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Lean Office Dean Pomykala, MBA, LSS. Agenda My Bio Lean Overview – What is Lean? Why go Lean? Value Added vs. Non-Value Added Activities Value Stream.

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Presentation on theme: "Lean Office Dean Pomykala, MBA, LSS. Agenda My Bio Lean Overview – What is Lean? Why go Lean? Value Added vs. Non-Value Added Activities Value Stream."— Presentation transcript:

1 Lean Office Dean Pomykala, MBA, LSS

2 Agenda My Bio Lean Overview – What is Lean? Why go Lean? Value Added vs. Non-Value Added Activities Value Stream Mapping One Piece Flow Kaizen Events 6S Wrap Up Dean Pomykala - Lean Office

3 Agenda My Bio Lean Overview – What is Lean? Why go Lean? Value Added vs. Non-Value Added Activities Value Stream Mapping One Piece Flow Kaizen Events 6S Wrap Up Dean Pomykala - Lean Office

4 My Bio Dean Pomykala - MBA, LSS Green Belt – Presently Director of Instruments Operations Business Improvement Manager – Canberra Industries Radiation Detection & Analysis Equipment – Used in Power Plants, Labs, Military Applications Employees worldwide 400 in Meriden, CT Dean Pomykala - Lean Office

5 My Bio Dean Pomykala - – Education Electronics Technology Bachelors Degree in Business MBA Lean Six Sigma Green Belt – Over 25 years of experience in creating & improving standard work processes Industries include Medical, Military, Aerospace Standards – FDA, ISO, GMP, MIL-SPEC, OSHA Dean Pomykala - Lean Office

6 Agenda My Bio Lean Overview – What is Lean? Why go Lean? Value Added vs. Non-Value Added Activities Value Stream Mapping One Piece Flow Kaizen Events 6S Wrap Up Dean Pomykala - Lean Office

7 Lean Principles Lean Principles can be applied to any industry – Health Care – Food Service – Financial – Shop Floor – Customer Service Any department – Customers can be internal Dean Pomykala - Lean Office

8 Why go Lean?? Survival….. Dean Pomykala - Lean Office

9 Why go Lean?? Why are Companies going Lean? Financial Savings – Huge savings can be made initially from low hanging fruit – Product 1 32 Hours Saved Plus Material $8,000 Each $250,000 in 2013 – Product Hours Saved Plus Material $590 Each $20,000 in Square Feet Dean Pomykala - Lean Office

10 Why go Lean?? Lean Office Projects – Reduce time to enter an order – More efficient method for sales to quote an order – Real-Time Production results displayed in sales office – Freed 6 hours of Shipping/Receiving time Soft Savings – Hidden Value Improved Customer Satisfaction Improved On Time Delivery Faster turn around More efficient process / Time saved – More time to be productive in other ways Dean Pomykala - Lean Office

11 Why go Lean?? General Electric – Saved $12 billion over five years – Added $1 to its earnings per share. Honeywell – Saved more than $800 million Motorola – Reduced manufacturing costs by $1.4 billion from Dean Pomykala - Lean Office

12 Why go Lean?? Baxter Healthcare Corporation – Over a three-day event, a team developed Value Stream Maps (VSM) that detailed the plants use of water and identified processes with potential for improvement – Using the VSMs, the team developed an implementation plan that saves 170,000 gallons of water per day and over $68,000 over the next year, with little or no capital investment Dean Pomykala - Lean Office

13 Why go Lean?? Canyon Creek Cabinet Company – Expect savings of almost $1.5million annually from process improvements – Process improvements include lead time reduction, defect reduction, overproduction, operator motion, and material loss and damage Dean Pomykala - Lean Office

14 Why go Lean?? The Boeing Company – Boeing Everett Productivity improvements of 30-70% Eliminated the use of 350 cubic feet of cardboard & bubble wrap packing material per 747 wing panel set Reduced chemical usage per airplane by 11.6 % – Boeing Auburn Defects have been reduced from 1,200/10,000 (12%) to fewer than 300/10,000 (3%) Reduced floor space by 200,000 square feet Dean Pomykala - Lean Office

15 Why go Lean?? General Electric – Peebles, Ohio Facility General Electric's jet engine facility found ways to reduce its greenhouse gas emissions by implementing Lean methods, while also producing significant cost savings. Lean events contributed to the following successes at the facility: Reduced fuel consumption for GE90 engine testing from 20,000 gallons to 10,000 gallons. Achieved cost savings of $1,000,000 due to fuel use reduction. Dean Pomykala - Lean Office

16 Why go Lean?? NBC & Universal Studios – The Energy Treasure Hunt Model Conducted well over 200 treasure hunts globally with a combined emissions reduction of over 250,000 metric tons of Green House Gas. Saved over $14 billion dollars Dean Pomykala - Lean Office

17 Why go Lean?? Monetary Savings are easy to see Soft Savings or Efficiency Savings – Increase in Efficiency – Increased Customer Satisfaction – Increased Market Share Revenue will follow Dean Pomykala - Lean Office

18 World Class It should be everybodys goal to become a World Class Company World Class – Standard-Setting Excellence – The standard by which all others are measured Dean Pomykala - Lean Office

19 World Class Does your product or service have Standard-Setting Excellence? Are your internal processes the standard by which all others are measured? Does your company function like a World Class Company? Is your competition World Class? Dean Pomykala - Lean Office

20 Becoming World Class Implement Lean Principles Systematic Continuous Improvement – Product/Service & Processes Reduce Costs – Not just raw material costs…. – The cost of doing business People spend too much time fighting fires Bureaucracy gets in the way Generate a Road Map – Where are you & where do you want to be Dean Pomykala - Lean Office

21 What is Lean?? Lean is a philosophy that characterizes all activities as either – Value Added (VAT) – Non-Value Added (NVAT) Lean strives to eliminate or reduce all Non-Value Added Activity Dean Pomykala - Lean Office

22 Continuous Improvement – Identify which Processes need to be addressed – Use Lean Tools to identify road blocks, bottle necks, redundancies, bureaucracies, etc. – Use Lean Tools to determine where you want to be & make consistent improvements over time to reach your goals Dean Pomykala - Lean Office

23 Implementing Lean Principles DISCUSSION QUESTION – Three minutes Can you list 2 – 3 internal processes that can be improved? Dean Pomykala - Lean Office

24 Change Fear of change is the biggest obstacle in implementing Lean Principles – Thats the way we do it – Weve always done it that way – That wont work here Change is not only inevitable, it is necessary Dean Pomykala - Lean Office

25 Paradigm Shift Paradigm – A philosophical or theoretical framework – The way we look at the world Paradigm Shift – A radical change in underlying beliefs – When a conventional world view is replaced with another Business Models Change – The preferred method today may not be preferred tomorrow Dean Pomykala - Lean Office

26 Thats the way weve always done it. Business Models & Paradigm Shifts Dean Pomykala - Lean Office

27 Paradigm Shift The Vuja De Moment! (Simon T. Bailey) – Vuja De is the reverse of the Déjà vu, which means already seen it. The Vuja de moment is when youve never seen something but you intend to create it. – The Vuja De Moment! When your own eyes become a fresh set of eyes to see the same thing everyone else sees, but in a unique way. Dean Pomykala - Lean Office

28 Agenda My Bio Lean Overview – What is Lean? Why go Lean? Value Added vs. Non-Value Added Activities Value Stream Mapping One Piece Flow Kaizen Events 6S Wrap Up Dean Pomykala - Lean Office

29 Value Added Activity – Any activity that transforms raw material (Inventory) into a finished product that the customer is willing to pay for Painting Assembling Face time with Clients Medical – Face time with Patients Food Service – Food Prep – Serving Dean Pomykala - Lean Office

30 Non-Value Added Activity – Any activity that consumes resources (Labor & Material), but does not add value to the product Anything that your customer does not perceive as value is waste – Ask yourself, Is the customer willing to pay for what I am doing at the moment? Dean Pomykala - Lean Office

31 The 7 Wastes Overproduction Waiting Transportation (The Product) Motion (People) Inventory Over Processing Defects Dean Pomykala - Lean Office

32 The 7 Wastes Transportation (The Product) Motion (People) Inventory Dean Pomykala - Lean Office

33 Waste/Non-Value Added Activity Examples – Getting Approvals – Waiting for Medical Tests – Searching for Medical Records – Walking to get ingredients – Setting Tables / Washing Dishes – Non-Value Added, but Necessary Dean Pomykala - Lean Office

34 Waste/Non-Value Added Activity Anything that your customer does not perceive as value is WASTE What is the customer willing to pay for? – Assembling? Yes – Repair? No – Time spent walking to copier – Time waiting for approvals Bureaucracy – Checking other peoples work – Searching for files Dean Pomykala - Lean Office

35 Review of Waste DISCUSSION QUESTION – Three minutes Can you list 2 – 3 forms of waste or Non-Value Added Activities at work? Dean Pomykala - Lean Office

36 Agenda My Bio Lean Overview – What is Lean? Why go Lean? Value Added vs. Non-Value Added Activities Value Stream Mapping One Piece Flow Kaizen Events 6S Wrap Up Dean Pomykala - Lean Office

37 Value Stream Mapping A tool used to show the work flow – Clearly lays out Value Added & Non-Value Added Activities – Exposes the 7 forms of waste Create a map for: – Present State – Future State Dean Pomykala - Lean Office

38 Value Stream Mapping Dean Pomykala - Lean Office

39 Value Stream Mapping Dean Pomykala - Lean Office

40 Value Stream Mapping Dean Pomykala - Lean Office

41 Value Stream Mapping Dean Pomykala - Lean Office

42 Value Stream Mapping Dean Pomykala - Lean Office

43 Value Stream Mapping Dean Pomykala - Lean Office

44 Value Stream Mapping Dean Pomykala - Lean Office

45 Value Stream Mapping Dean Pomykala - Lean Office Get all of the appropriate people in a room – At least one per department Map your Current State Map your Future State Make the Future State your new Present State Re-Visit for Continuous Improvements

46 Agenda My Bio Lean Overview – What is Lean? Why go Lean? Value Added vs. Non-Value Added Activities Value Stream Mapping One Piece Flow Kaizen Events 6S Wrap Up Dean Pomykala - Lean Office

47 One Piece Flow One Piece Flow is not just for Manufacturing Dean Pomykala - Lean Office Person 1 10 Minutes Moves Stack to Person 2 Person 2 10 Minutes for each folder Total Time = 201 Minutes Total Value Added Time = 20 Minutes Waits for 10 folders 5% Efficient VAT = 10 Minutes NVAT = 90 Min (Wait Time) NVAT = 1 Min (Transportation Time) VAT = 10 Min NVAT = 90 Min (Wait Time)

48 Benefits of One Piece Flow Does not overwhelm Shipping at the end of the day Ship Product to each Customer faster Customers get consistent service – Is it 100% customer focused to let one customer wait while you work on another? Steady Out = Steady In – Inventory Control Dean Pomykala - Lean Office

49 One Piece Flow / One Touch Pull System / Only build what the Customer Orders Custom Builds 6S Visual Management of Inventory / Supply Chain Management New Fast Food Model Wastes?? Overproduction? Waiting? Transportation? Motion? Inventory? Over Processing? Defects? Dean Pomykala - Lean Office

50 Agenda My Bio Lean Overview – What is Lean? Why go Lean? Value Added vs. Non-Value Added Activities Value Stream Mapping One Piece Flow Kaizen Events 6S Wrap Up Dean Pomykala - Lean Office

51 Kaizen Events – Short Term Project – Intense & Focused – Concentrate the focus on clear & concise objectives Reduce Cost, Reduce Lead Time, Reduce Customer Wait Time, etc… – Cross-Functional Team Includes personnel from several departments Dean Pomykala - Lean Office

52 Kaizen Events – Create a Value Stream Map – Create a Future State Move work areas Set up new work stations – Make custom tool sets » Tools » Office supplies Documentation Dean Pomykala - Lean Office

53 Agenda My Bio Lean Overview – What is Lean? Why go Lean? Value Added vs. Non-Value Added Activities Value Stream Mapping One Piece Flow Kaizen Events 6S Wrap Up Dean Pomykala - Lean Office

54 6S 6S is intended to create an Efficient work area – Safety – Sort – Straighten – Shine – Standardize – Sustain Dean Pomykala - Lean Office

55 6S Dean Pomykala - Lean Office

56 6S Dean Pomykala - Lean Office Organized & Accessible Tools Easily Identified Missing Tool

57 6S Dean Pomykala - Lean Office

58 6S Which is more efficient? Which looks World Class? Dean Pomykala - Lean Office

59 Agenda My Bio Lean Overview – What is Lean? Why go Lean? Value Added vs. Non-Value Added Activities Value Stream Mapping One Piece Flow Kaizen Events 6S Wrap Up Dean Pomykala - Lean Office

60 Wrap Up Lean Concepts – Value Stream Map – Identify Waste Eliminate or Reduce Waste – One Piece Flow where possible – 6S for an efficient workplace – Continuous Improvement Re-Visit everything Dean Pomykala - Lean Office

61 Wrap Up Become World Class Use Systematic Continuous Improvement Enhance the entire Organization by: – Examining your own Processes & Procedures – Several small but consistent successes make one big SUCCESS Dean Pomykala - Lean Office

62 Wrap Up The Key to Success Continuous Improvement Visualize a World Class Environment Then make your vision a reality Dean Pomykala - Lean Office

63 Questions?? Dean Pomykala – – Dean Pomykala - Lean Office


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