LEAN Practices
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This document provides an overview of continuous improvement and lean principles and tools. It discusses key lean concepts like identifying value from the customer perspective, eliminating waste, and focusing on continuous incremental improvements. Specific lean tools covered include 5S, visual management, standard work, problem solving techniques like PDCA (Plan Do Check Act), and kaizen events for implementing small targeted improvements. The overall message is that lean is a journey of ongoing small changes to simplify work and remove non-value added activities in order to better meet customer needs.
LEAN Practices
- 1. Continuous Improvement Operations Mr. Sredharran Sampath
- 2. Lean Systems
- 3. SWOT Analysis: Identifying improvement strategies Strengths Opportunities Weaknesses Threats
- 4. What does your client know? Indicators • Information and assumptions effect choices. • How did you know? the best price? target market? Indicators: • Increased wages $11-$15 • Square & POS Systems • Millennials -Baby boomers • Health insurance costs • Local construction (bridge) Adaptation by A. Shapiro
- 5. What does your client know? Indicators
- 6. Definitions • Value - A capability provided to a customer at the right time at an appropriate price, as defined in each case by the customer. Features of the product or service, availability, cost and performance are dimensions of value. • Waste - Any activity that consumes resources but creates no value (waste). 6
- 8. Lean Is A Journey • The Journey never ends • Toyota estimates it is only 50% waste-free • Where can we begin? Where can we improve? 8
- 9. Quality Doesn’t happenby Accident, It has tobe Planned
- 10. Lean An introduction to Lean principles, methodology, tools and terminology
- 11. Agenda •Lean overview •Lean principles •Lean concepts and tools •Your role •Next steps 11
- 12. Learning Objectives • Start “thinking Lean” • Understand the Lean methodology of PDSA / PDCA • Basic knowledge on Lean tools for removing waste and enhancing customer value • Understand your Lean role • Begin to apply Lean in your work 12
- 13. What is Lean? • A time-tested method and set of tools to help us improve “how” we produce our products and services. • Lean is also a mindset, where we ask each day “How can we make our services better for customers?” 13
- 14. Lean helps us Understand: 1. What adds value to our customers 2. How work gets done 3. How we can identify root causes of problems 4. What an “ideal” process looks like 5. How we can improve performance 6. Whether process changes were successful 14
- 15. Lean is about Simplifying our Work • Eliminate tasks that do not add value • Make things easy and intuitive for customers and staff • Automate repetitive tasks • Leverage staff talent 15
- 16. MUDA (Waste) MURI (Strain / Over burden) MURA (Unevenness) Eliminating 3 M
- 17. MUDA Process-1 V W W W W Product Process-2 V Process-3 V Process-4 V Input V:Value added product/services W:Wasteful product / practices/services that does not add value MUDA is theWaste, work that does not add any value to the product Muda means wastefulness, uselessness and futility, which is contradicting value addition.
- 18. Muri is the overburden on equipment, facilities & people caused by mura and muda. This is in some respects on the opposite end of the spectrum of muda. Muri is pushing a machine or person beyond natural limits. Overburdening people results in safety and quality problems. Overburdening equipment causes breakdowns and defects MURI
- 20. Identifying MURI MURI =Physical Strain, Overbourden Placing of excessive demands on 🞮People 🞮M/Cs, Production equipment. Muri is caused by the respect of unsuited standards Bend to work? Push hard? Lift weight? Repeat tiring action? Wasteful walk?
- 22. How Do We Define Value-added? • Customer is willing to pay for it • Actually transforms a product or service • Done correctly the first time • Consumes resources without creating value for the customer • Low percent of the time work is complete and accurate • Requires extra time, effort, or resources Value-added vs. Non Value-added 22
- 23. Lean is About Removing “Waste” Value Added • Task time is typically 10% of total process time (lead time). • Less than 30% of the tasks in a process add value from the customer’s perspective Value Added Value Added 23
- 24. Value Addition - Example • Lead Time – Time interval between Placing or requesting an order and the delivery against it. • For example, you ask your IT department for a software installation by morning 8 am, IT says it will be done by the end of the day. • For instance, it gets installed by say 12.30 pm. • So Lead Time – 12.30pm – 8 am = 3.30 hours If one can assume 3.30 hours is the maximum or minimum time, then you decide to make it as a benchmark. Idea is to keep working on it, to reduce it further so that if one can do it / any one does it, it is the same. For example 3 hours if X does it or Y does it(includes any issues natural or man made).
- 25. Lean is NOT… • Not an acronym (LEAN) • Not a diet • Not a solution to personnel or performance issues • Not an initiative to reduce headcount – it’s about improving service • Not a silver bullet or quick fix • Not a replacement for Six Sigma – it is complementary • Not a “manufacturing thing” Lean does NOT require special expertise 25
- 26. Why Focus on Process? 26
- 27. Process Understanding • Segregate all your processes into two major areas 1. Non Academic(Admin, Operations, IT, Quality, Transport, Admissions, Facilities, HR, Finance, Accounts) 2. Academic Once the processes are segregated, functions wise you fix the respective Processes in each function with the functional staff. For each process, fix the process owner after all the staff in that function is aware of all the processes. (Easy for everyone to know the overall process, as well as owners will be responsible for the process they are the one’s to be accountable).
- 28. Example – Accounts Function • If it is Accounts – Accounts Receivable (owner1) • Accounts Payable(owner2) • Accounts Head – will explain both the owner 1 and owner 2 about the overall process in accounts and since the owners are aware of each process, one can substitute each other in the absence of the other. • Accounts Head will understand the process from the AAZ perspective and will be the POC(Point of Contact) between the AAZ and the Customer.
- 29. Why Lean? • 3M – Minnesota Mining & Manufacturing Company. 3M’s (innovative) population is getting older • Increasing customer expectations • Pressure for greater accountability and transparency • Tight and shrinking budgets • Shrinking workforce and increasing need for a more skilled workforce. Lean helps us improve quality, reduce costs, increase customer and employee satisfaction, & capture knowledge 29
- 30. • Continuous improvement originated in 1920s with Walter Shewart and Bell Laboratories • Early founders: Joseph Juran and W. Edwards Deming • Refined by and attributed to Toyota Motor Corporation in early 1960s (Toyota Production System) • Now successfully adopted across all organizations and sectors • Enterprise Lean (now MNCI) launched in 2007 History of Lean 30
- 31. Lean Principles Customer Focus Data driven decisions Respect Results Accountability Excellence 31
- 32. Principle 1: Customer Focus Accurate - What I want Cost Right price or resource investment Timely - When I want Accessible - How I want (Easy to use) Treatment - Feel my needs are understood and that I am treated fairly and with respect Effective - Service achieves desired results Better, faster, cheaper… 32
- 33. Principle 2: Data Driven Decisions • Verify anecdotes and feelings with data! • Complaints that a process doesn’t work or is too slow? • Gather data to confirm! • Difficulty deciding which solution will work best? • Test, make decision based on data! 33
- 34. Principle 3: Respect “A bad process will beat a good person every time” - W. Edwards Deming It’s about the Process 34
- 35. Principle 4: Results Set SMART goals and measure results • Specific • Measurable • Attainable (challenging, but within reach) • Relevant (aligned with your strategic priorities) • Time-bound Example: Reduce the time it takes to pack a meal box from <current time> to <target time> by <date>. 35
- 36. Principle 5: Accountability • Think and act in a manner needed to achieve results • Hold others responsible for following through on commitments • Communicate progress • Capture learning Project P D S A Results 1. Hiring G R G G 2. Contracts Y G 3. Permitting G 4. Safety R G R • Green = on schedule, • Yellow= slightly behind schedule • Red = significantly behind schedule 36
- 37. Principle 6: Excellence Incremental (local improvement) Systematic (evolutionary) Revolutionary (breakthrough) Improving what exists Distinctly different/better Radically new & different/better 37
- 38. Lean Concepts and Tools • PDSA / PDCA • 7 Wastes • 5S • Standard Work • Visual Management • Kaizen (Kaizen Event) • Problem solving 38
- 39. Logs to Lumber – Seamless Operations • https://www.youtube.com/watch?v=NvbgwdTGoyo
- 41. PDSA – The Methodology • Hold event • Implement Action Plan • Monitor progress and results – 30, 60, 90-day reviews • Define project (Project Charter) • Adopt/Adjust/ Abandon & sustain improvement Act Plan Do Study Following the PDSA methodology ensures knowledge creation and continuous improvement 41
- 42. 7 Wastes 1. Defects 2. Overproduction 3. Waiting 4. Non-utilized staff talent 5. Transportation 6. Inventory 7. Motion 8. Extra processing 42
- 43. 7 Wastes: Defects The effort involved in inspecting for and fixing defects (errors and mistakes). 43
- 44. 7 Wastes: Overproduction Producing more products or services than the customer needs or wants. 44
- 45. 7 Wastes: Waiting When people, parts, systems, or facilities wait for a prior step in the process to be completed. Waiting is typically 90% of process time. Goal is smooth and continuous flow between each process step 45
- 46. 7 Wastes: Non-utilized Talent Staff hired to do X and spending time on Y Don’t let your employees’ skills go to waste! Remove process barriers so that staff can do the work they were hired for and want to do! 46
- 47. 7 Wastes: Transportation Transportation of products, equipment, materials or people without adding value. 47
- 48. 7 Wastes: Inventory Unnecessary storage of materials. 48
- 49. 7 Wastes: Motion Movement of people that does not add value to a product or service and may create health and safety issues. 49
- 50. 7 Wastes: Extra Processing Producing a higher quality product or service than what is required by the customer, and using elaborate or expensive equipment when more simple options exist. JOB ROTATION 50
- 51. Improvement Strategies Eliminate non- value added tasks Combine tasks or functions Concurrent processing Co-locate work Shift roles and responsibilities Eliminate or reduce batching Automate Solve Problems Handoffs and batching are common barriers to process flow 51
- 52. 5S 1. Sort - Seiri 2. Set In Order - Seiton 3. Shine - Seiso 4. Standardize - Seiketsu 5. Sustain - Shitsuke 6th “S” for “Safety” A simple method for creating a clean, safe, orderly, high performance work environment. 52
- 53. Before 53
- 54. 1S – Sort - Seiri “When in doubt, move it out.” 54
- 55. 2S – Set in Order (Straighten) - Seiton “A place for everything, and everything in its place.” A visual management strategy! 55
- 56. 3S – Shine - Seiso “The best cleaning is to not need cleaning.” 56
- 57. “See and recognize what needs to be done.” 4S – Standardize - Seiketsu 57
- 58. 5S – Sustain - Shitsuke “Effective, ongoing application of 5S” The most difficult step! 58
- 59. After 59
- 60. 5S Tips • Keep it fun – consider friendly competition • Leverage teamwork • Take before and after photos • Rotate maintaining shared areas among staff • Provide positive reinforcements 60
- 61. Poka Yoke – Error Proofing 61
- 62. Visual Management A communication device that tells, at a glance, how work should be done. • Where items belong • How many items • Standard procedure • Work-in-process (WIP) There is only one place to put each item. 62
- 63. Kaizen A Kaizen Event is a facilitated, small-scope improvement activity that engages the creativity of employees to reduce waste in a work process. A Kaizen Event typically lasts 3-5 days. 63
- 64. KAIZEN – Japanese Productivity Magic • https://www.youtube.com/watch?v=fcBXtwGexNc
- 65. Standard Work The safest, highest quality, and most efficient way to perform a task or process. • Focuses on helping the employee be successful • Reduces variation and increases consistency • Improvements cannot be sustained without it “Where there is no standard, there can be no Kaizen.” Taiichi Ohno, Vice-President Toyota Motor Company 65
- 66. Small Changes in Every Process The Japanese concepts of change and improvement differ from Western ideas on these topics. In a Western firm, change typically refers to “radical” change. If a business process or a strategy is changed, we prefer to see a real difference compared to the original situation. A company turnaround or an entirely new strategy are considered significant changes. Small changes, such as moving a desk from one part of the room to another to improve communication between employees, or other similar activities, are not considered very influential on overall corporate success.
- 67. Small Changes in Every Process Even small changes, such as moving a desk, are considered important because the changes will improve the situation in the long run. Since Japan is a group-oriented society, any change, adaptation, or improvement must be discussed with a large number of people. Important decisions can never be made by just one person. However, group discussions often do not lead to radical ideas, as too many people are involved and too many viewpoints must be considered—the more people involved, the more mass oriented the decision becomes.
- 68. Small Changes in Every Process Radical changes such as drastic downsizing or adopting a strategy are very difficult to implement in a Japanese firm. Radical decisions are therefore very rare, and improvements in the Japanese workplace are often very subtle and would not be considered very significant from a Western perspective. Gemba Kaizen and Teian Kaizen
- 69. Kaizen Can Be Applied Anytime and Everywhere The first step to a kaizen-oriented enterprise is a corporate culture that motivates employees and rewards them for improving work and business processes. Kaizen is a process-oriented approach rather than a result oriented one. Kaizen is not just the task of a special group within a company; employees of all levels, from the CEO down, participate in kaizen activities. When the kaizen philosophy is applied, every single organizational member is responsible for the improvement processes. Another feature of kaizen is that every process, not only a manufacturing or a service process, can be improved, which means that kaizen can also be applied in nonmanagerial situations.
- 70. Genchi Genbutsu (Go and See) Genchi genbutsu, a Japanese term translated into English as “go and see for yourself,” has revolutionized Japanese firms and their business practices. This phrase enforces a simple but effective policy where employers immerse themselves in their company’s daily operations by experiencing a production site or business section for themselves. Genchi genbutsu is used to train young employees who are entering the company right after graduating from a university to let them experience the work and learn it from scratch. Many Japanese companies have a strong focus on stability and prefer their workforce to remain constant for many years, sometimes even a lifetime.
- 71. Problem Solving “If I were given one hour to save the world, I would spend 59 minutes defining the problem and one minute solving it.” - Albert Einstein 71
- 72. Problem Solving Defining the “wrong” problem wastes considerable time looking in the wrong direction for solution. Symptoms: You see it, people talk about it; it is visible! Root Cause: The one to address. It is often hidden. You need to find it! 72
- 73. 5 Whys – RCA(Root Cause Analysis) – Quality Tool • 5 Whys is a SIMPLE but POWERFUL technique for uncovering the root cause of a problem when you lack data regarding why the problem is occurring. • If we don’t solve problems at the level of the root cause, we risk the same problem resurfacing in the future. 73
- 74. 5 Why’s Origination • The 5 Whys method is part of the Toyota Production System and an essential approach to problem-solving. • Developed by Sakichi Toyoda, a Japanese inventor, and industrialist, the technique became an integral part of the Lean philosophy. • "The basis of Toyota’s scientific approach is to ask why five times whenever we find a problem … By repeating why five times, the nature of the problem as well as its solution becomes clear.“ Taiichi Ohno
- 75. 5 Why Example in a office The Problem: The office van will not start. Why #1: The battery is dead. Why #2: The alternator is not functioning. Why #3: The alternator belt has broken. Why #4: The alternator belt was well beyond its useful service life and not replaced. Why #5: The vehicle was not maintained according to the recommended service schedule. Why#6: Why the vehicle was not maintained as per the schedule. Why#7: The Transportation Supervisor was on leave. Why#8: What about the alternative. Why#9: We do not have an alternate to substitute supervisor. Solution is to appoint another spare resource to step in
- 76. Example 2 The Problem: A staff is failing their exam. Supervisor: (Why #1) Why is the staff failing their exam? Team Leader : Because he didn’t pass the test. Supervisor: (Why #2) Why didn’t he pass the test? Team Leader : Because she chose many common wrong answers. Supervisor: (Why #3) Why did he choose many common wrong answers? Team Leader : Because she’s trying to repeat a procedure without understanding it.
- 77. Example 2 Contd., Supervisor: (Why #4) Why is she only trying to repeat a procedure without understanding it? Team Leader : Because he doesn’t have conceptual understanding. Supervisor: (Why #5) Why doesn’t she have conceptual understanding? Team Leader : Because we didn’t have enough time so we skipped that section. Solution (ROOT CAUSE) : Either appoint a trainer who could specifically spend time on weak staff coaching / free the team leader from other responsibilities to spend more time coaching the weak staff.
- 78. Example 2 – Alternative Scenario Supervisor: (Why #4) Why is he only trying to repeat a procedure without understanding it? Team Leader : Because he doesn’t have conceptual understanding. Supervisor: (Why #5) Why doesn’t she have conceptual understanding? Team Leader : Because the staff had reported high level of absenteeism due to health reasons. Solution (ROOT CAUSE) : Either appoint a trainer who could specifically spend time on this staff coaching / provide additional time for the staff away from normal hours of work, so that the understanding is good for the staff.
- 79. In the Official scenario The Problem: The TEAM Fails To Deliver A Project On Time: Let’s dig deeper by asking five whys. 1. Why Didn’t They Deliver The Project On Time? • Because minor bugs in the computer system were not fixed until the deadline. 2. Why Were The Bugs Not Fixed On The Agreed Time? • Because the staff were still working on some newly added features, which they were not familiar with. 3. Why Were The staff Still Working On The Newly Added Features? • Because one of the new staff wasn’t aware of the standard procedures.
- 80. In the Official scenario The Problem: The TEAM Fails To Deliver A Project On Time: 4. Why Was The New Staff Unaware Of The Standard Procedures? • Because they were not initiated or trained properly. 5. Why Was He Not Initiated Or Trained Properly? • Because the Management believes that new staff do not require in- depth training. They believe that staff should be learning as they are working. • SOLUTION(ROOT CAUSE)From the above five whys example, it’s clear that the management boss should pay more attention to training new staff. Asking such five whys(even one million WHY’s) in any situation will yield solid answers.
- 81. To Create a Lean Culture… We need to move from viewing Lean as: Additional work or Project specific work How we do our work every day 81
- 82. Are You Challenging Yourself? If you don’t fall once in a while… you’re not trying hard enough to improve. A Good Organization learns when they fail, whereas a Great Organization learns even when they are doing successful 82
- 83. Managements’ Role • Model the way • Challenge the status quo • Set goals and performance targets • Align work and dedicate resources • Engage and empower staff • Remove barriers • Build a problem solving culture • Reward/Recognize high performers 83
- 84. Action You can Take • Try a tool you learned today! • 5S your desk, network drive, or common work area • Create standard work • Learn more about Lean practices and tools • Ask your customers what they want • Think about your goals and how to collect data to start measuring where you are now (so that you can show improvement!) 84