Process Improvement An Overview of Lean Agenda: The origin of Lean A look at the concepts Potential benefits Potential barriers to success Summary TELA 2011

The Origin of Lean Toyota Production System (TPS) began in 1948 Shakichi Toyoda, Taiichi Ohno The Machine That Changed the World, 1991 Womack, Jones, Roos The term Lean emerged Lean, Zoom, BPI, BPM, Six Sigma, PDCA = process improvement Toyota just calls it their production system

A Closer Look at Toyota Production System (TPS) This is just a fun slide. I think it’s funny that the “bosses” column DEFINITELY had to be part of the house. “Toyoda” with a “d” was the family name of the car company owners. They renamed the car company “Toyota” with a “t”. Charles Sheffer – The Boeing Company

A Closer Look at Toyota Production System (TPS) There are TWO columns to the Toyota Production System House. JIT is one. Neither of the two columns are “simplicity”, “standard work”, or “waste elimination”, they are JIT and Jidoka. See Jidoka on next page . .. JIT - Just in Time What is needed, When it’s needed, In the amount needed Pull Production –respond to signal to replenish as needed Takt Time - the desired time between units of production output, synchronized to customer demand Production One-Piece Flow Charles Sheffer – The Boeing Company

Ford’s Willow Run B-24 plant The first Just-In-Time production? Ford’s Willow Run B-24 plant

Ford’s Willow Run B-24 plant The first Just-In-Time production? Ford’s Willow Run B-24 plant A Bomber an Hour

A Closer Look at Toyota Production System (TPS) Jidoka – Automation with the Human Touch Build in Quality, don’t just inspect for it Detect the abnormality Stop Correct the Immediate Condition Find the Root Cause and Install Countermeasure There are TWO columns to the Toyota Production System House. JIT is one. Neither of the two columns are “simplicity”, “standard work”, or “waste elimination”, they are JIT and Jidoka. See Jidoka on next page . .. Charles Sheffer – The Boeing Company

P D C A The Heart of TPS Design out Overburden - Muri Avoid unreasonableness through standard work Smooth Production - Mura Avoid inconsistencies through just in time Eliminate Waste – Muda Examine waste and inconsistencies, feed back into Muri Over Production – producing before there is demand Excess Motion – of operator or machine Waiting, idle time – of operator or machine Conveyance – transportation Processing that does not add value Excess Inventory Correction – rework or scrap D C A

Over Production – producing before there is demand http://www.strategosinc.com/lean_implementation1.htm Just in time Smooth flow Design out Overburden Eliminate Waste Over Production – producing before there is demand Motion – of operator or machine Waiting, idle time – of operator or machine Conveyance – transportation Processing that does not add value Inventory Correction – rework or scrap

So, back to Lean Womack and Jones popularized the word Lean in their book. They wanted to describe this production system that ran without any extra “fat”. It was “fat free”, so the word Lean seemed to make a pretty good fit. by James P. Womack (Author), Daniel T. Jones, Daniel Roos, 1991 Charles Sheffer – The Boeing Company

Lean Principles Not just for Manufacturing Five basic principles: Specify value from the standpoint of the customer Identify the value stream and eliminate waste Make the value-creating steps flow smoothly Let the customer pull the product as needed Continuously improve in pursuit of perfection www.lean.org/whatslean/principles.cfm

Local companies doing Lean Potential Benefits Improved quality More product variety Improved cycle time Employee satisfaction Reduced cost Local companies doing Lean Virginia Mason Esterline Technologies The Boeing Company PACCAR Alaska Airlines

Potential Barriers to Success Lost In Translation Lean = Getting Rid Of Waste Lean = Simple Lean = People Empowerment Lean = Continuous Improvement Lean = Robots Lean = becomes a verb instead of culture Lean = something ‘management’ does Through the existing uses of the word “lean”, “Lean” changed to “efficient”, “elegant”, “simple”. And, after time, Lean meant few parts, few fasteners, monolithic structure, parts that fit together reliably These are all VERY good things, they are important things, they certainly make the job of creating a “Toyota-like” production system easier, BUT: All the enabler’s in the world don’t add up to what it is you are trying to enable. There’s also a little bit of this thinking going on too: Few parts is good, lean is good so there for few parts must be Lean. Which is fine IF we don’t stop there . . .! Looking for Quick Fix Charles Sheffer – The Boeing Company

Potential Barriers to Success Copying actions without understanding shift in thinking required Moving assembly lines Standard Work Point-of-use delivery of parts Empowered work teams Continuous Improvement or Kaizen All driven from Lean efforts, but simply doing them doesn’t mean it’s Lean Lean is viewed as an initiative instead of a culture change Lean is used as an excuse to cut people Lean is a slogan, a passing fad, a Dilbert cartoon

Summary Lean originated from the Toyota Production System (TPS) TPS is based on two important principles Just In Time (JIT) Continuous flow, Takt Time, Demand Pull Jidoka – automation with a human touch – zero defects Seven categories of waste Lean is a “Western” rendition of TPS Understand value from customer perspective and eliminate waste Some people confuse the embodiments with the culture Lean is a cultural journey, not simply a destination There are big rewards for companies who can do it

References Additional Resources “Toyota Production System”, Taiichi Ohno, 1988 Charles Sheffer, The Boeing Company www.strategosinc.com www.lean.org/WhatsLeanPrinciples.cfm Wikipedia Additional Resources The Machine That Changed the World, 1991 Womack, Jones, Roos “Decoding the DNA of the Toyota Production System” Steven Spear and H. Kent Bowen, Harvard Business Review, September – October 1999 http://www.agilean.com/wiki/