L Maximizing Resources: Applying Lean Six Sigma Principles to Your Print Operation Monday March 18, 2019 10 AM – 12 PM

L Cycle Time Must Be Less Than Lead Time

Cycle Time (CT) is the Time Required to Execute Activities in a Process This could be A single step or operation A group of operations Customer order to customer delivery Any in-plant process can be measured estimates print production mailing Cycle time includes actual processing time, movement time, and waiting time

L What Makes Cycle Time High? Product flow variability How Do You Become Faster? L Product flow variability Reduce Variability Inventory or work in process (WIP) Reduce & Manage the WIP Complexity of processes Simplify the Process 6

How Do We Measure Cycle Time? Theoretical Time One product through from start to finish with no WIP Dynamic Cycle Time (Little’s law): Cycle Time = WIP Throughput Any Lean journey strives to minimize waste and increase speed. Increasing speed equates to reducing lead time to your customers. Minimizing waste includes an analysis of inventory on-hand and steps to reduce that inventory. Little's Law provides an equation for relating Lead Time, Work-in-Process (WIP) and Average Completion Rate (ACR) for any process. Named after the mathematician who proved the theory, Little's Law states: Lead Time = WIP (units) / ACR (units per time period) Knowing any two variables in the equation allows the calculation of the third. Reducing WIP while maintaining the same ACR reduces lead time. Similarly, improving the process to increase ACR while maintaining the same WIP also reduces Lead Time. This applies to any process - manufacturing, transactional, service or design. If it is difficult to relate WIP to a given process, try using TIP instead (Things-in-Process). Example: A quoting department can complete 4 quotes per day (ACR), and there are 20 quotes (TIP) in various stages in the department. Applying Little's Law: Lead Time = TIP/ACR = 20 quotes/4 quotes/day = 5 days. Therefore, without changing the process, inventory or priorities - or accounting for variation - any new quote coming into the department could reasonably be expected to be completed in 5 days. 6

L L6∂ Seven NVAs – The Evil of WIP Waste Types Description Overproduction Producing more, sooner, faster than required by the next process Transportation Any movement that does not add value to the product Inventory Maintaining excess inventory Processing Doing more work than necessary Waiting Operator or machine idle time Correction All repairs to product to fulfill conformance Motion Any wasted motion to pickup parts or stock parts. Wasted walking. Lean improves processes by eliminating waste (non value added activities) Of the seven NVA evils- WIP encompasses 4 of them

T I OE Little's Law Lead Time = WIP / Average Completion Rate 150 books in progress / 75 books produced in one shift = 2 Days Lead Time T As throughput increases, the other two decrease, as bottlenecks are removed, throughput increases Throughput Inventory Operating Expense $ coming in $ tied up $ going out I OE

Why is Cycle Time Important? To be COMPETITIVE: Cycle Time < Lead Time (Customer Requirement) Must be able to meet the customers requirement – lead time Shorter Cycle Times provide Huge competitive advantage Greater throughput- can do more with existing resources and time Provides fast lead times for customers Reduced manufacturing costs Can be a in-plant saver

Exercise L Examine how your process “responds” to the voice of the customer Understanding cycle time and how we measure it Understanding the importance of reducing cycle time Learning various techniques (tools) to identify and reduce “waste” Use an example to analyze and study L concepts

Cell 1 Clip Put white sheet on top of cover Center white sheet to top and bottom of cover sheet Pass to next station

Cell 2 Highlight Highlight black dotted line Make sure highlight encompasses all of black dotted line Pass to next station

Cell 3 X and O In pen, draw a circle within the dotted lines, making sure your pen does not touch or pass dotted line, and that the circle completes itself With a ruler connect the dots in an X, make sure your lines do not pass or come short of the dots Pass to next station

Cell 4 Labeling Over dotted line, write this exactly PsP 2019 Pass to next station

Cell 5 Testing Detach paper clip Take white sheet off of cover QC for Conformance: Highlight over line Circles within dotted lines Circle closes itself Dots are connected with clean straight lines Lines do not go past or come short of the dots Make two piles – one for good the other for bad

Cell 5 Testing L6σ Vernacular Good is called Conformance Bad is called Non-Conformance Conformance means that you are conforming to the requirements of the voice of the customer - VOC First and foremost our processes must be in conformance to the VOC. Testing cell make sure you report back to your group and leader non conformance issues so they can be remedied

Cell 6 Testing For testing cell only When you get the salmon sheet you tell the timekeeper stop and your team stops For the rest of the cells, when you see the salmon sheet you must keep producing, only stop when testing cell says stop

Table Layout- 10 people per table #1 #3 #5 #7 #9 Employee Clip Highlight X and O Labeling Testing #2 #4 #6 #8 #10 Employee

EDU Staff Clip Highlight X and O Labeling Testing One EDU staff member per table. They keep time and after one minute insert salmon sheet on top of clip cells white sheets. When production stops, they gather WIP for each cell, and the number of good and bad products- report data to Gordon. Clip Highlight X and O Labeling Testing

FIFO- First In First Out CLIP HIGHLIGHT HIGHLIGHT X AND O Downstream cells always start by taking from the top of the pile. If there are multiple piles, keep the first pile towards you

Record Keeping

X/O Exercise L Round 1 Push System

L Push System Discussion : Round 1 LOT 9 LOT 4 LOT 7 LOT 3 LOT 10 LOT 6 LOT 2 LOT 11 LOT 8 LOT 5 LOT 1 OPER A OPER B OPER C OPER D A system where work is performed to a schedule or plan and sent to the next process without regard to demand from that process

Discussion : Round 1 L How Does WIP affect Cycle Time?

X/O Exercise L Round 2 Pull System

L Push vs. Pull Systems PUSH SYSTEM etc.. PULL SYSTEM OPN A OPN B A system where work is performed to a schedule or plan and sent to the next process without regard to demand from that process LOT 9 LOT 3 LOT 4 LOT 7 LOT 6 LOT 2 LOT 10 LOT 11 LOT 8 LOT 5 LOT 1 OPN A OPN B OPN C OPN D etc.. LOT 4 LOT 3 LOT 2 LOT 1 PULL SYSTEM OPN A OPN B OPN C OPN D system where work is performed only when the next process has capacity to consume it 19

Discussion : Round 2 L Identification of the bottlenecks

L Round 2 Rules Each cell makes a product in batches Once your identified cell batch is made you stop until the next cell takes your batch then you can make another batch- the downstream process determines rate of throughput Batches for each cell (assuming 2 employees per cell): Clip – in batches of 2 (1 per employee) Hilight – in batches of 2 (1 per employee) X and O – in batches of 4 (2 per employee) Labeling – in batches of 4 (2 per employee) Testing – in batches of 2 (2 per employee)

X/O Exercise L Round 3 Custom

Round 3 Rules L Your leader leads your group in developing a new improved process No rules, just make the product in conformance Improvement means: Simplify the process Correct problems with: WIP Waiting Transportation Non-conformance

L Discussion : Round 3 Are there still bottlenecks? How was your WIP? Did your group improve from Round 2? What would your improvement plan be if we did another round?

Determining Cycle Time in PSP You can use PSP to locate the gap in your lead and cycle time using the Order Turnaround Time report

L Maximizing Resources: Applying Lean Six Sigma Principles to Your Print Operation QUESTIONS