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ACME Proprietary Welcome to ACME Corporation!. ACME Proprietary Lean 100: An Introduction to Lean Thinking Month 200X.

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Presentation on theme: "ACME Proprietary Welcome to ACME Corporation!. ACME Proprietary Lean 100: An Introduction to Lean Thinking Month 200X."— Presentation transcript:

1 ACME Proprietary Welcome to ACME Corporation!

2 ACME Proprietary Lean 100: An Introduction to Lean Thinking Month 200X

3 ACME Proprietary Jay Watson Lean Advocate

4 Lean 100 Page 4 ACME Proprietary Learning Objectives Know Share Company Mission/ Charter Introduce Lean Enterprise concepts Provide reference materials Show Through a small-group exercise, demonstrate waste inherent in a process Share sampling of ‘improvement tools’ Do Develop and adopt one (or more) idea(s) for improvement Review Re-cap key concepts of Lean Thinking

5 Lean 100 Page 5 ACME Proprietary Strategy The company's business strategy is based on four principles: clear market focus, product line breadth, technical excellence and cost efficiency. First, we focus our business on customers whose applications can be best served by smaller space and rocket systems, which have grown to be an important part of the $100 billion global space industry. Second, we develop and manufacture a complete set of advanced lightweight satellites and comparable launch vehicles that are responsive to our customers' needs. Third, we emphasize creative yet thorough design and engineering along with meticulous purchasing, production, and testing, to assure the highest safety and reliability for our space products. And finally, we rely on a strong company culture and disciplined management systems that stress cost consciousness and efficient use of resources. Adding Value in everything we do … - sample -

6 Lean 100 Page 6 ACME Proprietary Credo SpaceCo is committed to providing High-Reliability Space and Defense Systems to Our Customers. We will achieve this through: 1.Maintaining a highly skilled and motivated team. 2.Establishing and reviewing Product Quality Metrics. 3.Continuously Evaluating and Improving our Processes. 4.Endeavoring to meet and exceed Our Customer’s requirements and expectations. - sample -

7 Lean 100 Page 7 ACME Proprietary Deployment Mission: “Implement Lean Enterprise across all SpaceCo divisions using - comprehensive training standardized rewards and recognition teamwork … so that Waste and Cost are reduced and Quality, Profit and Customer Satisfaction are increased.” Vision: “A Corporate Culture where Continuous Improvement is a part of every Employee’s workday.” - sample -

8 Lean 100 Page 8 ACME Proprietary History of Lean Thinking Pre-industrial - Circa 1890 Mass Production – circa 1930 Lean Manufacturing - circa 1980 Craftsmen perform all aspects of task Self-taught or apprenticeship training Employees contribute minimally to total product Training for limited skills Management makes decisions Clusters of employees working in teams Extensive, continuing training Customized, non-standard products Variation in quality Standardized, focused on volume not quality Focus on internal/ external customer Independence, discretion Variety of skills Responsibility Limited skills and knowledge Repetitive, mind-numbing work Little discretion, simplified tasks Some discretion, group effectiveness, empowerment, team accountability, work cells People Product Work Environment

9 Lean 100 Page 9 ACME Proprietary Reduced Lead Time “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,

10 Lean 100 Page 10 ACME Proprietary Reduced Lead Time “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

11 Lean 100 Page 11 ACME Proprietary Lean Is Market Driven Every morning in Africa, a gazelle wakes up. It knows it must run faster than the fastest lion or it will be killed. Every morning a lion wakes up. It knows it must outrun the slowest gazelle or it will starve to death. It doesn’t matter whether you are a lion or a gazelle — when the sun comes up, you had better be running.

12 Lean 100 Page 12 ACME Proprietary Defining Lean Lean is: “A systematic approach to identifying and eliminating waste (non-value- added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection.” — The MEP Lean Network

13 Lean 100 Page 13 ACME Proprietary Defining Lean Thinking Lean Thinking is: “A way to specify value, line-up value creating actions in the best sequence, conduct these activities without interruption whenever someone requests them, and perform them more and more effectively.” — Lean Thinking Womack and Jones

14 Lean 100 Page 14 ACME Proprietary What Is Waste? Waste is “anything other than the minimum amount of equipment, materials, parts, space, and worker’s time which are absolutely essential to add value to the product.” ~ Shoichiro Toyoda President, Toyota Motors (#1 car company in the world… w/ sales surpassing GM 4/25/2007)

15 Lean 100 Page 15 ACME Proprietary Demonstration Let’s have some fun ! (First trial)

16 Lean 100 Page 16 ACME Proprietary Definition of Value-Added Work Content Value-Added: Any activity – done right the first time - that increases the market, form, or function of the product or service. (These are things the customer is willing to pay for.) Non-Value-Added: Any activity that does not add market form or function or is not necessary. (These activities should be eliminated, simplified, reduced, or integrated.)

17 Lean 100 Page 17 ACME Proprietary Lean = Eliminating Waste and Wasteful Practices Typically 95% of all lead time is non-value-added. Value-AddedNon-Value-Added Overproduction Overproduction Waiting Waiting Transportation Transportation Non-value-added processing Non-value-added processing Excess inventory Excess inventory Defects Defects Excess motion Excess motion Underutilized people Underutilized people

18 Lean 100 Page 18 ACME Proprietary Demonstration Let’s have some MORE fun ! (second Trial)

19 Lean 100 Page 19 ACME Proprietary Eight Wastes

20 Lean 100 Page 20 ACME Proprietary Waste of Defects Inspection and repair of material in inventory Causes of defects: –Complex product design –Poor Root Cause Analysis –Poor Supplier Management –Customer needs not understood –Weak process control –Constant overtime –Misuse of priority system –Deficient planned maintenance –Inadequate education, training, or work instructions

21 Lean 100 Page 21 ACME Proprietary Processing Waste Effort that adds no value to the product or service from the customers’ viewpoint Causes of processing waste: –Product changes without process changes –Just-in-case logic –True customer requirements not clearly defined –Over-processing to accommodate downtime –Lack of communication –Redundant approvals –Extra copies or excessive paperwork

22 Lean 100 Page 22 ACME Proprietary Waiting Waste Idle time created when waiting for: –Material –Paperwork –Approvals Causes of waiting waste: –Unbalanced workload –Unplanned maintenance –Disorganized work areas –Long process setup times –Misuses of automation –Upstream quality problems –Unleveled scheduling

23 Lean 100 Page 23 ACME Proprietary Waste of Human Resources The waste of not using people’s mental, creative, and physical abilities Causes of people waste: –Old guard thinking, politics, the business culture –Poor hiring practices –Poor personnel assignments –Fire fighting strategy –Low or no investment in training –Low pay, high turnover strategy

24 Lean 100 Page 24 ACME Proprietary Motion Waste Any movement of people or machines that does not add value to the product or service Causes of motion waste: –Unfavorable facility or cell layout –Poor workplace organization and housekeeping –Inconsistent work methods –Trying to look busy while waiting

25 Lean 100 Page 25 ACME Proprietary Waste of Transportation Transporting parts and materials around the plant Causes of transportation waste: –Poor plant layout –Poor understanding of the process flow for production –Large batch sizes, long lead times, and large storage areas

26 Lean 100 Page 26 ACME Proprietary Waste of Inventory Any supply in excess of a one-piece flow through your process Causes of excess inventory: –Need for buffer against inefficiencies and unexpected problems –Product complexity –Unreliable shipments by suppliers –Minimum buy requirements –Functional vs. Team goals –Reward system –Unleveled scheduling –Unbalanced workload –Misunderstood communications –Poor market forecast

27 Lean 100 Page 27 ACME Proprietary Waste of Overproduction Making more than is required by the next process Making earlier than is required by the next process Making faster than is required by the next process Causes of overproduction: –Over-engineering –Redundant inspections –Unbalanced workload –Un-level scheduling –Long process setup –Just-in-case logic –Misuse of automation

28 Lean 100 Page 28 ACME Proprietary Push versus Pull Systems Push System Resources are provided to the consumer based on forecasts or schedules Pull System is a flexible and simple method of controlling or balancing the flow of resources Eliminating waste of handling, storage, expediting, obsolescence, repair, rework, facilities, equipment, excess inventory (work-in-process and finished goods) Pull System A method of controlling the flow of resources by replacing only what has been consumed Pull System consists of: Production based on actual consumption Small lots Low inventories Management by sight Better communication

29 Lean 100 Page 29 ACME Proprietary Ask what? What is the operation doing? Ask why? Why is the operation necessary? Ask why at least 5 times to lead you to the root cause Everything that is not work is waste Once you know the function, you can identify as waste anything that does not execute that function Draft an improvement plan… Ask how? ? ? How to uncover Waste

30 Lean 100 Page 30 ACME Proprietary How to uncover Waste ? ? Map and Analyze Process steps …

31 Lean 100 Page 31 ACME Proprietary How to uncover Waste ? ? Id Waste & Organize the workplace … 5S is a ‘good start’

32 Lean 100 Page 32 ACME Proprietary How to uncover Waste ? ? Standardize & Mistake-proof Processes. Monitor Results! Through Teamwork … attack root causes Accountability

33 Lean 100 Page 33 ACME Proprietary Why Change? “The dogmas of the quiet past are inadequate to the stormy present. The occasion is piled high with difficulty, and we must rise with the occasion. As our case is new, so we must think anew, and act anew.” ~ Abraham Lincoln “The definition of insanity is doing the same thing over and over and expecting different results.” ~ Albert Einstein

34 Lean 100 Page 34 ACME Proprietary Funny Thing About Continuous Improvement Old Adage: “If you always do what you always did, you’ll always get what you always got.” Competitive Corollary: “If the other guy gets better, you’re going to get less.” “With regard to Continuous Improvement – The Sky’s the Limit !!” ~ Jay Watson

35 Lean 100 Page 35 ACME Proprietary Building Blocks of The Lean Enterprise “Continuous Improvement” TeamworkRewards / RecognitionTraining

36 Lean 100 Page 36 ACME Proprietary Building Blocks of The Lean Enterprise “Continuous Improvement” Value Stream Mapping TeamworkRewards / RecognitionTraining

37 Lean 100 Page 37 ACME Proprietary Building Blocks of The Lean Enterprise Quick Changeover Standardized WorkBatch ReductionLayout Quality at Source 5S SystemTeamsVisual Management POUS Cellular / FlowPull / KanbanTPM “Continuous Improvement” Value Stream Mapping TeamworkRewards / RecognitionTraining

38 Lean 100 Page 38 ACME Proprietary Lean Enterprise Practices Continuous Improvement (CI) philosophy Teams –With rotation of highly specified job skills –Using a disciplined problem–solving process Cross-trained and multi-skilled employees –Who can work many operations within a cell and operations in different cells (or capacities) Process quality, not inspection Use of participatory decision-making –Facilitator-led, team-based problem-solving, suggestion systems, etc.

39 Lean 100 Page 39 ACME Proprietary Barriers to Improvement If we all know we need to improve, the question becomes: why don’t we?

40 Lean 100 Page 40 ACME Proprietary Traditional Culture Leader makes all decisions – Team Members follow with little input Process Improvement ideas are devised by the Leader and carried out by the Team Members Culture will succeed when the Team Members are inexperienced or when immediate decisions are critical (Peace Officers, Military) Process Improvement ideas are only as good as the single person who makes them Little vested interest from Team Members

41 Lean 100 Page 41 ACME Proprietary Evolving Culture More experienced Team members and more enlightened Leadership Teams surface their ideas for Leaders final approval Better Continuous Improvement ideas are devised because of the increased participation and slight shift in ownership Employee Satisfaction increases Leadership begins to shift from Tactical to Strategic decision making

42 Lean 100 Page 42 ACME Proprietary Evolved Culture Leader sets boundaries based on Company fiscal plans and objectives Self Directed work teams manage all Tactical issues Leader removes barriers and monitors performance while teams develop solutions and meet objectives Building Consensus over following orders

43 Lean 100 Page 43 ACME Proprietary Management May Need to Change New Leadership Style Managers must: –Earn trust –Promote and reward participation –Provide skill training and systems that allow successful completion of work The Manager’s Evolving Role Imposing Solutions to Managing Performance Tactical to Strategic From controlling information to sharing ideas From criticizing the mistakes to rewarding the “almost rights” From bureaucratic decision-making to worker–driven continuous improvement

44 Lean 100 Page 44 ACME Proprietary Associates May Need to Change Employees must be willing to: –Learn new skills –Participate in teams and surface ideas –Make decisions, take risks, and make mistakes –Share the responsibility for implementing changes –Support ‘continuous improvement’

45 Lean 100 Page 45 ACME Proprietary Let’s Build Quality at Every Step Design for manufacture/ assembly –Complex designs cause defects End-product knowledge (NOAC) –Will my output satisfy my customer? Standardized Work (SW) –Eliminate Tribal knowledge (“Rig something up”) / A single point of failure leads to poor quality and unreliable legacy Communication –Timely feedback to associates and vendors when quality problems are detected Mistake Proofing –Low-cost, highly reliable innovations that will detect abnormal situations before they occur, or if they occur, will stop the Operation

46 Lean 100 Page 46 ACME Proprietary Implementation Strategy Awareness of and active promotion of Continuous Improvement – a ‘Safer, Better, Faster’ mindset Training (OTJ and OYO) Development (Self-directed) Focused Improvement Events (Kaizen) Team participation (Projects) Culture Change (Continuous Improvement Mentality) Long Term Planning Benchmarking Promotion of Success (Betterment of Organization)

47 Lean 100 Page 47 ACME Proprietary Implementation Success Factors Unyielding leadership Strategic vision, based on Lean Enterprise as part of company strategy Observation of outside successes and failures Ability to question everything Deep commitment to excellence

48 Lean 100 Page 48 ACME Proprietary From the CEO “I ask everyone to get involved in this initiative. Lean principles will give us a powerful framework to continuously evaluate and improve our design, production, procurement and other essential processes, providing us with a new tool to meet our commitments to the company’s customers. I am looking to each of you for ideas and support of the lean enterprise initiative. Together, we will continue to boost SpaceCo to heights that are beyond our competitors’ reach.” Thurston Howell III - sample -

49 Lean 100 Page 49 ACME Proprietary Reference Information Lean Website: Training Projects Examples Articles Newsletters Presentations Events – in summary 5S program Tools and Forms Seminars Industry Links Contacts

50 Lean 100 Page 50 ACME Proprietary Learning Objectives Know Introduce Lean Enterprise concepts Provide reference materials Show Demonstrate waste inherent in a process Do Develop an idea for improvement Review Re-cap key concepts

51 Lean 100 Page 51 ACME Proprietary Learning Objectives Know Introduce Lean Enterprise concepts Provide reference materials Show Demonstrate waste inherent in a process Do Develop an idea for improvement Review Re-cap key concepts Thank you ! Any questions ??

52 ACME Proprietary Lean 100: An Introduction to Lean Thinking Month 200X


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