Thinking Lean - Introduction to Lean Startup and Lean Canvas
0.08 INTRODUCTION TO LEAN
Transcript of 0.08 INTRODUCTION TO LEAN
0.08 INTRODUCTION TO LEAN
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AGENDA
1. Overview of Lean
2. Lean in the Office Environment
3. Value Streams
4. Flow
5. Pull
6. Barriers to Lean
7. Different ways of implementing Lean efforts
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�Overview of Lean
Partially based on the book:
“The Complete Lean Enterprise”
Beau Keyte and Drew Locher
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BASED ON "THE COMPLETE LEAN
ENTERPRISE"
(BOOK BY BEAU KEYTE AND DREW
LOCHER)
�Purpose:
� Introduce Lean concepts
� Introduce value stream mapping
� Develop your ability to "see the waste" and "see the
flow"
� Walk away with an implementation plan with specifics
to drive real results
� Integrate Lean and Six Sigma
“Value Stream Mapping forAdministrative and Office Processes”
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STARTING QUOTES
�“We have observed that our competitors use brilliant people
within broken process and achieve mediocre results. We use
average people in brilliant process and achieve superior
results.”
�“Every minute of lead time on the shop floor is created in the
office.”
�“The most disrespectful way we can treat people is to have
them perform wasteful activities.”
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LEAN THINKING DEFINITION
�Fundamental Objective:
� To create the most value while consuming the fewest
resources
� Define value from the customer’s perspective
� Identify which process steps create value and which
are only waste (muda)
� Work to eliminate the root causes of the waste and
allow for one-piece, continuous flow
“Lean Thinking” by Womack, J.P. and Jones, D.T. (1996)
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RECOMMENDED READINGS
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BENEFITS
� Lean provides tangible benefits
� Reduces cost not just selling price
• Reduces delivery time, cycle time, set-up time
• Eliminates waste
• Seeks continuous improvement
� Improves quality
� Improves customer ratings and perceptions
� Increases overall customer satisfaction
� Improves employee involvement, morale, and company
culture
� Helps "transform" organisations
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FORD PRODUCTION LEAD TIME 1926
� Monday
� 7:00 PM Ore boat docks at River Rouge plant.
� Tuesday
�10:55 AM Ore reduced to foundry iron 16 hours later.
�12:55 PM Cylinder Block Cast
� 5:05 PM 58 machining operations on casting in 55
minutes
� 6:00 PM Motor assembly takes average of 97 minutes
� 7:45 PM Finished motor loaded on railcars for
assembly plant
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FORD PRODUCTION LEAD TIME 1926
� Wednesday
� 8:00 AM 4-hour assembly time at standardised
assembly plant
�12:00 PM Dealer takes delivery of car
� Conversion of Raw Material to Cash
41 Hours
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LEAN ENTERPRISE
In pursuit of Perfection
You can’t see all the wasteuntil you strip away waste
Define Value and
ID the Value Stream Eliminate the unnecessary
steps in the value stream
Normal vs. Abnormal
VA NVA
Kaizen
As pulled by the Customer
Don’t Automate Waste
“Executive Summary of Lean Thinking” by Womack, J.P. and Jones, D.T. (1996)
Make Value Flow
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RAW MATERIAL
POORSCHEDULING
MACHINE
BREAKDOWN
QUALITY
PROBLEMS
LINEIMBALANCE
ABSENTEEISM
LACK OFHOUSE KEEPING
COMMUNICATION
PROBLEMS LONG
TRANSPORTATION
LONG
SET-UPTIME
VENDOR
DELIVERY
SEA OF INVENTORY
FINISHED PRODUCT
TO CONSUMER
EXPOSE WASTE TO DRIVE IMPROVEMENT
"MAKE PROBLEMS VISIBLE"
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�Lean in the Office Environment
Partially based on the book:
“The Complete Lean Enterprise”
Beau Keyte and Drew Locher
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INDUSTRIES DEPLOYING LEAN SIX
SIGMA IN
THE OFFICE ENVIRONMENT
� Advertising
� Banking
� Computer services &
outsourcing
� Document
management
� Energy services
� Field & technical
services
� Financial services
� Telecommunications
� Construction
� Hotels & hospitality
� Insurance
� Logistics and
distribution services
� Professional services
� Sales & marketing
� Transportation
� Manufacturing
� Healthcare
� Transactional
processes in
manufacturing
• and even Government
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�Value Streams
Partially based on the book:
“The Complete Lean Enterprise”
Beau Keyte and Drew Locher
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VALUE STREAMS
• Quoting
• Order Entry
• Purchasing
• Credit Checks
• Human Resources
• Shipping/Receiving
• Accounts Receivable
• Accounts Payable
• Service & Warranty Support
• Service Industries
• Others?
• Raw Material to Customer – Manufacturing
• Concept to Launch – Engineering
• Order to Cash – Office Functions
Examples of office functions:
“Whenever there is a product (or service) for a customer,
There is a value stream. The challenge lies in seeing it.”(Womack & Jones)
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VALUE STREAM MANAGERS
�Each Value Stream needs a Value Stream Manager
• For product and/or service ownership beyond
function
• Assign responsibility for the future state mapping
and implementing lean value streams to line
managers with the capability to make change
happen across functional and departmental
boundaries.
• Value Stream Managers should make their progress
reports to the top manager on site.
Process 1 Process 2 Process 3
Kaizen
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VALUE STREAM IMPROVEMENT VS.
PROCESS IMPROVEMENT
� Value Stream improvement looks at ALL steps, both value-added and non
value-added, required to complete a product and/ or a service from
beginning to end
� Process improvement typically narrowly looks at improving the value
added processes only without context on the entire system or value
stream
VALUE STREAM
SalesCustomer
ServicePurchasingEngineering
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VALUE STREAM CUT ACROSS FUNCTIONAL
BOUNDARIESValue Delivery Process is not Facilitated by Functionality
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Focusing on the Value Stream Ensures Process Oriented System Thinking
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LEAN ENTERPRISE
�Value Added
Any activity that increases the market form or function of the
product or service. (These are things the customer is willing to pay
for.)
�Non-Value Added (Waste)
Any activity that does not add market form or function or is not
necessary. (These activities should be eliminated, simplified, or
reduced.)
Business Non-Value Added ("Required Waste")
Any activity that is Non-Value Added but is required.
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DEFINING THE VALUE OF AN ACTIVITY
Is the
customer willing
to pay?
Is it done
for the first
time?
Is it a
business
requirement?
Is the good
or service being
transformed?
Non-Value AddedBusiness
Non-Value AddedValue Added
Yes Yes Yes
No No No
No Yes
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THE CONCEPT OF VALUE ADDED
Examples:
• Excessive Walking
• Waiting time
• Paper storage
• Paper sorting
• Correct defects
• Transport
Examples:
• Type in information first time
• Get paper
• Answer customer call
Waste (≈85%)
Value Added (≈3
to 5%)
Business Non-
Value
Added (≈10 to
15%)
Example:
• Satisfying customer Requirement
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8 TYPES OF WASTE – "DOWNTIME"
MANUFACTURING - OFFICE
1. Defects – Correction, errors in documents
2. Overproduction - Doing unnecessary work not requested
3. Waiting for the next process step
4. Non-engaged Employees - Under-utilised employees
5. Transportation - Transport of documents
6. Inventory - Backlog in work queues
7. Motion - Unnecessary motions
8. Extra Processing - Process of getting approvals
� Three New Wastes:
Inappropriate systems, wasted utility resources, wasted materials
back
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DEFECTS - REWORK, CORRECTION, ERROR
IN DOCUMENTS
�Manufacturing
� Rework loops
� Missed process step
� Workers do not
understand job
� Lack of training
� Any part defect
� Missing components
� Out of specification
parts
� Any work requiring re-
work
�Office
� Rework loops (work
arounds)
� Incomplete forms
� Workers who do not
understand forms
� Lack of training
system
� Order entry error
� Purchase Orders not
matching quotation
� Errors – typo’s,
misspelling, wrong
data
� Etc.
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OVERPRODUCTION - DOING UNNECESSARY
WORK
�Manufacturing
� Running any product
that does not have an
immediate customer
demand
�Office
� Working on next
weeks items
� Do easy things first
� Reports not in
unusable form
� Working ahead
� Too many consultants
� Too many reports
� Printing paperwork too
soon
� Etc.
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WAITING
�Manufacturing
� Unbalanced operations
� Operators idly watch
automated machines
(P.C.’s.)
� Machine downtime
� Long and inconsistent lead
times
� Continual production
schedule fluctuations
� Undisciplined
meetings
� Waiting for
information or
"Expert"
�Office
� Unbalanced functions
� Long and inconsistent
lead times
� Customer demand
fluctuations
� Undisciplined
meetings
� Waiting for information
or "Expert"
� System downtime
� Waiting – for
information, at
meetings, etc.
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NON-ENGAGING EMPLOYEES,
UNUSED PEOPLES SKILLS AND CREATIVITY
�Manufacturing and Office
� Unclear job descriptions
� Unclear expectations
� Un-engaged employees
� Employees without a clear sense of direction
� Ambiguous goals and objectives
� Specialist not utilised in their area
� Etc.
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TRANSPORTATION – TRANSPORT OF
DOCUMENTS
�Manufacturing
� Any movement of
product (i.e.
movement between
departments)
�Office
� Any non-value added
moves of documents
between processes
� Send papers to
archive
� Send physical
documents between
locations
� People travelling
between locations
� Travel to other
locations to get papers
� Movement of
paperwork
� Etc.
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INVENTORY - BACKLOG IN WORK QUEUES
�Manufacturing
� Batch processing
� Forecasting - weekly
schedules
� Work in process
� Finish goods inventory
�Office
� Batch processing
� Weekly schedules
� Consolidation of multi-
site financials
� Full in baskets
� Obsolete
databases/files/folders
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MOTION
�Manufacturing and Office
� Poor workstation configuration
� Poor workstation to workstation configuration
(non cellular)
� Standardised Work not implemented
� Walking to get materials
� Cluttered work areas
� Walking to/from copier
� Poor office layout
� Etc.
Trash
Bench
Parts Rack
Tool
Box
Part
Box
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Vice
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EXTRA PROCESSING
�Manufacturing
� Any processing not
required by the
customer
� Manufacturing to a
tighter tolerance than
required
�Office
� Standards unknown /
unclear to operators
� Customer specifications
vague or fluctuate
� Output reviewing and re-
reviewing occurs
� Functional departments
have unaligned goals and
poor communication
� Re-entering data
� Too many signature levels
� Unnecessary e-mails
� Etc.
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CLASS EXERCISE: IDENTIFYING WASTE
� Break into groups
1. WO (Waiting, Overproduction)
2. DM (Defect, Motion)
3. EI (Extra processing, Inventory)
4. NT (Non-engaged Employees, Transportation)
� Brainstorm at least 2 examples of each and list on flip chart
• Factory
• Office
• Warehouse
• Home
• Restaurant
� Present results the class
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�Flow
Partially based on the book:
“The Complete Lean Enterprise”
Beau Keyte and Drew Locher
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CUSTOMER/SUPPLIER CONNECTIONS
CB
Requests through phone, paper, computer, etc.
Responses may travel through several means.
CB
One way to make requests that means only one thing.
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SIMPLE AND SPECIFIC FLOWS
A C E
FDB
the flow is NOT simple and specific
A C E FB
the flow is simple and specific
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THREE TYPES OF FLOW
1. Is there good WORKER Flow?
2. Is there good MATERIAL Flow?
3. Is there good INFORMATION Flow?
In a office environment more often then not we are dealing with
information flow - What is actual flowing?
• Paperwork
• Electronic documents
• Information bit
• Messages
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MANUFACTURING FLOW – BEFORE LEAN
�Organisation by machine type with convoluted flow.
�Maximise departmental efficiency and hide problems.
LATHELATHE
LATHELATHE
MILLMILL
MILLMILL
MILL
GRINDER GRINDERGRINDER
500pcs.
750pcs.
DRILL DRILLDRILL
250pcs.
PART FLOW
• Traditional batch and queue
• Lack of value stream systems
thinking
• Very little focus on between the
operations
• Very large inventory
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PART FLOW
MANUFACTURING FLOW – AFTER LEAN
�U-Shaped one-piece flow cell.
�Maximise value stream efficiency and expose problems.
• Batch size of 1
• Value stream approach
• Waste between the operations is
eliminated
• Management of process is very
visual
• Non-standard conditions is very
apparent
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SMALL BATCHES OF WORK
Monday 40 A
Tuesday 10 A, 30 B
Wednesday 20 B 20 C
Thursday 40 C
Friday 20 C, 20 A
Why such a "routine"?
Important:Eliminate all reasons to "batch"!
Discipline to flexible processing!
Monday: 14 A, 10 B, 16 C
Better: Every Type Every Day
Even Better: Every Type Every Hour
7AM: 3A, 2B, 3C
9AM: 4A, 2B, 2C
No Good
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�Pull
Partially based on the book:
“The Complete Lean Enterprise”
Beau Keyte and Drew Locher
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PULL VS. PUSH SYSTEMS
�Push
� Resources are provided to the consumers based on
forecasts, schedules or "when we get to it."
�Pull
� A method of controlling the flow of resources (people,
information) based on pre-establish rules, and actual
status of the system at any time.
Flow where you can and pull where you must!
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PULL SYSTEMS
� Pull System is a flexible and simple method of
controlling/balancing the flow of resources.
� Eliminate waste of handling, storage, expediting,
obsolescence, rework, excess paperwork.
� Pull System consists of:
• Processing based on actual consumption
• Low and well planned work in process (paperwork)
• Management by sight, improved communication
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PULL SYSTEM EXAMPLES
� Kanban system controlling the flow of product in a plant
� Vendor managed inventories (VMI)
� "FIFO lanes" in offices with established rules to trigger
reallocation of resources
• Check out line at a fast food restaurant
• Phone queue systems
� Print on demand (e.g. reports)
� Paperwork "supermarket" (e.g. sales literature)
� Maintaining a "pool" of human resources (e.g. resume
on file, temporary resources)
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PULL SYSTEM EXAMPLE
03, 3:00PM
1:00PM
10-1-03, 9:00AM
Maximum = 3 orders
Minimum = 1 order
FIFO Rules
1. Process all orders in queue in a first-in-first-
out (FIFO) basis.
2. The "supplying" process should stop when
the maximum allowable number of orders is
reached. The "supplier" can perform other
activities, or can assist the "customer"
process.
3. The supplying process should continue when
the minimum number of orders is reached.
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Barriers to Lean
Partially based on the book:
“The Complete Lean Enterprise”
Beau Keyte and Drew Locher
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CHARACTERISTICS OF OFFICE WORK TODAY
� Positions are based on organisation structure rather than work
flow
� The budget process does not promote systems thinking
� Work flow is trapped in functional silos and delayed by hands off
and approvals
� Each office process has a language all its own foreign to
traditional lean speak
� Resources are not allocated by process deliverables
Functional SilosBudgetOrg Chart
Own set of language that does not have its roots in manufacturing
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Slide 47
� Different Ways of Implementing Lean Efforts
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IMPLEMENTATION OF LEAN
1. Value Stream Mapping
2. Lean Kaizen Workshop
3. Tool Kaizen
4. On-Going Lean Activity
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1) VALUE STREAM MAPPING
� A Value Stream Mapping effort completed during the
project could occur:
� Over a series of mapping sessions in project team
meetings
� In rapid event where all team members are engaged
for a focused / dedicated time period
• Typically called a Kaizen event, Kaizen blitz or Kaizen
workshop
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2) LEAN KAIZEN WORKSHOP
� The advantages of a Lean Kaizen Workshop are:
� Resources are 100% dedicated during the event
� Drastic results are achieved within a few days
� Excellent method to involve and engage employees
� Train people by applying methods to a real case and
get tangible results
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LAST DAY
SUMMARIZE, PRESENT,
AND CELEBRATE
EVENT SUMMARYGOALS AND RESULTS
DO IT AGAIN!
MAKE THIS THE
NEW STANDARD
REALITY
CHECK
KICK-OFF:
PD/GOALS
REFRESHER
TRAINING
PLAN
COUNTER
MEASURES
TO - DO L IS T
TEAM
LEADER
MEETING WITH
CONSULTANT
DOCUMENT
REALITY
FIRST DAY
We get these
We do these
We measure progresswith these
Goals
Driver Measures
/Event Objectives
Countermeasures
(LM Tools)
ID THE
WASTE
N
S
EW LEAN?
TOOLS
DR
I VE
RS
DRIVER MEA S URE /
CO UNTERMEA S URE
MA TRIX
EVENT WEEK
TO -DO LI S T
TEAM
LEADER
MEETING WITH
CONSULTANT
DAYS 2, 3 OR 4
MAKE CHANGE
REVIEW
PROGRESS
MAKE CHANGE
TO-DO LIST
MAKE CHANGE
TO-DO LIST
REVIEW
PROGRESS
VERIFY
CHANGE
QUANTIFY
RESULTS
T O- DO L IST
TEAM
LEADER
MEETING WITH
CONSULTANT
IF NECESSARY,
EVENT CLOSURE:
VERIFY
CHANGE
QUANTIFY
RESULTS
MAKE THIS THE
NEW
STANDARD
TO-DO LIST
POST EVENT
EVENT EVALUATION
AND FOLLOW-UP
PREWORK
CLASSROOM
TRAINING
SELECT TEAM
EVENT S UMMARYGOALS AND R ESULTS
GO ALS
DR
IVE
RS
G O A L S /
D R IV E R M E A S U R E
MA T R IX
TOOLS
DR
IVE
RS
DR IV E R M EA S U R E /
C O U NT E R M E A S U R E
MA T R IX
PREPARE EVENT
OBJECTIVES
PREPARE
PD
MATRIXES
EVENTTEAM SE LEC TION
D OCUMENTING REALITY
TIME OBS ERVATION
TYPICAL LEAN KAIZEN WORKSHOP
(TYPICAL AGENDA)
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3) TOOL KAIZEN
� Implementation of Lean principles to very specific process
area in a rapid event.
� Example:
� Office 5S
� Kan-ban system
� Standard Work
� Poka Yoke
� Etc.
Improvements are done locally (within dept or area)
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4) ON-GOING LEAN ACTIVITY
� Implementation of Lean principles to every day activities.
� Example:
� Inventory level reduction
� Lead-time reduction
� Quality Inspection reduction
� Non-value added operations elimination
� Etc.