Lean-Dennis-summary-notes.ppt LEAN MANUFACTURINGx

Overview of ”Lean”
(JMD)
Notes (2011) are based on
”Lean Production Simplified”, 2nd ed.
by Pascal Dennis

Dennis Chapter 2
The LEAN Production System
• Look at the basic elements in Figure 2.4 (page 19) and
2.5 (page 20).
• Core goal is customer focus
• Muda = waste
– Actual work – adds value to the product
– Auxiliary work – supports the actual work
– Muda – activity that creates no value. Test: if you stopped
doing this, there would be no adverse effect on the
product.
– Types of Muda – motion, waiting, conveyance, correcting,
overprocessing, overproduction, inventory, knowledge
disconnection

LEAN
• Lean is about reducing muda. Overproduction is a most
serious waste that leads to the other wastes.
• Mura – unevenness or fluctuation of work, caused by
fluctuting production plans.
• The lean system seeks to reduce mura through heijunka or
production leveling
• Muri – means hard to do, caused by variations in production,
poor job design or ergonomics, poor part fit, inadequate tools
or jigs, unclear specifications, etc.
• See figure 2.8 (page 26) for relation. Think about a system for
the lego-production example. What could have worked
better?

Dennis Ch. 2 - Stability
• 5S and TPM are two keys to achieving production stability.
• 5S is a system of workplace organization and standardization whose goal is
to support visual management. Visual management means managing by
exceptions. Out-of-standard conditions should be immediately seen and
corrected.
• 5S leads to TPM. In Total Productive Maintenance - Production team
members are involved in basic maintenance activities.
• TPM targets the 6 big losses that afflict equipment.
• Machine Loss Pyramid – highlights importance of identifying hidden and
minor losses early on, by involving production team in checking &
improving equipment performance.

Visual Management
• Seeing as a group
• Knowing as a group
• Acting as a group
The 5S system is (page 31):
Sort – Set in order – Shine (and inspect) –
Standardize- Sustain

Dennis Ch3. -Total Productive
Maintenance (TPM)
• TPM represents a shift from ”I operate, you fix” to ”We are all
responsible for our equipment, our plan, and our future.” The
target is zero breakdowns.
• Figure 3.2 (page 40)
• Key measures – availability, performance efficiency, and
overall equipment effectiveness (OEE). Accurate data is
essential (MTBF, MTTR)
• 6 big losses (page 41) – breakdowns, setup delays, idling,
reduced speed, process defects and reduced yield.

The Machine Loss Pyramid
• Breakdown means function loss
• Minor stoppage means function reduction
• Minor failfure means substandard condition that causes
function loss
• Hidden failure means a condition that leads to minor failure
• See figure 3.4 (page 43). Breakdowns are the tip of the
iceberg. Prevention of the higher levels are done by
preventing failures at the lower levels.
• ”Minor anomalies” – fail to attract our attention. TPM is
looking for anomalies, and taking action before breakdown.

Dennis Ch4. - Standardized Work
The ”industrial engineering” assumptions:
1. There is a single best way
2. Workers are not involved in the designing of the work
or maing improvements
3. Standards are rarely changed
Old concept was to maximize the utilization of machines.
New concept is to maximize the utilization of people.
Lean system develops people-centered processes. The
measure of efficiencty is labor density.
Labor density = Work/Motion

Why standardized work?
1. Process stability – repeatability, meet targets every time.
2. Clear stop and start points for each process. Know the
pace of production, know if ahead or behind.
3. Organizational learning – knowledge in the organization,
not with the person only.
4. Audit and problem solving – can assess and identify
problems, checkpoints, easy to track
5. Employee involvement and poka-yoke – team members
develop standardized work
6. Kaizen – standardized work provides baseline against
which we measure improvement
7. Training- workers more easily respond to changes in
demand.

Elements of Standardized Work
• Takt time = how frequently we must produce a
product = Daily operating time/Required quantity
per day
• Takt time should sync with cycle time. Cycle time
= actual time it takes to do the process.
• Work sequence – what is the best way to do the
process? (posture, etc.)
• In-process stock – how much inventory should be
there? Requires to know work-in-process
standards per process.

Charts used to define standardized work
• Production capacity chart (page 55) – determine capacity of the
machines in process
• Standardized work combination table (page 56) – Shows work
elements, their sequence, time per each, operator and machine
time, interactions.
• Standardized work analysis chart (page 57) – Showes work layout,
process steps and times, critical quality, safety items, standardized
WIP stock.
• Job element sheets (JES)
– A job element is the minimum action or group of actions required to
advance a process
– JES are one-page that define: actions making up the job element,
rationale, photos of key points, revsion record.
• How to measure Time – breaking the process into elements. Noting
the start and stop time of each element. (p.58 – steps)

Overall Efficiency
• Efficiency = Output/Manpower
• Overall efficiency involves all the processes
• Some processes will be harder than others. The
challenges are: identify the bottlenecks, decide
how to exploit the bottlenecks, elevate the
bottlenecks by allowing the team members to
help each other.
• Identifying Kaizen (small improvement)
opportunities – use guidelines (p.62) for motion,
layout, grips. (Use of layout – cells, p. 63-65).

Elements of JIT Manufacturing
• Inventory reduction exposes problems
• Kanbans & pull production systems
• Small lots & quick setups
• Uniform plant loading
• Flexible resources
• Efficient facility layouts

Role of Inventory Reduction
• Inventory = Lead Time (less is better)
• Inventory hides problems

Number of Kanbans Required
N = number of containers
D = demand rate at the withdraw station
T = lead time from supply station
C = container size
S = safety stock
C
S
DT 

N

containers
kanban
4.4
25
10
(200)(.5)
C
S
DT
N
bottles
10
.5)
0.10(200)(
d)(T)
0.10(deman
S
container
per
bottles
25
C
hour
.5
minutes
30
T
hour
per
bottles
200
D
:
Solution












Computing the Number of Kanbans: an aspirin manufacturer has converted to JIT
manufacturing using kanban containers. They wish to determine the number of containers
at the bottle filling operation which fills at a rate of 200 per hour. Each container holds 25
bottles, it takes 30 minutes to receive more bottles, safety stock is 10% of demand during LT.

Small Lot Sizes & Quick Setups
• Small lots mean less average inventory and shorten
manufacturing lead time
• Small lots with shorter setup times increase flexibility
to respond to demand changes
• Strive for single digit setups- < 10 minutes
• Setup reduction process is well-documented
– External tasks- do as much preparation while present job
is still running
– Internal tasks- simplify, eliminate, shorten steps involved
with location, clamping, & adjustments

Uniform Plant Loading
• A “level” schedule is developed so that the same mix of products is made
every day in small quantities
• Leveling the schedule can have big impact along whole supply chain
Monday Tuesday Wednesday Thursday Friday
AAAAA BBBBB BBBBB DDDDD EEEEE
AAAAA BBBBB BBBBB CCCCC EEEEE
Monday Tuesday Wednesday Thursday Friday
AABBBB AABBBB AABBBB AABBBB AABBBB
CDEE CDEE CDEE CDEE CDEE
5 units
5 units
10 units
Weekly Production Required
Traditional Production Plan
JIT Plan with Level Scheduling
A
B
C
D
E
10 units
20 units

Flexible Resources
• Moveable, general purpose equipment:
– Portable equipment with plug in power/air
– E.g.: drills, lathes, printer-fax-copiers, etc.
– Capable of being setup to do many different things with
minimal setup time
• Multifunctional workers:
– Workers assume considerable responsibility
– Cross-trained to perform several different duties
– Trained to also be problem solvers

Effective Facility Layouts
• Workstations in close physical proximity to reduce
transport & movement
• Streamlined flow of material
• Often use:
– Cellular Manufacturing (instead of process focus)
– U-shaped lines: (allows material handler to quickly drop
off materials & pick up finished work)

Traditional Process Focused Layout
• Jumbled flows, long cycles, difficult to schedule

JIT Cellular Manufacturing
• Product focused cells, flexible equipment, high
visibility, easy to schedule, short cycles

JIT and TQM- Partners
• Build quality into all processes
• Focus on continuous improvement - Kaizen
• Quality at the source- sequential inspection
• Jidoka (authority to stop line)
• Poka-yoke (fail-safe all processes – device that allerts
operator that an error has occured.)
• Preventive maintenance- scheduled
• Work environment- everything in its place, a place
for everything

Respect for People: The Role of Employees
• Genuine and meaningful respect for associates
• Willingness to develop cross-functional skills
• Actively engage in problem-solving (quality circles)
• Everyone is empowered
• Everyone is responsible for quality: understand both internal
and external customer needs
• Associates gather performance data
• Team approaches used for problem-solving
• Decisions made from bottom-up
• Everyone is responsible for preventive maintenance

The Role of Management
• Responsible for culture of mutual trust
• Serve as coaches & facilitators
• Support culture with appropriate incentive
system including non-monetary
• Responsible for developing workers
• Provide multi-functional training
• Facilitate teamwork

Supplier Relationships and JIT
• Use single-source suppliers when possible
• Build long-term relationships
• Work together to certify processes
• Co-locate facilities to reduce transport if possible
• Stabilize delivery schedules
• Share cost & other information
• Early involvement during new product designs

Benefits of JIT
• Smaller inventories
• Shorter lead times
• Improved quality
• Reduced space requirements
• Lower production costs
• Increased productivity
• Greater flexibility

Implementing JIT
• Implementation needs a designated “Champion”
• Make quality improvements- all processes O-P
• Reorganize workplace
– Remove clutter & minimize storage
• Reduce setup times
• Reduce lot sizes & lead times
• Implement layout changes
– Cellular manufacturing & close proximity
• Switch to pull production
• Extend methods to suppliers

JIT in Services
• Most of the JIT concepts apply equally to Service
companies
• Cellular layouts, product focused, & flexible
employees shorten response times
• Service inventory, “paperwork”, should be
eliminated, simplified, examined for “waste”
• “Fail-safe” all processes from Orders-Payment
• Team based organizations

Summary of Ch 5
• TQM concepts incorporate JIT manufacturing
• Team based work systems, empowerment,
cross-functional flexibility, with appropriate
reward systems are all part of JIT.
• Most of the JIT concepts are equally applicable to
“Service Organizations.”
• JIT requires changes to be made in all functional areas
and examination of all processes for waste.

Jidoka – (from Dennis Chapter 6)
• Jidoka : “built in quality”
• The zero defect philosophy
• Autonomation
• Andon
• Pokayoke
• Maintenance system

Jidoka : “built in quality”
“ It refers to the ability of the production lines to be stopped in the
event of such problems as equipement malfunctions, quality problems or
work being late, either by machines which have the ability to sense
abnormalities or by workers who pusheda line-stop button. Preventing, in this
way, the passing of the defects, recoccurence prevetion becomes simpler as
abnormalities becomes more obvious, making it possible to “built in quality at
the production process”.
At the same time, since defects are prevented automatically, inspectors
become unnecessary, which in turn in significant labor savings.”

The zero defect philosophy :
- Stopping the process to built in quality
- Pokayoke, Andon, Problem solving...
- “Keep it simple...”
- Procedure and standards built for
operation...

Autonomation
 « Autonomation describes a feature of machine design to effect the
principle of jidoka used in the Toyota Production System (TPS) and Lean
manufacturing. It may be described as "intelligent automation" or
"automation with a human touch."[1] This type of automation
implements some supervisory functions rather than production
functions. At Toyota this usually means that if an abnormal situation
arises the machine stops and the worker will stop the production line.
Autonomation prevents the production of defective products, eliminates
overproduction and focuses attention on understanding the problem and
ensuring that it never recurs. It is a quality control process that applies
the following four principles:
 Detect the abnormality.
 Stop.
 Fix or correct the immediate condition.
 Investigate the root cause and install a countermeasure. »

Autonomation
This illustration shows how a limit switch stops Operation #10 when the transfer
conveyor has five pieces.

Andon
 « An electrical Board which lights up to show at a glance the current
state of the work operations. Andon boards allow speedy corrective
action to be taken by supervisors when a problem araises,
 Besides indicating abnormal situations sone Andon provide work
instructions (such as quality checks, change of cutting tools, and
conveyance of parts) and job progress information.”

Pokayoke
Examples of poka-yoke in consumer products include:
 Automatic transmissions: the inability to remove a car key from the ignition switch of an
automobile if the automatic transmission is not first put in the "Park" position, so that the
driver cannot leave the car in an unsafe parking condition where the wheels are not locked
against movement. (This is an example of ).
 3.5" floppy disks: the top-right corner is shaped in a certain way so that the disk cannot be
inserted upside-down.
 High-security padlocks: it is impossible to remove the key from some high-security padlocks
unless the shackle on the padlock is closed. Only by locking the padlock can the key be
removed. Security mistakes/accidents are therefore much less likely to occur, particularly
where the padlock key is kept on a chain attached to someone's belt. This is because the
design ensures that a key cannot easily be left in an unlocked padlock, or a padlock left
unlocked after opening it, or not fully closing the shackle of a padlock. Each of these three
scenarios would be dangerous in high-security scenarios such as military installations,
armories, prisons or bonded warehouses. In contrast, most standard-security padlocks do
allow a key to be removed from a padlock, regardless of whether the shackle is closed or not.

Examples of poka-yoke in consumer products include:
 UK 13 amp electric plugs: it is impossible to wrongly insert the plug into the socket,
due to its arrangement of three rectangular pins.
 Microwave ovens: a door switch automatically disconnects the activation button
when the door of the oven is opened. As a result, it is impossible to cook anything
in a microwave oven unless the door (which contains a Faraday cage to block
microwaves) is fully closed. If it were possible to activate an oven with the door
open, this would allow dangerous leakage of high intensity microwave radiation,
which would be very harmful to any living creatures in the immediate area.
 SIM (Subscriber Identity Module) cards: The SIM card used in cellular phones has
its upper left corner trimmed diagonally to guide the card correctly into position.
Pokayoke

JIDOKA video
http://www.youtube.com/watch?v=JSQ0WfY86k0

Chapter 8 – Hoshin Planning
(Dennis)
Strategic Planning - Strategic
Planning is focused on answering
the questions:
A. Who are we?
B. Where are we?
C. Where do we want to go?
D. When do we want to be there?
E. How do we get there?
• One of the keys to effective
planning that Hoshin attempts to
address is how to keep your plans
from ending up in a binder on the
shelf collecting dust. The picture
of the aligned arrows and arrows
in disarray on page 126 gives a
great visual of what effective
planning can do for an
organization. How do we
develop, communicate, and
implement strategic initiatives
with flexibility and buy-in
throughout the organization?
Most of us can probably think of
examples where the goals of top
management are not aligned with
the various departments and
activities.

Hoshin planning
• Five steps to becoming a
learning organization can
be tied to Hoshin
planning.
1. Personal Mastery
2. Mental Models
3. Shared Vision
4. Team Learning
5. Systems Thinking
• Key steps in Policy
Deployment of the Hoshin
Planning System are:
1. PDCA
2. Process cycles (Figure 8.6)
3. Catchball
4. Pacemaker (Control dept,
p.132)
5. A3 Thinking

PDCA
• PDCA refers to Deming’s Plan-Do-
Check-Act cycle. A simple
application to strategic
deployment might look like:
• Plan -Reduce average cycle time
by 10% during the year
• Do-Make the parts
• Check-Reduced cycle time by 8%.
Did not accomplish.
• Act-Continue team activities to
review and modify the process.
• Process refers to 3 concurrent
PDCA cycles. As analogy one can
visualize a series of shafts and
gears working in harmony.
• On the top level was a large
shaft spinning slowly. This shaft
represents the organization and
its long term plan. It contains the
vision for PQCDSM. (productivity,
quality, cost, delivery, safety,
morale)
• A series of gears connected the
top shaft to a series of parallel
shafts spinning at a faster rpm.
These shafts represented the
various divisions and their 1-year
plans for achieving PQCDSM.

PQCDSM
• Another series of gears connected
these to numerous smaller shafts on
the third level that represented the
day-to-day activities of the individual
departments and temporary teams
all trying to accomplish PQCDSM.
While some of them might be
temporarily inactive for various
reasons (teams that completed their
project), most of them are making a
humming sound spinning at very high
rpm’s as they focus on accomplishing
the 1-year plan that is being driven
by the long term plan. Lines of
communications between the three
shafts provide feedback to the higher
levels to adjust their focus if
necessary.
• Figure 8.6 on page 128 shows his
version in a flow chart form that
shows the closed-loop design of the 3
cycles interacting with each other.
• Dennis mentions Nemawashi, “to
prepare a tree for transplanting”
(p.130) This implies group consensus
about the plan of action, and is really
the outcome of the catchball process.

Catchball and Pacemakers
• Catchball is described on page
130 and is the
communications and give-and-
take back and forth within
management to gain
understanding and buy-in to
the objectives and goals. Have
you ever seen or heard a goal
from someone higher up that
you or other key people were
unaware of? Worse yet, have
you ever heard of one that key
people don’t agree with?
Obviously, these situations
aren’t conducive to high
performance.
• Pacemakers are departments
that align activities by leading
the process, making the
process visible, coordinating
solutions, and building
required management
systems. These can be
traditional departments such
as Engineering or positions
that many of us are unfamiliar
with such as Value Stream or
SQDC Managers (Safety,
Quality, Delivery, Cost). This is
the control department
concept, pp. 131-132.

A3 Thinking
• A3 Thinking combines scientific
methods with “telling the story”. It
can be used for planning, problem
solving, proposals and summarizing
current status of conditions.
Combining with the “Tools of
Quality” can increase the
effectiveness of the presentation.
Dennis discusses the benefits of
standardizing and shortening reports.
• Departmental scoreboards can
display departmental metrics and
summaries to drive their
performance. Visualizing their plan
and activities makes it is easy for staff
and management to get a feel for
what they are doing and verify their
alignment with top level activities.
• To make Hoshin Planning work, it is
important that managers do not
accept their leader’s Hoshin without
questioning. Leaders should not
attempt to deploy without verifying
their subordinates understanding and
support of the plan. Review of the
plans on a routine basis is critical to
their success. Dennis shared his
amazement the first time he was
informed that he had a bi-monthly 2
hr. Hoshin review scheduled with his
superior, Mr. Cho. Obviously, their
plans weren’t going to sit on the shelf
and collect dust. Hoshin follow
through can also be audited as part
of the PDCA check process.

Telling stories with A3 Thinking
Example of a Problem solving A3

Hoshin Planning - Tools
• The following is a summary from an
early book published in the states
(1989) on Hoshin Planning that
focused on various tools that could
be used to facilitate the Hoshin
process and organizational
performance. It is a slightly different
definition to Hoshin that we read in
Dennis.
• Similar to Maslow’s Hierarchy of
Needs, the Hoshin process developed
the Organizational Hierarchy of
Needs. Success requires moving
from the bottom level (5) to the top
(1).
1. One Vision
2. Alignment
3. Self-Diagnosis
4. Process Management
5. Target Focus Alone (leads to
misaligned operations)
• The steps in the Hoshin cycle include:
1. Vision (Hoshin generation)
2. 1 Yr Plan
3. Deployment (individual &
alignment) (Hoshin deployment)
4. Execution (process management)
(Hoshin implementation)
5. Monthly Diagnosis (Hoshin
evaluation)
6. Annual Diagnosis
• It is important to remember that this
is a cycle, so the diagnosis steps will
come prior to the vision and 1 year
planning steps as we repeat the
process.

Quality Tools
• It is important to remember that this
is a cycle, so the diagnosis steps will
come prior to the vision and 1 year
planning steps as we repeat the
process.
• There are 3 sets of tools to assist
with the process. They are:
– 7 Tools of Quality
– 7 Management Tools
– Alignment Tools.
• The “7 Tools of Quality” are designed
to perform analysis where
quantifiable data exists. Kaoru
Ishikawa is generally given credit for
advancing the 7 Tools of Quality in a
formalized problem solving discipline.
Of the 7 Tools, the Fishbone Chart to
assist with root cause analysis is the
only tool that he developed. Even
though there have been several tools
added to the arsenal of problem
solving tools, and sometimes the list
of “7 Tools“ slightly varies, some of
them are:
• 1. Check Sheet, 2. Scatter diagrams,
3. Histograms, 4. Pareto analysis, 5.
Process Flow Chart, 6. Fishbone
chart, 7. Control Chart

Managment Tools and Alignment Tools
The planning process often involves analysis of thoughts
and ideas that are not easily quantifiable. To assist
with this analysis are the 7 Management Tools. They
are:
• Affinity Diagram (KJ analysis) – Gathers large amounts
of data (thoughts) and organizes it into groupings
based on the natural relationship between each item.
• Interrelationship Diagraph – Explores and displays
interrelated factors involved in complex problems.
Shows the relationship between problems.
• Tree Diagram – Systematically maps out the full range
of tasks / methods needed to achieve a goal.
• Matrix Diagram – Displays the relationship between
necessary tasks and people or other tasks, often to
show the responsibility for the task.
• Matrix Data Analysis – Show the strength of the
relationship between variables that have been
statistically determined.
• Process Decision Program Chart (PDPC) – Maps out
every conceivable event that may occur when moving
from a problem statement to the possible solutions.
• Arrow Diagram – Used to plan the most appropriate
schedule for any task and to control if effectively
during its progress.
Another set of tools are called the “Alignment”
tools. Their purpose is to help align strategy
between functions (processes) and levels.
Among these are:
• Flag system – Shows how key actions
(means, policies) of each manager can be
aligned to support key directions (targets) of
the organization. Can be shown as a tree or
series of charts aligned sided by side.
• Target / Means - Shows the relationships
between targets and means to identify
control items and methods. Generally
formatted on tree or systems chart.
• Quality Function Deployment – Matrix that
translates customer requirements into
technical requirements at different stages of
product development and production. Often
referred to as the “House of Quality”.
• Proper use of these three sets of tools can
improve the development, alignment,
deployment, execution and diagnosis (Plan-
Do-Check-Act) of the organization’s strategic
and operational plans plan. You don’t have
to use all the tools all the time. Like golf, you
just need to know how different clubs can be
used, and determine which one will get the
job done.

Dennis (Ch 9) The Culture of Lean
&
Own summary on Quality Management
Systems

Toyota’s LEAN Culture
• Day-to-day behavior
– Plan-do-check-act (PDCA)
– Standardization
– Visual Management
– Teamwork
– Paradox
– Intensity
– The “do” (path) concept

Chapter 9 - The Culture of Lean Production
• During the book we reviewed
Dennis’s House of Lean. There can be
other Houses of Lean that are similar
but a little different in their
interpretation.
• Different people have different
interpretations of Lean. But there is a
robustness of Lean tools and systems
that fit different applications.
• According to the “House”, Stability
and Standardization are the
foundation. Just-in-Time and Jidoka
are the pillars. Involvement is the
Heart. All are focused on satisfying
the customer with quality, cost and
lead-time by continually eliminating
waste from the processes.
• Several of the Lean ideas seem to be
paradoxical in nature (pg 141) but if
you approach the system with
humility and open-mindedness you
too can enjoy a Lean journey!
• Lean success requires a certain
culture that not everyone is
accustomed to or comfortable with.
In Chapter 9, we see a summary of
keys to this culture including:
1. Human Resources issues and
questions.
2. Grasping the situation through
PDCA.
3. The “Warm Heart” Principle – Hard
on the problem, easy on the
people.
4. Standardization, visual controls and
Management as Theater.
5. Intensity.
6. Respect for people.
7. Continual improvement.

PDCA
• GTS – grasping the situation, big picture, key parts, what is-
should happen, trends, value-goal-related.
– Plan – 5Ws + 1H, measurement plan, visual system
– Do – contains its own PDCA cycle with pilot activities;
assessment of team capabilities, assess current condition.
– Check – metrics to check outcome (final score) and process
(along the way). Go see what is happening.
– Act – reflect on our condition, standardize when outcomes are
on-target, make countermeasures – when outcome or process
results are substandard. (stop bleeding or root cause)
• A manager’s job is to practice and teach PDCA, do it in the
day-to-day.
• Warm Heart Principle – Hard on problem, easy on people.

Standardization
• Standard – the best current method, but is meant to
continually change.
• Standards make out-of-standard conditions obvious.
• A problem is a deviation from a standard (gap).
Problem-solving funnel (p.151).
• Five Why’s (should get at root cause), which is
usually: inadequate standards, inadequate
adherence to standard, or inadequate system.

Visual Management
• Visual management triangle (p.31)
• Management as theatre – make problems
visible
– Line-side process reviews
– Safety or quality “auctions” presentation
(attendees can ask questions, give advice, offer to
help investigation)
– Current condition presentations
– Hoshin (strategic) planning presentations

Teamwork
• Safety first – core value, like productivity & quality
• Employment security – last choice
• Uniforms – same regardless of position
• No executive offices and no walls
• No executive dining rooms or parking
• Genchi genbutsu (Go see) – shop floor

Paradox
• Jidoka – Stop production so that production never has to
stop.
• Standards – change all the time.
• One-at-a-time production – is more effective than batch
production.
• Maximizing unit efficiencies – does not maximize overall
efficiency.
• Don’t make something - unless a customer has ordered it.
• Team members – not industrial engineers, develop
standardized work.
• Seek perfection – even though we know we will never
achieve it. (humility)

Intensity & “do” of the Lean Culture
• Intensity (more and greater demands)
– compels recognizing muda (waste) and kaizen (make
small improvements).
– Recognize strain
– Provide support and training
– Maintain intensity of improvement
• The “do” concept is a “path” or a “way”
– Humility
– Lifelong learning
– Respect for people

Exercise
• Give an example of where an organization, or you in
your personal life utilize PDCA cycle.
• Include an example of where activities are adjusted
using the “act” stage as a result of what was
discovered during the “check” stage.

Quality Management Systems
Operation
& control
of process
Good design
Consistent
method,
equipment,
materials
Satisfactory
instructions
Consistently Satisfied Customer
Voice of the customer
(marketing activities)
Voice of the process
(measurement activities)
Good Inputs - ingredients

How does Jamie make great food at all his
restaurants?
Westland Place
Old Street
20 New Change
Passage
Upper St Martin's
Covent Garden
Churchill Place,
Canary Wharf
More than 17
around the
London area

Quality Management System
• Jamie cannot run to each restaurant to make the food.
• He can: ensure consistency of output by design/use of
a system,
– make sure everyone uses it,
– periodically check the people are operating according to
the system (system audit) and the food-system still meets
the requirements (system review).
• A good QMS will meet:
– the customer requirements – to deliver the desired
product &
– the organization requirements – efficient utilization of
resources (material, HR, technology, information).

QMS design
• Four main areas of process-based QMS
– Management responsibility
– Resource management
– Product realization
– Measurement, analysis and improvement
• ISO9001:2000 – QMS process model
• ISO9000:2000 – family of standard
– Based on Eight principles: customer focus, leadership,
involvement, process approach, system approach to
management, continual improvement, factual
approach, mutually beneficial supplier relationships.

QMS – continuous improvement
• One person alone cannot document a QMS: the task is
the job of all who have responsibility for part of it.
• The quality system must be a practical working one –
that way it ensures that consistency of operation is
maintained and it may be used as a training aid.
• Operation of any process:
– No process without data collection (measurement)
– No data collection without analysis
– No analysis without decisions
– No decisions without actions (improvement)
• Good QMS: audit (check) & review (possible
improvements) leads to -> corrective action

Management responsibilities - the first of four
categories of the QMS
• Management Responsibilities
– Focus on customer needs,
– publish a quality policy,
– top management commits,
– written quality objectives
– define who are responsible,
– management review at intervals,
– Quality manual (has a cycle of review)
• See example: http://kvalitet.himolde.no/

The other three categories of the QMS
• Resource Management
– Human Resources – training (when, who)
• Product Realization - how processes influence/help meet product requirements
– Customer related processes – customer specified, fitness-for-purpose, customer
requirements, legal requirements
– Plan and control design and development of product. Concerned with stages,
interfaces, verification against input requirements, validation to needs of customer.
– Validation can come from 3rd party reviews, modelling and simulation studies, pilot
products (sales and reviews).
– Purchasing – supplier evaluations, supplier audits
– Production and service delivery processes – suitable instructions, suitable
installations, monitoring, inspection, testing actives, etc.
– Post-delivery services – monitor, calibrate, maintain, handle & store, measuring and
inspecting. Concerns with accuracy and precision.
• Measurement, analysis and improvement
– Measuring and monitoring – internal audit (1.plan and schedule activities, 2. assign
trained independent of those being audited, 3. assure consistent basis for
conducting audits is defined)
– Control of non-conforming products
– Analysis of data
– Improvement

Lean-Dennis-summary-notes.ppt LEAN MANUFACTURINGx

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