2 THE SEVEN CLASSES OF WASTE What is “Waste”?Value for Whom?Find and Eliminate Waste….S
3 #1 Excess ProductionExamples:____________________________________________________Excess production hides problems and creates:Extra inventory, handling, equipment usage, space, quality problem issues, etc.Production should be determined by the customer, not “false targets” such as utilization.
4 #2 Waiting or Watching Causes: Effects Wastes Time Waiting for MaterialsWaiting for Equipment/ToolsWaiting for Repairs/ServiceWaiting for Large Lots to FinishWatching Unreliable ProcessesWatching for ProblemsEffects Wastes Time
5 #3 Conveyance or Transportation Causes:Poor Layouts (Long distances between process operations)Large Production LotsBatch ProcessesPoor SchedulingEffects Wastes Time
6 #4 Processing Itself Causes: Effects Wastes Time Poorly Maintained EquipmentImproper/ Poor ToolingExcess Checking/StoppingImproper MaterialsErrors in Processing/SetupPoor/no Work InstructionsEffects Wastes Time
7 #5 InventoryCauses:Long SetupsLarge Batch Sizes“Mindset” of ComfortReliance on “MRP” to reorderBatch ProcessingEffects Wastes Time & Hides Real Problems (quality, scheduling, suppliers, maintenance, attendance, etc.)
8 #6 Motion Causes: Effects Wastes Time Poor Layouts & Facilities Poor Work Place Designs“Lost: Items/SearchingLack of Needed Tooling & EquipmentEffects Wastes Time
9 #7 Producing Failures Causes: Effects Wastes Time Poor Training Poor Manufacturing InstructionsPoor Equipment & ToolingPoor Materials________________________________Effects Wastes Time
10 How to Identify and Target Waste with Kaizen You can’t eliminatewhat you don’t see.
11 PROCESS MODEL Add Value? Supplier Work Station Process Customer Internal or ExternalWork Station ProcessCustomerInternal or External
12 Define and understand your customer’s needs and expectations. CUSTOMER FOCUSEACH PROCESS HAS ITS OWN SUPPLIER AND CUSTOMER.Ultimate or external customer.Immediate or internal customer.Define and understand your customer’s needs and expectations.
13 WHO ARE YOUR CUSTOMERS? WHO ARE YOUR ULTIMATE CUSTOMERS? WHO ARE YOUR IMMEDIATECUSTOMERS:WHAT ARE YOURCUSTOMER’S NEEDS, REQUIREMENTS, AND EXPECTATIONS:
14 MANAGING UPSTREAMEffective process focus requires you to go back to the previous process to seek out a problem’s causes.Improvement requires that we always be aware of what comes from the previous process. (Supplier).
15 Defining Process FlowDefine and understand your processes to identify and eliminate waste.Use Visual process mapping/charting techniques:Process Charts for ProductsFlow Charts for SystemsFunctional Deployment Map for Actions and FunctionsValue Stream Maps (VSM) for Materials and Information
16 PROCESS CHARTS Aid in: Visualizing and understanding the process Identifying specific operations for improvementUnderstanding effects of changes in one step on othersPurposes:Reduce operator/material movementOrder activities properlyBalance work of operator and machineeliminate unnecessary idle time and all forms of waste
17 I. Process Chart *details all work done by or on one product Symbol Action ClassificationPredominant ResultOperationProduces or AccomplishesTransportationMovesInspectionVerifiesDelayInterferesStorageKeeps
18 Casting Sheet Steel 4 Tons 3 Tons 0-1 Blank 0-4 Turn 9 Tons 3.3 Tons Offal TonTurnings 0.3 TonsForm0-5Drill0-29 TonsTurnings 0.3 Tons3 Tons0-3TrimStorageScrap Tons7 TonsBolts10.5 Tons0-6Assemble/ InspectOperation Process Chart showing intensity of material flow and the out-flow of chips and scrap (Muther, R. Systematic Layout Planning. CBI Publishing Company, Inc., Boston, 1973).
19 A.Horizontal line indicates material feeding into processVertical line indicates steps of process arranged in chronological sequence
20 B. Horizontal lines give way when lines cross Process sequence lineMaterial in-feed line
21 C. Typical process diagram Symbol and NumberTime/PlaceDescription40.0240Paint2Test
22 D. Assembly work charting starts in upper right corner of sheet with largest component or one having most operations.Purchased item or material
23 E. Alternate routings shown by split and rejoined lines 13245
25 G. Material flow with yield, loss or scrap 98 tons/day4141Scrap
26 H. Complex charts aided by arrows, curved corners 2761
27 PROBLEM SOLVING ATTITUDE Analyze the chart using the “Questioning Attitude”: Does the activity add value for the customer?IF NOT …Determine how can activities be:Eliminated?Simplified?Changed in sequence?Combined?Standardized?
28 FLOWCHARTSA flowchart is a pictorial representation of a logical decision process, which identifies all of the major steps and decision points involved in progressing from the beginning to the end.BeginStep 1NoDecision 1YesEndStep 2Etc.Flowcharts provide a global overview of a “procedure” clearly identifying how each step is related to the others in order to accomplish a particular objective.
29 FLOWCHART USETo better understand and agree on what the process is in terms of actions and decision pointsTo determine how the process currently worksTo determine how the process should workTo identify “waste” and opportunities for improvement
30 FLOWCHART USE Continued To check if the procedure “as written” flows and terminates in a logical sequence, ensuring that all steps are considered and not “left dangling.”To document procedures (Common with ISO/QS 9000)To facilitate new employee training
31 FLOWCHART SYMBOLSDepict time consuming steps in a process. Examples: Inspect a product, machine a part, record the results, etc.Activity or TaskNo False Reject FailDepict questions/checks and show alternative outcomes depending on the result. Examples: Is the part nonconforming? If yes, do one thing. If no, do another.DecisionYes True Accept Pass
32 FLOWCHART SYMBOLS Continued Depict documents used to perform tasks or records generated by the activity. Examples:Work Instructions (in)Scrap Record (out).Document or Record (used or generated)Depict the beginning or end of a procedure/process.Terminator (Begin or End)
33 FLOWCHART SYMBOLS Continued Depict the flow of logic, decisions, or steps of documentation.FlowDepict transfer of flow to a location or show the identity of a location.A
36 Value Stream Mapping (VSM) A graphic tool for describing how material and information actually move through your process, and identifying the nonvalue-added activities within the process.Used to streamline and drive changes in the process by removing queuing, movement, delay and other activities for which a customer is unwilling to pay.Typically created in two phases: current state and future state.Example from Quality Digest March 2006, pg 41-46
37 Step one: MeetingSet up a meeting between the management team and value-stream process ownersState the purpose of the VSM event – to map the value stream as it currently exists and works and gain an accurate understanding of how the process operates.Used to quiet any defensiveness on the part of process owners because the map will probe deeply into their work life and make visible most of the waste.
38 Step two: Training Train the VSM team for two purposes. First, the team needs to understand the concepts of lead time, waste, value-added activities and nonvalue-added activities as they pertain to lean methodologies.Second, the team must work from a standard set of definitions and icons when drawing the VSM.The team then assigns two to four of its members to construct the current-state map.
39 Step three: Data Collection Pick a particular product of the value stream and follow it through the process if the lead time is less than the number of days scheduled for the event. (usually 2 days)Data on each activity within the value stream should be collected and can include:Cycle timesChangeover or setup timesNumber of people involvedQuantity of units processedQuantity of changeovers for a given time periodDowntimeBatch sizesNumber of items waiting
40 Step four: Map Construction The current-state map can be constructed after each activity has been observed and the data have been collected.Label each activity in a process box, with the data for that activity listed below it.Use arrows to show the flow of the productUse triangles between the process boxes to depict inventory levels of work in process before each activity.Draw icons and arrows opposite the product flow to show communication flows - they signal upstream activities that will react to downstream information.
41 Step four: Map Construction cont. The current-state map can be constructed….Draw a saw tooth diagram underneath the value stream to depict process and lead time. Write the time to process a single unit of product on the diagram’s upper teeth, and the queue time on the lower teeth.Calculate the process time for the value stream by adding the times along the upper teeth of the saw tooth diagram.Calculate the total lead time by adding all the times on the upper teeth and the lower gaps together.Calculate the percent of the total lead time represented by the process time.
42 Figure 1: Driver’s License Issuance: Current-State Map Legend *C/T = Cycle time ** = InventoryICustomers begin arriving at 7 a.m. for 9 a.m. openingCustomers sit down and wait for their number to be called between each stationCustomerI100 to 200 people**I3 to 8 peopleI5 to 10 peopleReceive queuing ticket*C/T=2 min 500 cust/day 2 examinersProcessed for written examC/T=6 min 80 cust/day 1 examinerTake test on com-puter testing stationC/T=15 to 60 min 12 computers Computerized testing in English only2 min6 min20 min90 min20 min0 min15 min
43 Figure 1: Driver’s License Issuance: Current-State Map Total processing time = 34.5 minutes Total lead time = minutesLegend *C/T = Cycle time ** = InventoryICustomers shuffle back and forth through service center: no flowIIII5 to 10 people100 to 200 people60 to 120 people3 to 5 peopleScore test and receive passing documentationComplete appli-cation, sign and enter in systemCapture photo and receive moneyPick up driver’s licenseCT=2 min for comp C/T=5 min for foreign language 1 examiner 40% failure rateC/T=2.5 min 450 cust/day 4 examiners 5% rejected for lack of documentationC/T=1.5 min 450 cust/day 2 cameras 4 printers 2 examinersC/T=.5 min 425 cust/day 2 examiners 5% scrap rate2 min2.5 min1.5 min.5 min15 min75 min45 min10 min
44 Step five: ReviewOnce the current-state map is completed, call a meeting of the managers and process owners to review the map and validate the information.The data on the map are open for questions, and a consensus must be reached before going any further.An 80-percent accuracy level is acceptable if the team struggles to come to a consensus on any data because prior to completing the map, no level of accuracy had existed at all.
45 Step six: Set Targets for Improvement Use brainstorming to target improvement initiatives to eliminate and reduce bottlenecks and lead times.Use an Affinity Diagram, Interrelationship Digraph, or Tree Diagram as appropriate.Avoid developing improvement initiatives that only focus on the process steps where products are being transformed. Often more than 95 percent of the time in a value stream is spent performing activities that don’t add value. [Remember, the goal of VSM is to target these nonvalue-added activities for waste elimination or reduction.]Use an effect/cost approach to prioritize the improvement plan.
46 Step six: Set Targets …. Cont. The team brainstormed the following improvement initiatives:A creative staffing plan that allows for extended hours to eliminate a deluge at the beginning of the day.Written instructions in multiple languages detailing exactly the forms and documentation needed for each service a customer may need.Redesign the application forms for easier understanding and create a desk with template examples where customers can fill out their own paperwork.Create online practice exams in multiple languages.To decrease the failure rate, charge for a second test attempt.A computer-based testing in multiple languages, eliminating paper and pencil testing and manual scoring.One more camera at the photo station to keep up with demand.A a first-in, first-out line for photos and license receipt to prevent customers from sitting and returning to the process.Redesign the layout of service centers to eliminate confusion and create a continuous flow of customers.Create a one-stop help desk for customers who have unusual circumstances so they don’t disrupt the flow.
47 Step seven: Draw the Future-state Map Data in the future-state map are derived from targets that will evolve as a result of implementing the improvements.In most cases, the future-state map will look similar to the current-state map, with the addition of improved metrics.If activities in the current-state map can be eliminated or combined, this should be reflected in fewer process boxes in the future-state map.
48 Figure 2: Driver’s License Issuance: Future-State Map CustomerRedesign layout for service centers to create flow from beginning to endExtend service hours Open at 7:30 a.m.III10 to 20 people3 to 5 people1 to 2 peopleReceive queuing ticket and handout specific to service requestedFill out appropriate applications and formsProcessed for written examTake test on computer testing stationC/T=2 min 500 cust/day 2 examinersC/T=6 min Self-serviceC/T=3 min 80 cust/day 1 examinerC/T=15 to 60 min 12 computers Tests offered on computer in many languages2 min6 min3 min20 min10 min8 min0 min6 min0 min
49 Figure 2: Driver’s License Issuance: Future-State Map Total processing time = 36.5 minutes Total lead time = 84.5 minutesDevelop online practice tests and charge for tests after one failureCreate a help desk for any customers with special needs or problems that cannot be resolved in a timely fashionIIII3 to 5 people10 to 15 people10 to 15 people3 to 5 peopleScore test and receive passing documentationSign application and enter in systemCapture photo and receive moneyTake test on computer testing stationC/T=2 min 1 examiner <5% failure rateC/T=1.5 min 450 cust/day 4 examiners <1% rejected for lack of documentationC/T=1.5 min 425 cust/day 3 cameras 4 printers 3 examinersC/T=.5 min 425 cust/day 2 examiners 5% scrap rateFifo Line2 min1.5 min1.5 min.5 min8 min6 min8 min10 min
50 Step seven: Draw the Future… cont. This future state accomplished two goals of VSM and lean techniques.First, the improvement initiative strategy was created with a six-month time frame and the improvements that were called for were doable in this time period.Second, the team focused on improvements that were of little or no cost. This is a key learning point within lean systems: Avoid significant investment in capital until the process can’t be improved without it.Clearly there are many more options to further improve the future-state map.
51 Step eight: Formalize the Improvement Establish a detailed implementation plan that includes:The area where the improvement will occur,A description of the improvement,A quantifiable and measurable goal,The people responsible for the improvementTargeted start and completion dates.The sequence of tasksSet a target that’s achievable and measurable.
52 VSM CommentsVSM is a powerful tool that can help an organization learn how a process looks from its customers’ perspective.The tool can be used to depict the activities within any business process, from shop floor activities to administrative tasks in the front office.VSM will help people from different departments bridge gaps throughout the organization and begin to appreciate the importance of their roles in the overall process.Employees will begin to think differently about the tasks they perform and develop their own improvement ideas. This is when continuous improvement becomes a way of life.