Lean Transformation - Getting Started - 240321 - 072301

The 20 Keys
To Workplace Improvement
The Lean Transformation

Enterprise Excellence
20 Keys: Lean Transformation
• Strategy Maps
– Popular Improvement Programs
• Policy Deployment (Hoshin Kanri)
– Project Management
• Balanced Scorecards
– Strategic Goals & Tactical Initiatives
• Information Dashboards
– Real Time Actionable Information
• 20 Keys Relationship Diagram
– Measurable Initiatives
Strategy Maps: Lean Transformation
1-Financial
Strategy
2-Customer
Maps
3-Internal
4-Growth
Deployment: Lean Transformation
1-Financial
Strategy
2-Customer
Maps
3-Internal
4-Growth
1-Strategies
Deployment
Policy 2-Tactics
3-Metrics
4-Results
Scorecards: Lean Transformation
1-Financial
Strategy
2-Customer
Maps
3-Internal
4-Growth
1-Strategies
Deployment
Policy 2-Tactics
3-Metrics
4-Results
1-Objectives
Scorecards
Balanced
2-Initiatives
3-Measures
4-Targets
Dashboards: Lean Transformation
1-Financial
Strategy
2-Customer
Maps
3-Internal
4-Growth
1-Strategies
Deployment
Policy 2-Tactics
3-Metrics
4-Results
1-Objectives
Scorecards
Balanced
2-Initiatives
3-Measures
4-Targets
Dashboards
Actionable
20 Keys
to
Workplace
Improvement
1-Financial
Strategy
2-Customer
Maps
3-Internal
4-Growth
Long-Term
Financial Profit Plan
Perspective Improve Cost Increase Asset Expand Revenue Enhance
Structure Utilization Opportunities Customer Value
Customer Value Proposition

Customer Price Delivery Partnership Life-Cycle
Perspective
Quality Service Warranty Society
Operations Customer Innovation Regulatory

Internal • Supply • Selection • Opportunities • Environmental
• Production • Acquisition • R&D Portfolio • Health & Safety
Perspective • Distribution • Retention • Design • Employment
• Risk • Growth • Launch • Industry
Growth Human Information Organizational

Perspective Capital Capital Capital
Financial Program Development (PD)
Perspective How Production Flows
Customer Job Methods (JM)

Perspective How People Improve Processes Training
Within Industry
(TWI)
Internal Job Instructions (JI)
Perspective How People Work
Growth Job Relations (JR)

Perspective How People Connect
Program
Financial Systems Thinking
Development
Perspective (Theory of Constraints)
(PD)
Job
Customer Statistical Methods
Methods
Perspective (Process Controls)
(JM)
Profound
Knowledge
Job
Internal Knowledge Theory
Instructions
Perspective (Subject Matter Experts)
(JI)
Job
Growth Psychology
Relations
Perspective (Leadership & Teamwork)
(JR)
Program Systems
Financial 2-Create Flow
Development Thinking
Perspective (Link Stability)
(PD) (TOC)
Job Statistical
Customer 1-Reduce Variation
Methods Methods
Perspective (Establish Stability)
(JM) Lean (CI)
Six
Job SigmaKnowledge
Internal 3-Eliminate Waste
Instructions Theory
Perspective (Standardized Work)
(JI) (SME)
Job Psychology
Growth 4-Add Value
Relations (Leadership
Perspective
(JR) & Teamwork) (Continual Improvement)
Program Systems Foundation
Financial Create
Perspective
Development Thinking
Flow
(Long-Term
(PD) (TOC) Profit Plan)
Job Statistical Faster

Customer Reduce
Perspective
Methods Methods
Variation
(Repeatable
(JM) (CI)
20 Keys to Methods)
Workplace
Improvement Cheaper
Job Knowledge
Internal Eliminate
Perspective
Instructions Theory
Waste
(Reliable
(JI) (SME) Equipment)
Job Psychology Better

Growth Add
Perspective
Relations (Leadership
Value
(Robust
(JR) & Teamwork) Quality)
Strategy
Maps
1-Strategies
Deployment
Policy 2-Tactics
3-Metrics
4-Results
Scorecards
Balanced
Information
Dashboards
Financial: Competitive Advantage
...
Growth: Organizational Learning
Customer: Adapt Quickly to Changes
Internal: Provide Safe Environment
...
...
Better: Loss Rate < 2.0%

20 – Leading Technology
2 – Rationalize the System

1 – Clean & Organize (5S)
Cheaper: Gross Profit > 15%
Safer: OSHA Accidents < 0.5%

3 – Improvement Team Activities
Faster: On Time Delivery = 100%

Radar Charts (Score 1 – 5)
Management by Objectives (MBO)
Six Implemented Improvements (A3)
...
Radar Charts (Benchmarking Results)
Edgar Perez
Iris Labadie
John Hatakeyama
...
Team Leader
Mary Jones
What?
...
Strategies
...
...




...
Edgar Perez
Iris Labadie
John Hatakeyama
Legend
...
Team Leader
Mary Jones
...
Strategies
...
...




Metrics
...
Edgar Perez
Iris Labadie
John Hatakeyama
Legend
...
Team Leader
Mary Jones
Why?
...
...
Strategies
...
How?
Tactics

2 – Rationalize the System (MBO)

Metrics
...
Edgar Perez
Iris Labadie
Legend
...
Team Leader
Mary Jones
...
...
Strategies
...
Tactics


Metrics
...
Taiichi Ohno
W. Edwards Deming
Bruce Tuckman
Legend
...
Team Leader
Walter Shewhart
Who?
Where?
...
...
...
Strategies

Tactics
Results
When?


Metrics
...
Taiichi Ohno
W. Edwards Deming
Bruce Tuckman
Legend
...
Team Leader
Walter Shewhart
...

Tactics


Strategies

Metrics
W. Edwards Deming
Walter Shewhart
Bruce Tuckman
Taiichi Ohno
...
Results
...
...
Team Leader
Better: Loss Rate < 2.0% Legend
Strong Positive
+ Positive
Cheaper: Gross Profit > 15% Neutral (blank)
- Negative
...
Strong Negative
Correlation!
Strategy
Maps
Deployment
Policy
1-Objectives
Scorecards
Balanced
2-Initiatives
3-Measures
4-Targets
Information
Dashboards
Internal
Objectives
Measures
Targets
Initiatives
Growth
Financial
Objectives Objectives
Vision & Strategy
Measures Measures
Targets Targets
Initiatives Initiatives
Customer
Objectives
Measures
Targets
Initiatives
Material Method
Results
Machine Manpower
Internal
(Material)
(Machine)
Financial
Measures Measures
Targets Targets
Growth
(Method)
Customer
(Manpower)
Measures Measures
Targets Targets
Results
Strategy
Maps
Policy
Deployment
Balanced
Scorecards
Information
Dashboards
to
20 Keys
Workplace
Improvement
Dashboards: Lean Transformation
1 20
11
9 12
7 16
Better
14 5
6 Safer 4
17 8
18 15
19 13
10
2 3
Financial
Customer
Cleaning &
Organizing
(4S) Internal
1
5S
Growth
Sort, Straighten, Scrub, Standardize

• Key 1: Cleaning and Organizing (4S)
• 1S - Sort
• 2S - Straighten
• 3S - Scrub
• 4S - Standardize
• 5S - Sustain
• 6S - Safety 5S
• 7S - Security
Financial
Customer
2
Rationalizing MBO
the
System Internal
1
5S
2 Growth

• Key 2: Rationalizing the System
• Management by Objectives (MBO)
• Convergence of Top-Down and Bottom-Up
• Nemawashi
• Catch Ball
• Consensus
• Handshake
Financial
Customer
2
Improvement MBO
Team
Activities Internal
1
5S
2 3 Growth
3
A3 Problem Solving Report Teams
• Key 3: Improvement Team Activities
• Problem Solving Report (A3, 8D, 6s)
• 1D - Recognize (KPI)
• 2D - Define
• 3D - Measure
• 4D - Analyze
• 5D - Improve (PDCA) A3
• 6D - Control
• 7D - Standardize
• 8D - Integrate
Financial
4
1 VSM
Customer
2
Reducing
MBO
Inventory &
4
Shortening Internal
Lead Times 1
5S
2 3 Growth
3
Value Stream Map (VSM) Teams
• Key 4: Reducing Inventory
• Overproduction
• Identify and Eliminate Root Causes
• Product Family Matrix
• Current State Value Stream Map
• Future State Value Stream Map
• Transition Plan
• Project Management
• Key 4: Reducing Inventory
TECHNOLOGY DESIGN & FEEDBACK

(R&D) RE-DESIGN OF (MARKETING)
PRODUCTS &
PROCESSES
AFFECT ON AFFECT ON
MATERIALS PRODUCTS
AFFECT ON
PROCESSES
SUPPLIERS CUSTOMERS
(Material, Services, (Distribution
& Equipment) VALUE STREAM & Sales)
(Information &
Material Flow)
Financial
4
1 VSM
Customer
2
5
Quick MBO
Changeover 4
Technology Internal
1 5
5S SMED
2 3 Growth
3
Single Minute Exchange of Die (SMED) Teams
• Key 5: Quick Changeover Technology
• Single Minute Exchange of Die (SMED)
• Separate Internal and External Tasks
• Convert Internal to External Setup
• Standardize Function not Shape
• Use Functional Clamps or Eliminate Fasteners
• Use Intermediate Jigs
• Parallel Setup Tasks
• Eliminate Adjustments
• Mechanization
Financial
4
1 VSM
Customer
2 6
5
Manufacturing MBO Value
6 Value 4
Analysis Internal
1 5
5S SMED
2 3 Growth
3
Worker Movements (Motion) Teams
• Key 6: Manufacturing Value Analysis
• Motion
• Improve Methods (TWI: Job Methods)
• Increase Efficiencies
Net Work
7 Wastes
Non-Value Added
Non-Essential
Worker
Move-
Value Add
ments
Non-V Essential
Value Added
Non-V Non-E
Non-Value Added Queues
Essential
Value Add
Time
Non-value
Value Added
Non-Value Essential 40% 35%
Non-Value Non-Essential
Queues 15% 10%
Value Add
“All we are doing is looking at the

time line from the moment the
Time
customer gives us an order to the
point when we collect the cash. And we
Non-value
are reducing that time line by removing
the non-value added wastes.”
- Taiichi Ohno
Value Added
Non-Value Essential 40% 35%
Non-Value Non-Essential
Queue 15% 10%
Financial
4
1 VSM
Customer
7
2 6 7
5
MBO Value 6 Sigma
Zero Monitor
6 4
(Zero Defects) Internal
1 5
5S SMED
2 3 Growth
3
Six Sigma Defect Reduction Teams
• Key 7: Zero Monitoring
• Zero Defect Campaign
• Poka Yoke
• Six Sigma Performance
• Defect Reduction
• Attribute Data (DPMO)
• Process Capability Sigma DPMO Cpk
• Variable Data (Cpk) 2
3
308,537
66,807
0.67
1.00
4 6,210 1.33
5 233 1.67
6 3.4 2.00
Financial
4 8
1 VSM Flow
7 Customer
2 6 7
5
MBO Value 6 Sigma
Coupled
6 4
Manufacturing Internal
8 1 5
5S SMED
2 3 Growth
3
Creating Flow – Linked Stability Teams
• Key 8: Coupled Manufacturing
• Creating Flow
• Building Cooperation
• Linking Stability
• Pull Mechanisms
• Kanban
• FIFO Lanes Kanban
• Supermarkets
Financial
4 8
1 VSM Flow
9
7 Customer
2 6 7
5
MBO Value 6 Sigma
Maintaining
6 4
Equipment Internal
8
1 5 9
5S SMED TPM
2 3 Growth
3
Total Productive Maintenance (TPM) Teams
• Key 9: Maintaining Equipment
• Total Productive Maintenance (TPM)
• Overall Equipment Effectiveness (OEE)
• Availability = Actual / Planned Time
• Performance = Actual / Standard Units
• Quality = Good / Total Units
TPM - OEE
OEE = A x P x Q
Financial
4 8
1 VSM Flow
9
7 Customer
2 6 7
5
Time Control MBO Value 6 Sigma
6 and 4
Commitment Internal
8
1 5 9 10
5S SMED TPM Time
10
2 3 Growth
3
Standardized Work Teams
• Key 10: Time Control and Commitment
• Standardized Work
• Prerequisites
• Reliable Equipment (TPM)
• Repeatable Methods (JIT)
• Robust Quality (TQM)
• Elements
• Cycle Times (Takt) Tools
• Standard Inventory • Work Chart
• Combination Table
• Sequenced Work • Capacity Sheet
• Tools • Time Study
• Balance Chart
Financial
4 8
1 VSM Flow
9 11
7 Customer
2 6 7 11
5
Quality MBO Value 6 Sigma TQM
6 Assurance 4
System Internal
8
1 5 9 10
5S SMED TPM Time
10
2 3 Growth
3
Total Quality Management (TQM) Teams
• Key 11: Quality Assurance System
• Total Quality Management (TQM)
• ISO-9001 Quality Management Standard
• Juran’s Quality Trilogy
• Planning
• Controlling
• Improving
Financial
4 8
1 VSM Flow
11
9 12
7 Customer
2 6 7 11
5
MBO Value 6 Sigma TQM
Developing
6 4
Suppliers Internal
8
1 5 9 10
5S SMED TPM Time
10
2 3 Growth
3 12
Lean Supply Chain (NAPM) Teams Partners
• Key 12: Developing Suppliers
• Lean Supply Chain – Strategic Partners
• Sustainable Solutions
• Packaging Materials
• Inventory Optimization
• Distribution and Transportation
• Performance Evaluation Weakest Link?
• On Time Delivery
• Total Cost
• Quality
Financial
4 8
1 VSM Flow
9 11 12
7 Customer
2 6 7 11
Eliminating 5
Waste
6 4
(Treasure Internal
Map) 8
1 5 9 10 13
5S SMED TPM Time Waste
10 13
2 3 Growth
3 12
Muda, Mura, and Muri Teams Partners
• Key 13: Eliminating Waste
• Treasure Map
• Muda – 7 Wastes
• Correcting Defects
• Overproduction
• Over Processing
• Motion
• Waiting
• Inventory Wastes
Organization Level
• Conveyance Muri
• Mura – Unevenness Mura
• Muri – Overburdened Muda

Financial
4 8
1 VSM Flow
9 11 12
7 Customer
2 6 7 11
14 5
Empowering
6 4
Workers Internal
8
1 5 9 10 13
5S SMED TPM Time Waste
10 13
2 3 Growth
3 12 14
Consensus Decision Making Teams Partners Empower
• Key 14: Empowering Workers
• “Tell me, I’ll probably forget.
• Show me, I might remember.
• Involve me, I will understand!”
• Transfer Decision Making
• Responsibility
• Accountability Gung Ho!
• Authority Spirit of the Squirrel
• Worthwhile Work
Way of the Beaver
• Control of the Goals
Gift of the Goose
• Cheering for Results
Financial
4 8
1 VSM Flow
9 11 12
7 Customer
2 6 7 11
14 Skills 5
Versatility
6 4
& Cross- Internal
Training 8
1 5 9 10 13
15 5S SMED TPM Time Waste
10 13
2 3 Growth
3 12 14 15
Training and Development (ASTD) Teams Partners Empower Skills
• Key 15: Skills Versatility and Cross-Training
• TWI: Job Instructions
• Repeatable Methods
• Job Breakdown Sheet
• Job Safety Analysis
• Institute On-the-Job Training
• Required Skill Training Matrix
• Trained Dept
AB
A B C D
Skills
E F G H I J
• Qualified
CD
Employees
EF
GH
• Trainer
IJ
KL
Financial
4 8 16
1 VSM Flow JIT
9 11 12
Customer
7 16
2 6 7 11
14 5
Production
6 4
Scheduling Internal
8
1 5 9 10 13
10 13
2 3 Growth
3 12 14 15
Just-in-Time (APICS) Teams Partners Empower Skills
• Key 16: Production Scheduling (JIT)
• Value Stream Map “Loops”
• Pacemaker Cell (Flow)
• System Constraint
• Level Mix and Volume (OXOX)
• Single Point Scheduling (EPEX)
• Common Resources (Pull) Production Control Board
• Schedule Information
Time Part Plan Act ???
• Suppliers
...
Financial
4 8 16
1 VSM Flow JIT
9 11 12
7 16 Customer
2 6 7 11 17
14 5
MBO Value 6 Sigma TQM Takt
Efficiency
6 4
Control Internal
17 8
1 5 9 10 13
10 13
2 3 Growth
3 12 14 15
Standards vs. Takt Teams Partners Empower Skills
• Key 17: Efficiency Control
• Direct Labor Hours
• Engineering Time Standards
• Takt
• Customer Demand
• Capacity Utilization
• Earned Value Wastes
Cycle Times
Operator Balance Chart
Total
• Value Engineering Takt Time

Time per Unit
(Available Time)
(Customer Demand)
Headcount
(Total)
(Takt Time)
Process (Operation Sequence)

Financial
4 8 16
1 VSM Flow JIT
9 11 12
7 16 Customer
2 6 7 11 17
14 5
Information
6 4
Systems Internal
17 8
1 5 9 10 13
18 15 5S SMED TPM Time Waste
10 13
2 3 Growth
3 12 14 15 18
Actionable Dashboards Teams Partners Empower Skills Info!
• Key 18: Information Systems
• Microprocessors
• CAD/CAM
• CIM
• CNC
• PC Applications
• Dashboards
• Real Time Information
• Visual Factory
• Actionable Data
Financial
4 8 16 19
1 VSM Flow JIT Conserve
9 11 12
7 16 Customer
2 6 7 11 17
14 5
Conserving MBO Value 6 Sigma TQM Takt
6 Energy & 4
Materials Internal
17 8
1 5 9 10 13
19 10 13
2 3 Growth
3 12 14 15 18
Cost Reduction Initiatives Teams Partners Empower Skills Info!
• Key 19: Conserving Energy and Materials
• Cost Savings Initiatives
• Improve Stakeholder Returns
• Social Responsibility
• Minimize Corporate Footprint
• Technologies
• Energy Consumption Reduce-Reuse-Recycle
• Material Utilization
Financial
4 8 16 19 20
1 20 VSM Flow JIT Conserve Plan!
9 11 12
7 16 Customer
2 6 7 11 17
14 5
Leading
6 4
Technology Internal
17 8
1 5 9 10 13
19 10 13
2 3 Growth
3 12 14 15 18
Constancy of Purpose Teams Partners Empower Skills Info!
• Key 20: Leading Technology
• Generation-to-Generation
• Long-Term Projects and Profitability
• Benchmarking World Class Practices
• Ongoing Education and Self Improvement
• Constancy of Purpose
Looking to the Future
$
Financial
4 8 16 19 20
1 20 VSM Flow JIT Conserve Plan!
9 11 12
7 16 Customer
2 6 7 11 17
14 Strategy Map 5
Perspectives MBO Value 6 Sigma TQM Takt
6 and The 20 Keys 4
To Workplace Internal
17 Improvement 8
1 5 9 10 13
19 10 13
2 3 Growth
3 12 14 15 18
Teams Partners Empower Skills Info!
Material Method
(TWI PD) (TWI JM)
#16 JIT #2 MBO
#20 $ Plan #17 Efficiency (Takt)
#19 Conserve #6 Value
#8 Flow #11 TQM
#4 Inventory (VSM) #7 Six Sigma
Results
#10 Standardized Work #3 Teams
#13 Waste #18 Information
#5 SMED #15 Skills
#1 5S #14 Empowered
#9 TPM #12 Partners
Machine Manpower
(TWI JI) (TWI JR)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
1
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
1 Initial Awareness – Baseline (Benchmarking & Training)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
2 Below Average – Establish Stability (Reduce Variation)
1
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
3 On Par – Link Stability (Create Flow)
1
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
4 Above Average – Standardized Work (Eliminate Waste)
1
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
5 World Class – Continual Improvement (Add Value)
1
Dashboard
Better Faster Cheaper
5S TPM - OEE 20 Keys

Enterprise Excellence
Continuous Improvement
Standardized Work
Better Faster Cheaper
TQM JIT TPM
Problem Solving : Customer : TWI JM : Repeatable Methods : Statistical Methods : Reduce Variation
People & Partners : Growth : TWI JR : Robust Quality : Psychology (Leadership & Teamwork) : Add Value
Process : Internal : TWI JI : Reliable Equipment : Knowledge Theory : Eliminate Waste
Philosophy : Financial : TWI PD : Profitability : System Thinking (Theory of Constraints) : Create Flow
Kenneth M. Albrecht
Certified Lean Six Sigma Black Belt

Certified Project Manager

Lean Transformation - Getting Started - 240321 - 072301

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The 20 Keys

The Lean Transformation

Customer Value Proposition

Operations Customer Innovation Regulatory

Growth Human Information Organizational

Customer Job Methods (JM)

Growth Job Relations (JR)

Job Statistical Faster

Job Psychology Better

Better: Loss Rate < 2.0%

2 – Rationalize the System

Cheaper: Gross Profit > 15%

Safer: OSHA Accidents < 0.5%

Faster: On Time Delivery = 100%

Better: Loss Rate < 2.0%

2 – Rationalize the System

Cheaper: Gross Profit > 15%

Safer: OSHA Accidents < 0.5%

Faster: On Time Delivery = 100%

Better: Loss Rate < 2.0%

2 – Rationalize the System

Cheaper: Gross Profit > 15%

Safer: OSHA Accidents < 0.5%

Faster: On Time Delivery = 100%

Better: Loss Rate < 2.0%

Cheaper: Gross Profit > 15%

Safer: OSHA Accidents < 0.5%

Better: Loss Rate < 2.0%

Cheaper: Gross Profit > 15%

Safer: OSHA Accidents < 0.5%

Better: Loss Rate < 2.0%

Safer: OSHA Accidents < 0.5%

Faster: On Time Delivery = 100%

Radar Charts (Benchmarking Results)

Six Implemented Improvements (A3)

Management by Objectives (MBO)

Growth: Organizational Learning

Radar Charts (Score 1 – 5)

Sort, Straighten, Scrub, Standardize

Management by Objectives (MBO)

TECHNOLOGY DESIGN & FEEDBACK

“All we are doing is looking at the

• Variable Data (Cpk) 2

• Mura – Unevenness Mura

• Muri – Overburdened Muda

• Value Engineering Takt Time

Process (Operation Sequence)

1 Initial Awareness – Baseline (Benchmarking & Training)

2 Below Average – Establish Stability (Reduce Variation)

3 On Par – Link Stability (Create Flow)

4 Above Average – Standardized Work (Eliminate Waste)

5 World Class – Continual Improvement (Add Value)

Better Faster Cheaper

5S TPM - OEE 20 Keys

TQM JIT TPM

Process : Internal : TWI JI : Reliable Equipment : Knowledge Theory : Eliminate Waste

Certified Lean Six Sigma Black Belt

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