1.Over Production: Producing more than is needed Over Production: Over Production: 2.Waiting: Idle Time (Down Time) Waiting: 3.Non-Utilized Talents: Under utilizing employees potential Non-Utilized Talents: Non-Utilized Talents: 4.Transportation: Moving materials & parts around the plant Transportation: 5.Inventory: Any supply in excess of one-piece flow Inventory: 6.Motion: Action that does not add value to the product Motion: 7.Defects: Inspection, scrap and repair Defects: 8.Extra Processing: Effort adding no more value to the product Extra Processing:Extra Processing: 9.Resistance to change: Especially management

–Scrap –Rework –Defects –Correction –Field failure –Variation –Missing parts Work that contains errors, rework, mistakes or lacks something necessary

Process failure Mis-loaded part Batch process Inspect-in quality Incapable machines REWORK SCRAP Love this O/T !!! REWORK

Six Sigma Pokayoke (Error Proof)Pokayoke One-piece pull Built-in quality 3P (Production Preparation Process)3P Jidoka (Stop and respond to every abnormality)Jidoka

Producing more than the customer needs right now –Producing product to stock based on sales forecasts –Producing more to avoid set-ups –Batch process resulting in extra output

Forecasting Long set-ups Poor Communication “Just in case” for breakdowns

Pull system scheduling Heijunka – level loadingHeijunka Set-up reduction TPM

Idle time created when material, information, people, or equipment is not ready –Waiting for parts –Waiting for prints –Waiting for inspection –Waiting for machines –Waiting for information –Waiting for machine repair

Push production Work imbalance Centralized inspection Order entry delays Lack of priority Lack of communication

Downstream pull Takt time production In-process gauging Jidoka (Stop and respond to every abnormality)Jidoka Office Kaizen TPM

Under utilizing employees’ potential (their creative ideas) which results in: –High Absenteeism –Poor quality –High turn over –Poor job satisfaction

Poor training Poor communication Lack of goals No control over situations I (We) can’t do that Lack of feedback on ideas Mistrust Lack of empowerment

Cross training Job rotation Empowerment Kaizen Idea implementation Problem Solving Teams

Movement of product that does not add value –Moving parts in and out of storage –Moving material from one workstation to another

Batch production Push production Over production Storage Functional layout Multiple staging points

Transportation

Flow lines Pull system Value Stream organizations Kanban Supply chain management

More materials, parts, or products on hand than the customer needs right now –Raw materials –Work in process –Finished goods –Consumable supplies –Purchased components

Supplier lead-times Lack of flow Long set-ups Long lead-times Paperwork in process Lack of ordering procedure Over production

External kanban Supplier development One-piece flow lines Set-up reduction Internal kanban Build to order

Motion Motion Look at Charlie Chaplin and Lucy

Movement of people that does not add value –Searching for BOMS, parts, tools, prints, work instructions, etc. –Sorting through materials –Reaching for tools –Lifting boxes of parts

HERE ? OR PARTS HERE ??? Disorganized workplace Missing items Poor workstation design Unsafe work area

5”S” Point of Use Storage Water Spider one who performs a wide range of tasks – stocks the line One-piece flow Workstation design 3P (Production Preparation & Process)3P

Effort that adds no value from the customer’s viewpoint –Multiple cleaning of parts –Paperwork –Over-tight tolerances –Awkward tool or part design –Inspection

Delay between processing Push system Customer voice not understood Designs “thrown over the wall” Redundant processes

Flow lines One-piece pull Office Kaizen 3P (Production Preparation and Process)3P Lean Design

Resistance to Change

“Failure to Change is a Vice!” I want everyone at Toyota to change and at least do not be an obstacle for someone else who wants to change. Hiroshi Okuda Chairman Toyota

1.Defects: Inspection, scrap and repair 2.Over Production: Producing more than is needed 3.Waiting: Idle Time (Down Time) 4.Non-Utilized Talents: Under utilizing employees potential 5.Transportation: Moving materials & parts around the plant 6.Inventory: Any supply in excess of one-piece flow 7.Motion: Action that does not add value to the product 8.Extra Processing: Effort adding no more value to the product 9.Resistance to change