0. Group Exercise Description
Based on your previous work, you’ve been awarded a contract by the Left Dogleg Bank of America (LDBA) to facilitate a lean event on the Credit Card process
The current daily demand is 25 and there are 15 minutes in a day.
The Credit Card company is looking for help in increasing productivity and reducing variation
It’s critical that standard work be created to they can proliferate the model throughout all locations
They’ve asked that you focus on the 4 operators that complete the forms
Data Entry for Credit Card Application - Green
Background Credit Checks - Blue
Set the Customer up in the System - Red
Issue the Card - Yellow
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Introduction To Just In Time (JIT)

1. Group Exercise Instructions
This is the standard model we’ll follow for the event
Calculate Takt Time
Time study credit card operations
Create Percent load
Balance work to Takt
Create Standard work layout
Define Standard WIP
Create Standard work combination for operators
Complete each tool and be prepared to discuss your proposal with the class along with expected productivity results
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Introduction To Just In Time (JIT)

2. Introduction To Just In Time (JIT)
Takt Time Calculation
Takt Time = Available time
Demand
Available time = 15 min
15 min * 60 sec = 900 sec
Demand = 25 pc
Takt Time = 900 sec = 36sec/pc
25pc
A Takt Time of 35 sec mean that we must complete a form every 36 sec to meet customer demand. Make sure everyone understands this.
There may be discussion about subtracting time for breaks, cleanup etc. For consistency keep 15 minutes as the available time.
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3. Introduction To Just In Time (JIT)
Time Observation Form
Each team should have a Time Observation form for each operator
Remember – Keep the watch running (this insures we capture normal variation)
Double check their math – Each dot should take around 4 – 5 sec each (Ex. 2 Red dot Cycle Time should be 8sec)
We want lowest repeatable time for each element
Encourage note taking when using this tool – This normally reveals additional opportunities to eliminate waste. (Use Time Observation Form.xls)
Encourage the team to collect 10 cycles for each operator. There may be times where 10 runs would not be economically feasible, however the more cycles collected - the more accurate the repeatable times will be.
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Introduction To Just In Time (JIT)
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4. Introduction To Just In Time (JIT)
Before Percent Loading Chart 48 40 32 24 16 8
T/T=36 Sec
Emphasize again the space under the Takt time line. This doesn’t mean people are lazy, they are likely over producing.
First sum up total operator Cycle Time to complete one form
16 sec + 24 sec + 8 sec + 16 sec = 64 sec
Then divide the total operator cycle time by Takt time
64 sec / 36 sec = 1.8 Operators
The necessary theoretical staffing for this process is 1.8 Operators
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Introduction To Just In Time (JIT)
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5. Introduction To Just In Time (JIT)
After Percent Loading Chart 48 40 32 24 16 8
1 2
T/T=36 Sec
Someone will usually ask what happens to the operators no longer needed to perform the process. We should encourage leadership to use these resources as leverage to grow the business. Sometimes additional planned hiring can be avoided.
To balance the operations to Takt
Combine Operations 1 and 4 = 32 sec
Combine Operations 2 and 3 = 32 sec
2 Operators
50% productivity improvement
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Introduction To Just In Time (JIT)
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6. Introduction To Just In Time (JIT)
Standard Work Layout Sheet
Oper. 2
Oper. 1 1
Oper. 3 2
Takt Time = 36 Sec
Focus on how the second operator can perform the 1st and last operations (necessary to balance to Takt) due to the U shape layout.
Oper. 4
Standard WIP = 3pc
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Introduction To Just In Time (JIT)
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7. Introduction To Just In Time (JIT)
Standard Work Combination Sheet
This is an eye chart. The dashed line show the sequence and then return to the first step to repeat the process. Emphasize effective application of the Standard Operation tools should provide the most efficient work sequence. That it what’s documented, and the combination sheet is the tool that we’ll use to monitor the health of the process. If a process has strayed from the expected operating parameters, the first question is “where you following standard work”?
This is a Standard Work Combination for Operator 2
Performs operations 2 - Blue and 3 – Red under Takt Time
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Introduction To Just In Time (JIT)
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8. Introduction To Just In Time (JIT)
Key Learning Points
Takt Time
What happens to Takt when demand
Goes up? Takt time is smaller (less time to complete product)
Goes down? Takt time is bigger (more time to complete product)
What happens to staffing needs when Takt
Goes Up? Staffing needs increase
Goes Down? Staffing needs decrease
We should look at Takt monthly or even more frequent depending on demand patterns
Time observations
Break down to small elements
Copious notes – May observe waste during timing
Multiple runs must be timed to capture variation
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Introduction To Just In Time (JIT)

9. Introduction To Just In Time (JIT)
Exercise Take-aways
Percent Load Chart
Helps us see graphically where waste (wait time, overproduction) is occurring
Theoretical Staffing is an approximation based on how possible it is to split up and combine operations for balancing purposes
Standard Work Layout
This example shows how a “U” shaped layout enabled us to combine operations 1 and 4 to balance work to Takt
Can also be used a visual training tool
Standard Work Combination Sheet
This where we capture the best work sequence
It is a visual description of how the operator work sequence flows
Also a great tool for training
Managers can use to audit processes and monitor variation
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Introduction To Just In Time (JIT)