Lean Basics Dewey Warden

Lean Basics Value stream mapping The seven wastes 5S’s Processes and operations Process flow and cell design Process standardization Overview of quick changeovers

Value Stream Mapping How many are familiar with value stream mapping? What value do you think mapping can provide your organization?

Value Stream Mapping What is a value stream? A value stream is all the actions (both value added and non-value added) currently required to bring a product through the main flows essential to every product

Value Stream Mapping Two main flows (1) The production flow from raw material to the customer (2) The design flow from concept to launch We are concentrating on the production flow

Value Stream Mapping Production flow - all the relevant actions consist of two flows Orders traveling upstream from the customer Products coming downstream from raw materials to the customer Together these constitute a closed circuit of demand and response in the information flow and the material flow

Value Stream Mapping It is the simple process of directly observing the flows of information and materials as they occur, summarizing them visually, and then envisioning a future state with a much better performance.

Value Stream Mapping Levels of mapping Process Single plant Multiple plant Across companies

Value Stream Mapping Looking at the whole value stream Cost cutting Most managers look at one place or one point Their machine Their department Their plant Their firm

Value Stream Mapping Traditional measures High labor utilization High machine utilization Focusing on their assets Focusing on their organization

Value Stream Mapping What about? Performance of the entire value stream 9 out of 10 steps are a waste 99% of elapsed time is a waste

Value Stream Mapping Extended value stream maps Can be used to raise the consciousness in every firm and function of the effect of its actions on every other firm and function touching the value stream Guide groups of managers across many departments and firms toward similar results

Value Stream Mapping Creating the value stream maps Walk along the value stream Look for Which steps create value? Which steps are waste? Why is order flow so erratic? Why is quality so erratic? How can value be enhanced for the end-customer?

Value Stream Mapping Creating the value stream maps Identify all the physical actions required Identify information actions currently required to manage the value stream

Value Stream Mapping You want a manufacturing approach that enables companies to make What customers want When they want it In the variety they want In the amount they want Keeps cost low, quality high and lead time minimal by eliminating waste

The Seven Wastes How do you identify opportunities? By recognizing waste and eliminating it What is waste? Waste is any element that adds cost without adding value to the product

The Seven Wastes Overproduction Excessive inventory Unnecessary conveyance Over processing Excessive motion Waiting Corrections

The Seven Wastes Overproduction and excessive inventory are waste Overproduction creates excess inventory Inventory hides production problems Inventory leads to transport, storage, damage and delay What are some other ways you can think of that overproduction causes waste?

The Seven Wastes Extra inventory hides Production imbalances Late deliveries from suppliers Defects Equipment downtime Long setup times

The Seven Wastes Unnecessary conveyance What do you do with items not used immediately?

The Seven Wastes Unnecessary conveyance Move them Store them Pick it up, put it down Damage Delay

The Seven Wastes Over processing Doing more work than is required by the customer Give us some examples of where you might be over processing

The Seven Wastes Excessive motion Reaching Bending Lifting Turning Carrying

The Seven Wastes Waiting What types of things might you be waiting for at your operations that causes delays?

The Seven Wastes Corrections Rework Redo Retype Do-overs

The Seven Wastes Defects Overproduction Waiting Non-utilized talent Transportation Inventory Motion Extra processing Source: Villanova University

The Five Ss

The Five Ss Sort: Remove everything from the workplace that is not needed for current production C:\Documents and Settings\Michael\My Documents\desktop_master\capsys_lean\capsys6_23_05v2 C:\Documents and Settings\Michael\Desktop\desktop8_05\capsys lean\lean production workshop

The Five Ss Set in Order: Arrange items so they are easy to find and return and locate items to minimize motion waste

The Five Ss Shine: Keep everything clean and in top condition, so that it is ready to be used

The Five Ss Standardize: Ongoing maintenance of Sort, Set in Order and Shine

The Five Ss Sustain: Create the conditions or structures that will help sustain commitment

Processes and Operations Quality process Focuses on meeting requirements and on minimizing warranty costs Cost process Seeks to remove excess cost or waste in an organization Delivery process Manages the elements of time and quantity in sourcing materials, producing and getting product and service to the customer as required Innovation Maximizes an organization’s success rate

Processes and Operations A continuous flow in which raw materials are converted to finished products Operations Any action performed by workers or machines on materials, WIP, or finished products

Processes and Operations Storage of raw materials or components Transport Transformation Storage waiting for a process Inspection

Processes and Operations Essential operations The actual value-adding Other operations Set-up, transport, inspection

Processes and Operations In a lean enterprise Value stream maps help to focus an organization on their processes to promote optimization of the whole company’s performance by aligning interests across the company

Processes and Operations In a lean enterprise Process-focused strategies unleash new levels of productivity

Process Flow and Cell Design There are a lot of wastes in an operation based layout Conveyance - using equipment and people Badly used space Lot delays test Source: Productivity Press

Process Flow and Cell Design Wastes in an operation based layout Source: Productivity Press

Process Flow and Cell Design Benefits of a process flow layout Positioning equipment in the process sequence for a smooth flow Minimal inventory and delays Source: Productivity Press

Process Flow and Cell Design Multi-machine operation One person runs several machines in process sequence Source: Productivity Press

Process Flow and Cell Design U-shaped cells A process flow layout with the end point near the beginning point. Minimizes walking Source: Productivity Press

Process Flow and Cell Design Small flexible machines Process small amounts Save space Reduce walking Easy set-up Can be moved easily Less expensive Don’t need high speed

Process Standardization Establishes predictability Three elements Standard cycle time Standard work sequence Standard in-process inventory Source: Productivity Press

Process Standardization Standard cycle time The actual time required to process one part Determines whether a process is capable of producing the required quantity at the required time.

Process Standardization Standard work sequence and in-process inventory A consistent set of operations and actions A consistent quantity of materials and WIP in the process

Process Standardization The foundation for continuous improvement Not “carved in stone” – it is a living standard Standardization is the first step in improvement

Quick Changeovers Why would quick changeovers be important? Where could you use quicker changeovers? Discuss pit stops and review video

Quick Changeovers Separate internal setup from external setup Convert internal setup to external setup Streamline all aspects of setup Source: Productivity Press

Demonstrations Leading Assisting Push vs pull demonstration model Dewey Warden, Lean Manager Assisting Kent Williams, Manager CTS Tactical Purchasing/Planning Joetta Hertel, Director Information Technology Becky Schnur, Manager General Accounting Push vs pull demonstration model Kanban demonstration model

End of Day One Tomorrow deep dive into value stream mapping