Understanding Lean & Six Sigma ISM – Northeast Wisconsin, March 12, 2013 Presented By: Todd Wiese, Partner Adaptive Business Solutions, LLC W175 N11163 Stonewood Dr. Ste 214 Germantown, WI 53022 www.abstb.com
Participant Introductions
• Show of hands: Any formalized exposure to continuous improvement philosophies such as Lean or Six Sigma? • Fist to five: Level of understanding of: • Lean • Six Sigma
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About Your Moderator Contact Us Todd Wiese • GE Healthcare; Lean Six Sigma Master Black Belt • Rockwell Business CI Champion • 15+ years Supply Chain, Operations, Finance, and Engineering experience • Lieutenant, U.S. Navy; Submarines • BS Engineering; U.S. Naval Academy • MBA; Kellogg School of Management, Northwestern
Email:
[email protected] Phone: (262) 349 - 5671 Fax: (312) 268 - 6119 Mail: Adaptive Business Solutions W175N11163 Stonewood Dr. Suite 214 Germantown, WI 53022
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Goals & Objectives
• Provide basic understanding of Lean thinking. • Understand purpose of some of the techniques and approaches to creating value. • Importance of system-wide thinking. • Your goals…
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Origins of the term “Lean” “The Machine That Changed the World.” •Published 1990 by MIT’s International Motor Vehicle Program (IMVP) leaders (Womak, Jones, and Roos) •5-yr international study of the auto industry •Evaluation of all industry delivery, quality, and cost metrics. •Analysis of mass vs. craft vs. hybrid (Lean) production systems © Adaptive Business Solutions, LLC – All Rights Reserved
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Origins of the term “Lean”
“Lean production…is ‘lean’ because it uses less of everything compared with mass production – half the human effort in the factory, half the manufacturing space, half the investment in tools, half the engineering hours to develop a new product in half the time.”
“The most Japanese of Japanese companies…”
The Machine that Changed the World Womack, Jones, Roos, ©1990, pg. 13
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Lean Preconceptions / Overview Lean is not… • Simply a cost cutting effort; a way to reduce headcount. • A function or program; it’s the way we do business. • An immediate solution; requires patience. • Just for operations; must avoid sub-optimizing the value stream. • A ground up effort; requires focus and support at all levels. • Simply a tool kit to be used before fixing the basics. We’ll spend the next hour learning about Lean thinking. © Adaptive Business Solutions, LLC – All Rights Reserved
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Preconceptions / Overview Summary Many of the components of Lean are NOT new: • • • • • •
Problem Solving………………Six Sigma, 8D Reducing Waste………………e-tools, software Employee Involvement……….Quality circles Mistake Proofing………………Three prong outlets Visual Management…………..Color coding Continuous Improvement…….Reengineering
What is new… Lean-thinking organizations, like Toyota, systematized all of these concepts and more, and: • Applied them in a disciplined manner to all aspects of their business
AND
• Created a culture that enables these concepts to thrive. © Adaptive Business Solutions, LLC – All Rights Reserved
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Exercise: Defining Lean and Six Sigma Exercise objective: Understand participants’ level of knowledge and understanding of both Lean and Six Sigma. On one side of a note card, explain how you would describe Lean and Six Sigma to someone.
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Adaptive Theory of a Lean Thinking Organization A Lean organization is one that strives to constantly improve the value proposition to their customer(s) by: • Supporting their employees in value creation by providing systems, resources, and development AND • Building relationships with both customers and suppliers
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Elements of a Lean Organization A system, not simply a set of tools… Most want to focus here!
Process Development / Improvement
Values / Beliefs
Product Development / Improvement
Leadership Mission / Vision
People Development / Improvement
Lean Organization
Production System
Strategy / Goals Op Mechs / Metrics
Data / Information Availability
Systems / Equipment Availability
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HR Strategy
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Elements of a Lean Organization
The system must move synchronously, at the optimal speed, in the same, correct direction… © Adaptive Business Solutions, LLC – All Rights Reserved
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Toyota Financial Performance As A Benchmark Firm
Established
Ford
1903
GM
1897-1908
Nissan Honda
’07 Revenue ’07 Earnings 5-yr CAGR 5-yr CAGR $172.5B
-$2.9B
-0.50%
0.00%
$181.5B
-$38.7B
-0.70%
0.00%
1914
$86.7B
$5.8B
(*as Datsun)
13.40%
5.40%
1937
$104.0B
$6.3B
(*auto prod in ’48)
8.10%
11.60%
Total
Toyota
-$29.3B
1937
224.63
15.9
12.90%
9.30%
As of 2/7/13
’07 Market Value ($B)
Mkt Val ($B)
10.9
49.7
7.4
44.3
32.7
47.0
59.7
68.0
110.7
209.0
157.5
162.0
Toyota valued at 2-3 times the competition. © Adaptive Business Solutions, LLC – All Rights Reserved
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Improvement is a Key Element to a Lean Organization Process Development / Improvement
• A structured, data driven, problem solving methodology • Critical element to a Leanthinking organization
Values / Beliefs
Product Development / Improvement People Development / Improvement
Mission / Vision Lean Organization
Production System Data / Information Availability
Leadership
Strategy / Goals Op Mechs / Metrics
Systems / Equipment Availability
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HR Strategy
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Six Sigma Defined Six Sigma is a problem-solving methodology that is: • Standardized • Systematic • Process oriented • Data-driven • Based on scientific method Goal: Ensure identified process/product produces desired output/performance level. © Adaptive Business Solutions, LLC – All Rights Reserved
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Improving Performance with the Scientific Method
• • • • • • •
Problem/Question Observation/Research Formulate a Hypothesis Experiment Collect and Analyze Results Conclusion Communicate the Results Everything you needed to know about problem solving, you learned in 6th grade science! © Adaptive Business Solutions, LLC – All Rights Reserved
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How Do Lean and Six Sigma and Project Management Interact?
Lean is how you run your business
Six Sigma is a method for solving your complicated problems Project Management is how you complete your continuous improvement projects (including 6 Sigma) on time and budget
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Disclaimers • WATA • No “get rich quick” schemes, silver bullets, or cookie-cutter solutions…we’re not offering any. • 73 days vs. 73 years at Toyota…You must practice to become proficient. • Not about becoming Toyota; rather understand what they did and why, and how to apply principles to your situation. • Simple ≠ Easy © Adaptive Business Solutions, LLC – All Rights Reserved
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Lean Thinking In order to understand what makes Leanthinking companies so successful…
you must understand the DNA of the organization.
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Lean Thinking – Understanding the Customers
Kaizen (Continuously Improving ) J I D O K A
Foundation Goals & Desired Results
Base Values & Core Philosophies
Key Elements / Methods
Flexible, Motivated Employees
Critical Activities
J I T
Maintaining & Improving the Standards
Standardization
/ Problem Solving
The Customer
The Employee
The Company
Highest Quality Lowest Cost Shortest Lead-Time
Work Satisfaction Job Security Consistent Income
Market Flexibility Profit (from cost reduction)
Customer First …Always
Respect for Community and the People
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Constantly seek to eliminate waste 20
The Foundation For Toyota’s Success
Kaizen (Continuously Improving ) J I D O K A
Key Elements / Methods
Flexible, Motivated Employees
Critical Activities
J I T
Maintaining & Improving the Standards
Standardization / Problem Solving The Customer
The Employee
Highest Quality Lowest Cost Shortest Lead-Time
Work Satisfaction Job Security Consistent Income
Market Flexibility Profit (from cost reduction)
Respect for Community and the People
Elimination of Waste Constantly seeking…
Customer First …Always
The Company
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Who is important and how do I satisfy them… •3 “customers”…endusers, employees, shareholders. All must be considered. •Understand how to deliver value for each customer 21
Lean Thinking Principles 1. Truly understand who all your customers are, and what they value. (What you need to believe) I. External Customer II. Employees III. The Company 2. Continuously strive to maximize value by identifying and removing waste (process improvement). (How you need to behave) I. Creating a system to identify problems II. Managing the system III. Solving Problems © Adaptive Business Solutions, LLC – All Rights Reserved
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Lean Thinking – Maximize Customer Value Maximize value:
Customer = Value
Worth
Price
(To The customer)
(Profits + Costs)
Increase worth by listening to the customer; understand what they are willing to pay for
Decrease costs by reducing waste
Maximize value by focusing on both increasing worth and reducing costs © Adaptive Business Solutions, LLC – All Rights Reserved
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Lean Thinking – Maximize Customer Value
Assume: Carpenter’s hourly rate = $50/hour Time savings per house = 50 hours (1 house only) Benefit derived from pneumatic nail gun per house = $2500 © Adaptive Business Solutions, LLC – All Rights Reserved
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Maximize Customer Value Value - Benefit Derived by Customers ($2500) Customer Value Captured Total Value Created
- Selling Price ($2000) Supplier Value Captured - Cost to produce ($1500)
To stay in business, both must find value. To be competitive, we must create more customer value than our competitors © Adaptive Business Solutions, LLC – All Rights Reserved
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Lean Thinking Principles 1. Truly understand who all your customers are, and what they value. (What you need to believe) I. External Customer II. Employees III. The Company 2. Continuously strive to maximize value by identifying and removing waste (process improvement). (How you need to behave) I. Creating a system to identify problems II. Managing the system III. Solving Problems © Adaptive Business Solutions, LLC – All Rights Reserved
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Employee & Community Value Organization 1. General Motors:
Jobs 107,400
18. Ford:
15,900
25. Chrysler
13,600
“As the U.S. auto industry sheds workers, and even Nissan offers buyouts, Toyota is sticking by its proud—and expensive—tradition of no layoffs during hard times.” US News & WR. 8/26/08
Saying you are committed to your employees and the community is easy. Actually showing your commitment is tougher. © Adaptive Business Solutions, LLC – All Rights Reserved
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Employee & Community Value Other examples:
• Helped start and sponsor nonprofit dedicated to support local school district • Provides technical, cultural, and leadership training to elementary, middle, and high school groups.
• • •
HR ratios: ~1-20. Extensive employee development & feedback. Living the “Golden Rule”.
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Lean Thinking Principles 1. Truly understand who all your customers are, and what they value. (What you need to believe) I. External Customer II. Employees III. The Company 2. Continuously strive to maximize value by identifying and removing waste (process improvement). (How you need to behave) I. Creating a system to identify problems II. Managing the system III. Solving Problems © Adaptive Business Solutions, LLC – All Rights Reserved
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Maximizing Shareholder Value
Traditional Pricing Model… Price = Cost + Profits
But rather… Profit = Price - Cost
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Maximizing Shareholder Value
Profit = Price - Cost (Shareholder value)
(Set by market)
(Our focus)
*True monopolies semi exception
“(In order to compete), we must build cars at 1/10th the cost (of American cars).” Kiichiro Toyoda © Adaptive Business Solutions, LLC – All Rights Reserved
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Removing Waste Is Key To Profitability
Cost =
Value add activities
+
NVA but req’d
+ NVA activities
Value add is necessary…customers pay for it. Non-value added (NVA) but required…can’t live without it.
So we must focus on the NVA activities…the waste!
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Identifying Opportunities
“A ‘revolution in consciousness is indispensible’…”
Taiichi Ohno; Chief Inventor of the Toyota Production System
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Types of Non-value Add Activity The “Three M’s”: Muda, Muri, and Mura Muri = Overburden; placing too heavy a mental or physical burden on employees or machinery i.e. running at a rate greater than designed capacity Mura = Unevenness; work unevenly distributed among employees / process. Muda = Waste
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Waste (Muda) The Eight Wastes Defects Over Production Waiting NVA Processing Transportation Inventory Motion Underutilized Employees © Adaptive Business Solutions, LLC – All Rights Reserved
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Waste 1 – Defects Defined The Eight Wastes Defects Over Production
• Can be either a processrelated or product defect.
Waiting
• Upsets customers
NVA Processing
• Consumes resources
Transportation
• Chokes flow
Inventory Motion Underutilized Employees
Reworking defects is wasteful; sending them to customers is sinful. © Adaptive Business Solutions, LLC – All Rights Reserved
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Waste 2 – Over Production Defined The Eight Wastes Defects Over Production
• Ties up working & intellectual capital
Waiting
• Takes up physical and virtual space
NVA Processing
• Hides problems
Transportation
• Magnifies all other wastes Inventory Motion Underutilized Employees
Producing more than the downstream customer immediately needs. © Adaptive Business Solutions, LLC – All Rights Reserved
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Waste 2 – Over Production Examples The Eight Wastes
Physical
Transactional
Defects Over Production Waiting NVA Processing Transportation Inventory Motion Underutilized Employees
• Batching parts • Building / shipping early • Warehousing / supermarkets © Adaptive Business Solutions, LLC – All Rights Reserved
• Producing engineering drawings ahead of time • Running reports ahead of time. • Too many copies 38
Waste 3 – Waiting Defined The Eight Wastes Defects Over Production
• Underutilizes people and equipment
Waiting
• Slows customer response
NVA Processing
• Increases lead times
Transportation Inventory Motion Underutilized Employees
When inventory or workers wait, your customers wait © Adaptive Business Solutions, LLC – All Rights Reserved
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Waste 4 – NVA Processing Defined The Eight Wastes Defects Over Production
• NVA = Non-value added
Waiting
• Sometimes revered to as over processing.
NVA Processing
• Must explicitly understand customer needs.
Transportation Inventory Motion Underutilized Employees
Giving the customer more than what they wanted and for which they do NOT find value © Adaptive Business Solutions, LLC – All Rights Reserved
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Waste 4 – NVA Processing Examples The Eight Wastes
Physical
Transactional
Defects Over Production Waiting NVA Processing Transportation Inventory Motion Underutilized Employees
• • • •
Excessive finishing Testing / quality checks Excessive packaging Unnecessarily tight tolerances. © Adaptive Business Solutions, LLC – All Rights Reserved
• Redundant paperwork • Information reclarification / excess information gathering • Software features no one uses 41
Waste 5 – Transportation Defined The Eight Wastes Defects
• Physical or virtual distance between processes
Over Production
• Requires equipment and time
Waiting NVA Processing
• Can result in cost i.e. lost or damaged information or material.
Transportation
• May be necessary; must minimize.
Inventory Motion Underutilized Employees
Position operations close together to minimize impact. © Adaptive Business Solutions, LLC – All Rights Reserved
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Waste 6 – Inventory Defined The Eight Wastes Defects Over Production
• Ties up working capital
Waiting
• Takes up valuable space
NVA Processing
• Risk of obsolescence and / or damage
Transportation Inventory Motion Underutilized Employees
Lowering inventory levels will help reveal problems. © Adaptive Business Solutions, LLC – All Rights Reserved
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Waste 6 – Inventory Examples The Eight Wastes
Physical
Transactional
Defects Over Production Waiting NVA Processing Transportation Inventory Motion Underutilized Employees
• • • •
Finished goods Raw materials Work in process Consignment © Adaptive Business Solutions, LLC – All Rights Reserved
• Gathering or storing information ahead of time. • Job folders 44
Waste 7 – Motion Defined The Eight Wastes Defects
• Movement within the process itself.
Over Production
• Can cause ergonomic concerns both in office and on floor.
Waiting NVA Processing
• Results in wasted cost through inefficient movement.
Transportation Inventory Motion Underutilized Employees
Treat associates like surgeons…everything within reach. © Adaptive Business Solutions, LLC – All Rights Reserved
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Waste 7 – Motion Examples Before
After
Using portable ladder to access car and transport tools and equipment. Resulting in excessive trips and safety issues. Previous observations revealed average 3 trips per hour for top of car tasks
Fixed platform and tool board reduce up and down travel by 45 minutes per car & eliminate ladder safety issues.
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Waste 8 – Underused Employees Defined The Eight Wastes Defects
• People not matched to their value added skills
Over Production
• Not using the intelligence of the workforce to solve problems.
Waiting NVA Processing
• Increased cost due to lack of productivity; potential absenteeism.
Transportation Inventory Motion Underutilized Employees
When you hire a person for their hands, you get the brain for free. Use it! © Adaptive Business Solutions, LLC – All Rights Reserved
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Waste Summary
• Identified from customer point of view. • Perfection is the goal…recognize you will never be perfect. • Continuously challenge your organization to identify and remove it.
If you think you’ve found perfection…that’s your biggest problem
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Lean Thinking Principles 1. Truly understand who all your customers are, and what they value. (What you need to believe) I. External Customer II. Employees III. The Company 2. Continuously strive to maximize value by identifying and removing waste (process improvement). (How you need to behave) I. Creating a system to identify problems II. Managing the system III. Solving Problems © Adaptive Business Solutions, LLC – All Rights Reserved
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Improvement The most important (and first) step to improvement is…
Recognizing you have a problem! (Problem Consciousness)
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Toyota Production System (TPS) Defined
“All we are doing is looking at a 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
All “Lean” tools / techniques created to highlight waste!
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Elements of a Lean Organization A system, not simply a set of tools… Most want to focus here!
Process Development / Improvement
Values / Beliefs
Product Development / Improvement
Leadership Mission / Vision
People Development / Improvement
Lean Organization
Production System
Strategy / Goals Op Mechs / Metrics
Data / Information Availability
Systems / Equipment Availability
© Adaptive Business Solutions, LLC – All Rights Reserved
HR Strategy
52
A Benchmark Foundation / System An principled approach built on the right values…
Foundation Goals & Desired Results
Base Values & Core Philosophies
Kaizen (Continuously Improving ) J I D O K A
Maintaining & Key Elements / Improving the Methods Standards
Flexible, Motivated Employees
Critical Activities
J I T
Standardization / Problem Solving The Customer
The Employee
The Company
Highest Quality Lowest Cost Shortest Lead-Time
Work Satisfaction Job Security Consistent Income
Market Flexibility Profit (from cost reduction)
Customer First …Always
Respect for Community and the People
Constantly Seek to Eliminate Waste
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53
Lean Techniques 5S Andon Takt Time Kaizen Kanban Pokayoke Standardized Work Single Piece Flow Visual Management
Some of the Lean “tools and techniques” used to identify and remove waste…
VSM
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Lean Techniques – 5S 5S Andon Takt Time Kaizen Kanban
• Sort…only what you need • Set-in-place / Simplify…find it quickly • Shine…keep it clean • Standardize…consistent approach • Sustain…discipline and follow-up
Pokayoke Standardized Work Single Piece Flow Visual Management
Effectively organize to identify abnormal conditions
VSM
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5S Example
After Kaizen
Before Kaizen
•Top Shelf – Safety valve kits •2nd shelf – BOV kits •Lower shelves – Small O-rings and less frequently used kits •Color coded by gasket type and sorted by valve type •Positioned for good ergonomics
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Lean Techniques - Andon 5S Andon Takt Time Kaizen
•Andon simply means “light” •Provides visual status indication •Used to immediately alert team to abnormal condition
Kanban Pokayoke Standardized Work Single Piece Flow Visual Management VSM
Alerts everyone to a problem immediately © Adaptive Business Solutions, LLC – All Rights Reserved
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Lean Techniques – Takt Time 5S Andon Takt Time Kaizen Kanban Pokayoke Standardized Work Single Piece Flow Visual Management VSM
•Derived from the German “taktzeit” (clock cycle) •Matches process output rate with customer (downstream process) demand •Based on time available to conduct the process and the rate at which customer is demanding output
The Heartbeat of the Business © Adaptive Business Solutions, LLC – All Rights Reserved
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Lean Techniques - Kaizen 5S Andon Takt Time
•Kai (“Change”) + Zen (“Good”) •“Bunts and singles”; small, but incremental and continuous (daily) improvements by everyone
Kaizen
Incremental Approach to CI
Pokayoke Standardized Work Single Piece Flow Visual Management
Performance
Kanban Desired future state
Process owner established
Goals set
Dedicated Process improvement mapped; event #1 work standardized
Performance target
“On the fly” change
VSM © Adaptive Business Solutions, LLC – All Rights Reserved
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Lean Techniques - Kanban 5S Andon Takt Time Kaizen Kanban Pokayoke Standardized Work Single Piece Flow Visual Management
•Means “visual card” •Inspired by the concept of the American supermarket •Customer gets what they need, in the time needed, while ensuring the store stocks only what will be used
Supermarkets: An empty spot prompts the shelf to be refilled. After enough refills, the store generates a replenishment request…
VSM © Adaptive Business Solutions, LLC – All Rights Reserved
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Lean Techniques – Poka-yoke 5S
Can you identify the poka-yoke?
Andon Takt Time Kaizen Kanban Poka-yoke
•Creating a “fail safe” or mistakeproof method to guarantee desired process output.
Standardized Work Single Piece Flow Visual Management VSM © Adaptive Business Solutions, LLC – All Rights Reserved
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Lean Techniques – Standardized Work 5S Andon Takt Time Kaizen Kanban Pokayoke Standardized Work Single Piece Flow Visual Management VSM
Acknowledge the guest Recognize special guests / offer to enroll Recap preferences Info in the reservation correct? Verify method of payment Acquire keys Leave a lasting impression © Adaptive Business Solutions, LLC – All Rights Reserved
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Lean Techniques – Single Piece Flow 5S Andon
Batch
Single Piece Flow
Takt Time Kaizen Kanban Pokayoke Standardized Work Single Piece Flow Visual Management VSM
From: The Toyota Production System
Catches Defects too Late • How many more do you have? • Where are they in the process? • What is the root cause?
Catches Defects Immediately • You only have one • You know where it occurred • Resolve the root cause immediately
Flow where you can, pull when you can’t © Adaptive Business Solutions, LLC – All Rights Reserved
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Lean Techniques – Visual Management 5S Andon Takt Time Kaizen Kanban Pokayoke Standardized Work Single Piece Flow Visual Management VSM
Tell at a glance if activities are behaving as expected; a communication tool. © Adaptive Business Solutions, LLC – All Rights Reserved
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Lean Techniques – Value Stream Mapping 5S Andon Takt Time Kaizen Kanban Pokayoke Standardized Work Single Piece Flow Visual Management VSM
See and understand material & information flow across the entire value stream © Adaptive Business Solutions, LLC – All Rights Reserved
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Importance of a Value Focus
One more question… Why are companies in business?
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Importance of a Value Focus 5S
Remember the lean techniques?
Andon Takt Time
Are they independent?
Kaizen Kanban
Are they self sustaining? Can we make them more effective?
Pokayoke Standardized Work Single Piece Flow Visual Management
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Importance of a Value Focus
Yes! We can make them more effective if we understand that…. Lean is a culture and business philosophy
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Importance of a Value Focus Axioms
Principles
Techniques 5S
Is there a natural flow?
Just-in-time (Flow)
Andon Takt Time
Perfection Relationships
Value
Autonomation (Jidoka)
Kaizen Kanban Pokayoke
People
Continuous Learning
Stability
Standardized Work Single Piece Flow Visual Management
© Adaptive Business Solutions, LLC – All Rights Reserved
Significantly influenced by Joachim Knuf
69
Importance of a Value Focus Axioms
Are any of these more important than the other?
Principles
5S Just-in-time (Flow)
Andon Takt Time
Perfection Relationships
Value Value
Techniques
Autonomation (Jidoka)
Kaizen Kanban Pokayoke
People
Continuous Learning
Stability
Standardized Work Single Piece Flow Visual Management
© Adaptive Business Solutions, LLC – All Rights Reserved
Significantly influenced by Joachim Knuf
70
Importance of a Value Focus Axioms
What if we aren’t focused on value?
Principles
5S Just-in-time (Flow)
Andon Takt Time
Perfection Relationships
Value
Techniques
Autonomation (Jidoka)
Kaizen Kanban Pokayoke
People
Continuous Learning
Stability
Standardized Work Single Piece Flow Visual Management
© Adaptive Business Solutions, LLC – All Rights Reserved
Significantly influenced by Joachim Knuf
71
Importance of a Value Focus Axioms
What if we aren’t focused on value?
Principles
5S Just-in-time (Flow)
Andon Takt Time
Perfection Relationships
Profits
Techniques
Autonomation (Jidoka)
Kaizen Kanban Pokayoke
People
Continuous Learning
Stability
Standardized Work Single Piece Flow Visual Management
© Adaptive Business Solutions, LLC – All Rights Reserved
Significantly influenced by Joachim Knuf
72
Importance of a Value Focus Axioms
What if we aren’t focused on value?
Principles
5S Just-in-time (Flow)
Andon Takt Time
Perfection Competition
Profits
Techniques
Autonomation (Jidoka)
Kaizen Kanban Pokayoke
People
Continuous Learning
Stability
Standardized Work Single Piece Flow Visual Management
© Adaptive Business Solutions, LLC – All Rights Reserved
Significantly influenced by Joachim Knuf
73
Importance of a Value Focus Axioms
What if we aren’t focused on value?
Principles
5S Just-in-time (Flow)
Andon Takt Time
Perfection Competition
Profits
Techniques
Autonomation (Jidoka)
Kaizen Kanban Pokayoke
Corporation
Continuous Learning
Stability
Standardized Work Single Piece Flow Visual Management
© Adaptive Business Solutions, LLC – All Rights Reserved
Significantly influenced by Joachim Knuf
74
Importance of a Value Focus Axioms
What if we aren’t focused on value?
Principles
5S Just-in-case
Andon Takt Time
Perfection Competition
Profits
Techniques
Autonomation (Jidoka)
Kaizen Kanban Pokayoke
Corporation
Continuous Learning
Stability
Standardized Work Single Piece Flow Visual Management
© Adaptive Business Solutions, LLC – All Rights Reserved
Significantly influenced by Joachim Knuf
75
Importance of a Value Focus Axioms
What if we aren’t focused on value?
Principles
5S Just-in-case
Andon Takt Time
Good enough Competition
Profits
Techniques
Autonomation (Jidoka)
Kaizen Kanban Pokayoke
Corporation
Continuous Learning
Stability
Standardized Work Single Piece Flow Visual Management
© Adaptive Business Solutions, LLC – All Rights Reserved
Significantly influenced by Joachim Knuf
76
Importance of a Value Focus Axioms
What if we aren’t focused on value?
Principles
5S Just-in-case
Andon Takt Time
Good enough Competition
Profits
Techniques
Automation
Kaizen Kanban Pokayoke
Corporation
Continuous Learning
Stability
Standardized Work Single Piece Flow Visual Management
© Adaptive Business Solutions, LLC – All Rights Reserved
Significantly influenced by Joachim Knuf
77
Importance of a Value Focus Axioms
What if we aren’t focused on value?
Principles
5S Just-in-case
Andon Takt Time
Good enough Competition
Profits
Techniques
Automation
Kaizen Kanban Pokayoke
Corporation
Program of the month
Stability
Standardized Work Single Piece Flow Visual Management
© Adaptive Business Solutions, LLC – All Rights Reserved
Significantly influenced by Joachim Knuf
78
Importance of a Value Focus Axioms
What if we aren’t focused on value?
Principles
5S Just-in-case
Andon Takt Time
Good enough Competition
Profits
Techniques
Automation
Kaizen Kanban Pokayoke
Corporation
Program of the month
My way
Standardized Work Single Piece Flow Visual Management
© Adaptive Business Solutions, LLC – All Rights Reserved
Significantly influenced by Joachim Knuf
79
Importance of a Value Focus Axioms
What if we aren’t focused on value?
Principles
Mess Just-in-case
Andon Takt Time
Good enough Competition
Profits
Techniques
Automation
Kaizen Kanban Pokayoke
Corporation
Program of the month
My way
Standardized Work Single Piece Flow Visual Management
© Adaptive Business Solutions, LLC – All Rights Reserved
Significantly influenced by Joachim Knuf
80
Importance of a Value Focus Axioms
What if we aren’t focused on value?
Principles
Mess Just-in-case
Assign blame Takt Time
Good enough Competition
Profits
Techniques
Automation
Kaizen Kanban Pokayoke
Corporation
Program of the month
My way
Standardized Work Single Piece Flow Visual Management
© Adaptive Business Solutions, LLC – All Rights Reserved
Significantly influenced by Joachim Knuf
81
Importance of a Value Focus Axioms
What if we aren’t focused on value?
Principles
Mess Just-in-case
Assign blame Speed
Good enough Competition
Profits
Techniques
Automation
Kaizen Kanban Pokayoke
Corporation
Program of the month
My way
Standardized Work Single Piece Flow Visual Management
© Adaptive Business Solutions, LLC – All Rights Reserved
Significantly influenced by Joachim Knuf
82
Importance of a Value Focus Axioms
What if we aren’t focused on value?
Principles
Mess Just-in-case
Assign blame Speed
Good enough Competition
Profits
Techniques
Automation
Band aide Kanban Pokayoke
Corporation
Program of the month
My way
Standardized Work Single Piece Flow Visual Management
© Adaptive Business Solutions, LLC – All Rights Reserved
Significantly influenced by Joachim Knuf
83
Importance of a Value Focus Axioms
What if we aren’t focused on value?
Principles
Mess Just-in-case
Assign blame Speed
Good enough Competition
Profits
Techniques
Automation
Band aide Excess inventory Pokayoke
Corporation
Program of the month
My way
Standardized Work Single Piece Flow Visual Management
© Adaptive Business Solutions, LLC – All Rights Reserved
Significantly influenced by Joachim Knuf
84
Importance of a Value Focus Axioms
What if we aren’t focused on value?
Principles
Mess Just-in-case
Assign blame Speed
Good enough Competition
Profits
Techniques
Automation
Band aide Excess inventory Rework
Corporation
Program of the month
My way
Standardized Work Single Piece Flow Visual Management
© Adaptive Business Solutions, LLC – All Rights Reserved
Significantly influenced by Joachim Knuf
85
Importance of a Value Focus Axioms
What if we aren’t focused on value?
Principles
Mess Just-in-case
Assign blame Speed
Good enough Competition
Profits
Techniques
Automation
Band aide Excess inventory Rework
Corporation
Program of the month
My way
Tribal knowledge Single Piece Flow Visual Management
© Adaptive Business Solutions, LLC – All Rights Reserved
Significantly influenced by Joachim Knuf
86
Importance of a Value Focus Axioms
What if we aren’t focused on value?
Principles
Mess Just-in-case
Assign blame Speed
Good enough Competition
Profits
Techniques
Automation
Band aide Excess inventory Rework
Corporation
Program of the month
My way
Tribal knowledge Batch and queue Visual Management
© Adaptive Business Solutions, LLC – All Rights Reserved
Significantly influenced by Joachim Knuf
87
Importance of a Value Focus Axioms
What if we aren’t focused on value?
Principles
Mess Just-in-case
Assign blame Speed
Good enough Competition
Profits
Techniques
Automation
Band aide Excess inventory Rework
Corporation
Program of the month
My way
Tribal knowledge Batch and queue Search & find
© Adaptive Business Solutions, LLC – All Rights Reserved
Significantly influenced by Joachim Knuf
88
Importance of a Value Focus Axioms
Principles
Techniques 5S
Just-in-case
Andon Takt time
Good enough Competition
Profits
Automation
Kaizen Kanban Poke yoke
Corporation
Program of the month
My way
Standardized work
Can an organization only use the tools & techniques?
Single piece flow Visual management
© Adaptive Business Solutions, LLC – All Rights Reserved
Significantly influenced by Joachim Knuf
89
Importance of a Value Focus Axioms
Yes…but it requires constant emphasis.
Principles
Mess Just-in-case
Assign blame Speed
Good enough Competition
Profits
Techniques
Automation
Band aide Excess inventory Rework
Corporation
Program of the month
My way
Tribal knowledge Batch and queue Search & find
© Adaptive Business Solutions, LLC – All Rights Reserved
Conventional organization applying Lean & Six Sigma tools
Significantly influenced by Joachim Knuf
90
Importance of a Value Focus
Lean Techniques
<5% of Lean benefits
Lean Principles
Lean Axioms
Do we only want the tip of the Lean iceberg? © Adaptive Business Solutions, LLC – All Rights Reserved
91
Summary: Conventional vs. Lean Thinking To a conventional organization… • Lean is using specific techniques to increase productivity. Focus solely on cost. • Six Sigma is a tool set driven by “Belts” to solve a companies problems. To a truly Lean organization… • Lean is a culture and management philosophy that eliminates waste and creates value for the customer. • Six Sigma is a way of thinking by everyone to solve your most critical problems.
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Last Thoughts On Why Organizations Fail To Change “It is like tasting the best cake you have ever eaten and asking for the recipe. However, when it is time to bake the cake yourself, you determine that you don’t have the time or patience to follow the recipe exactly so you cut corners. You don’t let mixtures rest over night, you use less expensive ingredients to save money, and you cut the bake time down by a few minutes. Then, when your cake doesn’t taste as good as the original, you blame the recipe!” Bill Suycott Former Adaptive student
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93
Questions?
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94
Contact Us Adaptive Business Solutions facilitates the adoption of Lean thinking into your organization by integrating with your current culture and delivering the education and coaching needed to enhance and sustain customer, employee, and shareholder value. For inquiries regarding our services and availability, feel free to contact us via e-mail at
[email protected], or contact the managing partners directly: Brent Tadsen 126 S. Northwest Hwy Barrington, IL 60010 E-mail:
[email protected] Cell: (312) 720-1731 Todd Wiese W175 N11163 Stonewood Dr.; Suite 214 Germantown, WI 53022 E-mail:
[email protected] Cell: (262) 349-5671 © Adaptive Business Solutions, LLC – All Rights Reserved
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