lean workshop

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A ONEA ONE--DAYDAY

LEAN WORKSHOPLEAN WORKSHOP

BY BY

RONALDO S. MANURUNGRONALDO S. MANURUNGLEAN CONSULTANTLEAN CONSULTANT

PT. Kukdong InternationalPT. Kukdong International

December 29, 2010December 29, 2010

BOOLIM BUYING CORPORATIONBOOLIM BUYING CORPORATION

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A Little BackgroundA Little Background

A professional with over 15 years of experience from leading Lean implementation,

Quality Assurance team, ISO Quality Management system and about 4 years

in sales and marketing roles.

Certification:

Certified Job Instruction Trainer TWI (Training Within Industry), Lean

Associates, USA

Certified Lean Manufacturing, Nike Inc, Vietnam

Certified ISO 9000 Lead Auditor, Neville Clarke, Indonesia

Certified Quality Auditor, ASQ (American Society for Quality), USA

Certified Product Safety, RAM Consulting, Hong Kong

Certified Supplier Quality Auditor, Nike Inc, Singapore

Your Turn:

Name:

Company:

Service years:

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AgendaAgenda

Lean Lean -- Overview and HistoryOverview and History

Customer Value and WasteCustomer Value and Waste

Operational Stability, Visual Management Operational Stability, Visual Management

and 5Sand 5S

Problem Solving Problem Solving PDCAPDCA

Value Stream Mapping and Engagement Value Stream Mapping and Engagement

ModelModel

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Lean AwarenessLean Awareness

1.1. How much do you know about Lean?How much do you know about Lean?

2.2. What does Lean mean to you?What does Lean mean to you?

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Lean WorkshopLean Workshop

ObjectivesObjectives

Gain better understanding of LeanGain better understanding of Lean

Provided participant with basic Lean Provided participant with basic Lean

information information to begin Lean Journeyto begin Lean Journey

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LEAN LEAN OVERVIEW & OVERVIEW &

HISTORYHISTORY

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Lean Is . . .Lean Is . . .

A deeply rooted A deeply rooted

philosophyphilosophy of of

reflection and reflection and

continuous continuous

improvementimprovement

Lean Manufacturing : Is a system / approach to eliminating waste and enabling continuous Lean Manufacturing : Is a system / approach to eliminating waste and enabling continuous

improvement.improvement.

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Lean . . .Lean . . .

LEAN IS NOTLEAN IS NOT

A workshop or collection A workshop or collection

of toolsof tools

Internally focusedInternally focused

About assigning blame to About assigning blame to people for problemspeople for problems

Is not a one time cost Is not a one time cost

cutting exercisecutting exercise

LEAN IS LEAN IS

Total business mindset, Total business mindset,

sustainable, healthy, sustainable, healthy, responsive, focused and responsive, focused and

transformingtransforming

Externally focused on the Externally focused on the

CustomerCustomer

About bringing visibility to About bringing visibility to

problemsproblems

Ongoing process Ongoing process

improvementimprovement

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Lean HistoryLean History

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All we are doing is looking at the time line, from the moment the customer gives us an order All we are doing is looking at the time line, from the moment the customer gives us an order

to the point when we collect the cash. And we are reducing the time line by reducing the nonto the point when we collect the cash. And we are reducing the time line by reducing the non--

value adding wastes. value adding wastes. -- TaiichiTaiichi OhnoOhno

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Who else is doing Lean? And why?

General Electric General Electric -- Growth through LeanGrowth through Lean

Customer responsivenessCustomer responsiveness

New Balance New Balance -- Growth with US based manufacturingGrowth with US based manufacturing

Time to customerTime to customer

Starbucks Starbucks -- Growth through Promotional ProcessGrowth through Promotional Process Better consumer experienceBetter consumer experience

ParkerParker--Hannifin CorporationHannifin Corporation

Stanley Black & Decker, Inc.Stanley Black & Decker, Inc.

Deere & CompanyDeere & Company

Steelcase Inc.Steelcase Inc.

Westinghouse Air Brake Westinghouse Air Brake

TechnologiesTechnologies

Textron Inc.Textron Inc.

Danaher Corp.Danaher Corp.

Newell Rubbermaid Inc.Newell Rubbermaid Inc.

Boeing Co.Boeing Co.

Hillenbrand, Inc. Hillenbrand, Inc.

Illinois Tool Works Inc.Illinois Tool Works Inc.

Pentair, Inc.Pentair, Inc.

Tesco PLCTesco PLC

Johnson & JohnsonJohnson & Johnson

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Nikes Lean System based on Nikes Lean System based on

Toyota Production SystemToyota Production System

NNOOSS is an acronym foris an acronym for

NNOVUSOVUS

OORDORDO

SSECLORUMECLORUM

Which in Latin meansWhich in Latin means

A New Order has Begun A New Order has Begun

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What is NOS?What is NOS?

NOS NOS represents Nikes represents Nikes version of TPS (Toyota version of TPS (Toyota Production System) Production System)

A business philosophy A business philosophy

based on the systematic based on the systematic elimination of waste elimination of waste

by an empowered by an empowered workforce.workforce.

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Key Lean PrincipleKey Lean Principle

House of NOSHouse of NOS--LeanLean

BEST QUA

LITY

LOWEST CO

ST

ON TIME DELIVERY

KAIZEN MINDSET

STANDARDIZATIONPERFORMANCE

METRICS

STRATEGY

DEPLOYMENT

ERROR-

PROOFING

ANDON

STANDARD

WORK

PDCA

PULL

SYSTEMS

KANBAN

QUICK

CHANGE

OVER

TAKT

TIME

CONTINUOUS

FLOW

LEAN

LAYOUT

CULTURE OF EMPOWERMENT

OPERATIONAL STABILITY

Waste

Elimination

5S & Visual

ManagementTPM Heijunka

Mutual Trust &

Respect

Safety &

Ergonomics

Flexible

Workforce

Skills

Development

Teamwork &

Work TeamsAmplify the Voice of the People

Perfect the process

Continuously Improve

Focus on the Customer

Respect, challenge and grow the organization,

aligning people toward a common purpose.

Empower people along the way.

Identify non-value added work and systematically

eliminate the waste. Adopt best practice as

standards, bring stability to the process as

changes are implemented.

Create a culture of continuous improvement,

where problems are viewed as opportunities to

learn.

Understand your Internal & External Customer

needs. Be relentless in focusing time and energy

on work that brings value directly to your

customer.

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Key Lean PrinciplesKey Lean Principles

FFOCUS ON THE CUSTOMEROCUS ON THE CUSTOMER

PPERFECT THE PROCESSERFECT THE PROCESS

AAMPLIFY THE VOICE OF THE PEOPLEMPLIFY THE VOICE OF THE PEOPLE

CCONTINUOUSLY IMPROVEONTINUOUSLY IMPROVE

Understand your Understand your Internal & External Customer needsInternal & External Customer needs. Be . Be

relentless in focusing time and energy on work that brings value relentless in focusing time and energy on work that brings value

directly to your customer. directly to your customer.

Respect, challenge and grow the organization, aligning people toward Respect, challenge and grow the organization, aligning people toward

a common purpose. a common purpose. Empower peopleEmpower people along the way.along the way.

Identify nonIdentify non--value added work and value added work and systematically eliminate the systematically eliminate the

wastewaste. Adopt best practice as standards, . Adopt best practice as standards, bring stability to the bring stability to the

processprocess as changes are implemented.as changes are implemented.

Create a Create a culture of continuous improvementculture of continuous improvement, where problems are , where problems are

viewed as opportunities to learn.viewed as opportunities to learn.

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Goals of LeanGoals of Lean

Higher Quality

Lower Cost

Shorter Lead Time

Greater Flexibility

Mutual Trust & Respect

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Lean ThinkingLean Thinking

Lean Thinking is a Lean Thinking is a total total

business mindsetbusiness mindset focused focused on the elimination of on the elimination of

anything in a process that anything in a process that does not add value* to the does not add value* to the

outputoutput

Output is delivered by an Output is delivered by an

empowered teamempowered team

* Value is defined by the customer * Value is defined by the customer

(recipient of the process output)(recipient of the process output)

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CUSTOMER VALUE & CUSTOMER VALUE &

WASTEWASTE

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Focus on the CustomerFocus on the Customer

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Customer demand is the Universal Driver in Change.Customer demand is the Universal Driver in Change.

Customer

Order

Customer

Order

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Product Product

ShipmentShipment

Time

Lean helps to shorten the

timeline between the

customer order and the

product shipment.

Conditions that were satisfactory yesterday are not acceptable

today. Tomorrows demands will be even greater.

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Product Product

ShipmentShipment

Waste

Time

WASTE

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Its About the CustomerIts About the Customer

The Customer is the ONLY one who The Customer is the ONLY one who

defines the VALUE of the defines the VALUE of the product/service.product/service.

Customers Vote with their Dollars and Customers Vote with their Dollars and

Business. Business.

Anything not adding Value to the product Anything not adding Value to the product

is wasteful.is wasteful.

Ask yourself: Ask yourself:

Would your Customer pay for this?Would your Customer pay for this?

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Value Add definedValue Add defined

IncidentalIncidental:: Work that needs to be done but does not add direct Work that needs to be done but does not add direct

value to the part. An example would be items that Legal or value to the part. An example would be items that Legal or

Statutory requirements. Statutory requirements.

NonNon--value Add (WASTE):value Add (WASTE):Activities that add cost (resources, Activities that add cost (resources,

time, space) but not value to the product or service, as defined by time, space) but not value to the product or service, as defined by

the customerthe customer

Value AddValue Add:: Any activity that changes the shape, form, or function Any activity that changes the shape, form, or function

of material or information to meet customer requirementsof material or information to meet customer requirements

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NONNON

VALUEVALUE

ADDADD

VALUEVALUE

ADDADD

NECESSARYNECESSARY RREEDDUUCCEE KEEP!KEEP!

UNNECESSARYUNNECESSARY ELIMINATE!ELIMINATE!

DOESDOES

NOTNOT

EXISTEXIST

Value Add MatrixValue Add Matrix

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Focus on ValueFocus on Value

You get what you measure!You get what you measure!

The metrics you use internally The metrics you use internally

to measure the to measure the PerformancePerformance of of

the process against your the process against your

Customers Value Requirements Customers Value Requirements

Use the metrics as the Use the metrics as the CompassCompass

to guide the team in the to guide the team in the

direction of Continuous direction of Continuous

ImprovementImprovement

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Lean MindsetsLean Mindsets

Customer Defines Value Customer Defines Value

Total customer focus is the only option

Value add is defined by the customer

Anything that is not value add is defined as waste - Waste is

defined as anything that adds cost but not value to the product

Value -adding activities are those activities that change raw materials into something the customer is willing to pay for2

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WasteWaste

How should we determine Waste ?How should we determine Waste ?

Waste Waste is:is:

-- anything that takes time, resources anything that takes time, resources

or space but or space but

does not add to the valuedoes not add to the value of the of the

product or service delivered to the product or service delivered to the

customer.customer.

These are things the customer is

NOT willing to pay for. 30

WasteWaste

MuriMuri

OverburdenOverburden

MudaMuda

WasteWaste

MuraMura

UnevennessUnevenness

MUDAMUDA

The Ohno CircleThe Ohno Circle

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Toyotas Famous Pursuit of WasteToyotas Famous Pursuit of Waste

MudaMuda-- ((WasteWaste) The seven forms of Waste, and the ) The seven forms of Waste, and the

scope of this module. scope of this module.

MuriMuri-- ((OverburdenOverburden) Overworking or stressing of an ) Overworking or stressing of an

operator or machine. operator or machine.

MuraMura-- ((UnevennessUnevenness) The imbalance of workload ) The imbalance of workload

amongst workers.amongst workers.

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WASTE

WasteWaste

While process/products may be different, While process/products may be different,

the typical wastes found are similar:the typical wastes found are similar:

Transportation

Waiting

Overproduction

Defect

Inventory

Motion

Extra processing

TWO DIME

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Waste Waste -- AdditionAddition

While process/products may be different, While process/products may be different,

the typical wastes found are similar:the typical wastes found are similar:

Defect

Overproduction

Waiting

Not Utilizing Employees

Transportation

Inventory

Motion

Extra processing

WASTE

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Waste - DefinitionsTypes of WasteTypes of Waste DefinitionDefinitionTransportationTransportation

Movement between process steps that does not add Movement between process steps that does not add

valuevalue

WaitingWaitingIdle time created when material, information, people, Idle time created when material, information, people,

or equipment are not readyor equipment are not ready

OverproductionOverproductionGenerating more output (information, product) than Generating more output (information, product) than

the customer needs right nowthe customer needs right now

DefectDefectWork that contains errors, requires rework, or lacks Work that contains errors, requires rework, or lacks

something necessary for completionsomething necessary for completion

InventoryInventoryMore information, material, or projects onMore information, material, or projects on--hand than hand than

the customer needs right nowthe customer needs right now

MotionMotion Physical movement that does not add valuePhysical movement that does not add value

Extra processingExtra processingEffort that creates no additional value from the Effort that creates no additional value from the

customers viewpointcustomers viewpoint

Not Utilizing Not Utilizing

EmployeesEmployees

Old guard thinking, politics, high turnover, low Old guard thinking, politics, high turnover, low

investment in traininginvestment in training

Waste - Definitions

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Waste of TransportationWaste of Transportation

Cut parts being stored away from the place of use.Cut parts being stored away from the place of use.

( Distance JIT W/H to Stitching line 19 is 100 m )( Distance JIT W/H to Stitching line 19 is 100 m )

Result:Result:

We must inform tracking personnel where to pick up materialWe must inform tracking personnel where to pick up material

We will need additional storage location other than point of useWe will need additional storage location other than point of use

We need additional material movement personnel and equipmentWe need additional material movement personnel and equipment

J I T

W/H

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Waste of WaitingWaste of Waiting

People

Machinery

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Waste of Over ProductionWaste of Over Production

JIT W/HIn 5500prs

Out 1500prsMore parts = More money

Results extra machining

extra defects

extra handling

extra space

extra paperwork

extra people

extra overhead

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Waste of DefectWaste of Defect

Shape Out

V Neck Point Not Straight

Bottom Hem Stretched

Side Seam Length Uneven

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Waste of Inventory Waste of Inventory

Inventory

Poor

Scheduling

Machine

Breakdown

Defects

Transportation

Vendor

Delivery

Line

Imbalance

Long Lead

Times

Absenteeism

Communication

Problem

Obsolescence

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Waste of MotionWaste of Motion

Pick up the below box to make FIFO

What is causing this waste?

Twist and pick up parts from flow rack

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Waste of Extra ProcessingWaste of Extra Processing

What causes this waste?

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OPERATIONAL STABILITY, OPERATIONAL STABILITY,

VISUAL MANAGEMENT & 5SVISUAL MANAGEMENT & 5S

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StabilityStability

The condition of being stable or resistant to The condition of being stable or resistant to

changechange

American Heritage DictionaryAmerican Heritage Dictionary

The strength to stand or endureThe strength to stand or endure

MerriamMerriam--Webster DictionaryWebster Dictionary

In the simplest sense, it implies Predictability and In the simplest sense, it implies Predictability and

Repeatability in a process.Repeatability in a process.

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ImprovementImprovement

A change or addition that improvesA change or addition that improves

American Heritage DictionaryAmerican Heritage Dictionary

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The Dilemma . . .

Stability without Improvement = ?Stability without Improvement = ?

Improvement without Stability = ?Improvement without Stability = ?

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The Dilemma . . .The Dilemma . . .

Stability without Improvement = Stability without Improvement = StagnationStagnation

Improvement without Stability = ?Improvement without Stability = ?

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The Dilemma . . .The Dilemma . . .

Stability without Improvement = Stability without Improvement = StagnationStagnation

Improvement without Stability = Improvement without Stability = ChaosChaos

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Stabilize before you ImproveStabilize before you Improve

Which player did better in this round?Which player did better in this round?

Which is likely to do better after several rounds of play?Which is likely to do better after several rounds of play?

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Visual Recognition GameVisual Recognition Game

5 seconds to see the slide. 5 seconds to see the slide.

Write down the brands you recognize. Count Write down the brands you recognize. Count

the number of brands you recognize.the number of brands you recognize.

Best Global Brands 2009 Rankings as researched and ranked by Interbrand Consultancy Organization

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Coca-Cola

Microsoft

Nokia

Google

Intel

Hewlett-Packard

Gillette

BMW

Marlboro

Samsung

H&M

Pepsi

NescafeSAP

Sony

UPS

Canon

Dell

JPMorgan

Nintendo

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Visual Recognition GameVisual Recognition Game

5 seconds to see the slide. 5 seconds to see the slide.

Write down the brands you recognize. Count Write down the brands you recognize. Count

the number of brands you recognize.the number of brands you recognize.

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Visual Management GoalVisual Management Goal::

Is the use of controls that willIs the use of controls that will

enable an individual to enable an individual to immediatelyimmediately recognizerecognize

the standard, and any deviation from it.the standard, and any deviation from it.

This allows people a chance to This allows people a chance to seesee and and correctcorrect the the

situation situation beforebefore it becomes a problemit becomes a problem

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Visual Factory ExamplesVisual Factory Examples

Job Aids

Andon Board

Marked Floor Areas

Indicator LightMaterial ID

M/C Checklist

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Visual NonVisual Non--Factory ExamplesFactory Examples

Job Aids

Andon Board

Marked Floor Areas

Indicator LightMaterial ID

M/C Checklist

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The Visual Management VisionThe Visual Management Vision

There is nothing extra.There is nothing extra.

The environment is clean, in order, safe, and selfThe environment is clean, in order, safe, and self--maintaining.maintaining.

Standards are easy to recognize and abnormal conditions are Standards are easy to recognize and abnormal conditions are

easier to correct.easier to correct.

Performance and progress are readily apparentPerformance and progress are readily apparent

Zero Defects is a reality!Zero Defects is a reality!

Everyone ParticipatesEveryone Participates

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Elements of Visual Management: 5SElements of Visual Management: 5S

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Foundation of the Visual Mgmt: 5SFoundation of the Visual Mgmt: 5S

Sort (Seiri)

Clear out

Unused items

Straighten (Seiton)

Organize and label a

place for everything

Shine (Seiso)

Clean / spotless

Standardize(Seiketsu)

Create rules to sustain

the first 3 Ss

Sustain (Shitsuke)

Use regular management

audits to stay discipline

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1S : Sort (Organization)1S : Sort (Organization)

Distinguish Between What Is and Is Not NeededDistinguish Between What Is and Is Not Needed

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Before Before

After After

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2S: Stabilize2S: Stabilize

A Place for Everything; A Place for Everything; Everything in its placeEverything in its place

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2S: Stabilize 2S: Stabilize -- Location maps, IndicatorsLocation maps, Indicators

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Taped Locations and LabelingTaped Locations and Labeling

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3S: Shine (Cleanliness)3S: Shine (Cleanliness)

Keep Everything Clean: Eliminate all dirt, Keep Everything Clean: Eliminate all dirt,

oil, grease, scrap, shavings .all waste.oil, grease, scrap, shavings .all waste.

Any dirt or scrap is a sign of a problemAny dirt or scrap is a sign of a problem

Cleaning is inspection Cleaning is inspection regular cleaning regular cleaning

keeps you familiar with your workplace.keeps you familiar with your workplace.

Make cleaning part of everyday work.Make cleaning part of everyday work.

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4S 4S -- StandardizeStandardize

Develop a Standard Procedure for Develop a Standard Procedure for

1S, 2S and 3S 1S, 2S and 3S

Where there is no Standard there can be no KaizenWhere there is no Standard there can be no KaizenTaiichiTaiichi OhnoOhno

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5S: Sustain5S: Sustain

Continuously improving the 5S systemContinuously improving the 5S system

Everyone in the organization (not just Everyone in the organization (not just

manufacturing) is involvedmanufacturing) is involved

Requires self discipline and commitment from Requires self discipline and commitment from

everyone at all levels of the organizationeveryone at all levels of the organization

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55S Audit SheetS Audit Sheet0 1 2 3 4 5

Unused equipment or excess furniture and un-

necessary items on work station>4 4 3 2 1 0

Unidentified parts >4 4 3 2 1 0

Excess materials >4 4 3 2 1 0

No Notices are up to date >4 4 3 2 1 0

No notices and graphs indicate when

updated/removed>4 4 3 2 1 0

No rubbish in defined bin >4 4 3 2 1 0TOTAL

SCORE:

No gauge or indicator for standard of machine is

available>4 4 3 2 1 0

No aisleways are defined & clear >4 4 3 2 1 0

No cables off floor >4 4 3 2 1 0

No sample parts labelled and in defined location >4 4 3 2 1 0

No production parts in defined location >4 4 3 2 1 0

Rejects in defined location >4 4 3 2 1 0

No packaging in defined /standardized location >4 4 3 2 1 0

No notices in defined location >4 4 3 2 1 0

No cupboards, drawers, furniture labelled >4 4 3 2 1 0

No machines and workstations labelled >4 4 3 2 1 0

Broken or damaged labels >4 4 3 2 1 0

No production parts are in defined coding for

identification>4 4 3 2 1 0

TOTAL

SCORE:

No containers, baskets, or boxes have size, quantity,

and acceptable inventory level>4 4 3 2 1 0

No "Danger" marked with red coloring >4 4 3 2 1 0

Damaged tools or equipment without repair tag >4 4 3 2 1 0

No Walls, Floor &Windows clear and clean >4 4 3 2 1 0

No cleaning material and equipements available and

in place & desiginated area>4 4 3 2 1 0

TOTAL

SCORE:

Excess dirt / oil /dust on machines >4 4 3 2 1 0

No housekeeping schedule available and updatedNo t

Vis ible

>4

days

old

4 days

old

>3

days

old

>2

days

old

>1

days

old

No standard of housekeeping displayed in area >4 4 3 2 1 0

No cupboard standard displayed on outside

(except if "Personal")>4 4 3 2 1 0

TOTAL

SCORE:

None of 5S Training percentage of peopleNo Plan

or

Record

Only

Planned>20% >50% >80% 100%

No previous audit items displayed & corrected 0 1 2 3 4 >4

No 5S improvement activities documented 0 1 2 3 4 >4

TOTAL

SCORE:

STABILISE

T

O

T

A

L

S

E

C

T

I

O

N

S

C

O

R

E

=

L

O

W

E

S

T

S

C

O

R

E

X

4

NOTES

SORT

5S ItemsSCORE

SCORE

SUSTAIN

T

O

T

A

L

S

E

C

T

I

O

N

S

C

O

R

E

=

L

O

W

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S

T

S

C

O

R

E

X

4

T

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T

A

L

S

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C

T

I

O

N

S

C

O

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E

=

L

O

W

E

S

T

S

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X

4

STANDARDISE

T

O

T

A

L

S

E

C

T

I

O

N

S

C

O

R

E

=

L

O

W

E

S

T

S

C

O

R

E

X

4

Shine

T

O

T

A

L

S

E

C

T

I

O

N

S

C

O

R

E

=

L

O

W

E

S

T

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PROBLEM SOLVING PROBLEM SOLVING -- PDCAPDCA

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Lean Thinking, Methods and ToolsLean Thinking, Methods and Tools

Lean = Continuous ImprovementLean = Continuous Improvement

Lean = The Art of Lean = The Art of Problem SolvingProblem Solving

Lean = The Scientific MethodLean = The Scientific Method

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Problem Solving MethodProblem Solving Method

PDCA: Plan PDCA: Plan Do Do Check Check ActionAction

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Basic Types of A3 ReportBasic Types of A3 Report

1.1. Problem Solving StoryProblem Solving Story

Tell a Tell a problem solvingproblem solving story A standard exists story A standard exists

that is not being metthat is not being met

2.2. Proposal StoryProposal Story

Tell a Tell a proposalproposal story whenstory when you have a you have a

proposed plan or policy that needs approval proposed plan or policy that needs approval

and/or buyand/or buy--inin

3.3. Status StoryStatus Story

Tell a Tell a statusstatus story whenstory when you need to informyou need to inform on on

progress toward a plan or agreed upon goal progress toward a plan or agreed upon goal

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Basic Types of A3 ReportBasic Types of A3 Report

PROPOSAL

STORY

PROBLEM

SOLVING

STORY

STATUS

STORY

INFO

STORY

PROPOSAL

STORIES REPORTING STORIES

Problem Consciousness Current Situation

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Scientific Method in Practice@Scientific Method in Practice@

ObservationObservation background, facts, questions background, facts, questions

TheoryTheory model of understandingmodel of understanding

HypothesisHypothesis prediction of outcomeprediction of outcome

ExperimentExperiment testing of Hypothesistesting of Hypothesis

ResultsResults objective evaluation of experimental outcomeobjective evaluation of experimental outcome

ConclusionsConclusions proof or disproof of Theory, based on knowledgeproof or disproof of Theory, based on knowledge

And measures derived from resultsAnd measures derived from results

PlanPlan

DoDo

CheckCheck

Action /Action /

AdjustAdjust

ACT

PLAN

CHECK

DO

*GTS Grasp the Situation

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PDCA is a Systematic Way of ThinkingPDCA is a Systematic Way of Thinking

Plan Plan Identify the problemIdentify the problem

Analyze for root causeAnalyze for root causeFormulate countermeasuresFormulate countermeasures

Develop implementation planDevelop implementation plan

DoDo Communicate planCommunicate plan

Execute planExecute plan

CheckCheck Monitor progress of planMonitor progress of planModify plan if necessaryModify plan if necessary

Monitor resultsMonitor results

AdjustAdjust Evaluate resultsEvaluate results

Standardize effective countermeasuresStandardize effective countermeasuresStart PDCA againStart PDCA again

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Lean Problem Solving ImageLean Problem Solving Image

Big Vague ConcernBig Vague Concern

BreakdownBreakdown

Go SeeGo See

Why?Why?Why?Why?Why?Why?Why?Why?Why?Why?

Grasp the SituationGrasp the Situation Actual vs, StandardActual vs, Standard

Actual vs. IdealActual vs. Ideal

5 Why Analysis5 Why Analysis

Root CauseRoot CauseCountermeasuresCountermeasures

When solving When solving

problems, dig at the problems, dig at the

roots instead of just roots instead of just

hacking at the hacking at the

leaves.leaves. ~Anthony J. ~Anthony J. D'AngeloD'Angelo, , The College Blue The College Blue

BookBook

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Typical PDCA one page flowTypical PDCA one page flow

THEME/TITLE

Title (what are you talking about?)

PRESENT SITUATIONCurrent Conditions

What is the problem youre trying to solve?

GOAL/TARGET

What specific outcomes are required?

CAUSE ANALYSISWhats the cause of the problem?

COUNTERMEASUREProposed Countermeasure

Author:

Version, Date:

IMPLEMENTATION PLAN

Who, what, when, where

FOLLOW UP / UNRESOLVED ISSUES

How are you going to measure the results?

What issues can be anticipated?

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Typical PDCA one page flowTypical PDCA one page flow

THEME/TITLE

What do you REALLY want to accomplish? Do what

to what

Present Situation

Should be DETAILED and FACT-FILLED

What should be happening (ideal)?

What is actually happening (current)?

What is the GAP between the current and ideal?

What is the extend?

What is the Rationale - Why should this problem be

addressed/ what would happen if it werent addressed?)

TARGET

Do What Action word (increase, decrease)

To What Focus area (object of the action)

How Much Quantifiable measurement, relates to

standard

By When Specific date

CAUSE ANALYSIS

Problem statement

Determine the Root Cause based on FACT, investigation

results, reasonable assumptions

COUNTERMEASURE

Proposed short term (contains the problem, stops the

bleeding) and long term solution (addresses the root

cause)

Why Recommended? (Evaluate based on cost, timeliness,

feasibility, effectiveness, impact)

FOLLOW UP

How will you CHECK against your plan?

Check Method, Frequency and Who will check

Target & Actual (make it visual)

Recommended Actions

Author:

Version, Date:

IMPLEMENTATION PLAN

Tell us the who, what, when and status (green = ok, red =

not ok)

80

PDCA Problem Solving PDCA Problem Solving A3 ThinkingA3 Thinking

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81

PDCA: PLAN

PDCA: PLAN

PDCA: PLAN

PDCA: PLAN

PDCA: PLAN

PDCA: DO

PDCA: CHECK

PDCA Problem Solving PDCA Problem Solving A3 ThinkingA3 Thinking

82

83

Mastering the Art of Problem SolvingMastering the Art of Problem Solving

No Problem is problemNo Problem is problem

Problems are opportunities Problems are opportunities

to to learnlearn

Hiding problems Hiding problems

undermines the systemundermines the system

Reward efforts to Reward efforts to uncover uncover

problemsproblems and turn them and turn them

into opportunities for into opportunities for

improvement.improvement.

84

PDCA Thinking at Lean OrganizationsPDCA Thinking at Lean Organizations

D

P

C

A

Business Planning

Kaizen

Daily Work

Strategy Deployment

ACTIVITIES

TOOLSA3 Strategies

Problem Solving

Activity Planning

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85 86

VALUE STREAM MAPPING & VALUE STREAM MAPPING &

ENGAGEMENT MODELENGAGEMENT MODEL

87

Lean ImplementationLean ImplementationWhy do Value Stream Mapping?Why do Value Stream Mapping?

Implementation without a plan will lead to disasterImplementation without a plan will lead to disaster

A Value A Value

Stream Map is Stream Map is a simple a simple

picture that picture that helps you helps you

focus on flow focus on flow

and eliminate and eliminate the wastethe waste

Finished GoodsAssembly

Layout

Welding

6 x / Day

PC & L

Daily

Level Box

DA1

DA2

DA3

C/O Time =

CT =

TAKT Time

3 Shifts

DT =

Scrap =

Stamping

0 Overtime

2 Shifts

Max Size

# Material Handlers

C/O Time =

CT =

TAKT Time

3 Shifts

DT =

Scrap / Rework =

C/O Time =

CT =

TAKT Time

3 Shifts

DT =

Scrap / Rework=

Small Lot # Operators

Customer

X pcs / month

Std Pack Qty

# Shifts

WIP =

WIP = WIP =

Steel Supplier

Inv.Time

Proc.TimeTPc/t = ?

? days ? days ? days ? days

? days ? days ? days

MAP THE FLOWS !

Eyes for Waste . . . Eyes for Waste . . .

. . . Eyes for Flow. . . Eyes for Flow88

Introduction to Value Stream MappingIntroduction to Value Stream Mapping

Design Raw Materials

Assembly Plants Distribution Customer

Parts Manufacturing

A Value Stream includes all elements (both value added and

non-value added) that occur to a given product from its inception through delivery to the customer.

Requirements

Definition of Value StreamDefinition of Value Stream

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89


VALUE STREAM

PROCESS

Sewing

PROCESS

Finishing

PROCESS

Preparation

FinishedProduct

RawMaterial

Typically we examine the value stream from raw

materials to finished goods within a plant.

It is also possible to map business processes

using Value Stream Mapping.

PROCESS

Cutting

90

Value Stream Mapping (VSM)Value Stream Mapping (VSM) is a handsis a hands--on process to on process to

create a graphical representation of the process, material create a graphical representation of the process, material and information flows within a value stream.and information flows within a value stream.


Layout

Welding

6 x / Day

PC & L

Daily

Level Box

DA1DA2

DA3

C/O Time =

CT =

TAKT Time

3 Shifts

DT =

Scrap =

Stamping

0 Overtime

2 Shifts

Max Size

# Material Handlers

C/O Time =

CT =

TAKT Time

3 Shifts

DT =

Scrap / Rework =

C/O Time =

CT =

TAKT Time

3 Shifts

DT =

Scrap / Rework=


Customer

Xpcs/ month

Std Pack Qty

# Shifts

WIP =

WIP = WIP =

Steel Supplier

Inv.TimeProc.Time

TPc/t = ?? days ? days ? days ? days


Future State Material, Information and Process Flows

with total Product Cycle Time


Definition of Value Stream MappingDefinition of Value Stream Mapping

91

Provide the means to see the material, process Provide the means to see the material, process

and information flows.and information flows.

Support the prioritization of continuous Support the prioritization of continuous

improvement activities at the value streamimprovement activities at the value stream

Provide the basis for facility layoutProvide the basis for facility layout

Eliminate Waste

AND...

Objectives of Value Stream MappingObjectives of Value Stream Mapping


92

Map the Current State

Analyze the Current State

and

Design the Future State

Tues. & Fri.

PC & L

MRP MSS

# times/day

Steel

Supplier

Steel

Pin

# pcs

# days

or shifts

I II

I

Stamping

Downtime

Changeover Time=4 hr

2 Shifts

TAKT =

2 Presses

Cycle Time =

ChangeOver

Welding

Layout

Scrap/Rework

Downtime = 20%

Uptime

# Operators

Cycle Time =

Weekly Build ScheduleDaily Ship

Schedule

Finished Goods

Overtime =

# Shifts =

Assembly

DT, Scrap

Rework

WIP =

Cycle Time =

TAKT =

Changeover Time =

Layout

= 10%

Scrap

? days ? days ? days ? days? days ? days ? days

Inventory TimeProcessing Time

TPc/t = ?

TAKT =

WIP =

WIP = WIP =

X pcs/month

Std. Pack Qty.

# shifts

Customer


Layout

Welding

6 x / Day

PC & L

Daily

Level Box

DA1

DA2

DA3

C/O Time =

CT =

TAKT Time

3 Shifts

DT =

Scrap =

Stamping

0 Overtime

2 Shifts

Max Size

# Material Handlers

C/O Time =

CT =

TAKT Time

3 Shifts

DT =

Scrap / Rework =

C/O Time =

CT =

TAKT Time

3 Shifts

DT =

Scrap / Rework=


Customer

X pcs / month

Std Pack Qty

# Shifts

WIP =

WIP = WIP =

Steel Supplier

Inv.Time

Proc.TimeTPc/t = ?

? days ? days ? days ? days


Create an implementation plan Create an implementation plan

and execute it !and execute it !

1ST 2ND 3RD 4TH 1ST 2ND 3RD 4TH

Establish TAKT & Flow in Tank Ass'y

Stamping Changeover Reduction

Reduce Stamping Buffer

Move Ass'y to Plant 10

Establish TAKT & Flow in Sender Ass'y

Pull To Sender Ass'y

Training

1999 2000

Activity

The ProcessThe Process


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93

Current State MapCurrent State Map

Select a Product FamilySelect a Product Family

Form a TeamForm a Team

Understand Customer DemandUnderstand Customer Demand

Map the Process FlowMap the Process Flow

Map the Material FlowMap the Material Flow

Map the Information FlowMap the Information Flow

Calculate Total Product Cycle TimeCalculate Total Product Cycle Time

Detail OffDetail Off--Line ActivitiesLine Activities

Step 1:Step 1:

Step 2:Step 2:

Step 3:Step 3:

Step 4:Step 4:

Step 5:Step 5:

Step 6:Step 6:

Step 7:Step 7:

Step 8:Step 8:

The StepsThe Steps

94


Step 1: Select a Value Stream (Product Family)Step 1: Select a Value Stream (Product Family)

Define value stream (product family)Define value stream (product family)

Identify value stream from the customer endIdentify value stream from the customer end

Product should pass through similar processes Product should pass through similar processes and common equipmentand common equipment

DoorDoor--toto--door in scope (within plant walls)door in scope (within plant walls)

List part numbersList part numbers

95

Current StateCurrent State

Step 2: Form a TeamStep 2: Form a Team

Select a cross-functional team

Select team members

who are familiar with

the product

Ensure that team

members are trained in the

use of VSM

Designate a champion (typically a line manager)

Cross Functional

Team

Manufacturing

PC & LMaintenance

Leadership

Product

Engineering

Industrial

EngineeringSensei

THIS IS CRITICAL

96

Current StateCurrent State

Step 3: Understand Customer DemandStep 3: Understand Customer Demand

Plan for Every PartPlan for Every Part

Production Control Production Control

(monthly/weekly forecasts)(monthly/weekly forecasts)

Production history (dayProduction history (day--toto--day, monthday, month--toto--month month

variation)variation)

Sales (product changes, new business, etc.) Sales (product changes, new business, etc.)

Customer

Demand/month:

Part A =

Part B =

Part C =

# of shifts =

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97


Step 4: Map The Process FlowStep 4: Map The Process Flow

Customer

Demand/month:

Part A =

Part B =

Part C =

# of shifts =

Inventory

Part A =

Part B =

Part C =

# of shifts =

FinishingSewingPreparationCutting

Takt =

C.T. =

D.T. =

FTQ = 90%

C/O Time =

Lot Size =

# of Shifts

WIP =

Takt =

C.T. =

D.T. = 20%

FTQ =

C/O Time =

Lot Size =

# of Shifts

WIP =

# of Shifts

ChangeoverDowntime FTQ

98


Step 5: Map The Material FlowStep 5: Map The Material Flow

Customer

Demand/month:

Part A =

Part B =

Part C =

# of shifts =

Inventory

Part A =

Part B =

Part C =

# of shifts =


Takt =

C.T. =

D.T. =

FTQ = 90%

C/O Time =

Lot Size =

# of Shifts

WIP =

Takt =

C.T. =

D.T. = 20%

FTQ =

C/O Time =Lot Size =

# of Shifts

WIP =

Takt =

C.T. =

D.T. =

FTQ =

C/O Time = 4 hrs.

Lot Size =

# of Shifts

WIP =

Changeover Downtime FTQ

2 x/

day

I

2 x/

week

Supplier

1,200 pcs

I

1,500 pcs

I

800 pcs

I500 pcs

99

Current State MapCurrent State MapStep 6: Map The Information FlowStep 6: Map The Information Flow

Customer

Demand/month:Part A = 705 pcs.

Part B = 600 pcs.

Part C = 1650 pcs.# of shifts =

Inventory

Part A = 750 pcs

Part B = 600 pcs

Part C = 1650 pcs

# of shifts =


Takt =

C.T. =

D.T. =

FTQ = 90%

C/O Time =

Lot Size =

# of Shifts

WIP = 550 pcs.

Takt =

C.T. =

D.T. = 20%

FTQ =

C/O Time =

Lot Size =

# of Shifts

WIP = 60 pcs.

Takt =

C.T. =

D.T. =

FTQ =

C/O Time = 4 hrs.

Lot Size =

# of Shifts

WIP = 25 pcs.


I I II

2 x/

day

2 x/

week

Supplier

1,200 pcs 1,500 pcs 800 pcs 500 pcs

PC & L

Weekly Build Schedule

Daily Ship Schedule

6 week rolling forecast

6 week rolling forecastWeekly Order

Weekly Order

100

Current State MapCurrent State MapStep 7: Calculate Total Product Cycle TimeStep 7: Calculate Total Product Cycle Time

Customer

Demand/month:

Part A = 705 pcs.

Part B = 600 pcs.

Part C = 1650 pcs.

# of shifts =

Inventory

Part A = 750 pcs

Part B = 600 pcs

Part C = 1650 pcs

# of shifts =


Takt =

C.T. =

D.T. =

FTQ = 90%

C/O Time =

Lot Size =

# of Shifts

WIP = 550 pcs.

Takt =

C.T. =

D.T. = 20%

FTQ =

C/O Time =

Lot Size =

# of Shifts

WIP = 60 pcs.

Takt =

C.T. =

D.T. =

FTQ =

C/O Time = 4 hrs.

Lot Size =

# of Shifts

WIP = 25 pcs.


I I II

2 x/

day

2 x/

week

Supplier

1,200 pcs 1,500 pcs800 pcs

500 pcs

PC & L

Weekly Build Schedule

Daily Ship Schedule

6 week rolling forecast

6 week rolling forecastWeekly Order

Weekly Order

.27 days .17 days.4 days .5 days

1.0 days.18 days.02 days.008 daysTPc/t = 2.5 days

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101


Step 8: Detail OffStep 8: Detail Off--Line ActivitiesLine Activities

Show on the map using general icons Show on the map using general icons

Detail on another sheet using either reference VSM Detail on another sheet using either reference VSM

and/or process flowand/or process flow--chartingcharting

IDies

Die Room

ReceivingDie Room

Shipping(Remove from

Schedule

Board)

Die Bench

IDies

2 shifts12 shifts

Schedule Board

(Forecast)

Fork Truck

Press Room

102


FIFO

Supermarket

Signal

Kanban

Withdrawal

Kanban

Production

KanbanLeveling

Physical

Pull

Kanban

arriving

in batches

Kanban

PathKanban

Post

First-In

First-Out

Flow

MAX 50 PCS

Process

Kaizen

Additional Mapping IconsAdditional Mapping Icons

103

Data CollectionData Collection

It is not necessary that attribute data be It is not necessary that attribute data be

precise. precise.

It is necessary that the information at least be It is necessary that the information at least be

directionally correct. directionally correct.

Knowing that uptime is 82.7% vs. 82% Knowing that uptime is 82.7% vs. 82%

is normally not necessary. is normally not necessary.

An assumption of 80%, however, An assumption of 80%, however,

when reality is 65% can be when reality is 65% can be

detrimental in that it may substantially detrimental in that it may substantially

misdirect the future state development misdirect the future state development

and the prioritization of improvement and the prioritization of improvement

activities.activities.

104

Data CollectionData Collection

Identify Opportunities for ImprovementIdentify Opportunities for Improvement

?

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105

Design Future State Design Future State -- PurposePurpose

Define how the plant will Define how the plant will

operate in the futureoperate in the future

Serve as the blueprint for Serve as the blueprint for implementationimplementation

Without it, the Current State Map is nothing Without it, the Current State Map is nothing

more than wallpaper !more than wallpaper !

PurposePurpose

106

Future State MapFuture State Map

The StepsThe Steps

Step 1:Step 1:

Step 2:Step 2:

Step 3:Step 3:

Step 4:Step 4:

Step 5:Step 5:

Step 6:Step 6:

Step 7:Step 7:

Validate Customer DemandValidate Customer Demand

Draw the Future State Process FlowDraw the Future State Process Flow

Map the Future State Material FlowMap the Future State Material Flow

Map the Future State Information FlowMap the Future State Information Flow

Calculate Total Product Cycle TimeCalculate Total Product Cycle Time

Detail OffDetail Off--Line ActivitiesLine Activities

Outline a Plan

107


Do It

Implement - Implement - Implement

Action - Action - Action - Action - Action

Check It - Follow up

108


A simple way to

approach the Future

State Map is to begin

by modifying the

Current State Map.

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109

Develop Lean mindset and muscle from

worker to leader

Lean Engagement ModelLean Engagement Model

110


Scoping thru CoachingScoping thru Coaching

Initial EngagementInitial Engagement

Scope the WorkScope the Work

PlanPlan Current & Future State Value Stream mapping,Current & Future State Value Stream mapping,

Gap & Root Cause Analysis, CountermeasuresGap & Root Cause Analysis, Countermeasures

DoDo Engagement Action Planning, Pilot Engagement Action Planning, Pilot -- ImplementationImplementation

Check Check AdjustAdjust

ACTACT

PLANPLAN

CHECKCHECK

DODO

111


When to apply the Engagement Model?When to apply the Engagement Model?

When you need to coordinate between many resources When you need to coordinate between many resources

across functions, value streamacross functions, value stream

When the work is larger When the work is larger

than the small than the small everyday changeseveryday changes

112

Roles & ResponsibilitiesRoles & Responsibilities

Lean CoachLean Coach

Socratic Method Socratic Method Ask Ask

QuestionsQuestions

Model and teach Lean Model and teach Lean

behaviorsbehaviors

Preparation leaders on their Preparation leaders on their

role and coach throughoutrole and coach throughout

Maintain focus on application Maintain focus on application

of Lean tools and philosophies of Lean tools and philosophies

ie, PDCA etcie, PDCA etc

Lead scoping effortLead scoping effort

Facilitate value stream Facilitate value stream

mappingmapping

Support team through action Support team through action

plan and checkplan and check--adjustadjust

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113


Team Champion Team Champion Leader Leader Process OwnerProcess Owner Accountable for the objectives of the Lean Accountable for the objectives of the Lean

efforteffort

Drives implementation of action plans Drives implementation of action plans

Conducts checkpointsConducts checkpoints

Communicates with coach, team and Communicates with coach, team and

stakeholdersstakeholders

Sponsor Sponsor -- LeadershipLeadership Motivates the teamMotivates the team

Actively involved (staff meetings, walking the Gemba)Actively involved (staff meetings, walking the Gemba)

Remove obstacles (workloads)Remove obstacles (workloads)

Provides top down direction on whatProvides top down direction on what

Supports bottoms up problems solving on howSupports bottoms up problems solving on how

Model Lean behaviorsModel Lean behaviors

Hold team accountableHold team accountable

Permission to try and maybe failPermission to try and maybe fail

Go slow to go fastGo slow to go fast

114


Stakeholders Stakeholders

Supplier and customer Supplier and customer

stakeholders provide stakeholders provide their perspectivetheir perspective

Remove obstaclesRemove obstacles

Participate in events, Participate in events,

checkpoints and checkpoints and

leadership reviews as leadership reviews as requiredrequired

115



Initial ContactInitial Contact

Understand the pull for Lean Understand the pull for Lean The WhyThe Why

Discuss Business Problems Discuss Business Problems The WhatThe What

Ask to engage the team Ask to engage the team The WhoThe Who

Set expectations on engagement model and coaching Set expectations on engagement model and coaching role. There is no finish line.role. There is no finish line.

116



Go to SeeGo to See

Seek different Seek different

perspectivesperspectives

Gather facts, anecdotes Gather facts, anecdotes

and observationsand observations

Engage middle Engage middle

management and workersmanagement and workers

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117



Have leaders demonstrated Have leaders demonstrated

commitment?commitment? Involved and coachableInvolved and coachable

Support the teamSupport the team

Assigned key participantsAssigned key participants

Decision pointDecision point

Is this work prioritized?Is this work prioritized?

Strategic InitiativeStrategic Initiative

Burning platformBurning platform

118



Focused Problem SolvingFocused Problem Solving

Committed LeadershipCommitted Leadership

Committed Team MembersCommitted Team Members

Clear Roles & ResponsibilitiesClear Roles & Responsibilities

Clear Success CriteriaClear Success Criteria

See Together, to Understand Together in order to Act See Together, to Understand Together in order to Act

TogetherTogether

119



Scope ObjectiveScope Objective

Clarity & Agreement on ProblemClarity & Agreement on Problem

Leadership participates & must signoffLeadership participates & must signoff

Leadership buyLeadership buy--in & commitment of resourcesin & commitment of resources

Preparation for successful value stream mapping Preparation for successful value stream mapping

efforteffort

120



Scoping EffortScoping Effort

Refine Problem Statement with teamRefine Problem Statement with team

Identify Process startIdentify Process start--end, Objectives and Ownerend, Objectives and Owner

Identify inIdentify in--out of Scopeout of Scope

Identify Lean teamIdentify Lean team

Identify SIPOC Identify SIPOC (Supplier, Input, Process, Output, Customer)(Supplier, Input, Process, Output, Customer)

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121



Outcome of Scoping EffortOutcome of Scoping Effort

Clear objectives for Lean effortClear objectives for Lean effort

Clear guardrailsClear guardrails

Committed teamCommitted team

Framework for Value Stream Mapping Effort Framework for Value Stream Mapping Effort

includes:includes:

Team identifiedTeam identified

Dates confirmed Dates confirmed

122

Thoughts for TodayThoughts for Today

Tell me and I will forget, show me and I may remember, involve me

and Ill understand. Chinese Proverb

Lean is not a program, it is a total strategy. Alex Miller, Professor of Management at The University of Tennessee

Many people think that Lean is about cutting heads, reducing the work

force or cutting inventory. Lean is really a growth strategy. It is about

gaining market share and being prepared to enter in or create new

markets. Ernie Smith, Lean Event Facilitator in the Lean Enterprise Forum at the University of Tennessee

There are three kinds of leaders. Those that tell you what to

do. Those that allow you to do what you want. And Lean

leaders that come down to the work and help you figure it out. John Shook

123 124

THANK YOUTHANK YOU

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