1. U. Albany MBA Program
11.15.12
Ayub “Jake” Salik
BE, MBA

2. OBJECTIVES
• Define lean, explain its goal, key principles and techniques
• Gain understanding of some lean techniques to improving
the performance effectiveness of people and machines
• Industrial application of Lean manufacturing
• Share lessons from a Lean journey

3.  Guest Speaker: Ayub Jake Salik
◦ Who am I & What I do ?
 Lean Background and Basics
◦ Definition of Lean
◦ History of Lean
◦ Value and Waste
 Lean Drivers and Tools
◦ What Drives Lean Transformation?
◦ What Tools Are Used?
 Class Activity
 Making It Happen
◦ Requirements for Success
◦ Industry Examples
 Case Study
 Q&A
3

4.  Guest Speaker: Ayub Jake Salik
◦ Who am I & What I do ?
 Lean Background and Basics
◦ Definition of Lean
◦ History of Lean
◦ Value and Waste
 Lean Drivers and Tools
◦ What Drives Lean Transformation?
◦ What Tools Are Used?
 Class Activity
 Making It Happen
◦ Requirements for Success
◦ Industry Examples
 Case Study
 Q&A
4

5. Education:
 University at Albany, New York.
◦ Post - MBA, (Change) Management (Second Graduate Elective Track
Certificate) - 2011
 University at Albany, New York.
◦ MBA (Information Technology Management) 2008
 2008 Graduate Academic Achievement Award Recipient. (Evening MBA)
 University of Engineering and Technology, Lahore, Pakistan.
◦ B. Sc. Petroleum Engineering 1993 (Gold Medalist)
 Government College University, Lahore, Pakistan
 F. Sc.
 University of Cambridge , UK
 GCSE

6. Current Positions
 Strategic Planning / Project Manager (CAPEX) at Callanan Industries Inc. NY
 Self Employed Consultant – Glass Industry – Client: Strategic Materials Inc. TX
Past Positions:
 Change Agent – Oldcastle Materials Group (OMG) Performance System (OPS) -
Operations at Oldcastle Materials
 Project Manager at Callanan Industries Inc. ( A Oldcastle Materials Company /
Owned by CRH plc, Ireland)
 Corporate Quality Control Manager - Strategic Materials Inc. – US Region.
 Plant Manager – Strategic Materials Inc , Albany NY.
 Assistant Distribution Engineer - Sui Northern Gas Pipelines Limited - Pakistan
 Reservoir Engineer - Petcon Fekete Pvt. Limited (Branch of Fekete Associates Inc.-
Canada)
 Management Intern - Bank of America , Union bank.
 Engineering Intern - Schlumberger Flopetrol, Mari Gas Company .

7. My Lean Experience
3 + MONTHS LEAN SYSTEM PROJECTS
2- 5 DAYS LEAN SYSTEM WORKSHOPS /
TRAININGS / LEAN BOOT CAMPS
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10.  Guest Speaker: Ayub Jake Salik
◦ Who am I & What I do ?
 Lean Background and Basics
◦ Definition of Lean
◦ History of Lean
◦ Value and Waste
 Lean Drivers and Tools
◦ What Drives Lean Transformation?
◦ What Tools Are Used?
 Class Activity
 Making It Happen
◦ Requirements for Success
◦ Industry Examples
 Case Study
 Q&A
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11. What is
your definition of a
Lean System?
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12.  “Lean” system focus is to minimize
sources of loss: variability, waste,
inefficiencies & process inflexibility
Non-
 Lean provides a way to do more and
more with less and less while coming
Value-Added
closer and closer to providing Activities
customers with exactly what they want
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13.  Lean was born in the U.S.A.
◦ Time & Motion Studies (1900s)
◦ Ford production system established (1913)
 Lean was first practiced in Japan
◦ Dr. Deming’s management system is studied (1950s)
◦ Toyota Production System (revealed in 1973)
◦ Software – and more
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14.  Lean has spread worldwide
◦ World-class Lean performers develop in the U.S.A.
(1990s)
◦ Lean increasingly integrated into corporate strategies
◦ Manufacturing
◦ Education
◦ Banking /Finance
◦ Health
◦ Restaurant
◦ Telemarketing
◦ Retail
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15.  Streamlining processes
 Elimination of Muda (waste)
 Produce quality product
 Cost reduction
 Use technology
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16.  A measurement of the worth of a product, or service, by a
customer based on it’s usefulness in satisfying a
customer need
 An activity, process or operation that
changes the product from one form to
another in order to get it closer to the
customer’s specifications
 It is something that the customer is
willing to pay for
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17.  Any activity that adds costs
or time but does not add
value
 Consuming more resources
(time, money, space, etc.)
than are necessary to
produce the goods, or
services, that the customer
wants
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18. Types Of Waste
Over production People’s skills
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19.  1. Overproduction: To produce sooner faster or in greater quantities
then required demand
 2. Inventory: Raw material , WIP or finished product that has tied capital
to it.
 3. Wait: Equipment, part or people that wait for a work cycle to be
completed.
 4. Motion: Unnecessary movement of any resources in a process
(people, part or machine)
 5. Transportation: Any unnecessary movement of product, part or
people between or within a process.
 6. Rework: Performing work or service again due to defects.
 7. Over processing: Processing beyond customer requirement.
 8. People’s skill: Underutilizing people skills - not taking advantage of
the available intellect.

21. • Poor layout.
• Long setup time.
• Poor workplace organization.
• Poor equipment maintenance.
• Inadequate training. Any of
• Use of improper methods. these
• Statistically incapable processes.
• Not following procedures. looks
• Instructions or information unclear. familiar?
• Poor planning.
• Supplier quality problems.
• Inaccurate gauges.
• Poor work environment (for example, light,
heat, humidity, cleanliness and clutter).

22.  Guest Speaker: Ayub Jake Salik
◦ Who am I & What I do ?
 Lean Background and Basics
◦ Definition of Lean
◦ History of Lean
◦ Value and Waste
 Lean Drivers and Tools
◦ What Drives Lean Transformation?
◦ What Tools Are Used?
 Class Activity
 Making It Happen
◦ Requirements for Success
◦ Industry Examples
 Case Study
 Q&A
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23.  Pressure to improve operational performance
 Competitive advantage in price and service
 Customers demanding shorter order cycle time
 Customers demanding reduced prices
 Corporate objective to reduce inventory
 Pressure to improve return-on-invested-capital
 Improve product quality
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24. Business systems
Performance
indicators
People
Business Quality
flows Process
Cost
Material Waste
Delivery
Information Variability
Inflexibility
Sources of loss
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26.  A Value Stream Map (VSM) is an end-to-end view of all
activities in a product or service flow
 Enables visualization of any process
 Identifies waste in each
step of the process
 This is simply a
drawing that makes the
flow of material and
information visible.
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28. 1. Define customer value
2. Create a “current state” map
• “Walk” the process to identify tasks and flows
• Gather data on resources, time, quality for each
3. Analyze map to determine opportunities for improvement
• Identify value-added and waste
• Brainstorm actions to eliminate waste and add value
4. Create “future-state” map to visualize the desired state
5. Create action plans to move towards future-state

29.  Helps visualize interactions and flows
 Shows linkages between information and product flows
 Provides a common language for talking about a process
 • Helps to identify:
 The constraint(s) - any resource whose capacity is less than
customer demand;
 Wastes as well as their sources

30.  Line Balancing: balancing capability with demand
 Identifies areas of excess capacity and bottlenecks
3.5
3
2.5
2
1.5
1
0.5
0
Loading Trucking Stage 1 Stage 2 Stage 3 Final Shipping
Capacity Rate (K tons/hour) Demand Rate (K tons/hour)
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31. Ask “why?” until you get to the bottom of the problem
1. Why has the
2. Why did the
machine 3. Why wasn’t
overload
stopped? there enough 4. Why doesn’t the
fuse blow?
oil? oil pump work
properly? 5. Why is
the strainer
blocked?
The overload
fuse has blown There was not
enough oil on The oil pump
the shaft doesn’t pump Because the oil
strainer is blocked No preventive
enough oil because
with metal filings maintenance or
shaft was worn
weekly cleaning
performed
• Fixing the root cause may take more time in the short term, but the investment will pay off quickly
as the problem never recurs

32.  OEE tells how effectively a piece of equipment is
utilized, and reveals opportunities to reduce waste.
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33.  Actual time to complete one
cycle of an operation; or to
complete a function, job, or task
from start to finish
 Can be used to establish the capacity of a selected
piece of equipment in a specific set of circumstances
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34.  A quantitative measure of how one worker conducts a
Definition job over a period of time
 Each wrench time is for one person over a period of
time
How it  Actions are placed into three categories by analyst:
works ◦ Value-added
◦ Incidental
◦ Waste
How to  Shadow one worker for an extended period of time
conduct  Categorize his actions into one of the three categories
 Analyze each category as a percentage of total time
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35. 35

36.  Focuses on effective workplace organization and
standardization that allows people to easily spot
variation from standard operating conditions
• Sort
o Keep only what you need in your area
• Stabilize (Set in order)
o A place for everything and everything on its place
• Shine
o Regular cleaning and maintenance
• Standardize
o Develop system (rules to maintain what has been done)
• Sustain
o Maintaining what has been accomplished
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37.  Guest Speaker: Ayub Jake Salik
◦ Who am I & What I do ?
 Lean Background and Basics
◦ Definition of Lean
◦ History of Lean
◦ Value and Waste
 Lean Drivers and Tools
◦ What Drives Lean Transformation?
◦ What Tools Are Used?
 Class Activity
 Making It Happen
◦ Requirements for Success
◦ Industry Examples
 Case Study
 Q&A
37

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43. 43

44.  Create a lean culture
 Map the value stream.
 Improve organization of the work environment.
 Implement appropriate Lean techniques and pilot Lean approaches.
 Prove results and look for new opportunities.
 Balance long-term strategy and short-term results.
 Go to the next level ……..

45.  Top Management Commitment
 Significant Culture Change
 Business Disruption Mitigation
 Customer Delivery Performance Maintenance
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46. Product
Returns
Information
Inquiries
Customer
Complaints
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47.  Daily Operations
◦ Line Balancing
 Decision-Making
◦ Credit Processing
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48. 48

49.  Boeing Everett
◦ Eliminated the use of 350 cubic feet of cardboard and bubble wrap packing
material per 747 wing panel set
◦ Reduced chemical usage per airplane by 11.6 percent
 General Electric Peebles, Ohio Facility
◦ Found ways to reduce its greenhouse gas emissions by implementing Lean
methods
◦ Reduced fuel consumption for GE90 engine testing from 20,000 gallons to 10,000
gallons.
 General Motors
◦ Kanban Implementation:
 Saved 17 tons per year in air emissions
 Eliminated 258 tons per year of solid waste
 Apollo Hardwoods Company
◦ Uses fewer trees and less energy to produce the same amount of product
 Baxter Healthcare Corporation
◦ Using the VSMs, the team developed an implementation plan that will save
170,000 gallons of water per day and over $17,000 over three months
Source: www.epa.gov
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50.  Guest Speaker: Ayub Jake Salik
◦ Who am I & What I do ?
 Lean Background and Basics
◦ Definition of Lean
◦ History of Lean
◦ Value and Waste
 Lean Drivers and Tools
◦ What Drives Lean Transformation?
◦ What Tools Are Used?
 Class Activity
 Making It Happen
◦ Requirements for Success
◦ Industry Examples
 Case Study
 Q&A
50

51.  Lean Background and Basics
◦ Definition of Lean
◦ History of Lean
◦ Value and Waste
 Lean Drivers and Tools
◦ What Drives Lean Transformation?
◦ What Tools Are Used?
 Class Activity
 Making It Happen
◦ Requirements for Success
◦ Industry Examples
 Case Study
Lean Transformation 51