Training Script:

Lean Basics
Part I

www.iLeanGO.com

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 TRAINING INFO

General
This training presents the basics of ‘Lean’. It also serves as an introduction to
more detailed subject-specific modules contained in iLeanGO.com

Level: Lean Novice

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Training Plan

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General Lean Tools and

information about methods in a
Lean and nutshell
Continuous
Improvement

Introduction

Introduction to Lean
• A systematic approach to identification and elimination/reduction of in-
process waste (i.e. operations/activities offering no added value) by
means of continuous improvement of processes and pursuing
excellence in an organization in order to meet customer needs (both
internal and external).

• The philosophy of continuous improvement based on eliminating waste

from processes

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The Purpose of Lean
The market regulates the price, but it is Us who shape the costs. The profit
level is the difference between what the market dictates and the level of
costs incurred in the production of specific goods and services.

Profit = Price - Costs

The purpose of Lean is to maximize profit by lowering production costs

The Qualities of Lean

Customer requirements

 In terms of the range of choice of products and assortment

 In terms of timely production, what and how much is needed

Main feature

 Fast lead times and lower demand for materials

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House of Lean
The structure of the House of Lean is based on TPS - Toyota Production
System which emerged after WWII in Toyota company. The concept is
based on defining a strategy to implement “True North” in order to provide
for an appropriate strategic direction for decision-making in business.

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History of Lean

Useful approach in the training

• Gemba - the location where the process takes place

• Genchi Gembutsu – "Go and See” rely on facts instead of opinions. See
the problem with your own eyes

• Kaizen – literally means continuous improvement or change for better.

This approach involves staff at each organizational level

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What customer wants?

Value Added (VA) is generated when 3 conditions are met:

• The product / service is modified

• It is correctly performed first time

• The customer is ready to pay for it

What is MUDA?

• A Japanese word to denote in-process waste

• Anything which does not deliver any added value to a process / service

• The customer does not want to pay for MUDA

• By eliminating MUDA from processes, VA share in the process increases

• There are two types of MUDA:

• NVA (None Value Added) – “pure” waste

• NNVA (Necessary Non-Value Added) – waste necessary to

produce VA

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The nature of work

VA (Value Added) – all operations which add value to a product from the
customer’s perspective

NNVA (Necessary Non-Value Added) – all operations which do not add any
value to a product, but are necessary to produce it (internal transport, etc.)

NVA (Non-Value Added) – all operations which do not add value to a

product from the customer’s perspective (waste!)

Added value in a production process typically accounts for 5%, and only
around 1% in service processes!!!

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Value Stream
Value stream includes full order execution, starting from order placement
with the supplier until final delivery to the customer. The total Lead Time (L/T)
is divided into the time of adding value (VA) and waste (NVA, NNVA).

*Lead Time - time from the moment of placing an order to delivery of a

product or services to the customer (door-to-door)

5 principles of Lean

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 Meet TIM WOOD

Classification of Waste

• The letters represent categories of The Seven Lean Wastes

• Unused Human Potential is also classified as waste.

"T" stands for Transportation

• This waste category concerns the movement of a material/document.

• This waste is classified as NNVA.

• Transportation can mainly be attributed to:

• Non-optimal layout

• Large batch sizes

• Multiple locations where finished goods are stored

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"I" stands for Inventory

• This waste category applies to stocks in-progress or excess stocks which

are directly or indirectly required to deliver products/services.
• This waste can mainly be attributed to:
• Non-optimal layout
• Unbalanced process
• Incorrect workflow
• Bad planning
• Large batch sizes
• Unstable processes
• Long changeover

"M" stands for Motion (unnecessary motion)

• This waste category involves a worker/material whose motion fails to add

value to the process.

• This waste can mainly be attributed to:

• Non-optimal organization of workstand

• Non-optimal work methods

• Non-optimal arrangement of items / tools

at workstand

• Non-optimal layout

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"W" stands for Waiting

• This waste category involves in-process operations which are not

synchronized with one another.
• Operators wait or work more slowly because of lack of synchronization.
• Waiting can mainly be attributed to:
• Unbalanced in-process operations
• Long changeover
• Poor quality
• Delivery in batches
• Bad communication

"O" stands for Overproduction

• This waste category is where more products/services are produced than

required at a given time

• Overproduction can mainly be attributed to:

• Bad planning

• Misguided forecasts

• Large production batches

• Long changeover

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"O" stands for Overprocessing

• This waste category involves the generation of value in a product/service

which is unnecessary from the customer’s point of view.

• Overprocessing can mainly be attributed to:

• Lack of work standardization

• Ambiguous requirements / work standards at a specific workstand

• Unidentified customer expectations (e.g. items are painted that

cannot be seen with the naked eye, for which the customer refuses
to pay)

"D" stands for Defects

• This waste category is a consequence of failure to meet qualitative

requirements by a process.

• Defects result from:

• Absence of training or improper training
• Incorrect work methods
• Poor quality of materials (suppliers)
• Human/machine errors
• Missing materials
• Lack of working instructions (or unclear working instructions)
• Lack of clear product/service specifications
• Lack of quality incorporated in the process

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Waste Walk

"Waste Walk" is a visit to the production area to identify waste that has be
reduced or eliminated

Waste What can you see? How to optimize?

Transport

Inventory

Motion (Unnecessary)

Waiting

Overproduction

Overprocessing

Defects

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 Lean Leader

GEMBA Leader

Leader at Gemba:

– Active involvement in Gemba

– Relying on facts according to the “Go and See” principle (Genchi

Genbutsu)

– Ask “Why?” if any deviations from the standard are detected in

order to identify the root causes

– Solving problems in the PDCA mode

– Showing respect to people (thanking them for reporting problems)

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The Qualities of a Leader

• Does not accept a status quo

• Makes informed decisions according to the “Go and See” principle

(Genchi Genbutsu)

• Takes challenges

• Appreciates team performance more than individual

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accomplishments

• Never stops learning and draws conclusions

• Teaches and guides team members

• Listens and supports team members

GEMBA questions

A visit to Gemba helps capture the actual state of the process and gain
knowledge directly at the source. The cornerstone of a visit to Gemba is to
ask the right questions to employees in the given business area

1. What are you preoccupied with at the moment?

2. Is there a standardization procedure/sheet for the operation you are
currently performing?
3. How are you doing?
4. What is the standard?
5. What is your goal for today?
6. What are the challenges you are faced with when performing this
operation?
7. What are the obstacles that prevent you from doing this operation?
8. What is your next task?
9. When and where can the outcomes of your today’s performance be seen?
10. Who do you talk to when something goes wrong?

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PDCA
Problem-solving approach based on Plan - Do - Check - Act cycle.

Plan actions to solve a problem, including indicators to tell

you if your goal has been reached

Verify whether the set objectives (indicators) have been

met and what still needs to be improved in the solution

Implement pilot corrective measures

Implement the new planned corrective measures. The

developed solution to the problem should be standardized
and distributed among employees as a new mode of action

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 Continuous Improvement

5 steps
1. Define a need
2. Define the as-is status
3. Define the to-be status
4. Define the gap
5. PDCA

By being familiar with the direction and the need for changes, team-based
problem solving and elimination of obstacles, we are able to move from as-
is to to-be in a step-by-step manner.

Each change should be standardized in order to avoid returning to old

habits / modes of action

Finished reading? Go to tasks!

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