Understanding & Applying the Five Principles of Lean

Transcription

1 Understanding & Applying the Five Principles of Lean Christy Nikel Founder, Broad Arrow Consulting #psf11 BROAD ARROW CONSULTING redefining efficiency

2 Agenda 1. Welcome 2. Technical Tools: The Five Principles of Lean 3. Culture Change 4. Applications - 5S - Value stream mapping 5. Close

3 Connections So I know you better

4 Round Robin

5 Christy Nikel I ve seen it work

6 What is Lean? Technical Tools Culture

7 LEAN TECHNICAL TOOLS

8 The Five Principles of Lean

9 The Five Principles of Lean

10 Commonplace: The customer will want it once we explain it The customers weren t sophisticated enough to get the product

11 1. Define Value from the Customer s Perspective What products do your customers want? What specific characteristics do they want that product to have? What are they willing to pay for it?

12 Take a Moment Who are your customers? What do they want?

13 How do you know you are delivering what they want?

14 What you measure is what you treasure.

15 Let s look at value in more detail

16 Wiremold Company Wire guards *Adapted from Lean Thinking by James Womack.

17 Wiremold Company Wire guards *Adapted from Lean Thinking by James Womack.

18 The Five Principles of Lean

19 2. Identify the Value Stream A value stream is all of the steps required to bring a product from order to delivery. Information Suppli er I n Proce ss Proce ss Proce ss Out Custome r Material

20 Metal Fabrication Cut Weld Polish Sandblast Powder Ship Coat

21 Food Processing Scale Mix Pour Bake Cooling 1 De-pan Cooling 2 Slice Pack Ship

22 Pulp and Paper Wash Tumble Chip Digest Wash Screen Wash Delignification Brownstock Washing Bleach Spray Roll Air Dry Cut Ship

23 Identify the Value Stream Cont d Walking the value stream will almost always show that three types of actions are occurring: Value-adding work Incidental work Pure waste

24 Value Adding Work Physically changes the product Not rework! Customer is willing to pay for it

25 Incidental Work Activities that are currently necessary to create a product for a customer but which have no value to the customer

26 Pure Waste Activities that create no value and can be completely eliminated Seven traditional types

27 Transportation Excessive movement of people, information or materials

28 Spaghetti Diagrams

29 Waiting Periods of inactivity for people, information, machinery or materials

30 Motion Movement of people that does not add value to the product

31 Inventory Excessive storage and delay of information or products

32 Over-processing Work done on a product that is not required by the customer

33 Defects Product or paperwork errors Defects are also called

34 Rework Errors Mistakes Scrap Corrections

35 Overproduction Producing more or sooner than the customer needs

36 Seven Types of Waste Transportation Waiting Motion Inventory Over-processing Defects Overproduction

37 The Waste Challenge

38 Questions?

39 The Five Principles of Lean

40 3. Create Continuous Flow True continuous flow occurs when the product is produced and moved from one processing step to the next, one at a time, without stopping, errors, or backflow.

41 The World of Batch and Queue

42 Water Works

43 Water Works Total lead time: 4.6 weeks Total processing time: 10.2 hours

44 Continuous Flow If we can line up the essential steps into continuous flow with no interruption, batches or queues, there are dramatic results: Time Effort Space Inventory Cut in half very quickly!

45 Water Works

46 Fly it!

47 The Five Principles of Lean

48 Pull from the Customer No one produces a good or service until the customer downstream asks for it. Let your customers pull the product from you as needed, rather than pushing products onto the customer.

49 Water Works A B C 20 A A 20 A B C A B C 20 A Raw Material WIP Finished Goods

50 Example of a Pull System Raw Materials O/NO: DEL: O/NO: DEL: O/NO: DEL: O/NO: DEL: BACARDI 150CL UK FRONT LABELS 1 BOX BACARDI 150CL UK FRONT LABELS 1 BOX BACARDI 150CL UK FRONT LABELS 1 BOX BACARDI 150CL UK UK FRONT LABELS 1 1 BOX As the Containers are used, remove the Kanban card & raise an order on the supplier Add Order & delivery details and return card to board The Deliveries arrive, turn cards to red as each container arrives, to show bay full

51 The Five Principles of Lean

52 Strive for Perfection There is no end to the process of reducing Effort Time Space Cost Mistakes Offering a product that is ever closer to what the customer actually wants Not benchmarking with competitors!

53 The Five Principles of Lean

54 What is Lean? Technical Tools Culture

55 LEAN CULTURE

56 Culture of Excellence Requires knowledgeable and experienced people to continually find better ways to create customer value

57 Change your Culture Today Take a walk! Identify and post metrics Have regular staff meetings involving everyone; discuss metrics Ask for volunteers to create an employee suggestion process Follow up!!! As problems arise, ask your employees for help

58 LEAN APPLICATIONS

59 5S or Workplace Organization A process to achieve and sustain a clear, clean, safe and organized workplace A way to ensure that the workplace contains only what is needed, when it is needed and where it is needed. What does this accomplish?

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62 5S or Workplace Organization Sort: Necessary vs unnecessary Set in order: A place for everything Shine: Clean and ready to use Standardize: Maintain the gains Sustain: Self discipline

63 High Performance Glass 5S implementation in our shop has seen a return of $12,500 over the last 4 months. Ted Roosen General Manager $40k annual savings

64 Value Stream Mapping VSM: A picture of the value stream from the product s point of view Grasp current condition Identify improvement opportunities

65 Value Stream Map: Current State

66 Picquic Tools $788k 2 hours 85 days $520k 10 min 34 days $70k annual savings

67 Any Last Thoughts or Questions?

68 Thank You! Christy Nikel #psf11 BROAD ARROW CONSULTING redefining efficiency