Understanding Lean & Six Sigma

Transcription

1 Understanding Lean & Six Sigma ISM Northeast Wisconsin, March 12, 2013 Presented By: Todd Wiese, Partner Adaptive Business Solutions, LLC W175 N11163 Stonewood Dr. Ste 214 Germantown, WI

2 Participant Introductions Show of hands: Any formalized exposure to continuous improvement philosophies such as Lean or Six Sigma? Fist to five: Level of understanding of: Lean Six Sigma 2

3 About Your Moderator Todd Wiese GE Healthcare; Lean Six Sigma Master Black Belt Rockwell Business CI Champion 15+ years Supply Chain, Operations, Finance, and Engineering experience Lieutenant, U.S. Navy; Submarines BS Engineering; U.S. Naval Academy MBA; Kellogg School of Management, Northwestern Contact Us Phone: (262) Fax: (312) Mail: Adaptive Business Solutions W175N11163 Stonewood Dr. Suite 214 Germantown, WI

4 Goals & Objectives Provide basic understanding of Lean thinking. Understand purpose of some of the techniques and approaches to creating value. Importance of system-wide thinking. Your goals 4

5 Origins of the term Lean The Machine That Changed the World. Published 1990 by MIT s International Motor Vehicle Program (IMVP) leaders (Womak, Jones, and Roos) 5-yr international study of the auto industry Evaluation of all industry delivery, quality, and cost metrics. Analysis of mass vs. craft vs. hybrid (Lean) production systems 5

6 Origins of the term Lean Lean production is lean because it uses less of everything compared with mass production half the human effort in the factory, half the manufacturing space, half the investment in tools, half the engineering hours to develop a new product in half the time. The most Japanese of Japanese companies The Machine that Changed the World Womack, Jones, Roos, 1990, pg. 13 6

7 Lean Preconceptions / Overview Lean is not Simply a cost cutting effort; a way to reduce headcount. A function or program; it s the way we do business. An immediate solution; requires patience. Just for operations; must avoid sub-optimizing the value stream. A ground up effort; requires focus and support at all levels. Simply a tool kit to be used before fixing the basics. We ll spend the next hour learning about Lean thinking. 7

8 Preconceptions / Overview Summary Many of the components of Lean are NOT new: Problem Solving Six Sigma, 8D Reducing Waste e-tools, software Employee Involvement.Quality circles Mistake Proofing Three prong outlets Visual Management..Color coding Continuous Improvement.Reengineering What is new Lean-thinking organizations, like Toyota, systematized all of these concepts and more, and: Applied them in a disciplined manner to all aspects of their business AND Created a culture that enables these concepts to thrive. 8

9 Exercise: Defining Lean and Six Sigma Exercise objective: Understand participants level of knowledge and understanding of both Lean and Six Sigma. On one side of a note card, explain how you would describe Lean and Six Sigma to someone. 9

10 Adaptive Theory of a Lean Thinking Organization A Lean organization is one that strives to constantly improve the value proposition to their customer(s) by: Supporting their employees in value creation by providing systems, resources, and development AND Building relationships with both customers and suppliers 10

11 Elements of a Lean Organization A system, not simply a set of tools Process Development / Improvement Values / Beliefs Leadership Most want to focus here! Product Development / Improvement People Development / Improvement Lean Organization Mission / Vision Strategy / Goals Production System Op Mechs / Metrics Data / Information Availability Systems / Equipment Availability HR Strategy 11

12 Elements of a Lean Organization The system must move synchronously, at the optimal speed, in the same, correct direction 12

13 Toyota Financial Performance As A Benchmark Firm Established Ford 1903 GM Nissan Honda 07 Revenue 5-yr CAGR $172.5B 07 Earnings 5-yr CAGR -$2.9B -0.50% 0.00% $181.5B -$38.7B -0.70% 0.00% 1914 $86.7B $5.8B (*as Datsun) 13.40% 5.40% 07 Market Value ($B) As of 2/7/13 Mkt Val ($B) $104.0B $6.3B (*auto prod in 48) 8.10% 11.60% Total -$29.3B Toyota % 9.30% Toyota valued at 2-3 times the competition. 13

14 Improvement is a Key Element to a Lean Organization Process Development / Improvement Values / Beliefs Leadership A structured, data driven, problem solving methodology Product Development / Improvement People Development / Improvement Lean Organization Mission / Vision Strategy / Goals Critical element to a Leanthinking organization Production System Data / Information Availability Systems / Equipment Availability HR Strategy Op Mechs / Metrics 14

15 Six Sigma Defined Six Sigma is a problem-solving methodology that is: Standardized Systematic Process oriented Data-driven Based on scientific method Goal: Ensure identified process/product produces desired output/performance level. 15

16 Improving Performance with the Scientific Method Problem/Question Observation/Research Formulate a Hypothesis Experiment Collect and Analyze Results Conclusion Communicate the Results Everything you needed to know about problem solving, you learned in 6 th grade science! 16

17 How Do Lean and Six Sigma and Project Management Interact? Lean is how you run your business Six Sigma is a method for solving your complicated problems Project Management is how you complete your continuous improvement projects (including 6 Sigma) on time and budget 17

18 Disclaimers WATA No get rich quick schemes, silver bullets, or cookie-cutter solutions we re not offering any. 73 days vs. 73 years at Toyota You must practice to become proficient. Not about becoming Toyota; rather understand what they did and why, and how to apply principles to your situation. Simple Easy 18

19 Lean Thinking In order to understand what makes Leanthinking companies so successful you must understand the DNA of the organization. 19

20 Lean Thinking Understanding the Customers Kaizen (Continuously Improving ) J I D O K A Key Elements / Methods Flexible, Motivated Employees Critical Activities Maintaining & Improving the Standards J I T Foundation Standardization / Problem Solving Goals & Desired Results The Customer The Employee The Company Highest Quality Lowest Cost Shortest Lead-Time Work Satisfaction Job Security Consistent Income Market Flexibility Profit (from cost reduction) Base Values & Core Philosophies Customer First Always Respect for Community and the People Constantly seek to eliminate waste 20

21 The Foundation For Toyota s Success Kaizen (Continuously Improving ) J I D O K A Key Elements / Methods Flexible, Motivated Employees Critical Activities Maintaining & Improving the Standards Standardization / Problem Solving J I T Who is important and how do I satisfy them The Customer The Employee The Company Highest Quality Lowest Cost Shortest Lead-Time Customer First Always Work Satisfaction Job Security Consistent Income Respect for Community and the People Market Flexibility Profit (from cost reduction) Elimination of Waste Constantly seeking 3 customers endusers, employees, shareholders. All must be considered. Understand how to deliver value for each customer 21

22 Lean Thinking Principles 1. Truly understand who all your customers are, and what they value. (What you need to believe) I. External Customer II. Employees III. The Company 2. Continuously strive to maximize value by identifying and removing waste (process improvement). (How you need to behave) I. Creating a system to identify problems II. Managing the system III. Solving Problems 22

23 Lean Thinking Maximize Customer Value Maximize value: Customer Value = Worth Price (To The customer) (Profits + Costs) Increase worth by listening to the customer; understand what they are willing to pay for Decrease costs by reducing waste Maximize value by focusing on both increasing worth and reducing costs 23

24 Lean Thinking Maximize Customer Value Assume: Carpenter s hourly rate = $50/hour Time savings per house = 50 hours (1 house only) Benefit derived from pneumatic nail gun per house = $

25 Maximize Customer Value Value - Benefit Derived by Customers ($2500) Customer Value Captured Total Value Created - Selling Price ($2000) Supplier Value Captured - Cost to produce ($1500) To stay in business, both must find value. To be competitive, we must create more customer value than our competitors 25

26 Lean Thinking Principles 1. Truly understand who all your customers are, and what they value. (What you need to believe) I. External Customer II. Employees III. The Company 2. Continuously strive to maximize value by identifying and removing waste (process improvement). (How you need to behave) I. Creating a system to identify problems II. Managing the system III. Solving Problems 26

27 Employee & Community Value Organization Jobs 1. General Motors: 107, Ford: 15, Chrysler 13,600 As the U.S. auto industry sheds workers, and even Nissan offers buyouts, Toyota is sticking by its proud and expensive tradition of no layoffs during hard times. US News & WR. 8/26/08 Saying you are committed to your employees and the community is easy. Actually showing your commitment is tougher. 27

28 Employee & Community Value Other examples: Helped start and sponsor nonprofit dedicated to support local school district Provides technical, cultural, and leadership training to elementary, middle, and high school groups. HR ratios: ~1-20. Extensive employee development & feedback. Living the Golden Rule. 28

29 Lean Thinking Principles 1. Truly understand who all your customers are, and what they value. (What you need to believe) I. External Customer II. Employees III. The Company 2. Continuously strive to maximize value by identifying and removing waste (process improvement). (How you need to behave) I. Creating a system to identify problems II. Managing the system III. Solving Problems 29

30 Maximizing Shareholder Value Traditional Pricing Model Price = Cost + Profits But rather Profit = Price - Cost 30

31 Maximizing Shareholder Value Profit = Price - Cost (Shareholder value) (Set by market) *True monopolies semi exception (Our focus) (In order to compete), we must build cars at 1/10 th the cost (of American cars). Kiichiro Toyoda 31

32 Removing Waste Is Key To Profitability Cost = Value add activities NVA + but req d + NVA activities Value add is necessary customers pay for it. Non-value added (NVA) but required can t live without it. So we must focus on the NVA activities the waste! 32

33 Identifying Opportunities A revolution in consciousness is indispensible Taiichi Ohno; Chief Inventor of the Toyota Production System 33

34 Types of Non-value Add Activity The Three M s : Muda, Muri, and Mura Muri = Overburden; placing too heavy a mental or physical burden on employees or machinery i.e. running at a rate greater than designed capacity Mura = Unevenness; work unevenly distributed among employees / process. Muda = Waste 34

35 Waste (Muda) The Eight Wastes Defects Over Production Waiting NVA Processing Transportation Inventory Motion Underutilized Employees 35

36 Waste 1 Defects Defined The Eight Wastes Defects Over Production Waiting NVA Processing Transportation Can be either a processrelated or product defect. Upsets customers Consumes resources Chokes flow Inventory Motion Underutilized Employees Reworking defects is wasteful; sending them to customers is sinful. 36

37 Waste 2 Over Production Defined The Eight Wastes Defects Over Production Waiting NVA Processing Transportation Inventory Ties up working & intellectual capital Takes up physical and virtual space Hides problems Magnifies all other wastes Motion Underutilized Employees Producing more than the downstream customer immediately needs. 37

38 Waste 2 Over Production Examples The Eight Wastes Defects Over Production Waiting NVA Processing Transportation Inventory Motion Underutilized Employees Physical Batching parts Building / shipping early Warehousing / supermarkets Transactional Producing engineering drawings ahead of time Running reports ahead of time. Too many copies 38

39 Waste 3 Waiting Defined The Eight Wastes Defects Over Production Waiting NVA Processing Underutilizes people and equipment Slows customer response Increases lead times Transportation Inventory Motion Underutilized Employees When inventory or workers wait, your customers wait 39

40 Waste 4 NVA Processing Defined The Eight Wastes Defects Over Production Waiting NVA Processing Transportation NVA = Non-value added Sometimes revered to as over processing. Must explicitly understand customer needs. Inventory Motion Underutilized Employees Giving the customer more than what they wanted and for which they do NOT find value 40

41 Waste 4 NVA Processing Examples The Eight Wastes Defects Over Production Waiting NVA Processing Transportation Physical Transactional Inventory Motion Underutilized Employees Excessive finishing Testing / quality checks Excessive packaging Unnecessarily tight tolerances. Redundant paperwork Information reclarification / excess information gathering Software features no one uses 41

42 Waste 5 Transportation Defined The Eight Wastes Defects Over Production Waiting NVA Processing Transportation Inventory Motion Underutilized Employees Physical or virtual distance between processes Requires equipment and time Can result in cost i.e. lost or damaged information or material. May be necessary; must minimize. Position operations close together to minimize impact. 42

43 Waste 6 Inventory Defined The Eight Wastes Defects Over Production Waiting NVA Processing Ties up working capital Takes up valuable space Risk of obsolescence and / or damage Transportation Inventory Motion Underutilized Employees Lowering inventory levels will help reveal problems. 43

44 Waste 6 Inventory Examples The Eight Wastes Defects Over Production Waiting NVA Processing Transportation Inventory Motion Underutilized Employees Physical Finished goods Raw materials Work in process Consignment Transactional Gathering or storing information ahead of time. Job folders 44

45 Waste 7 Motion Defined The Eight Wastes Defects Over Production Waiting NVA Processing Transportation Inventory Movement within the process itself. Can cause ergonomic concerns both in office and on floor. Results in wasted cost through inefficient movement. Motion Underutilized Employees Treat associates like surgeons everything within reach. 45

46 Waste 7 Motion Examples Before After Using portable ladder to access car and transport tools and equipment. Resulting in excessive trips and safety issues. Previous observations revealed average 3 trips per hour for top of car tasks Fixed platform and tool board reduce up and down travel by 45 minutes per car & eliminate ladder safety issues. 46

47 Waste 8 Underused Employees Defined The Eight Wastes Defects Over Production Waiting NVA Processing Transportation Inventory People not matched to their value added skills Not using the intelligence of the workforce to solve problems. Increased cost due to lack of productivity; potential absenteeism. Motion Underutilized Employees When you hire a person for their hands, you get the brain for free. Use it! 47

48 Waste Summary Identified from customer point of view. Perfection is the goal recognize you will never be perfect. Continuously challenge your organization to identify and remove it. If you think you ve found perfection that s your biggest problem 48

49 Lean Thinking Principles 1. Truly understand who all your customers are, and what they value. (What you need to believe) I. External Customer II. Employees III. The Company 2. Continuously strive to maximize value by identifying and removing waste (process improvement). (How you need to behave) I. Creating a system to identify problems II. Managing the system III. Solving Problems 49

50 Improvement The most important (and first) step to improvement is Recognizing you have a problem! (Problem Consciousness) 50

51 Toyota Production System (TPS) Defined All we are doing is looking at a time line from the moment the customer gives us an order to the point when we collect the cash. And we are reducing that time line by removing the non-value added wastes Taiichi Ohno, Toyota Production System 1978 All Lean tools / techniques created to highlight waste! 51

52 Elements of a Lean Organization A system, not simply a set of tools Process Development / Improvement Values / Beliefs Leadership Most want to focus here! Product Development / Improvement People Development / Improvement Lean Organization Mission / Vision Strategy / Goals Production System Op Mechs / Metrics Data / Information Availability Systems / Equipment Availability HR Strategy 52

53 A Benchmark Foundation / System An principled approach built on the right values J I D O K A Key Elements / Methods Kaizen (Continuously Improving ) Maintaining & Improving the Standards Flexible, Motivated Employees Critical Activities J I T Foundation Standardization / Problem Solving Goals & Desired Results The Customer The Employee The Company Highest Quality Lowest Cost Shortest Lead-Time Work Satisfaction Job Security Consistent Income Market Flexibility Profit (from cost reduction) Base Values & Core Philosophies Customer First Always Respect for Community and the People Constantly Seek to Eliminate Waste 53

54 Lean Techniques 5S Andon Takt Time Kaizen Kanban Pokayoke Standardized Work Single Piece Flow Visual Management Some of the Lean tools and techniques used to identify and remove waste VSM 54

55 Lean Techniques 5S 5S Andon Takt Time Kaizen Kanban Pokayoke Standardized Work Single Piece Flow Visual Management VSM Sort only what you need Set-in-place / Simplify find it quickly Shine keep it clean Standardize consistent approach Sustain discipline and follow-up Effectively organize to identify abnormal conditions 55

56 5S Example Before Kaizen After Kaizen Top Shelf Safety valve kits 2 nd shelf BOV kits Lower shelves Small O-rings and less frequently used kits Color coded by gasket type and sorted by valve type Positioned for good ergonomics 56

57 Lean Techniques - Andon 5S Andon Takt Time Kaizen Andon simply means light Provides visual status indication Used to immediately alert team to abnormal condition Kanban Pokayoke Standardized Work Single Piece Flow Visual Management VSM Alerts everyone to a problem immediately 57

58 Lean Techniques Takt Time 5S Andon Takt Time Kaizen Kanban Pokayoke Standardized Work Single Piece Flow Visual Management VSM Derived from the German taktzeit (clock cycle) Matches process output rate with customer (downstream process) demand Based on time available to conduct the process and the rate at which customer is demanding output The Heartbeat of the Business 58

59 Lean Techniques - Kaizen 5S Andon Takt Time Kai ( Change ) + Zen ( Good ) Bunts and singles ; small, but incremental and continuous (daily) improvements by everyone Kaizen Kanban Pokayoke Standardized Work Single Piece Flow Visual Management VSM Performance Process owner established Incremental Approach to CI Goals set Dedicated Process improvement mapped; event #1 work standardized On the fly change Performance target Desired future state 59

60 Lean Techniques - Kanban 5S Andon Takt Time Kaizen Kanban Pokayoke Standardized Work Single Piece Flow Visual Management VSM Means visual card Inspired by the concept of the American supermarket Customer gets what they need, in the time needed, while ensuring the store stocks only what will be used Supermarkets: An empty spot prompts the shelf to be refilled. After enough refills, the store generates a replenishment request 60

61 Lean Techniques Poka-yoke 5S Andon Can you identify the poka-yoke? Takt Time Kaizen Kanban Poka-yoke Creating a fail safe or mistakeproof method to guarantee desired process output. Standardized Work Single Piece Flow Visual Management VSM 61

62 Lean Techniques Standardized Work 5S Andon Takt Time Kaizen Kanban Pokayoke Standardized Work Single Piece Flow Visual Management VSM Acknowledge the guest Recognize special guests / offer to enroll Recap preferences Info in the reservation correct? Verify method of payment Acquire keys Leave a lasting impression 62

63 Lean Techniques Single Piece Flow 5S Andon Takt Time Batch Single Piece Flow Kaizen Kanban Pokayoke Standardized Work Single Piece Flow Visual Management VSM Catches Defects too Late How many more do you have? Where are they in the process? What is the root cause? From: The Toyota Production System Catches Defects Immediately You only have one You know where it occurred Resolve the root cause immediately Flow where you can, pull when you can t 63

64 Lean Techniques Visual Management 5S Andon Takt Time Kaizen Kanban Pokayoke Standardized Work Single Piece Flow Visual Management VSM Tell at a glance if activities are behaving as expected; a communication tool. 64

65 Lean Techniques Value Stream Mapping 5S Andon Takt Time Kaizen Kanban Pokayoke Standardized Work Single Piece Flow Visual Management VSM See and understand material & information flow across the entire value stream 65

66 Importance of a Value Focus One more question Why are companies in business? 66

67 Importance of a Value Focus 5S Remember the lean techniques? Are they independent? Are they self sustaining? Can we make them more effective? Andon Takt Time Kaizen Kanban Pokayoke Standardized Work Single Piece Flow Visual Management 67

68 Importance of a Value Focus Yes! We can make them more effective if we understand that. Lean is a culture and business philosophy 68

69 Importance of a Value Focus Axioms Principles Techniques Is there a natural flow? Relationships Value People Just-in-time (Flow) Perfection Autonomation (Jidoka) Continuous Learning Stability 5S Andon Takt Time Kaizen Kanban Pokayoke Standardized Work Single Piece Flow Visual Management Significantly influenced by Joachim Knuf 69

70 Importance of a Value Focus Axioms Principles Techniques Are any of these more important than the other? Relationships Value People Just-in-time (Flow) Perfection Autonomation (Jidoka) Continuous Learning Stability 5S Andon Takt Time Kaizen Kanban Pokayoke Standardized Work Single Piece Flow Visual Management Significantly influenced by Joachim Knuf 70

71 Importance of a Value Focus Axioms Principles Techniques What if we aren t focused on value? Relationships Value People Just-in-time (Flow) Perfection Autonomation (Jidoka) Continuous Learning Stability 5S Andon Takt Time Kaizen Kanban Pokayoke Standardized Work Single Piece Flow Visual Management Significantly influenced by Joachim Knuf 71

72 Importance of a Value Focus Axioms Principles Techniques What if we aren t focused on value? Relationships Profits People Just-in-time (Flow) Perfection Autonomation (Jidoka) Continuous Learning Stability 5S Andon Takt Time Kaizen Kanban Pokayoke Standardized Work Single Piece Flow Visual Management Significantly influenced by Joachim Knuf 72

73 Importance of a Value Focus Axioms Principles Techniques What if we aren t focused on value? Competition Profits People Just-in-time (Flow) Perfection Autonomation (Jidoka) Continuous Learning Stability 5S Andon Takt Time Kaizen Kanban Pokayoke Standardized Work Single Piece Flow Visual Management Significantly influenced by Joachim Knuf 73

74 Importance of a Value Focus Axioms Principles Techniques What if we aren t focused on value? Competition Profits Corporation Just-in-time (Flow) Perfection Autonomation (Jidoka) Continuous Learning Stability 5S Andon Takt Time Kaizen Kanban Pokayoke Standardized Work Single Piece Flow Visual Management Significantly influenced by Joachim Knuf 74

75 Importance of a Value Focus Axioms Principles Techniques What if we aren t focused on value? Competition Profits Corporation Just-in-case Perfection Autonomation (Jidoka) Continuous Learning Stability 5S Andon Takt Time Kaizen Kanban Pokayoke Standardized Work Single Piece Flow Visual Management Significantly influenced by Joachim Knuf 75

76 Importance of a Value Focus Axioms Principles Techniques What if we aren t focused on value? Competition Profits Corporation Just-in-case Good enough Autonomation (Jidoka) Continuous Learning Stability 5S Andon Takt Time Kaizen Kanban Pokayoke Standardized Work Single Piece Flow Visual Management Significantly influenced by Joachim Knuf 76

77 Importance of a Value Focus Axioms Principles Techniques What if we aren t focused on value? Competition Profits Corporation Just-in-case Good enough Automation Continuous Learning Stability 5S Andon Takt Time Kaizen Kanban Pokayoke Standardized Work Single Piece Flow Visual Management Significantly influenced by Joachim Knuf 77

78 Importance of a Value Focus Axioms Principles Techniques What if we aren t focused on value? Competition Profits Corporation Just-in-case Good enough Automation Program of the month Stability 5S Andon Takt Time Kaizen Kanban Pokayoke Standardized Work Single Piece Flow Visual Management Significantly influenced by Joachim Knuf 78

79 Importance of a Value Focus Axioms Principles Techniques What if we aren t focused on value? Competition Profits Corporation Just-in-case Good enough Automation Program of the month My way 5S Andon Takt Time Kaizen Kanban Pokayoke Standardized Work Single Piece Flow Visual Management Significantly influenced by Joachim Knuf 79

80 Importance of a Value Focus Axioms Principles Techniques What if we aren t focused on value? Competition Profits Corporation Just-in-case Good enough Automation Program of the month My way Mess Andon Takt Time Kaizen Kanban Pokayoke Standardized Work Single Piece Flow Visual Management Significantly influenced by Joachim Knuf 80

81 Importance of a Value Focus Axioms Principles Techniques What if we aren t focused on value? Competition Profits Corporation Just-in-case Good enough Automation Program of the month My way Mess Assign blame Takt Time Kaizen Kanban Pokayoke Standardized Work Single Piece Flow Visual Management Significantly influenced by Joachim Knuf 81

82 Importance of a Value Focus Axioms Principles Techniques What if we aren t focused on value? Competition Profits Corporation Just-in-case Good enough Automation Program of the month My way Mess Assign blame Speed Kaizen Kanban Pokayoke Standardized Work Single Piece Flow Visual Management Significantly influenced by Joachim Knuf 82

83 Importance of a Value Focus Axioms Principles Techniques What if we aren t focused on value? Competition Profits Corporation Just-in-case Good enough Automation Program of the month My way Mess Assign blame Speed Band aide Kanban Pokayoke Standardized Work Single Piece Flow Visual Management Significantly influenced by Joachim Knuf 83

84 Importance of a Value Focus Axioms Principles Techniques What if we aren t focused on value? Competition Profits Corporation Just-in-case Good enough Automation Program of the month My way Mess Assign blame Speed Band aide Excess inventory Pokayoke Standardized Work Single Piece Flow Visual Management Significantly influenced by Joachim Knuf 84

85 Importance of a Value Focus Axioms Principles Techniques What if we aren t focused on value? Competition Profits Corporation Just-in-case Good enough Automation Program of the month My way Mess Assign blame Speed Band aide Excess inventory Rework Standardized Work Single Piece Flow Visual Management Significantly influenced by Joachim Knuf 85

86 Importance of a Value Focus Axioms Principles Techniques What if we aren t focused on value? Competition Profits Corporation Just-in-case Good enough Automation Program of the month My way Mess Assign blame Speed Band aide Excess inventory Rework Tribal knowledge Single Piece Flow Visual Management Significantly influenced by Joachim Knuf 86

87 Importance of a Value Focus Axioms Principles Techniques What if we aren t focused on value? Competition Profits Corporation Just-in-case Good enough Automation Program of the month My way Mess Assign blame Speed Band aide Excess inventory Rework Tribal knowledge Batch and queue Visual Management Significantly influenced by Joachim Knuf 87

88 Importance of a Value Focus Axioms Principles Techniques What if we aren t focused on value? Competition Profits Corporation Just-in-case Good enough Automation Program of the month My way Mess Assign blame Speed Band aide Excess inventory Rework Tribal knowledge Batch and queue Search & find Significantly influenced by Joachim Knuf 88

89 Importance of a Value Focus Axioms Principles Techniques 5S Just-in-case Andon Competition Profits Corporation Good enough Automation Program of the month My way Takt time Kaizen Kanban Poke yoke Standardized work Single piece flow Visual management Can an organization only use the tools & techniques? Significantly influenced by Joachim Knuf 89

90 Importance of a Value Focus Axioms Principles Techniques Yes but it requires constant emphasis. Competition Profits Corporation Just-in-case Good enough Automation Program of the month Mess Assign blame Speed Band aide Excess inventory Rework Tribal knowledge Conventional organization applying Lean & Six Sigma tools My way Batch and queue Search & find Significantly influenced by Joachim Knuf 90

91 Importance of a Value Focus Lean Techniques <5% of Lean benefits Lean Principles Lean Axioms Do we only want the tip of the Lean iceberg? 91

92 Summary: Conventional vs. Lean Thinking To a conventional organization Lean is using specific techniques to increase productivity. Focus solely on cost. Six Sigma is a tool set driven by Belts to solve a companies problems. To a truly Lean organization Lean is a culture and management philosophy that eliminates waste and creates value for the customer. Six Sigma is a way of thinking by everyone to solve your most critical problems. 92

93 Last Thoughts On Why Organizations Fail To Change It is like tasting the best cake you have ever eaten and asking for the recipe. However, when it is time to bake the cake yourself, you determine that you don t have the time or patience to follow the recipe exactly so you cut corners. You don t let mixtures rest over night, you use less expensive ingredients to save money, and you cut the bake time down by a few minutes. Then, when your cake doesn t taste as good as the original, you blame the recipe! Bill Suycott Former Adaptive student 93

94 Questions? 94

95 Contact Us Adaptive Business Solutions facilitates the adoption of Lean thinking into your organization by integrating with your current culture and delivering the education and coaching needed to enhance and sustain customer, employee, and shareholder value. For inquiries regarding our services and availability, feel free to contact us via at or contact the managing partners directly: Brent Tadsen 126 S. Northwest Hwy Barrington, IL Cell: (312) Todd Wiese W175 N11163 Stonewood Dr.; Suite 214 Germantown, WI Cell: (262)