Getting Started with Lean Process Management

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1 Getting Started with Lean Process Management Hi-Tec Exchange Conference San Francisco July 25, 2011 Missions To team with Organizational Leaders, Managers, & Employees to focus on customers & improve competitiveness, profitability, & the way business is done. The go-to organization for manufacturing & advanced technical education, best practices & resources supporting the high performance skilled workforce for Florida's manufacturing sectors. 2 1

2 Objectives Today Provide hands-on opportunity to learn & implement Lean Process Management principles & techniques Increase ability to identify Lean opportunities Emphasize importance of involvement Understand next steps Learn and have fun 3 Introductions - Your name - Your job - Lean knowledge or experience - Expectations? 4 2

3 Pre-Quiz 5 Focus of Lean Reduction of Process Cycle Time & Increasing FLOW by systematically eliminating waste in processes 6 3

4 Reduction of Cycle Time One of the most noteworthy accomplishments in keeping the price of Ford products low is the gradual shortening of the production cycle. The longer an article is in the process of manufacture and the more it is moved about, the greater is its ultimate cost. - Henry Ford, Problem-Solving Mindset You have to address employees fundamental way of thinking. - Fujio Cho Former president of Toyota 8 4

5 Three Principles of Lean Frequently forgotten resulting in failure of lean initiatives Lean is about people, not techniques Lean is a mind-set, not a toolset Lean is a journey, not a destination 9 Process A designed sequence of operations using space, material, information or other resources, to produce an outcome All work is the result of some process

6 Typical Benefits of Lean % Lead Time Reduction Productivity Increase WIP Reduction Quality Space Utilization 11 What is Waste? Waste is anything more than the minimum of equipment and tools, materials and parts, space, and time needed to add value to a product Waste is just a symptom 12 6

7 Adding Value Waste is Non-Value-Added Not something our customer is willing to pay for Occasionally, we recognize waste we can t eliminate We call that Business Necessary: Required for running the business Gov t required: FDA, FAA, USCG, etc. 13 Defects & rework Excess work in process inventory Over processing Eight Wastes Excess finished inventory Excess motion by people Waiting time Excess movement of materials & tools POS-IMPACT LLC Uninvolved minds 14 7

8 How Much Waste is in our Processes? 5% Value added Non-value added A typical process includes up to 95% non value added waste 15 Waste is Just a Symptom Revealing waste tells us we have process problems Revealing waste starts us on the road to identifying root cause problems to be resolved We must find the root causes to solve process problems to eliminate waste 16 8

9 Waste Impact on Process Capacity Productive Use of Resources: Value-Added Productive Use of Resources: Value- Added Non-Productive Use of Resources: Non- Value-Added Capacity is consumed by waste Released Capacity Eliminating waste releases capacity 17 Benefits Spun Off from Increased Flow Operating Costs Financial Returns Capacity Cash Flow 18 9

10 Climb to Continuous Process Layout Standardization Pull Collaboration Dynamic Scheduling Cellular Flow Point of Use Quality at the Source Workplace Organization Workforce Engagement Continuous Six Sigma Tools Total Productive Maintenance Quick Changeover One-Piece Flow Visual Management 19 Round 1: Traditional Process Flow 20 10

11 Climb to Continuous Process Layout Standardization Pull Collaboration Dynamic Scheduling Cellular Flow Point of Use Quality at the Source Workplace Organization Workforce Engagement Continuous Six Sigma Tools Total Productive Maintenance Quick Changeover One-Piece Flow Visual Management 21 What Is Standardization? Elements of a Standardized Process; a clear understanding of: Sequence of Activities; value-added steps User Demand; the demand for out put from the process Standard Material; the minimum input material 22 11

12 Climb to Continuous Process Layout Standardization Pull Collaboration Dynamic Scheduling Cellular Flow Point of Use Quality at the Source Workplace Organization Workforce Engagement Continuous Six Sigma Tools Total Productive Maintenance Quick Changeover One-Piece Flow Visual Management 23 Workplace Organization (5S) The 3S: Sort what is needed Straighten what must be kept Shine what remains To maintain the 3S: Standardize stick to the rules Spread sustain the routine 24 12

13 Climb to Continuous Process Layout Standardization Pull Collaboration Dynamic Scheduling Cellular Flow Point of Use Quality at the Source Workplace Organization Workforce Engagement Continuous Six Sigma Tools Total Productive Maintenance Quick Changeover One-Piece Flow Visual Management 25 Visual Management Use of visual tools & signals to: Simplify & speed up the communication of information to operators & managers Help with speedier & more accurate decision-making 26 13

14 Visual Management Translates critical requirements into visual stimuli Creates environment that enhances employee commitment Presents key data & information through use of sensory messages Provides mechanism for continuous improvement through employee engagement & improved information sharing 27 Climb to Continuous Process Layout Standardization Pull Collaboration Dynamic Scheduling Cellular Flow Point of Use Quality at the Source Workplace Organization Workforce Engagement Continuous Six Sigma Tools Total Productive Maintenance Quick Changeover One-Piece Flow Visual Management 28 14

15 Process Layout Layout is one of several critical factors to improving FLOW throughout the process FLOW of materials FLOW of information 29 Round 2: Fundamentals 30 15

16 Climb to Continuous Process Layout Standardization Pull Collaboration Dynamic Scheduling Cellular Flow Point of Use Quality at the Source Workplace Organization Workforce Engagement Continuous Six Sigma Tools Total Productive Maintenance Quick Changeover One-Piece Flow Visual Management 31 Teamwork & Communication within & between teams essential for collaboration AND Collaboration & team member involvement essential for making improvements stick 32 16

17 Communication Exercise 33 Team Evolution to High Performing Communication One-way Two-way Engaged two-way 34 17

18 Stages of Team Evolution Storm Norm Perform POS-IMPACT LLC Form 35 Working Environment to Support Collaboration Workforce & Management: Promote involvement; everyone gives ideas; participates in decisions Seek new skills Experiment & learn from mistakes Share responsibility for change Drive continuous improvement 36 18

19 Climb to Continuous Process Layout Standardization Pull Collaboration Dynamic Scheduling Cellular Flow Point of Use Quality at the Source Workplace Organization Workforce Engagement Continuous Six Sigma Tools Total Productive Maintenance Quick Changeover One-Piece Flow Visual Management 37 Point of Use (POU) Making available & storing Materials, tools, & instructions Where & when they are needed Replenishing materials through visual management 38 19

20 Climb to Continuous Process Layout Standardization Pull Collaboration Dynamic Scheduling Cellular Flow Point of Use Quality at the Source Workplace Organization Workforce Engagement Continuous Six Sigma Tools Total Productive Maintenance Quick Changeover One-Piece Flow Visual Management 39 Build Quality into our Process By Designing for manufacture Inspecting at the Source: Ensuring specs met at every process step; learning more about how customer uses end product; standardizing our process; communicating; giving feedback Implementing Mistake-Proofing 40 20

21 Inspection at the Source The product inspected by each operator before passing to next operator Each operator inspects before adding value To conduct inspection operators must be prepared: The right documentation The right training and support The right tools 41 Mistake Proofing Low-cost, reliable device or approach to prevent & detect defects Prevent production of defects Make it harder to do wrong than to do right Japanese concept : poka yoke = to avoid inadvertent errors 42 21

22 Climb to Continuous Process Layout Standardization Pull Collaboration Dynamic Scheduling Cellular Flow Point of Use Quality at the Source Workplace Organization Workforce Engagement Continuous Six Sigma Tools Total Productive Maintenance Quick Changeover One-Piece Flow Visual Management 43 Lot Size Exercise 44 22

23 Large Production Lots Traditional processes depend on large batch processing because of the myths Change-over times can t be improved WIP is good 45 Batch Production A B C 10 Minutes 10 Minutes 10 Minutes First Piece = 21 Minutes Entire Batch of 10 pieces = 30 Minutes 46 23

24 One-Piece Flow The concept of moving one unit at a time between operations Make one, move one 47 One Piece Flow A B C 1 Minute 1 Minute 1 Minute First Piece = 3 Minutes Entire Batch of 10 pieces = 12 Minutes 48 24

25 Climb to Continuous Process Layout Standardization Pull Collaboration Dynamic Scheduling Cellular Flow Point of Use Quality at the Source Workplace Organization Workforce Engagement Continuous Six Sigma Tools Total Productive Maintenance Quick Changeover One-Piece Flow Visual Management 50 Cellular Flow Cellular Flow makes it possible for people & machines to work together efficiently, often organizing a process in the shape of a U or a C. Operation Operation 5 Operation Operation 6 Operation Operation 1 Operation Operation 2 Operation Operation 4 Operation Operation

26 Cellular Flow We build cells to improve FLOW of Materials & Information FLOW is a direct link (information) between customer & supplier FLOW is the movement of materials triggered by customer Process inputs & outputs are balanced 52 Building a Cell We must know: Product groupings Demand on our process: Takt time The work sequence How to balance the process 53 26

27 Understand Demand on Our Process: Takt Time Takt Time = Demand rate Takt Time = Work Time Available Number of Units Sold Takt Time = 600 Seconds 60 Units = 10 Sec/Unit Cycle Time Takt Time = Minimum # of People 54 Build the Cell Use Lean concepts Small Production Lot Size (1) Flexible layout POU Visual Management Operation 5 Operation 5 Operation 6 Operation 6 Operation 4 Operation 4 Operation 1 Operation 1 Operation 3 Operation 3 Operation 2 Operation 2 Build a Virtual Cell if necessary 55 27

28 Climb to Continuous Process Layout Standardization Pull Collaboration Dynamic Scheduling Cellular Flow Point of Use Quality at the Source Workplace Organization Workforce Engagement Continuous Six Sigma Tools Total Productive Maintenance Quick Changeover One-Piece Flow Visual Management 56 Push vs. Pull Systems Push System Production based on forecasts & schedules No connection between customer demand & what process produces Pull System Process production linked to customer demand Customer needs converted into production orders thru visual signals 57 28

29 Pull System Flow Diagram Production Line Information Flow Kanbans Supplier Raw Matl Process A Process B Process C FG Customer Material Flow 58 Round 3: The Transformation 59 29

30 Post-Quiz 60 How To Apply the Lean Concepts Value Stream Mapping Prioritized Opportunities Rapid Event Lean Process Management Tools Six Sigma Tools 61 30

31 Value Stream Mapping Value stream mapping is a Lean Process Management tool & technique used to analyze the process flow currently required to bring a product or service to a consumer 62 Rapid Event Also known as Kaizen Event To Make Better Structured process to address area of opportunity Team of people who use Lean ideas to eliminate process waste Focus on low-cost / no-cost solutions Small Steps Big Changes 63 31

32 Key Success Factors Unyielding leadership commitment & support Observe outside successes & failures Ability to question everything Experimentation Involvement Share information 64 Thanks for your Participation & Involvement Questions?... Comments? 65 32

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