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The purpose of this session is to provide you with a high level overview and sense of importance of what Lean is and how it can be applied to your organization. We will also help you identify waste in your processes and give you a flavor of some tools that will help to eliminate that waste, making your processes more efficient and effective.
Welcome to Core Lean Tools – Tools your company can’t do without!
The purpose of this session is to provide you with a high level overview and sense of importance of what Lean is and how it can be applied to your organization. We will also help you identify waste in your processes and give you a flavor of some tools that will help to eliminate that waste, making your processes more efficient and effective. The session will take approximately 15 minutes.
Purpose of Lean: Eliminate all waste and non value-added activity from a process It is based on meeting customer requirements efficiently and effectively, with products and services being provided at the pull of the customer, based on their demand, not by pushing the goods and services to them and hoping or thinking that they will buy them. Lean focuses on: Reducing Process Complexity Reducing Process Cycle Time (increased speed of execution) Simply put it is “Give the customer what they want (and no more!), when they want it (not too soon or too late), and don’t waste anything! As we go through the following slides you will see some tools that will help us do this.
First we will start with key terms. Notice that these reflect the customers’ viewpoint. Waste is any activity that does not add value to the final service or product from the customers’ viewpoint. Value-added activities change the form, fit or function of the product or service. The customer wants the change, is willing to pay for it and would complain if they didn’t receive it. It is also done right the first time. If not, there is waste in rework. Non-value added activities do not change the form, fit or function of the product or service. The customer wouldn’t be willing to pay for it if they knew that it was being performed. If you quit doing the step, the customer (either internal or external) wouldn’t complain, they may not even notice! For example, a report that no one needs any more but no one has said to stop producing it. Business value-added activities are those that the customer really doesn’t want to pay for, but if you didn’t do it, you could get into trouble! These include keeping appropriate records and filing reports to meet regulatory requirements. Also, it may be steps required by current technology. The focus of Lean is on eliminating those activities in a process that the customer doesn’t value.
Those activities have been divided into what we call 8 wastes of Lean A handy acronym to remember them by is – OMIT What U DO! Examples of these Types of Waste include: 1. Overproduction: Doing more than is needed, preparing extra reports, reports not acted upon, sending emails to “reply all” when only one person needs to see the reply. For example, we may make 15 copies of a report for a meeting when only 10 are expected in the meeting - “just in case” we might need it. These are 3 dangerous words that you need to watch out for. When you think them, you should be asking yourself “is this waste”? 2. Motion: Extra steps, extra data entry, searching files (computer and paper) – do you expect your customer to “understand” when you have to go “find” something? 3. Inventory: Transactions not processed, forms in file cabinets – is this for those “just in case” situations? 4. Transportation: Conveyance of materials or information, distance traveled 5. Waiting: This is the biggest waste for most organizations. Waiting for permission to act, waiting for information, signatures, waiting for batched work to come in - what do you wait for? 6. Underutilized Resources: People doing unchallenging work 7. Defects: Incorrect data entry, revisions, changes due to missing customer requirements 8. Over-processing: The Sign-offs and hand-offs – are they all required? Providing quicker service than customer needs – this often initiates a bottleneck for the customer! Does making that change on a cover page make a substantial difference or is it waste? Sometimes we call this one “shining the canon ball” – do we really need to be performing these tasks? Let’s look at some tools that can be used to eliminate or significantly reduce these wastes.
This diagram provides an illustration of various Lean tools and techniques. We will highlight a couple of them today In our Lean workshops we go over several of these in detail so that you can put them to good use. Which ones you use depends on the type of waste that you have in your processes. Most of them can be used in both service and manufacturing organizations.
A Rapid Improvement Event (also often referred to as a Kaizen Event – Kaizen meaning continuous incremental improvement) provides a mechanism for making radical changes to current processes and activities within very short timescales, usually 3 to 5 days. How an RIE differs from other improvement efforts is that the improvement is usually made during the Event.
Rapid Improvement Events Rapid improvement events involve considerable coordination and management both prior and during the event. Intense preparation improves the outcome – the better you prepare the better your results 8-Week Cycle There are generally 3 stages to a Rapid Improvement Event. In the preparation stage, we plan what we are going to do in the RIE – when it is going to happen, who is involved – (usually 7 to 10 people on the team ), what areas will be impacted. We develop a scope of the project, the current situation, and the goals that we want to achieve. And we get the right people on board. Generally this takes an hour a week for the group for the 3 weeks prior to the Event. During the 4 th week, the Event is conducted. Each day of the event is well-planned and improvement to the area and its processes is made during the 3 to 5 days. It is the intent to finish everything within the Event time frame. Follow-up is performed to ensure that improvements have been made and are continuing to be made. And to tweak the process where required.
Another Lean tool is Value Stream Mapping. It’s usually the first RIE conducted because it helps all those involved to see the entire process. To create a value stream map, the team “walks” the process and gathers input from those who are performing the work to identify the value added and non-value steps in the value stream. The mapping is done with the help of flowcharts that depict the flow of goods or information from one end to another. The input helps to pinpoint the waste and inconsistencies that are occurring in the process. The result is a visualization of the process, the problems associated with it, and the time it takes to complete the process. The flowchart also helps in understanding the complexity of a business process, which needs to be simplified for increasing efficiency. A plan is then developed to eliminate the non-value added steps or waste and reduce the cycle time. Generally there are two maps that are drawn – a current state and a future state. The one you see here was done by a team using sticky notes and butcher paper, identifying the steps in the process and information about each step. This is an example of a hiring process for a government organization. Value added time was 36 minutes, out of the total time of 84.7 days to hire a person.
A Proposed or Future State Value Stream Map should be constructed after improvements have been identified through input and discussions. This identifies ways to streamline processes and then validate after the proposed improvement results are known. Each step is dissected to discover ways that would streamline and optimize the whole business process. Based on the results of the analysis and discussions, a future state map is developed that reflects the end result of applying Lean tools and techniques to enhance the effectiveness of the process. The maps with sticky notes engage the team members in each step of the mapping process. Everyone can see it and add to it. There is also software that can be used to present the information using specific icons to highlight trouble areas, time allocations, and improvements required and made as illustrated in the lower left corner.
5S is a systematic method for organizing and standardizing the workplace. It is a simple and practical Lean tool which focuses on organizing work space to eliminate clutter (waste) and helps workers to optimize their work flow, resolve space needs, and provide a high-performance workplace. It’s one of the simplest Lean tools to implement, provides immediate return on investment, crosses all industry boundaries, and is applicable to every function within an organization. Because of these attributes, it’s usually our first recommendation for a company implementing Lean. 5S e nables anyone to quickly distinguish (30 sec rule) between normal and abnormal conditions. It forms the foundation for continuous improvement, zero defects, cost reduction and a safe work area. The 5Ss are Sort: Distinguish needed items from unneeded - eliminate the clutter Set in Order - Organize & label, set boundaries & limits, keep needed items in correct place to allow for easy retrieval Shine - Keep workplace orderly and clean Standardize - Standardize cleanup - keep maintenance checklists; make them visual! Sustain - Maintain discipline through systems and a supportive culture
Visual Controls are communication devices used in the work environment that tell us at a glance how work should be done. For example, it helps us to Communicate information quickly and clearly – hospitals use an electronic whiteboard that identifies which nurse is responsible for which patient, where the patient is located, and the status of the patient. It helps to locate things and places through use of such simple tools as color coded files, maps of types of files, and labeled cabinets to eliminate the waste of motion and searching They provide instruction such as putting pictures of the internal workings of a copier above the copier so that you can quickly find those insufferable paper jams and eliminate them Spotlight abnormal conditions – for example, i n a call center, a status board is used indicating how many calls are in queue, on hold, or dropped so that operators can manage their own workloads. Or shadow boards indicate when something is missing from your tool box or desk.
Being a constant traveler, I applied 5s and visual controls to my “getting ready in the morning” process. When I awake in a strange hotel, jet lagged, I always want that 5 more minutes to sleep and then when I get up I have to rush and often forget things. My toiletry kit was usually full to almost overflowing. Finding things was difficult and the item I wanted most was always in one of the dark corners of the bag. So the first thing I did was do a 5S on it – what did I really need? I took out several items that were in there “just in case.” I rarely used them and could buy them at a store if I had to. Next I looked at the containers - did I need as much as I was bringing or could I use smaller ones? When I transferred things to smaller containers I was sure to label it so that the next time I knew that it was shampoo and not facial cleanser. A real time saver was developing a “shadow board” for my toiletries. I outlined all of my remaining toiletries on a towel in the order that I used them and then set them out the night before. In the morning, I didn’t have to think, I just used one item after another and I didn’t forget anything critical such as deodorant or brushing my teeth. It saved me several minutes of searching in the morning and the process became less hectic!
Poka Yoke is also known as mistake or error proofing. The point is to design your process so that mistakes are impossible or at least easily detected and corrected. Mistakes may include processing errors or omissions, misunderstanding customer or processing requirements, equipment or even measurement errors. To eliminate these we must look at mistake-prone situations – these include ineffective standard procedures and processes, where short-cuts and work-arounds occur, when we have repetitive or fast-paced operations. Also, the more parts, processes, hand-offs, suppliers, and steps we have in a process, the more prone we are to human error. Do any of these apply in your work area? How do you make it harder to make a mistake than to do it right the first time? If you make a mistake, how do you make it very visible so that it is corrected prior to getting it to the customer? How do you make it easy to fix? Have you implemented any mistake proofing to eliminate the mistakes?
Poka Yoke involves error proofing techniques that address three (3) conditions: Alerts that notify workers that a error (i.e. defect) has or is about to occur. 2) Controls that prevent defective items from continuing in the process. 3) Shutdowns that stop the process before an error occurs or to avoid adverse impacts caused by the error. Here are some examples of mistake-proofing measures in our every day lives.
Standard work is an agreed upon set of procedures that establish the best method and sequence of steps for each process. It outlines efficient and safe procedures, helping to eliminate waste from the process. Standard work is a cornerstone of the Lean process. It establishes the foundation for continuous improvement. It is a process of gathering relevant information about a process and documenting it in writing and with photos, pictures, and examples, to help eliminate any confusion about what the steps in a best practice process are. It is the employees that uncover and document the practices as they are the ones most familiar with the process and the problems. Its purpose is to reduce variation in the process so that the customer receives an excellent product or service each and every time. Reducing variation also leads to improved productivity and less waste because more time is spent on value-added work and not rework.
Without standards, the process is not repeatable, and therefore not subject to improvement. Standard operations establish the baseline for continuous improvement. This chart shows that we first conduct an RIE. As part of the RIE, we use standard work to document the processes so that people do not return to their old habits. This stabilizes and standardizes the process so that we can see what improvements have been made and then we conduct the next RIE and perform standard work again. We establish measures and perform follow-up to ensure that people are following the new standard work. Otherwise, the improvements tend to dissipate over time and people return to their old ways.
This photo is courtesy of the US Army – the race car driver is Mark Martin. The racing pit crews epitomize Lean. The race is won or lost depending on how well they do their jobs. The tasks are mapped and all non-value added activities are eliminated from the process or moved to a different place in the process so that the pit stop only contains value added work. The car comes in off the race track and one person holds up a pole with a flag on it indicating exactly where the car should be stopped (visual control). 5s has been implemented – notice that there are no extraneous tools lying around. Everything and every person has a place. Note that the gas cans only hold enough gas to fill the tank, no more, no less – there is no waste, the hose fits the gas tank exactly, minimizing mistakes. Each person knows exactly what they are supposed to be doing and when – standard work. Although it may seem like you are pit stop crew and are always rushing around trying to get things done, how can you apply Lean thinking to your area? How can you streamline what you are doing? What processes need value stream mapping to identify waste? Do you need to organize your area so that you can find things quickly and easily? This could be your work area or your computer. Apply 5S. Are there visual controls that can be established to help better manage the work or to help with organization? What processes require poka yoke (error proofing) so that omissions and errors are reduced and customer requirements are better understood? What processes need to be standardized so that short-cuts and work-arounds are minimized? Best practices are sought and implemented?
Increases Process Speed and Efficiencies: Eliminates backlogs and idle time. Reduces Costs: Reduces unnecessary inventories and resources. Improves On-Time Delivery: Products and services take less time from request to delivery. Simplifies Process: Reduces or eliminates non-value added process steps Lean reduces the complexity of your processes and eliminates waste. Improvements can be achieved in a short period of time including increasing your process speed to better meet customer requirements. Often significant improvements can be made without significant time, or investment.
Many companies are performing Rapid Improvement Events on a regular basis with extremely good results. Other organizations struggle with scheduling events, performing the Kaizen, getting people to participate and then ultimately, sustaining the gains originally achieved. When it comes to Lean implementation, it is not the tools that are difficult to use, but rather the human side of implementation that can cause troubles. It is the “soft-side” of Lean that is hard. That is why it is recommended that you use an external facilitator, at least initially, to assist with the Rapid Improvement Events until others in your organization have been through a few and can take over the facilitation.
Core Lean Tools
Your Agenda is our Agenda….
Agenda <ul><ul><li>Session Purpose: </li></ul></ul><ul><ul><ul><li>Develop an overall awareness and sense of importance of the application of Lean tools and techniques to business processes </li></ul></ul></ul><ul><li>Agenda: </li></ul><ul><ul><ul><li>What is Lean? </li></ul></ul></ul><ul><ul><ul><li>Examples of Lean Tools </li></ul></ul></ul><ul><ul><ul><li>Benefits of Applying Lean </li></ul></ul></ul><ul><li>Limit: </li></ul><ul><ul><ul><li>15 minutes </li></ul></ul></ul>
What is Lean? <ul><li>Lean has many definitions: </li></ul><ul><li>“ A systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection ” </li></ul><ul><li>Definition by the NIST MEP Lean Network </li></ul><ul><li>Give the customer what they want, when they want it and don’t waste anything. </li></ul>
Definition of Value Added <ul><li>Waste is any activity that does not add value to the final </li></ul><ul><li>service or product from the customers’ viewpoint </li></ul><ul><li>Value-added: An activity that transforms or shapes raw material or information to meet customer requirements </li></ul><ul><li>Non-value-added: An activity that takes time, resources, or space, but does not added to the value of the product or service itself </li></ul><ul><li>Business-value-added: An activity that does not add value to the product or service but is required (e.g., accounting, governmental regulations, etc.) </li></ul>Focus on elimination of those things that the customer doesn’t value.
8 Wastes of Lean <ul><li>O verproduction </li></ul><ul><li>M otion </li></ul><ul><li>I nventory </li></ul><ul><li>T ransportation </li></ul><ul><li>W aiting </li></ul><ul><li>U nderutilized People </li></ul><ul><li>D efects </li></ul><ul><li>O ver-processing </li></ul>OMIT What U DO!
Change Management 5S Visual Layout Standard Work Batch Size Reduction POUS Just-in-time Pull System & Kanban Cellular & Flow Value Stream Mapping Self Inspection Mistake-Proofing Teams Project & Time Management Accurate & Complete Continuous Improvement & Rapid Improvement Events
Lean Technique: Rapid Improvement Event (RIE) <ul><li>RIE: A structured approach for making radical changes in current processes and activities within a very short time frame. </li></ul><ul><li>Goals: </li></ul><ul><ul><li>Making improvements happen during the Event, not making a list of recommendations </li></ul></ul><ul><ul><li>Removing the waste or extras from processes and making them more efficient </li></ul></ul>
RIE Structure <ul><li>There are three major activities involved in running a rapid improvement event – typically about an 8-week cycle: </li></ul><ul><ul><li>The preparation </li></ul></ul><ul><ul><li>The event </li></ul></ul><ul><ul><li>The follow-up </li></ul></ul>
Lean Tool: Value Stream Mapping <ul><li>Visualization tool used to analyze flow of materials and information required to bring a product or service to a consumer. </li></ul><ul><ul><li>Used to identify, demonstrate and decrease waste in a process </li></ul></ul><ul><ul><li>First, develop a current state value stream map: </li></ul></ul><ul><ul><li>Map the process and information flow as it currently exists </li></ul></ul><ul><ul><li>Identify value added, business-value-added, and non-value-added activities </li></ul></ul><ul><ul><li>Include cycle-times for each process-step </li></ul></ul>84.7 days
Value Stream Map - Future State <ul><li>Map the process and information flow after proposed improvements </li></ul><ul><li>Eliminate many wait times, reviews, and non-value-added (NVA) steps </li></ul><ul><li>Simplified process, reducing the cycle time from 84.7 days to 19.5 days </li></ul>77%
Sort “ When in doubt, throw it out!” Set in Order “ A place for everything & everything in Its place!” Shine “ Inspection Through Cleaning” Standardize “ Everything in a State of Readiness” Sustain “ Keep it up!” 5S
Lean Technique – Visual Controls <ul><li>Visual Controls are communication devices used in the work environment that tell us at a glance how work should be done </li></ul><ul><ul><li>Communicate information quickly and clearly </li></ul></ul><ul><ul><li>Locate things and places </li></ul></ul><ul><ul><li>Provide instruction </li></ul></ul><ul><ul><li>Spotlight abnormal conditions </li></ul></ul>
Lean Technique: Poka-Yoke <ul><li>What is Poka-Yoke ( pronounced POH-kah YOH-kay) ? </li></ul><ul><ul><li>Mistake Proofing </li></ul></ul><ul><li>3 Basics: </li></ul><ul><ul><li>Make it harder to make a mistake than to do it right </li></ul></ul><ul><ul><li>If you make a mistake, make it very visible </li></ul></ul><ul><ul><li>Make it easy to fix </li></ul></ul>
Common Mistake Proofing Examples <ul><li>Self-inspection </li></ul><ul><li>Software security </li></ul><ul><li>Look-up tables in database entry applications </li></ul><ul><li>Spell check </li></ul><ul><li>ATM beepers (alerting users to remove card) </li></ul><ul><li>Error alarms </li></ul><ul><li>Counters </li></ul><ul><li>Instruction/process checklists </li></ul><ul><li>Building error checking into control logic </li></ul>
Lean Technique: Standard Work <ul><li>The principles, tools, and techniques used to ensure </li></ul><ul><li>process standardization in a just-in-time environment. </li></ul><ul><ul><li>Provides a sequence of steps – assigned to each person </li></ul></ul><ul><ul><li>Establishes and documents best practice for minimizing waste </li></ul></ul><ul><ul><li>Involves redesigning work to avoid current bottlenecks, wait time, motion, transportation, underutilization, and other waste </li></ul></ul><ul><ul><li>Focuses on efficient use of resources through waste elimination </li></ul></ul><ul><ul><li>Develops procedures that control tasks so they are always executed consistently with no variation </li></ul></ul>
Continuously Pursue Perfection <ul><li>Otherwise, without sustained vigilance to maintain lean processes…. </li></ul><ul><ul><li>Waste constantly invades every work process </li></ul></ul><ul><ul><li>Disorder increases and processes “devolve” </li></ul></ul>It doesn’t take long to go from THIS to THAT! <ul><li>Standard Work locks in improvements and establishes a new baseline </li></ul>
<ul><ul><li>Increases Process Speed and Efficiencies </li></ul></ul><ul><ul><li>Reduces Costs </li></ul></ul><ul><ul><li>Improves On-Time Delivery </li></ul></ul><ul><ul><li>Simplifies Processes </li></ul></ul>Lean Benefits
Summary - Lean <ul><li>What is Lean </li></ul><ul><li>8 Wastes </li></ul><ul><li>Lean Tools </li></ul><ul><ul><li>Rapid Improvement Events (RIEs) </li></ul></ul><ul><ul><li>Value Stream Mapping </li></ul></ul><ul><ul><li>5s </li></ul></ul><ul><ul><li>Visual Controls </li></ul></ul><ul><ul><li>Mistake-Proofing </li></ul></ul><ul><ul><li>Standard Work </li></ul></ul>Lean is a never-ending philosophy!
Metaspire Consulting Offerings <ul><li>Metaspire offers webinars: </li></ul><ul><ul><li>Webinar offers an overview of Lean </li></ul></ul><ul><ul><li>Must have at least 6 people join </li></ul></ul><ul><ul><li>Cost: </li></ul></ul><ul><li>Classes: </li></ul><ul><ul><li>Train facilitators </li></ul></ul><ul><ul><li>Conduct team training </li></ul></ul><ul><li>Coaching </li></ul><ul><ul><li>Facilitate RIEs </li></ul></ul><ul><li>Consulting </li></ul><ul><ul><li>Implementing the management process of Lean in your organization </li></ul></ul><ul><li>Speaking </li></ul><ul><li>www.MetaspireConsulting.com </li></ul>