LEAN BASICS AND DEPLOYMENT

Transcription

1 LEAN BASICS AND DEPLOYMENT Tom Burkett, CEO Bentley Stires, COO Telephone: (251) Telephone: (979)

2 Introduction Who we are. Why we think Lean and Lean Six Sigma (LSS) are great methodologies as cornerstones to a full continuous improvement deployment. How do you think a better understanding of Lean principles would improve your organization?

3 Guiding Thoughts Lean is about the process. Lean is about team. Lean is about involvement. Lean is about commitment. Lean is not exclusive to manufacturing.

4 Today s Agenda Introduction to Lean. Hearing and understanding the voice of the customer. Process Mapping. Understanding variation in your process. A very basic introduction to Six Sigma. Identifying the forms of waste

5 Today s Agenda (cont.) Value stream mapping Overview of Basic Lean Tools Project Selection and Prioritization Implementing a lean program in your organization

6 Today s Agenda (cont.) Additional Topics (time permitting) Variation and Six Sigma DMAIC Roadmap

7 Lean Knowledge Test Let s check our knowledge of Lean. 1. I have very limited understanding of lean. 2. I know and use a few of the lean tools. 3. I understand some of the principles and try to apply across my area of responsibility. 4. I encourage lean thinking by my employees. 5. Sit down. I should be teaching this stuff!

8 Origins of Lean Just in Time Dr. Deming

9 Henry Ford History of Lean

10 History of Lean Based on Taylor s theory of scientific management, Henry Ford s vision was to build a car for the multitude. Highly efficient for the time. In 1926 a Model T came off the assembly line every 93 minutes. Highly inflexible.

11 History of Lean Henry was not too concerned with worker satisfaction. Thought money was their only source of satisfaction on the job. Concerned primarily with how to speed up the production line.

12 Kiichiro Toyoda History of Lean

13 History of Lean Mr. Toyoda, as a young engineer, developed an attachment for a loom that stopped the machine whenever yarn broke.

14 History of Lean In 1934 Toyoda bought a Chevrolet and had his engineers take apart and put back together. In 1935 built first gasoline vehicle using parts from Chevy, Chrysler, and some unique ones built in Japan. Toyota Automobiles were born. Spelling changed for marketing purposes.

15 Toyota Production System Absolute elimination of waste. Worker satisfaction in areas other than pay. Continual striving for process improvement in every area of the business. (Kaizen).

16 Lean Six Sigma (LSS) Six Sigma and Lean were married probably some time in the late 1980 s or early 1990 s by Michael George and colleagues. It has been around since with no signs of going away!

17 Lean Six Sigma Six Sigma = Quality Lean = Speed and Flexibility

18 Goals of Lean Highest quality In the shortest time At the lowest cost With maximum flexibility

19 Goals of Six Sigma Reduce variation in the process Improve quality to a level where there are fewer than 3.4 defects per million opportunities.

20 Basic Theory of Six Sigma If we concentrate on reducing variation in a process then we have a more uniform and predictable output.

21 Basic Theory of Lean If we place more effort on reducing waste in our process, then flow time will improve.

22 Benefits of Lean Improved quality and fewer defects. Reduced inventory. Requires less space. Enhances flexibility. Makes future improvements simpler. Safer work environment. Improved employee morale.

23 Principles of Lean

24 Principles of Lean Identify customers and specify value Identify and map the value stream Create flow by eliminating waste Develop a pull system Pursue perfection

25 Process Mapping A process map is a visual representation of the process capturing all the relevant steps.

26 Types of Process Maps Process Flow Chart Swim Lane SIPOC Value Stream Future State

27 Benefits of a Process Map Process maps help facilitate a greater understanding of a process by identifying: Bottlenecks. Redundancies. Waste. Key process inputs and outputs. Key decision points and criteria. Roles and responsibilities

28 Process Mapping

29 Process Map Example

30 Process Map Example

31 Process Map Example

32 Steps in Process Mapping Assemble team of people familiar with the process. Choose the appropriate process map type. List all process steps on the map. Ensure enough details to capture all relevant activity.

33 Process Mapping Determine the boundaries of the process. Clearly define starting and stopping points. Agree on the level of detail necessary to clearly understand the process and identify problem areas. Include any sub or parallel activities.

34 Process Mapping Determine the steps in the process. Brainstorm and list all major activities, inputs and outputs, from the beginning to the end. Use post it notes so you can move around when necessary.

35 Process Mapping Sequence the steps. Arrange in the order of the process. Once again make sure you capture the sub and parallel activities.

36 Process Mapping Test the map for completeness. Are all steps captured? Make sure every path takes you either back or forward to another step.

37 Remember You cannot improve a process until everyone agrees on what the process is.

38 Mapping Tools (Manual) Knowledgeable team. Kraft paper. Post it notes. Markers. Flip charts. Most importantly!

39 Most Important Process Mapping Tool

40 Identifying Value and Customers Who are your customers? What are they willing to pay for? Which activities are value added and which ones do not add value to the process.

41 VOC Voice of Customer

42 Typical? Voice of the Customer

43 Who are Your Customers Internal? External?

44 Voice of Customer Only customers define quality.

45 Voice of Customer Complaints Returns Cancellations Referrals What other customer voices do you hear?

46 Voice of Customer Ask the right questions. Ask in the right way. Understand the answers.

47 Translating Voice of Customer Translate into Critical Customer Requirements (CCR s). Convert the (CCR s) into Key Process Output Variables (KPOV s). How do we do this?

48 Critical Customer Requirement VOC Input. We do not like your product. What might be the key customer issue? What might be the critical customer requirement?

49 Key Process Output Variables S M A R T

50 Key Process Output Variables Specific M A R T

51 Key Process Output Variables S Measurable A R T

52 Key Process Output Variables S M Attainable R T

53 Key Process Output Variables S M A Relevant T

54 Key Process Output Variables S M A R Time Sensitive

55 Key Process Output Variables Specific Measurable Attainable Relevant Time Sensitive

56 Value Stream Mapping

57 Value Stream Mapping What is the value stream?

58 Value Stream Mapping Why map the value stream?

59 Identifying and mapping the value stream. If you don t know where you are going, any road will take you there. Analyzing the value stream is the first step in determining where you are going. Either you manage the process or it manages you. You do have a choice!

60 Value Stream Mapping Identify which steps add value for the customer. Identify those steps that are necessary for the business to function. Identify non value added steps.

61 Customer Value Added What you do that the customer is willing to pay for. (CVA).

62 Business Value Added What must be done as a necessary part of functioning in your environment. (BVA).

63 Non Value Added What steps add neither value to the customer or the organization. (NVA).

64 Goals for (CVA), (BVA), (NVA) Eliminate (NVA). Eliminate or greatly reduce (BVA). Reduce and optimize (CVA).

65 Waste

66 Eliminating Waste Most steps in the value stream do not add value to the process. Eliminating waste ensures a smoother flow to the customer.

67 Tim Wood Forms of Waste

68 T I M W O O D Forms of Waste

69 Transportation I M W O O D Forms of Waste

70 T Inventory M W O O D Forms of Waste

71 T I Motion W O O D Forms of Waste

72 T I M Waiting O O D Forms of Waste

73 T I M W Over processing O D Forms of Waste

74 T I M W O Overproducing D Forms of Waste

75 T I M W O O Defects Forms of Waste

76 Forms of Waste Tim was recently given a middle initial. P

77 People Forms of Waste

78 Transportation Inventory Motion Waiting Over processing Over producing Defects + People Forms of Waste

79 Rework! Hidden Factory

80 Hidden Factory

81 Pull Systems

82 Pull Systems A not so effective pull system.

83 Pull Systems A more effective pull system.

84 Developing a Pull System Truly understand what the customer wants. Develop a system to provide their product or service to them at the rate they want no faster or slower.

85 Pull System Benefits Simplifies communication. Reduces inventory. Shortens and controls lead time. Reduces work in process. Reduces cycle time Increases customer satisfaction.

86 Pull System Elements Movement based on next operation s need. Balanced lines by using kanban s.

87 Kanban Pull Systems

88 Kanban signals. Pull Systems

89 Pursue Perfection Creating flow allows waste to become more visible therefore easier to eliminate. Pull systems reduce process cycle time allowing greater flexibility.

90 Project Selection Analyze the Process and/or Value Stream Map to find opportunities for improvement. Number and list all the opportunities.

91 Project Selection Set up a graph with benefit as the Y axis and effort the X axis. As objectively as possible, and by team discussion, write each number in the area of the graph that closely approximates the benefit and effort intersection.

92 Additional Lean Tools 5S Mistake Proofing Kaizen DMAIC

93 What is 5S? 5S

94 5S A process to create and maintain a well organized and efficient workplace. A systematic way to improve. Enables anyone to recognize out of control activities. 5S allows one to see the process.

95 5S Sort. Set in order. Shine. Standardize. Sustain.

96 5S Sort (Seiri). Separate necessary items from those not needed at the workplace.

97 5S Set in order (Seiton). Arrange necessary items so they can be found and used quickly and efficiently.

98 5S Shine (Seiso). Clean and establish a routine for maintaining the cleanliness and orderliness of the area.

99 5S Standardize (Seiketsu). Ensure procedures are in place so activities will be done the same way no matter who is performing the duties. Create a safe work environment.

100 5S Sustain (Shitsuki). Use visual tools to ensure organization and improvements are maintained.

101 5S Benefits Improve productivity. Eliminate non value added (NVA) activities. Instill a continuous improvement attitude and mindset. Lay a foundation for lean thinking.

102 Mistake Proofing. Poka Yoke

103 Mistake proofing. Poka Yoke

104 Literally. Kaizen

105 Kaizen Kaizen is a Japanese word for continuous improvement. It is a philosophy, not just a process. It most often is a series of ongoing improvements by teams focusing on eliminating all forms of waste from the operation.

106 Kaizen Will typically follow the DMAIC process but in a much more accelerated manner. Very action oriented. After preparation, the Kaizen event itself will usually be one week or less. Requires limited capital investment.

107 DMAIC DMAIC Process in Lean

108 Lean Deployment Find the motivation for improvement. Recognize the burning platform. Identify and assign resources. Teach the methodology. Prioritize activities. Establish ownership. Take baseline measurements. Manage the program.

109 Burning Platform Clearly understand, admit, and communicate why you as an organization need to undertake a continuous improvement program.

110 Identify and Assign Resources Appoint a Deployment Champion. Identify potential Lean Leaders. If necessary, select an outside partner to assist in deployment planning and training activities.

111 Total Involvement Show absolute commitment from the top. Assign Deployment Champion. Determine support needs (internal and external). Involve staff at every level. Look for opportunities for early successes.

112 Training Lean Fundamentals. Process and Value Stream Mapping. Lean Six Sigma Green Belt. Lean Six Sigma Black Belt.

113 Successful Deployment Commitment is critical! Managers must walk the walk as well as talk the talk! Celebrate success. And you will have success!

114 Lean Culture A lean culture creates a climate where every asset and every action adds value for the end customer.

115 Maturity Levels Lean Maturity Levels

116 Tom and Bentley s Lean Soapbox Lean is nothing more than organized common sense. Benefits far exceed any expenditures. Lack of work or needing to employ more people is no excuse for operating inefficiently. (Can always 5S the area). Lean deployment does not have to be an all or nothing proposition.

117 Additional Topics Variation and Six Sigma DMAIC Process in Lean Projects Process Cycle Time and Little s Law

118 Contact Us Tom Burkett, Chief Executive Officer Bentley Stires, Chief Operating Officer Telephone: (251) Telephone: (979)

119 Additional Topics Variation and Six Sigma DMAIC Process in Lean Projects Process Cycle Time and Little s Law

120 Variation and Six Sigma Even though we use averages (mean) all the time when analyzing data, does it really tell us much? Let s consider two buckets of water one ice water; and one near boiling.

121 Variation Now think about putting one foot in each bucket. On the average we should feel pretty good. See why studying variation might be helpful.

122 Variation Managing an organization by means of the monthly financial report is like trying to drive a car by watching the yellow line in the rear view mirror. Myron Tribus, MIT

123 Variation Let s talk some about variation as it relates to lean thinking and quality. We re going to step very gently into the swimming pool of statistics. Not to worry. We will not venture into the deep end. For that, my apologies to the math geeks.

124 Variation Variation is how the data groups around the mean. Remember the old bell curve.

125 Variation

126 Types of Variation Common cause. Special cause.

127 Common Cause Variation Common cause variation is fluctuation caused by unknown factors resulting in a steady but random distribution of output around the average of the data. It is a measure of the process potential.

128 Common Cause Variation All data are normal! Or at least 95 percent. (trust me on this one). Fluctuations (variation from the mean) will occur randomly but predictably.

129 Special Cause Variation Special cause variation is a shift in output caused by a specific factor or process input parameters. It can be accounted for directly and potentially removed and is a measure of process control. Examples include material defects, operator training, machine break downs, etc. This is the variation we work to reduce.

130 Six Sigma Six Sigma (6 )

131 Six Sigma (6 ) Six Sigma concentrates on minimizing variation in the process (quality). Lean concentrates on moving the mean (speed).

132 Lean and Six Sigma

133 DMAIC DMAIC Process in Lean

134 Define Phase Purpose To reach a clear understanding between all affected parties sponsor, team leader, team members, and other stakeholders on the scope, goals, financial, and performance targets for the project. To present a compelling reason why the project should be undertaken.

135 Define Steps / Activities Identify the voice of the customer. Define gaps between actual performance and performance standards. Develop a clear understanding of the problem. Create a plan for addressing the project or lean event. Select a team.

136 Define Tools Project charter High level process map / SIPOC chart VOC analysis Written project plan including resource requirements, scope (very important), communication plan (RACI chart), expected results

137 Measure Phase Purpose To completely and thoroughly understand the current state of the process and collect reliable data on process speed, quality, and costs to use in uncovering the underlying problems in the process.

138 Measure Steps / Activities Create and validate value stream map Identify outputs, inputs, process variables Create a data collection plan including operational definitions Collect baseline data Articulate the process by updating the value stream map with accurate data Calculate process lead time (Little s Law)

139 Measure Tools Value Stream Map Operational Definitions Data Collection Plan Statistical Sampling Histograms Process Capability Analysis

140 Analyze Phase Purpose To accurately pinpoint the root causes affecting the key input and output variables throughout the process; and to study those cause and effect relationships.

141 Analyze Steps / Activities Identify customer value added (CVA), business value added (BVA), and non value added (NVA) steps in the process. Analyze the process flow to determine bottlenecks, constraints, and other Issues (defects, rework, maintenance issues, etc.) that inhibit flow.

142 Analyze Steps / Activities (cont.) Analyze the data collected in measure. Generate theories to explain potential causes. Narrow the search. Collect additional data to verify root causes. Prioritize root causes.

143 Analyze Tools Brainstorming Cause and Effect Analysis Fishbone Diagrams Takt Time Analysis Statistical Tools

144 Fishbone diagram. Analyze Tools

145 Takt Time Analyze Tools

146 Improve Phase Purpose To use the results of our work in the analyze phase to develop alternative solutions to the problem. Using lean tools we test and confirm the cause and effect relationships to create an optimal solution.

147 Improve Steps / Activities Develop potential solutions. Evaluate and optimize the best solutions. Create a future state map. Develop and run a pilot. Confirm project goals were met. Develop an implementation plan.

148 Improve Tools Solution Selection Matrix Value Stream Map (Future State) Takt Boards Statistical Charts and Graphs Kanban Poka Yoke

149 Control Phase Purpose To officially finalize project completion and hand off the newly improved process to process owner, with definitive and understandable procedures for maintaining the gains.

150 Control Steps / Activities Develop documentation to sustain full scale implementation. Launch the implementation with realistic transition plan. Develop mistake proofing (Poka Yoke) techniques. Develop triggers for future corrective action.

151 Control Steps / Activities (cont.) Create training plans. Develop standard operating procedures (SOP s). Develop control plans for process owner.

152 Control Tools Mistake Proofing (Poka Yoke) Standard Operating Procedures (SOP s) Process Control Plans Visual Process Control Tools (Charts and Graphs) Written Training Plans Team Feedback Session

153 Other examples? Control Tools

154 Process Cycle Time Little s Law Process cycle time (PCT) is a function of the number of units in work in process (WIP) and the rate at which those units exit the process (ER). PCT = WIP / ER

155 Process Cycle Time Ride at Disney World. WIP? Exit rate? PCT?

156 Contact Us Tom Burkett, Chief Executive Officer Bentley Stires, Chief Operating Officer Telephone: (251) Telephone: (979)