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Your Agenda is our Agenda….

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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>

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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>

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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.

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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!

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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

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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>

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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>

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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

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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%

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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

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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>

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Make It Visual!

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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>

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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>

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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>

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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>

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Photo courtesy of US Army

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<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

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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!

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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>