Getting Started with Lean Process Management

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Getting Started with Lean Process Management

Getting Started with Lean

Process Management

Employees to focus on customers &

improve competitiveness, profitability, & the way

business is done.

The go-to organization for manufacturing & advanced technical education, best practices

& resources supporting the high performance

skilled workforce for Florida's manufacturing

sectors.

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Getting Started with Lean Process Management

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Objectives Today

 Provide hands-on opportunity to learn &

implement Lean Process Management principles & techniques

 Increase ability to identify Lean opportunities  Emphasize importance of involvement

 Understand next steps  Learn and have fun

Introductions

- Your name

- Your job

- Lean knowledge or experience

- Expectations?

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Getting Started with Lean Process Management

Pre-Quiz

Focus of Lean Improvement

Reduction of Process Cycle Time

& Increasing FLOW

by systematically

eliminating waste

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Getting Started with Lean Process Management

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Reduction of Cycle Time

“

“One of the most noteworthy accomplishments One of the most noteworthy accomplishments in keeping the price of Ford products low is the

in keeping the price of Ford products low is the

gradual shortening

gradual shortening of theof theproduction cycle. The production cycle. The longer an article is in the process of

longer an article is in the process of

manufacture and the more it is moved about,

-- Henry Ford, 1926 Henry Ford, 1926 the greater is its ultimate cost.

the greater is its ultimate cost.””

Problem-Solving Mindset

“…You have to address employees’

fundamental way of thinking.“

-

Fujio Cho

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Getting Started with Lean Process Management

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Three Principles of Lean



Frequently forgotten…resulting in failure

of lean initiatives

–

Lean is about people, not techniques

–

Lean is a mind-set, not a toolset

–

Lean is a journey, not a destination

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Process

 A designed sequence of operations using

space, material, information or other resources, to produce an outcome

 All work is the result of some process

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Getting Started with Lean Process Management

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Typical Benefits of Lean

Lead Time Reduction

0 25 50 75 100% Improvement Productivity Increase WIP Reduction Quality Improvement Space Utilization

What is Waste?



Waste

is anything more than the

minimum of equipment and tools,

materials and parts, space, and time

needed to

add value

to a product

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Getting Started with Lean Process Management

Adding Value



Waste is Non-Value-Added

 Not something our customer is willing

to pay for

 Occasionally, we recognize waste we

can’t eliminate…

…We call that Business Necessary:

 Required for running the business

 Gov’t required: FDA, FAA,

USCG, etc.

Eight Wastes

Over processing  Excess movement of materials & tools



Defects & rework



Excess work in process inventory



Excess finished inventory



Excess motion by people



Waiting time



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Getting Started with Lean Process Management

5%

Non-value added

How Much Waste is in our

Processes?

A typical process includes up to 95% non–value

added waste

Waste is Just a Symptom

 Revealing waste tells us we have process

problems

 Revealing waste starts us on the road to

identifying root cause problems to be

resolved

 We must find the root causes to solve

process problems to eliminate waste

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Getting Started with Lean Process Management

Waste Impact on

Process Capacity

Capacity is

consumed by waste

Productive Use of Resources: Value-Added Non-Productive Use of Resources: Non- Value-Added Productive Use of Resources: Value-Added Released Capacity

Eliminating waste

releases capacity

Benefits Spun Off from

Increased Flow

Financial Returns Financial Returns Cash Flow Cash Flow Capacity Capacity Operating Costs Operating Costs

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Getting Started with Lean Process Management

Climb to Continuous

Improvement

Standardization Process Layout Dynamic Scheduling Total Productive Maintenance Cellular Flow Pull Quick Changeover Point of Use One-Piece Flow Collaboration Quality at the Source Visual Management Workplace Organization Continuous Improvement Workforce Engagement

Six Sigma Tools

Round 1:

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Getting Started with Lean Process Management

Climb to Continuous

Improvement

Six Sigma Tools

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What Is Standardization?

Elements of a Standardized Process; a clear

understanding of:

 Sequence of Activities; value-added steps  User Demand; the demand for out put from

the process

 Standard Material; the minimum input material

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Getting Started with Lean Process Management

Climb to Continuous

Improvement

Six Sigma Tools

Workplace Organization

(5S)

 The 3S:

 Sort – what is needed

 Straighten – what must be kept  Shine – what remains

 To maintain the 3S:

 Standardize – stick to the rules  Spread – sustain the routine

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Getting Started with Lean Process Management

Climb to Continuous

Improvement

Six Sigma Tools

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Use of visual tools & signals to:

 Simplify & speed up the communication of

information to operators & managers

Help with speedier & more accurate

decision-making

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Visual Management

 Translates critical requirements into visual

stimuli

 Creates environment that enhances employee commitment

 Presents key data & information through use of

sensory messages

 Provides mechanism for continuous

improvement through employee engagement & improved information sharing

Climb to Continuous

Improvement

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Getting Started with Lean Process Management

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Process Layout

Layout is one of several critical factors to

throughout the process

Round 2:

Fundamentals

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Getting Started with Lean Process Management

Climb to Continuous

Improvement

Six Sigma Tools

Teamwork & Improvement

 Communication within & between teams

essential for collaboration AND

 Collaboration & team member involvement

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Getting Started with Lean Process Management

Communication Exercise

Team Evolution to

High Performing



Communication



One-way



Two-way

• Engaged two-way

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Stages of Team Evolution

Form

Storm

Norm

Perform

Workforce & Management:



Promote involvement; everyone gives

ideas; participates in decisions



Seek new skills



Experiment & learn from mistakes



Share responsibility for change



Drive continuous improvement

Working

Environment to Support

Collaboration

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Getting Started with Lean Process Management

Climb to Continuous

Improvement

Six Sigma Tools

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Point of Use (POU)

 Making available & storing

Materials, tools, & instructions

Where & when they are needed

 Replenishing materials through visual

management

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Getting Started with Lean Process Management

Climb to Continuous

Improvement

Six Sigma Tools

Build Quality into our Process

By…

 Designing for manufacture  Inspecting at the Source:

– Ensuring specs met at every process step;

learning more about how customer uses end product; standardizing our process;

communicating; giving feedback

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Inspection at the Source

 The product inspected by each operator before passing to next operator

 Each operator inspects before adding value

To conduct inspection operators must be prepared:  The right documentation

 The right training and support  The right tools

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Mistake Proofing

Low-cost, reliable device or approach to prevent & detect defects

Prevent production of defects

Make it harder to do wrong than to do right Japanese concept :

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Getting Started with Lean Process Management

Climb to Continuous

Improvement

Six Sigma Tools

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Getting Started with Lean Process Management

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 Traditional processes depend on large batch processing because of the myths…

– Change-over times can’t be improved – WIP is good

Large Production Lots

Batch Production

A

B

C

10 Minutes 10 Minutes 10 Minutes First Piece = 21 Minutes

Entire Batch of 10 pieces = 30 Minutes

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Getting Started with Lean Process Management

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One-Piece Flow

The concept of moving one unit at a time

between operations

Make one, move one

One Piece Flow

A

B

C

1 Minute 1 Minute 1 Minute First Piece = 3 Minutes Entire Batch of 10 pieces = 12

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Getting Started with Lean Process Management

Climb to Continuous

Improvement

Six Sigma Tools

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Cellular Flow makes it possible for people & machines to work together efficiently, often

organizing a process in the shape of a “U” or a “C”.

Cellular Flow

Operation 5 Operation 5 Operation 6 Operation 6 Operation 4

Operation 4 Operation 3_{Operation 3}

Operation 2

Operation 1

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Getting Started with Lean Process Management

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Cellular Flow

We build cells to improve FLOW of Materials & Information

 FLOW is a direct link (information) between customer & supplier

 FLOW is the movement of materials triggered by

customer

 Process inputs & outputs are balanced

Building a Cell

We must know:

 Product groupings

 Demand on our process: Takt time

 The work sequence

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Getting Started with Lean Process Management

=

10 Sec/Unit Takt Time =

Understand Demand on Our

Process: Takt Time

Takt Time = Demand rate

Cycle Time

Takt Time = Minimum # of People Takt Time = Work Time Available

Number of Units Sold

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Build the Cell

 Use Lean concepts

 Small Production Lot Size (1)

 Flexible layout

 POU

 Visual Management

 Build a Virtual Cell if necessary

Operation 5 Operation 5 Operation 6 Operation 6 Operation 4 Operation 4 Operation 3 Operation 3 Operation 2 Operation 2 Operation 1 Operation 1

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Getting Started with Lean Process Management

Climb to Continuous

Improvement

Six Sigma Tools

Push vs. Pull Systems

 Push System

 Production based on forecasts & schedules

 No connection between customer demand & what process produces

 Pull System

 Process production linked to customer demand  Customer needs converted into

production orders thru visual signals

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Getting Started with Lean Process Management

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Pull System Flow Diagram

Production Line FG Information Flow Supplier Raw Matl Process A Process A Process_B Process B Process_C Process C Customer Material Flow Kanbans 59 59 © 2011 POS-IMPACT LLC

Round 3:

The Transformation

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Post-Quiz

Value Stream Mapping

Prioritized Opportunities

Rapid Improvement Event

Lean Process Management

Tools

Six Sigma Tools

How To Apply the Lean

Concepts

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Getting Started with Lean Process Management

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Value Stream Mapping

Value stream mapping is a Lean Process

Management tool & technique used to

analyze the process flow currently

required to bring a product or service to

a consumer

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Also known as Kaizen Event… “To Make Better”

 Structured process to address area of opportunity

 Team of people who use Lean ideas to eliminate process waste

 Focus on low-cost / no-cost solutions

Small Steps…Big Changes

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Key Success Factors

 Unyielding leadership commitment & support  Observe outside successes & failures