain? • Easy to use? • 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

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 • with high volume, low variety • with high frequency of use • with stable input

Advanced Lean

For example • Pay-roll •

Policy request processing

•

Customer Service Centers

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, operator-based work steps close together to allow flexible work element distribution.

Advanced Lean

Office Cell Layout  Cellular environment Cellular environment is an area of continuous flow . Physical…

Incoming Forms

Out

• Multi-functional • Co-located • One piece flow • Balanced – waste removed • Cross trained team • Staffed within the ‘interval’ • 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

efficiently? Total Work Content

Number of operators: Example

134 45 - 3

(after paper Kaizen)

Takt Time  – buffer for variance

= 3.2 operators Lean Option

Option A Balance the line

Takt Time 45 sec.

45

Option B

• Maximize operator work.

Lean Option

• Let Op. 4 do other things

Buffer for variance

Continuous Improving

30

• More variance reduction, reduces buffer.

15

• Eliminate by reducing more waste.

0 1

Advanced Lean

2

3

4

1

2

3

4

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 among operators, here two examples:

Specialize

Do it all 75

2x Takt Time

How will you design that in your physical or  digital layout. Takt Time 38 sec.

E D B

H G F

A Incoming Forms

Advanced Lean

1 Out

2

60

H G F

H G F

E

E

30

D B

D B

15

A

A

0

1

2

45

Implementation Stages Implementing the Flow consists of four stages: 1.

Initial Process Design

2.

Mock-up

3.

Debugging (!)

4.

Sustaining the Flow

  e    t   a   t    i   c   n   o   e   s   s   m   a   e   v   s   l   s   o   e   v   n   c   i   o   r    P

Paper Kaizen & Initial Process Design

Mock-up

Debugging

½-2 days

2-4 week s

Avoid making things permanent, until stage 4, because it is a real learning-by-doing implementation.

Advanced Lean

Sustaining

Stage 1 – Initial Process Design

The actual initial continuous flow design is not a bottom-up, self-directed 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 – Mock-Up

The initial design represents theoretical ideas for creating cr eating continuous flow. Goal of the mock-up 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 mock-up 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 re-listed and re-timed.

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 



Is there real one-piece flow? Can the process associate “make one, move one”? Are the items go through the cell in a flow?



Do process associates perform the work as specified in the operator  balance chart and the new standard way of working? If not, why?



Do the team leader and supervisor understand their job responsibilities?



Does the information flow? Do the process associates, as sociates, team leader, and supervisor know: Takt Time, what to process, how many to process, how many items are done, what problems are occuring, etc..?



Are the system, item, and cell layout right?



Does the cell use the minimum amount of equipment and inventory?



Can the cell change over between different end items in time?



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 m aintains a steady state. Things are either improving or slipping backward. So, the best way to maintain the continuous flow performance is to keep improving.. improving

Advanced Lean

Introduction to Pull Production    T   C   P  A   E  N   G L

E

V    I    S  I    O   N    A

N

ENTERPRI SE 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 • Just-in-time 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 shortinterval 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) (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 : PROCESS #1

WIP = ? PROCESS #2

PROCESS #3

Breakdown

Yield=2/h RAW MATERIAL

Yield=1/h

Yield=2/h FINISHED GOODS

WORK IN PROCESS

Standard WIP = 3

Pull System : PROCESS #1

PROCESS #2

PROCESS #3

Breakdown

Yield=2/h RAW MATERIAL

Yield=1/h

Yield=2/h

WORK IN PROCESS

Pull improves work in process management

Advanced Lean

FINISHED GOODS

Pull Characte Characteristics ristics • 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

1st LEVEL SUPPLIER

9

2nd LEVEL SUPPLIER 10

PROCESS #3

PROCESS #2 3

PROCESS #1 4

5

9

2nd LEVEL SUPPLIER 8

Advanced Lean

7

6

10

How does Pull work ?

Min/Max is the most often used methodology to manage supermarket/buffer inventory level.

Pull

Max>

Pull Pull

Replenish 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… 2.

Leveli Leveling: ng: Overal Overalll level leveling ing of a proc process ess to redu reduce ce varia variatio tion n in output output

3.

Sequen Sequencin cing: g: Manag Managing ing the order order in which which work work is proc process essed ed (Mixed (Mixed Production)

3.

Stabi Stabilit lity y or or Stan Standa dard rd Work: Work: Reduce Reduce proces process s variat variation ion Customer Demand

H  e i      j     u n k   a

Leveling

Toyota Production System    e

   m     i     T      n     i       t    s    u     J

   a     k    o     d     i     J 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 ma terial replenishment  Kanban

Supplying Process

Using Process Required Part/ material

q

q

Cards Carts

q

q

Bins Labels

Kanbans are used to signal the supplying process that more material is needed  Advanced Lean

 Jidoka  Jidoka allows machines/processes machines/processes to operate autonomously by shutting down automatically if an abnormality abnormality occurs. occurs. This prevents prevents defective products from passing to the next process.  There are two main elements of Jidoka… •

Autonomation: Automation with human intelligence – operate autonomously

•

Stop at Every Abnormality

Abnormal

Toyota Production System    e

   m     i     T      n     i       t    s    u     J

   a     k    o     d     i     J Heijunka

Fix the process (problem) before moving on Advanced Lean

• Lean Overview • Lean Methodology  • Lean Toolkit  • Lean Deployment  • Lean Glossary  • Lean Resources

Advanced 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

≠

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 Kaikaku = Revolutionary Change    t   n   e   m   e   v   o   r   p   m    I

 e n  K  a i z

 e n  K  a i z

   u     k     a     k      i    a     K 

   u      k     a      k       i    a     K   e n  K  a i z

Time

Need Both Kaizen and Kaikaku!! Advanced Lean

  u    k    a    k     i   a    K 

 n  i z e  a  K 

Lean Deployment  Value

Value Streams

Flow Fl ow

Pull

Perf Pe rfec ecti tion on

PROCESS Lean (Elimination of Waste) Fron t Line s

Senio r Mgmt FLOW Lean . (Flow and Pull Improvement)

Process Lean • Lean for waste elimination & process efficiency • Empowered teams for speed of  execution • Tap knowledge residing in grass root level . •Simple Communication

Focus

Flow Lean • Focuses establishing lean workflow Use of Technology for flow  Wing to wing improvements  Establish Pull With customer involvement  Six Sigma for complex problems

Responsibilities clearly demarcated  d emarcated  Advanced Lean

Lean Deployment  Why some companies fail? 1.

 Too busy managing day-to-day – no time for continuous improvement and organizational organizational learning

2.

Belief that past strategies and approaches will continue to be effective in the future

3.

Management 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=PORTAL

  y   r  o  o   t   i  s  o   p  e   R   n  a   L e Advanced Lean

ean Rewards & Recognitions

Got any Lean Improvements….. Upload

it onto the Lean Workflow 

 All

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