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Slide 1Lean Operations© Van Mieghem Lean Operations House Building Game The transition to Lean Ops The Paradigm of Lean Operations: The ideal Basic philosophy of Lean Ops Lean tools for synchronization & waste reduction Driving Continuous Improvement through Visibility
Slide 2Lean Operations© Van Mieghem Paradigm of Lean Operations: In Search for the Holy Grail The ideal Process = – Synchronization of all flows 1 x 1 production on demand defect free – At lowest possible cost Waste = Gap between ideal and actual è How do we sync at lowest cost?> Synchronization or Lean Tools è How do we set up a system to continually reduce waste ?
Slide 3Lean Operations© Van Mieghem Improvement as a process The Ideal Operation perfectly synchronized with demand at lowest cost The Actual Operation = deviation from ideal = waste, variability, inflexibility = opportunity for improvement Reduce Root cause analysis & problem solving mindset Waste reduction (Lean tools) Variability reduction (Six Sigma, TQM) Increase visibility of Andon pulls, workplace organization Exploratory stress Process measurement, visual management Continuous Improvement Process
Slide 4Lean Operations© Van Mieghem The architect behind Lean Operations: Toyotas Taiichi Ohno and waste elimination Toyota Production System: Beyond Large-Scale Production by Taiichi Ohno Lean operations has been defined as a business system for organizing and managing product development, operations, suppliers, and customer relations that requires less human effort, less space, less capital, and less time to make products with fewer defects to precise customer desires, compared with the previous system of mass production.
Slide 5Lean Operations© Van Mieghem Waste Incidental Activity Value Added Activity Work or time that directly increases the value of the product in the eyes of the customer (e.g. Assembly of parts) What the customer is paying for Waste Work or time that does not add any value to a product Waste is sometimes called "muda", from the Japanese for waste Incidental Activity Work or time that does not directly add customer value, but which is currently necessary to maintain operations (e.g. small movements to reach for material for assembly) Objective The objective is to maximise the proportion of value added activity by eliminating waste and incidental activity Elements of work There are three elements of work
Slide 6Lean Operations© Van Mieghem 8 8 Motion Walking around the factory looking for something or fetching equipment Inventory Excess stock of drugs or equipment in clinical areas Waiting Mortgage applications piling in a desktop in tray Rework Documenting the same information in several places for a new hospital patient Over-processing Polishing a luxury walnut dashboard to a mirror finish on both sides Over-production Making parts on a piece rate basis to fully load individual machines Intellect Failure to make full use of the whole teams experience and knowledge Transportation Transferring finished goods to off-site packing and then freighting onto customers THERE ARE 7 CLASSIC TYPES OF WASTE wormpit
Slide 7Lean Operations© Van Mieghem Lean Tool #1: cut batch sizes An illustrative example Consider the following 4-step process: What is: – The bottleneck: – The process capacity or maximal R: – The theoretical flow time T th – The minimal amount of inventory needed to run at capacity: I th – Call this scenario 1, the best. Lets now consider what happens if we have (transfer) batches A 1 min/job Resource 1 B 1 min/job Resource 2 C 1 min/job Resource 3 D 1 min/job Resource 4
Slide 8Lean Operations© Van Mieghem Lean Tool #1: cut batch size ABCD example continued Batch Shop (Batchsize = 4) A B C D 0 Elapsed Time 2 1 4 3 2 1 4 3 2 1 4 3 2 1 4 3 T T =I =R = 8 7 0 9 Flow Shop (Batchsize = 1) A B C D 0 Elapsed Time 1 T 1 1 1 2 2 2 2 3 3 3 3 4 4 4 4 5 T =I =R = = scenario ? 6 5 8 7 6 5 8 7 6 5 8 7 0 9 2 1 4 3 6 5 0 9 2 1
Slide 9Lean Operations© Van Mieghem Changeover / setup / batch related costs must be reduced if batch size is to be decreased Synchronization requires smaller batch sizes or even 1 x 1
Slide 10Lean Operations© Van Mieghem Lean Tool #2: process on demand = pull Just-In-Time operations JIT = have exactly what is needed, in the quantity it is needed, when it is needed, where it is needed. hand-to-mouth material flow needed by whom?
Slide 11Lean Operations© Van Mieghem Lean Tool #2: Synchronization with demand: customer demand pulls product Supplier inputsoutputs ProcessCustomer PUSH: Inputs availability triggers execution Supplier inputsoutputs ProcessCustomer PULL: Outputs need triggers execution
Slide 12Lean Operations© Van Mieghem Lean Tool #2: how make pull system in house game? Production control Roof cut Base cut FA Base assembly
Slide 13Lean Operations© Van Mieghem Lean Tool #2: Pull Implementation: Kanban Production Control Systems Kanban Processing center i Processing center i + 1 WIP Job http://www.toyota.co.jp/en/vision/production_system/video.html
Slide 14Lean Operations© Van Mieghem Lean Tool #3: Quality at the Source Defects Found at: Own Station Next Station End of Line Final Inspection End Users Hand $ $ $ $ $ Impact to the Company Very Minor Minor Delay Rework Resched. of work Significant Rework Delay in Delivery Additional Inspection Warranty costs Administra tive costs Reputation Loss of Market Share
Slide 15Lean Operations© Van Mieghem Reducing Waste: Quality at the Source Fool-proof/Fail-safe design (Poka-Yoke) Inspection – Self – Automated ( Jidoka ) Line-stopping empowerment (Andon) Trouble! Approach for operators Preventative If trouble, STOP! If defective don't pass Line-stopping empowerment Approach for machines A mistake-proofing system prevents errors and defects Stop line when defects are detected or machine breaks down Poka Yoke and Jidoka
Slide 16Lean Operations© Van Mieghem Lean Tool #4: Flexible Resources & Standardized Work Cross training of workforce allows resource pooling Use of IT in services
Slide 17Lean Operations© Van Mieghem 17 WORKPLACE ORGANIZATION – 5S Maintenance of improved condition Waste identification and elimination Check what is needed and get rid of what is not used Place each item in its optimal position in the workplace and employ visual management Keep the area and equipment always clean. Set a cleaning program Improve and maint-ain the first 3 "S" by improving the en- vironment: –visual controls –standard machine improvements –standard procedures for all similar areas Employ systems to monitor 5S and ensure that it is constantly maintained Organize the workplace with the aim to Identify and eliminate waste Maintain and continuously improve the workplace/equipment Improve morale and increase worker involvement Objectives Sort Set in order ShineSustainStandardize 5S is a structured approach to systematically clean and organize the workplace to support a lean working environment
Slide 18Lean Operations© Van Mieghem Lean Tool #5: Heijunka Mixed Level/Balanced Production Batch Production Schedule Mixed Production Schedule (AAAABBBB..)(ABAB...) Product April 1.................15...........................30 April 1....................15.......................30 A B time FGI time FGI http://www.toyota.co.jp/en/vision/production_system/video.html
Slide 19Lean Operations© Van Mieghem SILS: shipping in line sequence Business Mall adjacent to Russelsheims LeanField
Slide 20Lean Operations© Van Mieghem Lean Tool #6: From Functional LayouttoProduct Cell organization Production Control Roof Cut Base Cut FA Base Assy Production Control Production Control Production Control Roof Cut Roof Cut Roof Cut Base Cut Base Cut Base Cut Base Assy Base Assy Base Assy FA Department 1 Department 2 Cell 1 Production Control Roof Cut Base Cut FA Base Assy Cell 3 Production Control Roof Cut Base Cut FA Base Assy Cell 2
Slide 21Lean Operations© Van Mieghem Scrap & Rework Missed Due Dates Too Much Space Late Deliveries Poor Quality Machine Downtime Engineering Change Orders Long queues Too much paperwork 100% inspection Inventory Towards a system of continuous improvement: Increase Problem Visibility– Lower water to expose rocks
Slide 22Lean Operations© Van Mieghem Visibility: Time plays the role of Inventory in Lean Service Operations TIME
Slide 23Lean Operations© Van Mieghem Towards a system of continuous improvement: Kaizen Tools Reduce variability – Standard operating procedures Increase visibility of waste and quality at source – Line-stopping empowerment (Andon) – Quality inspection: Self & Automated ( Jidoka ) – Fool-proof/Fail-safe design (Poka-Yoke) Targeted improvements: root cause analysis (6 Whys) – Active worker involvement – Time for experimentation – Supplier involvement Exploratory stress Human infrastructure & process measurement and review (visual management)
Slide 24Lean Operations© Van Mieghem Learning Objectives Lean Operations Paradigm of Lean Operations: Strive for the ideal by eliminating waste This is a total business management system Synchronization Tools 1. Reduced batch sizes 2. Pull production control systems (vs. push)JIT & Kanban control 3. Quality at the source 4. Resource pooling 5. Level loading (Heijunka) 6. Layout: Cellular operations Set up a System for Continuous Improvement 1. Reduce variability (standard operating procedures) 2. Increase visibility (river analogy) 3. Improve human infrastructure
Slide 25Lean Operations© Van Mieghem
Slide 26Lean Operations© Van Mieghem Sears (SHC) does actually have a whole social media team who handles their Twitter and Facebook accounts. They are VERY pro-active on those accounts. SHC contracts out to Viewpoints, which is the company I work for. We run the MySears, MyKmart and Craftsman Community platforms for them, and handle customer service in a pro-active way on those accounts Along with the senior customer service reps, and folks at corporate, MySears is very fortunate to have a handful of associates or call center employees who pop on to assist, as well. They are not paid, but are influencers who receive an "Advisor" recognition badge for their help. We wish we had more folks like these, as their contributions are most helpful. Here are a few threads that we would consider "wins" for SHC, as the site helped solve an issue or complaint for a particular customer: – This member was all over the board complaining about the Sears "Lifetime Warranty" on Tools. He ended up connecting with the VP of Tools through the site, something that would be impossible without utilizing social media: http://www.mysears.com/Tools--7018/topics/WARRANTY- ISSUES/postshttp://www.mysears.com/Tools--7018/topics/WARRANTY- ISSUES/posts – Someone who visited having issues with their washer: http://www.mysears.com/Appliances/topics/Kenmore-3-1-CU-FT-IEC-High-Efficiency- Front-Load-Washer-model-42052/posts?page=1http://www.mysears.com/Appliances/topics/Kenmore-3-1-CU-FT-IEC-High-Efficiency- Front-Load-Washer-model-42052/posts?page=1 – One of the above mentioned "Advisor" that help. This member who offered his suggestion is actually a retired service techinician who hangs out a bunch on the site: http://www.mysears.com/Dishwashers--3933/topics/Washer-model-number-665- 17033402/posts?page=1#post_199551http://www.mysears.com/Dishwashers--3933/topics/Washer-model-number-665- 17033402/posts?page=1#post_199551
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