What is Lean?

Lean Implementation

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An Implementation Services Company

 Agenda

What is Lean?

• Description
• Leadership
• Implementation
• Benefits

© 2003 Kaufman Global, LLC 2

 Objectives of Presentation

• Establish Awareness Concerning “Lean”

• Outline Lean Implementation Focus & Priorities
• Discuss Critical Work streams to Implement Lean
• Portray the Organization to Sustain and Further
Promote CI

© 2003 Kaufman Global, LLC 3

 What is Lean?
• A Leadership Approach &
• A Management Philosophy &
• A Set Of Tactical Methods

> That, As A Complete System, Creates and Sustains:

•
Decreasing Waste, Cost and Cycle Time
•
Increasing Capacity Potential
•
Increasing Quality
•
Low Absenteeism/Voluntary Turnover
•
Extensive Measurement of Key Processes
•
High Levels of Worker Involvement, Ownership and
Commitment
Implementing Lean reduces Lead Time which is the single most important indicator of
our competitiveness; with lead time reduction follows defect & cost reduction we seek
© 2003 Kaufman Global, LLC 4
 Where Does Lean Come From?
Not merely one philosophy or tool, but an evolving interdisciplinary knowledge base

Industry Best Practices Insights From

Mass Production
Group
Dynamics Approaches

Organization
Dynamics

The “Low
Tech”
Approach Toyota Production System
(SMED, kanbans, JIT, TPM,etc.)
Ford Production System
Chrysler Operating System
New Lean Tools ... ... ... ...
(e.g., 20 Keys)
Constraint Management

Current “State of the art” Lean

 Lean Employs A "Low-Tech" Approach

• Focus Intently On The Elimination Of All Waste

• Maximize Productivity And Efficiency From Existing
Processes, People And Systems Before "Buying"
Technological Solutions - Use … Creativity Before
Capital
• Optimize Manual, Low-tech Systems Before
Automating
• Continually Pursue Improvement (Kaizen) Through
The Aggressive Involvement Of Everyone

Lean is ‘High Touch & Low Tech’ Enabling the Involvement Of Everyone!

© 2003 Kaufman Global, LLC 6

 Technology Isn’t the Answer

• Don’t Think That Computer Systems, PCs, E-mail Or

The “Web” Will Help Us Become Truly Competitive
• Technology Is A Product In Our Industry, Not A Business
Process
• Technology That Everyone Possesses Bestows A
Competitive Advantage On No One
• Among Technological Equals, Technology Is A Constant,
Like Helmets In The NFL (You Suffer If You’re The Only
One Without One; Having One Confers No Advantage If
Everyone Else Has One)

If You Look To Technology To Save Us, We Will Be Caught

From Behind, Overrun And Butchered By The Competition
© 2003 Kaufman Global, LLC 7
 Learn to Recognize the Types of Waste
Lead time reduction is achieved by identifying and eliminating waste

Overproduction / Making To Much

Ties up capital, diverts production
PEOPLE from customer requirements, loss
of inventories

Transporting / Moving Things

Motion Unnecessarily increases
production time, extra WIP
Processing Waiting
Unnecessary Stock / Inventory
TYPES Ties up capital, risk of changes
OF
QU

Fixing WASTE Waiting

Inventory Decreases productivity, wastes
Defects
AL

personnel resources
ITY

Making Too Moving Unnecessary Motion

Much Things Increases production time,
unnecessary operator motion
Y
UANTIT Processing
Q Poorly designed / incapable
processes

From Taiichi Ohno, Architect of the Toyota Production System Defects

Scrap, rework, returns
© 2003 Kaufman Global, LLC 8
 So… What’s Driving The Waste?

• Distance (plant layout) • Supplier quality

• Long set-up times • Workplace organization
• Incapable processes • Historic supervisory
• Poor maintenance roles
• Ineffective performance
• Poor work methods measurements
• Lack of training • Poor planning or
• Adherence (or not) to scheduling
processes • … What else?

Teams learn to work together to rapidly implement solutions for these barriers

© 2003 Kaufman Global, LLC 9

 Value-Added vs. Non Value-Added
… from the the Customer’s Perspective

Value-Added Non Value-Added


Transforms the product 
Does not transform the
or the documentation in product or documentation
some way that meets 
Does not lead to fulfilling a
customer requirements Customer Requirement
(and has not previously
been attempted)

Reworks a previous
mistake or
misunderstanding
Waste is Non Value-Added. Work constructs that “serve the configuration” (and not
the customer) are enablers of waste
© 2003 Kaufman Global, LLC 10
 Critical Difference From Past CI Initiatives
Places A Focus on Non Value-Added
Segment Targeting Lead Time Reduction

Typical company VA NVA Original lead time

Traditional
process VA NVA
improvement Minor
improvement
Kaizen waste Major
VA NVA
reduction improvement

• Reducing value-added (VA) activities results in only minor gains

• Reducing waste results in major lead time reductions
Don’ t make capital investments on improving VAs
until the NVAs achieve equilibrium with the VAs
© 2003 Kaufman Global, LLC 11
 Benefits of Lean
• The Benefits Are There For The Taking
• The Benefits Always Include Increased Market
Share, Lowered Cost Higher Profits And Happier
Customers (And Shareholders)
• “Lean” Is The Only Answer Known That Provides
These Benefits
• “Lean” Never Fails If You (R-E-A-L-L-Y) Do It
• Saying “Lean” Is Not Doing Lean
• Every Successful Business That Competes In An
Over-capacity Or Price-sensitive Market Is Doing
“Lean” Whether They Know It Or Not
© 2003 Kaufman Global, LLC 12
 Lean Approaches and Techniques
… Many Tools are Available to Help Eliminate Waste
WASTE
CATEGORY TYPE OF REDUCTION METHOD FOCUS PRINCIPAL DESIRED
OF WASTE WASTE POINTS WORKSHEETS RESULT
APPROACH
Layout Standard Work
Standard Work Labeling Sheet (SWS)
Processing Time Observation Highly
Tools/Parts
Arrangement Form (TOF) Efficient,
Workplace Work Instructions Standard Work Safe
Workplace Organization Efficiency Combination Work
PEOPLE Motion Sheet (SWCS) Areas
Management Work Load
Takt Time
Kaizen - one Kaizen Balancing Sheet With
Skills Training (WLBS) High
effective Shift Meetings Output
Kaizen Target
method among Waiting 20 Keys Cell/Area Teams Sheet (KTS)
many that Kaizen Action
Visual Displays Sheet (KAS)
engages PEOPLE
Leveling Work Balance SWS
and “recruits” Inventory SWCS
WIP What
the other tools Location/Amount WLBS You
Moving Kanban Kanbans
Kanban Location Need,
QUANTITY Things Just-in-time Table of When
Quick Setup Kanban Types Production You
Lot Sizes Capacity By Need
Making Too Process (TPCP) It
Preventive Changeover Analysis
Much PM Scheduling
Maintenance PM Analysis Sheet (PMSS)
Appropriate AutomatedSWCS
Detection Assistance
Error Warning Fixture Modifications Error Proofing
Action Sheet
Proofing Successive Checks (EPAS)
Fixing Prediction Good
QUALITY Limit Switches
Defects Error Proofing “To Quality
Prevention Check Sheets Do” List (EPL)
Autonomation Photocells, Templates,
Jidoka Etc. Skill Versatility
Visual Display
Cross Training
 Kaizen = Continuous Improvement
• “Kai” = Small, Continuous Change Building Blocks of Lean Production
• “Zen” = Ongoing Change For The • Just-in-time
Better
• Standard operations
• Structured, Focused, Coached,
Mandated & Required Activity To • Mistake-proof processing
Compel Every Employee To
Participate In Improving The Quality
• Pull production & single piece flow
And Efficiency Of Their Day-to-day • Cellular manufacturing
Micro-processes
• Visual workplace
• Not A “Suggestion Box” Program

Kaizen is the “transport vehicle”

to import these building blocks
of lean production

These concepts are equally applicable to the factory floor and within the office
© 2003 Kaufman Global, LLC 14
 Guidelines for Kaizen

• Reject the current situation • There’s no such thing as a dumb

• Keep an open mind to change question

• Maintain a positive attitude • Take action over excuses and

make actual improvements now
• Make problems visible; make
• Get on base rather than go for
the workplace visual
the long ball (small progress vs.
• Never leave in silent all)
disagreement
• Use your head rather than your
• Practice mutual respect every money
day
• Destroy myths of fixed production
• One person, one voice - no
• It’s a never ending task
position or rank
• HAVE FUN and JUST DO IT!

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