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“Lean – Key to World Class Organization”

Adding Value In Totality !!

 How to make

Organizations

Attain World Class

efficiencies ?

Creating A Lean Management System through Lean

How do we get our cart (operations /factory)
moving ??

Hard Work ?
More Employees ?
Better Machines ?

What is really stopping the cart from moving ?

 Objective

“Organization As a Showroom”

Garden Green outside & Hospital Clean inside

• Education on 5S and Team work to all

• Involvement of Associates in improvements

• Better ambience and improved morale

• Continuous process of Organisational learning of 5S

• Focus & Enhance - PQCDS&M.

KAIZEN (Original Definition)

= KAI = CHANGE

= ZEN = GOOD
(FOR THE BETTER)

= KAIZEN =
CONTINUAL IMPROVEMENT
Lean - What is it ?

Lean – Continual Improvement (at)

Gemba – the ‘real place’/ the work place.

Lean helps organization focus & improve:

- Productivity
- Quality Using Lean tools / paradigms
- Cost Which in turn focuses on MUDA
- Delivery or Waste Elimination !
- Safety
- Morale

Assist ….. attain World Class Organisation

 Lean
focuses on 3Ps

Process
Improvements

People Physical
Involvement Workplace
Improvements

The final objective being reforming our

ORGANIZATIONS…
Basic Concepts
 Basis of Lean
Activity = Useful work + Wasteful work

Activity = Work + Muda

The essential notion:
•All work can be improved
•All work processes contain waste
•Reducing or eliminating waste
enhances customer service.

LEAN attacks MUDA

 Lean focuses on

• Identifying Muda, from our Gemba through the

• Reducing use of specific Lean tools.
(starting with common sense !)
• Eliminating
 Lean also Focuses on : Mura & Muri !

Mura = Inconsistencies
File cleared at times in
1 week or in 5 ! this is Mura.
* At times 6 forms to be filled, Muri = Physical Strain
some times only 2 - Mura • Bend to work?
• Bad chairs (back ache)
• Happens sometimes. • Wasteful walk?– far part locations ?
• Happens some places. • Strain involved in locating !
• Happens to some people. • Repeat tiring action?
All this is Muri
All this is Mura !
 Lean – What Is It ?

1. Process Improvement
2. Observation
3. Use of New Paradigms
4. Short Time
5. Zero Investment
6. Human Development & Empowerment
7. Profits & Savings - Plenty
LEAN is: Focused Improvement.
Improvement is different from Focused Improvement

Improvement Focused Improvement

Paper does not

burn in sunlight

Paper burns
Improvement is like sunlight: Focused improvement concentrates the energy:
• Lot of energy, but dispersed(wasted) • Little energy, but concentrated and aligned
• Small improvements • Enables significant (large) improvements
• Slow progress. • Small time required
• Rapid progress
Using Lean

STOP: if you want to use Lean for making small

improvements continuously.

OK: if Lean for large improvements.

GO: if Lean in strategic areas.

What really is Lean?
Extracting money by eliminating waste
from process is Lean.

Lean is process improvement:

• which is significant (large)
• done in strategically important areas
• speedily
• in sustainable manner

Using data, not opinion.

Using tools & techniques – not anyhow.
 Lean Umbrella

Lean
TFM TPM TQM TSM THM
 Lean is a Journey
The Destination is to become a
‘Lean Manufacturer’
or to attain the status of
World Class Manufacturing (WCM)
Any implemented improvement is Lean

1 3
2
Muda Move to 85% OEE.
Elimination. Mura Equipment to be
Create Elimination. overall effective
‘Flow’ No process (robust)
inconsistencies

Three Pillars Of Lean / Lean Mfg / W.C.M

Lean follows a PDCA & SDCA Cycle

SDCA – Standardize-Do-Check-Act
PDCA – Plan-Do-Check-Act
Towards an efficient and
responsive
Results for Effectiveness &
SDCA Competitiveness

PDCA
SDCA

PDCA

SDCA
Lean Process

A P
Improvement
C D
P: Plan
A S D: Do
C:Check
C D A:Act
A P
C D S: Standardize
D: Do
C:Check
A S A:Act
C D
Time
Who should do Lean??

TOP
MANAGEMENT Innovation
MIDDLE
MANAGEMENT Lean

SUPERVISORS
Maintenance
WORKERS
(Current Status)
Who should do Lean ??
Managers have more scope to do
LARGE Lean improvements; not workers!

TOP
MANAGEMENT Innovation
MIDDLE
MANAGEMENT Lean

SUPERVISORS
Maintenance
WORKERS
(Current Status)

Lean introduction &

direction should be top-down
-- AVCI
Integrating Strategy, Policy Deployment
& Lean
Business World Class Annual Policy Implementation GO
Strategy Manufacturing Deployment Plan
Formulation Strategy

Competitive Vision as Goals

Reality and Targets

Own Reality Catchball PDCA

process

Gap Analysis

2 - Vision for the Future

I
Vision m
p
r 3 - Kaizen Strategy
o
v
Past
e
m Today
e
n 1 - Baseline
t

Time
 Lean Implementation
Change Culture Change System
First First
(Conventional way) (Lean Way)

Where Do You Start - From Top or Bottom?

 Sr.
Mgmt.

Lean Flow
VALUE STREAM
IMPROVEMENT
(Elimination of Muda
between operations)

Lean Process
ELIMINATION OF WASTE
(Elimination of Muda
within operations)

Front
Lines
FOCUS
Who should do Lean??

TOP
MANAGEMENT Innovation
MIDDLE
MANAGEMENT Lean

SUPERVISORS
Maintenance
WORKERS
(Current Status)
 Who should do Lean ??
Managers have more scope to do
LARGE Lean improvements; not workers!

TOP
MANAGEMENT Innovation
MIDDLE
MANAGEMENT Lean

SUPERVISORS
Maintenance
WORKERS
(Current Status)

Lean introduction &

direction should be top-down
-- AVCI
Integrating Strategy, Policy Deployment & Lean

Business World Class Annual Policy Implementation GO

Strategy Manufacturing Deployment Plan
Formulation Strategy

Competitive Vision as Goals

Reality and Targets

Own Reality Catchball PDCA

process

Gap Analysis

2 - Vision for the Future

I
Vision m
p
r 3 - Kaizen Strategy
o
v
Past
e
m Today
e
n 1 - Baseline
t

Time
 Lean Implementation
Change Culture Change System
First First
(Conventional way) (Lean Way)

Where Do You Start - From Top or Bottom?

 Sr.
Mgmt.

Lean Flow
VALUE STREAM
IMPROVEMENT
(Elimination of Muda
between operations)

Lean Process
ELIMINATION OF WASTE
(Elimination of Muda
within operations)

Front
Lines
FOCUS
 Impact of Lean Implementation

Typical results of Lean workshops have been:

•50~70% reduction in processing time
•20~40% increase in efficiency
•20~40% savings in costs
•40%-60% reduction in errors
•50% release of space
•Significant improvement in team spirit /morale
•Empowering of human resource
•Discovery of new capabilities
5 Golden Principles
Of
Gemba
 The 5 Gemba Principles

1. Go to Gemba first.
Go to the place of Action, the Real Prime Spot where Action Takes Place

2. Check with Gembutsu (e.g.machine, material, failures,

rejects, unsafe conditions, drawings, specifications etc.)
Learn to observe. Do not rely on secondary data. No Solution without
Data & No Data without Observations. Data is important & not opinion.
Use all 5 Senses. This brings Big Radical Paradigm Shift.
 5S the
Foundation
for all other
Lean tools
 5 ‘S’
The Meaning (Japanese) What is involved ? Objective
‘S’
1 ‘S’ Sorting Out - Segregate necessary from unnecessary Saving and
- Remove what is not required Recovering Space
(SEIRI)
- Decide on frequency of sorting
2 ‘S’ Systematic - Arranging in order Minimizing
- A place for every thing and every useful search time
Arrangement
De cluttering the
(SEITON) thing in it’s place.
workplace

3 ‘S’ Spic and Span - Clearing the work place / equipment Inspecting for problems.
(SEISO) - Ensuring –Tip Top condition. Taking corrective
actions, faster .

4 ‘S’ Standardization -Working methodology (procedures and Achieving higher

productivity and better
(SEIKETSU) work instructions)
quality.

5 ‘S’ Self Discipline - Forming the habit Doing it Right first time
and every time
(SHITSUKE) - Training
- Be disciplined
SEIRI - Remove Unwanted Items

USD 200,000 released

by SEIRI alone.
Cash flow improved!
 1st, 2nd & 3rd ‘S’ in Action

Seiri, Seiton & Seiso

Benefits –
• Easy Traceability
• Simple Monitoring
• Reduced Inventory
Table Drawer

Engineering Store
Oil Storage

85% 75%
Marking Reference Materials
with an Oblique Line
 Seiketsu & Shitsuke
Visual Management

Tent card placed to

indicate that mould
has been taken for
production.
 FIVE Ss ARE THE
FIVE PILLARS OF A VISUAL WORKPLACE
5 Ss comprise the basic civilization that
protects corporate organisms from the
ravages of a changing environment. Not
only are the 5 Ss the foundation upon
which a company must stand to survive
…. Companies truly intent on staying
ahead of competition must make the 5
Ss their first step.
----Hiroyuki Hirano
 At a very fundamental level

applications of LEAN concepts

do not differ…irrespective of manufacturing or services.

The tools are the same,

It is NOT what you do that really matters,

But how you DO it, matters the most !

Implement Lean in your Gemba with..

1. Energy / Vigor
2. Participation
3. Sustained follow-up
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