O How to Understand & Apply Lean in the Workplace Professional Development Lean Series Charles M. Saunders Lean Libra Consult, LLC November 3, 2010 Oregon State University PFLA Influencing Organizational Change: The Lean Leader Method

 To fully prepare each participant to take a Lead role in a Lean self-installation  To clearly explain why self installing can be an effective method  For each participant to understand Lean concepts, metrics and tools  To deliver the most cost effective method for companies to install continuous quality

 Brief overview of the development of Continuous Quality programs  Deming’s 14 Points  The House of Toyota and evolution of the Toyota Production System (TPS)  How Lean works for manufacturers and all other organizations alike  Where we are today in Lean development

 Intro to Lean key elements, concepts and tools  The Body of today’s work: Installing Lean from Storyboard to Sunset Report  Attributes of Value Stream Management (VSM)  The 8 steps of VSM  Key activities for Management and Staff  Sample Kick-off “Kaizen” event  Macro/ Micro VSM exercise  Team VSM Simulation  Team Project Charter

Key elements:  Lean Thinking- New way to approach the job  Leadership- focused on interpersonal communication-”Personal Mastery”  Continuous Systematic Improvement (CSI)  Customer driven process, Voice of the Customer  Commit to Lean, learn it, do it (LE-AP)  A sense of Urgency  “Catch ball”

6  Customer Value sets pace for all  Planning and Operations

 Put People First! Blame System not Employees  Customers- Hear the voice of the customer  Employees- Acknowledge as key player  Management- Strategic Goals need to be reflected in “kaizen” plans

 Value- As seen by the customer  The Value Stream- The flow of information and materials to produce value  Flow- The process that moves work from external customer to finished “product”  Pull- No work begins until the customer order is placed- Upstream/Downstream Customers  Visual Workplace- ‘See’ your workflow Map it!  “Muda”= Waste = Variation

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 Lead time- From ‘door to door’  Cycle/process time- Internal Work  “Takt” time- Customer demand  Pitch- Leveling the Workload  One Piece FlowHeijinka/Kanban  Value/non-value added process  Queue time

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 Storyboard to Project Charter  Map Process Flow- Walk it, ‘Picture’ it!  Catch ball! Adjust between Lean Leader and Team  Muda walk- Identify Waste  5S- sort, set in order, shine, standardize, sustain  Value Stream Map (VSM) Chart each Product  “Kaizen” events- Improve Work Continuously

 Commit to Lean  Choose the Value Stream  Learn about Lean  Map the Current State  Identify Lean Metrics  Map the Future State (demand, flow, leveling)  Create Kaizen Plans  Implement Kaizen plans

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 Choose Champion- authorizes changes  Core Team selection-cross functional members  Visit the area- Muda walk, identify process flow  Communicate! Storyboard, wall map, newsletter  Experiment and learn from mistakes  Document all phases- Project charter, etc.  Project selection through VS complexity mapping

 Cost reduction principle Price-Cost=Profit  7 deadly wastes: overproducing, waiting (queue time), transport, over processing, inventory, motion, defects  Just-in-time- right amount only as needed  3 phases of Lean application: customer demand, continuous flow, leveling  3 areas of a Value Stream: concept to launch, raw material to finished product, order to cash

 Project charter action plan: Who, What, When?  Champion leads team meeting  2 hours- Review charter  2 hours- Plot out selected Value Stream  1 hour - Choose goals for Muda and 5S  1 hour - Begin process flow map  ½ hour - Continue or begin Storyboard

 Charles Saunders, Principal Lean Libra Consult, LLC