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Presented By: Todd Wiese, Partner Adaptive Business Solutions, LLC W175 N11163 Stonewood Dr. Ste 214 Germantown, WI 53022

Understanding Lean &

Six Sigma

(2)

Participant Introductions

• Show of hands: Any formalized

exposure to continuous

improvement philosophies such as Lean or Six Sigma?

• Fist to five: Level of

understanding of: • Lean

(3)

About Your Moderator

Email: [email protected] Phone: (262) 349 - 5671

Fax: (312) 268 - 6119

Mail: Adaptive Business Solutions W175N11163 Stonewood Dr. Suite 214

Germantown, WI 53022

Contact Us

Todd Wiese

• GE Healthcare; Lean Six Sigma Master Black Belt

• Rockwell Business CI Champion

• 15+ years Supply Chain, Operations, Finance, and Engineering experience • Lieutenant, U.S. Navy; Submarines • BS Engineering; U.S. Naval

Academy

• MBA; Kellogg School of Management, Northwestern

(4)

Goals & Objectives

• Provide basic understanding of Lean thinking.

• Understand purpose of some of the techniques and approaches to creating value.

• Importance of system-wide thinking. • Your goals…

(5)

“The Machine That Changed the World.”

Origins of the term “Lean”

•Published 1990 by MIT’s International Motor Vehicle Program (IMVP) leaders (Womak, Jones, and Roos)

•5-yr international study of the auto industry

•Evaluation of all industry delivery, quality, and cost metrics.

•Analysis of mass vs. craft vs. hybrid (Lean) production systems

(6)

“Lean production…is ‘lean’ because it uses less of

everything compared with mass production – half the human

effort in the factory, half the manufacturing space, half the investment in tools, half the

engineering hours to develop a new product in half the time.”

The Machine that Changed the World Womack, Jones, Roos, ©1990, pg. 13

“The most Japanese of Japanese companies…”

(7)

Lean is not…

Lean Preconceptions / Overview

We’ll spend the next hour learning about Lean thinking.

• Simply a cost cutting effort; a way to reduce headcount. • A function or program; it’s the way we do business.

• An immediate solution; requires patience.

• Just for operations; must avoid sub-optimizing the value stream.

• A ground up effort; requires focus and support at all levels. • Simply a tool kit to be used before fixing the basics.

(8)

Preconceptions / Overview Summary

Lean-thinking organizations, like Toyota, systematized all of these concepts and more, and:

• Applied them in a disciplined manner to all aspects of their business

• Created a culture that enables these concepts to thrive. • Problem Solving………Six Sigma, 8D

• Reducing Waste………e-tools, software • Employee Involvement……….Quality circles

• Mistake Proofing………Three prong outlets • Visual Management…………..Color coding

• Continuous Improvement…….Reengineering What is new…

AND

(9)

Exercise: Defining Lean and Six Sigma

Exercise objective: Understand

participants’ level of knowledge and understanding of both Lean and Six Sigma.

On one side of a note card, explain how you would describe Lean and Six Sigma to someone.

(10)

Adaptive Theory of a Lean Thinking Organization

A Lean organization is one that strives to constantly improve the value proposition to their customer(s) by:

• Supporting their employees in value creation by

providing systems, resources, and development AND

• Building relationships with both customers and

(11)

Elements of a Lean Organization Lean Organization People Development / Improvement Product Development / Improvement Process Development / Improvement Production System Data / Information Availability Values / Beliefs Leadership Systems / Equipment Availability Mission / Vision Strategy / Goals Op Mechs / Metrics HR Strategy A system, not simply a set of tools… Most want to focus here!

(12)

Elements of a Lean Organization

The system must move synchronously, at the optimal speed, in the same, correct direction

(13)

Toyota valued at 2-3 times the competition.

Toyota Financial Performance As A Benchmark

Firm Established ’07 Revenue 5-yr CAGR ’07 Earnings 5-yr CAGR ’07 Market Value ($B) As of 2/7/13 Mkt Val ($B) Ford 1903 $172.5B -$2.9B 10.9 49.7 -0.50% 0.00% GM 1897-1908 $181.5B -$38.7B 7.4 44.3 -0.70% 0.00% Nissan 1914 $86.7B $5.8B 32.7 47.0 (*as Datsun) 13.40% 5.40% Honda 1937 $104.0B $6.3B 59.7 68.0 (*auto prod in ’48) 8.10% 11.60% Total -$29.3B 110.7 209.0 Toyota 1937 224.63 15.9 157.5 162.0 12.90% 9.30%

(14)

Improvement is a Key Element to a Lean Organization Lean Organization People Development / Improvement Product Development / Improvement Process Development / Improvement Production System Data / Information Availability Values / Beliefs Leadership Systems / Equipment Availability Mission / Vision Strategy / Goals Op Mechs / Metrics HR Strategy • A structured, data driven, problem solving methodology • Critical element to a Lean-thinking organization

(15)

Six Sigma Defined

Six Sigma is a problem-solving methodology that is:

• Standardized • Systematic

• Process oriented • Data-driven

• Based on scientific method

Goal: Ensure identified process/product produces desired output/performance level.

(16)

• Problem/Question

• Observation/Research • Formulate a Hypothesis • Experiment

• Collect and Analyze Results • Conclusion

• Communicate the Results

Improving Performance with the Scientific Method

Everything you needed to know about problem

(17)

How Do Lean and Six Sigma and Project Management Interact?

Lean

is how you run your business

Six Sigma

is a method for solving your complicated

problems

Project Management

is how you complete

your continuous improvement projects

(including 6 Sigma) on time and budget

(18)

• WATA

• No “get rich quick” schemes, silver bullets, or cookie-cutter

solutions…we’re not offering any.

• 73 days vs. 73 years at Toyota…You must practice to become proficient. • Not about becoming Toyota; rather

understand what they did and why, and how to apply principles to your

situation.

• Simple ≠ Easy Disclaimers

(19)

In order to understand what makes Lean-thinking companies so successful… Lean Thinking you must understand the DNA of the organization.

(20)

Lean Thinking – Understanding the Customers

Kaizen (Continuously Improving )

Flexible,

Motivated Employees

Maintaining & Improving the Standards Key Elements / Methods Critical Activities Goals & Desired Results Base Values & Core Philosophies Customer First …Always Respect for Community and the People Constantly seek to eliminate waste

The Customer The Employee The Company

Highest Quality Lowest Cost Shortest Lead-Time Work Satisfaction Job Security Consistent Income Market Flexibility Profit

(from cost reduction)

Foundation J I T J I D O K A

(21)

The Foundation For Toyota’s Success

Kaizen (Continuously Improving )

Flexible,

Motivated Employees

Maintaining & Improving the Standards Key Elements / Methods Critical Activities Customer First

…Always Respect for Community and the People

Elimination of Waste Constantly seeking…

The Customer The Employee The Company

Highest Quality Lowest Cost Shortest Lead-Time Work Satisfaction Job Security Consistent Income Market Flexibility Profit

(from cost reduction) J I T J I D O K A

Standardization / Problem Solving

Who is important and how do I satisfy them… •3 “customers”…end-users, employees, shareholders. All must be considered. •Understand how to deliver value for each customer

(22)

1. Truly understand who all your customers are, and what they value. (What you need to believe)

I. External Customer

II. Employees III. The Company

2. Continuously strive to maximize value by identifying and removing waste (process improvement). (How

you need to behave)

I. Creating a system to identify problems II. Managing the system

III. Solving Problems Lean Thinking Principles

(23)

Maximize value:

Decrease costs by reducing waste

Worth

(To The customer)

Customer Value

Maximize value by focusing on both increasing worth and reducing costs

Increase worth by listening to the customer; understand what they

are willing to pay for

Lean Thinking – Maximize Customer Value

= Price

(24)

Assume:

Carpenter’s hourly rate = $50/hour

Time savings per house = 50 hours (1 house only)

Benefit derived from pneumatic nail gun per house = $2500 Lean Thinking – Maximize Customer Value

(25)

- Benefit Derived by Customers ($2500)

- Selling Price ($2000)

Value

- Cost to produce ($1500)

Customer Value Captured

Supplier Value Captured

To stay in business, both must find value. To be competitive, we must create more customer value than our competitors

Total Value Created

(26)

1. Truly understand who all your customers are, and what they value. (What you need to believe)

I. External Customer

II. Employees

III. The Company

2. Continuously strive to maximize value by identifying and removing waste (process improvement). (How

you need to behave)

I. Creating a system to identify problems II. Managing the system

III. Solving Problems Lean Thinking Principles

(27)

Employee & Community Value

Saying you are committed to your employees and the community is easy. Actually showing your commitment is tougher.

Organization Jobs

1. General Motors: 107,400

18. Ford: 15,900

25. Chrysler 13,600

US News & WR. 8/26/08

“As the U.S. auto industry sheds workers, and even Nissan offers buyouts, Toyota is sticking by its proud—and expensive—tradition of no layoffs during hard times.”

(28)

Employee & Community Value

Other examples:

• Helped start and sponsor non-profit dedicated to support local school district

• Provides technical, cultural, and leadership training to elementary, middle, and high school groups.

• HR ratios: ~1-20.

• Extensive employee development & feedback. • Living the “Golden Rule”.

(29)

1. Truly understand who all your customers are, and what they value. (What you need to believe)

I. External Customer II. Employees

III. The Company

2. Continuously strive to maximize value by identifying and removing waste (process improvement). (How

you need to behave)

I. Creating a system to identify problems II. Managing the system

III. Solving Problems Lean Thinking Principles

(30)

Price = Cost + Profits

Traditional Pricing Model…

But rather…

Maximizing Shareholder Value

(31)

“(In order to compete), we must build cars at 1/10th the cost

(of American cars).”

(Set by market)

*True monopolies semi exception

Maximizing Shareholder Value

Profit = Price - Cost

(Shareholder

value) (Our focus)

(32)

Cost =

So we must focus on the NVA activities…the waste!

Value add is necessary…customers pay for it.

Non-value added (NVA) but required…can’t live without it.

Value add activities

NVA but req’d

Removing Waste Is Key To Profitability

NVA activities

(33)

“A ‘revolution in consciousness is

indispensible’…”

Taiichi Ohno; Chief Inventor of the Toyota Production System

(34)

Types of Non-value Add Activity

The “Three M’s”: Muda, Muri, and Mura

Muri = Overburden; placing too heavy a mental or

physical burden on employees or machinery i.e. running at a rate greater than designed capacity

Mura = Unevenness; work unevenly distributed among

employees / process.

(35)

The Eight Wastes Waste (Muda) Defects Over Production Waiting NVA Processing Transportation Inventory Underutilized Employees Motion

(36)

The Eight Wastes

Waste 1 – Defects Defined

Defects Over Production Waiting NVA Processing Transportation Inventory Underutilized Employees Motion

Reworking defects is wasteful; sending them to customers is sinful.

• Can be either a process-related or product defect. • Upsets customers

• Consumes resources • Chokes flow

(37)

The Eight Wastes

Waste 2 – Over Production Defined

Defects Over Production Waiting NVA Processing Transportation Inventory Underutilized Employees Motion

Producing more than the downstream customer immediately needs.

• Ties up working & intellectual capital

• Takes up physical and virtual space

• Hides problems

(38)

The Eight Wastes

Waste 2 – Over Production Examples

Defects Over Production Waiting NVA Processing Transportation Inventory Underutilized Employees Motion Physical Transactional • Producing engineering drawings ahead of time • Running reports ahead

of time.

• Too many copies • Batching parts

• Building / shipping early

• Warehousing / supermarkets

(39)

The Eight Wastes

Waste 3 – Waiting Defined

Defects Over Production Waiting NVA Processing Transportation Inventory Underutilized Employees Motion

• Underutilizes people and equipment

• Slows customer response • Increases lead times

(40)

The Eight Wastes

Waste 4 – NVA Processing Defined

Defects Over Production Transportation Inventory Underutilized Employees Motion

• NVA = Non-value added • Sometimes revered to as

over processing.

• Must explicitly understand customer needs.

Giving the customer more than what they wanted and for which they do NOT find value

NVA Processing

(41)

The Eight Wastes

Waste 4 – NVA Processing Examples

Defects Over Production Waiting NVA Processing Transportation Inventory Underutilized Employees Motion Physical Transactional • Redundant paperwork • Information re-clarification / excess information gathering

• Software features no one • Excessive finishing

• Testing / quality checks • Excessive packaging • Unnecessarily tight

(42)

The Eight Wastes

Waste 5 – Transportation Defined

Defects Over Production Transportation Inventory Underutilized Employees Motion

• Physical or virtual distance between processes

• Requires equipment and time

• Can result in cost i.e. lost or damaged information or material.

• May be necessary; must minimize.

Position operations close together to minimize impact. NVA

Processing Waiting

(43)

The Eight Wastes

Waste 6 – Inventory Defined

Defects Over Production Transportation Inventory Underutilized Employees Motion

• Ties up working capital • Takes up valuable space • Risk of obsolescence and

/ or damage

Lowering inventory levels will help reveal problems. NVA

Processing Waiting

(44)

The Eight Wastes

Waste 6 – Inventory Examples

Defects Over Production Waiting Underutilized Employees Motion Physical Transactional • Gathering or storing information ahead of time. • Job folders • Finished goods • Raw materials • Work in process • Consignment NVA Processing Transportation Inventory

(45)

The Eight Wastes

Waste 7 – Motion Defined

Defects Over Production Transportation Inventory Underutilized Employees Motion

• Movement within the process itself.

• Can cause ergonomic

concerns both in office and on floor.

• Results in wasted cost through inefficient

movement.

Treat associates like surgeons…everything within reach.

NVA Processing

(46)

Waste 7 – Motion Examples

Before After

Using portable ladder to access car and transport tools and equipment. Resulting in excessive trips and safety

issues. Previous observations revealed average 3 trips per hour for

top of car tasks

Fixed platform and tool board reduce up and down travel by 45 minutes per

(47)

The Eight Wastes

Waste 8 – Underused Employees Defined

Defects Over Production Transportation Inventory Underutilized Employees Motion

• People not matched to their value added skills • Not using the intelligence

of the workforce to solve problems.

• Increased cost due to lack of productivity; potential absenteeism.

When you hire a person for their hands, you get the brain for free. Use it!

NVA Processing

(48)

Waste Summary

• Identified from customer point of view.

• Perfection is the

goal…recognize you will never be perfect.

• Continuously challenge your organization to

identify and remove it. If you think you’ve found perfection…that’s your biggest

(49)

1. Truly understand who all your customers are, and what they value. (What you need to believe)

I. External Customer II. Employees

III. The Company

2. Continuously strive to maximize value by identifying and removing waste (process improvement). (How

you need to behave)

I. Creating a system to identify problems

II. Managing the system III. Solving Problems

(50)

Improvement

The most important (and first) step to improvement is…

Recognizing you have a problem!

(Problem Consciousness)

(51)

“All we are doing is looking at a time line from the

moment the customer gives us an order to the point

when we collect the cash. And we are reducing that

time line by removing the

non-value added wastes”

Taiichi Ohno, Toyota Production System 1978

Toyota Production System (TPS) Defined

All “Lean” tools / techniques created to highlight waste!

(52)

Elements of a Lean Organization Lean Organization People Development / Improvement Product Development / Improvement Process Development / Improvement Production System Data / Information Availability Values / Beliefs Leadership Systems / Equipment Availability Mission / Vision Strategy / Goals Op Mechs / Metrics HR Strategy A system, not simply a set of tools… Most want to focus here!

(53)

A Benchmark Foundation / System

Kaizen (Continuously Improving )

Flexible, Motivated Employees Maintaining & Improving the Standards Key Elements / Methods Critical Activities Goals & Desired Results Base Values & Core Philosophies Customer First …Always

Respect for Community and the People

Constantly Seek to Eliminate Waste

The Customer The Employee The Company

Highest Quality Lowest Cost Shortest Lead-Time Work Satisfaction Job Security Consistent Income Market Flexibility Profit

(from cost reduction)

Foundation J I T J I D O K A

Standardization / Problem Solving

An principled approach built on the right values…

(54)

Lean Techniques 5S Kaizen Pokayoke Andon Kanban Standardized Work Single Piece Flow Visual Management Takt Time VSM

Some of the Lean

“tools and

techniques” used to

identify and remove

(55)

5S Kaizen Pokayoke Andon Kanban Standardized Work Single Piece Flow Visual Management Takt Time VSM

• Sort…only what you need

• Set-in-place / Simplify…find it quickly • Shine…keep it clean

• Standardize…consistent approach • Sustain…discipline and follow-up Lean Techniques – 5S

Effectively organize to identify abnormal conditions

(56)

Before Kaizen After Kaizen

5S Example

•Top Shelf – Safety valve kits •2ndshelf – BOV

kits

•Lower shelves – Small O-rings and less frequently used kits

•Color coded by gasket type and sorted by valve type

•Positioned for good ergonomics

(57)

•Andon simply means “light”

•Provides visual status indication

•Used to immediately alert team to abnormal condition

Lean Techniques - Andon

5S Kaizen Pokayoke Andon Kanban Standardized Work Single Piece Flow Visual Management Takt Time

(58)

The Heartbeat of the Business

Lean Techniques – Takt Time

5S Kaizen Pokayoke Andon Kanban Standardized Work Single Piece Flow Visual Management Takt Time VSM

•Derived from the German “taktzeit” (clock cycle)

•Matches process output rate with customer (downstream process) demand

•Based on time available to conduct the process and the rate at which customer is demanding output

(59)

Lean Techniques - Kaizen 5S Kaizen Pokayoke Andon Kanban Standardized Work Single Piece Flow Visual Management Takt Time VSM

•Kai (“Change”) + Zen (“Good”)

•“Bunts and singles”; small, but incremental and continuous (daily) improvements by everyone

Performance Process owner established Goals set Process mapped; work standardized Dedicated improvement event #1

“On the fly” change Desired future state Performance target Incremental Approach to CI

(60)

Lean Techniques - Kanban 5S Kaizen Pokayoke Andon Kanban Standardized Work Single Piece Flow Visual Management Takt Time VSM

•Means “visual card” •Inspired by the

concept of the

American supermarket •Customer gets what they need, in the time needed, while

ensuring the store stocks only what will

be used prompts the shelf to be refilled. After Supermarkets: An empty spot

enough refills, the store generates a replenishment request…

(61)

Lean Techniques – Poka-yoke 5S Kaizen Poka-yoke Andon Kanban Standardized Work Single Piece Flow Visual Management Takt Time VSM

Can you identify the poka-yoke? •Creating a “fail

safe” or mistake-proof method to guarantee desired process output.

(62)

Lean Techniques – Standardized Work 5S Kaizen Pokayoke Andon Kanban Standardized Work Single Piece Flow Visual Management Takt Time VSM

Acknowledge the guest

Recognize special guests / offer to enroll

Recap preferences

Info in the reservation correct?

Verify method of payment

Acquire keys

(63)

Batch Single Piece Flow

From: The Toyota Production System

Catches Defects too Late

• How many more do you have? • Where are they in the process? • What is the root cause?

Catches Defects Immediately

• You only have one

• You know where it occurred

• Resolve the root cause immediately

Flow where you can, pull when you can’t Lean Techniques – Single Piece Flow

5S Kaizen Pokayoke Andon Kanban Standardized Work Single Piece Flow Visual Management Takt Time VSM

(64)

Tell at a glance if activities are behaving as expected; a communication tool.

Lean Techniques – Visual Management

5S Kaizen Pokayoke Andon Kanban Standardized Work Single Piece Flow Visual Management Takt Time VSM

(65)

See and understand material & information flow across the entire value stream

Lean Techniques – Value Stream Mapping

5S Kaizen Pokayoke Andon Kanban Standardized Work Single Piece Flow Visual Management Takt Time VSM

(66)

Importance of a Value Focus

One more question…

(67)

5S Kaizen Pokayoke Andon Kanban Standardized Work Single Piece Flow Visual Management Takt Time

Remember the lean techniques?

Can we make them more effective? Are they self sustaining?

Are they independent? Importance of a Value Focus

(68)

We can make them more effective if

we understand that….

Yes!

Lean is a culture and business philosophy

Importance of a Value Focus

(69)

Relationships Value People Axioms 5S Kaizen Pokayoke Andon Kanban Standardized Work Single Piece Flow Visual Management Takt Time Techniques Just-in-time (Flow) Autonomation (Jidoka) Stability Perfection Continuous Learning Principles Significantly influenced Is there a natural flow?

(70)

Value Relationships Value People Just-in-time (Flow) Autonomation (Jidoka) Stability 5S Kaizen Pokayoke Andon Kanban Standardized Work Perfection Continuous Learning Single Piece Flow Visual Management Takt Time

Axioms Principles Techniques

Significantly influenced

Importance of a Value Focus

Are any of these more important than

(71)

Just-in-time (Flow) Autonomation (Jidoka) Stability 5S Kaizen Pokayoke Andon Kanban Standardized Work Perfection Continuous Learning Single Piece Flow Visual Management Takt Time

Axioms Principles Techniques

What if we aren’t focused on value? Relationships People Value Significantly influenced

(72)

Just-in-time (Flow) Autonomation (Jidoka) Stability 5S Kaizen Pokayoke Andon Kanban Standardized Work Perfection Continuous Learning Single Piece Flow Visual Management Takt Time Axioms Relationships People Profits Significantly influenced What if we aren’t focused on value? Techniques Principles

(73)

Just-in-time (Flow) Autonomation (Jidoka) Stability 5S Kaizen Pokayoke Andon Kanban Standardized Work Perfection Continuous Learning Single Piece Flow Visual Management Takt Time People Profits Competition Significantly influenced What if we aren’t focused on value? Techniques Principles Axioms

(74)

Just-in-time (Flow) Autonomation (Jidoka) Stability 5S Kaizen Pokayoke Andon Kanban Standardized Work Perfection Continuous Learning Single Piece Flow Visual Management Takt Time

Axioms Principles Techniques

Profits Competition Corporation What if we aren’t focused on value? Significantly influenced

(75)

Autonomation (Jidoka) Stability 5S Kaizen Pokayoke Andon Kanban Standardized Work Perfection Continuous Learning Single Piece Flow Visual Management Takt Time Techniques Principles Profits Competition Corporation Just-in-case Significantly influenced Axioms What if we aren’t focused on value?

(76)

Autonomation (Jidoka) Stability 5S Kaizen Pokayoke Andon Kanban Standardized Work Good enough Continuous Learning Single Piece Flow Visual Management Takt Time Techniques Principles Profits Competition Corporation Just-in-case Significantly influenced Axioms What if we aren’t focused on value?

(77)

Automation Stability 5S Kaizen Pokayoke Andon Kanban Standardized Work Good enough Continuous Learning Single Piece Flow Visual Management Takt Time Techniques Principles Profits Competition Corporation Just-in-case Significantly influenced Axioms What if we aren’t focused on value?

(78)

Automation Stability 5S Kaizen Pokayoke Andon Kanban Standardized Work Good enough Program of the month Single Piece Flow Visual Management Takt Time Techniques Principles Profits Competition Corporation Just-in-case Significantly influenced Axioms What if we aren’t focused on value?

(79)

Automation My way 5S Kaizen Pokayoke Andon Kanban Standardized Work Good enough Program of the month Single Piece Flow Visual Management Takt Time Techniques Principles Profits Competition Corporation Just-in-case Significantly influenced Axioms What if we aren’t focused on value?

(80)

Automation My way Mess Kaizen Pokayoke Andon Kanban Standardized Work Good enough Program of the month Single Piece Flow Visual Management Takt Time Techniques Principles Profits Competition Corporation Just-in-case Significantly influenced Axioms What if we aren’t focused on value?

(81)

Automation My way Mess Kaizen Pokayoke Assign blame Kanban Standardized Work Good enough Program of the month Single Piece Flow Visual Management Takt Time Techniques Principles Profits Competition Corporation Just-in-case Significantly influenced Axioms What if we aren’t focused on value?

(82)

Automation My way Mess Kaizen Pokayoke Assign blame Kanban Standardized Work Good enough Program of the month Single Piece Flow Visual Management Speed Techniques Principles Profits Competition Corporation Just-in-case Significantly influenced Axioms What if we aren’t focused on value?

(83)

Automation My way Mess Band aide Pokayoke Assign blame Kanban Standardized Work Good enough Program of the month Single Piece Flow Visual Management Speed Techniques Principles Profits Competition Corporation Just-in-case Significantly influenced Axioms What if we aren’t focused on value?

(84)

Automation My way Mess Band aide Pokayoke Assign blame Excess inventory Standardized Work Good enough Program of the month Single Piece Flow Visual Management Speed Techniques Principles Profits Competition Corporation Just-in-case Significantly influenced Axioms What if we aren’t focused on value?

(85)

Automation My way Mess Band aide Rework Assign blame Excess inventory Standardized Work Good enough Program of the month Single Piece Flow Visual Management Speed Techniques Principles Profits Competition Corporation Just-in-case Significantly influenced Axioms What if we aren’t focused on value?

(86)

Automation My way Mess Band aide Rework Assign blame Excess inventory Tribal knowledge Good enough Program of the month Single Piece Flow Visual Management Speed Techniques Principles Profits Competition Corporation Just-in-case Significantly influenced Axioms What if we aren’t focused on value?

(87)

Automation My way Mess Band aide Rework Assign blame Excess inventory Tribal knowledge Good enough Program of the month Batch and queue Visual Management Speed Techniques Principles Profits Competition Corporation Just-in-case Significantly influenced Axioms What if we aren’t focused on value?

(88)

Automation My way Mess Band aide Rework Assign blame Excess inventory Tribal knowledge Good enough Program of the month Batch and queue Search & find Speed Techniques Principles Profits Competition Corporation Just-in-case Significantly influenced Axioms What if we aren’t focused on value?

(89)

Automation My way 5S Kaizen Poke yoke Andon Kanban Standardized work Good enough Program of the month Single piece flow Visual management Takt time Techniques Principles Profits Competition Corporation Just-in-case Significantly influenced Axioms Can an organization only use the

tools & techniques? Importance of a Value Focus

(90)

Automation My way Mess Band aide Rework Assign blame Excess inventory Tribal knowledge Good enough Program of the month Batch and queue Search & find Speed Techniques Principles Profits Competition Corporation Just-in-case Significantly influenced Axioms Yes…but it requires constant emphasis. Conventional organization applying Lean & Six Sigma tools Importance of a Value Focus

(91)

Lean Techniques Lean Principles Lean Axioms <5% of Lean benefits

Do we only want the tip of the Lean iceberg?

(92)

To a conventional organization…

• Lean is using specific techniques to increase productivity. Focus solely on cost.

• Six Sigma is a tool set driven by “Belts” to solve a companies problems.

To a truly Lean organization…

Summary: Conventional vs. Lean Thinking

• Lean is a culture and management philosophy that eliminates waste and creates value for the customer. • Six Sigma is a way of thinking by everyone to solve

(93)

Last Thoughts On Why Organizations Fail To Change

“It is like tasting the best cake you have ever eaten and asking for the recipe. However, when it is time to bake the cake yourself, you

determine that you don’t have the time or patience to follow the recipe exactly so you cut corners. You don’t let mixtures rest over night, you use less expensive ingredients to save money, and you cut the bake time down by a few minutes.

Then, when your cake doesn’t taste as good as the original, you blame the recipe!”

Bill Suycott

(94)
(95)

Contact Us

Adaptive Business Solutions facilitates the adoption of Lean thinking into your organization by integrating with your current culture and delivering the education and coaching needed to enhance and sustain customer, employee, and shareholder value.

For inquiries regarding our services and availability, feel free to contact us via e-mail at [email protected], or contact the managing partners directly:

Todd Wiese W175 N11163 Stonewood Dr.; Suite 214 Germantown, WI 53022 E-mail: [email protected] Cell: (262) 349-5671 Brent Tadsen 126 S. Northwest Hwy Barrington, IL 60010 E-mail: [email protected] Cell: (312) 720-1731

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