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

People

Just-in-Time
• Single Piece Flow • Autonomation

Jidoka
• 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
) O ff ice
• Shorter Lead Time a c k-
• Higher Flexibility a k i ng (B
v an tage
M g i c ad
te
• Higher Quality a stra
• 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
Productivity time
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 Sheets Intuition Based Driving Change
• Centered on Stable,
Boundaryless & . . . Assumes Analysis . . . PQ,
• Mixed Model Plan, Repeatable Process
Multi-Generational Data is Good PR, TAKT Time
Kan Ban, Visual
• 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 value Identifies problems in the Improves the capability of Improving the capability can
and provides tools to eliminate them flow steps that do add value eliminate additional steps

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

 Value Stream Mapping

Tool Sophistication

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-based Kanban, Just-in Time
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
Use the
the highest
highest level
level
> Substitute a more reliable process
possible
possible for
for the
the
Facilitation
BETTER application.
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