Learning to See Waste

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1 Learning to See Waste

2 Everything you do in your Company is accomplished through a process. Even the smallest activities are accomplished through processes. Order Materials Issue paychecks Setup Equipment

3 Definition : Process: A series of actions or steps toward achieving a particular end. Characteristics : 1. Scope Starting point and ending point. 2. Purpose: Reason why it is being performed. 3. Steps: Actions performed by operators or equipment. 4. Sequence: Order in which the actions are performed. 5. Operators: Operators or equipment that perform the actions. 6. Outcome: A specific result, product or state. 7. Customer: Next process, requestor or end user.

4 Taichi Ohno s Seven Forms of Process Waste Over Processing Correction Inventory Waiting TYPES OF WASTE Over- Production Motion Material Movement + Underutilization of Employees!!!

5 Definition: Producing More Than Needed Producing Faster Than Needed Producing Sooner than Needed Some Characteristics Inventory Stockpiles Extra Racks, Containers Building Ahead Long Lead Times Extra / Oversized Equipment Unbalanced Material Flow Excessive Capacity / Investment Safety Concerns Some Causes Large Batches Poor Communication Long Changeover Time Low Uptimes Lack of Consistent Schedules Forecasts vs. Customer Demand

6 Definition: Repair of a Product or Service to Fulfill Customer Requirements Some Characteristics Repair and Rework Areas Increased Inspection Missed Shipments / Deliveries Poor Customer / Supplier Relations Reactive Organization Lost Capacity Scrap Premium Freight Reactive Organization Some Causes Incapable Processes Incapable Suppliers Insufficient Training Inadequate Tools / Equipment Poor Layouts / Handling Issues Processes Not Under Control High Inventory Levels

7 Definition: Inconsistent Material Flow. Unnecessary Movement of Parts. Some Characteristics Multiple Storage Locations Complex Material Flows Wasted Floor Space Large Tanks & Warehouses Inventory Errors Unbalanced Drive Schedule Heavy Duty Barriers & Protection Devices Some Causes Large Lot Processing Inconsistent Schedules Long Changeover Times Lack of Work Place Organization Improper Facility Layout Excess Inventory

8 Definition: Effort Which Adds No Perceived Value to a Product/Customer. Engineering Changes Excessive approvals Redundant processes Reports with too much information Reports that you don t use Some Characteristics Bottlenecks Lack Boundary Samples or Clear Customer Specifications Endless Refinement Redundant Approvals Extra Copies / Excessive Information Some Causes Engineering Change w/o Process Change Decision Making at Inappropriate Levels Ineffective Policies & Procedures Lack of Customer Input Concerning Requirements

9 Definition: Any Supply in Excess of Customer Requirements. Any Supply which is not having value added to it. Some Characteristics FISH instead of FIFO SMOI Long Lead Time for Engineering Changes Off Line Storage Area Extra Material Handling Resources (People, Equipment, Racks, Storage, Tanks, Space / Systems) Slow Response to Customer Demands Low Inventory Turns Some Causes Incapable Processes Uncontrolled Bottlenecks Incapable Suppliers Long Changeover Times Local Optimization Inaccurate Forecasts Sub-optimized Raw Material Ordering Efficiency Measures

10 Definition: People or parts waiting for a work cycle to be completed. Idle time resulting when two dependent variables are not fully synchronized. Some Characteristics People Waiting for Machines Machines Waiting for People People Waiting for People Waiting for Materials Unbalanced Operations Lack of Concern for Breakdowns Unplanned Equipment Downtime Some Causes Inconsistent Work Methods Long Machine Changeover Times Downtime/Breakdowns Poor Machine / People Effectiveness Lack of Proper Machines

11 Definition: Any movement of people that does not add value to the product or service. 20 ft. 20 ft. 20 ft. Some Characteristics Looking to Find Tools Walking for Materials Excessive Reaching / Bending Walking Around Things Moving Thing Out of the Way Machines / Material too Far Apart Some Causes Poor Housekeeping Equipment, Office & Plant Layout Lack of Work Place Organization Poor Machine / Operator Effectiveness Inconsistent Work Methods Large Batch Sizes Hint: Don t confuse motion with work.

12 Can you spot examples in your work area? Over Processing Correction Inventory Waiting TYPES OF WASTE Over- Production Motion Material Movement + Underutilization of Employees!!!

13 Value Stream Mapping: A descriptive analysis that helps you to see and understand the complete flow of material and information towards the final product. Whenever there is a product for a customer, there is a value stream. The challenge lies in seeing it. Womack and Jones

14 Why is Value Stream Analysis so important for Lean Processing? Supports process thinking. Takes a big picture view improve the whole vs optimize individual steps. Shows the connection of material, people, and information flows. Standard for management to document the whole process.

15 Single value stream factory order to ship Multi-value stream order to cash Enterprise value stream design, sales, order, produce, ship, bill

16 Supplier Customer Rawmaterial shipments Supply-chain data Productdemand data Product delivery I Raw-material inventory Inventory quantity I I Process 1 Process 2 Process n Shipping Inventory Inventory Finished-goods quantity quantity inventory Process 1 Process 2 Process n Inventory data data data quantity I

17

18 Raw-Material Forecasts Raw-material orders Production control Forecasts Supplier Orders Customer Rawmaterial shipments Supply-chain data Production schedule Production schedule Production schedule Demandpattern data Product delivery I Raw-material inventory Inventory quantity Process 1 Process 2 Process n Shipping Inventory Inventory Finished-goods quantity quantity inventory Process 1 data I Process 2 data I Process n data I Inventory quantity NVA VA NVA VA VA VA NVA NVA Totals

19 Completed Future-State Map Supplier Daily orders Prod Control Daily orders Customer Rawmaterial shipments Customer requirement Product delivery max. 5 pieces FIFO max. 5 pieces FIFO Raw-material supermarket Process 1 Process 2 Process 3 Process n Shipping Scrap IP kanban Std Work Supermarket Std Work Std Work Std Work Std Work C/T reduction Changeover Downtime

20 Daily orders Prod Control Daily orders Supplier Customer Rawmaterial shipments Supplier Loop Customer requirement Customer Loop Product delivery Raw-material supermarket Process 1 Process 2 Process 3 Process n Shipping Scrap IP kanban Std Work Supermarket Std Work Std Work Finished-goods Changeover Downtime supermarket Std Work Std Work C/T reduction Process Loop 1 Process Loop 2

21 Top-Level Mapping, Lean Design and Implementation Process Map Current-state mapping Lean future-state design Implementation planning & execution Map the current value stream showing the material and information flows Measure / observe lean-implementation process data Identify Opportunities for Improvement Design the future lean state Map future-state material & information flows Segment the flow into loops for implementation planning Develop implementation plan with schedule, owners and measurable milestones and results Execute plan

22 Brown Papers Spaghetti Diagram (product, people & information movement) Swim Lane Standard Work Layout

23 Describes a process in a more informal way Usually done in groups or teams Shows the big picture Is high touch, low-tech Identifies strengths and opportunities Captures the complexity and disconnects of key operational issues Gets stakeholders involved in process

24 Order Scheduling Process Builders: Reviewers Receive copy of Customer Order Report Orders > Capacity? Yes (10%) Customer Order Prioritization Process 1 Enter order info. into scheduling system No (90%) Print machine schedule Develop labor rqmts for schedule OT Graph Enter labor rqmts into scheduling system No (70%) OT Required? Yes (30%) Print schedule and distribute 2 Call Area Manager to schedule overtime Overtime Scheduling Process Strengths Opportunities hours 2 hours 1 hour.5-4 hours

25 Brown Paper Flow Chart Time = 88 Days From Request to Configured-to- User Suppose the Users Were Satisfied? Frictional Interfaces Too Many Steps Lots of Rework

26 New ( To-Be ) Flow Time = 11 to 17 Days (varies w/user needs) Saved US$1.3M; 784K Was Annual Labor Flow Simplified Standardized Configurations Steps Removed Friction Removed Real Benefits From One BE Event including Robust Follow-Up & Sustainment Decisions Pushed to Lowest Level

27 Work Flow (Spaghetti) Diagram Example WIP Assembly Aids Receiving Sub-assembly 1 Sub-assembly 2 Sub-assembly 3 Stores 1 WIP Stores 2 Sub-assembly 4 Tools Stores 3 Machine Operation WIP In-process Stores In-coming Kits In-process Inspection Rework 1 Objectives: - record product flow - record process steps - record traffic pattern - identify queues, files, tool areas, etc. Rework 2 Drawings & Parts Lists

28 Work Flow (Spaghetti) Diagram Example WIP Assembly Aids Receiving Sub-assembly 1 Sub-assembly 2 Sub-assembly 3 Stores 1 WIP Stores 2 Sub-assembly 4 Tools Stores 3 Machine Operation WIP In-process Stores In-coming Kits In-process Inspection Rework 1 Objectives: - record product flow - record process steps - record traffic pattern - identify queues, files, tool areas, etc. Rework 2 Drawings & Parts Lists

29 Part Number 001 Process Flow Diagram Material Control Review Schedule Release Kit Correct Kit No Sub- Assembly Check Kit Complete? Yes Subassembly Step 1 Subassembly Step 2 No No Final Assembly In-process Inspection Correct? Yes Final Assembly Step 1 Final Assembly Step 2 No No Inspection Final Inspection Correct? Yes Send To Stores

30 Sales Prints 2 copies of Excel Spreadsheet Business Travel Expense Reporting Gathers receipts Enters in Excel spreadsheet Tapes receipts to printer paper Puts Expense Report in outgoing mail. Files 2 nd copy. Accounting Mail goes to Accounting. AP clerk opens and sorts mail. AP clerk verifies numbers, receipts and policy compliance on Expense Report. 25% are returned for correction. AP Clerk puts in mail to Payroll. Photocopies Excel spreadsheet and receipts. Payroll Payroll enters data into payroll system. Payment appears on employee s next check.

31 Collects Receipts Pastes receipts on printer paper Sales Receipts Enters expenses in Excel spreadsheet. Receipts Information Systems Prints 2 copies of spreadsheet Photo Copies Receipts $ $ Accounts Payable Payroll Time Line VA NVA 10 min 20 min 3 min 5 min 3 min

32 Sales Combines spreedsheet & receipts. Expense Report Sends 1 copy to AP & files backup copy. Expense Report Expense Report Information Systems $ Accounts Payable $ AP In - Box Sorts Expense Reports for processing. Expense Report Expense Report Expense Report Verifies math, receipts & policy Payroll Time Line VA NVA 3 min 5 min 300 min 12 min 10 min

33 Sales Revise & Return Pay to Paycheck $ Information Systems No $ Accounts Payable $ Expense Report Accepted? Yes Approve ER for Payment & Send to Payroll Payroll Time Line VA NVA 0 min / 480min 2 min PR In - Box 300 min Enters ER in Payroll System 2 min Totals 5 min 670 / 1150 min

34 A Standard Worksheet is : STANDARD WORK SHEET Date: Manager Or Team Leader Area Or Process Name Person Preparing This Sheet Electronic Phone Switch Final Assembly Quality Check Test Table 3 Safety Precaution Finished Goods Standard Work In Process Takt Time Packing Table 65 Sec. Required Output Main Work Station 7 6 Labels Net Time Flat Boxes Operator Number Page of 8 feet A scaled diagram of a work area that : shows the locations of all relevant equipment and work steps Identifies work steps in sequential order and travel path of worker. Most useful when designing jobs or work cells.

35 Date: Page of Manager Or Team Leader Area Or Process Name Person Preparing This Sheet B. Foot Core Boring H. Davidson A S I S M A P Raw Material 1 B30 B40 B B B50 7 Inspection 8 Finished Goods Quality Check Safety Precaution Standard Work In Process Takt Time Required Output Net Time Operator Number

36 Date: Page of Manager Or Team Leader Area Or Process Name Person Preparing This Sheet B. Foot Core Boring A S I M P R O V E D M A P H. Davidson B30 4 B20 B Raw Material Finished Goods Inspection B40 B50 Quality Check Safety Precaution Standard Work In Process Takt Time Required Output Net Time Operator Number

37 Focus on the physical work steps that are performed, not the outputs. Maps do not loop back because the time marches on. The customer is still waiting for the output. Work time cannot be erased and redone. Gather factual data based on current observations.

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