Advanced Lean

LEAN:

Delivering value to Customers shortest turn around time

Agenda

Agenda
• Lean Overview ~ Recap…..

• Lean Methodology

• Lean Toolkit

• Lean Deployment

• Lean Resources
 Lean History

Agenda
Toyota
Production System

• Single Piece Flow People • Autonomation

Just-in-Time
• Pull Production People

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

Heijunka

• Level Loading
• Sequencing
• Stability

Some Key Lean Concepts developed at Toyota

Lean Thinking
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
Lean Explained
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

Lean Explained
The conventional way: Price = cost +Profit
Increase profit by Price Increase

Price to sell
Some profit Bigger profit

Cost to produce

But, may lose

customers!
Lean Explained
The new way: Price - cost =Profit

Increase profit by Cost Reduction

Price to sell

Some profit
Bigger profit
Cost to produce
Lean Benefits
CycleTime
WaitTime(non
valueadd) Before

WorkTime After
(valueadd)
Sameworkcompleted in
lesstime
✓ Productivity

✓ Cost ✓ Customer satisfaction Cost/Chaos

✓ Defects ✓ Profit

✓ Customer responsiveness
✓ Lead time
✓ Capacity
✓ Inventory
✓ Quality
✓ Space ✓ Cash flow

✓ Waste! ✓ On time delivery

Cycletime

Relentless Focus on Reducing non value adding activities

Lean Usage
Lean vs. Six Sigma

Methodology
Strengths

Defi Meas Anal Impr Cont

ne ure Le yze Six ove rol
an 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
• Centered on Stable,
Boundaryless & Assumes Data is Analysis . Change
Repeatable Process
Multi- Good . . PQ, PR, TAKT
• Mixed Model Plan,
Generational Time • Automation
Kan Ban, Visual
Management

Apply Any Tool from your Quality Tool Box

Lean Usage

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 !!

Lean Usage
Simple or Wing to wing Complex and Focused
Breadth Depth

Lean Lean Six Sigma Six Sigma/Lean

Helps identify steps that don’t add
value and provides
Identifies problems Improves the capability of Improving the capability
tools to in the flow steps that do
add can eliminate additional
eliminate them value steps

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

Lean: Strengthens GE’s journey to Excellence

Lean Usage

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
Unknown Ask an Expert!! Six Sigma

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

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

Lean Toolkit

Level 1 Level 2
Reduce Variability
Control the Process
Tool Sophistication

• Value Stream Mapping

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

Time / Cultural Maturity

Applying the right tools at the right stage

Lean Tool Overviews
Tools and
Actions
Techniques

Bring Organization & 5S Framework

Cleanliness to work area

Underst Value Stream Mapping

and
Value Kanban, Just-in Time
Implement pull-
based flow U-Shaped Cells
Reconfigure work areas
Kaizen Events
Institute continuous improvement
philosophy
Benefits
Realized

Appropriate Tools and Techniques are to be used depending on the need

Lean Tools Description

Exposing the Waste ~ Recap…..

➢ 5S

➢ 7 Wastes

➢ Mistake proofing

➢ Visual Management
5S
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

Muda-7waste
IncorrectLayoutsofoffice,factory,etc.
LackofProximityOfMachines
Off-lineResources

Waiting Watching Machines Work

Long Set-ups and Lead Times
People Overproduction
Large Batches and Inventory
Planning Full Utilization of Machines and
Labor Producing More Goods than Marked
Demand
PoorMachineMaintenance
UnnecessaryProcessing
Processing Steps LongerLeadTimes

Process
LongDelaysforTroubleshooting
CostlyRework
DissatisfiedDownstreamCustomers
Defects Inventory
High Stocks of Raw Material, WIP, & Finished
Goods Additional Space Requirements
Clutter
Product Transportation UnnecessaryMovement
ExtraHandling
“MovingInventory”

At the end, everything results in Cost!!

Mistake Proofing Overview

• A technique for eliminating errors

• Making it impossible to make mistakes

BEST Elimination
> Eliminate the possibility of error
Replacement
> Substitute a more reliable process
Use the highest
Facilitation
level possible for
BETTER
> Make work simpler to perform the application.
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.
Visual Management Overview
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
Lean Methodology

• Lean Overview … Recap

• Lean Methodology
➢ Five Lean Principles

• Lean Advanced Toolkit

• Lean Deployment

• Lean Resources
Five Lean Principles

Tier 2 Tier 1 General Customer

Suppliers Suppliers Electric

LEAN OFFICE

LEAN ENTERPRISE

Lean Enterprise: Maximizing Value Wing to Wing

Five Lean Principles
Lean Thinking
The Fundamental Objective
Provide perfect value to the
customer through a perfect value
creation process with zero waste
in:
➢ Design (concept to
customer)
➢ Build (order to delivery)
➢ Service (order to cash)
Lean: Fundamentally Change how we do business
The Fundamental Insight
➢ Focus on each product and its value
stream rather than organizations,
assets, process technologies, and
career paths
➢ Ask which activities are waste and
which truly create value
➢ Enhance value & eliminate waste
Five Lean Principles

Define value in from the 1 2 Map all of the steps…value

customers perspective Specify Value Map the added & non- value
and express value in Value Stream added…that bring a product
terms of a specific of service to the customer
product

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

The Tools get you there…The Principles keep you there

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
✓ Ask how your current products/services and time
processes disappoint
your customer’s value expectation: ➢ Symptoms; need to find root
causes and eliminate them

➢ price? ➢ 7 types of waste

➢ quality?
• Incidental
➢ reliable delivery?
• Work
• Pure Waste
➢ rapid response to changing needs?
➢ fundamental definition of the product?
• Value

Typical Operation: 1-10% Activities are Value Adding

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

Mapping the VS – See the whole and improve the system

 Five Lean Principles
3. Establish Flow Line up all steps that truly create value in a rapid sequence

✓ Continuous movement of products,

services and information through the ✓ Require that every step in the process be:
various transactions from end to end
➢ Capable – right every time (6 Sigma)
in the process
✓ Flow appears impractical and ➢ Available – always able to run (TPM)
illogical because we have been ➢ Adequate – with capacity to avoid
trained to think in terms of: bottlenecks and over
➢ departments, silos capitalization (right-sized tools)
➢ batches, queues
➢ efficiencies and backlogs
Batch Processing – 1 minute per Continuous Flow – Make One Move One
piece

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

C
Applying the right tools at the right stage
 Five Lean Principles
4. Implement Pull Nothing is done downstream until required upstream

✓ A system of cascading production
and delivery instructions in which
nothing is done by the upstream
supplier until the downstream
customer signals the need
✓ Through lead time compression & correct value
specification, let customers get exactly what’s
wanted exactly when it’s wanted:
➢ At the pull of the customer/next process

➢ Using signals (kanbans)

One more
Okay
please!

supplier customer

Pull: Customer Centric

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

Current State Original State

Continuous Improvement never stops

Lean Advanced Toolkit

Level 1 Level 2
Reduce Variability
Control the Process
Tool Sophistication

Expose the Waste • Value Stream Mapping

• 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

Lean Tools Description

Reduce Variability
Control the Process

➢ Value Stream Mapping

➢ Standardized Work

➢ Introduction to Continuous flow

➢ Introduction to Pull production

<Action Work Out>

Value Stream Overview

Value Stream Mapping

L E A N
ENTERPRISE
Value Stream Overview
View of the entire Supply Chain

SUPPL YOUR PLANT OR CUSTOMER TO

IERS BUSINESS END USER

TOTAL VALUE
STREAM

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

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

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

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

• Map the current state - Identify all the actions

Current that don’t create value. Challenge every step
State
Drawing
• Develop and map concepts for the future state as
a management
team
Future
State
Drawing
• Develop actions and drive toward
future state
Implementation
Plan

After completion….look for other opportunities to improve

Value Stream Mapping
Current Future

Template ~ Create your own

Value Stream Map

Identify AWO opportunities from the Value Stream map

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”

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 Reduce TAT from 3-9Days to
Wait Time: up to 14 days
X
= Routed Less than 4 days
Value Add: ~ 35 Min
Trace Collection Process: VSM

Before
Lead Time: 76 Days 59 Total
Steps

After
Process Flow
Lead Time: 52.35 Days 59 Total
Steps
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
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

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

Normal vs. Abnormal

Why?
Provides the Basis
for Kaizen
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
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
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

Office Processes
Available Time • Check any time if you’re
TAKT time formula: on schedule: Daily 400
in-voices.
Required Output 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

Pers Orders
A B C D
(60”) (60”) (60”) (12”) on
Standard Work: Work Sequence
Element 2

Work Sequence
Standard Work
The order in which an person performs a
• What has to be done? series of repetitive tasks. It should be
• In what sequence? differentiated from the processing sequence,
• How much time can it take? which is the order in which the part is
processed.
Standard Work /
Combination Sheet Standard Work Sheet
Usethis
Producttiion Liine Cell 6 Operattor
Production Line Operator
New / Rev Page 1 of 1 Date 2/6/02 AM X New // Rev Page 1 of 1 Datet 2nd Qtr. ‘0‘
Organization Area Supervisor Part Number
Part Number All Parts
1
Organizattiion Area Superviisor
Standard W or k Shannon Tubing CFM Fern Bissonnette Standard Work Part All Tubes
X-Ray Station 1 & 2 J. David Combination Sheet Part Name Name
Cell Sheet

Template
Time Production Req'd Takt/Rate Time Manual Travel ~~~~~~~~
Sec ( ) Min (X) Hr ( ) Auto Wait Orbital
Step Operation Name
Weld End Finish Weld End Finish
No.. Manual Auto Travel 10 20 30 40 50 60 70 74 80 Weld
1 Check Motor 3 3
Flex
2 Issue DH R 2 2
3 Install Gen. Housing 10 5
4 Install Clips 5 4 Outside Cell
Torch
5 Install Term. Strip 6 6 Braze FP
FPI
6 Install/Wire Latch 4 4 I
X-Ray
Mech. Mech. X-Ray
EDM
7 Jumper Wire to Filter 10 6 Mark Hydro Test ED
Clean Clean
M

Weld End
Finish

Scope of Operattions # Lotts of Tottall Manuall & Travell Tiime Takttt///Rattte

Quallity Safettty Stttandard Sttandard Tiiime
100/Day
Check Precautiion Work-in-Process Operattor Man/Travell Tiime
From::: Raw material
Totals 40 30 Operation Tim e T Work-in-Process
T/ 27 - avg lot = 6
Turns DPU''s
To:: Finished Goods

Physicalordigitaldesign

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

Thank You !!