An Introduction to Lean. Heidi Maier Sagstad
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1 An Introduction to Lean Heidi Maier Sagstad
2 Agenda Objective: Provide you with a basic understanding of key lean principles and tools. Topics: Lean defined Waste Value Stream Mapping 5S Balanced Flow 2
3 Is lean for me? Lean ain t mean.
4 4
5 From Manufacturing to Services 5
6 From Current State to Future State FDA EMEA Prelicensure TAT Quality Improved quality 37% less time MM NOK/ Yr 66% Increase in delivery from 2 MM liters/year to 6MM liters/year
7 Structure Master Black Belt Black Belt 100% Champion Yellow Belt Green Belt 20% 7
8 Typical lean activities VSM session Daily stand-up meeting Scorecard reporting 5S Activity/monthly audits Kaizen Event DMAIC project management Change agent 8
9 Leadership Measure performance Report results Participate in report outs Support projects and change Provide necessary resources Adopt into strategy / scorecard 9
10 10 House of Lean
11 Benefits of lean Cost Defects Inventory Space Waste Profit Quality Employee and customer satisfaction Productivity Capacity 11
12 Lean I still don t get it. What the hell is lean?
13 Philosophy Method Tools 13
14 Lean Buzz words «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 that time line by removing the non- value added wastes.» Taiichi Ohno, Toyota Production System 1978 Standard Work «Muda» Single piece flow VSM One day lead time (Waste) It is all about waste elimination! 14
15 Foundations of Lean Customer Requirements Defect Free Work Prevention Total Employee Involvement Continuous Improvement
16 The term «Lean» Study of the Toyata Production system at MIT Jim Womack John Krafcik 16
17 History of Lean Summary: Interchangeable Parts 1799 Eli Whitney US Army Contract Assembly Lines 1910 Ford Sloan 1950s Joseph M. Juran publishes Quality Control Handbook 1951 Shigeo Shingo Taiichi Ohno lay Foundations: TPS, Poka Yoke, SMED, JIT 1987 Lean term Joohn Kraficick 1997 Lean enterprise Baxter receive s Shingo Prize: 2000 North Cove, NC 2001 Mountain Home, Ark Heidi 2015 You Pipeline of Continuous Improvement Mass Production System 1953 Kanban: Toyota Toyota Motor Co. Founded 1937 Toyota Production System
18 Lean Lean is the culmination of multiple tools, concepts, and philosophies focusing on the result of delivering product to the customer: Now (Just in Time) Free Perfect
19 Value Who defines value? What is our customer willing to pay for? What is the customer not willing to pay for, yet essential to our business?
20 Waste
21 21 Six Sigma
22 22 Lean
23
24 24
25 25 Belts
26 Kaizen Do it now! 26
27 27 Kaizen
28 DMAIC a problem solving approach D Define Clearly define the problem and form your team M Measure Measure what is key to the customer and confirm that your data is reliable A Analyze Search for the root causes and identify the most significant factors I Improve Establish methods to improve the root causes and significant factors C Control Make sure the problem doesn t come back 28
29 DMAIC at a Glance (1) Who is the customer? Define (2) What is the problem statement? Define the problem in a S-M-A-R-T way. What are the customer CTQs? What are the customer requirements? (3) Have any solutions been found? What are the results? Are any teams already assigned to this problem? Measure (4) What are the roles and responsibilities of the team members supporting this project? Do I need a team? What shall they do? (1) How do we measure the CTQs? This measure is your project Y. (2) Can you trust your data quality? What is the source of data? How do you know that your project data are precise and accurate? (3) What is the customer spec? How well do we meet it? How well does this process meet the customer s expectations? Analyze Improve (1) What are all the possible causes of defects or process variation? (2) Can you use existing data to identify the most likely causes or most significant factors? What are the few critical factors or root cases that account for the majority of defects? (1) What improvement actions did you identify to address the main root causes? (2) Are these actions completed? (3) What are any possible risks of making the process changes? Operational or capacity issues, safety issues, quality issues, regulatory issues, marketing issues, (1) etc. How will the improved process be standardized or institutionalized? Control 29 (2) What can be done to sustain process improvements despite changes in the management and process owners? (3) Have you successfully commissioned the new process over to the process owner? Are they trained? Do they know their responsibilities for ensuring process stability and capability?
30 Lean for production and services Lean thinking describes the thought process, the overarching key principles that must guide your actions when applying lean techniques and tools. 30
31 Waste What is in your process?
32 Waste (Muda) Any activity that consumes resources and creates no value for the customer
33 7 Elements Of Waste Motion Overproduction Waiting Transport Inventory Unnecessary Processing Defects (Under-utilized people)
34 Motion Additional unnecessary activities such as walking, & searching
35 Example of motion (Spagetti diagram) 35
36 Overproduction Producing more than what the customer wants
37 Waiting Machine, document or person inactivity downstream due to a prior process not delivering on time
38 Transport Unnecessary movement of material
39 Inventory Anything waiting to be consumed or further processed
40 Unnecessary Processing Excess steps in the process that are non-value added
41 Defects Any deviation in the process
42 7 Elements Of Waste Motion Overproduction Walking Transport Inventory Unnecessary Processing Defects (Under-utilized people) Most Of What This Is YoU Dislike
43 43 Simulation: Round 1
44 Process A Instructions for the game: - 4 volunteers are needed. - First, have the team assemble 30 pens in batches of 6. a) Load Spring on ink cartridge b) Load ink cartridge into empty shaft c) Screw on base and test quality, place in container. Set aside defective pens. d) Start timer. Observe for defects and waste. Material Inventory Inventory Inventory - Time starts ticking when the first assembler begins work. - Time stops when the last assembler completes the quality check on the last pen. Inventory Isolated Islands Finished Product
45 45
46 Value Stream Mapping Learning to see
47 Different types of Process Maps SIPOC Map - from supplier to customer Flow chart - the sequential process logic Process Flow S U P P L I E R I N P U T Process Logic Product Flow Boundaries PROCESS Requirements Logic Specs and Information Flow O U T P U T C U S T O M E R Top-down chart - how the details fit into the big picture T h e P r o c e s s The Sub-Process The Micro-Process Swim-lane chart - highlights the handoffs Customer* Engineering Tooling Production Field Service Value Stream Map - data rich map that highlights waste
48 Value Stream Mapping A method to build a visual representation of the material and information flows of EVERY process used to deliver the product to your customer. To implement Lean To change the Process To identify and prioritize Projects To Communicate To develop a Business Plan
49 ACME Company Value Stream
50 Value Stream Maps Current Value Stream Map (cvsm) What s happening NOW? Shows work processes as they CURRENTLY exist Future Value Stream Map (fvsm) What will happen SOON Shows the DESIRED state in the medium or long term with significant improvements to cycle time, yield, cash and cost
51 What do you see? Communication / Data Material Flow Value added activity Waste Where are the problems? But the what? (AM) 51
52 Process Step Value Added Non-Value Added Essential Unnecessary Improve Flow Minimize ELIMINATE
53 Preparation of material / information Pencil Paper Pen Post-its Video Camera Telephone Customer Requirements Team Members
54 Value Stream Mapping Process VI. Establish a Work Plan VII. Update your VSM I. Identify a Product Family II. Identify Team and Resources V. Create the future VSM Value Stream Mapping BLPS Annual QLP Refresher Training IV. Create the current VSM III. Identify Customer Requirements
55 Identification of the Product Family Group of products that pass through similar processing steps and use common equipment in your process Focus on ONE product family
56 56 Go to the GEMBA
57 Where is waste in your facility? Motion Inventory Overproduction Unnecessary processing Waiting Defects Transportation Under-utilized people
58 Step 1: The Customer Customer s Requirements Cost Time Quality
59 Step 2: The Supplier Supplier Delivery Frequency Transport
60 Step 3: Process Steps Process and Data Boxes ( in sequence, left to right ) Cost, Time, Quality, Variation
61 Data Boxes Name of Process Step COST TIME Currency / per Unit Secs / Min / Hrs / Days QUALITY VARIATION Defects Range / SD / UCL+LCL
62 Step 4: Flows Push Icon Pull Icon
63 Step 5: Communication Methods and Frequencies Daily/ Weekly
64 Step 6: Locations I Inventory
65 Step 7: Calculations Cycle Times and Lead Time VA VA VA NVA NVA
66 General Icons Kaizen Kaizen Burst
67 Creating the VSM Value Stream Mapping BLPS Annual QLP Refresher Training
68 Use the cvsm to design your fvsm! Calculate Takt Time Identify Bottleneck Processes Determine Kanban Locations Establish material movement Based on pull Calculate Lead and Cycle Time Focus on reducing NVA activities
69 Tips and Tricks Establish a team to conduct VSM Verify information on the floor Use your feet and your eyes Observe in real time Keep it simple Date and sign your VSM There is no wrong VSM
70 5S Who said Lean isn t sexy?
71 71
72 5S Sort Set Shine Standardize Sustain Value Stream Mapping BLPS Annual QLP Refresher Training
73 Work Balance and Flow Yeah, its all about the flow, bout the flow
74 Cycle Time vs. Takt Time Takt Time = Available Time / Total output 20s TT = 600 seconds/30 pens 74
75 Elapsed Time, min Work Process using Batching Batch Size of Five Batching: 20 minutes elapsed time 5 pieces completed Processing time= 1 min each for four different processes
76 Single Piece Flow Elapsed Time, min Single Piece Flow Single Piece Flow: 8 minutes elapsed time 5 pieces completed Reduce lead time and risk of damage/ obsolescence Deliver product sooner and cheaper
77 Continuous Flow Material Inventory Inventory Inventory Material Finished Product Continuous Flow Inventory Isolated Islands Finished Product The product moves from one station to the next, one at a time The speed of the process is more important than the speed of the worker
78 min min Balancing Balancing workloads of sequential operations achieves a steady and consistent flow C/T A B C D E F G H I Process Steps A B C+D+F E H G+I Sum of cycle times = 66 minutes Balance achieved with 6 work stations
79 Balancing By eliminating imbalances in a work sequence, pools of WIP inventory will be eliminated. Controlled Inventory Material Inventory Inventory Material Inventory Continuous Flow Inventory Isolated Islands Finished Product Remember?
80 Methods to adjust work balance: 1. Eliminating Waste 2. Relocation/ Reallocation of Work 3. In-Process Kanbans 4. Adding More Resources
81 min Eliminating Waste a. Reduce NVA time to improve work balance b. Reduce product cost by removing work time from product c. Cycle Time and WIP will be reduced d. Productivity will increase due to more time for VA tasks Set-up NVAT VAT Takt Time 2 0 Step 1 Step 2 Step 3 Step 4 Step 5
82 min Relocation/ Reallocation of Work More applicable for labor based work, rather than machine Before Step 1 Step 2 Step 3 Step 4 Step 5 Takt Time After Step 1 Step 2 + Step 5 Step 3 Step 4 Set-up VAT
83 mi n Adding More Resources Workstations or Machines a. Ask yourself Did I really eliminate waste? b. Not the first choice due to additional cost c. To avoid bottleneck workstation d. Duplication of materials and tools; more floor space e. Reduce process time variability by sharing load 10 8 Before 10 8 After Time reduced due to additional resource A B C D E F G 0 A B C D E F G
84 Process A Instructions for the game: - 3 volunteers are needed. - First, have the team assemble 40 pens in batches of 8. Time starts ticking when the first assembler takes the first empty shaft to insert an ink cartridge into it. Time stops when the last assembler sticks the price tag on the 40 th pen. Material Inventory Inventory Inventory Inventory Finished Product Isolated Islands
85 86 Simulation: Round 2
86 Process B Instructions for the game (cont d): - Next, have the team assemble 30 pens in single-piece-flow fashion. - Note the differences in WIP and lead time as they complete an order of 30 pens, between the first and second manufacturing systems. Material Finished Product Continuous Flow
87 Summary This is AWESOME!
88 What have we learned? Lean Waste Reduction A philosophy, a method, and set of tools Tools: 5S (Sort, Set, Shine, Standardize, Sustain) VSM (See the problem, plan the future) Balanced Flow (Imrpove CT, reduce waste) Six Sigma Variation and Defect Reduction DMAIC Project Management: Rigor and Discipline
89 91
90 Questions Tell me more, tell me more
91 Appendix Some crap that I I couldn t bring myself to delete
92 94
93 Bibliography Learning to See, Mike Rother and John Shook
94 Some Material Flow Icons Outside Source Customer or Supplier Push System Process Value Value Process Step: With units of measure Queuing or waiting Delivered Goods to customer or from supplier Inventory Truck Delivery
95 Some Information Flow Icons Electronic Information Flow Fax communication Control Center Production Control MRP Manual Information Flow Phone communication communication Process Step Process Step
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