The Lean Journey

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The Lean Journey VerseOne … orchestrating your LEAN solutions

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An overview of what lean is, its tools and what is involved for a company to begin its "Lean Journey".

Transcript of The Lean Journey

  • 1. The Lean Journey VerseOne orchestrating your LEAN solutions
  • 2. WARNING The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is strictly prohibited. Any evidence of violation will be turned over to the appropriate authorities for investigation and possible prosecution. The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 3. Process Improvement Methodologies Theory of Constraints Six Sigma Lean Concept Manage Reduce Eliminate Constraints Variation Waste Application 1. Identify 1. Define 1. Identify Value Guidelines Constraint 2. Measure 2. Identify Value 2. Exploit 3. Analyze Stream Constraint 4. Improve 3. Determine 3. Subordinate 5. Control Flow Processes 4. Implement 4. Elevate Pull Constraint 5. Strive for 5. Repeat Cycle Perfection Focus Constraints Quality Flow The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 4. Introduction What is Lean? It is focused on eliminating waste in all processes It is about expanding capacity by reducing costs and shortening cycle times It is about understanding what is important to the customer (e.g. value) It is not about eliminating people The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 5. Introduction (contd) How Do You Achieve Lean? Specify value from the perspective of the ultimate customer Identify the value stream to expose waste Create flow to reduce batch size and work-in-process Make only what the customer has ordered Seek perfection by continuously improving quality and eliminating waste The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 6. LEAN a powerful combination of techniques to increase business performance, based on the concepts of eliminating waste, adding value, and expanding capacity. The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 7. Lean is comprised of: Keys to leadership Principles Tools The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 8. Keys to Lean Leadership Go See -- senior leaders must spend time on the production floor (gemba) Ask Why -- use the question many times every day to uncover the root cause Show Respect -- respect employees, suppliers, and customers The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 9. Lean Principles Define Value Customer Defined Identify Value Stream Follow the Product Flow the Product Eliminate Waste Produce Just in Pull the Product Time for Demand Continuous Strive for Perfection Improvement The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 10. Background and History 1574: King Henry III watches the Venice Arsenal produce finished galley ships using continuous flow processes 1799: Eli Whitney perfects the concept of interchangeable parts 1902: Sakichi Toyoda establishes the jidoka concept 1910: Henry Ford moves into Highland Park, the birthplace of lean manufacturing, with continuous flow of parts 1911: Sakichi Toyoda visits the U.S. and sees the Model T line for the first time 1929: Toyota Motor Corp. visited GM and Ford assembly lines in U.S. 1938: Just-In-Time concept established at Toyota 1940: Consolidated Aircraft builds one B-24 bomber per day, later improves production to one B-24 per hour The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 11. Background and History (contd) 1945: End of WWII, Japanese economy nearly destroyed 1949: Taiichi Ohno promoted to shop manager at Toyota, develops elimination of waste concept 1950: Juran and Deming began training Japanese leaders on quality and Toyota Production system (TPS) was born 1951: Ohno refines TPS to include visual control, employee suggestions, TWI, batch size reduction, and kanban 1965: Toyota receives Deming Prize for Quality 1975: First English translations of TPS are drafted 1980-83: First books on TPS by American authors: Kanban and Zero Inventories 1990: Womack and Jones publish The Machine That Changed the World, becoming the definitive text creating the term lean, followed by Lean Thinking in 1996 The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 12. Waste Anything that does not add value to a process and that which a customer would not want to pay for, if given a choice. The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 13. Eight Forms of Waste D efects or rework O verproduction W aiting N on-utilization of talent T ransportation or travel I nventory M otion E xtra Processing The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 14. Forms of Office Waste Conflicting Department Goals Traditional Accounting Methods Poor Product Design Looking and Searching for Files Paper Re-work Unnecessary Authorizations The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 15. Source: Minnesota Council for Quality The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 16. Waste Cartoon The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 17. Can You Identify Waste? 1. Extra Photocopies 2. Authorizations NO 3. Final Assembly 4. In Basket 5. Invoicing 6. Payroll The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 18. Lean Tools 5S (sort, straighten, shine, Cellular Flow standardize, and sustain) Jidoka (Autonomation) Value Stream Map Production Preparation Spaghetti Diagram Process (3P) Visual Management Just In Time/Pull (JIT) Error Proofing (Poka Training Within Yoke) Industry (TWI) Standard Work Total Productive Setup Reduction Maintenance (TPM) (SMED) Kaizen Events The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 19. Lean Lessons From Others Getting lean takes a long time Lean is not a part-time effort Lean is more than tools, its also behavior The journey to lean never ends There will be resistance to lean within the organization The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 20. Lean Lessons From Others (contd) The top leaders need to lead lean Be prepared for the front-end investment Lean is not just for manufacturing There is a lean roadmap, but no lean cookbook You cannot just copy another lean organizations journey The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 21. Why Get Lean? Productivity improvements of 20-50% Set-up time reductions of 60-80% Inventory reductions of 40-75% Floor space reductions of 30-50% Reduced quality defects by 50-100% Improved safety performance of 30-60% More efficient office procedures Survival in the marketplace The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 22. Actual Lean Examples Florida hospital system reduced accounts receivable to 58 days from 89 days (35%) Midwest healthcare system reduced phone triage to 28 seconds from 89 (69%) University clinic increased the number of available radiology scans by 20% Municipal Fire Department increased the number of annual fire inspections by 23% Midwest manufacturer reduced inventory to $29,000 from $95,000 (69%) The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 23. Policy What Deployment You Lean Efforts See Operations Policy Deployment A process for focusing a companys resources on those few critical objectives that improve execution and drive growth. The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 24. Next Steps Business Assessment Call to Action and Commitment Align with Policy Deployment Training and/or Sensei Resource Allocation Process Selection Begin the Journey Implement New Metrics Review Progress and Adjust as Needed The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 25. You must TRANSFORM the organization to avoid snap-back to the old ways or dont even bother to start. The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 26. VerseOne Because Custom solutions never a one-size fits all or off-the- shelf solution Attentiveness each client represents a greater portion of business to us than to a large firm Flexibility we can make changes and react to our client needs without contacting corporate Fee and Value due to lower overheads, you will receive outstanding value for reasonable fees Risk Free Guarantee you must be satisfied with our results during the entire engagement or there is no fee The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 27. VerseOne orchestrating your LEAN solutions VerseOne Inc. 708-301-5566 Homer Glen IL 920-882-1474 Appleton WI 877-301-4595 Toll Free [email protected] www.verse1.net The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 28. Thank You The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 29. 5S Examples After 5S - Cleaned, organized Before 5S and drawers labeled (less time and frustration hunting) The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited. 29
  • 30. Value Stream Mapping Current State (This material is taken from LEI source material and belongs to Lean Enterprise Institute, Inc., who owns its copyright.) The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 31. Value Stream Mapping Future State (This material is taken from LEI source material and belongs to Lean Enterprise Institute, Inc., who owns its copyright.) The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 32. Spaghetti Diagram The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 33. Visual Management The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 34. Error Proofing The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 35. Standard Work The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 36. Set-up Reduction Also called: Quick Changeover The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 37. Cellular Flow CHARACTERISTICS Source inspection Point of use storage Simplified handling Visual goals & metrics The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 38. Jidoka Providing machines and operators the ability to detect when an abnormal condition has occurred and immediately stop work. This enables operations to build-in quality at each process. Sometimes called automation with human intelligence. The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 39. Production Preparation Process (3P) The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 40. Just In Time/Pull (JIT) Schedule based Work in process inventory level (hides problems) Unreliable Capacity Scrap Vendors Imbalances Consumption based Unreliable WIP Capacity Scrap Vendors Imbalances The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 41. Training Within Industry (TWI) Job Instruction Training (JI) teaches supervisors how to quickly train employees to do a job correctly, safely, and conscientiously. Job Methods Training (JM) teaches supervisors how to continuously improve the way jobs are done. Job Relations Training (JR) teaches supervisors how to develop and maintain positive employee relations to prevent problems from happening and how to effectively resolve conflicts that arise. The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 42. Total Productive Maintenance The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.
  • 43. Kaizen Events Three to five day intense team efforts Elements of a process typically addressed are: Waste and Errors Inventory and Flow Measurements Process management End with a report out to management The unauthorized copying, showing, or distribution of this copyrighted material without the expressed written permission of VerseOne, Inc. is 2008 VerseOne, Inc. strictly prohibited.