Tools To Make Waste Visible

2 FOR INTERNAL USE ONLY Module Objectives By the end of this module, the participant should be able to:  Develop a Spaghetti Chart to identify waste  Develop a Process Flow Diagram to identify waste  Create a Pareto Chart to identify waste  Develop a Cause and Effect Diagram to identify waste  Utilize Process Reports and Assessments to identify waste

3 FOR INTERNAL USE ONLY Recall The Five Principles Of Lean Thinking Review: Lean thinking can be summarized in five principles:  Principle 1 – Precisely specify the value of a specific process  Principle 2 – Identify the value stream for each process  Principle 3 – Allow value to flow without interruptions  Principle 4 – Let the customer pull value from the process  Principle 5 – Continuously pursue perfection

4 FOR INTERNAL USE ONLY What Tools Exist To Make Waste Visible?  Spaghetti Chart  Process Flow Diagram  Pareto Chart  Cause and Effect Diagram –Five Whys  Process Reports and Assessments

5 FOR INTERNAL USE ONLY Recall Types Of Waste Manufacturing And Transactional Types of waste  Overproduction  Inventory  Waiting  Transportation  Motion  Making defects  Overprocessing Contributors to waste  Unevenness  Overburden  Current methods and processes

6 FOR INTERNAL USE ONLY Spaghetti Chart  Obtain a layout of the work area  List the steps in the process  Draw the path of the process from start to finish on the layout  Follow that piece of paper, electronic document, product, or service and “chart” it’s flow, distance traveled, loops, etc.  Focus on waste

7 FOR INTERNAL USE ONLY Example Spaghetti Chart Red Glow Dept. Yellow Glow Dept. Inspection Red Dept. Orange Glow Dept. Yellow Dept. Customer O B S T R U C TI O N Rec/Ship/ Stock 7 O B S T R U C TI O N Not the most optimum of flow for our product/service.

8 FOR INTERNAL USE ONLY Show Before And After Describe improvement with metrics (before and after): Distance traveled, floor space “saved”, touch points, number of employees, etc.

9 FOR INTERNAL USE ONLY Process Flow Diagram  Used to make the process visible  Could include time spent at each step  Could include defect levels at each step  Could include Value-Add and Non-Value-Add  Identifies opportunities for improvement  SIPOCs, Value Stream Maps, Detailed Process Maps are all in the “family” of Process Flow Diagrams  Focus on waste Always walk the process.

10 FOR INTERNAL USE ONLY Basic Structure How many Process or Operation Steps are there? How many Decision Points? How many Measurement/Inspection Points? Where are the Bottlenecks? How many Rework Loops? Good Bad Good Bad Scrap Warehouse

11 FOR INTERNAL USE ONLY Waste Map Processing Handling Inspect DelayStorageDistanceTime Remarks 1 DescriptionStep Team Date Comments Component Operation Activity Analysis Action Study Waste Map.ppt

12 FOR INTERNAL USE ONLY Pareto Chart Pareto Charts – Help Identify The “Vital Few” Factors to Focus On 80% of your profits come from 20% of your customers 80% of your complaints come from 20% of your customers 80% of your profits come from 20% of the time you spend 80% of your sales come from 20% of your products 80% of your sales are made by 20% of your sales staff The Pareto principle (also known as the rule, the law of the vital few) states that, for many events, roughly 80% of the effects come from 20% of the causes. The Pareto Principal: Pareto Principal Examples:

13 FOR INTERNAL USE ONLY Pareto Chart  A descending bar graph that helps to focus on the problems that offer the greatest potential for improvement by showing their relative frequency or size  Compare the relative frequency or cost of each problem category Pareto Charts – Very useful and used throughout our training.  List the categories in descending order from left to right on the horizontal axis  The height of the bars corresponds to the frequency or cost

14 FOR INTERNAL USE ONLY Cause And Effect Diagram (Fishbone Diagram)  Used to allow team to identify and graphically display, in increasing detail, all potential root causes  Place problem (effect) in box on right-hand side of chart  Draw major cause categories as bones on chart  Repeatedly ask why each cause happens  Look for root cause that appears repeatedly within or across major causes

15 FOR INTERNAL USE ONLY Basic Structure Of The C&E Diagram Problem/ Desired Improvement CausesEffect Main Category Measurements Materials People Environment Methods Machines

16 FOR INTERNAL USE ONLY Source Categories For Potential Causes People  Do they follow standards?  Efficiency acceptable?  Are they problem conscious?  Are they responsible?  Are they qualified?  Are they experienced?  Are they assigned to the right job?  Are they willing to improve?  Do they maintain good human relations?  Are they healthy? Machines (facilities)  Do they meet production requirements?  Process capability?  Oiling, greasing adequacy?  Is inspection adequate?  Frequency of downtime and why?  Does it meet precision requirements?  Unusual noises?  Layout adequacies?  Are there enough machines/facilities?  Are they in good working order?  Preventative maintenance schedule?

17 FOR INTERNAL USE ONLY Source Categories For Potential Causes Material  Mistakes in volume?  Mistakes in grade?  Mistakes in brand name?  Are there impurities mixed up?  Is the inventory level adequate?  How much WIP is there? Where?  Is the layout adequate to accommodate materials?  Is the quality standard adequate? Method (operation)  Are the work standards adequate?  Is the work standard upgraded?  Is is a safe procedure or method?  Does it ensure a good product?  Is the method efficient?  Is the sequence of work adequate?  How is it setup?  Is the setup adequate?  Is there adequate contact/ communication with the upstream and downstream steps?  What method is used to communicate?

18 FOR INTERNAL USE ONLY Fishbone Diagram Major Categories The 8 Ms (used in manufacturing) Machine (technology) Method (process) Material (Includes Raw Material, Consumables and Information.) Man Power (physical work)/Mind Power (brain work): Kaizens, SuggestionsKaizens Measurement (Inspection) Milieu/Mother Nature (Environment) Management/Money Power Maintenance The 8 Ps (used in service industry) Product=Service Price Place Promotion/Entertainment People(key person) Process Physical Evidence Productivity & Quality The 4 Ss (used in service industry) Surroundings Suppliers Systems Skills These Are Only Examples – Use What Is Right For Your Project

19 FOR INTERNAL USE ONLY Basic Structure Level 1 Causes Level 1 Cause Problem/ Desired Improvement CausesEffect Main Category Measurements Materials People Environment Methods Machines

20 FOR INTERNAL USE ONLY “Five Whys?” One Approach To More Cause Category Detail  Ask why?  When presented with an answer, ask why?  Add additional levels to the C&E Diagram  Repeat step two until you get the real problem or issue identified An Affinity Diagram will also add detail to the Cause Categories.

21 FOR INTERNAL USE ONLY The Five Whys Business Process Example The “Five Whys” Method Supervisor:“Why is the sales order being released so late?” Employee:“Because the customer requirements are not entirely known” Supervisor:“Why are the customer requirements not known?” Employee:“Because the proposal was vague and incomplete” Supervisor:“Why was the proposal vague and incomplete?” Employee:“Because the performing organization didn’t participate in creating it” Supervisor:“Why didn’t the proposal team consult with the proper experts?” Employee:“Because we hardly ever talk with those guys” Supervisor:“Why is communication so poor between departments?” Engineer:“Because that is how we always do proposals, and we don’t have a process that encourages us to work together”

22 FOR INTERNAL USE ONLY Basic Structure Level 2 Causes Problem/ Desired Improvement CausesEffect Level 1 Cause Level 2 Cause Main Category Measurements Materials People EnvironmentMethodsMachines

23 FOR INTERNAL USE ONLY Objectives Review The participant should now be able to:  Develop a Spaghetti Chart to identify waste  Develop a Process Flow Diagram to identify waste  Create a Pareto Chart to identify waste  Develop a Cause and Effect Diagram to identify waste  Utilize Process Reports and Assessments to identify waste