Brend Brevé - Philips Industry Consulting

Lean Operations
Excellence

Lean Denken

Philips Industry Consulting Eindhoven
Brend Brevé, 24 May 2012

1 Industry Consulting
24 mei 2012, Brend Brevé

Lean Operations
Excellence

LEAN is Creating Flow without Disruptions


 Philips Industry Consulting Mei 2012, Page 1

How to Create Flow without Lean Operations
Excellence

Disruptions?

Through the Elimination
of WASTE

current state

future state


Lean Operations
The World is Full of Waste Excellence

€…$…£…



Lean Operations

Toyota’s Seven Wastes Excellence


Lean Operations
Lean Practical Meaning Excellence

LEAN
Focuses
Here !!

Value Added

95% Non Value Added 5%
Order Shipment
Total Lead Time to Customer



Lean Operations
Lean: Some Lessons Learned Excellence

Tools System Thinking

Cherry-picking tools is not
good; the tools comprise a
system

A way of thinking underlies
the tools and the system

The way of thinking and
acting must be transmitted
to people


Lean Operations
Excellence
True Lean

The secret to a successful lean implementation is
not to apply lean tools to convert a company, but to
teach a company how to see
the sources of waste and guide them
through a process to eliminate them



Lean Operations
Excellence
What are the Main Steps in Lean ?

 Specify value in the eyes of the customer

 Identify value stream; eliminate waste and variation

 Make value flow at pull of the customer

 Involve, align & empower employees

 Continuously improve knowledge
in pursuit of perfection


Lean Thinking Lean Operations
Excellence

STANDARD WORK THE WHOLE SYSTEM
describes how to hold the best is focused on identifying
normal operating conditions abnormal conditions

NORMAL ABNORMAL
CONDITION CONDITION
Challenge
Kaizen PROBLEM
SOLVING
improvement

IMPROVED STANDARD WORK



Lean Operations
Toyota’s Definition of Lean Excellence

Lean is:
performing continuous systematic problem
solving, standardization and kaizen,
in teams for the work they do,
in alignment with the goals and targets
of the company (one system – one voice)


Lean Tools
Lean Operations
Excellence
VSM A3

Heijunka Lean Tools are developed 5xWhy
to show either

Poka Yoke Kamishibai
NORMAL ABNORMAL
versus
CONDITION CONDITION

Conditions are defined by 5S, KanBan, Visual Control, etc.

SMED Challenge
PROBLEM SOLVING
Yamazumi
Kaizen (incorporating reference to standard,
5xWhy, root-cause identification &
countermeasure development)

Andon STANDARDIZATION
(= the record of success on how to hold normal operating conditions) Kanban

Jishuken Visual Management OPL



“Lean” vs True Lean Lean Operations
Excellence

Traditional Working Method Lean Working Method
responsible
Result focused Procedure focused
information information
do
 Problem Solving  Approve
 Method Selection

methods & procedures
set targets & goals
information & data

teach the system
Management Engineers

to achieve
tell

control
do communicate
Small number of people possess skills Large number of people possess
and they direct the shop floor people; skills; they are self-controlled,
People’s potential is not well utilised self-thinking and self-motivated

Lean Design Lean Operations
Excellence

Current-State Value Stream
1. Determine & Produce to your Takt Time
2. Determine your Finished Product Strategy
Implementation

After
3. For Every Connection between Processes determine 9-12mths
whether Continuous Flow can be applied
Future
4. For All Remaining Connections between Processes
State
determine whether FIFO (Sequential Pull) can be applied
should
5. If also FIFO control is not possible, implement a Super-
market Pull System between the remaining Processes
become
Current
6. Determine the Pacemaker / Scheduling Point
State
7. Determine the Interval - EPEI
8. Determine the Pitch & Build the Heijunka

Future-State Value Stream

…. It’s an Iterative Process ….


Lean Operations
Excellence
Lean Leadership

On average well over 60% of
lean transformations fail …
Why?

… because there is no consistent strong
passionate lean leadership!

Lean Leadership is the KEY ENABLER
for successful lean transformation and implementation


Lean Operations
Excellence

A Transition of Leadership is Required

From
To Lean
Classical
Leadership
Leadership
• top-down • bottom-up
• set objectives • engaging the
• tasks workforce
• time frames • teaching
• reward & • coaching
punishment • approval

The Commander, Chief, The Storyteller, Gardener,
& Systems Architect & Change Agent



Lean Operations
Excellence
Personality Characteristics
of a Lean Leader
The most important personality characteristics of a lean leader
are passion, discipline and humility:
 A lean leader is passionate about the ultimate goals of
lean and the operating system how to achieve them,
 A lean leader is highly self-disciplined to daily work to
reinforce the focus on standardization and continuous
problem solving every day,
 A lean leader is a humble person because it brings him in
the best position to ask questions, to challenge the
current state and to be open to new ways, new ideas and
improvements


Lean Operations
Excellence

The Key Qualities of Lean Leadership

A Lean Leader is:
 a visionary hands-on practitioner
 a role model
 a people-oriented person
 a teacher / coach
 an advocate for standard work and
structured problem solving



Lean Operations
Lean Leaders Create a Lean Culture Excellence

How do you want your Leaders to behave?
Traditional Leadership Lean Leadership
Short-term results focus Long-term focus on purpose
Get the product out (push) Market-in (flow & pull)
Local optimization (speed things up) Overall optimization (reduce waste)
Standards limit creativity Standards enable continuous improvement
Hide the problem Make the problem visible
We can’t afford to stop the process Stop and fix the problem
People as cost People as assets
A leader is a boss A leader is a teacher
Go to the online dashboard Go see for yourself on the gemba
Who’s to blame? Why? Why? Why? Why? Why?
Plan quickly, act slowly Plan slowly, act quickly
Experts & specialists solve problems Everybody solves problems


Build a Jishuken Room …. Lean Operations
Excellence



Lean Operations

Lean Basic Principles Excellence

Lean Implementation is People Process fully based on
a Continuous Process of Standardization and Kaizen

T/Ms continuously work
on improvements, focused
Notify & Fix; Pass on elimination of all muda
100% good Quality Kaizen
to the next process
JI J
DO people I
KA T

Standardization Supply the right part
in the right amount
Have a documented best at the right time
current way to the job


The Lean Process, a Continuous Balance between
Lean Operations
Excellence
Management and Shop Floor Focus & Activities

Shop Floor
Effort / Attention

M S

Management

Time


The Lean Process, a Continuous Balance between
Lean Operations
Excellence
Management and Shop Floor Focus & Activities

Focused on:
Shop Floor
 Changing the culture,
Effort / Attention

 Changing the management values,
 Embedding standard problem solving,
 Developing the kaizen mindset

Lean Operations
Excellence
Lean Thinking goes “Against the Grain”
of Traditional Mass Manufacturing

Management
Lean Operations

Lean Thinking goes “Against the Grain”
Excellence
Be Careful for Organization Backlash
of Traditional Mass Manufacturing Remedy:
• Lean experts

Manufacturing
• Change Management
• Large batches
• Strong Lean Leadership

Over 85
• Few change-over’s

of Mass

Inertia
Years
• Large inventories
• Push; line staff is not
supposed to think
Over 85

Time
Years
of Mass Philips Industry Consulting

Manufacturing
ALOE A/P 2011, Page 16

Inertia

Industry Consulting
Philips Industry Consulting

23
ALOE A/P 2011, Page 15


Lean Operations
Excellence
The Lean Process on the Shop Floor
 Create conditions under which group problem solving can
flourish; avoid a rush to kaizen

 Organize teams; set up team trainings; don’t push but teach

 Use the value stream map as vehicle for improvement

 Adapt management systems as a consequence of further
lean implementation:
 The appraisal and award system,
 The recruitment system, and
 The training and development system



Performance Improvement Lean Operations
Excellence

Everywhere on the
Shop Floor …. Do you have a No Create and Implement
good standard? a good standard

Yes

Make adherence to Are standards No
being followed? Follow the standard
standard visible

Yes

Are there big No
deviations from Kaizen
the standard?

Yes

Yes No
Problem Solve Is data available? Collect /improve Data


Lean Operations
Excellence

A Lean Process should be Metric Driven
Why are the Right Metrics important?

 What you measure is what you get
 Measurements drive people’s behavior

“Tell me how you measure me
and I will tell you how I will behave.”

E. M. Goldratt

 People need rapid and relevant feedback



Important Lean KPIs to Monitor Lean Operations
Excellence
the Lean Transformation Process
 Progress by-the-hour in  Percentage of value add
number of units  Number of standard work
 Percentage on-time deliveries revisions per period
per period  Number (& location) of
 Throughput time in hours Andon calls
 Number of hours/days of  Number of safety incidents
inventory in RM, WIP and FP per period
 OEE of the bottleneck  Number of completed A3
 Percentage first pass yield (problems, kaizens,
 Percentage of scrap improvement projects) per
 5S audit results and period
deployment score  Number of OPL’s per period
 Operational process  Deployment score of the
availability (not utilization) skill matrix
 Operator availability  EPEI interval


Lean Operations
Excellence
Visual Management
The application of any visual aid or
device that promotes safer, more
efficient, and less wasteful processes

The goal of using visual management is twofold:

To create "status at a glance”
enabling quick and simple detection
of abnormal operating conditions

To provide aids to help employees
to complete tasks more quickly and
in a more standardized approach



Lean Operations
Excellence



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