Lean Management

Definition of lean

Lean techniques are the systematic identification and elimination of waste

Lean tools used

Genchi genbutsu Japanese name

Go and see yourself

Poka yoke

Mistake proofing

Lean benefit

 Lower production costs

 Fewer personnel
 Quicer product development
 Highere quality
 Higher profitability
 Greater system flexibility

5 areas that drive a lean producer

 Cost
 Quality
 Delivery
 Safety
 Morale

Applicable in any system any industry

 Techniques for analyzing systems

 Identifiying and reducing waste
 Focusing on the customer

Lean implementation differs due to

 Differences in industries
 Differences in internal culture
 Differences in internal business consideration

Implementation of lean tools depend on wheter a company is

  A discrete manufacture
 A continuous producer
 A provider of service

The goal of lean is elimination of waste from the system

Six sigmwa goal is variation reduction

Theory of constrain is managing constrain

Lean approach

Identifiying value => value stream => flow => pull system => perfection

Six sigma approach

DMAI define => measure => analyze => improve => control

Theory of constraints approach

Identify constraints => exploit them => subordinate processes => elevate constraints => repetat cycle

Lean focus => flow focused

Six sigma focus => problem focused

Theory of constraint => systmen constraints

Result

Lean => reduced flow or cycle time

Six sigma => uniform flow output with little or no variation

Theory of constraint => Fast throughput

Lean Pionners

Jidoka automation with human touch

More value added work

Techniques Toyota production system

Pull system

Muda

Quick dies changes

Flexible job assignment

Removing non value added work

Kanban methods

U shaped cell

One piece flow

Production levelling

Toyota production system

Faster design

More realiability
Competitive cost

Operation excellence

TPS house is the most recognizable symbols in modern manufacturing

House has a strucktural system

Strong house has strong roof, pillar and the foundation

TPS house

Best qualitu – lowest cost – shortest lead time – best safery – high morale

Through shortening the production flow by eliminating waste

Just in time

Jidoka
To build TPS

Benchmarked competition

Today & tomorrow

Pull system

Kanban

Just in time

Jidoka

Kaizen

PDCA cycle

Toyota way

Long term philosophy

Right process will produce right results

Add value to the organization by developing your people & partners

Continuously solving root problems drives organizational learnings

Long term philosophy

Principle 1 : base you management decisions on long term philosophy, even at expense of short
term financial goals

Right process will produce right results

Principle 2: create continuous process flow to bring problems to surface

Principle 3 : use pull system to avoid overe production

Principle 4 : level out the workload ( heijunka)

Principle 5: build a culture of stopping to fix problems, to get quality right the first time

Principle 6: standardize task are the foundation for continuous improvement and employee
emprowerment

Principle 7: use visual control so no problems are hidden

Principle 8: use only reliable, thoroughly tested technology that serves your people and processes
Add value to the organization by developing your people & partners

Principle 9: grow leaders who thoroughly understand the work, live the philosophy and teach it to
other

Principle 10: develop exceptional people and teams who follow your company philosophy

Principle 11: respect your extended network of partners and suppliers by challenging them and
helping them improve

Continuously solving root problems drives organizational learnings

Principle 12: go and see for yourself to thoroughly understand the situation ( genchi genbutsu

Principle 13: make decision slowly by consensus, thoroughly considering all option ; implement
decision rapidly

Principle 14: become a learning organization through relentless reflection and continuous
improvemn ( kaisen)

Poka yoke

Japanese term for mistake proofing

Method used to prevent errors

Concept of poka yoke was formalaized and the term adopted by Shigeo shingo as part of Toyota
Production system

Why poka yoke

Defect occur when mistakes are allowed to reach the customer

Design the process to defects at sources

Can you elemminate errors completely ? NO

Minimize them

Especially if you are dealing with human insustry

Lower error to reach customer

When poka yoke

In your six sigma project

Used in improve phase before implementing pilot

Used in control phase before implementi action

Poka yoke is also implemented in the define od measure phases

Poka yoke is stand alone tool

Eroor free process

Example poka yoke

Value

Value stream

Individual preception of usefulness of the given product or service

Necessity of the given product of service

Value stream a series of activites

Receive ordere => design => produce > deliver product services

Waste are explicit and hidden along this values stream

3 main components

Flow of material

Transformantion raw material into finished product / services

Flow of information

Lean enterprise organization

An organization that effectively uses lean thinking

Applies lean tools to reduce waste

Offer value to its customers

Achieving a lean enterprise requires changes in

Attietues

Procedures

Process

Systems
Steps to apply lean to value stream

 Produce the value stream map

 Analyze all inventory notes
o Storage space
o Quality of raw material
o Delyed design changes
o Money invested in inventory
o Undected quality problems
 Analyze entire value stream
 Determine how the flow driven
o Strive for full
o Extend value stream map to supplies
o Look for the flow of information , knowledge, money, material

Value stream map

A value stream map is a lean technique used to document analyze and improve the flow of
information or materials required to produce a product or service for the customer

Identify and eliminate waste  review the flow of process steps and information from origin to
delivery => syste of symbols to depict various work activities and information flow

Process map is the work that should idealy happen on the floor

Value stream map is the work that actually happens on the floor

Non value added work => action that should be eliminated

Essential non value added work=> wastefull action but essential under currenct operationg
procedure

Value added work => action that add value to the customer

Value added time/ total time = process cycle effiency

Icon
Identify start and end point

Document the process

Is a workplace organization method that can help improve the efficiency and management of
operation

Stands for:

Sort ( Seiri)

Set in order (Seiton)

Shine (seiso)

Standardize (Seiketsu)

Sustain (Shitsuke)

A process is impacted by its environment

Ability of emplyees to process change is also impacted by its environment

Improvement in the work area is helpful for controlling the process

Easy access to tools , material,

Sort : remove unneeded items

Individual tend to collect items that are needed or not needed at all

These item make it less efficient to search for needed items

First step

Sorting through the items as required

Cleaning up the work area

Never used items are to be discarded immediately

Set in order arrange required items for ease of accessibility

Items that are required more often are placed in designated and marked locations

A place for everthing and every thing in its place

Rarely required items can be kept out of the way

Shine cleaning the work area & Equipment

Many quality issues are uncovered throught effective cleaning of the work area

Manufacturing example

Cleaning of inspection surface plates

Cleaning of equipment work table

Cleaning of floor

Service industry example

Correct files are updated in correct location

Version control of files

Data collected from various srources is updated in a common location such as

shared drives or shares point

Standardize

Involves developing checklist, standard and work instructions to keep the work area
in an orderly condition
 Sustain

Most difficult sequence

Sustaining efforts & continuing them require:

Support from management

Empowerment of employees

Management should ensure the time is well spent & willing to invest in time

5s Improves productivity, overall efficiency & reduces accidents

Empower employees by allowing then to take ownership

Waste

Japanese term for waste is muda

A process step is denied as value added if

Customer recognizes the value

Is willing to pay for the process step

The process step changes or transforms the product

It is done right the first time

The customer is not willing to pay for those activities that do not change or transform the product or
service; these activities are termed as “ non value added activities
8 catagories of waste

Defect

Over production

Waiting

Not-utilized skills

Transportation

Inventory

Motion

Exvess processing

Defect

Reject that require additional time, resources and money to fix

Also called as rework

Cause of defect in manufacture

Poor equipment maintenance

Poor quality system

Poor training / work instruction

Poor product design

Causes of defects in a service industry are

Employees not calibrated

Poor training / work instruction

Poor quality management

Over production

Making more than is needed or making earlier that is need by the next process

Exvessive work in progress is an indicator

All WIP should be continuously scrutinized

Example

More information is bein requested then needed

Efforts not aligned with risk, complexity or customer needs

Waiting

Waiting results in waste of

Customer time

Resources

Demoralization of personnel

Some quick solution to improve this waste

Reducing the set up time

Maintaining the production plants

Cross training of personel

Carefully plan & execute scheduling

Non utilized skill

Also termed as lost creativity

Reason for this waste

Standar organization structure

Union and management divide

Example

Significant portion of expert time wasted on low value activites

Lack of team work

Lack of training

Narrowly defined jobs and expectations

Transfer/ transformation

In service industry

Improper planning in business processes

Transaction has to go through multiple hand off approval

Additional example

Excessive bank and fort, repeated follow ups

movement from location to location

inventory

proper strategy is to synchronize production to increase with actual demand

additional examples

bottleneck leading to staging areas for work in progress

idle or under utulized equipment

motion

cause are

poor workplace layout

awkward positioning of supplies & equipment

results in

ergonomic problems

waste of time

reduce quality level

when indetifiyng waste of motion, look for

inefficient placement of office resources

physical distance between workstation

excss processing

often difficult to recognize

example

informatin entered in the system is also physically filed

Downtime

Defects

Overproduction

Waiting

Non utilized skills

Transfer

Inventory

Motion
Excess processing

JIDOKA

Jidoka is defined as automation with a human elemnt

Jidoka is one of the two pillars of Toyota production system

Prerequisite

Need method to detect defects when they occur and

Automatically stop production

So human can fix the problem

Your equipment / system need to be endowed with intelligence to stop itself when it has a problem

Preventing quality prblems => is much more effective & less costly  than inspecting repairing
quality probles after a defect has occurred

Just in Time

JIT

Is a set of principles, tools, techniques that allow a company to pproduce & deliver product in small
quantities with short lead times to meet specific customer demands

JIT delivers the right items at the right time in the right amount

Allow you to be responsive

Is one of the pillar Toyota production sytem (TPS

Most business use processes that are filled with waste

This work in process

Must be stored & tracked and

Maintained untul needed by the downstream process

Lead to waste of many resources

Deliver the right items at the right time in the right amout

Eliminates the need for the inventory

Can be used for manufacturing as well as service industry

When your business process has a no of sub processes

When there are a number of hand off

Whe the raw material go though a number of departements

Help ensure that any type of any amount of waste is effectively eliminated

Just in time

Step 1 create a sginaling system in the downstream process

Step 2 when the downstream process reach safety stock levels, a message then cascade back to the
upstream process

Step 3

The signal authoreizes the upstream processes to produce & provide the required material or
services needed

This creates a pull which continues cascading backwards to the beginning of the production cycle

Taiichi ohno creator of sut in time

Taiichi ono inspired supermarket to incorporate just in time in Toyota

Kaizen

Continuous improvement

Kai change

Zen for the better

Involve every employee int the organization

Individual are encouraged to regualry recommend improvement to the process

Why kaizen

Teache skill to

Work effectively in small groups

Solve problems

Document n improve processes

Collect & analyze data

Self manage in a peer group

Pushes decision making down to workers

Helps ther organ drive a continuous process improvement culture in your organisation

When use

Contious activity

Base on making little changes on a regular basis

Process oriented

By identified in lean project

Generally low hanging fruit

Point to rember

Is not simply turned on or off at the first sign of a proble

Continuous gradual improvement can only bring compounding effect

Kaizen is not a search of breakthroughs and quantum leaps but for incremental improvements

History

After World war 2

Toyota quality revolution

Production process

Plan do check Act

Masaaki imai – kaizen

Japanese organizational theorist & management consultant

Book

Kaizen Japanese spirit of improvement

Genba kaizen common sense low cost approach to management

Founded the kaizen institute consulting group

Adopted

Its simplicity in implementation

Kaizen benefit

Focus on continuous improvement

Helps improve the organization culture

Hels improve cross functional collaboration

Provide opportunities for team member to demonstrate leadership

Employees begin to understand and organizational priorities

Encourage problem solving berhavior in your team

Genchi gebutsu

Go & see yourself

Key principle of leans as well as Toyota production system

Suggest that in order to truly understand a situation one needs to go to gemba or the real place
where work happens

Why

You cannot be sure you really understand any part of business problem unless you go and see for
yourself first hand

It is not appropriate to take anything for granted or to rely on the reports of others

What you see first hand would not who up in written reports and table of number

Table and numbers may measure results , but they do not reveal the details od the actual process
being followed everday

When

Anytime

Part of project or standalone by manager run operation effectively

Taiichi ohno trained his engineeris use genchi genbutsu

The power of deep observation

Think for themselves to question analyze and and evaluate

It is important to truly understand the context of what is going on

What tou want to do is verify the on the scene facts of the situation