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Lean Management & Lean Production

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How to apply the “Lean Concept” to all businesses…

2 May 23, 2018


Road to Lean Organization

Lean State
(To … be)

Kaizen

Current State
(As … is)

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Kaizen Definition

Kai Zen
改 } Change
善 } Good

Kaizen
改善 } Change for better
(Continuous Improvement)

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rights reserved.
Kaizen is never-ending
• Making measurable improvements that affect Safety,
Quality, Cost, Customer-satisfaction, Productivity, or
Lead-time.

• It involves Standardization, which sets a new baseline


(standard) and maintains the improvements that have
been made.

5
Lean, Waste and Value?

 Lean simply means “Waste-free”

 “Waste” is anything that uses resources but produces a


little or no value.

May 23, 2018 6


Value…

 “Value” is something that the customer is willing to pay for.

 “Value-added” are the activities that lead to the customer


willingness to pay.

 “Non-value-added” activities may be necessary for the


operation but add a little or no value!

 “Muda” is waste in Japanese and there are 7+1 types of


Muda

May 23, 2018 7


Value…

Value Added vs. Non-Value Added Work


Value Added Work
It is an activity that adds value to the product and the
customer expects it and is willing to pay for it

Non-Value Added Work – Auxiliary Work


It is an activity that does not creates value, but it is
necessary to have it.

Non-Value Added Work – Pure Waste


It is an activity that consumes resources, but creates no
value in the eyes of the customer.

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Fundamental Improvements
 Design is “everything”…
 To Kaizen a “bad design” is wasteful…
 “Engineering and Mfg.” responsibilities
 Process Re-engineering
 PCR
 ECR
FMEA
 DFMEA
 PFMEA

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Problem
Solving Sustainment

People
(Respect, Grow,
Challenge)

Process
(Eliminate Waste, Improve Flow)

Philosophy
(Long-Term Thinking; Lean as a Culture)

10 Foundation
Problem Solving Tools
PDCA Cycle

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Where to start……????

 What is the most important factor in any process, which


has to be checked & corrected first to impact:
 Safety
 Quality
 Customer-satisfaction
 Etc.

FLOW!
 People
 Materials
 Information

May 23, 2018 12


Improve the Flow
 Create an arrangement of people, machines, material, and
methods to allow a smooth uninterrupted flow.

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Flow…, all else is commentary…

 Value Mapping Analysis

 Throughput Analysis

 Inventory Turnover Rate

 Total Lead-time

 Cycle time (CT)

 Takt time (TT)


 TT=Available time/Units of work needed

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Jidoka
• Build quality into the process and prevent
errors from happening

Jidoka
Autonomation

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Jidoka
• The ability to identify abnormalities and stop the
process, to prevent defects from being passed on to the
next process (our customer)

• Ensure 100% quality

• Prevent equipment breakdowns or malfunctions

• Use manpower efficiently to prevent repairs from


occurring

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Jidoka
Autonomation
• Human intelligence transferred to machines using
error proofing devices to detect abnormalities.
• Signal for help and automatically stop if necessary.
• Build quality in station by preventing problems from
becoming defects.
• Allowing 1 man to oversee multiple machines.

• 自動化, is written using three kanji characters: 自 "self", 動


"movement", and 化 "-ization". In the Toyota Production System,
the second character is replaced with 働 "work", which is a
character derived by adding a radical, representing "human", to the
original 動.

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Jidoka
Jidoka Steps
1. Detect abnormalities
2. Stop defect from being passed on
3. Correct condition in workstation
4. Investigate and implement countermeasures

Problem on
M/C #3
Andon

1 2 3 4 5

Abnormality Indication Response

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Jidoka
Create a Visual Factory
• Signage, labels & displays used for all to clearly
understand the requirements, expectations and
standards of the environment.

• Focus attention & provide information

• Provides status at a glance

• Highlights out of standard conditions

• Facilitates correction and improvement

• Tool to make jobsite safe and efficient

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Jidoka
Andon

 Establish Visual Management


 Simple enough for front line staff to understand and engage.

 Dismantle shame and blame with data.

 Generate interest and maintain focus

 Helps to decide how to proceed

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Jidoka
Poka-Yoke (Error Proofing)

• Poka-yoke is a system and or mechanism that prevents


a mistake from occurring or make a mistake obvious at
a glance.

21
Jidoka
Poka-Yoke (Error Proofing)

• A device which prevents a process from

 Not making an error Prediction

 Not passing of a defect Detection

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5S Principles

Japanese English Meaning

1 Seiri Sort Clearing

2 Seiton Straighten Organizing

3 Seiso Shine Cleaning


Making
4 Seiketsu Standardize
Consistent
5 Shitsuke Sustain Maintaining

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5S Principles
5S makes MUDA visual
• It works like a radar system and a visual control in the workplace
to show:

Abnormalities

Waste (Muda)

Problems

Unsafe Conditions

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5S Principles

Improved
Safety

Higher Quality

Increased
Productivity

Reduced
Cost

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Role of Support Organizations

 There are two types of employees in a lean


organization:
 Those, who make the product/service

Production System

 And those, who support them

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The People Organization

 Start with “trust”


 Expenditure authority
 Full, unconditional delegation
 People system “helps” eliminate waste
 The Production System grows as People
grow
 Always keep the customer as No. 1

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The People Organization
 Problems are good
 Promote and protect job security
 No “silo” thinking!
 Reward “teams” not “individuals”
 No detail is too small
 Visit “Gemba” regularly
 Understand the real situation
 Form Kaizen/Jishuken teams
 Be open-minded
 Example of the space pen

28
Overview of LPS …

Why Others Fail …?

 …copy lean tools only without making work self-diagnostic.

 …workaround problems when they are recognized

 …do not systematically share what has been learned


locally

 …do not develop the capabilities of others to design work,


improve work, and institutionalize new knowledge.

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Overview of Lean

East Traditional West


 Root-cause analysis  Band-aide

 On-going training  On-going directives

 Problem-solving skills  Fire-fighting skills

 Resolved @ Gemba  Boardroom resolution

 Decisions made quickly  Federal jury needed!

 Flat organizations  Many layers!

May 23, 2018 30


Overview of Lean

East Traditional West


 Common-sense solutions  Hi-Tech solutions

 Quick implementation  Slow process to start

 $5 cost to implement  5-digit price tag!

 Requires doing  Requires approval from


upstairs!
 Gemba people can
 Must be complicated to be
understand it!
acceptable!

May 23, 2018 31


Overview of LPS …
Lean process improvement is a culture of ideas, tools,
and processes that are designed to eliminate waste
and improve workflow, to provide maximum value for
minimum cost. Although it has only emerged as a popular
business idea in the past few decades among some
organizations, its basic concepts have existed for over 300
years.

Lean is a culture, not just an idea!

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Cost-Plus, the FORMULA

Price
Profit

Cost + Profit = Price


Cost

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Traditional Thinking

Pric
e
Increased
profit profit
Cost

before after

Increase Profit by Raising the Price


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Kaizen Thinking

Pric
e
profit Increased
profit

Cost
before after

Increase Profit by Reducing Cost


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Ideal Work Process

• A process that runs without fluctuation and inconsistency, can


flex without stress, and is waste-free. (No Mura, Muri, Muda)

Muda Waste
Unevenness Mura

Muri Overburden

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Waste (Muda)

• It is an activity that consumes resources, but creates no value


in the eyes of the customer.

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7 +1 Types of Muda

What are they?

What causes them?

What they result in?

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Unevenness (Mura)

• Irregularity, fluctuations or inconsistency in the flow of


material, people, information, and equipment operation.

afternoon
Morning Work amount
Work amount

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Overburden (Muri)

• Pushing a machine or person beyond their


comfortable and practical limits causing them
physical or mental burden.

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“Reduce cost and maximize profits
through the total elimination of waste.”
Taiichi Ohno

BY

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