Lean innovation - Basic principles of Lean

LEAN innovation
Basic principles of Lean
@Joeri Vercammen

Introduction
Innovations in aeronautics! – J. Vaughan (Flickr)

“We are living in the age of creativity”
(1) Agriculture age – Farmers
(2) Industrial age – Factory workers
(3) Information age – Knowledge workers
(4) Conceptual age – Creators

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Consider unlocking creativity is
crucial to economic sustainability.
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http://www.adobe.com/aboutadobe/pressroom/pressreleases/201204/042312AdobeGlobalCreativityStudy.html

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Believe that they are living up to
their own creative potential.
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http://www.adobe.com/aboutadobe/pressroom/pressreleases/201204/042312AdobeGlobalCreativityStudy.html

Sunflower - MH Christen (Flickr)

Blue broken clock – A. Synaptic (Flickr)

Lean provides:
 the tools to release wasted time
 the insights of a structured process

Lean basics
Modern Times – CNN

Ford Model T:
Any colour you like, provided it is black.

1950 – 1980
Toyota changes its production process:
worker is process owner
avoid waste, low cost, high productivity
Toyota I

1950 – 1980
1980s
More Japanese cars than
American in the US
Toyota II

1950 – 1980
1980s
More Japanese cars than
American in the US
1990s
Womack & Jones
“The machine that changed
the world” Toyota III

Lean is ‘hot’
 Lean entrepreneur
 Lean startup
 Lean branding
 Lean UX
 Lean analytics
 Lean talking
 Lean service design
 Lean enterprise
 Lean design

“Lean is a philosophy with as goal
to increase productivity by systematic elimination of waste”
It starts with the visualization of a process.
In the broadest of sense, i.e.
manufacturing, service, administration, etc

1 Visualize the entire process
“Sample prep” “Analysis” “Data handling”
This is the value stream map

2 Measure
Turnaround time
Process time
Required time

2 Measure
Turnaround time
Process time
Required time
How long does the entire step take?
+ what’s the first time right ratio?

Turnaround time
Process time
Required time
How much time is spend on actions that
create true value for the customer?
2 Measure

2 Measure
Turnaround time
Process time
Required time
How much time is spend on actions that are
necessary but not create true value for the
customer, e.g. making reports, invoices, etc?

2 Measure

3 Remove all waste

3 Remove all waste
“Sample prep”
“Analysis”
“Data handling”

3 Remove all waste
75%
Typically, time reductions up to 75%
can be achieved by applying Lean principles.

The 7 wastes (+1)
Wasting time – Mr. Birnbaum (Flickr)

Remember Tim Woods?
Transport
Inventory
Motion
Waiting
Overproduction
Overprocessing
Defects
Skills

WASTE #1
Too much transport (product, information)
 Moving products to and from storage
 Transport between workstations
 Moving products and materials back and forth
 Picking up signatures

WASTE #2
Too much inventory
 Too much consumables, reagents, etc…
 Multiple locations
 Pending documents
 Open projects
 Unread emails
 Unused/useless data in DB

Unnecessary motion of people
 Not everything within range
 Looking in materials/documents
 Looking for materials/documents
5S
WASTE #3

WASTE #4
Waiting…
 For the previous process step
 For equipment to be ready/available
 For outpu/results (runtime)
 For approval
 For maintenance, (technical) assistance

WASTE #5
Overproduction
 Too much reagents, standards, etc…
 Too much samples
 Too much data
 Making reports that are never read
 Making an extra copy (endless cc-ing)

WASTE #6
Overprocessing
 Unnecessary re-analysis/calibrations
 Doublechecks
 Validation
 Over-complicated procedures
 Double documents

WASTE #7
Defects
 Instrument failures
 Retesting
 Variation
 Wrong data input
 Missing information
 No procedure

WASTE #8
Skills
 Underutilizing skills of people
 Lack of decent training
 Not using people’s creativity

Some Lean tools
Old tools – J.M. Rosell (Flickr)

Main sources of waste are:
 Waiting
 Overproduction & overprocessing leading to inventory
 Motion

FLOW & PULL
A simple way to address these wastes
(similar to the assembly line in a car manufacturing plant)

FLOW & PULL
A simple way to address these issues
= make sure that a product never stops from the
moment the production process is launched.

FLOW & PULL
A simple way to address these issues
= the subsequent process step signals when
ready to accept new product.

[The tools]
PDCA
5 Whys
One-piece flow
Kanban
Takt time
Line balancing
5S

Kaizen
Continuous improvement.
Kaizen is derived from two Japanese characters; kai, meaning ‘change’
and zen meaning ‘good’. It aims at continuously eliminating waste from
the value stream. Therefore, it applies the so-called PDCA cycle.

Plan
Do
Check
Act
What’s going?
What are the facts?
What could be done?

Plan
Do
Check
Act
What’s going?
What are the facts?
What could be done?
Put the plan into action.
Measure the result.

Plan
Do
Check
Act
What’s going?
What are the facts?
What could be done?
What happened? Measure the result.
Was it what was expected?
What should we do differently?

Plan
Do
Check
Measure the new process
Make sure change is permanent
Act
What’s going?
What are the facts?
What could be done?
What happened? Measure the result.
Was it what was expected?
What should we do differently?

5 Whys
Question-asking technique to determine the root cause of a defect.
Ask five subsequent questions in response to an observed defect.
The answer to each question forms the basis of the next question.
The last answer points to the process failure that needs to be addressed.

One-piece flow
Approach to prepare each product individually rather than in batch.
By working this way, turnaround times are reduced significantly and the
impact of errors on the process is less significant because only ‘one
piece’ is involved rather than a batch of pieces.

Assume a process that consists of three steps.
Each step takes one minute to complete.
This is what happens in function of variable batch size.

Batch size, # 1st sample, min All samples, min
10 21 30
5 11 20
2 5 14
1 3 12

10 21 30
5 11 20
2 5 14
1 3 12
! Faster turnaround !

10 21 30
5 11 20
2 5 14
1 3 12
! Faster troubleshooting !

Kanban
System that matches inventory with actual demand.
Kanban is a visual technique that applies cards to signal when new
product is required. It is true pull, since the trigger to start production
send to the previous step in the production cycle.

1 2
Kanban 1: Analysis ready, trigger sample prep
Kanban 2: Data handling ready, trigger analysis

t0: No production
1 2

2
1
t1: Kanban 2 triggers “Analysis” based on customer demand (= pull)

1
t2: Kanban 1 triggers “Sample prep” (= pull)
2

1 2
t3: Kanban 1 returns to “Analysis”

1 2
t4: Kanban 2 returns to “Data handling”, Kanban 1 triggers “Sample prep”

1 2
This process is continued until all “Data handling” is finished.

Takt time
Production time needed to meet customer demand (= pull).
If a customer needs 10 units per week for example, then the average time
to build a single unit must be 4 hours (= takt time). Production must be
(slightly) faster than takt time, so that it can meet customer demand
without over or under performing.
Available time
Required units
Takt =

In the previous slides is was assumed that
each process step takes the same amount of time.
In reality this is rarely the case.

More appropriate is, for example:
Sample prep: 120 min
Analysis: 60 min
Data handling: 30 min

120
60
30
Or graphically,

- Example 1 -
Demand: 10 samples in 3 days (= 21 h)
Takt = 2.1 h
120
60
30

Takt
120
60
30
- Example 1 -
Takt = 2.1 h

Takt
Overperforming
120
60
30
- Example 1 -
Takt = 2.1 h

Takt
- Example 2 -
Takt = 1.1 h
120
60
30

Overperforming
Takt
- Example 2 -
Takt = 1.1 h
120
60
30

Takt
- Example 2 -
Takt = 1.1 h
120
60
30
Underperforming

Line balancing
Leveling the workload in a value stream.
Lean balancing applies takt time calculations to remove bottlenecks
and excess capacity from a process.

Takt
Let’s return to Example 2
Takt = 1.1 h
120
60
30
Underperforming

Sample prep is the bottleneck
Takt
120
60
30
Underperforming

Possibilities?
Takt
120
60
30
Underperforming

Possibilities?
Map the value stream of the “Sample prep” process
Remove waste
Transfer workload to “Data handling”
Increase capacity
Takt
120
60
30
Underperforming

5S
A method to organize a clean & efficient workplace.
It involves a sustained hierarchical organization of all the tools and
products that are needed to get a job done.

Lean innovation - Basic principles of Lean

Summary
Thinking differently – M. Cardus (Flickr)

Lean provides a strategy to release time that is
otherwise inevitably lost in inefficient procedures.
It provides crucial insights into how things are done.
It is the ideal starting point
to provoke more effective innovation.

Lean innovation - Basic principles of Lean

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