Advanced Lean Advanced Lean Module LEAN: Delivering value to Customers with shortest turn around time

Advanced Lean Agenda Lean Overview ~ Recap….. Lean Methodology Lean Toolkit Lean Deployment Lean Resources

Advanced Lean Lean Overview ~ Recap….  Lean History  Lean Explained  Lean Benefits  Lean Usage  Lean Basic Toolkit Lean Methodology Lean Advanced Toolkit Lean Deployment Lean Resources

Advanced Lean Some Key Lean Concepts developed at Toyota Single Piece Flow Pull Production TAKT Time Production Autonomation Built-In Quality Stopping at Abnormalities Level Loading Sequencing Stability Jidoka Just-in-Time Heijunka Toyota Production System People Lean History TOYOTA Recap…

Advanced Lean A principle driven, tool based philosophy that focuses on eliminating waste so that all activities/steps add value from the customers perspective. Imagine Office Processes with: Lean Thinking is all about continuous waste elimination ! Lean Thinking Higher Customer Satisfaction Shorter Lead Time Higher Flexibility Higher Quality Lower Costs Higher Employee Satisfaction Making (Back-)Office a strategic advantage Recap…

Advanced Lean Lean concepts apply across all processes and industries A strategy, philosophy, process and leadership approach for operating in a superior way. Results include:  Reduced cycle times (product development and production)  Increased quality  Reduced costs and inventory  Increased capacity potential  Improved customer service  High levels of worker involvement, ownership and commitment  Improved financial returns What is Lean? Lean Explained Recap…

Advanced Lean Some profit Bigger profit Cost to produce Price to sell Increase profit by Price Increase But, may lose customers! The conventional way: Price = cost +Profit Lean Explained Recap…

Advanced Lean Some profit Bigger profit Cost to produce Price to sell Increase profit by Cost Reduction The new way: Price - cost =Profit Lean Explained Recap…

Advanced Lean Relentless Focus on Reducing non value adding activities Cost Defects Lead time Inventory Space Waste! Productivity Customer satisfaction Profit Customer responsiveness Capacity Quality Cash flow On time delivery Work Time (value add) Cycle Time Before After Wait Time (non value add) Cost/Chaos Same work completed in less time Lean Benefits Cycle time Recap…

Advanced Lean Apply Any Tool from your Quality Tool Box Lean Usage Lean vs. Six Sigma Communicative Centered on Stable, Repeatable Process Automation Many Tools for Driving Change Mixed Model Plan, Kan Ban, Visual Management Observation and Intuition Based Analysis... PQ, PR, TAKT Time Standard Work & Target Sheets... Assumes Data is Good Value Stream Mapping... Boundaryless & Multi-Generational Few Tools or Direction Few Tools to Create Change in Critical X’s Data Driven Analysis Confirms Data Quality True VOC is Powerful Six Sigma Lean DefineMeasureAnalyzeImproveControl LeanSix Sigma Methodology Strengths Recap…

Advanced Lean Lean For Quick Fixes….Six Sigma For Complex Processes !! Six Sigma Project HybridAWO Lean Usage Average ~ 4 Months Time Effort Time Effort Time Effort Average ~ 1½ Months When do I use Lean? Recap…

Advanced Lean Lean: Strengthens GE’s journey to Excellence Lean vs. Six Sigma? Lean Usage LeanSimple or Wing to wing Breadth Six SigmaComplex and FocusedDepth Lean Success Factors/ Impact GE Values X X LeanSix Sigma Identifies problems in the flow Improves the capability of steps that do add value Helps identify steps that don’t add value and provides tools to eliminate them Lean Improving the capability can eliminate additional steps Six Sigma/Lean Energizing Empowering Team work, Boundary less / Open mindset Passion for improvement Intuition / Action Customer focus Recap…

Advanced Lean We Need Lean to be Leaner Quickly…Let us start it!! Principle New ways to think about problems New problem solving tools and concepts An improvement methodology focused on action Lean Usage So, why do I need Lean? Toolkit Process Just Do It!! Solutions Causes Known Unknown Simple Complex Lean!! Ask an Expert!! Six Sigma Recap…

Advanced Lean Where are we going… Issues Inventory Waiting Defects … No flow in the value stream. Processes full of waste Old situation Tool Value Stream Mapping, other lean tools, etc. Results Reduction of waste Learned to ‘see the flow’ Couple of improvements Remaining Issues No real continuous flow Still significant amount of waste. Basic tools Tool Creating Continuous Flow Pull production Challenge More waste reduction Real continuous flow Flexible workforce Less variance Less waste Advanced tools

Advanced Lean Time / Cultural Maturity Tool Sophistication Lean Toolkit Applying the right tools at the right stage  5S  MUDA  Mistake proofing  Intro to Value Stream Mapping  Visual Management Expose the Waste Reduce Variability Control the Process  Value Stream Mapping  Standardized Work  Intro to Continuous Flow  Intro to Pull Production Level 1 Level 2 Recap…

Advanced Lean Appropriate Tools and Techniques are to be used depending on the need Lean Tools Overview A number of Lean Tools and Techniques are available Tools and Techniques Actions Bring Organization & Cleanliness to work area 5S Framework Understand Value Value Stream Mapping Institute continuous improvement philosophy Kaizen Events Implement pull- based flow Kanban, Just-in Time Reconfigure work areas U-Shaped Cells Benefits Realized Recap…

Advanced Lean Lean Tools Description Exposing the Waste ~ Recap…..  5S  7 Wastes  Mistake proofing  Visual Management Recap…

Advanced Lean Implementing the 5S is often the first step in Lean Transformation 5S – A Framework to create and maintain your workplace 1. S: SORT (Organization) Distinguish between what is and is not needed 2. S: SET IN ORDER (Orderliness) A place for everything and everything in its place 3. S: SHINE (Cleanliness) Cleaning and looking for ways to keep it clean 4. S: STANDARDIZE (Adherence) Clearly define Tasks and Procedures 5. S: SUSTAIN/SYSTEMIZE (Self-Discipline) Stick to the rules, scrupulously 5S Recap…

Advanced Lean At the end, everything results in Cost!! MUDA – Lean is a way to continuously eliminate waste ExamplesThe Seven Deadly Wastes Motion Defects Inventory Transportation Overproduction Waiting Processing Process Product People Incorrect Layouts of office, factory, etc. Lack of Proximity Of Machines Off-line Resources Watching Machines Work Long Set-ups and Lead Times Large Batches and Inventory Planning Full Utilization of Machines and Labor Producing More Goods than Marked Demand Poor Machine Maintenance Unnecessary Processing Steps Longer Lead Times Long Delays for Troubleshooting Costly Rework Dissatisfied Downstream Customers High Stocks of Raw Material, WIP, & Finished Goods Additional Space Requirements Clutter Unnecessary Movement Extra Handling “Moving Inventory” Muda ~ 7 Wastes Recap…

Advanced Lean Mistake Proofing Overview A technique for eliminating errors Making it impossible to make mistakes It is good to do it right the first time; it is even better to make it impossible to do it wrong the first time. Recap… Elimination >Eliminate the possibility of error Replacement >Substitute a more reliable process Facilitation >Make work simpler to perform Detection >Detect the error at the defect source Mitigation >Minimize the effect GOOD BEST BETTER Use the highest level possible for the application. Use the highest level possible for the application.

Advanced Lean Why Visual Management …. Demonstrate how we manage our processes …Consistent Communication Excite customers/ stakeholders walking the floor … Visual Management Transparent view of Performance … Shared Ownership Escalate abnormalities… Quicker Resolution Decision working level … Empowerment Showcase Successes … Create a sense of Pride Visual Management Overview Seeing is Believing Recap…