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Advanced Lean
Advanced Lean Module
LEAN: Delivering value to
Customers with shortest turn
around time
Advanced Lean
Agenda
Lean Methodology
Lean Toolkit
Lean Deployment
Lean Resources
Advanced Lean
Lean History
Lean Explained
Lean ene!ts
Lean "sage
Lean Methodology
Lean Deployment
Lean Resources
Advanced Lean
Some Key Lean Concepts developed at Toyota
$ingle %iece &low
%ull %roduction
T#'T Time %roduction
#utonomation
uilt()n *uality
$topping at
#+normalities
Level Loading
$e,uencing
$ta+ility
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Toyota
#$oduction System
%eople
%eople
%eople
Lean !isto$y
TO-OT#
Recap
Advanced Lean
A principle driven, tool based philosophy that focuses on
eliminating waste so that all activities/steps add value
from the customers perspective.
Imagine Office Processes with:
Lean Thinking is all about continuous waste elimination !
Lean T%inking
Higher Customer Satisfaction
Shorter Lead Time
Higher le!ibilit"
Higher #ualit"
Lower Costs
Higher $m%lo"ee Satisfaction
&
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Recap
Advanced Lean
Lean concepts apply ac$oss all p$ocesses and
indust$ies
A strategy, philosophy, process and leadership approach for
operating in a superior way. Results include:
Increased quality
%ost
(efects
)ead time
Inventory
#pace
*aste+
&roductivity
%ustomer satisfaction
&ro"t
%ustomer responsiveness
%apacity
,uality
%ash -ow
.n time delivery
.ork
Time
/value
add0
%ycle /ime
$efore
After
.ait Time
/non
value
add0
1ost21haos
$ame work
completed in
less time
Lean )ene/ts
1ycle time
Recap
Advanced Lean
Apply Any Tool 1$om you$ 2uality Tool )o(
Lean 3sage
Lean vs. Si( Sigma
%ommunicative
%entered on
#ta'le, Repeata'le
&rocess
#utomation
0any /ools for
(riving %hange
0i1ed 0odel &lan,
2an $an, 3isual
0anagement
O+servation
and )ntuition
$ased
Analysis . . . &,,
&R, /A2/ /ime
#tandard
*or! 4
/arget
#heets 3 3 3
#ssumes
(ata is 5ood
4alue $tream
Mapping . . .
$oundaryless 4
0ulti6
5enerational
7ew /ools or
(irection
7ew /ools to
%reate %hange
in %ritical 89s
Data (riven
Analysis
1on!rms
(ata ,uality
/rue 4O1 is
&owerful
Si(
Sigma
Lean
4e/ne 5easu$e Analy6e 7mp$ove Cont$ol
Lean Si( Sigma
5et%odology
St$engt%s
Recap
Advanced Lean
Lean 0o$ 2uick 0i(es.Si( Sigma 0o$ Comple(
#$ocesses ++
$ix $igma
%ro5ect
Hy+rid #.O
Lean 3sage
#verage ~ 6
Months
#verage ~ 6
Months
Time
E
7
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r
t
Time
E
7
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r
t
Time
E
7
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r
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#verage ~ 89
Months
&%en do 7 use Lean'
Recap
Advanced Lean
Lean: St$engt%ens 8E9s "ou$ney to E(cellence
Lean vs. Si( Sigma'
Lean 3sage
Lean Simple o$ &ing to ,ing )$eadt%
Si( Sigma Comple( and 0ocused 4ept%
Lean
Success
0acto$s:
7mpact
8E
;alues
:
:
)ean #i1 #igma
Identi"es pro'lems
in the -ow
Improves the capa'ility
of steps that do add
value
elps identify steps that don9t
add value and provides tools to
eliminate them
)ean
Improving the capa'ility
can eliminate additional
steps
#i1 #igma:)ean
Energi;ing
Empowering
Team work<
oundary less 2 Open mindset
%assion =or improvement
)ntuition 2 #ction
1ustomer =ocus
Recap
Advanced Lean
&e Need Lean to <e Leane$ 2uicklyLet us sta$t it++
Principle
Ne, ,ays to t%ink a<out p$o<lems
Ne, p$o<lem solving tools and concepts
An imp$ovement met%odology 1ocused on
action
Lean 3sage
So* ,%y do 7 need Lean'
Toolkit
Process
>ust Do )t??
Solutions
Causes
Known
Unknown
Simple Complex
Lean??
#sk an
Expert??
$ix $igma
Recap
Advanced Lean
&%e$e a$e ,e going
Issues
In+entor"
,aiting
-efects
.
/o flow in the +alue
stream0
Processes full of waste
Old situation
Tool
1alue Stream &a%%ing2
other lean tools2 etc0
Results
3eduction of waste
Learned to 4see the flow5
Cou%le of im%ro+ements
Remaining Issues
/o real continuous flow
Still significant amount of
waste0
(asic tools
Tool
Creating Continuous
Flow
Pull production
Challenge
&ore waste reduction
3eal continuous flow
le!ible workforce
Less +ariance
Less waste
6d+anced tools
Advanced Lean
Time 2 1ultural Maturity
T
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Lean Toolkit
Applying t%e $ig%t tools at t%e $ig%t stage
@$
M"D#
Mistake proo!ng
)ntro to 4alue $tream
Mapping
4isual Management
Expose the
.aste
Reduce
4aria+ility
1ontrol the
%rocess
4alue $tream Mapping
$tandardi;ed .ork
)ntro to 1ontinuous &low
)ntro to %ull %roduction
Level 1
Level 2
Recap
Advanced Lean
App$op$iate Tools and Tec%ni=ues a$e to <e used
depending on t%e need
Lean Tools >ve$vie,
A num<e$ o1 Lean Tools and Tec%ni=ues a$e availa<le
Tools and
Tec%ni=ues
Actions
$ring .rgani;ation
4 %leanliness to
wor! area
<# 7ramewor!
=nderstand
3alue
3alue #tream 0apping
Institute continuous
improvement philosophy
2ai;en >vents
Implement pull6
'ased -ow
2an'an, ?ust6in /ime
Recon"gure wor!
areas
=6#haped %ells
)ene/ts
Reali6ed
Recap
Advanced Lean
Lean Tools 4esc$iption
Exposing the .aste ~ Recap..
<#
@ *astes
0ista!e proo"ng
3isual 0anagement
Recap
Advanced Lean
7mplementing t%e ?S is o1ten t%e /$st step in Lean
T$ans1o$mation
?S @ A 0$ame,o$k to c$eate and maintain you$
,o$kplace
A. S: S>RT B>$gani6ationC
4istinguis% <et,een ,%at is and is not
needed
D. S: SET 7N >R4ER B>$de$linessC
A place 1o$ eve$yt%ing and eve$yt%ing in its place
E. S: S!7NE BCleanlinessC
Cleaning and looking 1o$ ,ays to keep it clean
F. S: STAN4AR47GE BAd%e$enceC
Clea$ly de/ne Tasks and #$ocedu$es
?. S: S3STA7N:SHSTE57GE BSel14isciplineC
Stick to t%e $ules* sc$upulously
?S
Recap
Advanced Lean
At t%e end* eve$yt%ing $esults in Cost++
534A @ Lean is a ,ay to continuously eliminate ,aste
>1amples /he #even (eadly *astes
Motion
De=ec
ts
)nventor
y
Transportati
on
Overproducti
on
.aiting
%rocessing
#$ocess
%roduct
%eople
Incorrect )ayouts of oAce, factory, etc.
)ac! of &ro1imity .f 0achines
.B6line Resources
*atching 0achines *or!
)ong #et6ups and )ead /imes
)arge $atches and Inventory
&lanning 7ull =tili;ation of 0achines and )a'or
&roducing 0ore 5oods than 0ar!ed (emand
&oor 0achine 0aintenance
=nnecessary &rocessing #teps
)onger )ead /imes
)ong (elays for /rou'leshooting
%ostly Rewor!
(issatis"ed (ownstream %ustomers
igh #toc!s of Raw 0aterial, *I&, 4 7inished 5oods
Additional #pace Requirements
%lutter
=nnecessary 0ovement
>1tra andling
C0oving InventoryD
5uda I J &astes
Recap
Advanced Lean
5istake #$oo/ng >ve$vie,
A technique for eliminating errors
0a!ing it impossi'le to ma!e mista!es
It is good to do it right the first time; it is even better to mae it impossible
to do it wrong the first time!
Recap
Elimination
7 >liminate the possi'ility of error
Replacement
7 #u'stitute a more relia'le process
&acilitation
7 0a!e wor! simpler to perform
Detection
7 (etect the error at the defect
source
Mitigation
7 0inimi;e the eBect GOOD
BEST
BETTER
"se the highest level
possi+le =or the
application3
"se the highest level
possi+le =or the
application3
Advanced Lean
.hy 4isual Management A3
(emonstrate how we manage our processes A1onsistent
1ommunication
>1cite customers: sta!eholders wal!ing the -oor A 4isual
Management
/ransparent view of &erformance A $hared Ownership
>scalate a'normalitiesE *uicker Resolution
(ecision ma!ing F wor!ing level A Empowerment
#howcase #uccesses A 1reate a sense o= %ride
;isual 5anagement >ve$vie,
Seeing is )elieving
Recap
Advanced Lean
Lean 5et%odology
Lean 4eployment
Lean Resou$ces
Advanced Lean
Lean Ente$p$ise: 5a(imi6ing ;alue &ing to &ing
0ive Lean #$inciples
Lean Ente$p$ise
Raw
Materials
Tier B
$uppliers
Tier 8
$uppliers
L"#$ %FFIC"
1ustomer
Ceneral
Electric
L"#$ "$T"RPRI&"
Advanced Lean
Lean: 0undamentally C%ange %o, ,e do <usiness
0ive Lean #$inciples
Lean T%inking
&rovide perfect value to the
customer through a perfect
value creation process with
;ero waste in:
(esign (concept to
customer)
priceG
qualityG
relia'le deliveryG
@ types of waste
'alue
Pure (aste
Incidental
(or
'alue
Pure (aste
Advanced Lean
5apping t%e ;S @ See t%e ,%ole and imp$ove t%e
system
M&%eneve$ t%e$e is a p$oduct o$ se$vice 1o$ a custome$*
t%e$e is a value st$eam. T%e c%allenge lies in seeing it.N
B&omack* Lea$ning To SeeC
0ive Lean #$inciples
2. Map the
alue
Stream
A system of cascading
production and delivery
instructions in which nothing
is done 'y the upstream
supplier until the downstream
customer signals the need
supplier customer
.ne
more
please+
.!ay
Advanced Lean
Continuous 7mp$ovement neve$ stops
0ive Lean #$inciples
?. &o$k to #e$1ection
A continual cycle o1 p$ocess imp$ovements
#tandardi;ed *or!
B
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Current Improved
;H
FH
MH
:?H
:AH
:NH
?:H
?8H
Paper 0ai1en
$limination: C and L
Time reduction: 6 and
First analy#e the Total $or% "ontent, and design improvement on paper &
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6
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B
9
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.then ha+e a critical
look on the work
elements and design
im%ro+ement on
%a%er 'Im%ro+ed* to
reduce wastes0
irst understand all
the work elements
that make the total
work 'Current*.
6%%roach of immediatel" lea+ing
out wasteful ste%s0 Oou eliminate
some waste on %a%er before
im%lementation0
Pa%er 9ai@en
Total ,ork Content for one item
in the cell are acti+ities 6)90
Advanced Lean
>pe$ato$ )alance C%a$t
;H
FH
MH
:?H
:AH
H
Takt Time
::H sec0
6
(
-
$
B
9
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: ?
6
(
-
$
B
9
I
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: ? ;
Takt Time
N? sec0
:NH
?:H
Takt Time
?HA sec0
O%erator (alance Chart 'O(C*
Picture of distribution of work among
o%erators in relation to Takt Time0
& then connect to Ta%t T'me.
6
(
-
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B
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:
Sim%le
1isual
#uantati+e
/o guesswork
P O%erator
Advanced Lean
7s you$ System suita<le 1o$ Qo,'
Is "our s"stem able to handle the Takt TimeC
$ffecti+e S"stem C"cle Time Q 'astest Takt Time R ?H)?AI*
luctuation in demand
$=ui%ment is often less fle!ible than %eo%le
Should "ou ha+e one integrated s"stem2 or different small s"stems connected b" a sim%le workflow toolC
Is it working in batch or
single %ieceC
$as" to re%lace '%rice*C
$as" to maintainC
$as" to useC
Is it o%timal design to
su%%ort continuous flowC
If a S"stem 'or &achine* is
%art of Continuous low
Cell2 "ou should make sure
it is a%%ro%riate enough for
handling the low0
6lso ask the follow =uestions about "our S"stem:
1aluableC ) -oes the S"stem add +alueC
Ca%ableC ) -oes the S"stem create no defectsC
6+ailableC ) Is the S"stem alwa"s a+ailable when neededC
6de=uateC ) Is the S"stem not a bottleneck for the flowC
le!ibleC ) Is the S"stem fle!ible to adKust for changesC
Advanced Lean
6re "our items o%timal designed for creating continuous flowC
6re there an" changes "ou can make on the item2 so it takes less time
for the o%erator to %rocessC
B
H
: ?
6
(
-
$
B
H
: ?
B
H
6
(
-
$
FH
GA
22 Takt Time
,hat is the o%timal wa" of distribution the workC
There are a lot of wa"
to distribute the work
among o%erators2
here two e!am%les:
How will "ou design
that in "our %h"sical or
digital la"out0
Out
Incoming
orms
Advanced Lean
Im%lementing the low consists of four stages:
:0 Initial Process -esign
?0 &ock)u%
;0 -ebugging '!*
80 Sustaining the low
6+oid making things %ermanent2 until stage 82
because it is a real learning)b")doing im%lementation0
7mplementation Stages
Pa%er 9ai@en E Initial
Process -esign
-ebugging &ock)u% Sustaining
P
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s
s
a
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s
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t
S)? da"s ?)8 weeks
Advanced Lean
7nt$oduction to #ull #$oduction
L E # D
> N / > R & R I # >
C
E
D
%
#
1
T
4
)
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)
O
D
Advanced Lean
A system in which each process ta!es what it needs from
the preceding process when it needs it and in the e1act
amount needed.
>mploys a variety of visual signaling devices and uses
the concept of 2an'an
?ust6in6time focused
%ontrols production system and limits inventory
#impli"es or eliminates documentation
1ustomer pulls the Uow
&%at 7s a #ull System '
Advanced Lean
6 s"stem in which %roducts are %ushed through %roduction or
distribution2 based on a schedule0
T3ead" or not2 here I come!U
Products are %roduced onl" when scheduled
6ssumes recei+ing work centers will be read" for the %roducts
when the" arri+e
Out%ut continues without regard to actual downstream needs
3es%onse is dela"ed and the s"stem disru%ted due to short)
inter+al changes
&%at 7s a #us% System '
Advanced Lean
Planning
Push: ,ork is com%leted based on a %lanning s"stem
Pull: ,ork is com%leted based on authori@ation from
downstream users
,ork 6uthori@ation
Push: ,ork is immediatel" sent to downstream user u%on
com%letion
Pull: ,ork is not forwarded to ne!t o%eration until re=uested
4iSe$ences )et,een #us% T #ull
Advanced Lean
6 con+entional s"stem2 based on a schedule2 generates
unneeded in+entor" 'o+er%roduction* because true
customer needs ne+er fit %erfectl" with schedule0 or the
same reason2 it can also generate shortages0
SHO3T6B$
Schedule :
Customer need :
In+entor" :
SHO3T6B$
&%y 3se #ull '
Pull ensures best inventor+ control with high customer satisfaction
Advanced Lean
&%y 3se #ull '
!#OCE22 4"
OieldP?<h
!#OCE22 4+
OieldP:<h
!#OCE22 45
OieldP?<h
R#( 3#T"RI#L (%R0 I$ PR%C"&& FI$I&4"5 6%%5&
Con+entional 4Push5 s"stem :
*readown
(IP - .
!#OCE22 4"
OieldP?<h
!#OCE22 4+
OieldP:<h
!#OCE22 45
OieldP?<h
R#( 3#T"RI#L (%R0 I$ PR%C"&& FI$I&4"5 6%%5&
Pull S"stem :
&tandard (IP - 7
*readown
Pull improves wor in process management
Advanced Lean
Standardi@ed a%%lication
1isibilit"
Sim%licit"
-isci%line
1ersatilit"<le!ibilit"
#ull C%a$acte$istics
Advanced Lean
"
st
6E7E6 28!!6IE#
E9( C82TOME#
+
nd
6E7E6
28!!6IE#
!#OCE22 45 !#OCE22 4+ !#OCE22 4"
+
nd
6E7E6
28!!6IE#
+
nd
6E7E6
28!!6IE#
Material
+n!or"ation
-uper"ar'et
Legend
#
-e1uence ) ,i"in;
#
8
8
8 4 3 /
$
%
#0
#0
#0 0 9
!o, does #ull ,o$k '
Advanced Lean
!o, does #ull ,o$k '
&in<&a! is the most often used methodolog" to manage
su%ermarket<buffer in+entor" le+el0
&in7
&a!7
Pull
Pull
Pull
3e%lenish
High %erformance com%anies use 9anban to
communicate needs to %receding %rocess0
Advanced Lean
Reduction in va$iation e(pe$ienced <y t%e custome$
eiOun!a is the foundation of the /oyota &roduction system, and is the
process of leveling and sequencing an operation.
/here are three main elements of eiOun!aE
I. )eveling: .verall leveling of a process to reduce variation in output
J. #equencing: 0anaging the order in which wor! is processed (0i1ed
&roduction)
K. #ta'ility or #tandard *or!: Reduce process variation
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Le+eling
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#$oduction System
!ei"unka
Advanced Lean
Kan<ans a$e used to signal t%e supplying p$ocess
t%at mo$e mate$ial is needed
A Kan!an is a signal used !" a downstream operation
to re#uest a material replenishment
3sing 3sing
#$ocess #$ocess
3sing 3sing
#$ocess #$ocess
Supplying Supplying
#$ocess #$ocess
Supplying Supplying
#$ocess #$ocess
'an+an
Re,uired
%art2 material
ins
La+els
1ards
1arts
Kan<an
Advanced Lean
0i( t%e p$ocess Bp$o<lemC <e1o$e moving on
?ido!a allows machines:processes to operate autonomously 'y shutting
down automatically if an a'normality occurs. /his prevents defective
products from passing to the ne1t process.
/here are two main elements of ?ido!aE
83 #utonomation: Automation with human intelligence L operate
autonomously
B3 $top at Every #+normality
A'normal
J
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Toyota
#$oduction System
Jidoka
Advanced Lean
Lean >ve$vie,
Lean 5et%odology
Lean Toolkit
Lean 4eployment
Lean 8lossa$y
Lean Resou$ces
Advanced Lean
4on9t &ait++ @ M>ppo$tunities multiply as t%ey a$e
sei6edN
Lean
4eployment
Lean 4eployment Roadmap
I. #et the strategy
J. 7ind a change agent (how a'out youG)
K. 5et the !nowledge
S. #ei;e or create a crisis to motivate change
<. 0ap your value streams, creating a future state plan
M. >liminate waste 'y e1ecuting the plan
@. >1pand the scope to other areas
Advanced Lean
MT%e So1t StuS is t%e !a$d StuSN
Lean 4eployment
7nvestment Re=ui$ed
Technical
789
Cultural
:;9
"2pense
;9
Advanced Lean
M4on9t <e a1$aid to give up t%e good 1o$ t%e g$eat+N
Lean 4eployment
Key 1acto$s 1o$ Success
I. )eadership commitment
J. Ramp up with results
K. %onsistency of purpose
S. 2nowledge:/raining
<. *ide spread %ommunication
M. %hange management
@. /eam responsi'ility
W. 0etrics
V. Reward and recognition
IQ. Roadmap for >1ecution ((iscipline)
II. $alance 'etween short term and long term
IJ. $est practice sharing (%ommunity)
IK. 3alue #tream 0anagement
Advanced Lean
Kai6en - Action &o$k >ut BA&>C at 8E
Kai6en: C%ange 1o$ t%e <ette$
%ontinuous incremental improvement
%ontinuous slow
(ata driven: visual and quantitative
$ias for action
(oes not cost money
A'solute intolerance for waste
Lean 4eployment
Advanced Lean
Need )ot% Kai6en and Kaikaku++
Kaikaku
Time
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;ision
Kai6en - Evolutiona$y C%ange
Kaikaku - Revolutiona$y C%ange
Lean 4eployment
Advanced Lean
Responsi<ilities clea$ly dema$cated
Lean 4eployment
4alue
4alue
$treams
%ull &low %er=ection
$enio
r
Mgmt
3
&ron
t
Line
s
&LO. Lean
/&low and %ull )mprovement0
%RO1E$$ Lean
/Elimination o= .aste0
&ocus
7low )ean
7ocuses esta'lishing lean wor!-ow
Lean >ve$vie,
Lean 5et%odology
Lean Toolkit
Lean 4eployment
Lean Resou$ces
Agenda
Advanced Lean
Lean Resou$ces
7or all references on Lean training material$ Lean %nitiatives$ &enpact 'ro(ect
examples, visit the )ean %ommunity on the 5enpact #upport %entral
http:::gecishome.gecis.ge.com:portal:pageGYpageid
XKK,W@JKQS4YdadXportal4YschemaX&.R/A)
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Advanced Lean
Lean Re,a$ds T Recognitions
(ot any )ean
'mprovements&..
All approved
Team + 'ndividual
ideas win "heers
Advanced Lean
Closing &o$ds
5any unidenti/ed p$o<lem a$eas e(ists
,it%in you$ p$ocesses
Lean met%odology %elps e(posing t%ose
p$o<lem a$eas I
C$eating oppo$tunity 1o$ imp$ovement
7mplementation is t%e key