Training Lean

TEMPUS LeanEA
LEAN Training Course

May 23-27 2011
Course Leader:
Associate Professor Dr. Kim Hua Tan
TABLE OF CONTENTS
Introduction
Lecture Notes:
Session 1 Introduction Workshop
Session 2 Toyota History And Background
Session 3 Lean Philosophy and Principles
Session 4 Tabletop Game
Session 5 5S Visual Management
Session 6 Data and Root Cause Analysis, Analyzing Process Performance
Session 8 JIT Lego Game
Session 9 SMED and Poke Yoka
Session 10 Heijunka, High-Mix Low-Volume and OEE
Session 11-12 Operations and Process Improvement
Session 13-14 The Theory of Constraints
Session 15 Web Lean Game
Session 17 Mindset, Behaviour and Coaching
TEMPUS LeanEA Project

Lean Training Course in Nottingham (23-27 May 2011)
AIMS OF THE MODULE: This module aims to give participants: an understanding of Lean, and
the analytical skills to achieve incremental and step changes in performance: the skills to develop
and apply work standards in manufacturing and service planning and control. In particular, the
module addresses the concepts, tools and techniques that are essential to creating world class lean
manufacturing and service organizations.
LEARNING OUTCOMES:
After completing this module, the participants should gain following benefits:
Understand Lean as a system, not just as a collection of tools and techniques
Develop skills, tools and concepts to analyze, manage, and improve operations
Understand and apply hands-on application of Lean principles
Learn and internalize Lean principles for sustainable operations transformation
Understand how to apply Lean to develop own operations transformation action plans
Bring home potential outlines for Lean teaching in the university
ORGANISATION:
In this 5-days module, participants will learn about Lean through a series of discovery exercises, case
studies, games, videos, and guest lectures. In day 1, participants begin to develop a language and lens
for a Lean way of thinking. In days 2, 3 & 4, participants will learn, apply, and reflect on Lean
principles and tools through videos, lectures, games and exercises. Guest lectures will be organized to
enable participants to interact with practitioners and understand the issues and challenges in Lean
implementation. Finally, in day 5, participants will look at Lean and their operations in a wholly new
way. Participants will learn and understand the leadership and mindset required to make Lean happen.
CONVENER/TEACHER:
KH Tan
J Guinery
K Pawar
P Marzec
M Tse
Guest speakers
o Bojana Militunovic, Procurement Specialist, KBR
o Lina Zabaliunaite, Manufacturing Manager, Westmill Foods
TEMPUS LeanEA Project

Lean Course in Nottingham (23-27 May 2011)
COURSE SYLLABUS:
SessTime
Tutor
Topic
ion
May 23 (Monday): Introduction to Lean
1
09:00JT/
Introduction and welcome to Nottingham
10:00
KH Tan 5-day program outline
2
10:30KH Tan Toyota history and background
12:00
TPS house
Toyota video
3
13:00Mike
Lean philosophy and principles
14:30
Tse/KH 8 wastes, MUDA, exercises
Tan
Pull versus push
4
15:00KH Tan Tabletop game
17:00
Process redesign, one piece flow
May 24 (Tuesday): Introduction to Lean Techniques
5
09:00KH Tan 5S, Visual management
10:30
Examples from cases
Name card exercise
6
11:00Mike
Data and root cause analysis, analyzing process performance
12:30
Tse
Run charts, Histograms, Fishbone diagrams, 5 why exercises,
etc.
7
13:30Guest
Lean implementation examples (Westmill Foods)
15:00
lecture Making it happen
8
15:30KH Tan LEGO game
17:00
Pull versus Push
Floating bottleneck
May 25 (Wednesday): Introduction to Lean Techniques
9
09:00KH Tan SMED and Poke Yoke
10:30
SMED Game
10
11:00Peter
Heijunka, High Mix Low Volume and OEE
12:30
Marzec Heijunka exercise
11
13:30K
Gemba kaizen
17:00
Pawar
Examples
12
May 26 (Thursday): Putting Lean into Practice
13
09:00Jane
Lean in practice - Theory of Constraint (TOC)
12:30
Guinery
14
15
13:3015:00
Mike
Tse
16
15:3017:00
KH Tan
Lean game (IT base )

Web game for larger class size
Teaching Lean in classroom/training center
Course exam preparation
2
May 27 (Friday): Putting Lean into Practice

17
09:00KH Tan Leadership, mindset, behaviour, and coaching
12:00
Old maid game, attention test
Peter
Managing continuous improvement
18
Marzec Video: American vs Japanese suggestion programs
19
20
12:0012:30
13:3015:00
KH Tan
Examination
Guest
lecture
15:3016:30
KH Tan
Lean implementation examples (KBR)

Service operations
Issues and challenges
Concluding discussion & Award ceremony
ASSESSMENT:
Assessment will be by means of an examination (100%), to be held on 27th May 2011.
COURSE TEXTS:
Books
Core texts
Rother and Shook (2003) Learning to See: Value Stream Mapping to Add Value and
Eliminate Muda, Lean Enterprise Institute
Jones and Womack (2003) Seeing The Whole, Lean Enterprise Institute
Smalley (2004) Creating Level Pull, Lean Enterprise Institute
Harris, Harris, and Wilson (2003) Making Materials Flow Creating, Lean Enterprise
Institute
Rother and Harris (2001) Creating Continuous Flow, Lean Enterprise Institute
Nicholas, J.M. (1998) Competitive manufacturing management, McGraw-Hill
International
Bicheno, J. (2004) 'The New Lean Toolbox: Towards Fast, Flexible Flow' (3rd ed)
Picsie Press, England.
Womack J., Jones D. (1996) Lean Thinking: Banish Waste and Create Wealth in your
Corporation, Simon & Schuster, New York.
Imai (1997) Gemba Kaizen: A Commonsense, Low-Cost Approach to Management,
McGraw-Hill
Liker, J. (2004). The Toyota Way: 14 Management Principles from the World's
Greatest Manufacturer, McGraw-Hill
Womack, J.P. & Jones, D.T., (2003). Lean Thinking: Banish Waste and Create
Wealth in Your Corporation, New York: Free Press.
Spear (2008) Chasing the Rabbit: How Market Leaders Outdistance the Competition
and How Great Companies Can Catch Up and Win, Foreword by Clay Christensen,
McGraw-Hill
Drew, McCallum and Roggenhofer (2004) Journey to Lean: Making Operational
Change Stick, Palgrave Macmillan
Miller and Schenk (1993) All I Need to Know About Manufacturing I Learned in
Joe's Garage
Satoshi Hino(1996), Inside the mind of Toyota : management principles for enduring
growth. Productivity Press.
PMI (2000) The Process Manager: Transforming Goals into Results, Process
Management International
Lean Manufacturing Advisor (2006) Visual Tools: collected practices and cases,
Productivity Press, New York
Hiroyuki Hirano (1995) 5 Pillars of the Visual Workplace, Productivity Press, New
York
Mahoney, RM (1997) High Mix Low Volume Assembly, Prentice-Hall,
Englewood Cliffs, NJ
Lane, G (2007) Made-to-Order Lean: Excelling in a High-Mix, Low-Volume
Environment, Productivity Press
TPM: Collected Practices and Cases, 2005, Productivity Press
Shook, J (2003) Lean lexicon: a graphical glossary for lean thinkers, Lean
Enterprise Institute
The Productivity Press Development Team (2002) Standard Work for the
Shopfloor, Productivity Press
Imai , M (1997) Gemba kaizen: a commonsense low-cost approach to
management, McGraw-Hill
Kaizen for the shopfloor (2002), Productivity Press
Cellular manufacturing: one-piece flow for workteams(1999), Productivity Press
Drury, C. (2005). Management Accounting for Business, Thomson Learning.
Sutherland, J. & Canwell L, D. (2004) Key concepts in Strategic Management,
Basingstoke, Palgrave.
Dweck, C.S (2007) Mindset: The Psychology of Success, Random House
Publishing
Harding, S. & Long, T. (2008) MBA Management models, Aldershot, Gower
Publishing.
Rother, M (2009) Toyota Kata: managing people for improvement, adaptiveness,
and superior results, McGraw-Hill
Drury, C. (2005). Management Accounting for Business, Thomson Learning.
Sutherland, J. & Canwell L, D. (2004) Key concepts in Strategic Management,
Basingstoke, Palgrave.
Simon (2000), Performance Measurement and Control Systems for Implementing
Strategy, Prentice Hall.
Journals
Spear and Bowen (1999), Decoding the DNA of the Toyota Production System,
Harvard Business Review, September-October
Shah, R. and Ward, P.T. (2007), Defining and developing measures of lean
production, Journal of Operations Management, Vol 25, pp 785-805
Ahmad, A., Mehra, S. and Pletcher, M. (2004), The Perceived impact of JIT
implementation on firms financial or growth performance, Journal of Manufacturing
Technology, 15(2), pp 118-130
Bokhorst, J., Slomp, J (2010) Lean Production Control at a High-Variety, LowVolume Parts Manufacturer, Interfaces, 40(4), p303-312
Choobineh, F (1988) A framework for the design of cellular manufacturing

systems, International Journal of Production Research, 26(7), p1161-1172
Wemmerlov, U., Hyer, N (1989)Cellular manufacturing in the U.S. industry: a

survey of users, International journal of production research, 27(9),p1511-1530
Choo, A. S. (2010) 'Impact of a Stretch Strategy on Knowledge Creation in Quality

Improvement Projects'. IEEE Transactions on Engineering Management, PP, 99, 110.
Ferdows, K. (2006). "Transfer of Changing Production Know-How." Production &

Operations Management 15(1): 1-9.
Gosling, J., Mintzberg, H (2003) The Five Minds of the Manager. Harvard
Business Review, Nov, 81(11) p54-63
Hamel, G. & Prahalad, C. K. (1989) 'Strategic Intent'. Harvard Business Review,

May/June, 63-76.
Hamm, J (2006). The Five Messages Leaders Must Manage, Harvard Business
Review, May
Inkpen, AC (2005) Learning through alliances: GM and NUMMI, California

management review , 47, p114-136
In addition there are number other articles/additional material which provide useful supporting
information, these will be provided during the workshop.
18/05/2011
Agenda
Fire Exit
Campus Map
Wifi Point
Catering and Coffee break
Schedule
Nottingham Staff
Computer lab
(on Thursday)
2
Lecture room
in normal day
18/05/2011
Hotel to Jubilee Campus
Walk Path to Victoria Center (Bus stop)
Bus stop at city

centre for buses to
Jubilee Campus
From Jubilee:
All the bus with Destination - Victoria
Center is suitable
Days Hotel
Go to Jubilee 28, 30, 31
Bus Routes (1)
Bus Routes (2)
There are two ways to get into

Jubilee Campus:
(2) Orange line 36,35,36,37 to the back

entrance (go through a Pedestrian/cycle Take off at Hillside
route) at Derby Road A6200, Take off at
"Hillside"
(1) Pink line: 28,30,31 to the MAIN

ENTRANCE at Wollaton Road
A609, Take off at "Jubilee Campus"
Pedestrian
Information:
http://www.nctx.co.uk/orange/
Route map in City Center:
http://www.nctx.co.uk/orange/route.php
Information:
http://www.nctx.co.uk/pink/times.php
Route map in City Center:
http://www.nctx.co.uk/pink/route.php
All fair is 1.6 single, no weekly ticket

1 Day ticket is 3.2
Getting off point at Jubilee Campus
http://www.nctx.co.uk/fares/onthebus.php
18/05/2011
How to Connect to UoN-guest

Wireless
Some laptops have a switch on the side of the laptop to activate the wireless adaptor. Make sure this is
switched on
If you are in range your laptop should automatically connect to the UoN-guest network. If not, find
UoN-guest in the list of networks available, then double click to connect. If it is not listed you are not
within range of the hotspot. Please move the laptop until you are in range
1.
Open your web browser, then go to any website that is not the University of Nottingham (see next
page)
2.
The UoN-guest wireless login page will appear
3.
Enter your email address
4.
Select, I accept the terms and conditions of this service , to confirm you have read the terms
and conditions on this page
5.
A small pop-up window will appear. This is for you to use later to logout
6.
You are now connected to UoN-guest and can browse the internet
Wireless Access Point
Day 1 Day 2
May 23 (Monday): Introduction to Lean
10
Day 3 Day 4
May 24 (Tuesday): Introduction to Lean Techniques
May 25 (Wednesday): Introduction to Lean Techniques
09:0010:00
JT/
Introduction and welcome to
KH Tan Nottingham
5-day program outline
09:0010:30
KH Tan
5S, Visual management
Examples from cases
Name card exercise
10:3012:00
KH Tan Toyota history and background
TPS house
Toyota video
11:0012:30
Mike Tse
Data and root cause analysis,

analyzing process performance
Run charts, Histograms, Fishbone

diagrams, 5 why exercises, etc.
13:3015:00
Guest
lecture
Lean implementation examples

(Westmill Foods)
Making it happen
15:3017:00
KH Tan
LEGO game
Pull versus Push
Floating bottleneck
09:0010:30
KH Tan
SMED and Poke Yoke
SMED Game
May 26 (Thursday): Putting Lean into Practice

09:0012:30
Jane
Guinery
Lean in practice - Theory of

Constraint (TOC)
15
13:3015:00
Mike Tse
Lean game (IT base )
Web game for larger class size
Teaching Lean in
classroom/training center
16
15:3017:00
KH Tan
Course exam preparation
13
14
13:0014:30
Mike
Lean philosophy and principles
Tse/KH
8 wastes, MUDA, exercises
Tan
Pull versus push
15:0017:00
KH Tan Tabletop game

Process redesign, one piece flow
Heijunka, High Mix Low Volume

and OEE
Heijunka exercise
10
11:0012:30
Peter
Marzec
11
13:3017:00
K Pawar Gemba kaizen
Examples
12
11
12
18/05/2011
Day 5
Catering
1) Morning tea (10.00-10.30)
- Tea, coffee and mineral water
May 27 (Friday): Putting Lean into Practice

17
09:0012:00
KH Tan
Peter
Marzec
18
Leadership, mindset, behaviour, and coaching
Old maid game, attention test
Managing continuous improvement
Video: American vs Japanese suggestion programs
12:0012:30
KH Tan
Examination
19
13:3015:00
Guest
lecture
Lean implementation examples (KBR)
Service operations
Issues and challenges
20
15:3016:30
KH Tan
Concluding discussion & Award ceremony
2)
Lunch (12.30-13.30)
A Selection of Freshly Prepared Sandwiches
on Wholemeal, Malted & Farmhouse Breads
A Selection of Freshly Filled Wraps
Mini Indian Selection with Mango Chutney
Chicken Satay
Savoury Lattice Pastry (v)
Herb Sausage Bites
Fresh Crunchy Vegetables (v)
Fresh Fruit Platter
Plum Tomato & Parmesan Tart (v)
Cajun Chicken Skewers
Crispy King Prawn
Paneer Tikka Pizza (v)
A selection of Bite Sized Cakes
& Exotic Fresh Fruit Slices
13
3) Afternoon Break (15.00-15.30)

- Tea and coffee
4) Dinners
- Monday:
Marrakesh Morrocan Bar and Restaurant
14
Nottingham Staff
Dr. Kim Hua Tan
Prof. Kulwant Pawar
Dr. Jane Guinery
Mobile: 07904802221
Email: kim.tan@nottingham.ac.uk
Email:
Kulwant.Pawar@nottingham.ac.uk
Email:
Jane.Guinery@nottingham.ac.uk
Mike Tse
Peter Marzec
Mobile: 07598950267
Email: lixykt@nottingham.ac.uk
Mobile: 07975511327
Email: lixpm12@nottingham.ac.uk
15
18/05/2011
Agenda
Why Learn From Toyota?
Background and History of TPS
TPS System
Revenue Of Toyota

Reached 10% market share in 2000, and Toyota was
number one in global automobile sales for the first

quarter of 2008
Consistently maintains top productivity
Consistently achieves winning quality levels (before
the recall scandal )
Has triggered a global transformation of traditional
manufacturing to Lean Manufacturing.
Source: http://www2.toyota.co.jp/en/news/11/index.html
18/05/2011
Background of Lean And TPS
Agenda
The core concept of Lean originates from
the Toyota Production System (TPS)
Movie clip play
Background And History Of TPS

TPS System
Toyota began car production in 1933
TPS was developed in Japan in the post
1933
start car
product
line
1937
1st A
model
1946
Major
strike
1950
1960s
Start of Supplier
TPS
development
1980s
Transplants
war period after the 2nd world war
It was established under certain
geographic, economic, political and

cultural circumstances as an attempt to
increase Toyotas competitiveness
Low volume made mass production inflexible

Low productivity
Lack of resources
Important Persons In Toyota
History Of Manufacturing Management
Sakichi Toyoda, the founder of the Toyota group

of companies, started Toyota as a textile machine
company.
Kiichiro Toyoda, son of Sakichi and founder of the

Toyota automobile business..
Taiichi Ohno, Toyota's chief of production in the

post-WWII period. He was the main developer of
Toyota Production System (TPS).
Dr. Shigeo Shingo: A consultant to Toyota.

Shingo Prize is the highest manufacturing
excellence award in the U.S. The prize is given both
to companies and individuals who contributed to the
development of manufacturing excellence.
Source: http://www.strategosinc.com/lean_manufacturing_history.htm
18/05/2011
Waste Reduction By Lean

Manufacturing
Customer placed
the order
Customer placed
the order
Lead
time
Lead
time
NO
WASTE
WASTE
Completed the
order
Finished
Product
delivered
Agenda
Definition:
Lean is a
manufacturing
philosophy
which shortens
the production
lead time by
eliminating
sources of
waste.

Background And History Of TPS
TPS System
Finished
Product
delivered
Completed the
order
10
House Of Toyota
Toyota Production System (TPS)

Definition: The production system developed by Toyota
Motor Corporation to provide best quality, lowest cost, and
shortest lead time through the elimination of waste.
Goal: Highest Quality, Lowest Cost, Shortest Lead Time
TPS is comprised of two pillars, Just-in-Time and Jidoka

(autonomation) , and is often illustrated with the "house"
shown on the next slide.
Jidoka
Just-in-Time
Stop and notify of

abnormalities
Continuous Flow
Takt Time
Pull System
TPS is maintained and improved through iterations of

standardized work and kaizen (continuous improvement),
following PlanDo-Check-Act (PDCA Cycle from Dr.
Deming), or the scientific method.
Heijunka
Separate mans
work & machines
work
Standardized Work
Kaizen
Stability
Toyota Production System House
11
12
18/05/2011
The Toyota Way
Another e.g. The Ceva Lean House
Challenge Long-term vision,

courage and creativity!
Excellence
Goals
Customer Satisfaction
Fast response
Low cost
Human Development
Zero defects
Physical &
mental safety
Flow
Principles
Kanban
Scheduling
Takt time
One-piece-flow
LEAN audit
*Emphasis is on operating system
Stop the
line
Built-inquality
5 whys
Poka yoke
Kaizen Innovation and

evolution!
Genchi Genbutsu Go to the
source to find the root cause!
Leveling
Stability
TPM
Standard
operations
Continuous
Improvement
Problem Go and see

solving
Standardized Work
Foundation
Empowerment
Quality
Pull
JIT
Challenge
Work
instruction
5S
Training
KPIs
Respect for
People
Continuous Improvement
Cross training
Waste
elimination
PDCA
Visual
management
Respect Respect, take

responsibility and mutual trust!
Kaizen form
Teamwork Growth and

performance!
Task
descriptions
13
14
The 4P Model of Toyota Production

System (TPS)
TPS
Problem
Solving
The Categories And The 14 Management

Principles Of The Toyota Way
Category
Management principles
Philosophy (long-term thinking)
Base management decisions on a long-term philosophy, even

at the expense of short-term financial goals
Process (eliminate waste)
Create process flow to surface problems

Use pull systems to avoid overproduction
Level out the workload
Stop when there is a quality problem
People and Partners
Standardize tasks for continuous improvement

Use visual controls so no problems are hidden
Use only reliable thoroughly tested technology
Process
People and partners (respect, challenge, and

growthem)
Grow leaders who live the philosophy

Respect, develop and challenge your people and teams
Respect, challenge, and help your suppliers
Philosophy
Problem solving (continuous improvement and

learning)
15
Continual organizational learning through Kaizen

Go see for yourself to thoroughly understand the situation
Make decisions slowly by consensus, thoroughly considering
16
all options; implement rapidly
18/05/2011
Toyota Production System (TPS):

Related Terms
Lean Application In Other Areas
Ohno System
Lean management in Office
MAN (Material as Needed) - Harley Davidson

MIPS (Minimum Inventory Production Systems) -
Westinghouse
Stockless production - Hewlett Packard
Lean in fastfood restaurant - McDonald
Zero inventory production system

Lean Manufacturing/Production - MIT
17
18
Reference
Book
Liker, J; Meier, D. (2005). The Toyota Way Fieldbook: A Practical Guide
for Implementing Toyota's 4Ps. McGraw-Hill.
Satoshi Hino(1996), Inside the mind of Toyota : management
principles for enduring growth. Productivity Press.
Journal
Spear and Bowen (1999), Decoding the DNA of the Toyota Production
System, Harvard Business Review, September-October
Website
http://www2.toyota.co.jp/en/news/11/index.html
http://www.strategosinc.com/lean_manufacturing_history.htm
19
18/05/2011
Purpose Statement
Previous session:
We know where is lean originated from We know
Toyota has developed an amazing management
philosophy
This session:
We will cover the core philosophy in of Lean
management, for instance, 8 Muda (wastes), JIT,
Kanban, Toyota DNA.
2
Three Types of Waste In Lean

Manufacturing
Agenda
MUDA
Unreasonableness
8 Wastes
Pull Versus Push
Toyota DNA
Inconsistency
10 JIT Elements
Operations/activities that do
not add any customer value
18/05/2011
Muda - Introductory Quotation
Non-Value
Added
Waste (Muda in Japanese) is

anything other than the minimum
amount of equipment, materials,
parts, space, and workers time,
which are absolutely essential to
add value to the product.
Vs
Value
Added
Non-Value Adding
Process:
Value Adding Process:
Those process steps that

take time, resources, or
space, but do not add
value to the product or
service itself.
A process step that

transforms or shapes a
product or service
towards that which is
sold to a customer.
?%
?%
Shoichiro Toyoda (
),
Chairman of Toyota (19921999)
5
Identify V.A. vs. N.V.A.
Lean Versus Traditional Approach
Ask:
Is this something the customer
would be willing to pay for?
Value
added
Value
added
Ask:
Non-value added
Does this activity change the

form, fit or function of the
product or service?
Traditional Approach
Non-value added
Lean
N.V.A. but necessary those that add no value to the customer but must be done.
7
18/05/2011
Muda Elimination Perspective
Elimination of Muda
Toyota perspective on waste is substantially different from the
This is the manufacturing system developed by Toyota which pursues

streamlining throughout the entire system through the elimination of
Muda, and aims to build quality in at the manufacturing process while
recognizing the principle of cost reduction. It also includes all the
accompanying technology necessary to accomplish those aims.
perspective adopted by the rest of other

E.g. it is common knowledge that inventory is waste, however,
when we actually see inventory on the shopfloor, we might

think:
1)we tend to see either something necessary for production
to run smooth, or
2) it is evidence of healthy manufacturing
Smooth?
Whats the difference in Toyota perspective?

Toyota does not view inventory in terms of productivity but
Productive?
in terms of cash flow
Father of TPS - Taiichi Ohno (
10
Waste
Agenda
TWO DIMES A method to
remember the 8 forms of

waste
MUDA
8 wastes
Some lean expert raised 7 wastes
Transportation
Pull Versus Push
Waiting
Toyota DNA
Over production
10 JIT Elements
Defects (Correction)
Inventory
Motion
Excess (over) processing
Shared knowledge
11
12
18/05/2011
The 7 Wastes
Waste
Description
WAITING
TRANSPORTATION
Waiting for Upstream

process to provide
inputs
Caused by the
unnecessary movement
of material , information
MOTION
1. Overproduction
Producing too much or too soon, resulting in poor flow of

information or goods and excess inventory
2. Defects
Frequent errors in paperwork, product quality problems, or poor

delivery performance
3. Unnecessary
inventory
Excessive storage and delay of information or products, resulting in

excessive cost and poor customer service
4. Inappropriate
processing
Going about work processes using the wrong set of tools,

procedures or systems, often when a simpler approach may be more
effective
5. Excessive
transportation
Excessive movement of people, information or goods resulting in

wasted time, effort and cost
6. Waiting
Long periods of inactivity for people, information or goods,

resulting in poor flow and long lead times
7. Unnecessary
motion
Poor workplace organisation, resulting in poor ergonomics, i,e,

excessive bending or stretching and frequently lost items
Caused by non-value
added movement of
people and machines
What might it look like

Unnecessary walking, bending,
twisting
Searching through database,
files, manuals
Extra clicks or keystrokes
13
Work in process waiting for

input/ information
Awaiting Approval
Wait for meeting to start
Waiting for systems to start
Moving documents
from place to place in
the process
Manual workflows
Office Moves
14
Source: Hines & Taylor, 2000
DEFECTS/ CORRECTION
This type of waste
occurs whenever we
have rework, defects or
audit
INVENTORY
This waste is work in
process or finished
product
OVER PROCESSING
Caused by
unnecessary
processes & operations
OVER PRODUCTION
Producing more product /
information than the customer
wants and before the customer
wants it

Incorrect reports/data
entry errors
More finished product

than the customer needs
Information not right

the first time
Emails/ requests to be read

or handled
KNOWLEDGE
Do not fully utilize our
employees or transfer learning

Printing extra copies of reports
Reports or information nobody
uses
Back ups between departments
Unnecessary hands-off
No decision rights
Complicated approvals
15
Repeating the same mistake

Specialists, not all employees solving
problems
Best Practices not shared across
organization
16
18/05/2011
Push versus Pull
Agenda
MUDA
Push system: material is pushed into downstream
workstations regardless of whether resources are

available
8 Wastes
Pull Versus Push
Toyota DNA
Pull system: material is pulled to a workstation just as
10 JIT Elements
it is needed
17
Just-in-Time (pull and flow)
stage A
buffer
inventory
JIT approach
Kanban
Goods are produced and handed off to downstream process

Creates excess inventory
The production of items at times required by a given schedule planned in advance
Push approach
stage B
buffer
inventory
stage A
Authorizes production from downstream operations

Pulls material through plant
stage C
May be a card, flag, verbal signal etc.

orders
stage B
deliveries
Japanese word for card (
Driven by demand (customer pull)

Coordinated production
Use kanban cards
orders
18
Used often with fixed-size containers

Add or remove containers to change production rate
stage C
deliveries
19
20
18/05/2011
Triangular Kanban Application
Triangular Kanban
Part #
Part Description
Date Triggered
Location
Lot Size
Trigger (Reorder) Point
Tool #
Machine #
21
Kanban System
Inventory
Traditional: inventory exists in case problems arise
JIT objective: Eliminate inventory
JIT requires
The function of Kanban

(is similar to)
Small lot sizes
The function of Inventory Reorder Point (ROP)
Single card
Move only containers
with C (Conveyance)kanban)
e.g.: Kawasaki
22
Low setup time
Dual card
Containers for fixed number of parts
Move only container
JIT inventory: Minimum inventory to keep system
with C- kanban
Produce only when
authorized by P
(Production)- kanban
e.g.: Toyota
running
23
24
18/05/2011
Less Inventory Exposes Problems
Small Vs Large Lots

JIT produces same amount in
same time if setup times are
lowered
JIT Small Lots

A
Time
Small lots also increase flexibility to meet
customer demands
Large-Lot Approach
A
Time
25
26
Toyotas DNA - The four rules
Agenda
Rules 1: All work shall be highly specified as to content ,

sequence, timing, and outcomes
Rules 2: Every customer-supplier connection must be direct, and
there must be an unambiguous yes or no way to send request and
receive response
Rule 3: the pathway for every product and service must be simple
and direct
Rule 4: Any improvement must be made in accordance with the
scientific method, under the guidance of a teacher, at the lowest
possible level in the organization.
MUDA,
8 Wastes
Pull Versus Push
Toyota DNA
10 JIT Elements
All the rules require that activities, connections, and flow

paths have built-in tests to signal problems automatically
It is the continual response to problems that makes this
seemingly rigid system so flexible and adaptable to changing
circumstances
27
28
Source : Spear and Bowen (1999), HBR
18/05/2011
Toyotas DNA
Rule
Agenda
Implied Hypotheses
Problem Signals
Responses
Specifications document
all work processes and
include content,
sequence, timing and
outcome.
The person or machine can

The work procedure
perform the work as specified
varies from specification
If the work is done as specified, Defective Products
the product is defect-free.
Improve training
How Work
Connects
Connections with clear

YES/NO signals directly
link every customer and
supplier.
Customer requests have

a known, specific volume and
mix.
The supplier can respond to
requests.
Determine true mix and demand.

Determine true supplier capability.
Retrain/improve/modify.
The Physical
Arrangement
Every product and

service travels a single,
simple and direct flow
path.
Every supplier in the flow path is A person or machine is

required and suppliers not on
not needed.
the flow path are not required
Unspecified supplier
performs work.
Determine why supplier was

unnecessary; redesign flow.
Determine reason for unspecified
supplier; redesign flow.
A specific change causes

a specific, predictable
improvement in productivity,
quality or other parameter.
Determine why the actual result

differed from the prediction.
How People
Work
Workers at the lowest

feasible level, guided by
How To Improve a teacher (Sensei),
improve their own work
processes.
Improve Process Capability

Modify the work specification
MUDA,
8 Wastes
Pull Versus Push
Responses do not keep

pace with requests.
Supplier is idle waiting
for requests.
Actual result varies from

expected result.
Toyota DNA
10 JIT Elements
Redesign the change.
Source: http://www.strategosinc.com/toyota_corporate_culture.htm29
10 JIT Elements
The JIT Island
Small lot size
Setup time
reduction
JIT facility
layout
Multi-skill
employee
1. Setup time reduction
Setup time reduction is also called quick c handover, its

function is to reduce the time involved in changing from
producing one product to other products.
2. Small lot size
Reduce lot size enables JIT systems to operate effectively so

that it benefits from less WIP inventories, less space required,
and increased flexibility.
3. Quality control
Infrastructure element of JIT

Have another names, such as Total quality control quality
circle, quality management programs and Total quality
management,
4. JIT purchasing
It is a supplier participation and partnership program. This

program would involve suppliers in long-term mutually
rewarding cost-reduction efforts.
Usually it requires frequent or JIT delivery and quality
certification, sole sourcing and developing a long term
relationship based on close work with supplier
5S campaign
JIT purchasing
Quality
control
30
Heijunka
Kanban
Total productive
maintenance
Ref: Ahmad et al. (2004), Shah and Ward (2007) 31
32
18/05/2011
5. JIT facility layout
In JIT system, equipment layout, such as U-shape layout is

notably different from Ford system.
This kind of manufacturing cell and other smaller equipment
designed for flexible floor layout, can eliminate operators
motion waste and have flexibility in responding to demand
variations.
6. Total productive
maintenance
This element attempts to establish and routine preventive

maintenance and replacement programs to reduce waste of
machine breakdown and failure.
7. Kanban and visual

management
In JIT system, the original meaning of Kanban is a signaling

device (usually is a card) to regulate material flows
In practice, the definition of Kanban has been extended; it is
used to denote all kinds of visual management tools.
8. Level scheduling
(Heijunka)
Requires materials to be pulled into final assembly in a

pattern uniform enough to allow the various elements of
production to respond to pull signals.
Attempts to stabilize and smooth the production workload,
reduce the waste of WIP and obtain high flexibility to
respond to diverse demand.
10 JIT elements
33
10 JIT Elements
9. Five S campaign
Sometime it is called housekeeping.

usually viewed as an important prerequisite for implementing
JIT.
10. Multi-skill employee flexibility of workers skill cross-functional workforce,

cross-functional training
The basic idea is to train employees on several different
machines and in several functions, and ultimately reduce
waste of human resource.
34
Reference
Book
Liker, J; Meier, D. (2005). The Toyota Way Fieldbook: A Practical Guide
for Implementing Toyota's 4Ps. McGraw-Hill.
Satoshi Hino(1996), Inside the mind of Toyota : management principles
for enduring growth. Productivity Press.
Journal
Spear, S. and Bowen, H.K. (1999), Decoding the DNA of the Toyota
Production System, Harvard Business Review, September-October
Shah, R. and Ward, P.T. (2007), Defining and developing measures of
lean production, Journal of Operations Management, Vol 25, pp 785-805
Ahmad, A., Mehra, S. and Pletcher, M. (2004), The Perceived impact of
JIT implementation on firms financial or growth performance, Journal of
Manufacturing Technology, 15(2), pp 118-130
Website
http://www.strategosinc.com/toyota_corporate_culture.htm
35
2011/5/18
Purpose Statement
Last session
Lean philopshy and TPS
Session 4
Tabletop Game
Overview
There are 4 evolutionary experiments
Craft Production
Division of Labour
Improved Lot Size, Layout and Workers
Balancing the process
They are related to the cellular layout principles of lot
size, production smoothing, one piece flow etc
This session
A hands-on game to learn the seed of TPS
Setup: Worksheets
Each sheet has 3 problems
Each problem has 8 operations
Each step uses results from the
previous stages
To start, pick an integer between
1 and 19 to feed into Operation 1
Example
Seed = 9
Op 1: (Seed) + 13 22
Op 2: (1) x 2 . 44
Op 3: (2) / 11 . ???
1.
2.
3.
4.
5.
6.
7.
8.
1.
2.
3.
4.
5.
6.
7.
8.
..
..
..
..
..
..
..
..
1.
2.
3.
4.
5.
6.
7.
8.
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
2011/5/18
Setup: The Players

8 operators
Observer 1:
Average task
time
Observer 2:
Average lead
time
All
All
3. Reduction of lot size,

improved layout and selection
of suitable workers
1
Experiment
All
4. Balancing the process

A
(1,2)
(3)
(4)
(5)
(6,7)
(8)
Record Form
All
The transporter moves all the

worksheets
1 transporter
All
2 observers
2. Simple specialisation
All
All
Observe 1: The task time- the time

from one operator to the next
Observe 2: The lead time- the time
from start to end
Set-up: The Layout

1. Craft Production
All
The operators complete the task.

Workers are not allowed to
move worksheet- That is
transporters role
Experiment 1: Craft Production

2
Operators
Complete all 8 stages FOR All 3 problems
Operator to time from start to finish
No transporters
Seed =1
2011/5/18
Experiment 1: Discussion
Both the task time and the lead-time are the same.
as the calculators) have very low rates of utilisation.

Furthermore, all the workers must be skilled at all the
jobs, mental, pencil and calculator calculations
There is a set-up time between different work
elements
Variation in times and errors in work is high
Experiment 2: Division of Labour

Work Sequence
Operator 1 gets all 8 sheets. Each sheet gets a different seed number
Operator 1 completes ONLY THE FIRST STEP for all three problems
When the a worksheet is completed the transporter takes it to Operator 2
who completes ONLY THE SECOND STEP for all three problems and so on..
4
Notes
Only the transporter can move worksheets around as per the layout above
If you have worksheets, do them- DONT STOP! (especially Operator 1!)
Under this scheme, major pieces of equipment (such
Now dividing the task up- operators arranged as follows

2
What is the average time?
Experiment 2: Division of Labour
Operators: only do the step allocated, but for all 3 problems

Observer 1: Follow a worksheet from start to finish, timing each
operator from when they start till when they finish
Observer 2: Time worksheet to when operator 1 starts till when
operator 8 finishes
Transporter: Move worksheets between operators- Note the
layout! WARNING: workers cannot move/pass
worksheets!
What is the average task time and the average lead-time with
simple specialisation?
We should see that simple specialisation reduces the task time
because the workers can get adept at the simpler tasks and there
are reduced set-up time.
This means more product can be produced in a fixed period of
time
BUT, lead-time soars because flow is interrupted due to
imbalances in the process: Stock builds up before slow
operations and after fast ones.
SO specialisation increases the capacity of a process at the
expense of the lead-time
2011/5/18
Also lead-time is increased due to the lot size of 3
Pros: Increased equipment operating rates

Cons: need for a transporter
Cons: increase production lead-time
What is the average task time and the average lead-time with
improved layout and selection of suitable workers?
The better selection of personnel should reduce the task time
(about 10%)
Also the improved layout should have reduced the lead-time
Transporter errors should be reduced
Transporter workload should be been reduced
Because of this workers have less idling
The lot-size reduction should have also reduced the lead-time
But the lead-time is still greater than in Experiment 1 because of
the imbalances in the process.
Pros: Improved ability to do work
Improvement 1: Improved layout- create a linear flow

remember: only the Transporter can move worksheets!!
4
problems per worksheet

And the transporter is now required. If the
transporter has too much work to do, then the benefits
of specialisation can be lost. Also transporter can also
make errors
Summary of effect of Simple Specialisation
Experiment 3: Improved Lot Size,

Layout and Workers
Improvement 2: Allocate Operators based on peoples strength,

that is, those that are best at mental calculations, do those, etc.
Improvement 3: Reduce lot size- Instead of having 3 problems
per worksheet (ie Batch = 3), cut them into 3 individual
problems and now move them (ie one piece flow)
Format same as previous: 2 observers; work sheet flow only by
transporter; Each problem gets a different seed.
Experiment 4. Balancing the

Process
You would have found that some operations are more difficult
then others- now we will balance them out
Operators
Step 1 and 2 are done by A
Step 3 is shared between B and C
Step 4 is done by D
Step 5 is shared between E and F
Step 6 and 7 are done by G
Step 8 is done by H
Observers- same
Eliminate the transporter
(1,2)
(3)
(4)
(5)
(6,7)
(8)
2011/5/18
What Have We Learnt?
What is the average task time and the average lead-
Simple division of labour, if done thoughtlessly can
time with improved layout and selection of suitable

workers?
There is no real change in the task time, except for a
slight learning curve effect, but the lead-time should
be drastically reduced
Lead-time should be the quickest yet!
Improved balance reduces queuing and waiting in the
process
This experiment show that we should both assign
people the the right tasks and balance the process
cause a bad layout and greatly increase the

transportation overhead
Balancing the process has the greatest effect on leadtime
Reducing the Lot-size has a large effect on lead-time
Re-arranging the process in the order of operations has
some effect on lead-time
How Does This Fit In?

JIT?
Kaizen?
Muda?
TOC?
Heijunka?
VSM?
Etc.
18/05/2011
Purpose Statement
Previous session:
We discussed the history of TPS, elements of TPS,.

This session:
Where to start with lean initiative after we know there

are wastes in our operation? Thus, we can simplify
and improve our firms operation?
Think It In Lean
Agenda
5S visual management a first tool of lean transformation !
5S
Visual management
If you dont know where to start lean, where would it be?
Name Card exercise
Go 5S!
To build teamwork and produce immediate result (you can
view it visually!!)
5S can be more than a starting point, in fact, it is the
critical part of overall initiative.

3
18/05/2011
Foundation For Improvement
5S For Improvement
To ensure a clean, orderly, safe and productive workplace.
The physical work environment is
Shitsuke
critical as the key driver for high

quality, low cost and rapid delivery.
Will product improvements see the
light of day in filthy plants?
Can we expect people in dismal
environments to work at their
maximum potential?
Can uncluttered minds with fresh
ideas function in cluttered
workplaces?
4S
Standardize
1S
Sort
Seiri
Seiketsu
5S
Sustain
2S
Set
Seiton
As managers, we demand the best from the people who work

with us. But in order to get the best performance, we must
provide the best working environment.
3S
Shine
Seisou
5S is a Foundation for Improvement
What Is 5S?
5S Elements
5S is a methodical approach to improve workplace

efficiency through organisation.
The aim is to reduce clutter, expose waste so that
you can eliminate it and prevent it from recurring
in the future
Improve workplace orderliness a place for
everything and everything in its place
5S relates to the Organisation of the Workplace
(Workplace Organisation), and is foundational to
Lean Manufacturing.
Sort (Get rid of everything you dont need)

Set in Order (Properly locate necessary stuff, set
inventory limits)
Shine (Clean everything inside and out)
Standardize (Create the rules for maintaining the
first 3 Ss)
Sustain (Ensure adherence)
5S in the US: Sort, Straighten, Sweep, Standardize, Self Disciple

5S + 1S (Safety) = 6S
5S + 2S (Safety and Security) = 7 S (Agilent Technology that was
part of Hewlett Packard)
7
18/05/2011
Why 5S?
5S In Visual Management
Visual Management are simple signals that provide an
immediate understanding of a situation or condition.

They are efficient, self regulating, and worker managed.
Examples include:
Pictures, diagrams
Color coded dies, tools, pallets
Lines on the floor to delineate storage areas, walk ways,
work areas, etc.

Improved lighting
To eliminate the wastes that result from uncontrolled processes.
To gain control on equipment, material & inventory placement and position.
9
The Good After 5S
10
Visual Management
link to Visual
management
Visual Management
Andon Lamp
Red - line stoppage
Yellow - call for help
Green - normal operation
Color-coded areas
Clear aisles
Increased visibility of non-conformances
Working procedures are mentioned clearly on

the board with pictures and instructions
11
12
18/05/2011
View Of Shopfloor
The Great Wall
5S Example
Five Foot Standard
Sight is blocked !
Before 5S
Link to McDonald example video
After 5S - Cleaned,
organized and drawers
labeled (less time and
frustration hunting)
13
Sort (Seiri)
SORT
14
Red Tag Process
Identify and remove clutter

Classify everything by frequency of usage
One-time activity to remove

or disposition clutter
Throw out what is not used (red tag exercise)

Sorting Criteria
Frequency of use
Action
Never (unneeded)
Once a year
Less than once a month
Once a week
Once a day or more
Throw away
Place in storage
Store in factory or office
Store in general work area
Carry or keep at workstation
1.
2.
3.
4.
Questions to ask:
What is this item used for?
How often it is needed?
Is it needed in this location? Anywhere else?
How many are needed?
Who uses it?
Are there any other reasons why this item should be kept here?
Identify clutter, unused

equipment, etc
Fill out and attach red tag
Note in red tag log
Red tags must be dispositioned
within 30 days
Source: www.superfactory.com
Red tag attack: A red tag attack is the strategy of a team going through
the plant and putting red tags on everything that has not been used within
the last 30 days. The items that people feel are necessary to "hold on to"
must be justified to their superior, or the item is taken out of the plant!
15
16
18/05/2011
Set In Order (Seiton)
5S Examples - Sort, Set In Order

SET
Locate what is used in the right place

Clearly indicate where things belong i.e. lines, labels,
signs, colours.
A place for everything (using boards, tools and dies on
trolleys or at the right height, and color matching to
link associated tools)
Everything in its place
Source: www.tocforme.com/ppt/5sbasictrainingppt.ppt
See the difference?
Sort - All unneeded tools, parts and supplies are removed from the
area
Set in Order - A place for everything and everything is in its place
17
Shine (Seisou)
18
5S Example - Shine
Shine
Eliminating all sort of contamination i.e. dirt, dust,
fluids, and other debris.

Cleaning is checking!
Check for abnormality and its root causes
Physical tidy up and visual sweeping (look out for
anything out of place)

To improve safety, product quality, and working
environment
The area is cleaned as the work is performed (best) and\or there
is a routine to keep the work area clean.
Source: www.tocforme.com/ppt/5sbasictrainingppt.ppt
19
20
18/05/2011
Standardize (Seiketsu)
Standardize
Sustain
Develop standard for the first 3 Ss.

Share information among teams so that there is no
confusion or errors regarding
Locations (tools, aisles)
Sustain (Shitsuke)
Keep the steam going! Daily 5-mins 5S activities
Everyone participates in 5S on an ongoing basis
(training)
Delivery
Encourage and recognise achievements
Destinations
Carry out audits regularly
Quantities
Schedules (cleaning)
Downtimes (maintenance)
Procedures and standards
Make the standards known (visual)

21
22
Exercise
Cabinets
With an Organized Workplace
Cabinets are part of the business environment, in the
Defects are reduced
workshops or office. These pieces of furniture have to be

part of the 5S discipline, and not be considered as
convenient hiding places for leftovers and scrap!
From visual management and 5S point of view, cabinets
have one weak point: solid doors. These doors hide the
cabinet content, its state of orderliness and restrain quick
access to documents, tools, or other items stored. Closed
doors do not allow to see from remote place nor
immediately, if a needed item, tool or document is at its. It
is then necessary to move to the cabinet, open it and...
discover.
Cleanup time is minimized

Inventory is reduced
Maintenance is improved
Safety is improved
Workers are more efficient
How would you tackle this?

23
24
18/05/2011
Exercise (answer)
Exercise (answer)
25
26
Business Card Exercise (Answer)

Business Card Exercise
While we attend conference/workshop/, we are
routinely exchanging business card whenever

the people first meet. Unfortunately, few
people organize their collection of business
cards rationally.
In fact, about half of the business cards that
people received are useless from the beginning.

They are exchanged merely as a formality with
neither party intending to use the card at a
later date.
In this exercise, we assume that there are loads
of unorganized business cards, how can we

apply 5S to manage these business cards,
transform them from MUDA to an useful
resource to our company? Form a groupof 6.
27
18/05/2011
Reference
Book
Lean Manufacturing Advisor (2006) Visual Tools:
collected practices and cases, Productivity Press, New
York
Hiroyuki Hirano (1995) 5 Pillars of the Visual
Workplace, Productivity Press, New York
29
18/05/2011
Purpose Statement
Previous session:
Overview the lean philosophy, 8 waste, JIT
This session:
For implementing lean, it is necessary to figure out the
waste before eliminating it
For instance:
Too much defects (waste!)?
Too much rework (waste!)?
Introduce techniques and tools for analyze the root cause
of waste
Think It In Lean
Agenda
Run Chart
We want to know what exactly the problem is
Histograms
We need to identify the expensive problem and solve
it
Pareto Diagram
5 Why
7 Quality Control Tools
Fishbone Diagram
Collection sheets
Run Chart
We need to use that time wisely. We only want to
solve them in oncesolving the same problem twice

is a MUDA!!!
Histograms
Pareto Diagram
Fishbone Diagram
Control charts
This covers 4 of the 7 Quality Control Tools, the rest of them are
data collection sheets, control charts, and scatter diagram
Scatter diagram
4
18/05/2011
Run Chart
Trend Example
Purpose:
As a process improvement tool, run charts allow for
the observation of a process characteristics while
preserving the time order of data
A trends can be
Finished product
indicated in the figure
600
500
Centerline = 467.5
Piece
400
There is a special
300
200
Run-charts show changes in a process over time by
100
giving an indication of:
The centre and the spread of process
Recurring cycles, trend, or shift
9 10 11 12 13 14 15 16 17 18
Remarks: Centerline is the median of the data
The effect of change over time
cause when a
sequence of 7 or more
points are steadily
increasing and
decreasing of no
change direction
Run Example
Quality of finished product
30
Cycle Example
A run having two or more
consecutive data point on
one side of the centreline
cause variation:
Repeating patterns
30
25
25
20
Centerline = 19
15
10
5
A run indicates a special

cause is one that show 9
or more consecutive data
points on one side of the
centreline
unit
No of defect
There is signal of special
35
20
A cycle must recur at
15
Centerline = 10.5
10
5
0
0
1 3 5 7 9 11 13 15 17 19 21 23 25
Then should be an
unusual event that needs
further investigation
1 3 5 7 9 11 13 15 17 19 21 23
least 8 times before it

can be interpreted as a
signal of a special cause
of variation
18/05/2011
Agenda
Histogram
Run Chart
Can describe a data set with

respect to shape, center and
spread
Help identifying
sorting, rework, or multiple
sources of variation in a process
Histogram alone cannot indicate
whether the process that generate
the data is stable, since there is no
time element
When the original data is grouped
in classes, some information is
loss
Histograms
Pareto Diagram
5 Why
Fishbone diagrams
10
Shape and Spread in Histogram
Agenda
Shape
Having an understanding of the shape of the data produced by
the process
Run Chart
Histograms
helps in the development of theories to explain what is happening,
Pareto Diagram
diagnosing problems
5 Why
identifying sources of variation
Fishbone Diagram
Spread
Measures of spread provide an indication of the magnitude of
variability in a dataset
The control limit can be constructed by the measure of spread
11
12
18/05/2011
Pareto Diagram
Pareto Diagram (2)
Pareto diagram indicates priorities for
Benefits
problem investigation or the main

sources of variation
The basis for prioritization can take
various forms, such as cost or
frequency of occurrence
Paretos Law states that 20% of causes
give 80 percent of the effect (e.g. 20%
of customer generate 80% of
turnover, sure it is just a
guideline, not a rigid rule )
A Pareto diagram is a bar chart that
summarized the items by their
frequency and order them in
decreasing frequency. The height of
the diagram is the total frequency
It provides a graphical method for prioritising issue

It helps to separate the vital few from trivial many
It provides the meanings to view the issue from different perspectives
Can be used to compare the rank of problems
Usually will employ before Value Stream Mapping (VSM)
There are loads of production and operation in my firm, which one
should be mapped in VSM? Use Pareto diagram to rank and illustrate
it!!
13
Levels Of Analysis
LEVERL 3. BREAKDOWN BY
REASON
MechCo is a large machinery

manufacturer that provides machinery
parts to variety industries. The project
manager, Mr. X, is reported by the
repairing department that the number
of repairing request by clients has
leaped in these two months. Even in
some cases, the same item has been
returned to MechCo twice in a month .
Mr. X has plotted a run chart and find
there should be a special cause for
these return.
Whats make him to have this
implication?
Customer Defect Return

30
25
No. of case
LEVEL 2. BREAKDOWN MAIN

CONCERN
BY OTHER CATAGORIES, SUCH AS
AREAS, TYPES, ETC.
Case Example - Level 1

Drill-down to the actual problem
LEVEL 1. IDENTIFICATION OF MAIN

CONCERN BY
CHECKING THE OVERALL
PERFORMANCE
14
20
Centerline = 19
15
10
5
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
Week
_________________________
15
16
18/05/2011
Case Example - Level 2

Mr. X gets the product repairing
data in week 12-week 21, and he
has plotted a histogram. However,
the plotted histogram does not
give a clear information . He needs
a useful diagram that can really
represent the situation more
obviously. So, he can bring it to
quality team for further
discussion.
Level 2- Plot the Pareto Diagram
Week
Total
Product A Product B Product C Product D Product E
12
13
27
20
2
2
9
5
6
5
9
5
1
3
14
22
10
15
16
25
27
1
1
10
5
4
5
10
15
0
1
17
18
28
28
2
3
5
7
1
5
17
11
3
2
19
25
10
20
27
10
11
21
21
250
200
80 %
150
50%
100
Can you help him to re-plot it to a

Pareto diagram?
(Remarks: You may plot it to
another histogram, and follow
with Pareto diagram)
50
17
Case Example Level 3
0%
18
Agenda
Mr. X focuses on the repair cases of Product D

and B. He groups the defective information of
this 2 product into a table, and plots another
Pareto diagram.
80
70
60
50
40
30
20
10
0
100%
175
Run Chart
Histograms
Pareto Diagram
100
80%
75
5 Why
50
Fishbone Diagram
25
0
Motor breakdown
Cover melt
Overheat
Cover crack
Physical damage
ESD
Others
No. of case
73
26
49
15
5
5
2
He finds that most of the problems are related to motor.

i.e. the motor is breakdown because of overheat, even the
cover melting is another consequence of it. Thus, he
brings these figures and shows to the quality team to
discuss the problems.
To be continue
19
20
18/05/2011
Root Cause Analysis Tools
5 Whys?
5 whys is a Root Cause Analysis Tool.
Problem
Root
Cause
NOT a problem solving technique.
Corrective
Actions
The output of a 5 Whys analysis is :

one or several root causes that ultimately identify the reason why a
problem was originated.

Identify the problem
from data
Root Cause analysis Tools:

5 Whys
Ishikawa Charts (Fish Bone, Cause & Effect Diagram.)
Failing to address the deeply rooted seed of the problem means it will likely
recur.
The problem-solver simply asks a why question approximately five
times in series.
Experience has shown that stopping at 2 or 3 whys usually means that
the inquiry has not gone deep enough.
21
5Whys: An Effective Problem-solving

Technique Example 1
22
Five Whys Preparation

It is not always necessary to reach 5 before the root cause of a problem is fully
Why is our client, unhappy?
explained
Because we did not deliver our services when we said we would.
It may take more than 5 whys to get to the bottom of it. It will depend on the
Why were we unable to meet the agreed-upon timeline or schedule for delivery?
complexity of the process or the problem itself.
The job took much longer than we thought it would.
In any case, 5 has been determined, as a rule of thumb, as the number at which
Why did it take so much longer?
most root causes are clearly identified.
Because we underestimated the complexity of the job.
Do not worry about not meeting or exceeding this number though. Just follow
Why did we underestimate the complexity of the job?
your thought process and let it decide how many Whys you require to get to
the point where the root cause is evident.
Because we made a quick estimate of the time needed to complete it, and
did not list the individual stages needed to complete the project.
Why didn't we do this?
Because we were running behind on other projects. We clearly need to

review our time estimation and specification procedures.
23
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18/05/2011
Five Whys The First Why
Five Whys The Second Why
Clear statement of the reason for the defect or failure to occur, understood even
by people that are not familiar with the operation where the problem occurred.
A more concise explanation to support the first statement.

Get into the technical area, the explanation can branch out to several different
Often this first Why must be a short, concise sentence that plainly explains the
reason.
root causes here.
Dont try to justify it, there will be time to do that later on in the following whys
if it is pertinent to the thought process.
It is fine to follow each of them continuing with their own set of remaining 3
whys and so forth.
It is fine to write the questions down even if it seems too obvious for you (It may
not seem that obvious to other staff that will read the document).
25
Five Whys The Third Why
26
Five Whys The Fourth Why
Do not jump to conclusions yet, follow the regular thought process even though
Clear your mind from preconceived explanations and start the fourth why with a
fair approach.
This 3rd why is critical for a successful transition between the obvious and the not
You may have two or more different avenues to explore now, explore them all.
Even if one or several of them turn out not to be the root cause of the
problem, they may lead to continuous improvements.
some underlying root causes may start surfacing already.

so obvious.
This is a good time to include a Cause and Effect analysis and look at the 5 Ms.
Method
Material
huMan
Machines
environMent
The 1 and 2 whys have prepared you to focus on the area where the problem
could have been originated; the 3, 4, 5 whys will take you to a deeper
comprehension of the problem.
Visualize the process where the product went through (process mapping) and
narrow down the most likely sources for the problem to occur.
You do not need to answer all the whys at the same time, it is an investigation
activity and it will sometimes require you to go to the process and see things you
could have missed at first.
Remarks: You may be missing the obvious by rushing into logical explanations.
27
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18/05/2011
Five Whys Conclusion
Five Whys The Fifth Why
A good way to identify if the 5 Whys was done properly is to try to
When you finally get to the fifth why, it is likely that you have found a systemic
organize the collected data in one sentence and define it in an

understandable manner.
If this cannot be done or the sentence is fragmented or meaningless
chances are that there is a gap between one or several of the whys. You
then must revisit the 5 Why and identify those gaps to fill them in.
cause.
If you have reached the fifth why and you are still dealing with process related
cause(s), you may still need one or two more whys to deep dive into the systemic
cause.
If there is coherence in the way that the sentence is assembled, it shows
consistency on the thought process.

Something like:
Problem Description occurred due to Fifth Why. This was caused by

Fourth why mainly because Third Why was allowed by Second
why, and this led to First Why.
29
30
5Whys: case example
Five Whys Conclusion
While Mr. X is discussing with the quality team, they

have started a 5 Whys root cause analysis process.
Do not forget that the sought outcome of a 5 Why exercise is a root cause of a the
defined problem, not the resolution of the problem itself
5 Whys is not a standalone Problem Solving technique but more of a tool to aid in
1.
Why did the motor burn out?
Answer: The shaft seized.
this process.
2.
Why did the shaft seize?
Answer: There was no lubrication.
Pros
easy to understand
can be done quickly
get us to something that needs to be fixed
3.
Why was there no lubrication?
Answer: The line filter was clogged.
Cons
not good for complex problems
can be done too quickly not enough data collection
wrong answer will take you down the wrong path
4.
Why was the line filter clogged?
5.
Why was it the wrong size?
Answer: It was the wrong size.

Answer: We receive the wrong size.
31
Root Cause?
Root Cause?
32
18/05/2011
Cause and Effect Diagram
Agenda
Run Chart
Also known as Ishikawa or Fish Bone diagram
Histograms
Used to identify and analyze all possible causes of a
situation or problem
Pareto Diagram
5 Why
Fishbone Diagram
environMent
Methods
huMan
Output
Material
33
Goal
Identifies possible root causes (inputs) associated with a
specific effect (output)
Brainstormed ideas become the small bones of the fish

Methods
34
Fishbone How To Do It Practically
Filling Out the Fish Bone

environMent
Machines
huMan
Steps:
1.Select a specific effect (tightly defined, small in scope)
2.Brainstorm the possible causes of the problem onto
individual post-it notes
Output
Variable
that affects
output
Material
3.Establish major cause categories, most frequently used are:

HuMan , Machine, Materials, Method/Process, EnvironMent
4.Construct the fishbone. This will become a living map of the
process towards resolving the effect:
Machines
35
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18/05/2011
Fishbone How To Do It Practically
Fishbone: Case Example 2
5.Transfer Problem Post it notes to the diagram, placing

each cause under the appropriate cause category
6. List causes in order of priority
Human
Machine
Purchaser ordered
the wrong parts
Materials
No facility to assist to
discover the wrong
size before hand
Opportunistic
behaviour from
supplier
HUMAN
MACHINE
MATERIAL
Receive and
use the wrong
size line filter
Insufficient/wrong
inspection in finished
products
EFFECT
Poor incoming
inspection
METHOD
ENVIRONMENT
Eliminate causes in order of priority
The outlook of the

wrong part is so
similar to the correct
one
Improper purchasing
process
Method
Do you think this is a good

fishbone diagram? Why?
The product ion
leadtime is too short
Environment
37
Fishbone: Case Example Suggested

Answer
38
Cause and Effect Diagram

Pros
looks at lots of potential causes
more systematic than 5 Whys
better for dealing with more complex problems
Cons
39
takes some time; not a quick fix
40
10
18/05/2011
Link the Fishbone to 5 Whys ?

7. Establish which are the most likely causes. Circle these and
develop them further by asking 5 Whys to reach root cause

Data
Data
Data
Data
Data
1stWhy
2ndWhy
3rdWhy
4thWhy
5thWhy
HUMAN
Cause
Cause
Cause
Root Cause
Cause
8. Substantiate each Why step with real data to confirm. This

may take some time depending on data availability but will
prove to be entirely worthwhile in resolving any doubt within
or external to the team and in justifying possible expenditure
References
Book
PMI (2000) The Process Manager: Transforming Goals
into Results, Process Management International
Nicholas, J.M. (1998) Competitive manufacturing
management, McGraw-Hill International
Website
http://www.balancedscorecard.org/Portals/0/PDF/runc
hart.pdf
9. Agree corrective actions and begin trials.

41
42
11
2011/5/18
JIT LEGO Game

Designed to compare the two different modes of
production
Push
Pull (JIT)
We will be operating a production line making
seaplanes out of LEGO blocks

Firstly, we will run the line in the Push mode of
production, and then we will run the line in the

Pull mode of production
Just-In-Time (pull and flow)

Push approach
stage A
Overview
Goods are produced and handed off to downstream process

Creates excess inventory
buffer
inventory
stage B
buffer
inventory
stage C
Stage 1
Stage 2
Undercarriage
Fuselage
Stage 3
Stage 4
Wings &
Engines
Tail
Inspection
Driven by demand (customer pull)
Pull approachCoordinated production

Use kanban cards
orders
stage A
orders
stage B
deliveries
stage C
4 operators
deliveries
3
2 dismantlers
1 inspector
4
2011/5/18
The Set-up
The Set-up
Operator
Inspector
Dismantler
Responsible for assembling a particular part of

the product
Inspect every product for defects and record

the amount of products that are produced
Record timing that is indicated on the
Record Sheet
Dismantle the finished products and replenish

the raw material supplies
Production duration = 12 minutes

Lead time block inserted after 5 minutes
Tea break after 7 minutes
Count inventory
At the end of the production the inspector will count
up the number of products made (including defects,

etc.)
Lead Time Block
Experiment 1: The Set-up
During the game play, Kim / instructor will give a
lead time block (can be yellow or white)to

workstation 1, plug it into your working product
Inspector please start your timer
Push Mode
Operate with a batch system with a lot-size
of 3
As soon as the batch of 3 has been completed
it can be pushed to the next stage
No split batches can be moved
Start
Timer
Stop
Timer
Lecturer/instructor
Inspector
Inspector please Stop your timer once you get

this special product. The time you recorded
down is the production lead time
2011/5/18
Record Form
Time product with lead-time block is

delivered
What is the time product with lead-time block is
delivered?
Amount of WIP in the pipeline during

Tea Break
Good product
What is the amount of WIP in pipeline at Tea Break?
Defect product
What is the stress level of the operators?
Where is the position of the bottleneck?
Total production quantity
10
Record Form
Experiment 2: The Set-up

Pull Mode
Operate with a Kanban system with a lotsize of 3
Empty squares will be used as the Kanban
card to trigger assembly
Operators will only work when they receive a
Kanban, other they will remain idle
Push
Pull
Time product with lead-time

block is delivered
Amount of WIP in the pipeline
during Tea Break
Good product
Defect product
Total production quantity
11
12
2011/5/18
What Have We Learnt?
Benefits of a Pull System

Reduced
inventory
costs
What is the time product with lead-time block is
delivered?
What is the amount of WIP in pipeline at Tea Break?
Greater
customer
satisfaction
Where is the position of the bottleneck?

Higher quality
products
Less warehouse
space needed
More rapid
response to
customer orders
13
14
Dice game
WS1
WS2
WS3
WS4
4 persons form a production line

Each player acts as the operator of the work station (WS)
LEGO block is the stock in the whole production line
Each person starts with 4 stocks (except the WS1, WS1 has
infinite raw materials)

Each person has a dice
2011/5/18
Steps To Run Dice Game
Discussion
In each round
1.
Each person rolls the dice at the same time at the start of each round.
2. WS1 operator takes the number of LEGO blocks equal to what he has
rolled to WS2. If he does not have enough LEGO blocks, the he passes
all he has.
3. Operator needs to record the current stock in his WS in every round
4. Step 2 and 3 is repeated for everyone in turn
5. At the end of the round, WS4 operator passes the number of LEGO
blocks to the finishing line
6. Step 1 to 5 repeat 20 rounds
1.
The number of LEGO blocks in the queue will be the

measure of WIP and the total number of LEGO blocks that
passed finished line is a measure of the throughput
2. Plot a graph to show the WIP and throughput in each round
So, what does the graph tell?
2011/5/18
Purpose statement
Session 9
SMED and Poke Yoka
Previous session
Disscussed wastes in operations, and various tools to
analyze them
This session
Introduces two tools for improve these identified
opportunities:

Agenda
What is SMED?
Four Stages of SMED
SMED Game
What is Poke Yoka?
Mistakes VS Errors VS Defects
Poke Yoka Devices
Improving changeover time with SMED

Defect reduction with Poke Yoka
What is SMED?
SMED Single Minute Exchange of Dies
Changeover to a Single Digit Minute, i.e. less then 10 minutes
Developed by Toyota and expanded by Shigeo Shingo
Why SMED?
Idle time is non-value adding process (Muda/Waste)
Increase machine utilization
Improve Cost and Delivery
2011/5/18
What is a Changeover?
Includes
Changeover = the time taken
from the last conforming piece

until the first conforming piece
of the next run
Removing the old tool/dies

Attaching new tool/dies
Adjustment time
Production Time
Set-Up Time
Quick changeover...IKEA style
Production Time
http://www.youtube.com/watch?v=_GZUM87rNrg
Acceptable
Production
Change-Over Tooling
Scrap
Acceptable
Production
(New Product)
Start Process
Output
Acceptable
Production
Wasted Time
Acceptable
Production
Time
Why Quick Changeovers?

Flexibility: more often changeovers
Improve service levels
Smaller batch sizes means less likelihood of large scale defect
problems in inventory
Lower inventory- Reduces the need for on-hand inventory
Better Quality: Reducing quality defects and yield losses due to
machine adjustments
Where is Time Spent?

10%
Centering and dimensioning new tooling
20%
Preparation of materials such as Jigs and Tools
20%
Removal of Tooling
50%
Trial processing and adjustment
Reduce lead time

Better On-Time Delivery
Increase machine capacities
2011/5/18
Changeover Activities
External Activities
The activities which currently take place when the machine is
switched off, but could be performed whilst it is still running

Collecting tools
Adjusting jigs and fittings
Finding shims etc
Internal Activities
work that must be done while the machine is shut down
Changing the blade on a band saw
Changing the head of a spray gun
Removing the tool from a press
2.
3.
4.

What is SMED?
Four Stages of SMED
SMED Game
What is Poke Yoka?
Poke Yoka Devices
SMED Principle- convert Internal activities to External activities
Four Stage Approach

1.
Agenda
Observe and record

Separating internal
and external setup
Converting internal
to external setup
Streamlining all
aspects of the setup
Stage 1: Observe
Observe: every activity of the changeover
Clipboard
Video
Stopwatch
Record: Time the steps
Identify Non-Value Added Activities
TIMWOOD
The camera never lies
2011/5/18
Stage 2: Separate
Stage 3: Convert
Allocate each activity into internal and external set up
Challenge whether some of the internal activities
should be external

INTERNAL
Stage 4: Reduce
Golden rules for SMED
Reduce Internal and External Set-up Time

Use other Devices
Quick clamping devices (toggle clamps)
Pneumatic tools
Eliminate-combine-reduce
ELIMINATE ?
EXTERNAL
Study the internal activities and look for opportunities where

operations could be:

Simplified

Use pre-set jigs and fixtures

Pre-heat molds or dies

Standardized fixtures, mounting plates, bolts
Question

What preparations need to be made in advance?

What tools and parts need to be on hand?

Where do tools and parts need to be placed?

Are tools and parts in good repair, cutters sharp?

Where should tools be placed after removal?

How will tools and parts be transported?
Point 1: 5S
Establish defined storage places for dies, jigs, tools etc
Create checklist and standardize terminology
Arrange items according to their frequency of use or the process
undergoing during SMED
Color code as required
Point 2: Move Arms Not Legs
Yes
Change layout or procedure as to minimize walking

No
COMBINE ?
No
REDUCE ?
Remove walking waste caused by a central control panel
Yes
Yes
2011/5/18

Point 3: Bolts As Enemies
Devise a lever-type fastener.
Devise a cam-type fastener.
Devise auto-clamp devise.
Point 4: Standardization Of Dies, Jigs, and Fixtures
Die height.
Die sizes.
Clamp height.
Clamp position.
Locators or stops for one touch setting.
Color coding to assure correct dies, jigs, and fixtures.

Agenda

What is SMED?
Four Stages of SMED
SMED Game
What is Poke Yoka?
Poke Yoka Devices

Point 5: Adjustment Is Waste
Set up guideposts or SOPs
Eliminate adjustment for setting the feed pitch.
Eliminate adjustment of material feed devices.
Eliminate adjustment for positioning.
Point 6: Can SMED Be Eliminated?

Can SMED be mechanized?
Integrate the press into the production line.
Use rotary press.
Mechanize the die replacement process (auto-feed and or auto-stop
devices.)

Tasks:
Changeover from the large tool to
the small tool, and

Change raw material from large disks
to small disks as quickly as possible
Current Job:
Large tool on machine
Pin filled with 5 large disks (raw matl)
Next Job:
Small tool on machine
Pin filled with 9 small disks (raw matl)
2011/5/18
Before SMED
Assembly Conditions
5mm 1mm
30mm
35mm
Perpendicular to 3
sides 1mm
30mm
Game Setup
1 Operator
Assembly Rules
Loosen & tighten nuts with spanners & allen keys only
Dont use hands as adjusting spanners
1 QA
(tool centered 1mm, 5mm
between tool and clamp)
Dont write on the material

Tools cant fall out when the changeover is completed
Only the operator is qualified to make the changeover
1 Time-keeper
2011/5/18
First Trial Checklist
First Trial Checklist
Material
Operating Procedure
Adjust & tighen clamp
Adjustment of 2
perpendicular sides/ edge
Small tool: 30mm on both
sides & 35mm from edge
Measurement 5mm while
disk cant fall out
Change the raw material (9
small disks)
Ruler
Set of Spanners
Set of Allen keys
New tool
New raw material
Results - Before SMED

Task
Time
Get and open toolbox

Find allen key from the pile of hand tools
Loosen tool
Remove Large tool
Get new tool
Find the right size spanner
Loosen and lift clamp
Put Small tool onto the machine
Find ruler
Adjust and tighten clamp by spanner
Adjust tool position
Tighten tool with allen key
Remove old raw material
Put new raw matl in place
QA intervenes
Before SMED - Discussion

What is the total changeover time?
What is the time spent on searching for hand tools?
What is the time spent on loosening and tightening
the tool?
What is the time spent on adjustment?
Variation in times and errors in work is high
TOTAL
2011/5/18
Second Trial Checklist

Material
Ruler
Spanner 19
Allen keys 5
New tool
New raw materal (9 small disks)
Shim & guide pins
Butterfly nut
Agenda

What is SMED?
Four Stages of SMED
SMED Game
What is Poke Yoka?
Poke Yoka Devices
Results - After SMED

Task
Time
Loosen tool using butterfly nuts

Remove Large Tool
Put shim & guide pins on machine
Put Small Tool onto the shim
Tighten tool with butterfly nuts
Take away raw matl, supply new raw materal
QA intervenes
Loosen tool using butterfly nuts
TOTAL
What is Error-Proofing?
Technique to minimise the possibility
For mistakes/defects to be made AND
Passed on to customers
Not on identifying and counting defects
Emphasis on the eliminating the cause
Can reduce the time/cost of inspection to near zero
2011/5/18
Poke Yoka and Shingo
Everyday Examples
Also known as Poke-yoke, Japanese for avoiding inadvertent errors

avoid (yokeru) mistakes (poka)
Technique formalized by Shigeo Shingo.

The use of process and/or design features
Build into
Product design
Tool design
Process design
Poke-yoke devices are mechanism that
Prevents a mistake from being made
Makes the mistake obvious

Auto-shut off Irons, Coffee Makers, Sinks in public places

Electrical outlets
Two handed start buttons
To err is Human
Agenda
Have you ever

Driven to work and not remembered it?
Forgot to stop at a store?

Workers do the same
Workers finish the shift and dont remember what
What is SMED?
Four Stages of SMED
SMED Game
What is Poke Yoka?
Poke Yoka Devices
they have done.

After building green widgets all morning, the workers
put green parts on the red widgets in the afternoon.
2011/5/18
Poke Yoka vs Statistics
Mistakes
omitted
operation
Mistakes are.
Nobodys fault

The execution of a prohibited action

The failure to correctly perform a required action

The misinterpretation of information essential to the correct
execution of an action

Due to variation in a process not people in the process

Traditionally viewed as

Natural, but blame the people who make them

Inevitable, and avoid the pain of understanding the process
Probability
Normal
Variation
Control Charts/Statistics/SPC is good at detecting shifts in the
process mean or variance.

Human errors tend to be rare, intermittent events. They are not
readily detected by control charts.
What Causes Defects?
Defects and Errors

Defects are results
Process Defects
Process Failure
Errors are the cause of results

Error prevention not defect detection
Humans make errors (Cause) and defects arise because errors are made
(Effect)
Errors will not turn into defects if action takes place at the error stage.
Operational or Procedure Failures
Process Error
Incorrect or Imprecise
Product Defects
Incomplete Product
Substandard Product
Prevention
Detection
10
2011/5/18
Agenda

What would you do to stop trucks

from hitting this bridge?
What is SMED?
Four Stages of SMED
SMED Game
What is Poke Yoka?
Poke Yoka Devices
Levels of Mistake Proofing
Some Common Poke Yoka Devices

Guide pins (capture or limit the movement of parts,
tooling during the assembly process)

Blinking lights and alarms (detects errors)
Limit/Proximity switches (show presence/absence of
components and their proper position)

Counters (count the number of passengers)
Checklists (graphical reminders of tasks, materials,
etc.)
11
2011/5/18
Where do you look for opportunities to

mistake proof?
Where do you look for opportunities to mistake proof?
Customer complaints/rejects
Material Review Board Data
Process yield data
Inability to maintain cycle time
Safety/EHS issues
Types of mistake proofing

devices
1) Prevent vs Detect
Devices used to either prevent mistakes
i.e., floppy disk
OR Detect error/defect at start up or during process

i.e., proxy sensor to detect punch
Audit findings

devices

devices
2) Physical vs Audio/Visual
Physically introduce safeguards that prevent mistakes
from occurring
3) Regulatory vs Setting
Regulatory: Devices that either control a process or give
warning about it
i.e., guide pins
Visual/Audible Warnings to notify that a mistake is
about to occur, or has occurred

i.e., Shuts down the process when it detects an abnormality
Setting: Ensures proper settings or counts in a process

i.e., SOPs
i.e., buzzer when car headlights are left on
12
2011/5/18
The Six Steps of Poke Yoka
Examples
Limit Switches on Jig
1.
2.
3.
4.
5.
6.
Understand the process

Identify possible opportunities for mistakes
Prioritise the risks associated with them
Tackle the highest risks
PDSA possible mistake proofing solutions
Implement mistake proofing solutions
A New Attitude Toward

Preventing Errors
Make wrong actions more difficult
Make it possible to reverse actions to undo
themor make it harder to do what cannot be

reversed.
Make it easier to discover the errors that occur.
Make incorrect actions correct.
Proximity Sensor Detects Broken Bit
Switches
broken bit
proximity sensor
warning lamp
Which processes should be mistake

proof?
Which processes should be mistake proof?
High error potential
Complex processes
Routine boring processes
High failure history
Critical process characteristic
13
2011/5/18
Ideal mistake proofing solution

The ideal solutions are:
inexpensive
simple and easy to implement
specific to the need
involve process operators
References and Reading

The Complete Lean Kit (Learning to See, Seeing The Whole, Creating
Level Pull, Creating Continuous Flow, Making Materials Flow, Lean

Lexicon), Lean Enterprise Academy (www.leanuk.org)
Bicheno, J. (2004) 'The New Lean Toolbox: Towards Fast, Flexible Flow
(3rd ed) Picsie Press, England.
14
2011/5/18
Purpose Statement
Previous session
SMED and Poke Yoka
This session
Builds on the JIT/kanban system with Heijunka, a
technique that smoothens production by controlling
the flow of kanbans, especially useful in high-mix lowvolume production. Subsequent improvement can be
measured by Overall Equipment Effectiveness
Agenda
What is Heijunka?
The Heijunka Process
What is Heijunka?
Heijunka () is a Japanese term for make flat
and level
High- Mix Low-Volume
Tool to Leveling (Smoothing) Production Schedules
OEE and the 6 Big Losses
It is a technique to combat mura ("unevenness")
Combining Lean and OEE
Instead of producing in large batches, produce smaller
evenly distributed batches over time (e.g., 7/day)

Level both mix and volume
I.e. At Toyota you will see Camrys and Avalons being
produced on the same production line at the same time
Balance the work load within the cell and the supply
base
2011/5/18
Why is it Important?
Key method to control kanbans and JIT
It is a simple way to visually manage the process of giving
customers exactly what they need when then need it
Benefits
Does not need to maintain large inventory buffers
Improved flexibility and lowered finished goods inventory
Production to better meet customer demands need for
SMED?
Avoids batching which results in minimum inventories,
capital costs, manpower, and lead time
Flow is improved
Smaller demand signals are transmitted up the value stream
bullwhip effect?
Heijunka Box
---The Lean Lexicon
Paced Withdrawal
A method used to intercept the batches of information (Kanbans),
organize them and regulate the distribution

Just as we do not want to batch materials, we do not want to batch
information
A heijunka box has a row of kanban slots for each product type, and
column of kanban slots for each time interval
---Learning to See
The practice of simultaneously releasing new instructions and
withdrawing completed products.

A material handler performs a fixed route through a facility at fixed
time intervals
---Learning to See
2011/5/18
Paced Withdrawal
Agenda
As the products are withdrawn from the supermarket, the signal is
given to load the Heijunka box

Material handler takes the production instruction from the Heijunka
box to the assembly area
Material handler then withdraws the previously completed work
...and supplies to supermarket

What is Heijunka?
---Learning to See
Two Main Elements of Heijunka

Production Planning:
The Heijunka Process- Step 1
Level Production Volume.
1) Level Volume of Finished Goods
Level Production Variety.
A) Requirement =
B) Takt Time
9600
PIECES PER MONTH
SHIFTS PER MONTH

Customer Requirement
HEIJUNKA
PRODUCTION
PLANNING
= 460
20
460
= 1 minute
460
Minutes per Shift

Product
Total
Requirement
9200
4600
2300
2300
Shifts/Month
20
20
20
20
Pieces per Shift
460
230
115
115
2011/5/18
2) Level Variety of Finished Goods
2) Level Variety of Finished Goods
Traditional Batch Method

1 2
Heijunka Method
9 10 11 12 13 ..... 460
1 2
230
115
230
115
115
115
TOTAL 460
9 10 11 12 13 ..... 460
TOTAL 460
3) level Proceeding Processes
3) level Proceeding Processes

Process A
Delivery 2 min.
PRECEDING
PROCESS
OPERATION
FINAL
LINE
OPERATION
2 min./piece
Operators Required: Manual Cycle Time
= 1
Takt time
= 2 min./piece
Final Production Schedule (Lot)

Process B
Produce
Require
ment
Cycle
time
Takt
Time
230
2 min
2 min
115
4 min
4 min
115
8 min
4 min
Final Production Schedule (Lot)

A
Operators Required: Manual Cycle Time

4 min./piece
= 1
Takt time
= 4 min./piece
Delivery 4 min.
A
B
C
B
C
Process C
Operators Required: Manual Cycle Time 8 min./piece =
2
= 4 min./piece
Takt time
Delivery 4 min.
2011/5/18
Another example
Heijunka in Practice
1.
2.
3.
http://membres.multimania.fr/hconline/lean/heijunka2_us.htm
4.
5.
6.
7.
Agenda

What is Heijunka?
Calculate daily requirements

Decide time interval (1HR10MIN.) and establish route
Heijunka runner picks up the available Kanban delivery cards (at the
specified time) and proceeds to finish goods rack at cell
Heijunka runner pulls finish goods from rack and detaches Kanban
build from product- This will schedule the cell to start
Heijunka runner takes product with Kanban delivery cards back to
Heijunka board.
After product has been completed by the last operation in cell, a
Kanban build card for that product is attached and both are returned
to the cells finish goods rack.
After each trip to the cell, the Heijunka runner is responsible for
1.
Getting finish goods to the Heijunka delivery board.
2. replenishing raw material to cell.
HMLV vs HVLM
high-volume low-mix
manufacturers
Ie Ford
win business on the cost
and quality of products
high-mix Low-volume
manufacturers
Ie toyota
earn business based on
agility/flexibility in how
quickly they can deliver
what the customers
wants
2011/5/18
Issue
JIT is feasible in high-volume, low-mix
production but difficult in HMLV

HMLV enhances issues such as
The work times for each product are unequal
Not all employees have the same level of
competence, hence job shifting and rotation is

difficult
Agenda

What is Heijunka?
Solution
Divide each incoming order into
batches that can be assembled in
roughly the same amount of time
2. Use Heijunka principles to
smoothen batch production
3. Use SMED principles to reducing
setup time
4. Used Standard Work principles to
standardise work and improve ease
of training
1.
What is OEE?
Overall Equipment Effectiveness!
How effectively does your equipment run when you
plan to run it?
OEE = Availability X Efficiency X Quality
80% x 80% x 80% = 51.2% OEE!!!
Benefits
Identify major losses
Road map to find problems
Enhance capacity
Benchmark equipment
2011/5/18
Overall Equipment Effectiveness (OEE)
Definitions
Total Operating Time
Planned Availability
If you planned to use it, could you
Not
scheduled
A Net Operating Time

Downtime
losses
B Running Time
Performance Efficiency
C Target Output
Is it running at the desired output level
D Actual Output
Speed
losses
E Actual Output
Quality
Are you producing 100% good product
The Six Big Losses
F Good Output
OEE
Defect
losses
= B/ A
F/ E
D /C
Availability
Performance Quality
100
Breakdown
Available Run Time
Breakdowns
Setup & Adjustment
Idling & Minor Stoppages
Startup
Reduced Speed
Quality Defects & Rework
Changeover
Downtime Losses
Idling & Minor Stoppage

Net Operating Time
Reduced Speed
Speed Losses
Scrap & Rework

Valuable Operating Time
Start up
Defect Losses
2011/5/18
Agenda

What is Heijunka?

1) Improving the Availability Dimension
Changeovers
50
SMED
Standard Work
Technology
40
Control System
Breakdowns
Pareto Analysis
30
20
10
- Jams
- Other
- Inserts
- Chips
Problem Solving Techniques 0

TPM
5S
2) Improving the Performance Dimension
3) Improving the Quality Dimension
Idling and Minor Stoppage Loss.
Non Conformance Losses
Pareto Analysis
Variability Reduction techniques i.e. SPC
Problem solving
Poke Yoke
TPM
Heijunka
Takt Time
Reduced Speed Losses.

Kaizen events
Training
Standard Work
Start Up / Set-up Losses.

SMED
5S
Design of Experiment
SPC
Re-design and Implementation
2011/5/18
Summary
Reference
AVAILABLE
TIME
'SIX' BIG LOSSES

DOWNTIME
LOSSES
BREAKDOWN
AVAILABILITY % =
# AVAILABLE TIME - DOWNTIME x 100
# AVAILABLE TIME
CHANGEOVER
PRODUCTIVITY % =
SPEED
LOSSES
IDLING & MINOR STOPPAGES

REDUCED SPEED
NON CONFORMANCE
LOSSES
VALUE
ADDED
RUNNING
TIME
NON-CONFORMING ITEMS
Books
Mahoney, RM (1997) High Mix Low Volume Assembly,
Prentice-Hall, Englewood Cliffs, NJ
Lane, G (2007) Made-to-Order Lean: Excelling in a High-Mix,
Low-Volume Environment, Productivity Press
either
CYCLE TIME x QUANTITY PRODUCEDx 100

## RUNNING TIME
or
TAKT TIME x QUANTITY PRODUCEDx 100

## RUNNING TIME
SET-UP SCRAP
QUALITY % =
x 100
QUANTITY PRODUCED - NON CON. ITEMS
QUANTITY PRODUCED
Articles
Bokhorst, J., Slomp, J (2010) Lean Production Control at a HighVariety, Low-Volume Parts Manufacturer, Interfaces, 40(4),
p303-312
O.E.E % = AVAILABILITY % x PRODUCTIVITY % x QUALITY %
Overview
Session 11-12
Operations and Process
Improvement
Kulwant S Pawar
Professor of Operations Management
Email: Kul.Pawar@nottingham.ac.uk
Why Benchmark?
External vs internal benchmarking
Consulting methodology
Kaizen (CI)
PDCA Cycle
Kaizen versus Innovation
Summary
Nottingham University Business School, UK
Professor K S Pawar
Professor K S Pawar
Why Benchmark?
To be able to compare and contrast with others

(internal or external comparisons)
To make strategic & informed decisions for
improvements
To be competitive
Often rating, what is important to customers needs to
be analysed and understood
GOOD
Better
than
EXCESS ?
APPROPRIATE
Same
as
IMPROVE
6
7
URGENT
ACTION
8
9
9
Less
important
LOW
Professor K S Pawar
Worse
than
Importance-performance matrix useful way of

examining order winners and order qualifiers
Professor K S Pawar
PERFORMANCE
AGAINST
COMPETITORS
To identify potential areas of weakness
The importance performance matrix
BAD
To understand the current status
Qualifying
Order
winning
IMPORTANCE
FOR
CUSTOMERS
HIGH
Slack et al, 2010
Historical evolution of Quality and CI
How Do Organizations Respond?

Organizations Rated By Performance
American
initiatives
Organisational
Development
Excellent -sustainable organisation

(Competitive Continuous Improvement, Breakthrough and Sustain business
excellence)
Country
Class
Japanese
initiatives
World-Class
(Continuous Improvement to become and sustain being the best)
World
Class
European
initiatives
(Keeping ahead of change)
Above average, but think they are

good or very good
ReEngineering
Total Quality
SixSigma
(Adaptive)
Survivors
Below average, but think they are
average or better
BSC
ISO9000
Zero
Defec
t
EFQM
MBNQA
Demin
g Prize
QCC
TQC
JIT
1960
1970
Slipping
Organizations
TQM
Lean
Productio
n
Kaize
n
1980
Winners
KM
Organisational
Learning
Learning
Best in
Class
1990
1995
2000
2005
Troubled
Organizations
Time
Losers
High Performance Benchmarking: 20 Steps to Success H. James Harrington
Professor K S Pawar
Professor K S Pawar
Internal Benchmarking
Benchmarking (External)
Competitive Benchmarking - comparison with
competitors
Functional Benchmarking - other organisations who

operate in a similar area of work, e.g., similar production
processes, and may be quite willing to co-operate
Generic (or process) Benchmarking - Main processes

are similar in every industry. e.g. A high level process such, as
staff appraisal is likely to have similarities in all organisations.
Best Practice Benchmarking - compare yourself to the

best companies in your industry
Professor K S Pawar
.. is simply setting an internal target, which a

company wants to or aspires to achieve.
Questionnaires are developed and participants
are asked to rate their current performance and
where they would like to be (as-is to to-be).
Comparison between different departments is
also possible.
Compared to external benchmarking this
method will enable companies to quickly and
easily identify areas for improvement.
Professor K S Pawar
Customers needs & how the performance might change over time
Different standards of comparison give different messages

100
cost
2
.5
.5
Absolute performance = 100%

Strategic goal = 95%
cost
2
90
.5
Actual performance = 83%
80
1
.5
dependability
Competitor performance = 75%
70
speed
speed
dependability
0 .5
0 .5
60
Last years average performance = 60%
50
40
Time
quality
flexibility
Time
quality
flexibility
Performance by historical standards is GOOD

Performance against improvement goal is POOR
Performance against competitors is GOOD
Absolute performance is POOR
Performance of the operation
Requirements of the market
Professor K S Pawar
Slack et al, 2010
Professor K S Pawar
IATA number of employees Data
Benchmarking Supply-Chain Management

Typical
Firms
Administrative costs as a
percent of purchases
Lead time (weeks)
Time spent placing an order
Percentage of late deliveries
Percentage of rejected material
Number of shortages per year
Professor K S Pawar
3.3%
Benchmark
Firms
0.8%
Slack et al, 2010
Ticketing, sales
and promotion
Airport handling
5912
3687
3394
3914
2.32
1.45
1.33
1.53
9.30
421
2028
3208
3072
232
15111
4.82
7.62
7.30
0.55
35.89
British Airways
3537
14568
6831
5761
10467
48748
4.12
1.93
1.63
2.96
13.78
Lufthansa
4607
13472
11795
90673
2.92
2.56
0.00
0.00
19.68
United Airlines
6455
15460
8430
3488
18191
61248
2.40
1.31
0.54
2.82
9.49
Singapore Airlines
2129
6856
475
2321
735
14713
3.22
0.22
1.09
0.35
6.91
618
1365
633
4555
2.21
1.02
0.00
0.00
7.37
Airline
Air Canada
Pilots and copilots

2551
Ratio to Pilots
Air India
15
42 minutes
33%
1.5%
400
8
15 minutes
2%
0.0001%
4
BMI
Cabin
attendants
Maintenance and
Overhaul
Total
(employees)
23714
Professor K S Pawar
Assessment Module
Example: Consulting System - An Overview

Request for
Assessment
I1
Target CE Improvement
Request for
Request
Director
Request
Assessment
CE Assessment
Module
I1
Raising
Awareness
Raising
Target CE
Improvement
Request
CE Solution
Solution
Awareness
1
O1
Request for CE
Solution
Identifier
I2
Request for
Request
Benchmarking Request
Assessment
(Optional)
2
Understanding
Area of CE
Request for Initial CE

O2
I2
Benchmarking
Improved CE
Initial
CE Screening
Improvement
Request for
Tool Selection
(Optional)
Request
CE Tools
Request for Target

O3
Request for CE Tool

Selection
I3
CE Assessment
Benchmarking Request
Tool
Selection
Module
Implementation
Guidelines
(Optional)
O4
I3
Target
Data
Collection
4
O1
Target CE
Improvement
Request
O2
Benchmarking
Request
(Optional)
Professor K S Pawar
Professor K S Pawar
Areas & Criteria for Assessment
Organisation
Organisational Structure
Internal & External; Horizontal and
Vertical
Business Strategy
Goal Sharing, Strategy
deployment, Focus on key
competencies,...
Technology
Manufacturing Processes
Process structure, key operations,
...
Processing Equipment
Suitability, Functionality, Flexibility
Human Factors
Knowledge & Skill Base
Available knowledge and skills
Human Empowerment
Knowledge Sharing, Training,
Motivation
Professor K S Pawar
Company CE Profile (CEP) an overview
Assessment Criteria
Integration
Performance Values
Assessment Areas
Parallelism
Standardisation
Continuous
Improvement
Company
CE Profile
(CEP)
Customer/Supplier
Focus
Information Flow
Professor K S Pawar
Assessment Module - Initial Screening
Initial Screening-Identifying Critical Area(s) of Improvement
Understanding
I1
Interactive
Questioning
1
Current state
Desired state
Performance value
Improved CE
Company Specific
Information on CE
Request for
Initial CE
Assessment
Analysis
I2
Key Process Areas
CE Profile (CEP)
Selected area of improvement
Benchmarking
3
Comparative
Benchmarking Request (Optional)
CE Status
I3
V(c)CEP
40
32
35
32
40
50
CE Profile ( current)
V(d)CEP
60
40
57
65
63
50
CE Profile ( desired)
Area of CE Improvement
Reasoning
V(F)
O1
Professor K S Pawar
CEP
CE Profile ( focus)
Professor K S Pawar
Target Data Collection - Investigation of Critical Area(s) of

Improvement
Assessment Module - Target Data Collection

Area of CE
Improvement
I1
Target
Interactive
Questioning
1
Target Area Assessment

Area Specific CE
Information
Company CE Profile (CEP)
Request for
Target CE
Assessment
Target
Analysis
2
Area CE Status
V(c)CEP
pc1
pc3
pc4
pc5
pc6
V(d)CEP
pd1 pd2 pd3
pd4
pd5
pd6
V(F)CEP
I2
pc2
Performance Values
Benchmarking Request (Optional)
I3
Target
Benchmarking
3
Target CE
Area
Comparative CE
Improvement Request
O1
Status
Company Area CE Status (CES)
Target
Reasoning
4
Professor K S Pawar
Request
O2
V(c)CES
sc1
sc2
sc3
sc4
sc5
sc6
CE Status (current)
V(d)CES
sd1
sd2
sd3
sd4
sd5
sd6
CE Status (desired)
V(F)CES
CE Status (focus)
Professor K S Pawar
Target Data Collection - Results
Professor K S Pawar
Continuous Improvement (CI): Definition
What is Kaizen?
Professor K S Pawar
Some of the elements of improvement approaches

Emphasis on
rapid change
CI is also known as Kaizen (Japanese word)

Masaaki Imai Kaizen means improvement in
personal life, home life, social life and work life.
When applied to workplace. Kaizen means
continuing improvement involving everyone
managers and workers alike
an effort to continuously seek and make

changes for the better through the processes
which are characterised by either
incremental or radical transformation, and to
maintain the results.
Professor K S Pawar
End-to-end
processes
Radical/
breakthrough
improvement
Six Sigma
Process based
analysis
Customer
centric
Emphasis on
solutions what
to do
Lean
Business process
reengineering (BPR)
Evidence-based
decisions
Emphasis on
methods how
Synchronized
Reduce
to do it
Systems and
flow
variation
Emphasis on
procedures
Waste
education Perfection
identification
is the goal Improvement
Customer
Include all
Continuous
cycles
relationships
people
improvement
Total quality
management
(TQM)
Emphasis on gradual
change
Professor K S Pawar
What are the key elements of operations improvement?

The elements that are the building blocks of improvement include:
Radical or breakthrough improvement
Continuous improvement
Improvement cycles
A process perspective
End-to-end processes
Radical change
Evidence-based problem-solving
Customer-centricity
Systems and procedures
Reduce process variation
Synchronized flow
Emphasize education/training
Perfection is the goal
Waste identification
Include everybody
Develop internal customersupplier relationships.
Professor K S Pawar
Features of Continuous & Breakthrough Improvements

Features
KAIZEN (CI)
INNOVATION (breakthrough
improvement)
Effect
Long-term and long-lasting but undramatic
Short-term but dramatic
Pace
Small steps
Big steps
Timeframe
Continuous and incremental
Intermittent and non-incremental
Change
Gradual and constant
Abrupt and volatile
Involvement
Everybody
Select few champions
Approach
Collectivism, group efforts, systems

approach
Rugged individualism, individual ideas and

efforts
Mode
Maintenance and improvement
Scrap and build
Spark
Conventional know-how and state of the art
Technological breakthroughs, new

inventions, new theories
Practical
requirements
Requires little investment but great effort to

maintain it
Requires large investment but little effort to

maintain it
Effort orientation
People
Technology
Evaluation criteria
Process and efforts for better results
Results for profits
Advantage
Works well in slow growth economy
Better suited to fast growth economy
Source: M. Imai 1986
Professor K S Pawar
Two improvement cycles
Kaizen v Innovation
Kaizen (Japanese)
Innovation (Western)
Define
Plan
Do
Control
Performance
Large number of small

Large scale, infrequent
incremental
Top-down, deployed
improvements
Step change in quality
Bottom-up
performance Based on people working
Breakthrough
in improvement
Often technology-based
teams/QCC
Company-wide
Kaizen
Innovation
The plandocheckact, or Deming improvement cycle, and the

definemeasureanalyzeimprovecontrol, or DMAIC six sigma
improvement cycle.
The concept of CI literally implies never ending cycle
Act
Check
Improve
Measure
Analyze
Time
Professor K S Pawar
Professor K S Pawar
The DMAIC cycle
PDCA Cycle (Western)
Defineidentify
problem, define
requirements and
set the goal
The DMAIC
cycle
Plan
(Management)
Controlestablish
performance
standards and
deal with any
problems
Measuregather
data, refine
problem and
measure inputs
and outputs
Improvedevelop Analyzedevelop
problem
improvement
hypotheses, identify
ideas, test,
establish solution root causes and
validate hypotheses
and measure
results
Do
P
Fire
Fight
D
C
(Worker)
Check
(Inspectors &
Management)
Source: M. Imai 1986
Professor K S Pawar
Professor K S Pawar
Incremental and Breakthrough Improvement

Processes
Plan
Act
Continuous Improvement = (Incremental

Improvement + Radical/Breakthrough Improvement)
+ Maintain
Incremental
Improvement
Quality
Performance
Performance
PDCA cycle repeated to create continuous improvement
Do
Check
Time
Maintain
Performance
Improving
steps
(PDCA,
DMAIC)
QA
Breakthrough
Improvement
Declining quality
performance without
maintenance
Time
Professor K S Pawar
Professor K S Pawar
Ten Kaizen sayings
Kaizen includes:
Get rid of all old assumptions

Don't look for excuses, look for ways to make things
happen
Say "NO" to the status quo
Don't worry about being perfect - even if you only get
it half right " start NOW!
It does not cost money to do KAIZEN
If something is wrong "Fix it NOW
Good ideas flow when the going gets tough
Ask "WHY" five times - get to the root cause
Look for wisdom from Ten people rather than one
Never stop doing KAIZEN!
Customer orientation
TQC (Total Quality Control)
Robotics
QC circles
Suggestion system
Automation
Discipline in the workplace
TPM (Total productive maintenance)
Kanban
Quality improvement
JIT
Zero defects
Small- group activities
Cooperative labour management relations
Productivity improvement
New product development
Professor K S Pawar
Professor K S Pawar
Problem Solving Tools

Cause & Effect
Diagram with CNX/SOP
Method for Organizing ideas (Fishbone

Diagram).
When you need to identify and explore and display the possible
causes of a specific problem or condition
Pareto Diagram
Separates the vital few from the trivial many.

Organizes data from highest value to lowest.
When you need to apply the relative importance of all conditions in order to:
Choose the starting point for problem solving.
Monitor success.
Identify the basic cause of a problem.
Run Chart
Method of graphing trends.
Histograms
Data collection and presentation tool for

frequency of occurrence.
Process Flow Charts
Pictorial representation showing all steps of a

process
5 Whys Root Cause
Method of breaking down the problem to the

root cause.
IPO Diagram
A visual presentation of capturing Inputs that

affect Outputs in a process
Summary
Important to develop internal and external benchmarks
Need to develop systematic processes
Human centred approach with advisory support and
guidance built in as integral component of most assessment
tools
Generic methodology needs to be developed which can be
adapted to specific situations/scenarios
Kaizen widely practiced and embedded in many Japanese
companies & increasingly accepted more widely
Extensive debate between Kaizen vs innovation
When you need to do the simplest possible display of trends within

observation points over a specified period.
When you need to discover and distribute data by bar graphing the number
of units in each category.
When you need to identify the actual and ideal path that any product or
service follows in order to identify problems.
When you need to implement corrective action on a problem and want to be
sure your actions will address the root cause and not just the symptoms of
the problem.
When you need to identify the inputs that comprise a process yielding to the
desired output(s) of any product or service
Why?
Why?
Why?
Why?
Why?
O
P
The foundation of statistical engineering and KISS.

Normal Distribution
The distribution characterized by the smooth, bell

shaped curve.
First Pass Yield (FPY)
Percent of first time passers throughout a system.

Same statement as Pareto Diagram above.
COPQ
The costs associated with any activity that is not

doing the right thing right the FIRST TIME.
The discipline of using a structured approach to
interrogate a process and optimize it via data
Purposeful changes of the inputs (factors) in order to observe corresponding

changes in the output (response).
Helps identify products or processes to focus improvement efforts on.
Y1
Y2
FPY = Y1*Y2...
Design of Experiments
(DOE)
Professor K S Pawar
$
Fac tor
A
B
C
D
E
F
G
Row # Pull Ba ck a ng le Stop an gle Pin He ig ht Cu p h eigh t Rub be rb an d po sitio n Ba ll typ e Ope ra tor
1
1 62
2
2
4
2
-1
-1
2
1 62
2
2
4
2
1
1
3
1 62
2
3
5
3
-1
-1
4
1 62
3
2
5
3
-1
1
5
1 62
3
3
4
3
1
-1
6
1 62
3
3
5
2
1
1
7
1 80
2
3
5
2
-1
1
8
1 80
2
3
4
3
1
1
9
1 80
2
2
5
3
1
-1
10
1 80
3
3
4
2
-1
-1
11
1 80
3
2
5
2
1
-1
12
1 80
3
2
4
3
-1
1
Y1
2 6.2 5
42 .5
37.8 75
71
96
96
75
1 03 .5
94 .5
8 1.2 5
9 8.7 5
80
Y2
25 .2 5
4 2.5
3 6.5
72
96 .7 5
95 .2 5
74
10 2.5
94 .2 5
83
97
77 .7 5
Y3
25
41
36
71.5
96
95 .25
72.5
10 2.5
94
82
96 .25
79 .25
Y4
25 .5
43
3 7.8 75
70 .5
95 .5
9 5.25
72
1 01 .5
94
82
96
79 .5
Y b ar
S
2 5.5 0.5 400 62
42 .25 0.8 660 25
3 7.0 625 0.9 601 43
71 .25 0.6 454 97
9 6.0 625 0.5 153 88
9 5.4 375 0 .3 75
73 .37 5 1.3 768 93
10 2.5 0.8 164 97
9 4.1 875 0.2 393 57
8 2.0 625 0.71 80 7
97 1.2 416 39
79 .12 5 0.9 682 46
Professor K S Pawar
18/05/2011
The Theory of Constraints (TOC)
The Goal: a process of ongoing

improvement by Eliyahu M. Goldratt and
Dr Jane Guinery
Jeff Cox (2006)

Starts with Alex Rogos dilemma - the typical
factory from hell
The Race by Eliyahu M. Goldratt and

Robert E. Fox (1994)
Production operation based on JIT
Session content
09:00-10:30
Introducing TOC
A simple application
Principles from The Goal
Rogos business scenario
The Goals analogies
Drum-buffer-rope
Includes dice game
simulation
Buffer management
Proces
sA
11:00-12:30
What is The Goal?
Accounting for TOC
Business decisions
exercise
Implementation issues
The Precision Tool room
The Chain Manufacturer
Proces
sB
Proces
sC
DEMAND
SUPPLY
KANBAN
Instruction
BUT, What happens if:
You manufacture a high variety of product
Demand is not repetitive
SLIDES FOR THE 2nd PART OF THE SESSION

WILL BE PROVIDED IN CLASS
Process routes and processes are not standard

Product focused or cell layout is not sustainable
DO YOU HAVE ANY CONCERNS WITH APPROACH?
18/05/2011
What is TOC?
Why TOC?
Impact of variety and variation
Variety
Low volume of each
product may not have

repeat orders
Flow layouts not feasible as
routes vary
Takes a whole system perspective
Variation due to
All systems have constraints which

dictate performance
Demand fluctuation
Process times change with
Constraint Management Improvement

Process
different products
Supply disturbances
Batch sizes make flow
lumpy
Need a different type of approach to PULL
1. Identify the constraint

2. Exploit the constraint
3. Align/subordinate everything else to
support the constraints
4. Elevate the constraint

5. Prevent inertia go back to step 1
Need to manage and smooth

demand
Align decisions
IMPACTS ON WHOLE BUSINESS
Need to protect supply

5
What are Constraints?
An illustrative case:
Towel manufacturer invests

in new machinery
Internal resource constraints
Processes:
Spinning
Market constraints
Warping
Policy constraints
Weaving
Bleaching
Dying
Cutting and Hemming
Finishing and labelling
7
18/05/2011
A closer inspection of the constraint

management improvement process
A bottleneck is a physical constraint

A bottleneck is defined as any department,
work station, or operation that restricts the flow
of product through the production system.
Identify the system's constraints

Determine how to exploit the system's constraints
Subordinate everything else to the constraint )
Analysis
of this example
leads to the following
An
illustration
of its significance
Elevate the constraint so a higher performance level can
How do you make sure the constraint is not wasted?

be reached
two principles:
If the constraint is eliminated go back to step 1

Do not let inertia become the new constraint
(1) An hour of production time lost at a bottleneck subtracts

one hour of output from the entire production system
(2) An hour of time saved at a non-bottleneck only adds an
hour to its idle time
9
10
Common bottleneck (X) and

non bottleneck (Y) scenarios
Identify the constraint

What is controlling flow?
Are all constraints the same?
What is the rate limiting
NO!
Physical constraints
Policy constraints
Paradigm constraints
Ask yourself which is the
factor?
Material
Resource
Skills
Sales
most common?
If external, select an
internal control point
There is a constraint, but

how do we see it?
11
Sno. Relation
Effect
Y X
Excess inventory in front of X
XY
Y would have idle capacity or would be starved for parts

to process (which is acceptable)
X Assembly
Y Assembly
Y parts would accumulate at the assembly
X Product X
Y Product Y
Ys capacity is greater than the market demand,

accumulation of finished goods inventory of Product Y.
12
18/05/2011
Exploit the constraint
Subordinate to the constraint
How can we get more money faster through the constraint

without spending more money
How do we ensure the rest of the company does not

waste the constraint capacity?
Eliminate constraint waste

Time
Unsold product
Scrap
Set-up
Unneeded work
Identify and use process alternatives to offload
Ensure
smooth flow of work to constraint
through lean principles e.g. low inventory, small batch sizes

Introduce
Drum-Buffer-Rope production control
WHICH
Protective Capacities (buffers)

Schedule
includes Buffer Management which helps focus
Concentrates on
Makes the goods we can sell
SMED, Poka-Yoke, TPM, SPC, Schedule, Cloud technique
improvement efforts on processes impacting on constraint

How can we select the most profitable work?
Transfer batch size process batch size
13
14
Drum Buffer Rope

Drum
Buffer?
20
Rope
University of Nottingham
16
18/05/2011
Production operation based on TOC
The Buffer
(and Drum-Buffer-Rope)
Rope release work based on bottleneck hours!
Release Work
Process
C
Process
A
Process
F
Process
D
Hours of work
available to
constraint 4
B
5 pcs
3 hrs
C
5 pcs
5 hrs
A
25 pcs
5 hrs
Buffer
Process
D
How is it managed?
Process
E
Process
B
Buffer size?
Buffer content?
Drum constraint process
DEMAND
D
2 pcs
6 hrs
B
5 pcs
3 hrs
1
C
2 pcs
5hrs
2
Schedule
C
Days
Are other buffers needed?

18
17
Network Flow Diagram of a more complex system

with one Bottleneck
D-B-R: The Benefits

Reduced Lead Time
High Due Date Performance
Reduced levels of inventory
Reduced expediting
Capability for increasing sales significantly
Fewer materials/parts shortages
Improved bottom-line performance (typically
within 6 - 8 weeks)
19
20
18/05/2011
Elevate the constraint
Questions
How do we increase the capable rate of the constraint?
Does TOC theory make sense in your business?
Management question
Where should the constraint be located?
How do we move it there?
To most effectively apply the tools of constraint
manufacturing
Are you already using some of the principles
discussed?
If not, how might you apply them?
Prevent inertia
21
22
18/05/2011
Introduction
It supports large scale
class, up to 70-100 players
It integrates both physical
lean game. i.e. JIT LEGO
game and Dice game
Please open the web-game
http://www.nottingham.ac.uk/~lizkht/
Basic System Requirements
To Start
Follow the instructions
User need a computer/laptop

which is already connected to
internet
step by step
The games consists of
The game supports any

browser with Flash Player
PlugIn.
three levels.
Push demo
2. Pull demo
3. JIT production game
1.
The web game needs

Javascript enabled in your
browser setting. (The default
settings of your browser is
already enable this functions)
3
18/05/2011
Level 1 - Demonstration of Push

System
Level 2 - Demonstration of Pull

System
Click the Start Simulation

button to run the simulation
The setting is the same as
level 1, it is only enhanced

with Kanban
The simulations will stop at

turn 200.
Record the number of
finished goods and

number of WIP
Record the number of

finished goods and number
of WIP
Is there any difference
If your facility is connected

with printer, you can print
the results as well
between these two

simulation results? Why?
Level 3 JIT Production Game
Level 3 JIT Production Game
The Pull simulation is
The game will stop at 1000 rounds
improved in this level that

you can change some
parameters of the game
Please configure your production line that can achieve
maximum output
The parameters are:

Kanban batch size
Resource allocated in
improve quality variance
Assign number of staff in
each work station
Print the screen, or drop down your production line
setting while you run the game each turn
18/05/2011
Discussion
1.
The production target now is changed to - "manufacture 100 pieces

of finished item within 10 working days", what are the parameters
changes? (you can try it by yourself to run the simulation again)
2.
What does the Kanban system affecting the production? in terms of

cost? in terms of performance?
3.
What is the critical factor affecting the performance?
4.
Does the changes of Kanban batch size affecting the performance?
5.
Are there major parameters about Kanban system that is neglected in

this simulation? What's that?
2011/5/18
Purpose statement
Previous session
The DNA of Lean is PEOPLE...
Session 17
Mindset, Behaviour and Coaching
Agenda
This session
Lean is as much about process improvement as people
improvement and development
Understanding behaviours, mindset and coaching is
fundamental in developing people for successful Lean
implementation
For most companies, doing businesses as

usual is not an option
Mindset and Behavior

Kata Coaching
2011/5/18
Most lean attempts fail for 3 reasons

Waste
Inflexibility
Barriers to lean transfer

Fail to address performance inhibitors
Variability
5S
Take a piecemeal approach, which can deliver

results at micro-level but doest not deliver
significant impact to the customer or
shareholder
The case of Toyota and GM: NUMMI (Inkpen, 2005)

Managers assigned to NUMMI gave little preparation
and training
Absorptive capacity of the recipient resistance of GM
to implement lean
Lack of relationship between the source and recipient
On average 27 month duration of knowledge transfer
TPS deeply embedded in Toyota context and tied into an
integrated system
Only tackle the technical elements
On barriers to transfer
Firm culture that values technical expertise &
knowledge creation over sharing

An over-reliance on transmitting explicit rather than
tacit information
Not rewarding people for learning and sharing
knowledge
Capacity to facilitate knowledge transfer and
assimilation
Attention Test
http://www.youtube.com/watch?v=vJG698U2Mvo
2011/5/18
Transfer mechanisms for

operations know-how
Transfer approaches
Manufacturing
Adaptation
Ferdows (2006)
Cloning
Intels Copy exactly
Practices
Source: Manufacturing Mobility, University

of Cambridge
Global (McDonald)
Polycentric (BAT)
Form of
operations
know-how
Codified
Ethnocentric (traditional family enterprises)
Moving people
(Club Med)
Tacit
Issues such as:
Manuals and systems

(Mcdonalds)
Process appropriateness
Projects
(AOL)
Joint development
(Intel)
Fast
Slow
Transferability
Speed of change of operations know-how
Life cycle effects
We believe transfer needs to be

approached at three levels
The dimensions of Lean knowledge

What are the different levels of lean knowledge ?
Configuring resources to educate

workers on lean thinking and
techniques
What knowledge are general or sticky ?

How to identify them?
Before
transfer
Lean
system
Management
infrastructure
Ensuring that the operating

system is followed in a habitual
way (hard-wired) without any
form of extraordinary effort
Mindsets,
Capabilities &
behaviours
After
transfer
Aligning the mindsets and

behaviours of workers with
business objectives, and build
self-standing capability
What are the stages in lean practice transfer?
Before
transfer
Lean
system
Management
infrastructure
Mindsets,
Capabilities &
behaviours
After
transfer
2011/5/18
Sustaining change depends on...
What is Mindset?
Aligning mindsets, capabilities and behaviours to the
People fall into two types of mindsets:

Fixed
Growth
The fixed mindset sees limitations on intelligence,
business goal
personality, opportunities, etc.

The growth mindset views challenges as opportunities
for improvement.
(McKinsey & Co)
To change mindset
Role of motivation in changing

behaviour
Traditional management = extrinsic motivation
External forces such as

Rewards and incentives

Punishment
Company targets
Lean management and quality teams = intrinsic motivation

Motivation driven by internal force such as

interest
Enjoyment
Self efficacy
Challenges
2011/5/18
Agenda

Mindset and Behaviour

Kata Coaching
What is a Kata?
A way of doing something
A pattern, form, routine
or method
Originally a set of
sequences in martial arts
What is the Toyota Kata?

Toyota Kata
Day-to-day management, methods and routines
Behavioural rules for people
Taught to all organization members and repeated in
daily work
Two forms of Kata
Improvement Kata
2
Current condition
4
Barriers
PDCA
3
Target
1
Vision
Step 1: establish long term vision

Step 2: Current state, where are we now?
Step 3: what is our next target in order to reach our vision?
Step 4: what are the barriers to the target? Use PDCA to
overcome
2011/5/18
Improvement Kata
1.
2.
3.
4.
5.
What is the target condition? (the challenge)

What is the actual condition now?
What obstacles are now preventing you from
reaching the target condition? Which one are you
addressing now?
What is your next step? (start of next PDCA cycle)
When can we go and see
Coaching Kata
Purpose
For the mentor to assess the current status of

the process
the learner
To get the learner to build a chain of PDCA cycles (what is learned
from one PDCA cycle leads to the next PDCA cycle)

To help teach the improvement kata pattern through repetition
Train for short time frequently, then long time once

Hence use of incremental improvements
We build people before we build cars- Toyota
Coaching kata
Lessons learnt about Coaching kata
The stakeholders
The mentor (the Coach)
Usually targets are set too ambitious

Everyone has a mentor

Knows the details
Asks questions
Teaches the improvement kata
Focuses on learning NOT results
The Mentee (The learner)

Owns the target and works to achieve it
The Process or the focus of the Improvement Kata
A secondary Mentor to Coach the Coach
Do coaching at beginning of a shift as a kind of check

It requires practice
A coaching cycle is not a surprise check, so preparation
is the key
Relies on up to date facts and data
Coaching cycles are for improvement, not monitoring
Its not When can you have it done? rather What are
we learning?
2011/5/18
References and Reading

Coaching for Performance
http://www.youtube.com/watch?v=0ScHWylEDgA
Books
Dweck, C.S (2007) Mindset: The Psychology of Success, Random House Publishing
Harding, S. & Long, T. (2008) MBA Management models, Aldershot, Gower Publishing.
Rother, M (2009) Toyota Kata: managing people for improvement, adaptiveness, and superior
results, McGraw-Hill
Articles
Choo, A. S. (2010) 'Impact of a Stretch Strategy on Knowledge Creation in Quality Improvement
Projects'. IEEE Transactions on Engineering Management, PP, 99, 1-10.
Ferdows, K. (2006). "Transfer of Changing Production Know-How." Production & Operations
Management 15(1): 1-9.
Gosling, J., Mintzberg, H (2003) The Five Minds of the Manager. Harvard Business Review,
Nov, 81(11) p54-63
Hamel, G. & Prahalad, C. K. (1989) 'Strategic Intent'. Harvard Business Review, May/June, 63-76.
Hamm, J (2006). The Five Messages Leaders Must Manage, Harvard Business Review, May
Inkpen, AC (2005) Learning through alliances: GM and NUMMI, California management
review , 47, p114-136
Mueller, C.M., Dweck, C.S (1998) Praise for Intelligence Can Undermine Children's Motivation
and Performance, Journal of Personality and Social Psychology, 75(1), p33-52
Five Minds of the Manager

Advanced Material
(Not covered)
1.
2.
3.
4.
5.
Managing self: the reflective mind-set

Managing organizations: the analytic mindset
Managing context: the worldly mindset
Managing relationships: the collaborative mindset
Managing change: the action mindset
(Gosling & Mintzberg, 2003)

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TEMPUS LeanEA

LEAN Training Course

TEMPUS LeanEA Project

TEMPUS LeanEA Project

Lean game (IT base )

May 27 (Friday): Putting Lean into Practice

Lean implementation examples (KBR)

Choobineh, F (1988) A framework for the design of cellular manufacturing

Wemmerlov, U., Hyer, N (1989)Cellular manufacturing in the U.S. industry: a

Choo, A. S. (2010) 'Impact of a Stretch Strategy on Knowledge Creation in Quality

Ferdows, K. (2006). "Transfer of Changing Production Know-How." Production &

Hamel, G. & Prahalad, C. K. (1989) 'Strategic Intent'. Harvard Business Review,

Inkpen, AC (2005) Learning through alliances: GM and NUMMI, California

Hotel to Jubilee Campus

Walk Path to Victoria Center (Bus stop)

Bus stop at city

Go to Jubilee 28, 30, 31

Bus Routes (1)

Bus Routes (2)

There are two ways to get into

(2) Orange line 36,35,36,37 to the back

(1) Pink line: 28,30,31 to the MAIN

Route map in City Center:

All fair is 1.6 single, no weekly ticket

Getting off point at Jubilee Campus

How to Connect to UoN-guest

The UoN-guest wireless login page will appear

Enter your email address

Wireless Access Point

5-day program outline

5S, Visual management

Examples from cases

Name card exercise

KH Tan Toyota history and background

Data and root cause analysis,

Run charts, Histograms, Fishbone

Lean implementation examples

Pull versus Push

SMED and Poke Yoke

May 26 (Thursday): Putting Lean into Practice

Lean in practice - Theory of

Lean game (IT base )

Web game for larger class size

Course exam preparation

Pull versus push

KH Tan Tabletop game

Heijunka, High Mix Low Volume

K Pawar Gemba kaizen

May 27 (Friday): Putting Lean into Practice

Leadership, mindset, behaviour, and coaching

Old maid game, attention test

Managing continuous improvement

Video: American vs Japanese suggestion programs

Lean implementation examples (KBR)

Issues and challenges

Concluding discussion & Award ceremony

3) Afternoon Break (15.00-15.30)

Dr. Kim Hua Tan

Prof. Kulwant Pawar

Dr. Jane Guinery

Why Learn From Toyota?

number one in global automobile sales for the first

Background of Lean And TPS

The core concept of Lean originates from