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Welcome to ACME Corporation!

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Presentation on theme: "Welcome to ACME Corporation!"— Presentation transcript:

1 Welcome to ACME Corporation!
Welcome new employees !

2 Lean 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.

3 Jay Watson Lean Advocate
Introduce yourself …

4 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 Review 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.

5 Adding Value in everything we do …
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 $100 billion global space industry. Second, we develop and manufacture a complete set of advanced lightweight satellites and comparable launch vehicles that are responsive to our customers' needs. Third, we emphasize creative yet thorough design and engineering along with meticulous purchasing, production, and testing, to assure the highest safety and reliability for our space products. And finally, we rely on a strong company culture and disciplined management systems that stress cost consciousness and efficient use of resources. - sample - Part of our DNA: We are “Chartered” to “Improve” SpaceCo !! (ie #4 - CO$T consciousness and efficient use of resources …) Adding Value in everything we do …

6 - sample - SpaceCo is committed to providing High-Reliability
Credo SpaceCo is committed to providing High-Reliability Space 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)

7 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 - The way we deploy - Cite Mission and Vision.

8 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 Quickly 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…

9 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, ASK what year participants think Ford said this…. ??? (reveal next slide)

10 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 1926 … AGAIN, Lean is not new. Waste and total cycle time reduction are what we need to be doing …

11 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. Today’s MARKETPLACE demands agility ! (You better be running !! Aka: Leading !!)

12 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 Through efforts of Continuous Improvement – Pursuing ‘LEAN’ or ‘Lean Thinking’ is most simply stated as: IDENTIFYING AND REDUCING WASTE !

13 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 Pursuing ‘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 …)

14 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) FROM Toyota … #1 car company in world! (BTW: Started importing their cars in America in 1959.)

15 Let’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…

16 Definition 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

17 Lean = Eliminating Waste and Wasteful Practices
Value-Added Non-Value-Added Overproduction Waiting Transportation Non-value-added processing Excess inventory Defects Excess motion Underutilized people Most 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.

18 Let’s have some MORE fun ! (second Trial)
Demonstration Let’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.

19 Non-Value-Added Processing
Eight Wastes Overproduction motion Inventory Waiting Transportation defects Underutilized People Facilitate discussion of the 8 wastes from the exercise … Non-Value-Added Processing

20 Inspection and repair of material in inventory Causes of defects:
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 Does MASS INSPECTION really add value ?? (Dr. Deming said - Don’t rely on Mass Inspection to assure Quality but continually improve the process …)

21 Causes of 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 Cover each”waste” quickly…

22 Idle time created when waiting for:
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 Lot’s of waiting …

23 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 Lot’s of people wondering and waiting. NOT involved in improvement activities…

24 Causes of motion waste: Unfavorable facility or cell layout
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 MOVE 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…

25 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 DIDN’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…

26 Any supply in excess of a one-piece flow through your process
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 SET a pull signal to do one at a time in the 3rd round (if time permits a 3rd round)

27 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 Overproduction may be the WORST WASTE (it incorporates the others: overprocessing, inspection, movement, transport, inventory etc)

28 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 Linking 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 Waste 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? ? Here is an approach… don’t be afraid to ask questions! Especially the 5-why technique! ?

30 Map 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 …

31 Id 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 causes Accountability Standardize & Mistake-proof Processes. Monitor Results! Here is an approach… don’t be afraid to ask questions! Especially the 5-why technique! ?

33 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 Change !!! For the better…

34 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 ‘Sky’s The Limit’ – when it comes to improvement. (If everyone just did 1 improvement initiative…)

35 Building Blocks of The Lean Enterprise
“Continuous Improvement” Lean Mission (3 bottom blocks) is foundation of the house … (Management Model) Training Rewards / Recognition Teamwork

36 Building Blocks of The Lean Enterprise
“Continuous Improvement” Value Stream Mapping All improvement starts with understanding of the process … (usually a map of the sequence/ steps – for the ID of Waste) Training Rewards / Recognition Teamwork

37 Building Blocks of The Lean Enterprise
“Continuous Improvement” Pull / Kanban Cellular / Flow TPM POUS Quality at Source Quick Changeover Standardized Work Batch Reduction Layout Value Stream Mapping Teams 5S System Visual Management Lean tools - applied as needed, to drive ‘Continuous Improvement’ / Problem Solving / Corrective and Preventive Actions Training Rewards / Recognition Teamwork

38 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. We utilize these practices. Cover each briefly.

39 Barriers 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)

40 Leader makes all decisions – Team Members follow with little input
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 Cover briefly.

41 More experienced Team members and more enlightened Leadership
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 Where we are heading.

42 Leader sets boundaries based on Company fiscal plans and objectives
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 Ideal.

43 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 Change in Thinking (and acting) may be required …

44 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’ Associates also… symbiotic relationship

45 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 Behaviors and methods to consider…

46 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) You may asked to be involved … ie: Train and Develop (On The Job and On Your Own)

47 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 The 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 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 - In summary … tie to Corporate Goals and Objectives.

49 Reference Information
Lean Website: Training Projects Examples Articles Newsletters Presentations Events – in summary 5S program Tools and Forms Seminars Industry Links Contacts What’s on the webpage … it’s a great resource.

50 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 ASK: Each participant “what did you learn?” What one idea might you try, implement or consider ?? Facilitate and summarize on flipchart or board.

51 Thank you ! Any questions ??
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 ?? Thank all for thier attendance and particpation … ASK: Any questions ?

52 Lean 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.


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