Basics of Lean Thinking Gary Hatcher American Electric Power
What is Lean Thinking? A competitive strategy for improving the operating performance of any business Consists of a set of Principles, Systems Tools Relentless focus on the elimination of waste By Every Person At Every Level On Every Process Every Day Also known as the Toyota Production System, but Roots of Lean are in Henry Ford s methods 2007 BESCORP 3
How is Lean Thinking Different? It s not about turning wrenches faster... It s not about working less safe It s not about eliminating jobs But that is what some individuals will believe until they learn otherwise Lean is about eliminating the things that keep us from turning wrenches and working safely in the first place and you get more done with the people you have Identifying Non-Value Added process steps The Seven Deadly Wastes TIM WOOD 2007 BESCORP 4
Lean Thinking Principles Identify Value from the customer s perspective Map the end-to-end Value Stream for the product or service and identify waste Examples: Generation, Transmission, Distribution, or Develop Policy, Submit Samples, Chemical Inventory Remove waste and re-design the Value Stream to improve Flow Produce based on customer Pull Continuously improve the Value Stream toward Perfection Lean Thinking, Womack and Jones, 1996 2007 BESCORP 5
The Continuous Improvement Cycle Plan Observe the current state Define desired future state Develop a plan to get there Establish metrics / targets Communicate and gain support for the plan P A Adjust Reflect Resolve issues Standardize Share Lessons learned D C Check Do Implement the Rapid Improvement Plan Monitor results Seek feedback from affected stakeholders Compare actual to expected results Understand root cause of variance or deviations Can be applied at every level on everything! 2007 BESCORP 6
Rule of Thumb Remove Gear Box Transport Disassemble Wait Set-up Machine Component Inspect Rebuild Re-Install Transport Start Broken Component Time Repaired Component Finish = Value Added Time = Non-Value-Added Time (WASTE) Typically less than 5% of the total lead time is attributable to Value Added activities Biggest opportunities are in the gray (Non-Value Added or Waste) spaces 2007 BESCORP 7
The Seven Deadly Wastes Transportation Inventory Motion Waste adds time and cost to our Value Streams with-out directly contributing to Customer perceived Value. Wait Time Over Production Over Processing Eliminating waste is the focus of our Lean Thinking. Defects 2007 BESCORP 8
Type I / II Waste Type I Waste Currently unavoidable Limited by current technology, procedure, policy, or law Remember the term Book, Chapter, and Verse Type II Waste Immediately avoidable Focus of Lean activities Type II Waste Type I Waste We re going to concentrate on the waste we can do something about 2007 BESCORP 9
Lean Thinking Deployment System Executive Planning Session (EPS) Create a Vision, specify improvement objectives, establish metrics / targets, select value streams, allocate resources, develop tentative schedule, deploy and align improvement efforts. Value Stream Analysis (VSA) See the Waste in the current state, design the future state, and develop Rapid Improvement Plans for selected Value Streams. Plan Adjust Practitioner Qualification Process (PQP) To steadily and methodically transition the skills necessary to sustain the Lean culture to a core group of Lean Practitioners. Incorporate progress into EPS. Rapid Improvement Events (RIE) Hands-on learning opportunities for the general population to lay and improve the Lean foundation. Idea Generation Session (IG) Integrating continuous improvement and waste elimination with the daily work of every employee. 2007 BESCORP Do Check Maturity Assessment Process (MAP) To accelerate State progress from simply doing Lean things to actually becoming Lean by developing a plan to close the gaps between current conditions and industry recognized best practices. Incorporate lessons learned into EPS. Structured Problem Solving (SPS) Hands-on learning opportunities for qualified Practitioners to improve the Lean foundation and begin integrating CPI with daily work. 10
What does Lean mean for Industrial Hygiene Get involved and embrace the change By including ESH in Lean Management gains credibility with employees Being a Change Agent will give you credibility with Management. Use your skills to support Lean Be a resource for understanding regulations and company policy Be an advocate for Lean Thinking within your group and the company Establish a mantra, Just as healthy and safe, but more productive Learn to use the Lean tools and techniques for your department s benefit: To evaluate an exposure or event to find controls To improve the internal processes of your department To find solutions to problems where a lot of different people know part of the answer, but no one person knows all the answer Map processes to identify hazards or to helps you to understand where the waste is in your organization 11
Questions? Q U E S Q U E S T I O N S? I O N S? 12