Lean Thinking Part I
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1 Lean Thinking Part I
2 Learning Objectives At the end of this module, you will be able to: Describe the elements of a process Draw a process map Explain what constitutes value in a process List the five fundamental lean principles Describe several concepts and tools for implementing lean principles Lean Thinking V7.6 - Slide 2
3 What is a Process? Suppliers Inputs Set of actions which transform inputs to outputs Outputs Customer Process: A series of actions, changes, or functions bringing about a result Ref: Jan. 8, 2003 Lean Thinking V7.6 - Slide 3
4 Identify the Customer What happens to the outputs of a process? They go to a CUSTOMER! External customers - are outside an organization, money is typically exchanged with external customers End users are customers who pay for an operational or consumable product or service Internal customers - are inside an organization, money is typically not exchanged directly with internal customers Customers also drive the inputs to a process through their needs and requirements Lean Thinking V7.6 - Slide 4
5 Process Maps Photo by Earll Murman Process map for pre lean treatment of Acute Myocardial Infarction (aka heart attack). Courtesy of Jefferson Healthcare, Port Townsend, WA. Used with Permission. Process map for pre lean engineering drawing release Courtesy of Lockheed Martin Corporation. Used with permission. Source: "Lean PD Efforts for F-22", LAI Product Development Winter Workshop, January 27, Only understood processes can be improved Understanding a process is easier when it can be visualized A process map is an organized visualization of all the interrelated activities which combine to form a process Lean Thinking V7.6 - Slide 5
6 Process Map For Fixing a Hot Dog Hot dog Order Customer Deliver Order Need Hot dog, bun? No P pantry Cook Hot Dog Put in bun Add condiments Add to shopping list Yes Yes Store Clean up Last Dog, bun? No Stop Symbology Main process flow Secondary, feeder flow Information flow Yes No Supplier, Warehouse Task Inventory, Wait Decision Lean Thinking V7.6 - Slide 6
7 Team Exercise: Hot Dog Stand Process Map Sasha Andy Develop a process map for S&A Hot Dogs Identify process input(s) and output(s) Make a rectangular post-it note for each process element Arrange on easel chart from input to output Add decision (diamond) and wait/inventory (triangle) post-its as needed Draw lines for process & information flow In 10 minutes, be prepared to explain your process map to the class Lean Thinking V7.6 - Slide 7
8 Basic Mapping Symbols Inventory or waiting I Task <noun> verb noun <Answer B> Answer A Question? Issue!? Decision <Answer C> Burst Main process flow Secondary, feeder flow Information flow Lean Thinking V7.6 - Slide 8
9 No Right Answer A process map is a 2-D visualization of a process taking place in 3-D space and time Many ways to map even a simple process Goal is to capture and communicate the key features of the process Avoid unneeded details of each step Photo by Earll Murman Lean Thinking V7.6 - Slide 9
10 Process Wrap Up Processes underlay everything we do Understanding and improving processes is the key to improving productivity The fundamentals of lean thinking are the foundation of modern process improvement Lean Thinking V7.6 - Slide 10
11 Five Lean Thinking Fundamentals Specify value: Value is defined by customer in terms of specific products and services Identify the value stream: Map out all end-to-end linked actions, processes and functions necessary for transforming inputs to outputs to identify and eliminate waste Make value flow continuously: Having eliminated waste, make remaining value-creating steps flow Let customers pull value: Customer s pull cascades all the way back to the lowest level supplier, enabling just-in-time production Pursue perfection: Pursue continuous process of improvement striving for perfection Ref: James Womack and Daniel T. Jones, Lean Thinking, New York, Simon & Schuster, 1996 Lean Thinking V7.6 - Slide 11
12 Specify Value Value Value Stream Flow Pull Perfection Value Added Activity Transforms or shapes material or information or people And it s done right the first time And the customer wants it Non-Value Added Activity Necessary Waste No value is created, but cannot be eliminated based on current technology, policy, or thinking Examples: project coordination, regulatory, company mandate, law Non-Value Added Activity - Pure Waste Consumes resources, but creates no value in the eyes of the customer Examples: wait time, inventory, rework, excess checkoff, accidents Lean Thinking V7.6 - Slide 12
13 Can you see any mistakes? Does Inspection Add Value? Value Value Stream Flow Pull Perfection I LOVE PARIS IN THE THE SPRINGTIME Images by MIT OpenCourseWare. Is inspection a value added, non value added necessary waste, or non value added pure waste activity? Lean Thinking V7.6 - Slide 13
14 Identify the Value Stream Value Value Stream Flow Pull Perfection A value stream is ALL the linked end-to-end activities that take place to deliver value Starts with raw materials or initial information Ends with the end customer/user Customer needs/requirements, schedules Material or information or people Product or service valued by the customer Lean Thinking V7.6 - Slide 14
15 What Moves In a Value Stream? Value Value Stream Flow Pull Perfection In manufacturing material flows In design & services information flows In human services people flow Lean Thinking V7.6 - Slide 15
16 Analyzing the Value Stream Value Value Stream Flow Pull Perfection Muda Non value added Look for the eight wastes (next slide) Muri Overburden of people or equipment Results in safety and quality problems Mura Unevenness Irregular or fluctuating production or workload due to poor planning, staffing, inoperative equipment, missing supplies, or irregular demand. Mura is a root cause Muda is an outcome Muda Mura Muri Ref: J. Liker, The Toyota Way Lean Thinking V7.6 - Slide 16
17 1. Over-production Eight Seven Types of Waste Creating more material or information or tests or treatment than needed 2. Inventory More material or information than needed 3. Transportation Moving material or information or people 4. Unnecessary movement 5. Waiting 6. Defective outputs 7. Over-processing 8. Unused employee creativity Value Value Stream Flow Pull Perfection Moving employees to access or process material or information or patients Waiting for material, information or treatment - or work in process waiting to be processed. Errors or mistakes causing the effort to be redone to correct the problem Processing more than necessary to produce the desired output Losing improvement opportunities by not engaging or listening to employees Lean Thinking V7.6 - Slide 17
18 Unnecessary Movement Value Value Stream Flow Pull Perfection Spaghetti Chart Example- BEFORE Dirty Utility To the Hospital SH BR Store Radiology Film Process BR 10 MD Office Steps Triage Nurse takes to place patient in room Nur Station Radio Meds Reg Clean Utility Elec 17 BR 25 BR Stairwell SH BR Not to exact scale 3 Storage Reg T2 T1 Triage Nur Station Meds 24 BR BR Total distance traveled = 1250 Feet=381m Ambulance Entrance Staff Lounge Waiting Room Peds WR Main Entrance Spaghetti charts are a powerful visual tool for seeing unnecessary movement Source: University of Michigan Health System, Ann Arbor, MI Image by MIT OpenCourseWare. Lean Thinking V7.6 - Slide 18
19 Value Value Stream Flow Pull Perfection Combining all relevant material, parts, and/or information into a single package which can be delivered to the Point-of-Use (POU) in a process to reduce unnecessary movement bill of material work instructions Kitting wire bundle tubes in a shadow box Courtesy of University of Michigan Health System, Ann Arbor, MI. Used with permission. Lean Thinking V7.6 - Slide 19
20 Mistake Proofing (poka yoke) Value Value Stream Flow Pull Perfection Mistake-proofing is the use of process or design features to prevent errors or the negative impact of errors Healthcare examples: Wristbands Self blunting syringes Automatic wheel chair brake Others: Left and right side wires with different connectors Asymmetric mounting points Break-away gas nozzle with auto-shutoff Vacuum Oxygen Photos by Earll Murman Square Round set pin set pin Ref: Mistake-Proofing the Design of Health Care Processes, Agency for Healthcare Research and Quality, U.S. Department of Health and Human Services. Lean Thinking V7.6 - Slide 20
21 Checklists Reduce Defective Work Value Value Stream Flow Pull Perfection World Health Organization (WHO). All rights reserved. This content is excluded from our Creative Commons license. For more information, see Source: World Health Organization Surgical Safety Checklist (First Edition). Retrieved May 8, 2009 from Lean Thinking V7.6 - Slide 21
22 Waste (Muda) Walk Sasha Andy With your team, take 10 minutes to Identify with colored dots the Value added process steps Necessary waste process steps Pure waste process steps Use the 8 wastes as a guide Be ready to report your answers to the class, including your questions Lean Thinking V7.6 - Slide 22
23 Gemba* - the actual place Basic tenet of lean thinking go to the place where work is being done and observe first hand the process in action Japanese call this genchi genbutsu, or go see for yourself Honda calls this the three actuals Go to the actual place Talk to the actual people Doing the actual work Relying on data and observations produced by others does not give a complete understanding Go to the Gemba * Sometimes the alternate transliteration genba is used. Photos by Earll Murman Lean Thinking V7.6 - Slide 23
24 MIT OpenCourseWare J / ESD.62J / Introduction to Lean Six Sigma Methods IAP 2012 For information about citing these materials or our Terms of Use, visit:
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