ten x intro to lean overview

Introduction to Lean Thinking

Christopher [email protected]

[email protected] (509) 220 4990

[email protected]

30 different industries

Has worked with over 35 different companies

Has worked in 28 states

And 5 different countries

From New start-ups to 100 year old firms

Small family businesses to Fortune 500 companies

Old Brown field sites to New Green field plant start-ups

And from the shop floor to the boardroom

From dirt clods to clean rooms

26 years of Experience

Primary Materials – metals, plastics & wood

Solar Energy Start Ups

Utilities

Medical Devices

Biotech

Contract Manufacturing

Forestry & Agriculture

Financial Services

Bakeries

Automotive

Construction Equipment

Food Processing

Consumer Electronics

Defense & Aerospace Electronics

Aerospace Structures

Telco Equipment .

Interior Fixtures & Furnishings

Lighting System Mfg.


Multiple Industries


Boeing Commercial Airplane

Alcoa

BF Goodrich Aircraft Sensors

Honeywell Aircraft Equipment

Johnson & Johnson’s BioSense Webster

Iomega

Purcell Systems

PV Power

GreenVolts

Mackay

Ecolite

Novation

Cyrus O’Leary Pies

Washington Trust Bank

Sample of Clients

Today Presentation

The purpose of todays presentation

• Learn the Principles of Lean Thinking

• Understand the 5 of the laws of Process Thinking

• How People are key

• Problem solving is a method that is necessary

Why Bother with Lean?

Why bother with the Lean Thinking?

• Customer response times improve

• Costs are reduced

• Errors and defects are eliminated

• Competitive advantages are created

Industry Week’s Best Plants winners and finalist from 1998 to 2002 results

• Average productivity up 30% per year

• Operational availability of equipment better > 95%

• Though put time of an order reduced by 70%

• Reduced Work In Process Inventory from 10 days

to 2 days, a 80% reduction

Reason To Believe Real Numbers

So what is Lean ?

• A time based business philosophy (model) − Customer focus− Flow is key - think value streams − Eye on eliminating waste− A management system of people, process

thinking and problem solving− Endless journey of continuous improvement

• Best known as the Toyota Production System (TPS)

Origins of Lean

Kiichiro & Eiji Toyoda

The Masters of Lean

Taichi Ohno

Spirit of Improvement• Challenge:

– Keep costs low– Keep quality high

• Requires:– A new way of thinking and a new spirit of improvement– Training in methods of reducing waste– Leadership at all levels– Implementation builds skill

• Theory is worthless unless it can be applied• We must put the principles into practice to understand them• Improvements can be made at little or no cost

Principles of Lean

Creating a Common Language

The

Fact

s

How do we get to a common place, the intersection?

Defining Value1. Any activity that changes the fit, form, or

function of a product or service.

2. Something a customer is willing to pay for it.

1st Law of Process Thinking

Defining a Value Stream A sequence of operations that transforms

the fit form or function of a product or service.

Three high level types of Value Streams:1. Process and Product Development / Design

2. Transformation / processing

3. Logistics

Value Stream

Another View of Value

Necessary Activity

“Less is More”Mistake proof

Setup Reduction

Simplify,Standardize,

& Sustain

Unnecessary Activity

Stop doing itToday!

Eliminate!

Process Improvement focus

Non-Value-Added Activity

Value Creating Activity

Creating Value

1. Processing (VA) - when the fit, form or function of the product or data changes.

2. Inspecting (NVA) - verifying, checking, inspecting and auditing the product or data – a comparison to a standard.

3. Transporting (NVA) - when the product or data changes location.

4. Storing (NVA) - any time when transformation, inspection, or transportation is not happening.

2nd Law of Process Thinking

Activities of Any Process

Every activity requires these basics components – the “4M’s”

1. Team Members: perform the work and activities of the value stream.

2. Materials: parts, data, off-loaded work, …..

3. Machinery: equipment, facilities, tools, computers, jigs, fixtures, ……

4. Methods: product design, inspection, processing, daily management and infrastructure, includes software.

3rd Law of Process Thinking

How do we create value in service processes?

Data = Materials • Data = a point in time, describing reality

Data + Questions = Information • Questions = Methods

• Methods = Knowledge

• Knowledge = Intellectual property

Information = Value ($)

How do we create value ?

We Must Define Waste Better

Many Different Tools

Waste Elimination

“The key to eliminating waste is to create flow”

Taichi Ohno

4th Law of Process Thinking

“Without flow, all there is…

is too much complexity” Chris Wood

Continuous Flow

. . . Means Steady Velocity

Traditional batch production: meandering stream with many stagnant pools and eddys

Lean production: pipeline with fast-flowing product

Objectives for Every Value Stream• Correct specification of value

• Elimination of wasteful tasks

• Flow where you can

• Pull where you can’t

• Manage toward perfection

Value Stream Objectives

Presenter

Presentation Notes

This is defined in James Womack's book Lean Thinking Define the value by defining the product requirement or design at each operation, at each customer Waste - CLOSEDMITT- Simple visual controls make the process transparent to all and keeps waste out – includes 5S, Kanbans, Standard Work and Standard Work Layout, Setup Reduction One-piece-Flow techniques, why add value if it is just going to sit in a pile Kanban – controls over production, transportation and show us abnormalities (logistics) Capable – right every time 6sigma, available – always able to run TPM, Adequate – capacity to match Takt time- Customer Demand

8 Steps of Continuous Flow

1. Collect data and analyze work flow.2. Design process sequence.3. Minimize the distance between machinery.4. Produce and move one piece at a time.5. Produce at the rate of customer’s consumption.6. Balance operations and standardize work in the

cell.7. Train personnel to operate multiple operations.8. Separate people from machines.

4 Stages of CFStage 1

Production in Specialized DepartmentsStage 2

Production in Product Cell

Stage 3

Production in Compact Cell with One-Piece Flow

Stage 4

Production in Compact Cell withOne-Piece Flow and Separation Man/Machine

How to move to Stage 2?

Getting Alignment – Process Walk

Stage 2

Which of the 8 steps were completed?Stage 2

Production in Product Cell

8 Steps of Continuous Flow

1. Collect data and analyze work flow.2. Design process sequence.3. Minimize the distance between machinery

Which of the 8 steps were completed in Stage 2?

Stage 2

Process walk after a Kaizen Workshop

BeforeStage 2

Before Kaizen Workshop

Produce at the rate of customer’s consumption.

Determine customer demand by calculatingTakt Time

(Available time/required product)

(420min/day)/210units/day= 2 min/unit

5th Law of Process Thinking

Key to material and capacity planning

A3 Thinking – Scientific Method of Problem Solving, the PDCA Cycle 32

A Complex Case Study

• Aerospace manufacture– Electronic and wiring fabrication/assembly

– 2,500 employees, two locations

– Products/services• Aircraft electrical wiring

• Flight deck electronics

• Electrical bay racks/shelves

• Cabin management/IFE systems

– Sales: $1 billion


Sample of Work

Presenter

Presentation Notes

How effective is this organization for promoting teamwork? For constraining teamwork? What happens in the morning meeting in a facility organized like this? IN many, the dept spvrs discuss whether they are behind schedule, and why, discuss issues of quality, like rework, and why, make some decisions about overtime, and perhaps discuss other issues. Typically, very little time is spent on resolving process issues that cross dept lines, and it is difficult to resolve resourcing issues because there is little sharing. Scheduling is often more a point of contention, because it is imposed, and inventory buffers the depts. Teamwork within a department can be great, but unless a senior production mgr encourages it, teamwork among departments has little structural re-enforcement. Additionally, this environment dis-connects the big C customer from every operations but the last, forcing an internal focus



• Commercial Aircraft Power Panels– Six power panels– 2’ x 3’ enclosure– 3,000 to 4,000 wires each– 100 to 200 connectors with standards– Completely custom/unique– Engineering defined 10 days before build


Departmental Layout

Presenter

Presentation Notes



Stage 2 Product Family Layout

Presenter

Presentation Notes



Stage 2- Cell Design


Stage 3 -Moving Line Layout

Presenter

Presentation Notes

How effective is this organization for promoting teamwork? For constraining teamwork? Similar to the previous, but pacing may become a teamwork issue. How to deal with it. While overall takt time must be maintained, it may be possible to allow the team to set varying times through out the day to allow for faster operation in the middle of the shift relative to the ends


Results Using Lean

Production Flow TimeWIP InventoryFloor Space

Before

21 Days5 Ship Sets

5,499 Sq. Ft.

After

8 Days1.4 Ship Sets2,691 Sq. Ft.

Change

62% less Time72% less WIP

51% less Space

Power Cells


Flight Deck


APO 3

23 Days5 Ship Sets

5,694 Sq. Ft.

7 Days1 Ship Set

3,024 Sq. Ft.


46% less Space

7 Days3 Ship Sets

2,400 Sq. Ft.

3 Days1 Ship Set

1,800 Sq. Ft.


25% less Space



Recommended Strategy: Model Value Stream

Lean Enterprise

Lean Awareness and Education• Quick look• Lean education• Lean Enterprise model

Lean Strategy• Analysis/Assessment• Alignment/Vision• Implementation Planning

Model VS Implementation• 90-day project• Learning by doing• Example of lean

Systems Resolution• Global issue resolution• KE approach• Project approach

Cell-by-Cell Transition• Strategic sequence• Area by area• Focused effort

KEs

KEs

5S Launch

40

Road Map to Lean Enterprise


People

• How we manage creates the culture we want• We need to manage so that we have a culture

of learning fast how to do things right

Skill(how to)

Desire(want to)

Knowledge(what to do)

Deep Learning Cycle = the right culture


People

• In the book The 5th Discipline, Peter Senge outlines what it takes to build a learning organization.

• He states there are 5 key elements:1. Shared Vision2. Team Learning3. Mental Models4. Personal Mastery5. Systems Thinking

Creating a learning organization


Principles and People

Learning Organization and TPS fit hand and hand:

1. Philosophy• Shared Vision• Mental Models

2. Process Thinking• Systems Thinking

3. People• Personal Mastery

4. Problem Solving• Team Learning


A3 Thinking

Why aren’t we more effective in our companies?– Communications issues– No common language or definitions within the

organization– Lack of use of facts & data– Leadership does not truly understand their responsibilities

We Lack a systematic way to solve problems!

The A3 problem solving method provides concrete structure to create a tremendously capable workforce.

A3 Thinking

Heading

PlanDo

Check Act/Adjust

Footnotes

Plan

Do

Check

Adjust(Act)

A3 Sheet of Paper (11”x17”)

A3 Thinking = PDCA Problem SolvingA Scientific Method

A3 Thinking

An A3 is a PDCA Story Board

Always the four steps of Plan, Do, Check & Act

Not a form, not even a standardized format

Adjusted for the type of story being told, from

quality problems to company strategy

No exact or specific look

It Tells a Story


A3 Thinking Benefits

A3 Thinking Benefits1. Logical thinking process2. Objectivity3. Results and process4. Synthesis, distillation & visualization5. Alignment6. Coherence within and consistency

across7. Systems viewpoint

One Final Thought

Spirit Ground rules 3P Hoshin Policy Deployment Scientific method – PDCA1.Collect data and analyze work flow.PQ analysis Process walk Value stream mapping2.Design process sequence.Process flow chart Value streams A3 problem solving 4M’s3.Minimize the distance between machinery. 5S Cell layout & design Visual controls4.Produce and move one piece at a time.Setup reduction Pull system SWIP POUS Kanban Poke yoke Six sigma5.Produce at the rate of customer’s consumption.Takt time calculation Level loading Heijunka Plan for Every Part TPM 6.Balance operations and standardize work in the cell.Standard work combination sheet Standard work layout sheets Time observation studies

Line balance chart7.Train personnel to operate multiple processes.

Cross-training Skills analysis matrix TWI – JI, JM, JR8.Separate people from machines.

Chaku-chaku Autonomation/Judoka Andons Right-sized machines