Lean Six Sigma - Yellow belt program

Module 1

prepared for

3-4 October 2008 zumtobel lighting division ZDL Curtici – lean 6 sigma
Learning Objectives

Î Introduction to Lean Six Sigma

Î Role of the L6S Yellow and Green Belt
Î Working with Charters
Î 7 waste classes
Î 5S workshop
Î Turnaround – business simulation (part2)

2
Introduction to Lean Six Sigma

• What is Lean
• What is Six Sigma
• Lean + Six Sigma

3
What is it …

Î General Electric, Allied Signal, Motorola, and many other

companies have saved billions through their Six Sigma programs.
The Lean Six Sigma curriculum will provide an expanded set of
tools which will further enhance your ability to deliver significant
value to your company.

Î Lean Six Sigma is not a statistics course.

Î Lean Six Sigma is an improvement initiative in which resources

(Yellow, Green, Black Belts) are armed with a powerful set of
problem solving tools (Six Sigma and Lean) and sent into the
organization to form, lead, and mentor teams on solving complex,
high return projects.

Î Lean Six Sigma is first and foremost a process.

We only apply tools when they meet our objectives.

4
What’s in It for Me?

• Understand how the Lean and Six Sigma

methodology evolved
• Understand the basic concepts of Lean
and Six Sigma

5
Hystory of Lean Enterprise

Craft
• Made to customer spec
• Single piece mfg .... each product unique
• Variable quality
• Little inventory
• High cost .... made for the rich
Mass
• Interchangeable parts - Whitney
• Division of labor - Taylor
• Assembly lines - Ford Lean
• Low variety - Ford
• Beyond the factory
• Labor strife
• High variety
• Small batch sizes
• Higher quality
• Engaged workforce
1600 1900 1925 1950 1975 2000
6
Origins of Lean

• Lean has been around a long time:

• Pioneered by Ford in the early 1900’s (33 hrs from iron ore to
finished Model T, almost zero inventory but also zero flexibility!)
• Perfected by Toyota post WWII (multiple models/colours/options,
rapid setups, Kanban, mistake-proofing, almost zero inventory with
maximum flexibility!)

• Known by many names:

• Toyota Production System
• Just-In-Time
• Continuous Flow

• Outwardly focused on being flexible to meet customer demand, inwardly

focused on reducing/eliminating the waste and cost in all processes

• Highly applicable to transactional businesses:

• Whenever flexibility and speed are key: banks, technology firms and
customer service organizations the most recent to adopt Lean
practices
7
Lean Enterprise

z Lean represents the way to reduce waste and add speed to the
process

z Lean focuses on waste identification

z Lean is centered around the customer

z Lean is guided by 5 principles that should drive any bussiness

process inside the organisation

8
Lean principles

James P. Womack

"The Machine that Changed the World“

Womack, James P., Jones, Daniel T., and Roos, Daniel (1990)

introduced the concepts of "Lean" manufacturing, as

typified by the manufacturing management processes
used by the Toyota automotive company.

“Lean thinking“
Womack, James P. and Jones, Daniel T., 1996

describes application of Lean principles outside

manufacturing and outside the automobile industry.

9
Lean principles

1. Specify what creates value from the customers perspective

2. Identify the value stream and eliminate waste

- concept to launch (problem solving loop)
- order to delivery (information management loop)
- raw material to consumer (physical transformation loop)
3. Make those processes flow

4. Make only what is pulled by the customer

5. Strive for perfection by continually removing wastes

10
Sources of Waste
1. Transportation (moving items from one place to another)
2. Inventory (items/paperwork/information waiting to be processed)
3. Motion (excess movement and/or poor ergonomics)
4. Waiting (delays caused by shortages, approvals, downtime)
5. Over-processing (adding more value than the customer is paying
for)
6. Overproduction (production ahead of demand)
7. Defects (rework & scrap – doing the same job more than once)

Another waste is: People (untapped and/or misused resources)

11
Toyota Production System
- Waste Elimination (Applies to every process)

“The ability to eliminate waste is developed by

giving up the belief that there is ‘no other
way’ to perform a given task. It is useless
to say, ‘It has to be done that way,’ or ‘This
can’t be helped!’
At Toyota, we have found that there is
always another way.”
– Study of the Toyota Production System

12
Criticism of lean
Î A successful lean process requires reduced fixed costs, variability and
uncertainty in the supply chain to reduce needs for raw materials and
finished goods inventories.

Î In order to reduce lot sizes and achieve reduced work in process inventory
in an economical fashion, fixed costs of batching and ordering have to be
reduced first. Otherwise, lean production results in increased costs.

Î Finally, seasonal effects might give incentive to buffer the production

process against known shifts in demand in order to reduce costly shifts in
production levels. Build to forecast is rational if forecasts are reliable, but
order lead times are not sufficient given production capacities.

Î Without a reduction in fixed costs or uncertainty, Lean supply chains are

subject to longer flow times (slower response and reduced service levels)
and reduced production throughput (less ability to meet demand) and
potentially reduced economic performance.

Î Careful consideration of market conditions must be made before any lean

initiatives are undertaken. Care must be taken in order to implement lean
programs with successful economic results.

13
Six Sigma History
• Motorola was the first advocate in the 80’s

• Six Sigma Black Belt methodology began in late 80’s/early 90’s

• More and more companies have embraced Six Sigma in all

industries
• Project implementers names includes “Black Belts”, “Top Guns”,
“Change Agents”, “Trailblazers”, etc.
• Implementers are expected to deliver annual benefits between
$500,000 and $1,000,000 through 3-5 projects per year

• Top-down program with Executive and Champion support

• Outwardly focused on Voice of the Customer, inwardly focused on

using statistical tools on projects that yield high return on
investment
14
Six Sigma

Î Variation is present in all products/processes

Î In some cases the variation is very small but still IT EXISTS!!!

Î Assuming that each thing is the result of a process we can state

the the process is inducing the product variation

Î Product variation is caused by process variation

Î We can tolerate variation as long as it fits between the imposed

limits and is stable in time

15
 What Is Six Sigma?

‹The term “Sigma” is a Greek letter (s) used to describe variability and is an indicator of
how likely errors are to occur
Centered Normal Distribution +/-6 Sigma Limits Effects of 1.5 Standard Deviation Shift

LSL Normal Distribution Centered USL LSL Normal Distribution Shifted USL

-6σ -3σ -2σ -1σ x +1σ +2σ +3σ +6σ -6σ -3σ -2σ -1σ x +1σ +2σ +3σ +6σ

Spec Limit Percent Defect. PPM Spec Limit Percent Defect. PPM
+/-1 sigma 68.27 317,300 +/-1 sigma 30.23 697,700
+/-2 sigma 95.45 45,500 +/-2 sigma 69.13 308,700
+/-3 sigma 99.73 2,700 +/-3 sigma 93.32 66,810
+/-4 sigma 99.9937 63 +/-4 sigma 99.3790 6,210
+/-5 sigma 99.999943 0.57 +/-5 sigma 99.97670 233
+/-6 sigma 99.9999998 0.002 +/-6 sigma 99.9996600 3.4

‹Sigma Quality Level is an indicator of how often defects are likely to occur (Six Sigma
Quality Level is said to equate to 3.4 PPM defective) 16
Frameworks of Six Sigma
Î Six Sigma Improvements
y Aligning processes to the customer and optimizing
process performance by solving problems.
Î Design For Six Sigma
y Develop new processes/ products that are capable.
Î Business Process Management
y Maintain performance improvement, while
y Highlighting new opportunities for making further
improvements
Î DMAIC Methodology
y Define-Measure-Analyze-Improve-Control
y Over-arching framework that the cultural infrastructure
and technical power of six sigma is applied within

17
Lean and Six Sigma
Integration

Lean Six Sigma

“We have tended to use all our energy and Six Sigma science to move
mean [delivery time] to…12 days.
The problem is, as has been said, ‘the mean never happens,’ and the
customer is still seeing variances in when the deliveries actually occur –
a heroic 4-day delivery time on one order, with an awful 20-day delay on
another, and no real consistency…
Variation is evil.”

– Jack Welch, 1998

18
Six Sigma and Lean Integration
Why Integrate?
“We knew we wanted to have Six Sigma Tools, that was clear. But we
also decided that what really makes change in a factory are some
of the Lean tools. Putting in a pull system, reducing batch sizes,
significantly changing setup times, all of a sudden everything
starts to flow.
Those are the types of things we saw over time that real made a
difference in our factories and so we said that has to be a part of
this training.”
– Lou Guiliano, ITT Industries CEO
on integrating lean techniques into
ITT’s Six Sigma Rollout

19
Six Sigma with Lean Is the Integration of Two Powerful
Business Improvement Approaches...
Precision + Accuracy + VOC
Î Six Sigma
y Voice of the Customer
y Statistical Process Control
y Design of Experiment
y Error-proofing
y Measurement Systems Analysis
y Failure Modes Effect Analysis
y Cause and Effect Analysis
y Hypothesis Testing
Speed + Low Cost + Flexibility
Î Lean
y Value stream mapping
y Bottleneck identification and
removal
y “Pull” from the Customer
y Setup and queue reduction
y Process flow improvement
y Kaizen & 5S
y Supply Chain Strategy
y S&OP
20
Integrating Lean and Six Sigma Initiatives

Î Lean and Six Sigma can co-exist independently,

but the benefits of integration are tremendous...
y Single channel for employing limited resources
y One improvement strategy for the organization
y Highly productive and profitable synergy
Î …while the pitfalls of not integrating them are
formidable
y Divided focus of the organization
y Separate and unequal messages for improvement
y Destructive competition for resources and projects

21
Six Sigma and Lean
Î Six Sigma is the “Unifying Framework”
y Six Sigma provides the improvement infrastructure
• CEO Engagement
• Deployment Managers
• Yellow Belts, Green Belts, Black Belts, Master BBs
y Six Sigma provides the over-riding methodology
• DMAIC
• DMEDI or DFSS
y Six Sigma provides the burning platform for
improvement
Î Lean provides additional improvement tools to
“turbo-charge” improvement efforts

22
Examples
Example of Six Sigma
without Lean
ÎCompany Defined Setup Reduction as
problem: DMAIC Team worked with little
improvement for months then discovered
the Lean Tool known as the Four Step Rapid
Setup method and reduced setup by 80% in
a few days
ÎAfter Setup reduction or other operational
improvement, speed is not achieved unless
batch size is reduced, a key Lean concept
ÎSix Sigma does not always teach speed
tools and therefore does not always attack
overhead cost and invested capital directly
using available best practices
Example of Lean
without Six Sigma
ÎLacks defined cultural infrastructure -
without CEO engagement, deployment
organization (Champions and BlackBelts),
and focus on customer many lean
implementations fail
ÎLacks the consistency of the DMAIC
philosophy, leading to wide variation in
application of tools & techniques
ÎMost lean efforts lack focus on variation
elimination and simple “account for” the
variability by carrying excess inventory and
resources
ÎLean tools do not intrinsically focus on
bringing a process under control
23
 Lean Six Sigma
Improvement Process Road Map
Define
Activities
• Identify Problem
• Complete Charter
• Develop SIPOC Map
• Map Business Process
• Map Value Stream
• Gather Voice of the
Customer & Voice of the
Business
• Develop CCR’s & CBR’s
• Finalize Project Focus
Tools
• Pareto Charts
• Project Selection Tools
• PIP Management Process
• Value Stream Map
• Various Financial Analysis
• Charter Form
• Stakeholder Analysis
• Communication Plan
• SIPOC Map
• High-Level Process Map
• Non-Value Added Analysis
• VOC and Kano Analysis
• RACI and Quad Charts
Measure
• Identify Key Input, Process and
Output Metrics
• Develop Operational Definitions
• Develop Data Collection Plan
• Validate Measurement System
• Collect Baseline Data
• Determine Process
Performance/Capability
• Validate Business Opportunity
• SIPOC Map
• Operational Definitions
• Data Collection Plan
• Statistical Sampling
• Measurement System Analysis
(MSA), Gage R&R
• Constraint Identification
• Setup Reduction
• Generic Pull
• Kaizen
• TPM
• Control Charts
• Process Capability, Cp & Cpk
Analyze
• Propose Critical X’s
• Prioritize Critical X’s
• Conduct Root Cause
Analysis on Critical X’s
• Validate Critical X’s
• Estimate the Impact of
Each X on Y
• Quantify the Opportunity
• Prioritize Root Causes
• Pareto Charts
• C&E Matrix
• C&E/Fishbone Diagrams
• Brainstorming
• Detailed ‘As-Is’ Process Maps
• Basic Statistical Tools
• SupplyChainAccelerator
Analysis
• Non Value-Added Analysis
• Hypothesis Testing
• FMEA
• Box Plots
• Interaction Plots
• Simple & Multiple Regression
• ANOVA
Improve
• Develop Potential Solutions
• Develop Evaluation Criteria &
Select Best Solutions
• Evaluate Solution for Risk
• Optimize Solution
• Develop ‘To-Be’ Process Map(s)
and High-Level Implementation
Plan
• Develop Pilot Plan & Pilot Solution
• Brainstorming
• Benchmarking
• Process Improvement
Techniques
• Line Balancing
• Process Flow Improvement
• Replenishment Pull
• Purchasing and Sales Strategy
• Poka-Yoke
• FMEA
• Solution Selection Matrix
• ‘To-Be’ Process Maps
• Piloting and Simulation
Control
• Develop SOP’s, Training Plan
& Process Control System
• Implement Process
Changes and Controls
• Monitor & Stabilize Process
• Transition Project to Process
Owner
• Identify Project Replication
Opportunities
• Calculate Financial Benefits
• Control Charts
• Standard Operating
Procedures (SOP’s)
• Training Plan
• Communication Plan
• Implementation Plan
• Visual Process Control
• Process Control Plans
• Project Commissioning
• Project Replication
• Plan-Do-Check-Act Cycle
24
 Team Roles & Responsibilities
Executive Sponsor
Î Creates the vision for Lean Six Sigma within
their area and aligns with business strategy
Î Defines strategic goals and measures
Î Establishes business targets
Î Promotes Lean Six Sigma Tools and
Methodology
Î Helps to remove barriers to success
Î Reviews project and team progress
Quality Leader/Champion
Î Develops preliminary project charter
Î Positions and kicks off improvement project
Î Defines improvement areas, goals and
financial targets
Î Reviews project and team progress
Î Helps gain organizational support for solution
Î Recognizes team and contributing members
Î Identifies process owner of improvement
projects
Î Positions project within business environment
Î Identifies key SME resources for project team
Quality Leader/Champion (cont’d)
Î Ensures access to data from existing
databases
Î Establishes and certifies savings
Î Helps gain organizational support and
removes barriers
Sponsor/Process Owner
Î Participates in tollgates
Î Identifies resources and team members for
project team
Î Ensures sufficient implementation
resources
Î Ensures organization support of solution
deployment
Î Evaluates sufficiency of project “controls”
designed to hold gains upon solution
implementation
Î Owns process, Responsible for sustaining
project gains
Î Removes barriers for the team
25
Team Roles & Responsibilities
Master Black Belt
Î Expert on Lean Six Sigma tools and
concepts
Î Ensures Black Belts are properly applying
the methodology and tools
Î Coaches and mentors Black Belts and
Green Belts
Î Works high-level projects, many of which
are across divisions or business units
Î Assists Executives and Process Owners
with project selection, project management
and Lean Six Sigma deployment and
administration
Î Removes barriers for the team
Green Belt
Î Assists Black Belt as team member
Î Can lead smaller scope DMAIC projects
Î Reports progress to MBB or BB, Process
Owners and Champions
Black Belt
Î Responsible for leading, executing, and
completing Lean Six Sigma DMAIC
projects
Î Teaches team members the Lean Six
Sigma methodology and tools
Î Assists in identifying project opportunities
and refining project details and scope
Î Reports progress to MBB, Process Owners
and Champions
Î Mentors Green Belts and team members
Core Team Member / Yellow Belts
Î Provides “As Is” process knowledge and
understanding
Î Participates in identifying and gathering
data
Î Identifies gaps
Î Helps analyze data and identify solutions
26
What Is a Yellow Belt?
Î An xx Belt is an individual who will use and apply
the Lean Six Sigma methodology to drive local
improvements within their facility, department, or
natural work/group.
Î They will either lead projects or participate as a
team member on Green/Black Belt projects.
Î Becoming a Yellow Belt does not change one’s
job description – rather, it elevates an individual's
technical and problem solving skills.

27
What Are the Roles of a Green Belt ?

Green Belts :
Î Can lead project teams or participate on Black Belt teams
Î Are contributors from various disciplines
Î Are Change Agents for the company
Î Should stimulate management thinking by posing new ways
of doing things, and test assumptions
Î Carry a very high level of peer respect and are clearly seen
as leaders
Î Manage risks, help set direction, and lead the way to
breakthrough improvement

28
Working with Charters

What’s in It for Me?

Î Understand the components of a good
Charter
Î Be able to recognize a well defined Charter

29
What Is a Project Charter?
Î Defines the problem background and its affect on the
broader business
Î Describes why the problem is strategically important to the
business
Î Describes the specific opportunity and goals of the project
Î Puts a value on the opportunity
y Net of the potential effort it will take to implement
y Also describes non-financial benefits
Î It does NOT solve the problem
Î It is a living document, until the project is launched
y Minimal changes can made beyond after the launch, but any
change to the scope has the risk of not having the proper project
team members involved or even a potential ‘false start’

30
What’s Needed on a Charter?
Problem Statement
„ The problem statement should contain the What, Where, When and Extent of the issue.
Describe the “pain.”
„ The opportunity should be related to a key business issue and have strategic relevance.

Goal Statement
„ Quantitatively describe the key objectives of the project, in terms of a metric and a target.

Financial Benefits
„ Describe the financial benefits, net of implementation and potential capital costs.
„ Generally described in terms of Economic Profit (EP)
„ State key assumptions.

Planned Resources
„ Insure the team is adequately staffed with the sufficient skill sets to solve the problem.
„ Insure time commitments are clearly identified.

Project Scope
„ The boundaries of the project.

Risk and Accelerators

„ What key risks to projects success exist.
„ What could be done to accelerate the completion of the project or the benefits.

Project Plan
„ High level estimate of the project timeline
„ Generally, hard dates should be placed only on key milestones, such as Gate Reviews

31
 Lean Six Sigma
Improvement Process Road Map
Define
Activities
• Identify Problem
• Complete Charter
• Develop SIPOC Map
• Map Business Process
• Map Value Stream
• Gather Voice of the
Customer & Voice of the
Business
• Develop CCR’s & CBR’s
• Finalize Project Focus
Tools
• Pareto Charts
• Project Selection Tools
• PIP Management Process
• Value Stream Map
• Various Financial Analysis
• Charter Form
• Stakeholder Analysis
• Communication Plan
• SIPOC Map
• High-Level Process Map
• Non-Value Added Analysis
• VOC and Kano Analysis
• RACI and Quad Charts
Measure
• Identify Key Input, Process and
Output Metrics
• Develop Operational Definitions
• Develop Data Collection Plan
• Validate Measurement System
• Collect Baseline Data
• Determine Process
Performance/Capability
• Validate Business Opportunity
• SIPOC Map
• Operational Definitions
• Data Collection Plan
• Statistical Sampling
• Measurement System Analysis
(MSA), Gage R&R
• Constraint Identification
• Setup Reduction
• Generic Pull
• Kaizen
• TPM
• Control Charts
• Process Capability, Cp & Cpk
Analyze
• Propose Critical X’s
• Prioritize Critical X’s
• Conduct Root Cause
Analysis on Critical X’s
• Validate Critical X’s
• Estimate the Impact of
Each X on Y
• Quantify the Opportunity
• Prioritize Root Causes
• Pareto Charts
• C&E Matrix
• C&E/Fishbone Diagrams
• Brainstorming
• Detailed ‘As-Is’ Process Maps
• Basic Statistical Tools
• SupplyChainAccelerator
Analysis
• Non Value-Added Analysis
• Hypothesis Testing
• FMEA
• Box Plots
• Interaction Plots
• Simple & Multiple Regression
• ANOVA
Improve
• Develop Potential Solutions
• Develop Evaluation Criteria &
Select Best Solutions
• Evaluate Solution for Risk
• Optimize Solution
• Develop ‘To-Be’ Process Map(s)
and High-Level Implementation
Plan
• Develop Pilot Plan & Pilot Solution
• Brainstorming
• Benchmarking
• Process Improvement
Techniques
• Line Balancing
• Process Flow Improvement
• Replenishment Pull
• Purchasing and Sales Strategy
• Poka-Yoke
• FMEA
• Solution Selection Matrix
• ‘To-Be’ Process Maps
• Piloting and Simulation
Control
• Develop SOP’s, Training Plan
& Process Control System
• Implement Process
Changes and Controls
• Monitor & Stabilize Process
• Transition Project to Process
Owner
• Identify Project Replication
Opportunities
• Calculate Financial Benefits
• Control Charts
• Standard Operating
Procedures (SOP’s)
• Training Plan
• Communication Plan
• Implementation Plan
• Visual Process Control
• Process Control Plans
• Project Commissioning
• Project Replication
• Plan-Do-Check-Act Cycle
32
Learning Objectives

Î What are the 7w?

Î How can we identify them?
Î How to eliminate waste?

It is time for Perfect factory simulation

33
Type of Waste
1. Transportation
(moving items from one place to another) Muda Muda
2. Inventory
(items/paperwork/information waiting to be processed)
3. Motion
(excess movement and/or poor ergonomics)
4. Waiting
(delays caused by shortages, approvals, downtime)
5. Over-processing
(adding more value than the customer is paying for)
6. Overproduction
(production ahead of demand)
7. Defects
(rework & scrap – doing the same job more than once)

Another waste is: People (untapped and/or misused resources)

34
 Sources of waste
• Layout (distance) • Functional organization
• Long set-up times • Excessive controls
• Incapable processes • No back-up/cross-training
• Poor maintenance • Unbalanced workload
• Poor work methods • No decision rules
• Lack of training • No visual control
• Lack of adherence • Lack of workplace organization
• Poor supervisory skills • Supplier quality
• Ineffective scheduling • Inconsistent supply of detail parts
• Inconsistent performance measures
Waste is so often in front of us that we don’t always see it.
We must learn to see and think systemically .. and from a new perspective.
The perspective of the “thing” going through the process.
35
Learning Objectives

Î What is 5S?
Î How 5S relates to Lean
Î Why perform 5S?
Î How to perform 5S
Î The benefits from 5S

36
What’s in It for Me?

Î Understand the value of a 5S project

Î Be able to visualize a 5S implementation in
your facility/process

37
A Neat, Clean Office Environment . . .

Î Has Higher Productivity

Î Produces Fewer Defects and Lost Information
Î Meets Deadlines Better
Î Is an Easier Place in Which to Work

38
5S Explained
Î 5S is a process and method for creating and
maintaining an organized, clean, and high
performance workplace
Î 5S enables anyone to distinguish between normal
and abnormal conditions at a glance
Î 5S is the foundation for continuous improvement,
zero defects, cost reduction, and a more
productive work space
Î 5S is a systematic way to improve the workplace,
our processes and our products through
employee involvement

39
5S Overview

5S is a process and method for creating and maintaining an

organized, clean, safe, and high performance workplace.
ÎSort
y Clearly distinguish needed items from unneeded items and eliminate
the latter
ÎSet In Order (also known as Simplify)
y Keep needed items in the correct place to allow for easy and
immediate retrieval
ÎShine
y Keep the work space orderly and clean
ÎStandardize
y Standardized cleanup. This is the condition we support when we
maintain the first three pillars
ÎSustain (also known as Self-Discipline)
y Make a habit of maintaining established procedures

40
5S Training Program – Main Menu

Sort

Set in Order

Shine

Standardize

Sustain

41
 Case Study: Insurance Company IT/IS
Department
ÎProblem Statement: Insurance company IT department faced rising
backlog of repair requests and new computer setup
ÎRoot Cause: Lack of organization, cluttered work space
ÎSolution: 5S for organization, ease of finding supplies, productivity
improvement, space reduction.

IT work area:
• Multiple computer setups
in process
• Unnecessary peripherals
(speakers, ZIP drive)
• Lack of necessary
peripherals
(printer, monitor)
• Lack of pertinent supplies
(Blank CDs, etc.)
• Overall clutter
42
Definition of Sort

Î Sort means that you remove all items from

the workplace that are not needed for
current tasks.
Î It does not mean that you only remove the
items that you know you may never need.
Î It does not mean that you simply arrange
things in a neater fashion.
Î If you sort, you only leave the bare
essentials. “When in doubt, throw it out!”

43
Implementing Sort
Î Identify potential unneeded items
y Is this item needed?
y If it is needed, is it needed in this quantity?
y If it is needed, does it need to be located here?
Î Place “Red-Tags” on those items that are not
needed
Î Evaluate and deal with unneeded items
y Move unneeded items to a red tag holding area for
a period of time – this area must be created.
y Dispose of immediately – Sell, Relocate, Throw
Away.

44
Red Tag Example
RED TAG
Red Tag No.
Date Tagged
Department
1 Old Files
2 Office Machines
Category 3 Paperwork
4 Outdated Computers
5 Other (Explain)

Item Description

Qty.

Total Value $
Date
a Moved to Red Tag Location
Disposition/
Evaluation
b Disposed of
c Moved to More Suitable Location
d Left exactly where it was

45
Example of Sort:
IT Department Case Study

All unnecessary items red-tagged (including excess computers in process):

46
Definition of Set in Order

Î Set in order means that you arrange the

items that are needed in the area and
identify them or label them so that anyone
can find them or put them away.
Î The key word is “anyone”.

47
Implementing Set in Order
Î Draw a 5-S map showing the best location for files, office
equipment, and materials based on frequency of use.
y Store items together if they are used together and store them in the
sequence they are used.
y Store infrequently used items away from the point of use
Î Make a place for everything using:
y Borders – Sets boundaries, areas
y Home Addresses – Tells what item belongs inside the border
y Labels – Tells what the item is and where it belongs
Î Remember to use the Principles of Motion Economy
y Keep body motion to a minimum
y Keeps frequently used materials close at hand
y Arranges material and office equipment in order of use
y Work at the proper ergonomic height: typically 37”- 44”
y Locate materials so they are easy to pickup

48
Step #2 Set in Order:
Border Example

ÎBorder: A line around an item to identify its

area/boundaries.
y Traffic lanes
y Stationary items
y Mobile items
y Walkways
y Surface items
ÎLabel: A sign at the item’s home.
It should include:
y Item name
y Location
y Picture/silhouette of item (opt.)
ÎHome Address: A sign or tab at the item’s home.
It should include:
y Item name
y Location
y Picture/silhouette of item (opt.) 49
Example of Set in Order:
IT Department Case Study

‹ Only necessary peripherals and

supplies at hand
‹ Only one computer setup in
process

‹ Necessary supplies binned and

labeled by type

50
Definition of Shine

Î Shine emphasizes removing the dirt,

grime, and dust from the work area.
Î This is a program of keeping the work area
swept and clean of debris.

51
Implementing Shine

Î Determine the shine targets – what are we

going to clean?
Î Set a schedule and assign ownership of
tasks to individuals.
Î Create procedures for continued daily
shine processes.
Î Set periodic equipment inspection and
maintenance targets.

52
Example of Shine:
IT Department Case Study Assignments

Î Cleaning Schedule
y Responsibilities in detail, which areas, on which day

IT Dept Houskeeping Assignments

Week Ending Friday ___/___/___

Task Assigned To Mon Tue Wed Thur Fri Comments

IT Request Inbox Daily
Computers in Setup Daily
Suppy Table Weekly
Repairs/Swaps Weekly
Swap Cabinet Weekly
Consumables: Daily
Paper for Printer Daily
Printer Cartridge Daily
Blank CDs Daily
Floppy Disks Daily
Office Furniture Weekly
Priority Board Daily
Archive (Equip List) Daily

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Definition of Standardize

Î Creating a consistent way of implementing

the tasks that are performed on a daily
basis including “Sort,” “Set in Order,” and
“Shine”.
Î “Do the right things the right way, every
time!”

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Implementing Standardize
Î Create 5S Agreements
y Document the procedures and guidelines for sorting, simplifying
and organizing
• Visual controls guidelines
• Item quantity requirements
y Document the schedule in which they are to be completed and
reviewed
• Housekeeping standards
• Workplace arrangement methods
Î Document Work Processes
y Document all steps in each process at the workplace
y Document operating procedures and directives
y Document all job aids (user guides, reference materials, trouble
shooting guides)

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Example of Standardize

‹ IT Department Standard Process Handbook

IT Department
Standard Process Handbook
Table of Contents
1. IT Tech Job Description
2. 5-S Procedures
o l
3. Standard Computer Setup l To
a
4. Special Request Setup isu
V
of
5. Software Standards e
pl
6. Supply Procedures am
Ex
7. Repair (Swap) Procedures
8. Shipping Kit Instructions

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Definition of Sustain

Î Sustain means that the 5S program has a

discipline that ensures it’s continued
success.
Î Sustain means that the 5S mentality is
ingrained in everyday work life and
procedures.
Î Don’t let it become another “flavor of the
day”.

57
Implementing Sustain
Î Create 5S audit form and results presentation tool
y Make it a structured tool to be used facility-wide (audit form, “radar”
chart)
Î Establish periodic audit cycle
y Minimum of weekly for area supervision, monthly for management
y Participation of Management in reviewing and using Sustain
Checklists is Critical for success of 5S
Î Establish checklist for visitors to review
y Remember, with 5S ANYONE should be able to discern between
normal and abnormal conditions
Î Celebrate improvement and schedule time to improve
y Keep everyone aware of 5S and its benefits by giving recognition
where it is due
y Make time each week to brainstorm and implement improvement
suggestions

58
Example of Standardize:
IT Department Case Study 5S Audit Form

A. Sort 0 1 2 3 4 5
1> Are there unnecessary items (peripherals, supplies) on the setup desk x
2> Are there scrap supplies in the supply bins x
3> Are there old computers (off lease) in the swap cabinet x
4> Is there more than necessary furniture in the office x
Score 0 0 0 0 0 20

B. Set in Order 0 1 2 3 4 5
5> Is the supply table arranged per drawing/layout x
6> Is setup desk arranged per layout (incl. a single computer) x
7> Is swap cabinet arranged per layout x
8> Can ANYONE determine normal from abnormal x
Score 0 0 0 0 0 20

C. Shine 0 1 2 3 4 5
9> Is the desk clean and maintained or is there clutter (unnecessary supplies, etc.) x
10> Is Supply Table/Bins clean and organized x
11> Has the shine check sheet been pdated (assignments been worked) x
12> Is dust filter clean x
Score 0 0 0 0 0 20

D. Standardize 0 1 2 3 4 5
13> Is the IT Dept Process Handbook in plain view x
14> Is the IT Dept Process Handbook updated x
15> Are all supply bin, swap cabinet, and software shelf labels in tact x
16> Have all setups gone accordingly to instructions this week x
Score 0 0 0 0 0 20

E. Sustain score 0 1 2 3 4 5
17> Was the last audit less than two weeks ago x
18> Was the last departmental audit less than one month ago x
19> Is the 5S board up to date (pics, metrics, shine, etc.) x
20> Has anyone complemented the area on its cleanliness & organization x
Score 0 0 0 0 0 20

Area:
Auditor(s): Section A B C D E
Date: Sub-total Score 20 20 20 20 20 59
Example of 5S:
IT Department Case Study

ÎIT Department 5S Kaizen Results:

y 75% reduction in New System Setup cycle time (2 days- 4 hours)
y 50% improvement in productivity (reduced headcount by 1 person by
improving ability to “find” items – reduction of NVA)
y $12,500 positive cost variance (“found” 3 systems + multiple peripherals
previously written off as lost or stolen)
y More professional workplace and attitude

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How Is 5S Done?

Î 5S is accomplished by following all of the

steps.

Î Don’t Skip A Step!

Î 5S is a team oriented process between the

members of the work area.

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The Benefits of 5S
Î Improved safety
Î A clean, orderly workplace
Î Improved efficiency
Î Increased employee morale
Î Standardized work methods
Î Remember – A Neat and Clean Environment:
y Has Higher Productivity
y Produces Fewer Problems and Lost Information
y Meets Deadlines Better
y Is a Much Better Place to Work!

Can we do that now ?

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Turnaround

Î Business Simulation
Part 2

63
Closing session

Î Did we reach our objectives?

Î What did you learnt?
Î What is still to learn?
Î How do you intend to do it?
Î What help do you need?

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