Lean Management

Value Vs. Waste

Ground Rules
Cell phones turned off {Please}
One conversation at a time
Listen to everyone
Two-way communication is required - ask
questions as we go
Share experiences or real data that relates to
the topic
Be ready to start on time after breaks
There will be lots of team activities - please
participate fully
TIME OUT: ACTIVITY

Now:
Introduce yourself to the class room indicating:
Your Name
Your job title
Lean Management Experience
Class Expectation
Event Structure

Module # Description Duration

Module 1 Introduction To Lean Manufacturing 4 Days

Module 2 Lean Assessment 4 Days

Module 3 Work place improvement Using 5S 4 Days

Module 4 Visual Management 4 Days

Module 1 Agenda

Lean History
Type of Wastes
Class Room Activities
Introduction To Lean Tools
The Real Kaizen
Module 1 Objectives

1. Conduct Training for 10% of the enterprise workforce

2. Form continuous Improvement Team
3. Spread the culture of lean concepts
4. Evaluate and assess the current situation and
improvement opportunities within the enterprise

Learning
Learning To Coach
Learning To Do
To See
Lean History

• Introduction

• A Brief History of Manufacturing Systems

• Mass Production

• Lean Thinking
PROBLEMS

Backorders Insufficient
sales

Defective products,
customer returns
Competition

Equipment Decreasing
breakdown profit
s margins
No more
space for
inventories High
costs
What Should Be Done?

Which one is
the ideal
system?

Which is the
way to the
ideal system?

What were the ideal systems in the industrial evolution ?

HISTORY OF MANUFACTURING SYSTEMS

• CRAFT PRODUCTION
– By using handtools
– Non-repetitive ( one-off, unique )
– Customer and product focused
• INDUSTRIAL REVOLUTION
– Steam energy - machines
– Process oriented layout, general purpose machines
– Repetitive products
– Inter-changeable parts (maintenance and repair are
economic ) – “Factory System/American System”
– More production / unit time
HISTORY OF MANUFACTURING SYSTEMS
• MASS PRODUCTION
– Pioneered by Henry Ford, mass
production adds the following to the
industrial revolution era’s principles :
• Standard products and operational
efficiency
• Flow ( Usage of conveyors at final
assembly )
• Economies of Scale
– Problems with the Ford System
• Lack of ability to provide product variety
• Lack of model changeover ability
Customers’ demand for a product life Henry Ford’s Production Line
cycle less than 19 years ( Model-T ).
Problems With Mass Production

• Long delivery times

• Weakness in responding to customer demands
• Increase in inventories
• Decrease in quality
• Increase in non value adding activities
• Work becoming more complex everyday
• Increasing hierarchy and bureaucracy
• Additional costs
• Difficulty in adapting to variations
• Long term planning necessity
• More capital reqirement
HISTORY OF MANUFACTURING SYSTEMS

LEAN THINKING
• LEAN MANUFACTURING
WASTE

– TOYOTA – JAPAN

• Mentality of avoiding waste due to hard times

• Flexibility imposed by small scale market

• Global competition and regulations

What is “Lean” ?

• “Lean : The part of meat

that consists principally of
lean muscle
( fat-free)

• Lean Thinking is an approach that

aims to get rid of all the wastes
(fats) that bring a burden to the
system.
The Machine That Changed The World

The Machine That Changed The World

Published in 1990
Over 500.000 sold in more than 11
languages

- James P. Womack
- Daniel T. Jones
- Daniel Roos
“Lean Enterprise” Project

• Between 1992-1996,
• 50 Companies of different sizes, of different ages ( old-
new ), and active in different sectors, from The USA,
England, Germany and Japan have been examined. Sales
over 300.000 ( English )

Lean Thinking

– Published in 1996
– James P. Womack
– Daniel T. Jones
Lean History Summary

History of Lean - The philosophy of Continuous

Improvement
• 1910 - Henry Ford developed continuous flow
line to produce Model T

• Mid 1930‟s - Alfred P. Sloan at GM created

functional departments which allowed for more
product variety

• 1949-1975 - Taichii Ohno introduced the

Toyota Production System and Just in Time
(JIT) concepts borrowing best practices from
Ford, GM, and supermarkets

- The Kaizen Philosophy and later the tool of

3P (Production Preparation Process) are
born
- Over the years the company developed the
Toyota Way as a method of Enterprise
workings

• 1990 - James Womack wrote a book, Machine

that Changed the World, based on a MIT
study. It coined the phrase “Lean
manufacturing”.
TIME OUT: ACTIVITY

10 minutes for activity

Kosh Ball Exercise

Lean Goal
As competition increases getting Lean is compulsory
• Producing only the products demanded by the customer
• At the exact time the customer demands
• By consuming less resources
• And focusing on the activities that create value for the
customer

TO
FROM MASS PRODUCTION LEAN MANUFACTURING
Lean Goal

design production delivery

Lead Time

Value Adding Activity Waste (Muda)

To Decrease Lead time

To Increase Value Added Time %
Lean Manufacturing

is a manufacturing philosophy which shortens the time

line between the customer order and the product
shipment by identifying and eliminating waste.
Business as Usual
Customer Waste Product
Order Shipment

Time
Lean Manufacturing

Customer Product
Order Waste Shipment

Time (Shorter)
One-Piece Flow Demands Team Work!

Traditional Western Team

x
x
x
x x

Station B

x
x x
x
x x
x x
x x

x
Station A Station C x

Need
help? Need
help?

Workcell

Toyota Way Team

Benefits of Lean Production
 Reduction in overhead / operating costs
 Productivity Increase (30% - 40%)
 Throughput Time Decrease (70% +)
 Increase Profit
 Customer Lead Time Reductions (50% +)
 Work in Process Inventory reductions (70%+)
 On Time Delivery to customers (95% +)
 Quality Performance Improvements
Kaizen

• Japanese word that means to make small

changes for the better
- Kai means change
- Zen means good
• Changes are best when they are created by the
person doing the work
• The person doing the work uses their own
common sense and intuition
Who wants what...

$ Cash !!

Value !!
Customer
Low Cost Your Company
High Quality Profit
Availability Repeat Business
Growth
Activity Classification

Activity

Non-Value Add Business Value Add Customer Value Added

Non-Essential (Waste) Essential (NVA)

1. Eliminate 2. Reduce 3. Improve

Reduce Cycle Time By Eliminating Waste!

We should strive to eliminate pure waste and strive to eliminate or reduce necessary waste at all times.
There may also be some productivity initiatives to reduce the steps/time of your value added activities.
26
Customer Value Add (CVA) Definition

Any activity in a process that is essential to deliver

a service to the customer
Must be performed to meet customer needs
Adds form or feature to the service
 Enhances service quality, enables on time or more competitive
delivery, or has a positive impact on price competition
Those tasks which the customer would be willing
to pay for if he/she knew you were doing it (i.e.,
has value to the customer)
Tasks should be optimized
Business Value Add (BVA) Definition

 Activities that allow greater effectiveness or efficiency in a process

 Activities that are required by the business but add no real value
from a customer standpoint (ex‟s, obtain the order, provide a bill,
safety activities, regulatory compliance activities)
 Questions that can be asked to determine Business Value Add
activities:
Does this task reduce owner financial risk?
Does this task support financial reporting requirements?
Would the process break down if this task were removed?
Is this task required by law or regulation?
 Business Value Add tasks should be questioned and, where
possible, reduced
 These are NOT activities which we currently perform because „that
is just the way we do it today!‟
Non-Value Add (NVA) Definition

 Activities that are not Customer Value Add or Business

Value Add
 Activities which are not required to meet or exceed
customer needs and are not required by the
business
 Non-Value Add activities add waste to the process
 Non-Value
Handling
Add (NVA) tasks typically include:
 Inspecting
 Transporting  Delaying
 Moving  Storing
 Counting
 All Rework Loops

 Non-Value Add activities hMultiple Signaturesnated

Waste Recording Form

30
Waste - How to see it??
• Learn to see waste
• Learn to see your job as a process or set of processes
- Look at the product and follow the path from the
inception/request to /delivery fulfillment
• Look at the entire system first
• Start by removing excess inventory (supplies)

Waste Types:
1. Obvious/ Traditional Waste
2. Hidden waste
Traditional 8 forms of Waste
DOWNTIME 3.Waiting
1.Defects 2.Overprodcution Being idle between
Inspection Any supply in
excess of one
operations
4.Non Use Of People
piece flow.

Rework

Scrap Failing driven activities:

Inspection, Rework,
6.Inventory Testing, Scrap

Producing more or sooner

than the customer needs.

I’ll make Need

fifty, just Twenty? twenty
in case ...
How about pieces
forty?
8.Excessive
5.Transportation Processing
Moving information/forms/ material
not needed for “Just-In-Time” 7.Motions I wish processing a
purchase order wouldn’t
Extra efforts that add
no customer value to
production. take so much the product.
Any movement that adds no value paperwork
1.Defects

• All the time and cost incurred

due to getting something wrong
• Causes:
- No Mistake Proofing
- Poor product & process design
- No TPM in Place
- Lack of Standard Work
TIME OUT: ACTIVITY

10 minutes for activity

Now:

Back to the shop floor

Find this Type of Waste
2.Overprodcution

If you make more product than is required by the

Customer, make it earlier than is required by the
Customer, or make product faster than is required by
the Customer, you overproduce.
Extra inventory Extra handling

Extra space
Waste of Overproduction

Extra interest
charges
Extra paperwork Extra people
Extra defects

Extra overhead
TIME OUT: ACTIVITY

10 minutes for activity

Now:

Back to the shop floor

Find this Type of Waste
3.Waiting
• Operator or machine idle time.

• Causes of Waiting Waste

- Unbalanced work load
- Bad Supplier quality
TIME OUT: ACTIVITY

10 minutes for activity

Now:

Back to the shop floor

Find this Type of Waste
4.Non Use of People

• All the time and cost incurred

due to having unloaded
persons in your facility
• Causes:
- Low work contents
- Process is not balanced
- Process bottleneck
TIME OUT: ACTIVITY

10 minutes for activity

Now:

Back to the shop floor

Find this Type of Waste
5.Transport /Movement

• Transporting parts and materials

around the plant without adding
value
• Causes:
- Poor plant layout
- Poor understanding of the process
flow for production
- Large batch sizes, long lead times, and
large storage areas.
TIME OUT: ACTIVITY

10 minutes for activity

Now:

Back to the shop floor

Find this Type of Waste
6.Inventory

 Maintaining excess inventory of raw materials,

parts in process, or finished goods.
 Causes of excess inventory
 Protects the company from inefficiencies and
unexpected problems.
 Product complexity
 Unbalanced workload, unleveled scheduling
 Poor Market forecast
 Unreliable shipments by suppliers

q Potential Problems with Excessive Inventory:

 Carrying Cost Obsolescence
 Warehouse Space Hidden Quality Problems
TIME OUT: ACTIVITY

10 minutes for activity

Now:

Back to the shop floor

Find this Type of Waste
7.Motions

• Any movement of people or

machines without adding value
• Causes:
- Inconsistent work methods
- Bad cell layout
- Poor workplace organization
and housekeeping
TIME OUT: ACTIVITY

10 minutes for activity

Now:

Back to the shop floor

Find this Type of Waste
8.Excessive Processing

• Effort that adds no value to the product or service from the

customers’ viewpoint

• Causes:
- Product changes without process changes
- True customer requirements undefined
- Over processing to accommodate downtime
TIME OUT: ACTIVITY

10 minutes for activity

Now:

Back to the shop floor

Find this Type of Waste
RAW MATERIAL FINISHED PRODUCT
TO CONSUMER

SEA OF INVENTORY

LINE LACK OF
QUALITY
PROBLEMS LONG IMBALANCE HOUSE KEEPING
POOR SET-UP
SCHEDULING TIME

MACHINE LONG
ABSENTEEISM COMMUNICATION
BREAKDOWN TRANSPORTATION VENDOR PROBLEMS 13
DELIVERY
TIME OUT: ACTIVITY

10 minutes for activity

Now:
Let us Mention on a flip charts what are the other types of waste
we can find in our daily work????????
8 Deadly Wastes Examples

What prevents us from having a lean Value Stream?

Waste Business Example Manufacturing Example
Defects - Passing on work that has errors/ missing - Assembly/Machining errors
information - Damaged Work in Process (WIP) or
finished goods
Overproduction - Excess copies or files - Parts that are not needed by customer
- Work that has too much information
Waiting and Delay - Signature approvals - Bottlenecks - Down machines
- Paperwork in “in” or “out” baskets - Material shortage
- Lead time between meetings/decisions

Nonuse of People - Intellect - Skills - Communication - Buy-in - Creativity

Transportation - Distributions - Parts travel more than necessary
- Travel to meeting vs. video/teleconference
- Multiple hand-offs of mail or paperwork

Inventory - Excess office supplies - Excess inventory

- Work backlogs, batched work

Movement - Walking - Reaching - Operator travels to find tools/instructions

- Bending - Ergonomics - Lack of point-of-use tooling
Excessive - Too many sign-offs - Wrapping parts when a protective
Processing - Not using pre-formatted templates box/sleeve may be sufficient
MUDA Examples

Identify Reduce Eliminate

MUDAs
thru
VALUE ADDING WORKSHOPs

Unawareness of
Lean Management Tools
Muda of Transportation Muda of Motion

Muda of Waiting Muda of Rejection Muda of Over Processing Muda of Inventory

World Class, Lean, Fit, Competitive

&
Sustainable Organizations

Muda of Over Production Muda of Unused Human Potential

TIME OUT: ACTIVITY

10 minutes for activity

How Do you Define Operational Excellence???

TIME OUT: ACTIVITY

1. - 6. -
Take 45
2. - 7. - seconds to
memorize
these new
3. - 8. - symbols
for the
4. - 9. - numbers
1 - 10.

5. -
10. - X
TIME OUT: ACTIVITY

Write down as
many of the new
symbols as you
can remember?
Discussion

• How many people got all 10 symbols correct?

- 9?
- 8?
- 7?
- 6?
- 5 and below?
• Were you distracted by the countdown on the
left?
• Are there ever distractions when we are trying to
learn?
Discussion continued

• Which symbols do most people get right?

 1 - due to repetition
 10 - Its different and it represents the Roman
numeral “10”
 5 - Its different
 7 - Its similar to the number 7
• Most people look for a pattern and have
difficulty finding it in a short amount of time.
• We are looking at the pieces rather than the
whole.
• This is sometimes referred to as “Silo Thinking”
Now, for you linear
thinkers…

1 2 3 4 5 6 7 8 9 10

X
Does this help?
Let‟s think lean!

The outline around each number Systems

Now, represents the new symbol! View
everyone is
familiar with 1 2 3 Lean thinking
is all about
this. learning to

So it must be
4 5 6 see how
things are
Common connected
Sense!
How many 7 8 9 within an
overall
of you system.
thought of
this? 10 - X
House of Lean
 5S
 Value Stream Mapping
 Standardized Work
 Load Leveling
Pursuit of Perfection
 Kaizen (Continuous Improvement)
 Kanban

Pull Production Signaling (Takt Time,

 Visual Workplace

Single Part Flow, JIT, Kanban)

Total Equipment Management

Standardized Work and Work

(Preventative Maintainance)

Visual Factory Management

 Quick Changeover SMED
 Andon

Instructions
Built In Quality
 Poka-yoke
 One-piece flow
 Cellular Manufacturing

5S, Value Stream Mapping, Kaizen, Work Cell Arrangement

Team Based Problem Solving utilizing PDCA cycle
Mistake Proofing Techniques
Empowered Work Teams
5S‟s
The 5S’s

Sort, Shine, Set, Standardize, Sustain

What is the goal of 5S?
1. Personal Productivity (Reduce wasted time and motion searching for
information / supplies)
2. “A Place for everything and everything in its place”
3. Present an image of excellence to customers

A collaborative effort to identify and implement improvement opportunities

Total employee involvement
The Japanese Origins

• Sort: organization, eliminate what is not needed have only what you use
– When in doubt, move it out!

• Shine: clean, a standard of cleanliness, zero dirt

– To be Lean, you mut be clean!

• Set in order: a place for everything and everything in its place

– Arms reach, weekly items
– Searching time

• Standardize: standard way of doing things so anyone can do

– Quality at the source

• Sustain: self-discipline, long-term integrate into regular responsibilities

– Sustain the gains!

Safety - 5S becomes part of the foundation for

achieving safety improvements
What is 5S and why do we want to do it?

5S is short for: Sort, Set in Order, Shine, Standardize and Sustain

5S represents 5 disciplines for maintaining a visual workplace (visual controls and

information systems).
These are foundational to Kaizen (continuous improvement) and a manufacturing
strategy based "Lean Manufacturing" (waste removing) concepts.
5S is one of the activities that will help ensure our company’s survival.
Visual Controls Examples

A place for
everything
and
everything
in its place.
The Japanese Origins
Some 5S Examples

After 5S - Cleaned, organized and

drawers labeled (less time and
frustration hunting)
Before 5S
The Japanese Origins

What’s an example?
Before After
The Japanese Origins

What’s an example?
TIME OUT: ACTIVITY

• Help Us To Get Better

(3 - 5 minutes)

• Conduct 5S for the training Room.

• What S’s can be easily applied (low hanging fruit)?

Standard Work
Standard work is the method by which work is
simplified and structured to ensure maximum quality,
productivity and repeatability over time. It includes
documents that support a repeatable process by any
person and produce the customer requirements.
• Captures best practices
• Posted at the work station
• Visual aid
• Reference document
– work sequence
– job layout
– time elements
– safety
• Developed with operators
• Basis for Continuous Improvement
Standard Work

Eliminates
Non Value Added
Repeatable
Activities
processes where
Standardized (Lean)
unnecessary
Work processing, excess
Required to
sustain repeatable motion, and travel
processes are minimized
(Six Sigma)

Standard Work is the basis for all continuous improvement activities.

Standard Work simplifies tasks & establishes the best way to do work and/or
provide a service.
Standard Work – Key Points

• There is a best way to do things!

• Standard work does not stifle creativity – it should enhance
it!
• Standard work is very dynamic
• Standard work facilitates discipline needed for continuous
improvement
• It is developed with the knowledge of those who perform
the work
• One of the most overlooked principles
TIME OUT: ACTIVITY

Now:
Tying a neck tie Exercise

73
Standard Work
Standard Work Improvement

74
Spaghetti chart
spaghetti chart is a visual depiction of the flow of a person through their
workstation. The spaghetti chart may also be used to depict the flow of information
and materials as well.
Directions
It earns its name based on the amount of scribble that happen as a person
walks around their cell. As they walk, the observer follows their movements
with his pen. In many cases, the movement is so extensive that the paper
resembles a bowl of spaghetti.

75
Spaghetti chart

Start
Desk

Table
DeskDesk
Desk Desk cart
Table Table
Desk Desk
11 10
6, 7, 8, 9 6, 7, 8, 9

6, 7, 8, 9 6, 7, 8, 9

6, 7, 8, 9 6, 7, 8, 9
Table
Table
Desk Desk

4a Table
4c 3 4b
Table
1

2 Table Table Staging Area 12

Desk Desk

76
Spaghetti chart
Part Number:

Part Spaghetti Chart Date:

Total Travel Distance:

77
TIME OUT: ACTIVITY

Now:
Water Dispenser Location Exercise

78
Time Observation Sheet

The Time Observation Sheet is used to, not surprisingly, observe the
cycle times of the steps of Standard Work
Observed Part Name: Observation Date: Observation number:

Time Observation Form Observed Part #: Observation Time Observer Name:

Component Component Observation # Observation # Observation # Component Notes

Number Task 1 2 3 Task Time

Floorplan of Work Area

79
Method - capture current state

Why video?
- Used to visually record activity
- Accurate method of recording
- Irrefutable and unambiguous
- Modern approach to establishing method

1. Capture a representative sample of the process

2. Review the video with the operators present

3. Break down the ‘elements’ of work

and record a time for each one

4. Identify which of the elements are Value-added

and which are non-value added

80
TIME OUT: ACTIVITY

Now:
More Examples to better understanding

81
 What is line balancing?

Everyone is doing the same

amount of work

Doing the same amount of work to What is Line

customer requirement balancing?

Variation is ‘smoothed’

No one overburdened

No one waiting

Everyone working together in a

BALANCED fashion

82
 Line Balance : Simple Example

Over-processing
Overproduction which Rework
Inventory Waiting
causes the other 6 wastes Transportation Motion

5 mins 25 mins 15 mins 10 mins

1 2 3 4

Constraint This operator This operator

Overburden must WAIT for must WAIT for
operator 2 operator 3
25
20

mins 15
10

1 2 3 4

83
Line Balance : Simple Example

Promotes one- Avoids Minimises the 7 Reduces

piece FLOW overburden wastes Variation

15 mins 15 mins 15 mins 10 mins

1 2 3 4

Redistribute the work

25
20

15
10

84
Pre-requisites to line balancing…

Understand the ‘drumbeat’ of

Calculate Takt the CUSTOMER

Achieve CONSISTENCY in operations

Enabling us to achieve our customers

requirements by ‘managing our
Standardise production effectively’

Variation in our operations demands more

human intervention which, increases the
risk of HUMAN ERROR

85
Takt Time

Takt is a German word

It describes the metronome

It is the principal that all activity within a business is

synchronised by a pulse, set by the customer
demand

Takt = total time available*

total customer demand

86
Takt time

Customer demand = 10 units / month

Takt = total time available
Total time available = 20 days total customer demand

Drumbeat = 1 part every 2 days

Each process needs to complete one unit every 2 days

Every 2 Every 2 Every 2 Every 2 Every 2

days days days days days

Process 1 Process 2 Process 3 Process 4 Process 5 Customer

87
Operator Balance Charts

The operator balance chart is a visual display of the number of operators and
the cycle times at each operation of a particular process.
The chart is a bar chart, and is created as follows:
operations and numbers of operators on the x-axis
cycle times op the operations at the y-axis
takt time on the y-axis

Operator balance charts are used to

distribute work and ensure work is being
completed near takt.

88
Operator Balance Charts

Before Balancing

After Balancing
89
TIME OUT: ACTIVITY

Now:
More Examples to better understanding

90
Error Proofing / Poka-Yoke

• Poka-Yoke is Japanese for mistake-proofing – creating mechanisms to

prevent defects and errors or make them obvious

• Poka-Yoke devices make it harder to create the error or make errors

obvious, so that they do not move on to the next step

• Two different systems:

– Control Approach: Device shuts process down
– Warning Approach: Device signals the operator to stop the process
and correct the problem
Everyday Examples for Poka Yoke

92
TIME OUT: ACTIVITY

Now:
Some Examples to better understanding

93
TPM Management

Total Productive Maintenance

TPM as a Lean Initiative

• Competitive costs require

– Spending control
– Defect control
– Downtime reduction

• TPM = Total Productive Maintenance

– Proactive (with all employees involved)
– Preventive
– Predictive
– Planned
Why Change?

• ACTIONS:
– Reduce defectives / scrap
– Reduction of lost production time
– Lowest possible cost by reducing waste
Effective TPM Eliminates 6 Losses
Total Productive Maintenance
 TPM identifies big losses under the general
headings:
What is TPM??

TPM is a Lean tool to optimize the effectiveness of

manufacturing equipment and tooling.

1. Starts with 5S / Visual Factory

2. Builds a comprehensive Downtime Database by
cause, frequency, and duration
3. Predicts and prevents downtime by PM system
4. Expands role of Operator as first point of early
warning and prevention
5. Develops Professional Maintenance skills
Operator Autonomous Maintenance

Seven Steps Aut. Mgt. 77

of TPM Standardization 66
Autonomous Inspection 55
General Inspection 44
Initial Standards 33
Countermeasures for Contamination 22
Initial Clean-up 1
1
Total Productive Maintenance
Advantages
 equipment uptime: up 40%
 unexpected equipment breakdowns: down 99%
 equipment speed: up 10%
 ZERO breakdowns
 defects caused by equipment: down 90%
 ZERO defects
 equipment output (productivity): up 50%  ZERO speed losses
 maintenance costs: down 30%  ZERO accidents

 return on investment: several hundred percent

 safety: approaching zero accidents
 job satisfaction: much better
TPM starts with 5S

• You can’t see problems clearly when the

workplace is in disarray
• Cleaning and organizing the workplace helps
the team to uncover problems
• Making problems visible is the first step of
improvement
• Clean machines and workplace create pride
& Safety
Overall Equipment Effectiveness (OEE)

Industry standard measurement for equipment effectiveness

World Class standard is greater than 85%
OEE = (Availability) x (Performance) x (Quality)
Equipment Is it running or not? Is it running at full Is it making good
behavior speed? parts?
(Planned Time – (Ideal Cycle Time x Total (Number of good parts
Pieces) produced)
Calculation Setup and Downtime)
(Planned Time) (Operating Time) (Number of total parts
produced)

Six Big Losses 1. Breakdowns due to 3. Idling and minor 5. Startup losses
(What can equipment failure stoppages 6. Defects in process
make your 2. Setup and 4. Reduced speed and rework
OEE below adjustment relative to design
85%) speed
TIME OUT: ACTIVITY

Now:
Some Examples to better understanding
 S.M.E.D.
Set Up
Reduction
S.M.E.D. vs. Traditional Mfg.

Traditional (Mass) Production

Changeovers cause downtime
Changeovers cause defects & scrap
Batch Size - “The Bigger, the Better”
S.M.E.D Philosophy
Long changeovers increase downtime
Poorly performed changeovers cause defects & scrap
Large batches equal lots of waste (floor space, WIP,
Lead Time, etc.)
Why Quick Changeover

Competitive Advantage!

Shorter Lead Times

Smaller Batch Sizes

More Frequent Changeovers

Shorter Changeover Times

 In Simple Terms
Supply Exactly what our customer needs,
When they need it,
With a quality first piece,
At a Minimum Cost.
Gaining the Benefits

Product demand = 400 parts/day

Product Models = 5 models
Cycle Time = 60 seconds
Net Operating Time = 450 minutes

Before Improvement
Changeover Time = 50 minutes
Number of C/O = 1 per day After Improvement
Average Batch = 400  Changeover Time = 10
Average Lead Time = 5 days minute
 Number of C/O =5
per day
 Average Batch = 80
 Average Lead Time = 1
Day!
Changeover Definition

The amount of time taken to change a

machine from the Last Good Part of a
production lot to the First Good Part of
the next production lot.
Clock Time, not Labour Time!
Typical Changeover

Gathering necessary items 25%

Exchanging / Cleaning Parts 10%
Positioning Parts 20%
Making Adjustments 45%
Changeover Improvements

The first task is to recognize that there

are two essentially different components
of any changeover, Internal Activities
and External Activities.
Changeover Activities

Internal Activities
An activity that must be performed
while the machine or process is
turned off, not making parts.

External Activities
An activity that can be performed
while the machine or process is
making parts.
Improvement Steps

Identify activities and document the process.,

List all the set up process steps
Separate Internal from External activity

Identify & Remove All types of waste exist

Convert Internal to External

Reduce all remaining activities.

 Standardise new procedure (document & train Operators.

Identify activities & document the process
Set-Up Reduction Observation Sheet

Company: Plant: Date:

Machine: Part Name/No.: Oper.

Goal: Move Internal time to External time and reduce or eliminate both

Time before Time after

Task # Task Description Ext Improvements Ext
Total Task Total Task
or Int or Int

1 0:00:00

2 0:00:00

3 0:00:00

4 0:00:00

5 0:00:00

6 0:00:00

7 0:00:00

8 0:00:00

9 0:00:00

10 0:00:00
Identify & Remove All types of waste exist

• Identify typical causes of setup waste/delay

• Ask 5 whys to eliminate wastes

SEARCHING TRANSPORTATION WAITING MISSING TOOLS

(WALKING)

SET-UP
CHECKLIST SCHEDULE ?
Due 4/27 Completed

NDJFHJDHFJDHFJSDHGLJKFHGLFDHGLDFHLGHKDFHDKLLFDL
GJKFSDJGLKJFDJGKLJDFLGJKLDFJGKLDFJKGJDFKL;S
DFMSGFKJGKLFJDKLGJFLDKJGKLFDJKLGJFLSDKJGKLDFJGKSDF
GMFKLGNJFDGLDFKLGLJKFDHLGKJLDFKJGLKJDFSGJLK
FMKGKJFLKGJKLFJGKLJFDKLGJLKFDJGLKJFDKLGJKLFSD
21 13
GMK;LDFJGKLJFKLDJGKLDFJKGJKL;DFJGKDFJLSGJ
GFDKLGJDFKJGKFLGNLKDFJGKLNFDLKGNKLFDNGKLF

FDNMGNLKFDKGNLFKDNGKLDFNLKGNKFDNGKLNFDKLGNLKDFNGKLN

GNFDNGKNDFKLNGKLFDNGNLKDFN

HGHF

HGHFHFGDHRTYTRYER

HTHERHRTTYTRYRTYRTYTYTRYRTUJUJTRYRETYTYUHTJHGJGFJHJFHHF
HJHJGHJHJGHJGHJHGJGHJGH

JHKGJHLDFHGHJFHTJGDFHGHFJHGJHFJLHGJFHDGJHSJDHGJUHFYUIGHTIHGITJGHIOTJHIOTRJHIORTJHTIOHIRTGM,FMGKLKLFMGNKLFDNGNKDFNGKLFDNGDNFLGNL
GMFLKGNLKDFNGNKLDFNGLNFDLK

FNDMLGNLFNGLLKNGLDKNGKLNS

ABSENCE OF POOR SCHEDULE LACK OF NON-USE

CHECKLIST INFORMATION CALIBRATION OF PEOPLE

7 +1 Deadly Wastes that are specific to changeovers

Separating Internal from External

Develop checklists for all items

necessary for the changeover
Tools
Gauges
Materials
Establish “Pre-verification” checks for
necessary equipment and tooling
Stage all items close to the workplace
Ensure effective 6-S system is in place
“Operating
Room
Conditions”
External Changeover Preparation

Identify all parts run on this machine

Select 2 or 3 parts for observation
Prepare external elements for these
changeovers
Establish tool boards and “Changeover
Trolley’s
Create a Checklist for tools and items needed.
Converting Internal to External

Prepare Operating Conditions prior to changeover

Preheat molds or dies
Pre-adjust parts
Standardize necessary functions
Change the fewest parts possible
Minimize or eliminate adjustments
Use intermediary Fixtures or Jigs
Preset tools
Position dies
Reduce All Remaining Activities

Perform Parallel Operations

Improve Clamping Mechanisms
One turn clamps
One motion methods
Eliminate all adjustments
Numerical Settings vs. “Feel”
Automate activities where
appropriate

AND…… STANDADRIZE
Quick Changeover Rules

Remember Safety at all times!!!

Changeover begins and ends with 6-S
Change internal to external, then reduce
all activities
FAST
a. Foresight
Bolts are our enemies b. Attachment
If you have to use your hands, make sure c. Setting Conditions
your feet stay put d. Trial runs and Adjustments

Do not rely on “fine-tuning” skills

Standards are standards, they are not
flexible
Standardize all Changeover Operations.

TRAC
a. Training & Awareness
b. Record & Recommend
c. Application
d. Continuous Improvement
TIME OUT: ACTIVITY

Now:
Some Examples to better understanding
TIME OUT: ACTIVITY

How can we make it right first

time???

Have you ever heard about cost of

trials?

Production Preparation Process (3P)

Introduction

• Production Preparation Process (3P) is one part of an

overall Lean design approach that includes the rapid
testing of ideas and the embedding of Lean
manufacturing principles into process and product
design.

• 3P is one of the most powerful and transformative advanced

manufacturing tools, and it is typically only used by organizations
that have experience implementing other lean methods.
What is 3P?
• Benefits of Production Preparation Process:
– Cross-functional team approach
– Rapid testing of ideas
– The embedding of Lean manufacturing principles into process
and product design.
• 3P to solve one or more difficulties with new product or process
start up. It can be used to minimize equipment cost or to design
processes to enable one-piece flow. Other opportunities for 3P:
1. New product development. Educate designers in Lean as
early as possible.
2. Capital expenditure approval. Do a 3P review first to
ensure the expenditure is appropriate and necessary.
3. Product design changes. Approve no changes without a 3P
review.
4. Significant changes in volume. Embed Lean into scaled-up
processes.
5. Relocation of processes. A good opportunity to use
3P to embed Lean thinking.
3P Process Steps

1. Determine 3P Purpose
1. Team Selection
2. Brainstorm Design Ideas
3. Decide on Designs
4. Conduct Simulations
5. Prototypes
6. Design Review
7. Select Best Design
8. Project Plan
TIME OUT: ACTIVITY

Now:
More Examples to better understanding
Lean Thinking Overview

Learning To Do
Conducting a Kaizen

Content:
• What is a Kaizen?
• Why Kaizen?
• Stages of Kaizen
• Planning and Preparation
• Event
• Report out
• Follow-up
• Appendix
What is Kaizen?
Kaizen
• is a tool to rapidly improve work as part of the PDCA cycle
• is a tool for implementing Rule 4 of the Rules-In-Use
• goals must align with the business objectives

2. Design 3. Do
(Plan)

1. Customer
Needs
5. Improve 4. Feedback
(Act) (Check)

Meeting Customer Needs:

• Internal/External
• Shareholders
• Employees
• Community
Why Kaizen?
Content:
• What is a Kaizen?
• Why Kaizen?
• Stages of Kaizen
• Planning and Preparation
• Event
• Report out
• Follow-up
• Appendix
Planning and Preparation

There are 5 basic steps:

• Identify the business case.

• Set goals.

• Select the team.

• Collect baseline data.

• Plan to support the Kaizen activity.

Identify the Business Case

The business case is the launching pad for a kaizen and is defined as a
discrepancy between our customer's expectations and our current processes.

The business case creates the focus for the kaizen and is documented on an
A3. Examples of a business case for a kaizen include:

• Reduce lead times

• Increase delivery performance
• Eliminate scrap
• Reduce inventories Eliminate the Gap!
• Increase capacity
• Eliminate bottlenecks
• Reduce changeover time
• Reduce machine failures
• Quality improvements

Customer
Set Goals

• Measurable
• Examples: Time, Money, Defects

• Align with the company’s strategic goals and identified by the

Plant A3 and Value Stream Map
• Safety, Quality, Delivery, Cost

• Stretch but realistic (target at least 50% improvement)

• Should result in a new process or new standard

• Documented on the an A3

• 1 improvement idea per team member, PER

OBSERVATION (6-7 ideas per person total)
Select the Team

• Team size should be based on the area(s) being kaizened.

• A trained Facilitator and a Team Leader for each Team

• Typically 4-6 people per machine or process

• Every team member should be chosen for a specific reason

• Management
• “Different Set of Eyes”
• Customers and Suppliers (internal or external)
• Experts (people who actually do the work)
• Maintenance
• Change Agents
 Collect Baseline Data

Baseline data is collected to document the current condition and assist in

setting the goals. This information may include the following:

Space Constraints Lead Time

Inventory Scrap Rate
Productivity Takt Time
Cycle Time Safety/Ergonomics - Loss
5-S Visual Measurement

  Customer Satisfaction (NPS) Current Standard Work

                                                       

The background information is used to produce a Value-Stream Map or

Process Map by the Facilitator or Team Leaders for the problem being
addressed by the Kaizen.
Plan to Support Kaizen

While the goal of a Kaizen is to work around the process, interruptions are
inevitable as improvements are implemented. Success requires action prior
to the Kaizen. Items to consider:

• Set maintenance support to cover Kaizen needs

• Perform moves that can be identified prior to Kaizen
• Set labor to cover customer needs during the Kaizen or work
ahead
• Adjust work scheduled and flowed through selected area
during Kaizen
• Create a “claw-back” or “recovery” plan to be instituted after
Kaizen if necessary
Content:
• What is a Kaizen?
• Stages of Kaizen
• Planning and Preparation
• Event
• Report out
• Follow-up
• Appendix
 Schedule for the Kaizen
Monday Tuesday Wednesday Thursday Friday

7:30 AM Preparation / Group Meeting Preparation / Group Meeting

8:00 AM Introduction and Training Report out Preparation

Kaizen Activity Kaizen Activity

9:00 AM
Kaizen Activity Report Out - Plant and Senior
Leadership / Sametime
10:00 AM Meeting

Kaizen Trial Kaizen Trial

11:00 AM Kaizen Trial
Report Out follow-up

12:00 PM
Travel Lunch Lunch Lunch

(Pre-Event meeting with

1:00 PM
Facilitators/Team Leaders)

Kaizen Activity Kaizen Activity

2:00 PM Verification and Final
Implementation

3:00 PM Travel

Kaizen Trial Kaizen Trial

4:00 PM Report out Preparation

5:00 PM
Daily Summary Daily Summary Daily Summary

6:00 PM
Stages of the Kaizen
The Standard Work elements of a Kaizen are:

Start Document
Reality
Document Reality

Document the Current Process. We need to understand how processes are

performed today (may be done prior to Kaizen as well).

Document
Documentation Includes: Reality

• Spaghetti Chart
• Observation Sheet *
• Standard Work Combination Table *
• Balance Table
• Layout
• 5S & Safety Audit
• Process definition (volume, mix, difficulty levels)
* One for each operator

Take the time to validate the baseline information and understand what is
happening in the area.
Stages of the Kaizen
The Standard Work elements of a Kaizen are:

Start Document
Reality

Identify
Waste
Identify Waste

Those eight elements that do not increase the value of a product or

service, but only increase cost.

Identify
Attack items that impact Waste
• Process Flow
• Material Flow
• Information Flow
Stages of the Kaizen
The Standard Work elements of a Kaizen are:

Start Document
Reality

Identify
Waste

Plan
Countermeasures
Plan Countermeasures

• Focus on the things that can be done within the kaizen

• Bias for action vs. planning and analysis

• Think within the boundaries of the Lean Plan

process (IDEAL) Countermeasures
• Single-piece flow
• Minimum inventory
• At TAKT time
• Pull production vs. Push production

• Low cost solutions, creativity before money

• Right-sized resources

• Maximum waste elimination

Stages of the Kaizen
The Standard Work elements of a Kaizen are:

Start Document
Reality

Identify
Waste

Plan
Countermeasures
Reality
Check
Reality Check

Reality
Problem/Countermeasure Tracking
Check

• The Facilitator and Team Leaders review the countermeasures

and the to-do list to ensure:

• Proper Direction
• Countermeasures are the proper Lean solutions

• If necessary, course corrections are made

• The plant Lean Facilitator approves the plan

Stages of the Kaizen
The Standard Work elements of a Kaizen are:

Start Document
Reality

Identify
Waste

Plan
Countermeasures
Reality Make Changes
Check
Make Changes

• Bias for action, Just Do It!!

• Use the Kaizen Implementation Report to document the change

• Do not dictate how things will be done. Ask team members, build coalition

• Hold progress meetings each day: morning, afternoon, or end of day

• Keep Kaizen homework updated with the use of the Kaizen Newspaper

• Remember: Pre-kaizen planning for possible “moves” may be needed to

prepare support services
Make Changes
Stages of the Kaizen
The Standard Work elements of a Kaizen are:

Start Document
Reality

Identify
Waste

Plan
Countermeasures
Reality Make Changes
Check Verify Change
Verify Change

Verify Change

• Observe again

• Results Achieved?

• If not, go back and make additional changes

• Repeat the cycle – observe, implement changes, evaluate

Stages of the Kaizen
The Standard Work elements of a Kaizen are:

Start Document
Reality

Identify
Waste

Measure
Results

Plan
Countermeasures
Reality Make Changes
Check Verify Change
Measure Results
Measure
Results

• Did waste get eliminated?

• Can improvements be sustained?

• Are improvements aligned with business objectives?

• Is there a possibility of negative unintended consequences?

• Were kaizen and individual improvement objectives achieved?

Stages of the Kaizen
The Standard Work elements of a Kaizen are:

Start Document
Reality
Make this
the Standard
Identify
Waste

Measure
Results

Plan
Countermeasures
Reality Make Changes
Check Verify Change
Make this the Standard

• Establish visual controls (boards, taping, signs, etc.) to ensure

progress is maintained.

• Make visual controls understandable to the casual observer.

• Visibly post open actions (Kaizen Newspaper) and leave posted

until completed.

• Lean Facilitator to help establish control and counsel on the

kaizen closure. Make this
• Results must be repeatable and sustainable. the standard
Celebration

Celebrate the success (but not too long) because now you

Do It
Again
Stages of the Kaizen
The Standard Work elements of a Kaizen are:
Do It
Again Celebrate
Start Document
Reality
Make this
the Standard
Identify
Waste

Results:
A new way of work Measure
Results

Plan
Countermeasures
Reality Make Changes
Check Verify Change
Content:
• What is a Kaizen?
• Stages of Kaizen
• Planning and Preparation
• Event
• Report out
• Follow-up
• Appendix
Report Out Content
• Title page
• Team Participants with Photo
• A3, Value Stream Map, or Progress Control Board information to
ensure alignment with business objectives.
• Goals of Kaizen
• Information or Examples showing Lean tool usage that may include:
• Before / After Photos
• Kaizen Implementation Reports
• Spaghetti Diagrams
• Control Charts
• Homework (Kaizen Newspaper)
• Lessons Learned
• Summary

Sample slides from previous report outs are in the appendix

Content:
• What is a Kaizen?
• Stages of Kaizen
• Planning and Preparation
• Event
• Report out
• Follow-up
• Appendix
Follow-up
After the kaizen, the focus must be placed on ensuring that the improvements
continue.

This is done by:

• Reflection with the participants to determine where the kaizen needs

improvement.

• Aggressive follow-up on open Kaizen Newspaper action items by

Black Belt and plant management
• Establish post-kaizen ownership team, include on the Kaizen
Newspaper, and leave in place until open items are closed.

• Development of an “Information Control Center,” providing a visual

and immediate observation of continuous improvement

• Random reviews by plant management. GEMBA

• Floor walkthroughs
• Plant assessments
Kaizen Newspaper Form
Kaizen Newspaper Guidelines

RATING SCALE:
• Multiply Impact x Cost x Lead Time to obtain Total

• Sort numbers by highest to lowest. This will prioritize the top items to work on and also show the ‘cliff’ vs
‘rubble’

NOTES:
• Newspaper should be posted in visible location for all to see (ie: on the floor, or in the office – at GEMBA)

• The Kaizen Newspaper will be a requirement for the Report-Out and will need to be included in the
PowerPoint presentation

• Items on the list should be completed within 60 days.

• Items with leadtime longer than 60 days should be listed on a separate Plant Master Newspaper (use same
form) and reviewed monthly by Plant Management and Lean Leadership to see if they have a high enough
priority number to validate working on or if newer projects should take precedence. Projects on Plant Master
Newspaper could be used for future projects or continuous improvement activities.
Review


Identify what is a Kaizen
 Burst of teamwork to improve a process or correct a
problem preventing the business from achieving its
goal.
 Stages of a Kaizen
 Planning and Preparation

Event

Report Out

Follow-up
Kaizen Commandments

1. No interruptions from outside the Event.

2. No veto power from outside the team.
3. Rank has no privilege.
4. Abandon departmental / silo thinking.
5. Finger-pointing has no place.
6. Avoid scope creep.
7. Use creativity before capital.
8. Think “yes, if…” instead of “no, because…”
9. Get good data, then add experience and “instinct” to the
mix.
10. Seek the wisdom of ten rather than the knowledge of one.
11. Keep an open mind. Challenge existing paradigms.
Challenge everything!
12. Improvements implemented today are better than planning
to implement in the future.
Kaizen Rules
Kaizen Facilitator

The Facilitator has prior experience as a team member and Team Leader. That
experience may be gained through either internal or external Kaizen
participation. When assuming the role of Facilitator, he or she must complete at
least two kaizens.

The Facilitator is responsible for:

• Ensuring that the kaizen goals have been agreed-to by plant Senior Management
and support Regal Beloit’s goals
• Confirming that the area is confined to a specific area or product
• Establishing measurable goals
• Coordinating with the leadership of other departments when the product passes
through their area
• Creating high level process maps to help define the objectives, scope and time
limits
• Developing opening meeting with local management
• Scheduling the team, break out areas, and presentation rooms
• Informing the plant and shop floor as far in advance as possible
• Working with the plant Senior Management to ensure Cost, Quality, Productivity,
Safety and Morale issues in the area are addressed
Kaizen Rules

The Facilitator should:

• Prepare and give training

• Inform the Team Leaders of what is needed and support them

in answering questions on the team’s progress

• Coordinate all logistics requirements

• Provide specific training as needed through Team

observation

• Monitor team performance to daily goals

• Coach and motivate teams as needed

• Assist in developing the report-out

Kaizen Rules
Team Leaders

It is beneficial (but not necessary) that the Team Leader has

prior experience as team member. That experience may be
gained through either internal or external Kaizen participation.
The Team Leader should be a formal or informal leader in the
Kaizen area of focus.

Each team is led by a Team Leader. The leader should:

• Have proven leadership/communication/people skills

• Be experienced in the kaizen process if possible
• Be able to relate to direct labor as well as senior management
• Not be intimidated by senior management (senior management
may be team members)
• Be a stickler for detail, show initiative, and be tenacious in
completing tasks, correctly and on time
• Also empower, coach and facilitate the team in determining
what and how things will be done; not dictating the what and
how
Kaizen Rules

The Team Leader should:

• Pick up Kaizen Kit

• Review baseline with team and give daily assignments

• Participate in all steps of the Kaizen process

• Coordinate equipment moves w/maintenance and Facilitator

• Prepare daily presentation and assignments for final presentations

• Return Kaizen Kit

• Prepare and participate in the follow-up plan.

Kaizen Rules

Team Members

Team composition is critical to success. Everyone must be chosen for a

purpose and should reflect the following:

• “A Different Set of Eyes”

• Internal & External Customers/Suppliers
• Manufacturing Management
• Product/Process/Design Engineers
• Maintenance
• Materials/Purchasing
• Finance/Accounting
• Safety Coordinator
• Influential or Informal Leaders (salaried, hourly, union etc.)
• Effective Problem Solvers/Change Agents
• CAVE People
Standard Kaizen Room Layout
Projection Screen

AV Equipment Laptop
Projector
Screen
TV
Paper
Power Strip
Markers

Wall space
Wall space

Post notes *Note: power strip

Flip Charts cord must be
Snacks taped down to
Lap Top avoid tripping
hazard
Speakers

Wall space
QUICK REFERENCE SHEET – KAIZEN EVENT
Kaizen (Ky’zen) Defined: Gradual, orderly, Agenda: (Plan, Do Check, Act) (PDCA)
continuous improvement. Can be applied to •Day 1 – Set The Scene
Stakeholders & Customers, Scope, Training, Understand your
•
ALL processes, Involves EVERYONE customer (Voice of the Customer) to understand VALUE

PLA
• Value Added, Non-Value Added, Necessary Non-Value
Kaizen Blitz: 1 to 5 day rapid, focused, Added.
intense Kaizen event • Waste Vs Value Added

N
• Where to find Waste (D.O.W.N.T.I.M.E.)
•Day 2 – Observe Current Process
Select Project: Start with a project that is easily measured and • create current stateVSM, gather data, watch for VA, NVA and
management shows enthusiasm for, has a good business case, and will NNVA, find root causes of waste.
allow the involvement of many. Initially avoid processes that are out of •Day 3 – Develop Future State, Prepare PLAN
control, are seen as not needing improvement, or are dependent on other • Brainstorm improvements to process
processes. Gain experience before tackling difficult processes • Create future state VSM
• Develop written plan to go from current to future state
• Include dates and responsibilities
Set Goals: Set high goals for the team to achieve, typical results • Use Gantt chart or other method to track progress, display publicly
include: Productivity Improved by 30%; Setup reduced by 90%; Inventory •Day 4 – Execute
reduced by 50% • Publicly display plan and progress
• Highlight “milestones”

O
The Team:

D
Leader is experienced, is inclined toward action, is open • Hold follow up meetings as necessary (planned)
minded. Members (2 to 9 additional) have an interest, are ‘subject matter • Communicate progress to stakeholders, customers, and team
experts”, can be from outside the area of impact to ask “dumb questions”. members
Remember Team Etiquette • Manage changes to plan
•Day 5 – Report and Analyze
• Report results publicly
Set the Stage: Know “What Done Looks Like”, Eliminate Check & Act
• Compare Actual to Expected
• Understand differences between Actual and Expected
Interruptions, have supplies ready, make sure you have management’s • Standardize positives
support for event. Prepare conference room, be prepared to “go to • What can be learned from negatives
Gemba”. • Share what was learned with others who might benefit
• Define next steps, more PDCA and Kaizen?
Kaizen Rules: Be open to change, everyone involved, stay positive, • CELEBRATE
speak out if you disagree, see waste as an opportunity, no blame
environment, treat others as you want to be treated, ask the silly questions,
challenge the givens, creativity before capital, understand the data and
principles, Just do it!
AVOID: Can’t Because…. Won’t work here, no need to study, already
know the answers, going to do my way anyway.
Saving Calculation

Finance Defines Productivity as “The change in percent Cost

Standard Hours (CSH) minus the change in percent Labor and
Burden (L&B) cost
year over year”.
Cost Standard Hours” are the direct labor hours included in the manufacturing
standards for each product. Each time a product is manufactured, the equivalent
standard hours are earned and counted as CSH.

Productivity in dollars ($) is calculated by multiplying the

resulting %-productivity by the previous year L&B ($).
TIME OUT: ACTIVITY

Now:
More Examples to better understanding
THANK YOU