LEAN BASICS AND DEPLOYMENT www.altexsolutionsgroup.com Tom Burkett, CEO Bentley Stires, COO tom.burkett@altexsolutionsgroup.com bentley.stires@altexsolutionsgroup.com Telephone: (251) 504 4125 Telephone: (979) 220 2853
Introduction Who we are. Why we think Lean and Lean Six Sigma (LSS) are great methodologies as cornerstones to a full continuous improvement deployment. How do you think a better understanding of Lean principles would improve your organization?
Guiding Thoughts Lean is about the process. Lean is about team. Lean is about involvement. Lean is about commitment. Lean is not exclusive to manufacturing.
Today s Agenda Introduction to Lean. Hearing and understanding the voice of the customer. Process Mapping. Understanding variation in your process. A very basic introduction to Six Sigma. Identifying the forms of waste
Today s Agenda (cont.) Value stream mapping Overview of Basic Lean Tools Project Selection and Prioritization Implementing a lean program in your organization
Today s Agenda (cont.) Additional Topics (time permitting) Variation and Six Sigma DMAIC Roadmap
Lean Knowledge Test Let s check our knowledge of Lean. 1. I have very limited understanding of lean. 2. I know and use a few of the lean tools. 3. I understand some of the principles and try to apply across my area of responsibility. 4. I encourage lean thinking by my employees. 5. Sit down. I should be teaching this stuff!
Origins of Lean Just in Time Dr. Deming
Henry Ford History of Lean
History of Lean Based on Taylor s theory of scientific management, Henry Ford s vision was to build a car for the multitude. Highly efficient for the time. In 1926 a Model T came off the assembly line every 93 minutes. Highly inflexible.
History of Lean Henry was not too concerned with worker satisfaction. Thought money was their only source of satisfaction on the job. Concerned primarily with how to speed up the production line.
Kiichiro Toyoda History of Lean
History of Lean Mr. Toyoda, as a young engineer, developed an attachment for a loom that stopped the machine whenever yarn broke.
History of Lean In 1934 Toyoda bought a Chevrolet and had his engineers take apart and put back together. In 1935 built first gasoline vehicle using parts from Chevy, Chrysler, and some unique ones built in Japan. Toyota Automobiles were born. Spelling changed for marketing purposes.
Toyota Production System Absolute elimination of waste. Worker satisfaction in areas other than pay. Continual striving for process improvement in every area of the business. (Kaizen).
Lean Six Sigma (LSS) Six Sigma and Lean were married probably some time in the late 1980 s or early 1990 s by Michael George and colleagues. It has been around since with no signs of going away!
Lean Six Sigma Six Sigma = Quality Lean = Speed and Flexibility
Goals of Lean Highest quality In the shortest time At the lowest cost With maximum flexibility
Goals of Six Sigma Reduce variation in the process Improve quality to a level where there are fewer than 3.4 defects per million opportunities.
Basic Theory of Six Sigma If we concentrate on reducing variation in a process then we have a more uniform and predictable output.
Basic Theory of Lean If we place more effort on reducing waste in our process, then flow time will improve.
Benefits of Lean Improved quality and fewer defects. Reduced inventory. Requires less space. Enhances flexibility. Makes future improvements simpler. Safer work environment. Improved employee morale.
Principles of Lean
Principles of Lean Identify customers and specify value Identify and map the value stream Create flow by eliminating waste Develop a pull system Pursue perfection
Process Mapping A process map is a visual representation of the process capturing all the relevant steps.
Types of Process Maps Process Flow Chart Swim Lane SIPOC Value Stream Future State
Benefits of a Process Map Process maps help facilitate a greater understanding of a process by identifying: Bottlenecks. Redundancies. Waste. Key process inputs and outputs. Key decision points and criteria. Roles and responsibilities
Process Mapping
Process Map Example
Process Map Example
Process Map Example
Steps in Process Mapping Assemble team of people familiar with the process. Choose the appropriate process map type. List all process steps on the map. Ensure enough details to capture all relevant activity.
Process Mapping Determine the boundaries of the process. Clearly define starting and stopping points. Agree on the level of detail necessary to clearly understand the process and identify problem areas. Include any sub or parallel activities.
Process Mapping Determine the steps in the process. Brainstorm and list all major activities, inputs and outputs, from the beginning to the end. Use post it notes so you can move around when necessary.
Process Mapping Sequence the steps. Arrange in the order of the process. Once again make sure you capture the sub and parallel activities.
Process Mapping Test the map for completeness. Are all steps captured? Make sure every path takes you either back or forward to another step.
Remember You cannot improve a process until everyone agrees on what the process is.
Mapping Tools (Manual) Knowledgeable team. Kraft paper. Post it notes. Markers. Flip charts. Most importantly!
Most Important Process Mapping Tool
Identifying Value and Customers Who are your customers? What are they willing to pay for? Which activities are value added and which ones do not add value to the process.
VOC Voice of Customer
Typical? Voice of the Customer
Who are Your Customers Internal? External?
Voice of Customer Only customers define quality.
Voice of Customer Complaints Returns Cancellations Referrals What other customer voices do you hear?
Voice of Customer Ask the right questions. Ask in the right way. Understand the answers.
Translating Voice of Customer Translate into Critical Customer Requirements (CCR s). Convert the (CCR s) into Key Process Output Variables (KPOV s). How do we do this?
Critical Customer Requirement VOC Input. We do not like your product. What might be the key customer issue? What might be the critical customer requirement?
Key Process Output Variables S M A R T
Key Process Output Variables Specific M A R T
Key Process Output Variables S Measurable A R T
Key Process Output Variables S M Attainable R T
Key Process Output Variables S M A Relevant T
Key Process Output Variables S M A R Time Sensitive
Key Process Output Variables Specific Measurable Attainable Relevant Time Sensitive
Value Stream Mapping
Value Stream Mapping What is the value stream?
Value Stream Mapping Why map the value stream?
Identifying and mapping the value stream. If you don t know where you are going, any road will take you there. Analyzing the value stream is the first step in determining where you are going. Either you manage the process or it manages you. You do have a choice!
Value Stream Mapping Identify which steps add value for the customer. Identify those steps that are necessary for the business to function. Identify non value added steps.
Customer Value Added What you do that the customer is willing to pay for. (CVA).
Business Value Added What must be done as a necessary part of functioning in your environment. (BVA).
Non Value Added What steps add neither value to the customer or the organization. (NVA).
Goals for (CVA), (BVA), (NVA) Eliminate (NVA). Eliminate or greatly reduce (BVA). Reduce and optimize (CVA).
Waste
Eliminating Waste Most steps in the value stream do not add value to the process. Eliminating waste ensures a smoother flow to the customer.
Tim Wood Forms of Waste
T I M W O O D Forms of Waste
Transportation I M W O O D Forms of Waste
T Inventory M W O O D Forms of Waste
T I Motion W O O D Forms of Waste
T I M Waiting O O D Forms of Waste
T I M W Over processing O D Forms of Waste
T I M W O Overproducing D Forms of Waste
T I M W O O Defects Forms of Waste
Forms of Waste Tim was recently given a middle initial. P
People Forms of Waste
Transportation Inventory Motion Waiting Over processing Over producing Defects + People Forms of Waste
Rework! Hidden Factory
Hidden Factory
Pull Systems
Pull Systems A not so effective pull system.
Pull Systems A more effective pull system.
Developing a Pull System Truly understand what the customer wants. Develop a system to provide their product or service to them at the rate they want no faster or slower.
Pull System Benefits Simplifies communication. Reduces inventory. Shortens and controls lead time. Reduces work in process. Reduces cycle time Increases customer satisfaction.
Pull System Elements Movement based on next operation s need. Balanced lines by using kanban s.
Kanban Pull Systems
Kanban signals. Pull Systems
Pursue Perfection Creating flow allows waste to become more visible therefore easier to eliminate. Pull systems reduce process cycle time allowing greater flexibility.
Project Selection Analyze the Process and/or Value Stream Map to find opportunities for improvement. Number and list all the opportunities.
Project Selection Set up a graph with benefit as the Y axis and effort the X axis. As objectively as possible, and by team discussion, write each number in the area of the graph that closely approximates the benefit and effort intersection.
Additional Lean Tools 5S Mistake Proofing Kaizen DMAIC
What is 5S? 5S
5S A process to create and maintain a well organized and efficient workplace. A systematic way to improve. Enables anyone to recognize out of control activities. 5S allows one to see the process.
5S Sort. Set in order. Shine. Standardize. Sustain.
5S Sort (Seiri). Separate necessary items from those not needed at the workplace.
5S Set in order (Seiton). Arrange necessary items so they can be found and used quickly and efficiently.
5S Shine (Seiso). Clean and establish a routine for maintaining the cleanliness and orderliness of the area.
5S Standardize (Seiketsu). Ensure procedures are in place so activities will be done the same way no matter who is performing the duties. Create a safe work environment.
5S Sustain (Shitsuki). Use visual tools to ensure organization and improvements are maintained.
5S Benefits Improve productivity. Eliminate non value added (NVA) activities. Instill a continuous improvement attitude and mindset. Lay a foundation for lean thinking.
Mistake Proofing. Poka Yoke
Mistake proofing. Poka Yoke
Literally. Kaizen
Kaizen Kaizen is a Japanese word for continuous improvement. It is a philosophy, not just a process. It most often is a series of ongoing improvements by teams focusing on eliminating all forms of waste from the operation.
Kaizen Will typically follow the DMAIC process but in a much more accelerated manner. Very action oriented. After preparation, the Kaizen event itself will usually be one week or less. Requires limited capital investment.
DMAIC DMAIC Process in Lean
Lean Deployment Find the motivation for improvement. Recognize the burning platform. Identify and assign resources. Teach the methodology. Prioritize activities. Establish ownership. Take baseline measurements. Manage the program.
Burning Platform Clearly understand, admit, and communicate why you as an organization need to undertake a continuous improvement program.
Identify and Assign Resources Appoint a Deployment Champion. Identify potential Lean Leaders. If necessary, select an outside partner to assist in deployment planning and training activities.
Total Involvement Show absolute commitment from the top. Assign Deployment Champion. Determine support needs (internal and external). Involve staff at every level. Look for opportunities for early successes.
Training Lean Fundamentals. Process and Value Stream Mapping. Lean Six Sigma Green Belt. Lean Six Sigma Black Belt.
Successful Deployment Commitment is critical! Managers must walk the walk as well as talk the talk! Celebrate success. And you will have success!
Lean Culture A lean culture creates a climate where every asset and every action adds value for the end customer.
Maturity Levels Lean Maturity Levels
Tom and Bentley s Lean Soapbox Lean is nothing more than organized common sense. Benefits far exceed any expenditures. Lack of work or needing to employ more people is no excuse for operating inefficiently. (Can always 5S the area). Lean deployment does not have to be an all or nothing proposition.
Additional Topics Variation and Six Sigma DMAIC Process in Lean Projects Process Cycle Time and Little s Law
Contact Us www.altexsolutionsgroup.com Tom Burkett, Chief Executive Officer Bentley Stires, Chief Operating Officer tom.burkett@altexsolutionsgroup.com bentley.stires@altexsolutionsgroup.com Telephone: (251) 504 4125 Telephone: (979) 220 2853
Additional Topics Variation and Six Sigma DMAIC Process in Lean Projects Process Cycle Time and Little s Law
Variation and Six Sigma Even though we use averages (mean) all the time when analyzing data, does it really tell us much? Let s consider two buckets of water one ice water; and one near boiling.
Variation Now think about putting one foot in each bucket. On the average we should feel pretty good. See why studying variation might be helpful.
Variation Managing an organization by means of the monthly financial report is like trying to drive a car by watching the yellow line in the rear view mirror. Myron Tribus, MIT
Variation Let s talk some about variation as it relates to lean thinking and quality. We re going to step very gently into the swimming pool of statistics. Not to worry. We will not venture into the deep end. For that, my apologies to the math geeks.
Variation Variation is how the data groups around the mean. Remember the old bell curve.
Variation
Types of Variation Common cause. Special cause.
Common Cause Variation Common cause variation is fluctuation caused by unknown factors resulting in a steady but random distribution of output around the average of the data. It is a measure of the process potential.
Common Cause Variation All data are normal! Or at least 95 percent. (trust me on this one). Fluctuations (variation from the mean) will occur randomly but predictably.
Special Cause Variation Special cause variation is a shift in output caused by a specific factor or process input parameters. It can be accounted for directly and potentially removed and is a measure of process control. Examples include material defects, operator training, machine break downs, etc. This is the variation we work to reduce.
Six Sigma Six Sigma (6 )
Six Sigma (6 ) Six Sigma concentrates on minimizing variation in the process (quality). Lean concentrates on moving the mean (speed).
Lean and Six Sigma
DMAIC DMAIC Process in Lean
Define Phase Purpose To reach a clear understanding between all affected parties sponsor, team leader, team members, and other stakeholders on the scope, goals, financial, and performance targets for the project. To present a compelling reason why the project should be undertaken.
Define Steps / Activities Identify the voice of the customer. Define gaps between actual performance and performance standards. Develop a clear understanding of the problem. Create a plan for addressing the project or lean event. Select a team.
Define Tools Project charter High level process map / SIPOC chart VOC analysis Written project plan including resource requirements, scope (very important), communication plan (RACI chart), expected results
Measure Phase Purpose To completely and thoroughly understand the current state of the process and collect reliable data on process speed, quality, and costs to use in uncovering the underlying problems in the process.
Measure Steps / Activities Create and validate value stream map Identify outputs, inputs, process variables Create a data collection plan including operational definitions Collect baseline data Articulate the process by updating the value stream map with accurate data Calculate process lead time (Little s Law)
Measure Tools Value Stream Map Operational Definitions Data Collection Plan Statistical Sampling Histograms Process Capability Analysis
Analyze Phase Purpose To accurately pinpoint the root causes affecting the key input and output variables throughout the process; and to study those cause and effect relationships.
Analyze Steps / Activities Identify customer value added (CVA), business value added (BVA), and non value added (NVA) steps in the process. Analyze the process flow to determine bottlenecks, constraints, and other Issues (defects, rework, maintenance issues, etc.) that inhibit flow.
Analyze Steps / Activities (cont.) Analyze the data collected in measure. Generate theories to explain potential causes. Narrow the search. Collect additional data to verify root causes. Prioritize root causes.
Analyze Tools Brainstorming Cause and Effect Analysis Fishbone Diagrams Takt Time Analysis Statistical Tools
Fishbone diagram. Analyze Tools
Takt Time Analyze Tools
Improve Phase Purpose To use the results of our work in the analyze phase to develop alternative solutions to the problem. Using lean tools we test and confirm the cause and effect relationships to create an optimal solution.
Improve Steps / Activities Develop potential solutions. Evaluate and optimize the best solutions. Create a future state map. Develop and run a pilot. Confirm project goals were met. Develop an implementation plan.
Improve Tools Solution Selection Matrix Value Stream Map (Future State) Takt Boards Statistical Charts and Graphs Kanban Poka Yoke
Control Phase Purpose To officially finalize project completion and hand off the newly improved process to process owner, with definitive and understandable procedures for maintaining the gains.
Control Steps / Activities Develop documentation to sustain full scale implementation. Launch the implementation with realistic transition plan. Develop mistake proofing (Poka Yoke) techniques. Develop triggers for future corrective action.
Control Steps / Activities (cont.) Create training plans. Develop standard operating procedures (SOP s). Develop control plans for process owner.
Control Tools Mistake Proofing (Poka Yoke) Standard Operating Procedures (SOP s) Process Control Plans Visual Process Control Tools (Charts and Graphs) Written Training Plans Team Feedback Session
Other examples? Control Tools
Process Cycle Time Little s Law Process cycle time (PCT) is a function of the number of units in work in process (WIP) and the rate at which those units exit the process (ER). PCT = WIP / ER
Process Cycle Time Ride at Disney World. WIP? Exit rate? PCT?
Contact Us www.altexsolutionsgroup.com Tom Burkett, Chief Executive Officer Bentley Stires, Chief Operating Officer tom.burkett@altexsolutionsgroup.com bentley.stires@altexsolutionsgroup.com Telephone: (251) 504 4125 Telephone: (979) 220 2853