Presentation on theme: "Welcome to ACME Corporation!"— Presentation transcript:
1Welcome to ACME Corporation! Welcome new employees !
2Lean 100: An Introduction to Lean Thinking Month 200X NOTES are provided to assist instructor… utilize as needed.This presentation is for awareness and information only – no test required.This lecture and small group excercise should take 45 to 60 minutes to cover with a small group. (8 to 16 people)Designed for new employees to supplement future training: ie - The one-day Lean 101 (Mfg.) and/or Lean 301 (Administrative) workshop.
4Learning Objectives Know Share Company Mission/ Charter Introduce Lean Enterprise conceptsProvide reference materialsShowThrough a small-group exercise,demonstrate waste inherent in a processShare sampling of ‘improvement tools’DoDevelop and adopt one(or more) idea(s) for improvementReviewRe-cap key concepts of Lean ThinkingReview learning points through the Know, Show , Do and Review methodology.Know - lecture. Show – pull game. Do – “What did you learn?” Have them share an improvement idea at end.Review - Have class share main points of the lesson. Summarize on flipchart or board.
5Adding Value in everything we do … StrategyThe 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 $100 billion global space industry.Second, we develop and manufacture a complete set of advanced lightweight satellites and comparable launch vehicles that are responsive to our customers' needs.Third, we emphasize creative yet thorough design and engineering along with meticulous purchasing, production, and testing, to assure the highest safety and reliability for our space products.And finally, we rely on a strong company culture and disciplined management systems that stress cost consciousness and efficient use of resources.- sample -Part of our DNA: We are “Chartered” to “Improve” SpaceCo !! (ie #4 - CO$T consciousness and efficient use of resources …)Adding Value in everything we do …
6- sample - SpaceCo is committed to providing High-Reliability CredoSpaceCo is committed to providing High-ReliabilitySpace and Defense Systems to Our Customers.We will achieve this through:Maintaining a highly skilled and motivated team.Establishing and reviewing Product Quality Metrics.Continuously Evaluating and Improving our Processes.Endeavoring to meet and exceed Our Customer’s requirements and expectations.- sample -In summary … tie to Corporate Goals and Objectives. (especially #3)
7DeploymentMission:“Implement Lean Enterprise across all SpaceCo divisions using -comprehensive trainingstandardized rewards and recognitionteamwork… 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 -The way we deploy - Cite Mission and Vision.
8History of Lean Thinking Pre-industrial- Circa 1890Mass Production– circa 1930Lean Manufacturing- circa 1980Craftsmen perform all aspects of taskSelf-taught or apprenticeship trainingEmployees contribute minimally to total productTraining for limited skillsManagement makes decisionsClusters of employees working in teamsExtensive, continuing trainingCustomized, non-standard productsVariation in qualityStandardized, focused on volume not qualityFocus on internal/ external customerIndependence, discretionVariety of skillsResponsibilityLimited skills and knowledgeRepetitive, mind-numbing workLittle discretion, simplified tasksSome discretion, group effectiveness, empowerment, team accountability, work cellsPeopleProductWork EnvironmentQuickly review evolution history. Lean Thinking is really evolutionary – NOT revolutionary.It is a MANAGEMENT OPERATING SYSTEM perfected most recently (last 50 years) at Toyota Motors– translated and brought to America in early 1980’s by Shigeo Shingo and others.Also – Total Quality Management and Quality Circles hit big in the late 80’s and 90’s which promoted a lot of this thinking as well…
9Reduced 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,ASK what year participants think Ford said this…. ??? (reveal next slide)
10Reduced 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, 19261926 … AGAIN, Lean is not new. Waste and total cycle time reduction are what we need to be doing …
11Lean Is Market DrivenEvery 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.Today’s MARKETPLACE demands agility ! (You better be running !! Aka: Leading !!)
12Defining LeanLean 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 NetworkThrough efforts of Continuous Improvement –Pursuing ‘LEAN’ or ‘Lean Thinking’ is most simply stated as: IDENTIFYING AND REDUCING WASTE !
13Defining 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,andperform them more and more effectively.”— Lean ThinkingWomack and JonesPursuing ‘LEAN’ or ‘Lean Thinking’ is simply IDENTIFYING AND REDUCING WASTE – being more effecient, being more effective!Womack and Jones released the Landmark “Lean Thinking” book in 1996 and a renewed interest in Management prevailed …We’ve mentioned WASTE a couple times …. What is it ?? (transition to next slide …)
14What 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)FROM Toyota … #1 car company in world! (BTW: Started importing their cars in America in 1959.)
15Let’s have some fun ! (First trial) Demonstration Have participants sign thier name on a batch of (5 stuck together) large yellow post-it notes and slide to next operator or operator seated in a different row. Stop and Collect after 6 signatures. (REPEAT 2 more times) Total of 3 batches – 15 sheets with 6 siganatures on each sheet.Put an inspection step in if you wish, depending on time… rerject some and do-over if you wish…Note total cycle time and the wastes that have occured in the process.ADD in-process inspection steps or re-arrange flow (layout) as needed depending on time and interest of audience…
16Definition of Value-Added Work Content 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.)Debrief the game with what happened … broken process: lots of waiting, movement, inspection, re-work etc etc
17Lean = Eliminating Waste and Wasteful Practices Value-AddedNon-Value-AddedOverproductionWaitingTransportationNon-value-added processingExcess inventoryDefectsExcess motionUnderutilized peopleMost of the time spent on the game was non-value added. So let’s try again …Typically 95% of all lead time is non-value-added.
18Let’s have some MORE fun ! (second Trial) DemonstrationLet’s have some MORE fun !(second Trial)Have participants sign thier name on a single yellow post-it note and transport to next operator. Collect after 10. Note time and ID wastes again.
19Non-Value-Added Processing Eight WastesOverproductionmotionInventoryWaitingTransportationdefectsUnderutilized PeopleFacilitate discussion of the 8 wastes from the exercise …Non-Value-Added Processing
20Inspection and repair of material in inventory Causes of defects: Waste of DefectsInspection and repair of material in inventoryCauses of defects:Complex product designPoor Root Cause AnalysisPoor Supplier ManagementCustomer needs not understoodWeak process controlConstant overtimeMisuse of priority systemDeficient planned maintenanceInadequate education, training, or work instructionsDoes MASS INSPECTION really add value ??(Dr. Deming said - Don’t rely on Mass Inspection to assure Quality but continually improve the process …)
21Causes of processing waste: Effort that adds no value to the product or service from the customers’ viewpointCauses of processing waste:Product changes without process changesJust-in-case logicTrue customer requirements not clearly definedOver-processing to accommodate downtimeLack of communicationRedundant approvalsExtra copies or excessive paperworkCover each”waste” quickly…
22Idle time created when waiting for: Waiting WasteIdle time created when waiting for:MaterialPaperworkApprovalsCauses of waiting waste:Unbalanced workloadUnplanned maintenanceDisorganized work areasLong process setup timesMisuses of automationUpstream quality problemsUnleveled schedulingLot’s of waiting …
23Waste of Human Resources The waste of not using people’s mental, creative, and physical abilitiesCauses of people waste:Old guard thinking, politics, the business culturePoor hiring practicesPoor personnel assignmentsFire fighting strategyLow or no investment in trainingLow pay, high turnover strategyLot’s of people wondering and waiting. NOT involved in improvement activities…
24Causes of motion waste: Unfavorable facility or cell layout Any movement of people or machines that does not add value to the product or serviceCauses of motion waste:Unfavorable facility or cell layoutPoor workplace organization and housekeepingInconsistent work methodsTrying to look busy while waitingMOVE the stations around the room so people have to get up and walk around. TELL the ones not working they better look busy…DEMAND MORE and start the PUSH cycle – put another person up front to start more product in the queue so WIP starts to pile up…
25Waste of Transportation Transporting parts and materials around the plantCauses of transportation waste:Poor plant layoutPoor understanding of the process flow for productionLarge batch sizes, long lead times, and large storage areasDIDN’t have a lot of transport. (Run out of stock and PUT new un-opened packages in back of room or outside in hallway to simulate this as required…) STOP here if you want and do a 3rd round … putting a small “U-shape” together to demonstrate improvement and the upcoming slides…
26Any supply in excess of a one-piece flow through your process Waste of InventoryAny supply in excess of a one-piece flow through your processCauses of excess inventory:Need for buffer against inefficiencies and unexpected problemsProduct complexityUnreliable shipments by suppliersMinimum buy requirementsFunctional vs. Team goalsReward systemUnleveled schedulingUnbalanced workloadMisunderstood communicationsPoor market forecastSET a pull signal to do one at a time in the 3rd round (if time permits a 3rd round)
27Waste of Overproduction Making more than is required by the next processMaking earlier than is required by the next processMaking faster than is required by the next processCauses of overproduction:Over-engineeringRedundant inspectionsUnbalanced workloadUn-level schedulingLong process setupJust-in-case logicMisuse of automationOverproduction may be the WORST WASTE (it incorporates the others: overprocessing, inspection, movement, transport, inventory etc)
28Push versus Pull Systems Push SystemResources are provided to the consumer based on forecasts or schedulesPull System is a flexible and simple method of controlling or balancing the flow of resourcesEliminating waste of handling, storage, expediting, obsolescence, repair, rework, facilities, equipment, excess inventory (work-in-process and finished goods)Pull SystemA method of controlling the flow of resources by replacing only what has been consumedPull System consists of:Production based on actualconsumptionSmall lotsLow inventoriesManagement by sightBetter communicationLinking to the simulation game … PULL on demand is always better…CITE examples: (Pantry items at home; Bags of Pellets stacked in front of Water Softner in Garage; COSTCO warehouse 2-bin KANBAN (Pull)
29? ? Ask what? What is the operation doing? Ask why? How to uncover WasteAsk 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 causeEverything that is not work is wasteOnce you know the function, you can identify as waste anything that does not execute that functionDraft an improvement plan…Ask how??Here is an approach… don’t be afraid to ask questions! Especially the 5-why technique!?
30Map and Analyze Process steps … How to uncover Waste?Here is an approach… don’t be afraid to ask questions! Especially the 5-why technique!?Map and Analyze Process steps …
31Id Waste & Organize the workplace … How to uncover Waste?Id Waste & Organize the workplace …5S is a ‘good start’Here is an approach… don’t be afraid to ask questions! Especially the 5-why technique!?
32? ? Standardize & Mistake-proof Processes. Monitor Results! How to uncover Waste?Through Teamwork … attack root causesAccountabilityStandardize & Mistake-proof Processes. Monitor Results!Here is an approach… don’t be afraid to ask questions! Especially the 5-why technique!?
33Why 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 EinsteinChange !!! For the better…
34Funny 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‘Sky’s The Limit’ – when it comes to improvement. (If everyone just did 1 improvement initiative…)
35Building Blocks of The Lean Enterprise “Continuous Improvement”Lean Mission (3 bottom blocks) is foundation of the house … (Management Model)TrainingRewards / RecognitionTeamwork
36Building Blocks of The Lean Enterprise “Continuous Improvement”ValueStreamMappingAll improvement starts with understanding of the process … (usually a map of the sequence/ steps – for the ID of Waste)TrainingRewards / RecognitionTeamwork
37Building Blocks of The Lean Enterprise “Continuous Improvement”Pull / KanbanCellular / FlowTPMPOUSQuality at SourceQuick ChangeoverStandardized WorkBatch ReductionLayoutValueStreamMappingTeams5S SystemVisual ManagementLean tools - applied as needed, to drive ‘Continuous Improvement’ / Problem Solving / Corrective and Preventive ActionsTrainingRewards / RecognitionTeamwork
38Lean Enterprise Practices Continuous Improvement (CI) philosophyTeamsWith rotation of highly specified job skillsUsing a disciplined problem–solving processCross-trained and multi-skilled employeesWho can work many operations within a cell and operations in different cells (or capacities)Process quality, not inspectionUse of participatory decision-makingFacilitator-led, team-based problem-solving, suggestion systems, etc.We utilize these practices. Cover each briefly.
39Barriers to Improvement If we all know we need to improve, the question becomes: why don’t we?ASK the participants… facilitate answers. Transition into discussion on CULTURE… (next slide)
40Leader makes all decisions – Team Members follow with little input Traditional CultureLeader makes all decisions – Team Members follow with little inputProcess Improvement ideas are devised by the Leader and carried out by the Team MembersCulture 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 themLittle vested interest from Team MembersCover briefly.
41More experienced Team members and more enlightened Leadership Evolving CultureMore experienced Team members and more enlightened LeadershipTeams surface their ideas for Leaders final approvalBetter Continuous Improvement ideas are devised because of the increased participation and slight shift in ownershipEmployee Satisfaction increasesLeadership begins to shift from Tactical to Strategic decision makingWhere we are heading.
42Leader sets boundaries based on Company fiscal plans and objectives Evolved CultureLeader sets boundaries based on Company fiscal plans and objectivesSelf Directed work teams manage all Tactical issuesLeader removes barriers and monitors performance while teams develop solutions and meet objectivesBuilding Consensus over following ordersIdeal.
43Management May Need to Change New Leadership StyleManagers must:Earn trustPromote and reward participationProvide skill training and systems that allow successful completion of workThe Manager’s Evolving RoleImposing Solutions to Managing PerformanceTactical to StrategicFrom controlling information to sharing ideasFrom criticizing the mistakes to rewarding the “almost rights”From bureaucratic decision-making to worker–driven continuous improvementChange in Thinking (and acting) may be required …
44Associates May Need to Change Employees must be willing to:Learn new skillsParticipate in teams and surface ideasMake decisions, take risks, and make mistakesShare the responsibility for implementing changesSupport ‘continuous improvement’Associates also… symbiotic relationship
45Let’s Build Quality at Every Step Design for manufacture/ assemblyComplex designs cause defectsEnd-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 legacyCommunicationTimely feedback to associates and vendors when quality problems are detectedMistake ProofingLow-cost, highly reliable innovations that will detect abnormal situations before they occur, or if they occur, will stop the OperationBehaviors and methods to consider…
46Implementation Strategy Awareness of and active promotion of Continuous Improvement – a ‘Safer, Better, Faster’ mindsetTraining (OTJ and OYO)Development (Self-directed)Focused Improvement Events (Kaizen)Team participation (Projects)Culture Change (Continuous Improvement Mentality)Long Term PlanningBenchmarkingPromotion of Success (Betterment of Organization)You may asked to be involved … ie: Train and Develop (On The Job and On Your Own)
47Implementation Success Factors Unyielding leadershipStrategic vision, based on Lean Enterprise as part of company strategyObservation of outside successes and failuresAbility to question everythingDeep commitment to excellenceThe way we act … the way we manage … the way we lead …
48- sample - Lean principles will give us a powerful From the CEO“I ask everyone to get involved in this initiative.Lean principles will give us a powerfulframework to continuously evaluate andimprove our design, production, procurementand other essential processes, providing us with a newtool to meet our commitments to the company’s customers.I am looking to each of you for ideas and support of thelean enterprise initiative.Together, we will continue to boost SpaceCo to heights thatare beyond our competitors’ reach.”Thurston Howell III- sample -In summary … tie to Corporate Goals and Objectives.
49Reference Information Lean Website:TrainingProjectsExamplesArticlesNewslettersPresentationsEvents – in summary5S programTools and FormsSeminarsIndustry LinksContactsWhat’s on the webpage … it’s a great resource.
50Learning Objectives Know Introduce Lean Enterprise concepts Provide reference materialsShowDemonstrate waste inherent in a processDoDevelop an idea for improvementReviewRe-cap key conceptsASK: Each participant “what did you learn?” What one idea might you try, implement or consider ??Facilitate and summarize on flipchart or board.
51Thank you ! Any questions ?? Learning ObjectivesKnowIntroduce Lean Enterprise conceptsProvide reference materialsShowDemonstrate waste inherent in a processDoDevelop an idea for improvementReviewRe-cap key conceptsThank you !Any questions ??Thank all for thier attendance and particpation …ASK: Any questions ?
52Lean 100: An Introduction to Lean Thinking Month 200X NOTES are provided to assist instructor… utilize as needed.This presentation is for awareness and information only – no test required.