Ten x intro to lean overview
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Christopher Wood has over 26 years of experience helping companies implement Lean principles across multiple industries. He discusses the origins and key thinkers behind Lean, and defines Lean as a time-based philosophy focused on eliminating waste to create value for customers. The presentation reviews the five laws of process thinking, including defining value and value streams, the activities in any process, and the need for continuous flow. It provides examples of how Lean has helped companies significantly reduce costs, lead times, defects and inventory while improving productivity, quality and space utilization.
Ten x intro to lean overview
- 1. Introduction to Lean Thinking Christopher Wood chris@tenxv.com chris@tenxv.com (509) 220 4990
- 2. Chris@tenxv.com 30 different industries Has worked with over 35 different companies Has worked in 28 states And 5 different countries From New start-ups to 100 year old firms Small family businesses to Fortune 500 companies Old Brown field sites to New Green field plant start-ups And from the shop floor to the boardroom From dirt clods to clean rooms 26 years of Experience
- 3. Primary Materials – metals, plastics & wood Solar Energy Start Ups Utilities Medical Devices Biotech Contract Manufacturing Forestry & Agriculture Financial Services Bakeries Automotive Construction Equipment Food Processing Consumer Electronics Defense & Aerospace Electronics Aerospace Structures Telco Equipment . Interior Fixtures & Furnishings Lighting System Mfg. 26 years of Experience Multiple Industries
- 4. 26 years of Experience Boeing Commercial Airplane Alcoa BF Goodrich Aircraft Sensors Honeywell Aircraft Equipment Johnson & Johnson’s BioSense Webster Iomega Purcell Systems PV Power GreenVolts Mackay Ecolite Novation Cyrus O’Leary Pies Washington Trust Bank Sample of Clients
- 5. Today Presentation The purpose of todays presentation • Learn the Principles of Lean Thinking • Understand the 5 of the laws of Process Thinking • How People are key • Problem solving is a method that is necessary
- 6. Why Bother with Lean? Why bother with the Lean Thinking? • Customer response times improve • Costs are reduced • Errors and defects are eliminated • Competitive advantages are created
- 7. Industry Week’s Best Plants winners and finalist from 1998 to 2002 results • Average productivity up 30% per year • Operational availability of equipment better > 95% • Though put time of an order reduced by 70% • Reduced Work In Process Inventory from 10 days to 2 days, a 80% reduction Reason To Believe Real Numbers
- 8. So what is Lean ? • A time based business philosophy (model) − Customer focus − Flow is key - think value streams − Eye on eliminating waste − A management system of people, process thinking and problem solving − Endless journey of continuous improvement • Best known as the Toyota Production System (TPS)
- 9. Origins of Lean Kiichiro & Eiji Toyoda
- 10. The Masters of Lean Taichi Ohno
- 11. Spirit of Improvement • Challenge: – Keep costs low – Keep quality high • Requires: – A new way of thinking and a new spirit of improvement – Training in methods of reducing waste – Leadership at all levels – Implementation builds skill • Theory is worthless unless it can be applied • We must put the principles into practice to understand them • Improvements can be made at little or no cost Principles of Lean
- 12. Creating a Common Language TheFacts How do we get to a common place, the intersection?
- 13. Defining Value 1. Any activity that changes the fit, form, or function of a product or service. 2. Something a customer is willing to pay for it. 1st Law of Process Thinking
- 14. Defining a Value Stream A sequence of operations that transforms the fit form or function of a product or service. Three high level types of Value Streams: 1. Process and Product Development / Design 2. Transformation / processing 3. Logistics Value Stream
- 15. Another View of Value Necessary Activity “Less is More” Mistake proof Setup Reduction Simplify, Standardize, & Sustain Unnecessary Activity Stop doing it Today! Eliminate! Process Improvement focus Non-Value- Added Activity Value Creating Activity Creating Value
- 16. 1. Processing (VA) - when the fit, form or function of the product or data changes. 2. Inspecting (NVA) - verifying, checking, inspecting and auditing the product or data – a comparison to a standard. 3. Transporting (NVA) - when the product or data changes location. 4. Storing (NVA) - any time when transformation, inspection, or transportation is not happening. 2nd Law of Process Thinking Activities of Any Process
- 17. Every activity requires these basics components – the “4M’s” 1. Team Members: perform the work and activities of the value stream. 2. Materials: parts, data, off-loaded work, ….. 3. Machinery: equipment, facilities, tools, computers, jigs, fixtures, …… 4. Methods: product design, inspection, processing, daily management and infrastructure, includes software. 3rd Law of Process Thinking
- 18. How do we create value in service processes? Data = Materials • Data = a point in time, describing reality Data + Questions = Information • Questions = Methods • Methods = Knowledge • Knowledge = Intellectual property Information = Value ($) How do we create value ?
- 19. We Must Define Waste Better
- 20. Many Different Tools Waste Elimination
- 21. “The key to eliminating waste is to create flow” Taichi Ohno 4th Law of Process Thinking “Without flow, all there is… is too much complexity” Chris Wood
- 22. Continuous Flow . . . Means Steady Velocity Traditional batch production: meandering stream with many stagnant pools and eddys Lean production: pipeline with fast-flowing product
- 23. Objectives for Every Value Stream • Correct specification of value • Elimination of wasteful tasks • Flow where you can • Pull where you can’t • Manage toward perfection Value Stream Objectives
- 24. 8 Steps of Continuous Flow 1. Collect data and analyze work flow. 2. Design process sequence. 3. Minimize the distance between machinery. 4. Produce and move one piece at a time. 5. Produce at the rate of customer’s consumption. 6. Balance operations and standardize work in the cell. 7. Train personnel to operate multiple operations. 8. Separate people from machines.
- 25. 4 Stages of CF Stage 1 Production in Specialized Departments Stage 2 Production in Product Cell Stage 3 Production in Compact Cell with One-Piece Flow Stage 4 Production in Compact Cell with One-Piece Flow and Separation Man/Machine
- 26. How to move to Stage 2? Getting Alignment – Process Walk
- 27. Stage 2 Which of the 8 steps were completed? Stage 2 Production in Product Cell
- 28. 8 Steps of Continuous Flow 1. Collect data and analyze work flow. 2. Design process sequence. 3. Minimize the distance between machinery Which of the 8 steps were completed in Stage 2?
- 29. Stage 2 Process walk after a Kaizen Workshop
- 30. BeforeStage 2 Before Kaizen Workshop
- 31. Produce at the rate of customer’s consumption. Determine customer demand by calculating Takt Time (Available time/required product) (420min/day)/210units/day= 2 min/unit 5th Law of Process Thinking Key to material and capacity planning
- 32. A3 Thinking – Scientific Method of Problem Solving, the PDCA Cycle 32 A Complex Case Study • Aerospace manufacture – Electronic and wiring fabrication/assembly – 2,500 employees, two locations – Products/services • Aircraft electrical wiring • Flight deck electronics • Electrical bay racks/shelves • Cabin management/IFE systems – Sales: $1 billion
- 33. A3 Thinking – Scientific Method of Problem Solving, the PDCA Cycle 33 Sample of Work
- 34. A3 Thinking – Scientific Method of Problem Solving, the PDCA Cycle 34 A Complex Case Study • Commercial Aircraft Power Panels – Six power panels – 2’ x 3’ enclosure – 3,000 to 4,000 wires each – 100 to 200 connectors with standards – Completely custom/unique – Engineering defined 10 days before build
- 35. A3 Thinking – Scientific Method of Problem Solving, the PDCA Cycle 35 Departmental Layout
- 36. A3 Thinking – Scientific Method of Problem Solving, the PDCA Cycle 36 Stage 2 Product Family Layout
- 37. A3 Thinking – Scientific Method of Problem Solving, the PDCA Cycle 37 Stage 2- Cell Design
- 38. A3 Thinking – Scientific Method of Problem Solving, the PDCA Cycle 38 Stage 3 -Moving Line Layout
- 39. A3 Thinking – Scientific Method of Problem Solving, the PDCA Cycle 39 Results Using Lean Production Flow Time WIP Inventory Floor Space Before 21 Days 5 Ship Sets 5,499 Sq. Ft. After 8 Days 1.4 Ship Sets 2,691 Sq. Ft. Change 62% less Time 72% less WIP 51% less Space Power Cells Production Flow Time WIP Inventory Floor Space Flight Deck Production Flow Time WIP Inventory Floor Space APO 3 23 Days 5 Ship Sets 5,694 Sq. Ft. 7 Days 1 Ship Set 3,024 Sq. Ft. 70% less Time 80% less WIP 46% less Space 7 Days 3 Ship Sets 2,400 Sq. Ft. 3 Days 1 Ship Set 1,800 Sq. Ft. 57% less Time 67% less WIP 25% less Space A Complex Case Study
- 40. A3 Thinking – Scientific Method of Problem Solving, the PDCA Cycle 40 Recommended Strategy: Model Value Stream Lean Enterprise Lean Awareness and Education • Quick look • Lean education • Lean Enterprise model Lean Strategy • Analysis/Assessment • Alignment/Vision • Implementation Planning Model VS Implementation • 90-day project • Learning by doing • Example of lean Systems Resolution • Global issue resolution • KE approach • Project approach Cell-by-Cell Transition • Strategic sequence • Area by area • Focused effort KEs KEs 5S Launch 40 Road Map to Lean Enterprise
- 41. A3 Thinking – Scientific Method of Problem Solving, the PDCA Cycle 41 People • How we manage creates the culture we want • We need to manage so that we have a culture of learning fast how to do things right Skill (how to) Desire (want to) Knowledge (what to do) Deep Learning Cycle = the right culture
- 42. A3 Thinking – Scientific Method of Problem Solving, the PDCA Cycle 42 People • In the book The 5th Discipline, Peter Senge outlines what it takes to build a learning organization. • He states there are 5 key elements: 1. Shared Vision 2. Team Learning 3. Mental Models 4. Personal Mastery 5. Systems Thinking Creating a learning organization
- 43. A3 Thinking – Scientific Method of Problem Solving, the PDCA Cycle 43 Principles and People Learning Organization and TPS fit hand and hand: 1. Philosophy • Shared Vision • Mental Models 2. Process Thinking • Systems Thinking 3. People • Personal Mastery 4. Problem Solving • Team Learning
- 44. A3 Thinking – Scientific Method of Problem Solving, the PDCA Cycle 44 A3 Thinking Why aren’t we more effective in our companies? – Communications issues – No common language or definitions within the organization – Lack of use of facts & data – Leadership does not truly understand their responsibilities We Lack a systematic way to solve problems! The A3 problem solving method provides concrete structure to create a tremendously capable workforce.
- 45. A3 Thinking Heading Plan Do Check Act/ Adjust Footnotes Plan Do Check Adjust (Act) A3 Sheet of Paper (11”x17”) A3 Thinking = PDCA Problem Solving A Scientific Method
- 46. A3 Thinking
- 47. An A3 is a PDCA Story Board Always the four steps of Plan, Do, Check & Act Not a form, not even a standardized format Adjusted for the type of story being told, from quality problems to company strategy No exact or specific look It Tells a Story
- 48. A3 Thinking – Scientific Method of Problem Solving, the PDCA Cycle 48 A3 Thinking Benefits A3 Thinking Benefits 1. Logical thinking process 2. Objectivity 3. Results and process 4. Synthesis, distillation & visualization 5. Alignment 6. Coherence within and consistency across 7. Systems viewpoint
- 49. One Final Thought Spirit Ground rules 3P Hoshin Policy Deployment Scientific method – PDCA 1.Collect data and analyze work flow. PQ analysis Process walk Value stream mapping 2.Design process sequence. Process flow chart Value streams A3 problem solving 4M’s 3.Minimize the distance between machinery. 5S Cell layout & design Visual controls 4.Produce and move one piece at a time. Setup reduction Pull system SWIP POUS Kanban Poke yoke Six sigma 5.Produce at the rate of customer’s consumption. Takt time calculation Level loading Heijunka Plan for Every Part TPM 6.Balance operations and standardize work in the cell. Standard work combination sheet Standard work layout sheets Time observation studies Line balance chart 7.Train personnel to operate multiple processes. Cross-training Skills analysis matrix TWI – JI, JM, JR 8.Separate people from machines. Chaku-chaku Autonomation/Judoka Andons Right-sized machines