Advanced Lean Module

Advanced Lean

LEAN: Delivering value to Customers

with shortest turn around time

Advanced Lean
Agenda

• Lean Overview ~ Recap…..

• Lean Methodology

• Lean Toolkit

• Lean Deployment

• Lean Resources

Advanced Lean
• Lean Overview ~ Recap….
 Lean History
 Lean Explained
 Lean Benefits
 Lean Usage
 Lean Basic Toolkit

• Lean Methodology

• Lean Advanced Toolkit

• Lean Deployment

• Lean Resources

Advanced Lean
Lean History Recap…

TOYOTA

Toyota
Production System

Just-in-Time
• Single Piece Flow
People

Jidoka
• Autonomation
• Pull Production People • Built-In Quality
• TAKT Time Production • Stopping at Abnormalities
People

Heijunka

• Level Loading
• Sequencing
• Stability

Some Key Lean Concepts developed at Toyota

Advanced Lean
Lean Thinking Recap…

A principle driven, tool based philosophy that focuses on

eliminating waste so that all activities/steps add value
from the customers perspective.

Lean Thinking is all about continuous waste elimination !

Imagine Office Processes with:

• Higher Customer Satisfaction
• Shorter Lead Time
• Higher Flexibility
• Higher Quality
• Lower Costs
• Higher Employee Satisfaction

Advanced Lean
Lean Explained Recap…

What is Lean?
A strategy, philosophy, process and leadership approach for operating in a
superior way. Results include:

 Reduced cycle times (product development and production)

 Increased quality

 Reduced costs and inventory

 Increased capacity potential

 Improved customer service

 High levels of worker involvement, ownership and commitment

 Improved financial returns

Lean concepts apply across all processes and industries

Advanced Lean
Lean Explained Recap…

The conventional way: Price = cost +Profit

Increase profit by Price Increase

Price to sell
Bigger profit
Some profit

Cost to produce

But, may lose customers!

Advanced Lean
Lean Explained Recap…

The new way: Price - cost =Profit

Increase profit by Cost Reduction

Price to sell

Some profit Bigger profit

Cost to produce

Advanced Lean
Lean Benefits Recap…

Cycle Time
Wait Time
(non value
add) Before
Work Time
(value add) After
Same work
completed in
less time
Productivity
Cost Customer satisfaction Cost/Chaos
Defects Profit
Lead time Customer responsiveness
Inventory Capacity
Space Quality
Waste! Cash flow
Cycle time
On time delivery

Relentless Focus on Reducing non value adding activities

Advanced Lean
Lean Usage Recap…

Lean vs. Six Sigma

Methodology
Strengths

Define Measure Analyze Improve Control

Lean Six Sigma

Six Sigma • True VOC is • Confirms Data • Data Driven • Few Tools to • Few Tools or
Powerful Quality Analysis Create Change in Direction
Critical X’s

Lean • Value Stream • Standard Work • Observation and • Many Tools for • Communicative
Mapping . . . & Target Intuition Based Driving Change
• Centered on Stable,
Boundaryless & Sheets . . . Analysis . . . PQ,
• Mixed Model Plan, Repeatable Process
Multi-Generational Assumes Data PR, TAKT Time
Kan Ban, Visual
is Good • Automation
Management

Apply Any Tool from your Quality Tool Box

Advanced Lean
Lean Usage Recap…

When do I use Lean?

Six Sigma
Hybrid AWO
Project
Effort

Effort

Effort
Time Time Time

Average ~ 4 Months Average ~ 4 Months Average ~ 1½ Months

Lean For Quick Fixes….Six Sigma For Complex Processes !!

Advanced Lean
Lean Usage Recap…

Lean vs. Six Sigma?

Lean Simple or Wing to wing Breadth
Six Sigma Complex and Focused Depth
Lean Lean Six Sigma Six Sigma/Lean
Helps identify steps that don’t add Identifies problems in Improves the capability of Improving the capability can
value and provides tools to eliminate the flow steps that do add value eliminate additional steps
them

X Energizing
X
Empowering
Lean
Team work,
Success Boundary less / Open mindset GE
Passion for improvement
Factors/ Intuition / Action Values
Impact Customer focus

Lean: Strengthens GE’s journey to Excellence

Advanced Lean
Lean Usage Recap…

So, why do I need Lean?

Principle New ways to think about problems

Toolkit
New problem solving tools and concepts

Process
An improvement methodology focused on action
Solutions
Simple Complex

Known Just Do It!! Lean!!

Causes
Ask an
Unknown Six Sigma
Expert!!

We Need Lean to be Leaner Quickly…Let us start it!!

Advanced Lean
Where are we going…
Advanced tools
Tool
• Creating Continuous
Flow
• Pull production
Basic tools
Tool Challenge
• Value Stream Mapping, • More waste reduction
other lean tools, etc. • Real continuous flow
• Flexible workforce
Old situation Results • Less variance
• Reduction of waste • Less waste
Issues • Learned to ‘see the flow’
• Inventory
• Couple of improvements
• Waiting
• Defects
•…
Remaining Issues
• No real continuous flow
• Still significant amount of
No flow in the value
waste.
stream.

Processes full of waste

Advanced Lean
 Lean Toolkit Recap…

Level 1 Level 2
Reduce Variability
Control the Process
Tool Sophistication

 Value Stream Mapping

Expose the Waste  Standardized Work
 Intro to Continuous Flow
 5S  Intro to Pull Production
 MUDA
 Mistake proofing
 Intro to Value Stream Mapping
 Visual Management

Time / Cultural Maturity

Applying the right tools at the right stage

Advanced Lean
Lean Tools Overview Recap…

A number of Lean Tools and Techniques are available

Actions Tools and Techniques
Bring Organization & 5S Framework
Cleanliness to work
area
Understand Value Stream Mapping
Value
Implement pull- Kanban, Just-in Time
based flow
Reconfigure work U-Shaped Cells
areas
Institute continuous Kaizen Events
improvement philosophy
Benefits
Realized

Appropriate Tools and Techniques are to be used depending on

the need

Advanced Lean
Lean Tools Description Recap…

Exposing the Waste ~ Recap…..

 5S

 7 Wastes

 Mistake proofing

 Visual Management

Advanced Lean
5S Recap…

5S – A Framework to create and maintain your workplace

1. S: SORT (Organization)
Distinguish between what is and is not needed

2. S: SET IN ORDER (Orderliness)

A place for everything and everything in its place

3. S: SHINE (Cleanliness)
Cleaning and looking for ways to keep it clean

4. S: STANDARDIZE (Adherence)
Clearly define Tasks and Procedures

5. S: SUSTAIN/SYSTEMIZE (Self-Discipline)
Stick to the rules, scrupulously

Implementing the 5S is often the first step in Lean

Transformation
Advanced Lean
Muda ~ 7 Wastes Recap…

MUDA – Lean is a way to continuously eliminate waste

The Seven Deadly Wastes Examples Incorrect Layouts of office, factory, etc.
Lack of Proximity Of Machines
Off-line Resources
Motion
Watching Machines Work
Long Set-ups and Lead Times
People
Waiting
Large Batches and Inventory
Planning Full Utilization of Machines and Labor
Overproduction Producing More Goods than Marked Demand

Poor Machine Maintenance

Unnecessary Processing Steps
Processing Longer Lead Times
Process
Long Delays for Troubleshooting
Defects Costly Rework
Dissatisfied Downstream Customers
Inventory High Stocks of Raw Material, WIP, & Finished Goods
Additional Space Requirements
Clutter
Product
Transportation Unnecessary Movement
Extra Handling
“Moving Inventory”

At the end, everything results in Cost!!

Advanced Lean
Mistake Proofing Overview Recap…

• A technique for eliminating errors

• Making it impossible to make mistakes

BEST Elimination
> Eliminate the possibility of error
Replacement Use the highest level
Substitute a more reliable process
>
possible for the
Facilitation
BETTER application.
> Make work simpler to perform
Detection
> Detect the error at the defect source
Mitigation
GOOD > Minimize the effect

It is good to do it right the first time; it is even better to make it impossible

to do it wrong the first time.

Advanced Lean
Visual Management Overview Recap…

Why Visual Management ….

• Demonstrate how we manage our processes …Consistent Communication

• Excite customers/ stakeholders walking the floor … Visual Management

• Transparent view of Performance … Shared Ownership

• Escalate abnormalities… Quicker Resolution

• Decision making @ working level … Empowerment

• Showcase Successes … Create a sense of Pride

Seeing is Believing

Advanced Lean
 • Lean Overview … Recap

• Lean Methodology
 Five Lean Principles

• Lean Advanced Toolkit

• Lean Deployment

• Lean Resources

Advanced Lean
Five Lean Principles
Lean Enterprise
Raw Tier 2 Tier 1 General Customer
Materials Suppliers Suppliers Electric

LEAN OFFICE

LEAN ENTERPRISE

Lean Enterprise: Maximizing Value Wing to Wing

Advanced Lean
Five Lean Principles
Lean Thinking
The Fundamental Objective The Fundamental Insight

Provide perfect value to the  Focus on each product and its

customer through a perfect value value stream rather than
creation process with zero waste organizations, assets, process
in: technologies, and career paths
 Design (concept to customer)  Ask which activities are waste and
which truly create value
 Build (order to delivery)
 Enhance value & eliminate waste
 Service (order to cash)

Lean: Fundamentally Change how we do business

Advanced Lean
Five Lean Principles
Define value in from the 1 2 Map all of the steps…value
customers perspective and Specify Value Map the added & non-value
express value in terms of a Value Stream added…that bring a product
specific product of service to the customer

3
5 Establish Flow
Work to
Perfection
The complete The continuous movement of
elimination of waste so products, services and
all activities create value information from end to end
through the process
for the customer 4
Implement
Pull
Nothing is done by the upstream
process until the downstream customer
signals the need

The Tools get you there…The Principles keep you there

Advanced Lean
Five Lean Principles
1. Specify Value A capability provided to a customer at the right time at an
appropriate price, as defined in each case by the customer.

 Specify value from the standpoint of the end Waste:

customer  Activities that add no value,
add cost and time
 Ask how your current products/services and
processes disappoint your customer’s value  Symptoms; need to find root
expectation: causes and eliminate them
 7 types of waste
 price?
 quality?
Incidental
•Incidental
 reliable delivery? Work
•Work
Pure
•PureWaste
Waste
 rapid response to changing needs?
 fundamental definition of the product? •Pure Waste

Value
•Value

Typical Operation: 1-10% Activities are Value Adding

•Value

Advanced Lean
Five Lean Principles
“Whenever there is a product or service for a customer, there is a
2. Map the value stream. The challenge lies in seeing it.”
Value Stream (Womack, Learning To See)

 Identify all of the steps currently Value stream

required
to move products from order to All activities, both value added and
delivery non-value added, required to bring a
product (or provide a capability) from
 Challenge every step: Why is this raw material (initialization) into the
necessary? Would the customer think arm of the customer
the product is worth less if this step
could be left out? 3 Main Value Streams:
 Many steps are only necessary because 1. Raw material to customer
of the way firms are organized and
previous decisions about assets and 2. Concept to launch
technologies 3. Order to cash

Mapping the VS – See the whole and improve the system

Advanced Lean
Five Lean Principles
3. Establish Flow Line up all steps that truly create value in a rapid sequence
 Continuous movement of  Require that every step in the process be:
products, services and
information through the various  Capable – right every time (6 Sigma)
transactions from end to end in
 Available – always able to run (TPM)
the process
 Flow appears impractical and  Adequate – with capacity to avoid bottlenecks
illogical because we have been and over capitalization (right-sized tools)
trained to think in terms of:
 departments, silos
 batches, queues
 efficiencies and backlogs
Batch Processing – 1 minute per piece Continuous Flow – Make One Move One

A B C A B C
Cycle Time= 30++ Min (weeks) Cycle Time= 12 Min

Applying the right tools at the right stage

Advanced Lean
Five Lean Principles
4. Implement Pull Nothing is done downstream until required upstream

 A system of cascading production  Through lead time compression &

and delivery instructions in which correct value specification, let
nothing is done by the upstream customers get exactly what’s wanted
supplier until the downstream exactly when it’s wanted:
customer signals the need
 At the pull of the customer/next
process

 Using signals (kanbans)

One more
Okay
please!

supplier customer

Pull: Customer Centric

Advanced Lean
Five Lean Principles
5. Work to Perfection A continual cycle of process improvements

 There is always more waste

 People learn and exercise more creativity
 Involve employees in the process, training them as you proceed.

 Continuous improvement leads to innovation

 Use root cause analysis to solve problems promptly and Next Future State
permanently.
 Make objectives visible

Future State

Current State Original State

Continuous Improvement never stops

Advanced Lean
 Lean Advanced Toolkit

Level 1 Level 2
Reduce Variability
Control the Process
Tool Sophistication

 Value Stream Mapping

Expose the Waste  Standardized Work
 Intro to Continuous Flow
 5S  Intro to Pull Production
 MUDA
 Mistake proofing
 Intro to Value Stream Mapping
 Visual Management

Time / Cultural Maturity

Applying the right tools at the right stage

Advanced Lean
Lean Tools Description

Reduce Variability
Control the Process

 Value Stream Mapping

 Standardized Work

 Introduction to Continuous flow

 Introduction to Pull production

<Action Work Out>

Advanced Lean
 Value Stream Mapping

L E A N
ENTERPRISE

Advanced Lean
Value Stream Overview
View of the entire Supply Chain

SUPPLIERS YOUR PLANT OR BUSINESS CUSTOMER TO END USER

TOTAL VALUE STREAM

See the Whole Process from Start to Finish – Wing to Wing

Advanced Lean
Value Stream Overview

• Value Stream Mapping (VSM) is a pencil and paper tool that helps us see
and understand the flow of material and information as a product makes its
way through the Value Stream

• Follow the product or services path starting from the Customer and then
move to the supplier and carefully draw a visual representation of every
process

• Ask a set of key questions and draw a “Future State” map of how value
should flow

• Help us see the sources of Waste and eliminate them

Looking at the process from a customer value perspective

Advanced Lean
Value Stream Mapping
Why Value Stream Mapping is a good place to start your LEAN journey

• it helps you visualize more than just the single-process level, i.e. assembly,
welding, etc.

• it helps you see more than waste it helps you see the sources of waste in your
value stream

• it provides a common language for talking about manufacturing processes

• it makes decisions about the flow apparent, so you can discuss them

• it ties together lean concepts and techniques helps you avoid "cherry picking"

• it forms the basis of an implementation plan

• it shows the linkage between the information flow and the material flow

Forms the Blueprint for a Lean Implementation Plan

Advanced Lean
Value Stream Mapping
VSM Steps
• Identify the Value Stream for every major
Product Family product family/program. Concept to launch -
Order to delivery

Current State • Map the current state - Identify all the actions
Drawing that don’t create value. Challenge every step

• Develop and map concepts for the future

Future State state as a management team
Drawing
3

Implementation • Develop actions and drive toward future state

Plan

After completion….look for other opportunities to improve

Advanced Lean
Value Stream Mapping
Current Future

Template ~ Create your own

Value Stream Map

Identify AWO opportunities from the Value Stream map

Advanced Lean
Value Stream Deployment
Roadmap
1. Set the strategy
2. Find a change agent (how about you?)
3. Get the knowledge
4. Do an Action Work Out

5. Eliminate waste by executing the plan

6. Expand the scope to other areas

Don’t Wait!! – “Opportunities multiply as they are seized”

Advanced Lean
Trace Collection Process: VSM
EXTERNAL
AGENCY
GECFA
No Phones
Collections
L NL
GE Money
Mainframe EXITS
(Vision Plus)
L
X

0-29 days Mainframe c c c c

past due
Workable/Non
V+,CPAC
IWP DMS c c
FCS Sentricx Hold
accounts ,ICBS
Workable

4 Hours + 4 Mins 10+5+5 Mins 3-9 10 + 4 Mins 5 - 11

DAYS DAYS

L = Locate
NL = No Locate
C = Call made Wait Time
Wait Time: up to 14 days Reduce TAT from 3-9Days
X
= Routed
Value Add: ~ 35 Min to Less than 4 days
Advanced Lean
Value Stream Map From GE Rail ~ AWO

Before
Lead Time: 76 Days
59 Total Steps

After
Process Flow
Lead Time: 52.35 Days
59 Total Steps

Advanced Lean
 Standardized Work

L E A N
ENTERPRISE

Advanced Lean
Standard Work

Why have Standard Work? Waste Elimination

1. To make office process rules explicit

Establish the explicit methods for manual tasks with respect to
quality, quantity, cost and safety.
prevent wastes

2. A tool for Improvement

There can be no improvement in the absence of standards.
Abnormal situation show that something is going on.
expose wastes

Advanced Lean
Standard Work

The combination of people, information and material to carry out

an operation in the most efficient way

Office Processes
Normal vs. Abnormal • Often poorly defined
When normal and abnormal work activities are • Examples:
• Standardize Input
undifferentiated, waste almost inevitably occurs. • Hand-off can create huge waiting time.

Standard Work provides an efficient framework Reduce time by standardization

in which to determine when an abnormality has Flow effect

occurred so that it can be addressed. •
•
Provide clarity about activities
Reduce process variance
• Makes process reliable
• Exposes more waste

Identify Problems

Normal vs. Abnormal

Why?
Provides the Basis for Kaizen
Advanced Lean
Standard Work
The devil is in the details. If you do not specify the standard, you allow
wastes to occur that could be eliminated. But more important, it hinders
learning and improvement in the organization.
Specify content, sequence, timing and outcome to prevent and to
expose waste. However, keep in mind that the details have to improve
the flow of value as drawn in a value stream map.

A perfect example of Standard Work

1. Each worker understands their task.
2. All tools and equipment are at arms length
3. Standard work has been practiced to perfection
4. Continuous observation and analysis drives
continuous improvement

Types of Waste Eliminated

• Searching
• Finding
• Selecting
• Transporting
• Waiting

Advanced Lean
Levels of Standardization

Two levels for standardization for every type of item

A. Activity
B. Connection between activities

Connection

Activity Customer

Advanced Lean
Standard Activity

Customer
Activity

Standard Activity have to make the activity direct and unambiguous. On

a detailed level tasks/decisions/etc… should be specified.

When designing a Standard Activity keep in mind the follow elements:

1. TAKT time
2. Work sequence
3. Standard work in process

Advanced Lean
Standard Work: Takt Time
Element 1

Create Standard Work around Takt Time, keeping in mind the changes in Takt Time.

TAKT Time = the frequency at which a product or service must be competed

in order to meet customer needs
Rate of Customer Demand = Rate of Producing/Servicing

Available Time Office Processes

TAKT time formula: • Check any time if you’re on schedule:
Required Output Daily 400 in-voices.
It is 13:30, are we on schedule?
(Customer or Forecasted Demand)

Time
It’s 8:30 am. How are we doing?
60” Takt Time
7 am 8 am 9 am 10 am 11 am noon

Person Orders
A B C D
(60”) (60”) (60”) (12”)

Advanced Lean
Standard Work: Work Sequence
Element 2

Standard Work Work Sequence

• What has to be done? The order in which an person performs a series of
• In what sequence? repetitive tasks. It should be differentiated from
the processing sequence, which is the order in
• How much time can it take?
which the part is processed.

Standard Work / Combination Sheet Standard Work Sheet

Production Line Operator
Production Line Cell 6 Operator
2nd Qtr. ‘01 Part Number

Use this
New / Rev Page 1 of 1 Date 2/6/02 AMX New / Rev Page 1 of 1 Date
Organization Area Supervisor Part Number All Parts
Organization Area Supervisor
X-Ray Station 1 & 2 J. David
Standard Work
Part Name
Shannon Tubing CFM Cell Fern Bissonnette Standard Work Sheet Part Name All Tubes
Combination Sheet
Time Production Req'd Takt/Rate Time Manual Travel ~~~~~~~~
Orbital

Template
Sec ( ) Min (X) Hr ( ) Auto Wait
Weld End Finish Weld End Finish
Step Operation Name
10 20 30 40 50 60 70 74 80 90
No.
Manual Auto Travel Weld
1 Check Motor 3 3
Flex
2 Issue DHR 2 2
3 Install Gen. Housing 10 5
4 Install Clips 5 4 Outside Cell
Torch
5 Install Term. Strip 6 6
Braze FPI
6 Install/Wire Latch 4 4 X-Ray
7 Jumper Wire to Filter 10 6 Mech. Mech. EDM
Mark Hydro Test
Clean Clean

Weld End
Finish

Scope of Operations # Lots of Total Manual & Travel Time Takt/Rate

Quality Safety Standard Standard Time
40 30
Totals Operation Time T/T
Raw material
Check Precaution Work-in-Process Work-in-Process Operator Man/Travel Time
100/Day
From: 27 - avg lot = 6
Turns DPU's
To: Finished Goods

Physical or digital design

Standard Work Sheet and Standard Work/Combination Sheet defines the Work Sequence

Advanced Lean
Standard Work: Standard WIP
Element 3

Set a Standard WIP in your Cell, if applicable to your office process.

The minimum Work in Process (WIP) required to perform

repetitive operations, and maintain a continuous flow.
Controls the in-process inventory to ensure an even and
controlled process flow.

Standard WIP should be kept as low as possible.

Advanced Lean