1.

Identify the value

2. Map the value stream
3. Make the process flow
4. Enable Pull
5. Strive for Perfection
 Definition of Lean
Identification & elimination of waste from the process to "Increase Efficiency" without compr

A B C D E F
1.Identify the value In Lean… all answers are given from customer's standpoint… (End)
If there is conflict between organization interest, profit and / or customer's
"Will the customer be willing to pay for this activity?
Is this activity important in the eyes of customer????
No……
If I remove this step, will my process / product/service fail???
Is this step making my product/service, is it doing it anything with my product /service.. Forma
NO……
Waste "Muda"
RNVA Required Non Value Added Waste NVA
ENVA Essential Non Value Added Waste Non Valued Added Waste
BNVA Business Non Value Added waste "Pure,,, Try to remove all out of
"Can't remove them but Reduce them"
Training T Transportation
Quality 40 Trainers…. 13 locations I Inventory
HR Centralized…. 5 best trainers… M Motion
Accounts Negotiation Skills W Waiting
Finance Analytics Skills O Over Production
O Over Processing
"Utlization%" D Defects (Reworks)
S Skills (Unutilized)
"Sphagetti Diagram"
Cellular Layout….

2. Map the value stream

Gemba Walk "Real Place" "Go & See It Yourself"

"You observe the process, people, machine, material, WIP etc…."
Never interfere with the process,,, no suggestion to be made….
Always carry a pen / paper…..makes notes//scribble… images….
Watch at least 10-15 repetition of every task being done at every stage…..

High Level Process Map >>>> SIPOC

Supplier Input Process Output
"Works on the process"

Raw
Customer / Order from Material
Store / Customer / Raw Ready for
Vendor Supplier Material Production
 Raw
Material
Production Ready for Production Finished
Team Production Process Goods

Quality Finished Quality Good/Bad

Team Goods Testing Products

Packaging Good Products

Team Products Packaging Packaged

Shipped to
Logistics Products the
Team Packaged Logistics customer

"Map the value Stream"

You look out for all possible areas where waste is evident…
Select areas where we can implement lean tools to cut down the waste….
"Waste needs to be identified in terms of Muda … TIMWOODS….. MURA/MURI"

3. Make the process flow "When there is no waiting" WIP --- Inventory.. ."Waiting"
People Waiting….
Batch vs Single Piece Flow >>>>>>

4. Enable Pull Push Production vs Pull Production

You only procure required raw material when a demand is created…
Process the raw material & ship it….no storage…

"Supermarket" >>>>> FIFO… First in First Out

5. Strive for Perfection
Kaizen Small incremental changes in the process done by Gro
"Kai + Zen" …. Change for Betterment….
"Continuous Improvement xxxxx" ……….."Continual
No stops,,, direct end to end…..
Never ending….
Kaizen never fails…. It's never complete….
It's driven bottom to top….
0.0001% ……1000 people….
My tomorrow should be better than today….
100%>>>>>>>>>>1% …. Great…..What's next….

Top Bottom Approach Kaizen

Six Sigma Bottom Top Approach
Lean Management >>>>>>>>>>>>>>>>>Skills Training
Training People Cross Training.
Cross Training People
Creating Culture
Award, Reward people for change
Performance Criteria
Audit Criteria….
 crease Efficiency" without compromising on Quality of product/service…
$800+$200
10 Days $1k
stomer's standpoint… (End)
interest, profit and / or customer's viewpoint…. Customer will always win….

VA Yes….Value Added Activity

with my product /service.. Formation… is it transformi Yes… Value Added Activity

7 Types of Wastes + 1
Non Valued Added Waste 3 Min+3 Min = 6 Min
"Pure,,, Try to remove all out of it….." 3 Printout === 18 Min / day
26 days ….
Transportation All unnecessary movement of material or thing….
Mother of waste… "Raw Material" $100
Unnecessary movement of people
Waiting for approval, material, resources…instruction
Over Production Finished Goods…. $200
Over Processing Doing more than required….
Defects (Reworks)
Skills (Unutilized) Micromanagement

e It Yourself"
ine, material, WIP etc…."
ggestion to be made….

very stage…..

>>High level process.. Not detailed…

Customer Only major steps are covered Max of 5-6 steps
"Benefiting from Output" Always draft Process first

Production
Team
Every SIPOC is a flow chart but every flow chart is in Swimlane Diagram
 Quality
Team "Swimlane Diagram"
If your process flows across departments
Packaging
Team Supplier
Production
Logistics
Team Quality
Packaging

Customer Logistics

the waste….
DS….. MURA/MURI"

WIP --- Inventory.. ."Waiting"

People Waiting….
10
9
8
when a demand is created… 7
6
5
rst in First Out 4
3
hanges in the process done by Ground Staff…. 2
ge for Betterment…. 1
vement xxxxx" ……….."Continual Improvement"
nd to end….. First IN First Out…..
FIFO 5% VALUE ADDED
"Process of implementing & learning" 20% ENVA
75% WASTE
365
387.1826
Min = 6 Min
t === 18 Min / day JIT… Just in Time
26 days …. 468 Month right time
5616 Year Min right place
93.6 Hour right Quantity
11.7 Convert to Day right quality
right price…..
Empty
Always start with Process First
Explain process in max 5-6 steps

Y = F(X)…………………….X1 X2 X3 X4 X5
X2 X3 X4 X5
Cycle Time>>> Touch Time…
Actually working on the product
Sort What are the things which you need to do your daily job?
Keep the things which you need to accomplish your daily job… discard ot
"If you need to search for something,,, you lack this "S" "

Set In Order "Everything has a place & Everything in it's place"

You have keep the things in the order in which you need them

Shine Keep it neat & tidy….. It's not a housekeeping person

Standardize Make a Standard Operating Producure… (SOP)…..

Labeling, Colour Coding, File Nomenclature….
GB_20022021
GB_20022021.v2

Sustain "Management Responsibility" --- This is implemented….

Auditing,,,, ,Planned & Surprise….
Performance Metric,,,, Awards/Rewards…
5s Dashboard……
Pre-Post Shifting Meeting…. 5s Discussion

Safety Steering Committees…. To prevent Failure / Accidents at work

Health hazards with respect the the kind of job we do….
Risk Register……
do your daily job? Clean up the mess
mplish your daily job… discard others….
ou lack this "S" "

erything in it's place"

he order in which you need them to be assessed….

It's not a housekeeping person's responsibility

roducure… (SOP)…..
Nomenclature….
BOok1

--- This is implemented….

s/Rewards…

s Discussion

event Failure / Accidents at work place…

he the kind of job we do….
Takt Time Available Time / Customer Demand Rate at which the production needs to be done to
Customer Demand is 1000 In a month
In a day 8 Hours 7 Hours>>> Min
Break 1 Hour 26 days per month (work s
Available / Day 7 Hours

Available Time 10920 min

Customer Demand 1000 piece
10.92 min/piece

Reported to external client Yield

For stage level process owners Throughput Yield First Pass Yield First Time Right

For Overall process Rolled Throughput Yield

Mgr 1 Mgr 2 Mgr 3

Begins Process 1 Process 2 Process 3
Input 50 46 46
Scrapped 4 0 9
Reworked 6 12 0

Error Free 40 34 37

TPY 0.8 0.73913 0.804348

RTY 0.47561437

There is a process with 5 stages every process has a defect of 10%, i.e. 90% of TPY… Calculate RTY

Step 1 Step 2 Step 3 Step 4 Step 5

0.9 0.9 0.9 0.9 0.9 0.59049

100 90 81 72.9 65.61

90 81 72.9 65.61 59.049

Examples>>>>>
Calculate RTY wherein there is 3 step process each with 15% defect rate.
 Calculate TPY for every level & overall productivity i.e. RTY for the following pro

A B C D
Input 150 130 120 90
Output 130 120 90 75
duction needs to be done to complete the order

7 Hours>>> Min 420 Min

26 days per month (work sch) 10920 MIn

0.74 Client doesn't need to know about reworks….

First Time Right

1 0.9 0.81 0.729

A B C D
100>>> 0.9 0.81 0.729 0.6561

Yield 37 50 0.74

We do not give credit for rework…. Rework = Scrapped

We do not give credit for rework…. 85%

f TPY… Calculate RTY

h 15% defect rate.

e. RTY for the following process