Applying Lean Principles to Any Process

Transcription

1 Applying Lean Principles to Any Process Michigan Manufacturing Technology Center 2013 MMTC

2 2 Lean Simulation Round 1 ACME, Inc. 1. Get into teams of 6 and sit next to each other in a straight line 2. Each team take the following: a) a stack of (recycled) paper b) 5 black pens c) 1 red pen d) 1 ruler

3 3 Lean Simulation Round 1 (5 minutes) Worker 1 Shear strips of paper as wide as the ruler one at a time ; Move strips to next person in batches of 3 Worker 2 Write the word Chrysanthemum on each strip of paper ; Move strips to next person in batches of 3 Worker 3 Write the word Rose on each strip of paper ; Move strips to next person in batches of 3 ; Switch to red pen at 3 minutes Worker 4 Write the word Snapdragon on each strip of paper ; Move strips to next person in batches of 3 Worker 5 Write the word Iris on each strip of paper ; Move strips to next person in batches of 3 Worker 6 Time/Score keeper

4 4 Lean Simulation Round 1 Time/Score Keeper (worker 6): Watch the clock and write down the following information: *** Tell worker 3 to switch back to their black pen when you receive a strip with red writing on it *** 1. Lead time: At what time did you receive your first good work piece? This should arrive as a batch of 3 2. Defect arrival time: At what time did you receive your first work piece with red writing on it (i.e. a defect)? This should arrive as a batch of 3 *** 3. Throughput: How many good work pieces did you receive (i.e. no red writing)? 4. Defects: How many defective work pieces did you receive (i.e those with red writing? 5. Time to find the defects: How long did it take to discover the problem (defect arrival time minus 3 minutes)?

5 5 Lean Simulation Round 1 How did our process perform? Fill out Scorecard

6 Lean Systems An Elevator Speech A Lean System is an organization whose product and service delivery processes are waste free. The people in a Lean System think, act and manage differently than people in any other organization. They understand and apply lean tools and analysis methods toward eliminating waste and non-value added work on a daily basis. Lean Systems were pioneered by Henry Ford beginning in 1908 and later perfected by Toyota beginning in the 1950 s. The goal of a Lean System is the uninterrupted flow of products, services and information. Achieving flow requires perfecting the performance of all its processes and using its resources more effectively than organizations who do not yet understand Lean. Building a Lean System is a never ending process requiring great courage by its leaders and practitioners. There are no spectators in a Lean System; everyone has a responsibility. Any focus on Departmental performance is replaced by a focus on process performance. Lean Systems are measured and managed on an hour by hour basis since one of the key indicators of performance in a Lean System is time. As Lean is implemented throughout an organization, Quality, Operating Costs, Speed of Delivery Systems, Customer and Staff Satisfaction approach world class levels of performance. 6

7 7 Lean Systems? What is it? A philosophy that demands short lead times to deliver defect-free low cost products and/or services A Lean system is achieved by eliminating waste in all aspects of the product or service delivery process What it is not. A headcount reduction strategy Demanding more from workers without providing the tools and strategies to achieve more Lean Improves Profits by Decreasing Time and Costs!

8 8 The Ford Production System One of the most noteworthy accomplishments in keeping the price of Ford products low is the gradual shortening of the production cycle. The longer an article is in the process of manufacture and the more it is moved about, the greater is its ultimate cost. Henry Ford, 1926

9 9 The Pricing Model Today Profit = Price - Cost Our Goal Our Challenge! Fixed (Set By The Customer) Profit Any increase in these areas of cost, decreases the profit! Burden Labor Materials Price (Fixed)

10 10 What Is Meant by Value Added? Value Added Activities (CPR) Those activities that deliver a product or create a service or information that meets customer requirements. 1. Work that the Customer is willing to pay for (will they ever see it?) 2. Work that Physically transforms the product, service or information (Are the before and after pictures any different?) 3. Work that is done Right the first time Non-Value Added Activities Those activities that consume time, resources or space, but do not add to the value of the product or service itself. Non-Value Added but Necessary Activities Those activities that do not add value but are CURRENTLY NECESSARY (legal, statutory, regulatory, etc.)

11 11 3 Faces of Waste in any Process Non-value added Work Waste (8 Wastes) Variation (Irregularity) Strain (Overburdened)

12 12 Waste Defined The elements of processes that only consume resources and add no value to the product Waste only adds cost and time Remember this about WASTE Waste is a symptom of underlying problems, not a root cause Waste points to problems in the system, thus making them opportunities

13 13 8 Types of Waste in ANY Process Value Added Defects Overproduction Waiting Non-utilized talent Transportation Inventory Motion Extra processing Typically 95% of Total Lead Time is Non-Value Added!!!

14 14 Waste of Defects We tend to relate the term defect to tangible manufactured products i.e.: my Cell Phone is defective. However, in Lean we use a much broader definition of a defect: de fect any instance in which a process had an opportunity to satisfy one of its customer s*** expectations but failed. *** The customer is the person who receives your work ***

15 15 Waste of Defects What is the cost of fixing things that were not done correctly the first time? What is the cost of an angry customer?

16 16 Waste of Overproduction Delivering anything Faster than needed. Delivering anything Sooner than needed Delivering More of anything than needed Some of the causes of overproduction: Departmental goals that promote 100% utilization No link between processes in a system Belief that batch processing utilizes available time and equipment most efficiently No signal in the system to stop producing Resource levels never adjusted to variations in demand

17 17 Waste of Waiting Time lost when facilities, people, information, decisions, supplies or equipment is waiting Some of the causes of waiting: Long changeover and setup times Unsynchronized schedules Too many decisions or approvals Poor material handling practices No signal to perform work Not following first in, first out policies Batch processing of work or information

18 18 Waste of Waiting - People Waiting lines develop when the next process is simply not ready for the next work piece yet

19 19 Waste of Waiting Information on Paper What is the piece of paper on the bottom doing? You always pull from the bottom of your in-box, right? Last in, first out = a guaranteed delay!

20 Waste of Waiting Electronic Information I ed my information to the next department I m sure they are working on it right now! 20

21 21 Waste of Non-Utilized Talent Considered by many to be the greatest waste of all the wasted potential for improvement that results when the people doing the work are not consulted for their ideas on improving the methods of work. Some causes of the waste of non-utilized talent: Unclear job descriptions Lack of training Lack of synergy and collaboration No feedback loop for continuous improvement Suggestions for improvements that are not investigated/utilized Manager s beliefs that managing means telling people what to do

22 22 Waste of Non-Utilized Talent I m just doing what I m told Good ideas are Management s responsibility! I have an idea to improve safety and morale!

23 23 Waste of Transportation Transporting information and materials around the facility Transportation is an essential part of operations, but movement of material, information or products adds no value, thus it is waste Some causes of transportation waste: Poor facility layout Large batch sizes Large storage areas Monuments Lack of Preparation

24 24 Waste of Transportation How did all of this paper get into my office? How many peoplemiles can we put on each of these stacks?

25 25 Waste of Inventory Any material or information in excess of the one-piece required for processing. This is generally the easiest type of waste to see Some causes of inventory: Inventory held just-in-case problems arise Non-level scheduling Unbalanced workload Infrequent delivery of supplies Disorganization No signal to stop working or switch priorities

26 26 Waste of Inventory Anything in the system that is not being actively worked on represents inventory Piles of stuff are often the easiest waste to see

27 27 Waste of Motion Any movement of people, information or machines that does not add value to the product Transportation is moving your things through a process motion is moving yourself through a process Some causes of motion waste: Poor facility or equipment layout Poor workplace organization and housekeeping Searching for anything Poor ergonomics Information not shared across silos

28 28 Waste of Motion How often do you need to move in order to satisfy a customer requirement? How much of it could be eliminated if we moved a few things and got organized?

29 29 Waste of Extra Processing Activities that add no value to the product or service from the customers point of view Some causes of non-value added processes: Over-processing to accommodate perceived customer needs (I sort and staple it to save them time) Unnecessary paperwork requirements Redundant tasks, approvals or inspections Unnecessary reports Not following work standards Process is overly complex Stop-and-Go Tasks

30 30 Waste of Extra Processing e the shop floor: These documents represent all records created for designing a single website: Scheduling Design documents Approvals Purchase orders Invoices Credit Memos Will the customer ever see or use any of this?

31 31 Goal of Lean Six Sigma? Lean Sigma Goal: System Awareness and Effectiveness Beware of overachieving and compensating individuals or departments Departmental efficiency rarely equates to an optimized system!

32 32 Systems Theory Is this a Systems perspective?

33 33 Impact of Batch Size Reduction Batch & Queue Processing Process A Process B Process C 10 minutes 10 minutes 10 minutes Lead Time: 21+ minutes for first piece 30+ minutes for total order One-Piece Flow Processing Make one - Move one! Process A Process B Process C 3 min. for first part 12 min. for total order

34 Seconds Seconds 34 Cycle Time Bar Charts What does our process look like with respect to time? 13 M 12 U 11 M 10 E N 9 H O 8 T G 7 N A 6 A R 5 R S D 4 A Y E P S 3 E R S A I 2 H H O N R 1 S C R S I T S A 7 N O R S 6 A R D I 5 R S M P R 4 A Y U A I 3 E R M N N 2 H H E S O 1 S C H E G Step 1 Step 2 Step 3 Step 4 Step 5 Operations Step 1 Step 2 Step 3 Step 4 Step 5 Operations Which process looks more balanced?

35 35 Lean Simulation Round 2 (5 minutes) Worker 1 Shear strips of paper as wide as the ruler 1 at a time ; Make 1, move 1 Worker 2 Write the word Chrysant on each strip of paper ; Make 1, move 1 Worker 3 Write the word hemumros on each strip of paper ; Make 1, move 1 ; Switch to red pen at 3 minutes Worker 4 Write the word esnapdra on each strip of paper ; Make 1, move 1 Worker 5 Write the word goniris on each strip of paper ; Make 1, move 1 Worker 6 Time/Score keeper

36 36 Lean Simulation Round 2 Time/Score Keeper (worker 6): Watch the clock and write down the following information: *** Tell worker 3 to switch back to their black pen when you receive a strip with red writing on it *** 1. Lead time: At what time did you receive your first good work piece? 2. Defect arrival time: At what time did you receive your first work piece with red writing on it (i.e. a defect)? *** 3. Throughput: How many good work pieces did you receive (i.e. no red writing)? 4. Defects: How many defective work pieces did you receive (i.e those with red writing? 5. Time to find the defects: How long did it take to discover the problem (defect arrival time minus 3 minutes)?

37 37 Lean Simulation Round 2 How did our process perform? Fill out Scorecard

38 38 Lean Sigma Example 50.0% 45.0% 41.2% 40.0% 39.4% 35.0% 30.0% 25.0% Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Michigan FY 2012 YTD Average Monthly WPR FY 2012 WPR Goal w/ Caseload Reduction Credit

39 39 QUESTIONS? Robert Stauffer Lean Program Manager The Michigan Manufacturing Technology Center (MMTC)