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Advanced Lean Module

Advanced Lean

LEAN: Delivering value to


Customers with shortest turn
around time
Advanced Lean
Agenda

• Lean Overview ~ Recap…..

• Lean Methodology

• Lean Toolkit

• Lean Deployment

• Lean Resources

Advanced Lean
• Lean Overview ~ Recap….
 Lean History
 Lean Explained
 Lean Benefits
 Lean Usage
 Lean Basic Toolkit

• Lean Methodology

• Lean Advanced Toolkit

• Lean Deployment

• Lean Resources

Advanced Lean
Lean History Recap…

TOYOTA

Toyota
Production System

Just-in-Time
• Single Piece Flow
People

Jidoka
• Autonomation
• Pull Production People • Built-In Quality
• TAKT Time Production • Stopping at
People Abnormalities

Heijunka
• Level Loading
• Sequencing
• Stability

Some Key Lean Concepts developed at Toyota

Advanced Lean
Lean Thinking Recap…

A principle driven, tool based philosophy that focuses on


eliminating waste so that all activities/steps add value
from the customers perspective.

Lean Thinking is all about continuous waste elimination !

Imagine Office Processes with:


• Higher Customer Satisfaction
) O f f ice
• Shorter Lead Time a ck-
• Higher Flexibility a k i ng ( B
v a n tage
M g i c ad
te
• Higher Quality a stra
• Lower Costs
• Higher Employee Satisfaction

Advanced Lean
Lean Explained Recap…

What is Lean?
A strategy, philosophy, process and leadership approach for
operating in a superior way. Results include:
 Reduced cycle times (product development and production)

 Increased quality

 Reduced costs and inventory

 Increased capacity potential

 Improved customer service

 High levels of worker involvement, ownership and commitment

 Improved financial returns


Lean concepts apply across all processes and
industries

Advanced Lean
Lean Explained Recap…

The conventional way: Price = cost


+Profit
Increase profit by Price Increase

Price to sell
Bigger profit
Some profit

Cost to produce

But, may lose customers!

Advanced Lean
Lean Explained Recap…

The new way: Price - cost =Profit


Increase profit by Cost Reduction

Price to sell

Some profit Bigger profit


Cost to produce

Advanced Lean
Lean Benefits Recap…

Cycle Time
Wait Time
(non
value Before
add)
Work
Time After
(value Same work
add)
completed in
Productivity less time
Cost
Customer satisfaction Cost/Chaos
Defects
Profit
Lead time
Customer responsiveness
Inventory
Capacity
Space
Quality
Waste!
Cash flow
Cycle time
On time delivery
Relentless Focus on Reducing non value adding
activities
Advanced Lean
Lean Usage Recap…

Lean vs. Six Sigma

Methodology
Strengths

Define Measure Analyze Improve Control


Lean Six Sigma

Six • True VOC is • Confirms • Data Driven • Few Tools to • Few Tools or
Sigma Powerful Data Quality Analysis Create Change Direction
in Critical X’s

Lean • Value Stream • Standard • Observation • Many Tools for • Communicative


Mapping . . . Work & and Intuition Driving Change
• Centered on
Boundaryless & Target Based Analysis
• Mixed Model Plan, Stable, Repeatable
Multi- Sheets . . . . . . PQ, PR,
Kan Ban, Visual Process
Generational Assumes TAKT Time
Management
Data is Good • Automation

Apply Any Tool from your Quality Tool Box

Advanced Lean
Lean Usage Recap…

When do I use Lean?

Six Sigma
Hybrid AWO
Project
Effort

Effort

Effort
Time Time Time

Average ~ 4 Average ~ 4 Average ~ 1½


Months Months Months
Lean For Quick Fixes….Six Sigma For Complex
Processes !!

Advanced Lean
Lean Usage Recap…

Lean vs. Six Sigma?


Lean Simple or Wing to wing Breadth
Six Sigma Complex and Focused Depth
Lean Lean Six Sigma Six Sigma/Lean
Helps identify steps that don’t Identifies problems Improves the capability Improving the capability
add value and provides tools to in the flow of steps that do add can eliminate additional
eliminate them value steps

X Energizing
Empowering
X
Lean
Team work,
Success Boundary less / Open mindset GE
Passion for improvement
Factors/ Intuition / Action Values
Impact Customer focus

Lean: Strengthens GE’s journey to Excellence


Advanced Lean
Lean Usage Recap…

So, why do I need Lean?


Principle New ways to think about problems

Toolkit
New problem solving tools and concepts

Process
An improvement methodology focused on
action
Solutions
Simple Complex

Known Just Do It!! Lean!!


Causes
Ask an
Unknown Six Sigma
Expert!!

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

Advanced Lean
Where are we going…
Advanced tools
Tool
• Creating Continuous
Flow
• Pull production
Basic tools
Tool Challenge
• Value Stream Mapping, • More waste reduction
other lean tools, etc. • Real continuous flow
• Flexible workforce
Old situation Results • Less variance
• Reduction of waste • Less waste
Issues • Learned to ‘see the flow’
• Inventory
• Couple of improvements
• Waiting
• Defects
•… Remaining Issues
• No real continuous flow
• Still significant amount of
No flow in the value
waste.
stream.

Processes full of waste

Advanced Lean
Lean Toolkit Recap…

Level 1 Level 2
Reduce
Variability
Control the
Process
• Value Stream Mapping
Sophistication

Expose the • Standardized Work


Waste • Intro to Continuous Flow
• 5S • Intro to Pull Production
Tool

• MUDA
• Mistake proofing
• Intro to Value Stream
Mapping
• Visual Management

Time / Cultural Maturity

Applying the right tools at the right stage

Advanced Lean
Lean Tools Overview Recap…

A number of Lean Tools and Techniques are available


Actions Tools and
Techniques
Bring Organization 5S Framework
& Cleanliness to
work area
Understand Value Stream Mapping
Value
Implement pull- Kanban, Just-in Time
based flow
Reconfigure work U-Shaped Cells
areas
Institute continuous Kaizen Events
improvement philosophy
Benefits
Realized

Appropriate Tools and Techniques are to be used


depending on the need

Advanced Lean
Lean Tools Description Recap…

Exposing the Waste ~ Recap…..

 5S

 7 Wastes

 Mistake proofing

 Visual Management

Advanced Lean
5S Recap…

5S – A Framework to create and maintain your


workplace
1. S: SORT (Organization)
Distinguish between what is and is not
needed
2. S: SET IN ORDER (Orderliness)
A place for everything and everything in its place

3. S: SHINE (Cleanliness)
Cleaning and looking for ways to keep it clean

4. S: STANDARDIZE (Adherence)
Clearly define Tasks and Procedures

5. S: SUSTAIN/SYSTEMIZE (Self-Discipline)
Stick to the rules, scrupulously

Implementing the 5S is often the first step in Lean


Transformation
Advanced Lean
Muda ~ 7 Wastes Recap…

MUDA – Lean is a way to continuously eliminate waste


The Seven Deadly WastesExamples
Incorrect Layouts of office, factory, etc.
Lack of Proximity Of Machines
Off-line Resources
Motion
Watching Machines Work
Long Set-ups and Lead Times
People Waiting
Large Batches and Inventory
Planning Full Utilization of Machines and Labor
Overproducti Producing More Goods than Marked Demand
on
Poor Machine Maintenance
Unnecessary Processing Steps
Processing Longer Lead Times
Process
Long Delays for Troubleshooting
Defec Costly Rework
ts Dissatisfied Downstream Customers
Inventor High Stocks of Raw Material, WIP, & Finished Goods
y Additional Space Requirements
Clutter
Product
Transportati Unnecessary Movement
on Extra Handling
“Moving Inventory”

At the end, everything results in Cost!!


Advanced Lean
Mistake Proofing Overview Recap…

• A technique for eliminating errors


• Making it impossible to make mistakes

BEST Elimination
> Eliminate the possibility of error
Replacement Use the highest level
> Substitute a more reliable
process
possible for the
BETTER
Facilitation
application.
> Make work simpler to perform
Detection
> Detect the error at the defect
source
GOOD
Mitigation
> Minimize the effect

It is good to do it right the first time; it is even better to make it impossible


to do it wrong the first time.

Advanced Lean
Visual Management Overview Recap…

Why Visual Management ….

• Demonstrate how we manage our processes …Consistent


Communication

• Excite customers/ stakeholders walking the floor … Visual


Management

• Transparent view of Performance … Shared Ownership

• Escalate abnormalities… Quicker Resolution

• Decision making @ working level … Empowerment

• Showcase Successes … Create a sense of Pride


Seeing is Believing

Advanced Lean
• Lean Overview … Recap

• Lean Methodology
 Five Lean Principles

• Lean Advanced Toolkit

• Lean Deployment

• Lean Resources

Advanced Lean
Five Lean Principles
Lean Enterprise
Raw Tier 2 Tier 1 General Customer
Materials Suppliers Suppliers Electric

LEAN OFFICE

LEAN ENTERPRISE

Lean Enterprise: Maximizing Value Wing to Wing

Advanced Lean
Five Lean Principles

Lean Thinking
The Fundamental Objective The Fundamental Insight

Provide perfect value to the  Focus on each product and


customer through a perfect its value stream rather than
value creation process with organizations, assets,
zero waste in: process technologies, and
career paths
 Design (concept to
customer)  Ask which activities are
 Build (order to delivery) waste and which truly create
value
 Service (order to cash)
 Enhance value & eliminate
waste

Lean: Fundamentally Change how we do business

Advanced Lean
Five Lean Principles
Define value in from 1 2 Map all of the steps…
the customers Specify Value Map the value added & non-
perspective and Value Stream value added…that
express value in terms bring a product of
of a specific product service to the customer

3
5 Establish
Work to Flow
Perfectio
The complete n The continuous
elimination of waste movement of products,
so all activities services and information
create value for the from end to end through
4 the process
customer Implemen
t
Nothing is done
Pull by the upstream
process until the downstream
customer signals the need
The Tools get you there…The Principles keep you
there

Advanced Lean
Five Lean Principles

1. Specify Value A capability provided to a customer at the right


time at an appropriate price, as defined in each
case by the customer.
 Specify value from the standpoint of the Waste:
end customer  Activities that add no
value, add cost and time
 Ask how your current products/services
and processes disappoint your  Symptoms; need to find
customer’s value expectation: root causes and
eliminate them
 price?  7 types of waste
 quality?
 reliable delivery? •Incidental
Incidental
Work
•Work
 rapid response to changing needs? •Pure
PureWaste
Waste

 fundamental definition of the product? •Pure Waste

•Value
Value

Typical Operation: 1-10% Activities are Value


•ValueAdding

Advanced Lean
Five Lean Principles
“Whenever there is a product or service for a customer,
2. Map the there is a value stream. The challenge lies in seeing it.”
Value
Stream (Womack, Learning To See)
 Identify all of the steps currently Value stream
required
to move products from order to All activities, both value added
delivery and non-value added, required
to bring a product (or provide a
 Challenge every step: Why is this capability) from raw material
necessary? Would the customer (initialization) into the arm of
think the product is worth less if the customer
this step could be left out? 3 Main Value Streams:
 Many steps are only necessary 1. Raw material to
because of the way firms are customer
organized and previous decisions
about assets and technologies 2. Concept to launch
3. Order
Mapping the VS – See the whole to cash
and improve the
system
Advanced Lean
Five Lean Principles

3. Establish FlowLine up all steps that truly create value in a rapid


 Continuous movementsequence
of  Require that every step in the process be:
products, services and
information through the  Capable – right every time (6 Sigma)
various transactions from end
 Available – always able to run (TPM)
to end in the process
 Flow appears impractical and  Adequate – with capacity to avoid
illogical because we have bottlenecks and over capitalization
been trained to think in terms (right-sized tools)
of:
 departments, silos
 batches, queues
 efficiencies and backlogs
Batch Processing – 1 minute per piece Continuous Flow – Make One Move One

A B C A B C
Cycle Time= 30++ Min Cycle Time= 12
(weeks) Min
Applying the right tools at the right stage
Advanced Lean
Five Lean Principles
4. Implement PullNothing is done downstream until required
upstream
 A system of cascading  Through lead time compression
production and delivery & correct value specification, let
instructions in which nothing customers get exactly what’s
is done by the upstream wanted exactly when it’s wanted:
supplier until the
downstream customer  At the pull of the
signals the need customer/next process
 Using signals (kanbans)

One
Okay
more
please!

supplier customer

Pull: Customer Centric

Advanced Lean
Five Lean Principles
5. Work to PerfectionA continual cycle of process improvements
 There is always more waste
 People learn and exercise more creativity
 Involve employees in the process, training them as
you proceed.
 Continuous improvement leads to innovation
Next Future State
 Use root cause analysis to solve problems promptly
and permanently.
 Make objectives visible
Future State

Current State Original State

Continuous Improvement never stops

Advanced Lean
Lean Advanced Toolkit

Level 1 Level 2
Reduce
Variability
Control the
Process
• Value Stream Mapping
Sophistication

Expose the • Standardized Work


Waste • Intro to Continuous Flow
• 5S • Intro to Pull Production
Tool

• MUDA
• Mistake proofing
• Intro to Value Stream
Mapping
• Visual Management

Time / Cultural Maturity

Applying the right tools at the right stage

Advanced Lean
Lean Tools Description

Reduce Variability
Control the Process

 Value Stream Mapping

 Standardized Work

 Introduction to Continuous flow

 Introduction to Pull production

<Action Work Out>

Advanced Lean
Value Stream
Mapping

CT V
PA IS
IO
EN N
G

L E A N
ENTERPRISE

Advanced Lean
Value Stream Overview

View of the entire Supply Chain

SUPPLIERSYOUR PLANT OR BUSINESS


CUSTOMER TO END USER

TOTAL VALUE STREAM

See the Whole Process from Start to Finish – Wing to


Wing

Advanced Lean
Value Stream Overview

• Value Stream Mapping (VSM) is a pencil and paper tool that helps
us see and understand the flow of material and information as a
product makes its way through the Value Stream

• Follow the product or services path starting from the Customer


and then move to the supplier and carefully draw a visual
representation of every process

• Ask a set of key questions and draw a “Future State” map of how
value should flow

• Help us see the sources of Waste and eliminate them

Looking at the process from a customer value


perspective

Advanced Lean
Value Stream Mapping

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


journey

• it helps you visualize more than just the single-process level, i.e.
assembly, welding, etc.

• it helps you see more than waste ­ it helps you see the sources of
waste in your value stream

• it provides a common language for talking about manufacturing


processes

• it makes decisions about the flow apparent, so you can discuss them

• it ties together lean concepts and techniques ­ helps you avoid


"cherry picking"

• it forms the basis of an implementation plan

• itForms thelinkage
shows the Blueprint forthe
between a Lean Implementation
information Plan
flow and the material
flow
Advanced Lean
Value Stream Mapping
VSM Steps
• Identify the Value Stream for every
Product Family major product family/program. Concept
to launch - Order to delivery

Current State • Map the current state - Identify all the


Drawing actions that don’t create value.
Challenge every step

Future State • Develop and map concepts for the


Drawing future state as a management team

Implementation
Plan • Develop actions and drive toward future
state
After completion….look for other opportunities to
improve

Advanced Lean
Value Stream Mapping
Current Future
Flow:
Dash Value Stream Map – Initial State Dash – Lean Project Funnel
Information OPSI 13 WEEK FORECAST OPSI 13 WEEK FORECAST
Material Sales Sales
Forecast Forecast
Prod’n Cont.
4 WEEK
Prod’n Cont.
4 WEEK Too Much
FORECAST Prod’n Cont. FORECAST Prod’n Cont.
13 WEEK 13 WEEK Variation
FORECAST
GEC Weekly CRC Orders FORECAST
GEC Weekly CRC Orders
HLA HLA
Daily Orders Daily Orders Heijunka
Daily Daily
Orders MRP Orders MRP
Too Much
Suppliers Customer Suppliers Too Much Variation Customer
Daily Variation Daily Heijunka
Schedule Schedule
Heijunka
• Portable Unit
• Monitors Patient Vitals
• Produce ~4,000/Qtr Irregular Create Supermarket Irregular
• Over 30,000 Variations
Too Much
Inventory Create Supermarket
Brds + RIP Brds + RIP
3 Bd. Assy. 3 Bd. Assy.
$3,300,000 $3,300,000
2,360 Units Test WIP+FG 2,360 Units Test WIP+FG
19 Days Worth $1,700,000 19 Days Worth
$425,000
11 Days Worth 10 Days Worth
$425,000
11 Days Worth
Too Much
$1,700,000
10 Days Worth
Ass’y WIP Ass’y WIP
210 Units Create Supermarket 210 Units Inventory
$513,000 $513,000
3 Days Worth Heijunka, J IT 3 Days Worth
Too Much J IT J IT J IT Heijunka, Late Pt. ID
SMT HA TEST ASSY TEST CONF SHIP Inventory SMT HA TEST ASSY TEST CONF SHIP
Long Too Much
Batch Batch Batch Batch
Raw Bds 3 2 2 6 4 2 6 Raw Set
Bds Ups
3 2 2 6 4 2Variation 6
Non-Value Add Non-Value Add
8 WKS 8 WKS
7 Days 3.5 Days 10 Days 10 Days 5 Days 1,020 Hrs. (98% of Time) 1,020 Hrs. (98% of Time)
8 Days 7 Days 3.5 Days 8 Days 10 Days 10 Days 5 Days
SMED
15 Min. 42 Min. 24 Min. 30 Min. 1020 Min. 25 Min. 30 Min. Value Add 15 Min. 42 Min. 24 Min. 30 Min. 1020 Min. 25 Min. 30 Min. Value Add
20 Hrs. (2% of Time) 20 Hrs. (2% of Time)

2% Value Added Time…98% Waste Clearly Identifies Opportunities to Drive Sustainable Change

Template ~ Create your


Create a Value
own Value Stream Map Stream

Identify AWO opportunities from the Value Stream


map

Advanced Lean
Value Stream Deployment
Roadmap
1. Set the strategy
2. Find a change agent (how about you?)
3. Get the knowledge
4. Do an Action Work Out
Action Work Out

7. Eliminate waste by executing the plan


8. Expand the scope to other areas

Don’t Wait!! – “Opportunities multiply as they are


seized”

Advanced Lean
Trace Collection Process: VSM
EXTERNAL
AGENCY
GECFA
No Phones
Collections
L NL
GE Money
Mainframe EXITS
(Vision Plus)
L
X

0-29 days Mainframe c c c c


past due
Workable/Non
V+,CPAC,
IWP DMS c c
FCS Sentricx Hold
accounts ICBS
Workable App req

4 Hours + 4 Mins 10+5+5 Mins 3-9 10 + 4 Mins 5 - 11


DAYS DAYS

L = Locate
NL = No Locate
C = Call made Wait Time
Wait Time: up to 14 days Reduce TAT from 3-9Days
X

= Routed Value Add: ~ 35 Min to Less than 4 days


Advanced Lean
Value Stream Map From GE Rail ~ AWO

Before
Lead Time: 76 Days
59 Total Steps

After
Process Flow
Lead Time: 52.35 Days
59 Total Steps

Advanced Lean
Standardized Work

CT V
PA IS
IO
EN N
G

L E A N
ENTERPRISE

Advanced Lean
Standard Work

Why have Standard Work? Waste


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

 A tool for Improvement


There can be no improvement in the absence of
standards. Abnormal situation show that something is
goingexpose
on. wastes

Advanced Lean
Standard Work

The combination of people, information and material to carry


out
an operation in the most efficient way
Office Processes
Normal vs. Abnormal • Often poorly defined
When normal and abnormal work • Examples:
• Standardize Input
activities are undifferentiated, waste • Hand-off can create huge waiting
time. Reduce time by
almost inevitably occurs. Standard Work standardization

provides an efficient framework in which Flow effect


• Provide clarity about activities
to determine when an abnormality has • Reduce process variance
occurred so that it can be addressed. • Makes process reliable
• Exposes more waste

Identify Problems

Normal vs. Abnorm


al Why?
Provides the Basis for Kaizen
Advanced Lean
Standard Work

The devil is in the details. If you do not specify the standard,


you allow wastes to occur that could be eliminated. But more
important, it hinders learning and improvement in the
organization.
Specify content, sequence, timing and outcome to prevent and
to expose waste. However, keep in mind that the details have
to improve the flow of value as drawn in a value stream map.
A perfect example of Standard Work
1. Each worker understands their task.
2. All tools and equipment are at arms length
3. Standard work has been practiced to
perfection
4. Continuous observation and analysis drives
continuous improvement

Types of Waste Eliminated


• Searching
• Finding
• Selecting
• Transporting
• Waiting

Advanced Lean
Levels of Standardization

Two levels for standardization for every type


of item
• Activity
• Connection between activities

Connection

Activity Customer

Advanced Lean
Standard Activity

Customer
Activity

Standard Activity have to make the activity direct and


unambiguous. On a detailed level tasks/decisions/etc… should
be specified.

When designing a Standard Activity keep in mind the follow


elements:
1. TAKT time
2. Work sequence
3. Standard work in process

Advanced Lean
Standard Work: Takt Time
Element 1

Create Standard Work around Takt Time, keeping in mind the changes in
Takt Time.
TAKT Time = the frequency at which a product or service must be
competed
in order to meet customer needs
Rate of Customer Demand = Rate of Producing/Servicing

Available Time Office Processes


• Check any time if you’re on

TAKT time formula: Required Output schedule:


Daily 400 in-voices.
(Customer or Forecasted Demand)
It is 13:30, are we on schedule?

Time
It’s 8:30 am. How are we doing?
60” Takt Time
7 am 8 am 9 am 10 am 11 am noon

Person Orders
A B C D
(60”) (60”) (60”)(12”)

Advanced Lean
Standard Work: Work Sequence
Element
2

Standard Work Work Sequence


• What has to be done? The order in which an person performs a
• In what sequence? series of repetitive tasks. It should be
• How much time can it take? differentiated from the processing
sequence, which is the order in which the
part is processed.
Standard Work / Combination Standard Work Sheet
New / RevSheet Page 1 of 1 Date 2/6/02
Production Line
AMX
Operator
New / Rev Page 1 of 1 Date
Production Line
2nd Qtr. ‘01 Part Number
Cell 6 Operator

Use this
Organization Area Supervisor Part Number All Parts
Organization Area Supervisor
Standard Work Shannon Tubing CFM Cell Fern Bissonnette Standard Work Sheet Part Name All Tubes
X-Ray Station 1 & 2 J. David Combination Sheet Part Name

Time Production Req'd Takt/Rate Time Manual Travel ~~~~~~~~


Sec ( ) Min (X) Hr ( ) Auto Wait Orbital

Templat
Step Operation Name
10 20 30 40 50 60 70 74 80 90 Weld End Finish Weld End Finish
No.
Manual Auto Travel Weld
1 Check Motor 3 3
Flex
2 Issue DHR 2 2
3 Install Gen. Housing 10 5
4
5
6
Install Clips
Install Term. Strip
Install/Wire Latch
e 5
6
4
4
6
4
Torch
Braze
Outside Cell
FPI
X-Ray
7 Jumper Wire to Filter 10 6 Mech. Mech. EDM
Mark Hydro Test
Clean Clean

Weld End
Finish

Totals 40 30 Operation Time T/T Standard Work From:


Scope of Operations

Raw material
Quality
Check
Safety Standard
Precaution Work-in-Process
# Lots of
Standard
Work-in-Process
27 - avg lot = 6
Total Manual & Travel Time Takt/Rate
Operator Man/Travel Time
Time
100/Day
Turns DPU's
To: Finished Goods

Physical or digital design

Standard Work Sheet and Standard Work/Combination Sheet defines the Work Sequence

Advanced Lean
Standard Work: Standard WIP
Element 3

Set a Standard WIP in your Cell, if applicable to your office


process.
The minimum Work in Process (WIP) required to perform
repetitive operations, and maintain a continuous flow.
Controls the in-process inventory to ensure an even and
controlled process flow.

Standard WIP should be kept as low as possible.

Advanced Lean
Standard Connection

Connection

Customer

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


office.
The connection between two activities (hand-offs) is one of the
biggest causes of waste in the office.
Make sure that to standardize the connect between activities.
Direct and unambiguous specifying:
• …people involved
• …form and quantity to be provided
• …way requests are made by each customer
• …expected time in which the requests will be met (!)
•…
It creates a clear supplier-customer relationship. This will reduce
the possibility for variance, which increases the quality standard
in the office.
Advanced Lean
Standardization and Flexibility

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


Standardization makes abnormalities soon appear. By looking at
the root causes of the abnormalities, you understand what is
going on, and give the possibility to adjust.
Two solutions: (1) eliminate the abnormality, or if not possible (2)
adjust the standard to the new situation.
Standardization increases your awareness of changes. And
through this awareness you are able to adjust to these changes
quickly, which increases your flexibility.

Standardization helps to create a flexible multi-disciplinary


workforce. It is easy for a person to take over work from another
person.
Advanced Lean
Relation with other Lean Tools

Value Stream Mapping


First implement the improvements of the Future State
(e.g. continuous flow, 5S, etc.). Then use Standard
Work to standardize all the activities in and between
the processes. It will expose waste (by abnormalities)
and also prevents waste (keep everybody focused on
normal way of working).

Creating Continuous Flow


Standard Work helps to reduce variance allow the flow of
value. Less variance improves the capability to create real
continuous flow.

Mistake Proofing / Poke-Yoke


Standard Work is the prerequisite for implementing Mistake
Proofing. Mistake Proofing has to prevent to have defects
going further on the line. If no standard, then defects
difficult to detect Normal Abnormal

Advanced Lean
Relation with other Lean Tools

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


Look Here …
Visual Management
Standard Work is the prerequisite for
good visual management. It sets the
standards for the work. Visual
management has the objective to
make abnormalities visual, so actions
can be make right away.

Kaizen
Standard Work provides a basis for Standard
improvement, because it exposes
waste by abnormalities. These
abnormalities are then subject to
Kaizen Events to improve the
processes. Not Here …

Advanced Lean
Summary

Standard Work
 …prevents waste to occur.
 …exposes waste and is the basis for continuous
improvement.
 …increases your flexibility.

Two levels of Standardization


• Standard Activity
• Standard Connection

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

Advanced Lean
Introduction to Single-Piece-
Flow (Continuous Flow)

CT V
PA IS
IO
EN N
G

L E A N
ENTERPRISE

Advanced Lean
Single-Piece-Flow in a Cell

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

Cell Physical Cell

An arrangement of people, systems, items,


and methods with the processing steps
placed right next to each other (physically or
digitally) in sequential order, through which Incoming
Forms
Output

parts are processed in a continuous flow.


Digital Cell

Advanced Lean
Batch Vs Single Piece Flow

Batch Single Piece Flow

From: The Toyota Production System

Catches Defects too Late Catches Defects Immediately

• How many more do you have? • You only have one


• Where are they in the process? • You know where it occurred
• What is the root cause? • Resolve the root cause immediately

The Next Process is the Customer … Never Send Defects !

Advanced Lean
Why Use Single Piece Flow ?

CTQ Batch Single Piece


Production Flow
Quality Risk  
WIP  
FIFO  
Lead time  
Productivity *  
Changeover time **  

• * Single Piece Flow productivity can be improved by balancing processes versus


Takt Time
• ** Changeover time impact can be reduced by SMED or reducing changeover
frequency, but, in this case, by increasing finished goods inventory.

Single piece flow is always better with respect to FIFO

Advanced Lean
Where to start?

Creating Single-piece-flow Prerequisites


1st time
Value Stream • Value Stream Mapping
Mapping
Process Level See the flow

Single Facility
(door-to-door)

Multiple
Service Facilities

Across Companies • An (potential) area for


Cell

Advanced Lean
Which process area?

Supplier = Customer ?

Yes
A main characteristic for office processes is that the customer of the process is often the
supplier of the needed information for doing the whole value stream, as well. Therefore,
the customer often has to wait for the whole lead time of the process.
Start within the area with the
biggest potential of lead-time reduction.

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

Advanced Lean
Roadmap - Creating Continuous Flow

• Cell Content
Start looking at what items you should have in the cell.
• Actual Work
Then analyze actual work to be done in the cell.
• System, Item, and Lay-out
Optimize System, Item, and Cell Lay-out for creating continuous flow.
• Work Distribution Going to reduce waste out
of:
Distribute the Work among the People
• Steps
• Implement, Sustain, and Improve • People activities
Actual implementation of Continuous Flow in a Cell • System activities
• Item design
• Lay-out

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

Advanced Lean
Questions for Creating Continuous
Flow
Key questions
Cell Content
• Do you have the right end items?
• What is the Takt Time?
Actual Work
• What are the work elements necessary to make one piece?
• What is the actual time required for each work element?
System, Item and Layout for Flow
• Is your System suitable for flow?
• Is your item design for optimal continuous flow?
• How can the process be laid out so one person can make one piece as efficiently
as possible?
Work Distribution
• How to use your people efficiently?
• How will you distribute the work among the people?

Advanced Lean
Do you have the right items?

Think carefully about assigning right items to your cell.


Here are some guidelines:

1. Flexibility
Cell for multiple items
+ More flexible for
changing demand
+ Pushes you to create
short changeover time
Cells for one item (waste reduction) Cells for multiple items

A B A& B A& B

Advanced Lean
Identify Items for cell

Start with the product or service, that is the customer’s only interest in GE.
To simplify, identify the product/service families:
A group of products/service that go through the same or similar ‘downstream’ steps.

Process Steps & Equipment


Map together in one
1 2 3 4 5 6 7 Value Stream Map.

A X X X X X
Item

B X X X X X
C X X X After analyzing, you
might come up with the
conclusion to have step
5, 6 and 7 in one cell.
2. Similarity of processing steps
When required steps of the different products vary too much, then separate cells.
For example, item C does not look to be suitable for the cell.

Advanced Lean
Do you have the right items?

3. Variance of different product types

Time
Max. ~ 30%
Total Work Content (see also next section) of the
product going through the cell should not variance
more than 30%, otherwise take them apart.
A B

4. Takt Time (production pace)

Purpose: Match Customer Demand Pace with Production Pace


How often should we finish an item to serve the customer on time?

Available Time
TAKT time: It’s the heartbeat of the process
Required Output
(Customer Demand)

Advanced Lean
What are the Work Elements? (for making
one piece)

Work element
‘smallest increment of work done by a person (not a system)
that could be moved to another person’

Each process consist of a series of work elements. By collecting all the


work elements in the cell, you get the total work content of the cell.

Calculate the actual work by using a Process Study Form


Guidelines
• Get REAL data, do not rely on standard time or data from the past. Get it yourself.
• Time each work element seperately, otherwise you can include waste. Once timed individual
elements then time operator’s complete cycle from start to finish. Compare to see the waste.
• Time an experienced operator who is fully qualified to perform the job.
• Seperate operator work time from system cycle time.

Breaking work in elements helps you to expose and identify waste

Advanced Lean
Process Study Form

Process Observer Date/Time


Process Study
Process Steps Operator
Low est System
Work Element Observed times Repeatable Cycle Time Notes

e n ts
el e m
wo rk
s as
wa ste
o us
y o bvi
an
c l u de
o t i n
Do n

Full Process Study Template

Use this
Template Microsoft Excel
Worksheet

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

Current Improved
K
Paper Kaizen
240 Approach of immediately leaving
Total Work Content for one item
in the cell are activities A-K. out wasteful steps. You eliminate
some waste on paper before
210
implementation.
J
I K
180
H
Time

First understand all


150
G the work elements
F that make the total
I
work (Current)…
120
H
G Paper Kaizen
90 E F • Elimination: C and J
…then have a critical • Time reduction: A and F
D look on the work
60 C elements and design E
improvement on
B paper (Improved) to D
reduce wastes.
30 B

A A

Advanced Lean
Operator Balance Chart
… then connect to Takt TIme.

Operator Balance Chart (OBC)


210 Takt Time
205 sec. Picture of distribution of work among
180
K operators in relation to Takt Time.
• Simple
150 • Visual
I • Quantative
120
H Takt Time • No guesswork
G 110 sec.
90 F F K Takt Time
82 sec.
60 E E E K
D D D H
I G
30 B B B
H F
I
0 A A G A
1 1 2 1 2 3 = Operator

Advanced Lean
Is your System suitable for flow?

Is your system able to handle the Takt Time?


If a System (or Machine) is
Effective System Cycle Time < (Fastest Takt Time – 20-25%)
part of Continuous Flow
• Fluctuation in demand
Cell, you should make sure
• Equipment is often less flexible than people
it is appropriate enough for
handling the Flow.

Also ask the follow questions about your System:


Valuable? - Does the System add value? • Is it working in batch or
single piece?
Capable? - Does the System create no defects?
• Easy to replace (price)?
Available? - Is the System always available when needed? • Easy to maintain?
Adequate? - Is the System not a bottleneck for the flow? • Easy to use?
Flexible? - Is the System flexible to adjust for changes? • Is it optimal design to
support continuous flow?

Should you have one integrated system, or different small systems connected by a simple workflow tool?

Advanced Lean
Is your item ideally designed for
flow?
Are your items optimal designed for creating continuous flow?

• How is the item presented in an easy, simplified, proper way?


• Are there any changes you can make on the item, so it takes less time
for the operator to process?
• Are the items easy accessible, at their fingertips?

Ideally for a process


For example
• with high volume, low variety • Pay-roll
• Policy request processing
• with high frequency of use
• Customer Service Centers
• with stable input

Advanced Lean
Cell Layout

How can the process be laid out so one person can make one
piece as efficiently as possible?

• Avoid isolated islands of activities.


• Minimize inventory accumulation between processes.
• Remove (physical and digital) obstacles for the operator
Make value creating activities easily accessible.
• Design good ergonomics.
• Keep manual, operator-based work steps close together to allow
flexible work element distribution.

Advanced Lean
Office Cell Layout

Cellular environment is an area of continuous flow.

Physical…
• Multi-functional
• Co-located
• One piece flow
• Balanced – waste removed
• Cross trained team
Incoming • Staffed within the ‘interval’
Forms Out • Standard work

… or Digital
A cell can also be designed digital. Think of setting operators
work in a flow by aligning systems.
Workflow IT can help to let differ systems work together in a flow.

Advanced Lean
How to use your operators
efficiently?

Total Work Content (after paper Kaizen)


Number of operators:
Takt Time – buffer for variance
Example 134
= 3.2 operators
45 - 3
Lean Option
Option A Option B • Maximize operator work.
Balance the line
Takt Time
Lean Option • Let Op. 4 do other things
45 sec.
45
Buffer for variance
Continuous Improving
30
• More variance reduction,
15 reduces buffer.
• Eliminate by reducing
0 more waste.
1 2 3 4 1 2 3 4

Advanced Lean
How will you distribute the work?

What is the optimal way of distribution the work?


There are a lot of way
to distribute the work Specialize Do it all
among operators,
75
here two examples: 2x Takt Time

How will you design 60


that in your physical or H H
digital layout. G G
F F 45
Takt Time 38 sec.

E E E 30

D H D D
B G B B 15
F
A A A 0
Incoming 1 2 1 2
Forms Out

Advanced Lean
Implementation Stages

Implementing the Flow consists of four stages:


1. Initial Process Design
2. Mock-up
3. Debugging (!)

Process associate
4. Sustaining the Flow

involvement
Paper Kaizen & Initial Mock-up Debugging Sustaining
Process Design
½-2 days 2-4 weeks

Avoid making things permanent, until stage 4,


because it is a real learning-by-doing implementation.

Advanced Lean
Stage 1 – Initial Process Design

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


team process.
A small team should create the initial flow design by the steps presented in
this training. Participants in this team:
• Leadership
• Quality
• IT (if important for design)
• Someone from the process team
Process associates are involvement in the upcoming implementation
stages.

Advanced Lean
Stage 2 – Mock-Up

The initial design represents theoretical ideas for creating


continuous flow. Goal of the mock-up is to introduce process
associates to the process design and to find improvement
opportunities before the actual process is deployed.
Show
• Goals
• Layout of new process
• Operator Balance Chart
• New standard way of working (steps and visual overview)

Try to make improvements immediately during the mock-up as much as possible.

Advanced Lean
Stage 3 – Debugging

In this stage the process begins operating and is improved to the point
where it can process items as designed.

 Make sure that you can still meet customer demand during transition (temporary additional resources
needed?)
 Involvement of quality and IT for kaizen opportunities until it operates as designed.
 The cell’s success is everyone’s responsibility.
 Implement improvement ideas quickly.
 Operator Balance Chart and the new standard way of working must be kept up to date.
 Do not underestimate the effect of transition on the process associates. It requires good change
management.
 Mark milestones that prove you’re making progress.
 Near the end of debugging period the work elements should be carefully re-listed and re-timed.

Track progress on a dashboard. One by one the problems preventing the


cell from meeting Takt Time should be identified and their causes
eliminated.

Advanced Lean
Debugging Checklist

 Is there real one-piece flow? Can the process associate “make one,
move one”? Are the items go through the cell in a flow?
 Do process associates perform the work as specified in the operator
balance chart and the new standard way of working? If not, why?
 Do the team leader and supervisor understand their job
responsibilities?
 Does the information flow? Do the process associates, team leader,
and supervisor know: Takt Time, what to process, how many to
process, how many items are done, what problems are occuring, etc..?
 Are the system, item, and cell layout right?
 Does the cell use the minimum amount of equipment and inventory?
 Can the cell change over between different end items in time?
 Does the cell reduce lead time?

Advanced Lean
Stage 4 – Sustaining

In this stage you move from the debugging phase into daily
operation.
Cells must start on time. Standard work, measurements and
visual management should be put in place to control the
continuous flow in the cell.
It is rare to find a system that maintains a steady state. Things
are either improving or slipping backward. So, the best way to
maintain the continuous flow performance is to keep
improving.

Advanced Lean
Introduction to Pull Production

CT V
PA IS
IO
EN N
G

L E A N
ENTERPRISE

Advanced Lean
What Is a Pull System ?

A system in which each process takes what it needs from


the preceding process when it needs it and in the exact
amount needed.
• Employs a variety of visual signaling devices and uses
the concept of Kanban
• Just-in-time focused
• Controls production system and limits inventory
• Simplifies or eliminates documentation

Customer pulls the flow

Advanced Lean
What Is a Push System ?

A system in which products are pushed through production or


distribution, based on a schedule.

• “Ready or not, here I come!”

• Products are produced only when scheduled

• Assumes receiving work centers will be ready for the products


when they arrive

• Output continues without regard to actual downstream needs

• Response is delayed and the system disrupted due to short-


interval changes

Advanced Lean
Differences Between Push & Pull

• Planning

• Push: Work is completed based on a planning system

• Pull: Work is completed based on authorization from


downstream users

• Work Authorization

• Push: Work is immediately sent to downstream user upon


completion

• Pull: Work is not forwarded to next operation until requested

Advanced Lean
Why Use Pull ?

A conventional system, based on a schedule, generates


unneeded inventory (overproduction) because true
customer needs never fit perfectly with schedule. For the
same reason, it can also generate shortages.

Schedule :

Customer need :

Inventory :

SHORTAGE SHORTAGE

Pull ensures best inventory control with high customer satisfaction

Advanced Lean
Why Use Pull ?
Conventional ‘Push’ system : WIP = ?

PROCESS #1 PROCESS #2 PROCESS #3

Breakdown

Yield=2/h Yield=1/h Yield=2/h

RAW MATERIAL WORK IN PROCESS FINISHED GOODS

Pull System : Standard WIP = 3

PROCESS #1 PROCESS #2 PROCESS #3

Breakdown

Yield=2/h Yield=1/h Yield=2/h

RAW MATERIAL WORK IN PROCESS FINISHED GOODS

Pull improves work in process management

Advanced Lean
Pull Characteristics

• Standardized application
• Visibility
• Simplicity
• Standard lot sizes
• Discipline
• Versatility/Flexibility

Advanced Lean
How does Pull work ?
Legend
Supermarket
END CUSTOMER

Material
Information
2
1
1 Sequence / Timing

9
2nd LEVEL
SUPPLIER
10

1st LEVEL SUPPLIER 9


2nd LEVEL
SUPPLIER
10

PROCESS #3 PROCESS #2 PROCESS #1

3 4 5 9
2nd LEVEL
SUPPLIER
8 7 6 10

Advanced Lean
How does Pull work ?

Min/Max is the most often used methodology to manage


supermarket/buffer inventory level.

Max>
Pull
Pull Replenish
Pull
Min>

High performance companies use Kanban to


communicate needs to preceding process.

Advanced Lean
Heijunka
Heijunka is the foundation of the Toyota Production system, and is the
process of leveling and sequencing an operation.
There are three main elements of Heijunka…

2. Leveling: Overall leveling of a process to reduce variation in output

3. Sequencing: Managing the order in which work is processed (Mixed


Production)

3. Stability or Standard Work: Reduce process variation


Toyota
Customer Demand Leveling
Heijunka
Production System

Just-in-Time

Jidoka
Heijunka

Reduction in variation experienced by the customer

Advanced Lean
Kanban
A Kanban is a signal used by a downstream operation
to request a material replenishment
Kanban

Supplying Using
Process Process

Required
Part/ material
● Cards ● Bins
● Carts
● Labels

Kanbans are used to signal the supplying process


that more material is needed

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

• Autonomation: Automation with human intelligence – operate


autonomously

• Stop at Every Abnormality


Toyota
Production System

Just-in-Time

Jidoka
Abnormal

Heijunka

Fix the process (problem) before moving on

Advanced Lean
• Lean Overview

• Lean Methodology

• Lean Toolkit

• Lean Deployment

• Lean Glossary

• Lean Resources

Advanced Lean
Lean
Deployment
Lean Deployment Roadmap
1. Set the strategy
2. Find a change agent (how about you?)
3. Get the knowledge
4. Seize or create a crisis to motivate change
5. Map your value streams, creating a future state
plan
6. Eliminate waste by executing the plan
7. Expand the scope to other areas
Don’t Wait!! – “Opportunities multiply as they are
seized”

Advanced Lean
Lean Deployment

Investment Required

Expense
5%
Technical
30%

Cultural
65%

“The Soft Stuff is the Hard Stuff”

Advanced Lean
Lean Deployment

Key factors for Success


1. Leadership commitment
2. Ramp up with results
3. Consistency of purpose
4. Knowledge/Training
5. Wide spread Communication
6. Change management
7. Team responsibility
8. Metrics
9. Reward and recognition
10. Roadmap for Execution (Discipline)
11. Balance between short term and long term
12. Best practice sharing (Community)
13. Value Stream Management

“Don’t be afraid to give up the good for the great!”

Advanced Lean
Lean Deployment
Kaizen: Change for the better

• Continuous incremental improvement

• Continuous ≠ slow

• Data driven: visual and quantitative

• Bias for action

• Does not cost money

• Absolute intolerance for waste

Kaizen = Action Work Out (AWO) at GE

Advanced Lean
Lean Deployment

Kaikaku
Vision
Kaizen = Evolutionary Change

u
kak
Kaikaku = Revolutionary Change en
Kaiz

ai
K
ku
ika
Improvement

en

Ka
Kaiz

aku
Kaik
zen
Kai
en
Kaiz

Time

Need Both Kaizen and Kaikaku!!


Advanced Lean
Lean Deployment

Value
Value Flow Pull Perfection
Streams

PROCESS Lean
(Elimination of Waste)

Fron Senio
t r
Line Mgmt
FLOW Lean .
s
(Flow and Pull Improvement)

Focus
Process Lean Flow Lean
• Lean for waste elimination & • Focuses establishing lean workflow
process efficiency Use of Technology for flow
• Empowered teams for speed of  Wing to wing improvements
execution  Establish Pull With customer
• Tap knowledge residing in grass involvement
root level .  Six Sigma for complex problems
•Simple Communication
Responsibilities clearly demarcated

Advanced Lean
Lean Deployment
Why some companies fail?
1. Too busy managing day-to-day – no time for continuous
improvement and organizational learning

2. Belief that past strategies and approaches will continue to


be effective in the future

3. Management through control and efficiency

4. Organizing and managing through departments

5. Using people as operational labor, not operational experts

6. Let Lean Thinking be perceived as a downsizing exercise

Important to be wary of the above factors

Advanced Lean
Agenda

• Lean Overview

• Lean Methodology

• Lean Toolkit

• Lean Deployment

• Lean Resources

Applying the right tools at the right stage

Advanced Lean
Lean Resources
For all references on Lean training material, Lean Initiatives, Genpact Project
examples, visit the Lean Community on the Genpact Support Central
http://gecishome.gecis.ge.com/portal/page?_pageid
=33,872304&_dad=portal&_schema=PORTAL

r y
sito
o
Rep
an
Le

Advanced Lean
Lean Rewards & Recognitions

Got any Lean


Improvements…..

Upload it onto the


Lean Workflow
All approved
Team & Individual
ideas win Cheers

Advanced Lean
Closing Words

Many unidentified problem areas exists


within your processes

Lean methodology helps exposing those


problem areas ~
Creating opportunity for improvement

Implementation is the key

Advanced Lean