Lean Office Dean Pomykala, MBA, LSS. Agenda My Bio Lean Overview – What is Lean? Why go Lean?...

Lean Office

Dean Pomykala, MBA, LSS

Dean Pomykala - Lean Office

Agenda• My Bio• Lean Overview– What is Lean? Why go Lean?

• Value Added vs. Non-Value Added Activities• Value Stream Mapping• One Piece Flow• Kaizen Events• 6S• Wrap Up


My Bio

• Dean Pomykala - MBA, LSS Green Belt

– Presently • Director of Instruments Operations• Business Improvement Manager

– Canberra Industries• Radiation Detection & Analysis Equipment

– Used in Power Plants, Labs, Military Applications

• 1000+ Employees worldwide• 400 in Meriden, CT


My Bio

• Dean Pomykala -– Education• Electronics Technology• Bachelor’s Degree in Business• MBA• Lean Six Sigma Green Belt

– Over 25 years of experience in creating & improving standard work processes• Industries include Medical, Military, Aerospace• Standards

– FDA, ISO, GMP, MIL-SPEC, OSHA


Lean Principles

• Lean Principles can be applied to any industry– Health Care– Food Service– Financial– Shop Floor– Customer Service

• Any department– Customers can be internal


Why go Lean??

• Survival…..


Why go Lean??

• Why are Companies going Lean?• Financial Savings

– Huge savings can be made initially from low hanging fruit– Product 1

• 32 Hours Saved Plus Material• $8,000 Each• $250,000 in 2013

– Product 2• 4.4 Hours Saved Plus Material• $590 Each• $20,000 in 2013• 184 Square Feet


Why go Lean??

• Lean Office Projects– Reduce time to enter an order– More efficient method for sales to quote an order– Real-Time Production results displayed in sales office– Freed 6 hours of Shipping/Receiving time

• Soft Savings– Hidden Value

• Improved Customer Satisfaction• Improved On Time Delivery• Faster turn around• More efficient process / Time saved

– More time to be productive in other ways


Why go Lean??

• General Electric– Saved $12 billion over five years– Added $1 to its earnings per share.

• Honeywell – Saved more than $800 million

• Motorola – Reduced manufacturing costs by $1.4 billion from

1987-1994


Why go Lean??

• Baxter Healthcare Corporation– Over a three-day event, a team developed Value

Stream Maps (VSM) that detailed the plant’s use of water and identified processes with potential for improvement

– Using the VSMs, the team developed an implementation plan that saves 170,000 gallons of water per day and over $68,000 over the next year, with little or no capital investment


Why go Lean??

• Canyon Creek Cabinet Company – Expect savings of almost $1.5million annually

from process improvements–Process improvements include lead time

reduction, defect reduction, overproduction, operator motion, and material loss and damage


Why go Lean??

• The Boeing Company – Boeing Everett• Productivity improvements of 30-70%• Eliminated the use of 350 cubic feet of cardboard &

bubble wrap packing material per 747 wing panel set • Reduced chemical usage per airplane by 11.6 %

– Boeing Auburn• Defects have been reduced from 1,200/10,000 (12%) to

fewer than 300/10,000 (3%) • Reduced floor space by 200,000 square feet


Why go Lean??

• General Electric – Peebles, Ohio Facility• General Electric's jet engine facility found ways to reduce

its greenhouse gas emissions by implementing Lean methods, while also producing significant cost savings. Lean events contributed to the following successes at the facility: • Reduced fuel consumption for GE90 engine testing from

20,000 gallons to 10,000 gallons. • Achieved cost savings of $1,000,000 due to fuel use

reduction.


Why go Lean??

• NBC & Universal Studios – The Energy Treasure Hunt Model• Conducted well over 200 treasure hunts globally with a

combined emissions reduction of over 250,000 metric tons of Green House Gas.• Saved over $14 billion dollars


Why go Lean??

• Monetary Savings are easy to see• Soft Savings or Efficiency Savings– Increase in Efficiency– Increased Customer Satisfaction– Increased Market Share• Revenue will follow


World Class• It should be everybody’s goal to become

a “World Class” Company

• World Class– Standard-Setting Excellence– The standard by which all others are

measured


World Class

• Does your product or service have “Standard-Setting Excellence”?

• Are your internal processes the standard by which all others are measured?

• Does your company function like a World Class Company?

• Is your competition World Class?


Becoming World Class

• Implement Lean Principles• Systematic Continuous Improvement– Product/Service & Processes

• Reduce Costs– Not just raw material costs….– The cost of doing business

• People spend too much time fighting fires• Bureaucracy gets in the way

• Generate a Road Map– Where are you & where do you want to be


What is Lean??

• Lean is a philosophy that characterizes all activities as either – “Value Added” (VAT)– “Non-Value Added” (NVAT)

Lean strives to eliminate or reduce all Non-Value Added Activity


Continuous Improvement

– Identify which Processes need to be addressed–Use Lean Tools to identify road blocks,

bottle necks, redundancies, bureaucracies, etc.–Use Lean Tools to determine where you

want to be & make consistent improvements over time to reach your goals


Implementing Lean Principles

• DISCUSSION QUESTION– Three minutes

Can you list 2 – 3 internal processes that can be improved?


Change

• Fear of change is the biggest obstacle in implementing Lean Principles– That’s the way we do it– We’ve always done it that way– That won’t work here

• Change is not only inevitable, it is necessary


Paradigm Shift

• Paradigm– A philosophical or theoretical framework– The way we look at the world

• Paradigm Shift– A radical change in underlying beliefs– When a conventional world view is replaced with another

• Business Models Change– The preferred method today may not be preferred

tomorrow

“That’s the way we’ve always done it.”

Business Models & Paradigm Shifts



Paradigm Shift

• The “Vuja De” Moment! (Simon T. Bailey)– “Vuja De” is the reverse of the Déjà vu, which

means “already seen it.” The “Vuja de” moment is when “you’ve never seen something” but you intend to create it.

– The Vuja De Moment! When your own eyes become “a fresh set of eyes” to see the same thing everyone else sees, but in a unique way.


Value Added Activity

• Value Added Activity– Any activity that transforms raw material (Inventory)

into a finished product that the customer is willing to pay for• Painting• Assembling• Face time with Clients• Medical

– Face time with Patients

• Food Service– Food Prep– Serving


Non-Value Added Activity

• Non-Value Added Activity– Any activity that consumes resources (Labor &

Material), but does not add value to the product

• Anything that your customer does not perceive as value is waste– Ask yourself, “Is the customer willing to pay for

what I am doing at the moment?


The 7 Wastes

• Overproduction• Waiting• Transportation (The Product)• Motion (People)• Inventory• Over Processing• Defects


The 7 Wastes

• Transportation (The Product)• Motion (People)• Inventory


Waste/Non-Value Added Activity

• Examples–Getting Approvals–Waiting for Medical Tests– Searching for Medical Records–Walking to get ingredients– Setting Tables / Washing Dishes

–Non-Value Added, but Necessary


Waste/Non-Value Added Activity

• Anything that your customer does not perceive as value is WASTE

• What is the customer willing to pay for?– Assembling? Yes– Repair? No– Time spent walking to copier– Time waiting for approvals

• Bureaucracy

– Checking other people’s work– Searching for files


Review of Waste

• DISCUSSION QUESTION– Three minutes

Can you list 2 – 3 forms of waste or Non-Value Added Activities at work?


Value Stream Mapping

• A tool used to show the work flow– Clearly lays out Value Added & Non-Value Added

Activities– Exposes the 7 forms of waste

• Create a map for:– “Present State” – “Future State”



• Get all of the appropriate people in a room– At least one per department

• Map your “Current State”• Map your “Future State”• Make the Future State your new Present State• Re-Visit for Continuous Improvements


One Piece Flow

• One Piece Flow is not just for Manufacturing

Person 110 Minutes

Moves Stack to Person 2

Person 2 10 Minutes for each folder

Total Time = 201 MinutesTotal Value Added Time = 20 Minutes

Waits for 10 folders

5% EfficientVAT = 10 MinutesNVAT = 90 Min (Wait Time)NVAT = 1 Min (Transportation Time)VAT = 10 Min NVAT = 90 Min (Wait Time)


Benefits of One Piece Flow

• Does not overwhelm Shipping at the end of the day

• Ship Product to each Customer faster• Customers get consistent service– Is it 100% customer focused to let one customer

wait while you work on another?• Steady Out = Steady In– Inventory Control

• One Piece Flow / One Touch• Pull System / Only build what the Customer Orders• Custom Builds• 6S• Visual Management of Inventory / Supply Chain Management

New Fast Food Model

Wastes??Overproduction?Waiting?Transportation?Motion?Inventory?Over Processing?Defects?



Kaizen Events

• Kaizen Events– Short Term Project – Intense & Focused – Concentrate the focus on clear & concise objectives• Reduce Cost, Reduce Lead Time, Reduce Customer Wait

Time, etc…

– Cross-Functional Team• Includes personnel from several departments


Kaizen Events

• Kaizen Events– Create a Value Stream Map– Create a Future State• Move work areas• Set up new work stations

– Make custom tool sets» Tools» Office supplies

• Documentation


6S

• 6S is intended to create an Efficient work area– Safety– Sort– Straighten– Shine– Standardize– Sustain


6S


6S

Organized & AccessibleTools

Easily Identified Missing Tool


6S


6S

• Which is more efficient?• Which looks World Class?


Wrap Up

• Lean Concepts– Value Stream Map– Identify Waste• Eliminate or Reduce Waste

– One Piece Flow where possible– 6S for an efficient workplace– Continuous Improvement• Re-Visit everything


Wrap Up

• Become World Class• Use Systematic Continuous Improvement• Enhance the entire Organization by:– Examining your own Processes & Procedures– Several small but consistent successes make one big

SUCCESS


Wrap Up

• The Key to Success

• Continuous Improvement

Visualize a “World Class Environment”Then make your vision a reality


Questions??

• Dean Pomykala

– [email protected]

– [email protected]

mailto:[email protected]

mailto:[email protected]

Lean Office Dean Pomykala, MBA, LSS. Agenda My Bio Lean Overview – What is Lean? Why go Lean?...

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