lean practice an effort worthwhile

Breakthrough Consultancy Enterprises Limited © 2012 1

A process is lean when it delivers products and services

that the customer wantsat an acceptable price to value

ratio

Lean this way

This presentation is a run-through of what makes Lean Practice

important for modern business


Essential Lean PracticeLean Principles

Approach Making change

Formula for success• Meet customer needs• Design and operate flexible processes• Make value flow visibly• Operate to smoothed pull demand• Head to simplicity and perfection• Reap benefits for the business

• Customise Lean Practice• Adopt a flow approach• Use simple methods first• Attempt Six Sigma analysis• See the Big Picture

• Address social system change levers• Apply programme/project controls• Use change methods liberally• Recognise service differences


What’s stopping your

business being the

best?


Lean formula

Load Capacity Gap

Valuedeman

d

Failuredemand

RunnerRepeaterStranger

Work Waste

Value adding

Necessarynon-value

adding

Non-valueadding

PositiveUnderload – not greater than 80%

NegativeOverload – Muri

Actions and feedback loops• Reduce failure demand• Reduce wastes• Spread load• Reduce variation• Use slack capacity to improve efficiency• Price to value ratio impact

+ +

+


Waste not - want a lotHuman system Natural, unrecognised waste

Push down, pop upTreat the whole, not the parts

Not just tools and techniquesSelf disciplinePractice and trainingFat reductionMistakes are opportunitiesBeing green

FastFlexibleFit for purposeAdaptable in performance

Lean is continuous learning

Lean fitness

Applying lean is not just driving out waste

Value addedNot inventoryNot delays or poor communicationNot waste

Customer willing to pay for ...


LeanPrinciples


Journey to where Everything is Right

Lean Principles1. Specify value from the customer's viewpoint2. Design and operate processes to be flexible by identifying the

value stream3. Make value flow – avoid batches and queues, never delay a

value-adding step by non-value adding4. Operate only when needed in response to short pull demand

from customer – no inventory or idle resources5. Head to perfection – simplicity, defect free, delivering exactly

what the customer wants, when, at a fair price with minimum waste

6. And there will be benefit for the business as well in increased productivity and lower cost


Lean themesCustomer

Beginning and end

PurposeBig Picture

and end game

SimplicityAnything else is

dangerous

WasteEndemic – it’s everybody’s

problem

ProcessDesign for horizontal

movement

RegularityNo surprises in

operations

FlowContinuous

movement from start to end

EvennessLevel activity – or sink in killer wave

PullSynchronise to the

customer beat

PreventPrevention is better

than rework

TimeReduce cycle time

to make and deliver

ImproveUse continuous improvement

relentlessly

PartnershipApply win-win in all

areas

GembaFacts from the

frontline

InvestigateQuestion and listen

in the stream

VariationReduce variation, anticipate change

OverburdenProtect from overloading

Think smallProcess models

from the smallest component

TrustPlatform for sharing

and action

KnowledgeBuild explicit and

implicit understanding

HumilityNo one has all the

answers

VisibilityMake operations transparent and

visible

PostponeRetain flexibility as

long as possible

NetworkOpportunities for

value added in the stream

ParticipationInvolve all

stakeholders, share data


LeanApproachOptions


Lean Enterprise House

Right process gives right resultsValue from developing peopleOrganisational learning

Challenge, GembaProcess mapping, value stream mappingPDCA, FAIR

Kaizen7 wastesJITPareto

Teamwork5 whys5S

Systems thinkingPolicy Deployment

Your way


Intuitive Lean

Simple and effective approaches

Plan

Do

Check

Act

Focus

Align

Integrate

Respond

PDCAPDCA FAIRFAIR

A3 problem solvingA3 problem solving• Current condition• Goal• Root cause analysis• Countermeasures• Confirmation• Follow-up


Flow Question Framework

CreateCan we produce what the customer wants when it is needed?Can we deliver what the customer wants and prepare for the next according to real demand?

Maintain Organise

Measure

Can we keep the flow going so that it does not stop?Can we maintain a predictable flow rate in order to achieve planned performance?

Are we organised to support flow through the whole process chain?Can we deal with variation?Can we react quickly to resolve problems and recover?

Do we measure to promote actions which support flow?Do we know what it needed at each point in the process chain to achieve the overall goal?Are we developing the right resources and skills?

VISION REWARD

CUSTOMER NEEDS SATISFACTION

DESIGN DELIVER


Lean Techniques

Techniques can be sophisticated

7 wastes - TIMWOOD7 wastes - TIMWOOD• Transport• Inventory• Motion• Waiting• Over-production• Over-processing• Defects

5S5S• Sort• Simplify (straighten)• Scan (sweep, shine, scrub)• Standardise (stabilise, secure)• Sustain• [Safety]

Process analysisProcess analysis• Mapping• Process times• Process cycle efficiency


Those Japanese and other wordsMuda Waste: the one to concentrate on

Muri and mura cause wasteWhere else does it come from? Human systems

Muri Over-burden: near capacity resources do not work optimallyMura Unevenness: fast uninterrupted flow not possible with uneven demand – queues and lead time build upCould the root cause of everything but probably it’s circular

Gemba See for yourself what is happening in the workplace

Heijunka Level to schedule – the secret weaponSMED Single (digit) Minute Exchange of Die – true for service

too

Pokayoke Failsafing and mistake proofing

Genchi Genbutsu Facts for correct decisions and consensus from the source

Hansei Relentless reflectionKaizen Continuous improvement

TRIZ Theory of Inventive Problem Solving

Jidoka - Andon Automation with human intelligence with signalling to stop process


Makingchange


Methods and skills

Levers in the social system• Today’s problems come from yesterday’s solutions• Behaviour grows better before it gets worse• The cure can be worse than the disease• Faster is slower• The areas of highest leverage are often the least obvious

Programme and project management• Business case – link to corporate objectives• Governance – who is in charge?• Plan, agree, monitor and re-plan• Managing issues and risks

Business change• Kotter• Lewin: Unfreeze, Alter, Re-freeze• 4Cs: commitment, communication, co-production, consistency• Nudging behaviour in the direction of Lean• Benefit realisation: need for long-term measurement of progress


Service dimensions

Service characteristics• Invisibility • Intangibility• Simultaneous production and consumption • Consumer involvement • Complexity and variability • Measurement difficulty

Lean for better service• Making sure there is a customer• There is no inventory – just inactivity• Services come in types which behave differently• Adapt techniques for the service industry• Do not forget soft areas


Where is Six Sigma in Lean Practice?

Is it possible to have Lean without Six Sigma?• No• Unless the Lean project is light touch

Same infrastructure• Management awareness• Communication• Governance• Skills and resources• Coaching, support and training

Oversight• Unique initiatives• Programme management• Project management• Especially monitoring, control and reportingShared approach and techniques• Use Six Sigma DMAIC or DFSS• Descriptive data analysis• Statistical analysis e.g. hypothesis testing


A good readThe Lean Toolbox:The Essential Guide to Lean Transformationby John Bicheno and Matthias HolwegPICSIE Books 4th Edition 2009