Core Process Pull: Little s Law in Action

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1 Core Process Pull: Little s Law in Action Dr. Lars Maaseidvaag August 12, 2010

2 Agenda Welcome Introduction of MBB Webcast Series Larry Goldman, MoreSteam.com Core Process Pull: Little s Law in Action Dr. Lars Maaseidvaag, MoreSteam.com Open Discussion and Questions 2

3 MoreSteam.com Company Background Founded 2000 Selected Customers: Over 250,000 Lean Six Sigma professionals trained Serving 45% of the Fortune 500 First firm to offer the complete Black Belt curriculum online Courses reviewed and approved by ASQ Registered education provider of Project Management Institute (PMI) 3

Master Black Belt Program Offered in partnership with Fisher College of Business at The Ohio State University Employs a Blended Learning model with world-class instruction delivered in both the

4 Master Black Belt Program Offered in partnership with Fisher College of Business at The Ohio State University Employs a Blended Learning model with world-class instruction delivered in both the classroom and online Covers the MBB Body of Knowledge with topics ranging from advanced DOE to Leading Change to Finance for MBBs Go to for more information about curriculum, prerequisites, and schedule 4

5 Core Process Pull: Little s Law in Action Dr. Lars Maaseidvaag Senior Master Black Belt MoreSteam.com MBB Faculty - Integrates the learning of Lean tools and concepts with advanced process modeling methods Operations research and management consulting Curriculum Director, Accenture/George Group 5

6 The Ultimate VOC Demand Why Pull? Demand can be satisfied ifidfrom a Replenishment Pull buffer Rep. Pull Demand Or demand can trigger a Core Process to begin Customer Demand Step 1 Step 2 Step 3 6

7 Core Process vs. Replenishment Pull Core Process Pull Focused on a Process Determines lead time Make to order Applicable everywhere Physical or electronic signals Replenishment Pull Focused on a Part Lead time is an input Make to stock Primarily manufacturing Physical or electronic signals 7

8 Little s Law Brought to Life Total lead time encompasses all aspects of the process value added and waste. Is total lead time a target that is set? A customer demand that must be met? Total Lead Time = Work in Process Throughput WIP is rarely managed directly, yet it directly impacts the Total Lead Time of the process, and can indirectly impact the Throughput of the process Core Process Pull is nothing more than a mechanism for controlling WIP, and therefore controlling Total Lead Time Throughput is determined by the capacity of the bottleneck, which is affected by staffing and scheduling, and all of the other components of OEE 8

9 WIP vs. Lead Time Lead Time VA time Little s Law Lower Boundary = Sum of Task Time of All Steps Task Time of the Bottleneck Starvation Boundary WIP 9

10 WIP vs. Throughput Throughput Max Capacity Starvation Boundary WIP Excess Boundary 10

11 Implementation Sizing Lead Time Too Little More Variation Too Much VA time Less Variation Starvation Boundary WIP Excess Boundary 11

12 Implementation Scope Core Process Pull system boundaries must cover all steps in a process from the bottleneck upstream to the nearest Replenishment Pull buffer CPP 1 Buffers decouple the process segments, allowing separate control of the segments Step 1 Step 2 Step 3 Bottleneck Rep Pull Bottlenecks, and all upstream steps must be included in the Core Process Pull boundaries CPP 2 Rep Pull Step 6 Step 7 Step 8 Step 6 Step 7 Bottleneck CPP 3 Customer Demand Step 4 Bottleneck Step 5 Rep Pull 12

13 Implementation Timing Incremental decreases in WIP will allow you to monitor and assess process health as the process stabilizes at each new WIP level Lead Time VA time Starvation Boundary WIP Excess Boundary 13

Core Process Pull Summary Provides a simple system to gain control over a process and stabilize lead time Is well suited to both transactional and

14 Core Process Pull Summary Provides a simple system to gain control over a process and stabilize lead time Is well suited to both transactional and manufacturing environments Should be considered and implemented early in any continuous improvement project Is a key component of a Lean transformation 14

15 Thank you for joining us 15

16 Resource Links and Contacts Questions? Comments? We d love to hear from you. Dr. Lars Maaseidvaag, Senior Master Black Belt - MoreSteam.com lars@moresteam.com Larry Goldman, Vice President Marketing - MoreSteam.com lgoldman@moresteam.com Additional Resources: Archived presentation: Core Process Pull Worksheet: Master Black Belt Program: 16

17 Join Us for Another MBB Webcast The Transactional Dilemma: Understanding Regression with Attribute Data Smita Skrivanek Thursday, August 26 11:00 AM (EDT) 17

18 Questions 18

19 Questions 19

20 Questions 20

Leaning Up State Government: It Can Be Done. Bill Demidovich, Jr. LeanOhio Department of Administrative Services June 26, 2013

Leaning Up State Government: It Can Be Done Bill Demidovich, Jr. LeanOhio Department of Administrative Services June 26, 2013 Agenda Welcome and Introductions Larry Goldman, MoreSteam.com Leaning Up State