Lean…

Are you doing the right things??

John Reynolds, Lean Six Sigma Master Black BeltAPICS Associate Lean Enterprise InstructorJohn.reynolds@mosaicco.com

Increased department production levels. Faster handling of expedited orders. Made rework center more productive. Added more quality control personnel. Increased employee utilization. Improved speed of repairing broken

equipment.

Great projects!?

So why aren’t we making any more money?

What is a problem?

What Should

Be

What

Really Is

GAP

You have to go…◦ Go to where the problem happens◦ Go to “Gemba”

You have to see…◦ Visual systems◦ Make problems visible

You have to ask…◦ Ask supervisors◦ Ask employees◦ Ask customers

Identifying problems

Types of Waste

Defects

Overproduction Waiting

Non-Utilized Resources Transportation

Inventory

Motion

Extra Processing

30 30

70

35

Value Added?• Is it something your customer is willing to pay for?• Is it done right the first time?• Does it provide a fundamental change in the product?

Non-ValueAdded

ValueAdded

50% reduction in NVA.

Have you asked your customer(s)?◦ Is this something that they care about?◦ Will this project solve that exact problem?

Have you gone to see the problem?◦ Do you understand the problem?◦ Do you think that this project will solve that

problem?

Is this problem worth solving?

Do you know the root cause? If not, can you find it?◦ 5-why◦ Cause Mapping◦ Brainstorming, etc.

Does it make fiscal sense?

Do you have involvement from all levels of the organization?

Is this problem worth solving?

Does this problem affect your company’s goals?◦ Is it aligned with what your company wants to be

and do?◦ Will it directly impact the bottom line?◦ Does it impact safety or environmental concerns?

Does it have management support?◦ Do they agree that this will help the company?◦ Will they provide the resources needed?

Is this problem worth solving?

Have you asked your employees?◦ Do they agree that this is a problem?◦ Do they agree that this project will solve this

problem?

Will this project add value to your customers?◦ How? …and this needs to be from the customer’s

perspective.◦ Do you know what the customer considers to be

value-added?

Is this problem worth solving?

If this is your first attempt at a project…◦ Is it the right size?

Small enough to complete Large enough to be worthwhile

Are you using data or anecdotes?

Are you focused on eliminating waste?

Are your people trained?◦ Lean Culture ◦ Lean Tools

Is this problem worth solving?

“Capacity” Problem

• Long lead times• Stockouts• Considering moving

this operation to another location.

“Product Damage” Problem

• $3 million per year in damaged product.

• Considering new support system that only costs $2 million.

Questions?